| Project Detail |
Location:
North Macedonia
Project number:
52828
Business sector:
Municipal and environmental infrastructure
Notice type:
State
Environmental category:
B
Approval date:
09 Jun 2022
Status:
Concept Reviewed
PSD disclosed:
06 Apr 2022
Project Description
The provision of a sovereign loan of up to EUR 55 million (the "Loan") to the Republic of North Macedonia for establishing and developing a regional waste management systems in five administrative regions in the country (the "Project"). The Ministry of Environment and Physical Planning ("MoEPP") will be the Implementing Entity and responsible for the Project implementation. The Loan will be provided in two tranches:
Tranche 1 in the amount of up to EUR 47.5 million, to be committed at loan signing, will finance investments in the Polog and Pelagonija & Southwest Regions ("PSW") region. It will involve (i) construction/reconstruction of the regional integrated waste management systems ("RWMS") and transfer stations, and (ii) waste storage systems and bulky waste collection and closure of the Novaci dumpsite.
Tranche 2 in the amount of up to EUR 7.5 million (uncommitted) will finance (i) the solid waste landfill and transfer stations in the Vardar and the Southeast ("VSE") region. Tranche 2 will be committed at the sole discretion of the EBRD upon completion of a Feasibility Study for the respective region under the proposed tranche.
The project is expected to benefit from a Swiss State Secretariat for Economic Affairs ("SECO") investment and technical cooperation grant.
Project Objectives
The Project supports essential modernization of Solid Waste ("SW") infrastructure in each of the five Project regions covering (i) reconstruction/construction of selected regional, sanitary landfills and (ii) procurement of bins and containers for recyclables and residual waste, transport vehicles and equipment.
The Project is the very first nation-wide undertaking in the SWM sector in North Macedonia and an important step towards a sustainable solution for solid waste management services. The Project introduces for the first time solid waste services compliant with the respective EU standards in the sector, covering a population of more than one million residents across five administrative regions in the country. As such, the Project is of a unique national, regional and environmental importance for North Macedonia, and was identified as a national priority in the context of EU accession.
Transition Impact
ETI score: 73
Primary Quality: Well-Governed
The project will expand the current competencies of the Energy and Water Services Regulatory Commission into the solid waste sector by providing technical assistance for setting up a new department within the commission responsible for SW tariffs. Moreover, the technical assistance will help the new department to adopt a new cost-based methodology for SW tariffs including preparation of associated rulebooks, training staff etc.
The project will, through technical assistance, introduce a new sector wide regulator for solid waste, within the Energy and Water Services Regulatory Commission. The department will be in charge for setting up new cost-based methodology for SW tariffs including preparation of associated rulebooks.
Secondary Quality: Inclusive
Under the Project, MoEPP will, for the first time in the country, integrate inclusive procurement requirements in the solid waste sector, opening up skills and employment opportunities for currently underserved groups. Inclusive requirements will be implemented in at least two of the three regional tenders, encouraging contractors to provide on-the-job training to the local population, including women and Roma individuals. The Roma population is traditionally involved in informal waste picking activities in North Macedonia and face significant barriers to economic inclusion. To date, MoEPP has not adopted a comprehensive approach to addressing the livelihood needs of Roma people participating in the solid waste value chain. With support from the WBIF, the Project will support MoEPP in opening up skills and employment opportunities for this group in the construction as well as operation and maintenance of new solid waste infrastructure. Additionally, the Project will introduce an initiative to develop the entrepreneurial ecosystem for minority-led businesses along the solid waste value chain. These improved policy practices are expected to create systemic change beyond North Macedonia, by creating a blueprint for future projects under the WBIF applying inclusive procurement principles. |
