Project summary document

Project description
and objectives:

Investments in the construction, rehabilitation and extension of water and wastewater infrastructure in five Macedonian water utilities serving the municipalities of Kumanovo, Ohrid/Struga, Stip, Strumica, and Veles.

The project aims to finance an investment programme for water and wastewater infrastructure in order to:

• Improve the quality and reliability of water supply;
• Reduce health hazards and pollution of surface water from discharging untreated wastewater;
• Introduce cost recovery in the provision of municipal services;
• Strengthen the financial and operational performance of the water utilities involved; and
• Foster private sector involvement in contracting and construction management.

Transition impact:

The potential transition impact of the programme is good. The programme will contribute to the transition in the following ways:

Commercialisation. The programme promotes decentralisation and commercialisation of the provision of municipal water and sewerage services.

Demonstration Effect. The anticipated operating efficiency improvements in the water utilities as a result of their commercialisation may encourage water utilities in other municipalities or municipal utilities in other sectors to adopt similar operating and financing approaches.

Competitive Procurement. The operation will introduce procurement procedures, which promote a competitive market environment and contribute to transparency.

The client:

FYR Macedonia.

Five Macedonian water utilities.

EBRD finance:

The external financing consists of a sovereign loan from the EBRD of €20.8 million, to be on-lent to five Macedonian water utilities. In addition, international grants and concessional loans of €31.8 million and local contributions of €5.1 million will be provided. Investment grants/concessional loans are envisaged from Germany (confirmed), Greece (confirmed), Portugal (confirmed) and Switzerland (expressed interest).

Total project cost:

Total project costs total €57.7 million, excluding taxes and duties.

Environmental impact:

Technical
cooperation:

Legal and Tax Analysis: €42,000 from EU-Phare Bangkok Facility – completed.

Pre-Feasibility Study: €179,000 from Taiwanese funds for South East Europe Action Plan Fund – completed.

Feasibility Study: NLG 2.2 million from Dutch Government – completed.

Programme Implementation TC: €3.64 million from Denmark (confirmed), Germany (confirmed), Japan (expressed interest) and Switzerland (expressed interest).

Public Awareness Campaign: €600,000; funding interest expressed from the United States.

Lender’s Implementation Supervisor: €600,000.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Biljana Milosheska, Operation Leader: milosheb@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com