FYR Macedonia: Railway Corridor VIII - Phase I

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 42921

Status Repaying

Location

Business Sector

Transport

Notice Type

Public

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 42921

Status Repaying

Location

Business Sector

Transport

Notice Type

Public

Environmental Category

Approval Date

24 Jul 2012

Disclosure date

30 Mar 2012

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The EBRD is considering providing a €46.4 million financing for the rehabilitation of Section 1 of the FYR Macedonia Railway Corridor VIII - Eastern Section.

The Eastern Section of Corridor VIII is 88.2 kilometres long and is divided into three sections:
Section 1: Kumanovo to Beljakovce
Section 2: Beljakovce to Kriva Palanka
Section 3: Kriva Palanka to Deve Bair, which is located on the Macedonian/Bulgarian border.

The EBRD financing would be used to finance the upgrades on the Section 1 - Kumanovo to Beljakovce, which has a length of 30.8 kilometres.

Once the Corridor is operational, it will significantly enhance FYR Macedonia’s transport system, by providing a shorter route to Istanbul, as compared to the current route via Greece. It will also greatly facilitate regional integration among the countries involved, facilitating transportation flows and stimulating the regional economy.

Transition Impact

Building on the initiatives of previous Bank projects in the rail sector, the project will facilitate further reform in the flowing areas:

Track Access Charges: revised track access methodology in line with the EU rail sector guidelines, which will enable third party access to the network in a transparent manner;
Sector Reform: the commercialisation of non-core assets across the company. A list of non-core assets to be divested through sale will be prepared looking at opportunities across rail infrastructure operations.
Energy Efficiency: specific areas will be identified for improving energy efficiency aspects in the Company along with definition of an Energy Efficiency Priority Investment Programme to be implemented as part of the Project.

The Client

The Beneficiary of this project is the Public Company for Railway Infrastructure (PERI), which is responsible for the provision and maintenance of the railway infrastructure.

EBRD Finance

€48.2 million senior loan to the government of FYR Macedonia, represented by the Ministry of Finance (‘MOF’).

Project Cost

The total project cost is €60.7 million.

Environmental Impact

Categorisation and justification

The Project has been categorised A, as Section 1 is an integral part of the whole of Corridor VIII which will be used for long distance railway traffic. An ESIA is required in accordance with Appendix 1 of the 2008 EBRD Environmental and Social Policy. In addition, the Ministry of Environment and Physical Planning (MoEPP) issued an EIA Scoping Decision (17 June 2011) requiring an EIA for the whole project, including the rehabilitation works in Section 1.

Information reviewed

Independent consultants prepared an Environmental and Social Impact Assessment (ESIA), Stakeholder Engagement Plan, Resettlement Compensation Framework and other documents to meet applicable Macedonian laws and regulations as well as Lender requirements. These documents were reviewed by the MoEPP, Lenders and Lender consultants prior to their disclosure for public comment.

Environmental and Social Issues

The potential environmental and social impacts of the rehabilitation and operation of Section 1 of the Railway Corridor VIII Eastern Section have been assessed within the ESIA for the whole corridor.

The main impacts identified in the ESIA of particular relevance to Section 1 of the railway are:

Localised effects on noise and vibration levels;
Construction transport - haulage routes and traffic management;
Worker and community health and safety risks – during construction and operation; and
Impacts on vulnerable local communities.

In Sections 2 and 3 additional impacts include:

Land acquisition and possible resettlement;
Soil management and sediment control due site clearance and the removal of top soil;
Air quality impacts during construction; and
Biodiversity.

Furthermore, once the line is electrified there will be associated safety risks.

Land has already been acquired for the first 65 kilometres of the Corridor, so no further land acquisition will be required for Section 1. However, there may be some temporary land take required for construction compounds and space for storage of plant, materials and the location site offices.

Within Section 1 the Roma Peri Cico community includes up to 20 families living 7- 8 m from the railway track, who will be directly affected by noise, vibration as well as by loss of access as a result of the Project. These vulnerable residents will lose an area where children currently play and also sheds where they store plastic bottles for recycling to earn an income. Vulnerable residents could also be affected in Section 3 where it is estimated that a minimum of 25 families will lose their homes and land due to land acquisition required for the Project. A Resettlement Action Plan for each Section will be prepared to meet PR 5.

Although there are no significant biodiversity concerns relating to Section 1, the ESIA has identified that there are two Emerald sites in the North- Eastern region of Macedonia; Pchinja-German (MK0000029) and Osogovo (MK0000026); both are intersected by the Section 3 of the Project, near the Bulgarian Border. Both sites were designated as areas important for birds, other species and/or habitats. These sites are still not officially approved by the Council of Europe. In Bulgaria, there are the two Natura 2000 sites (Osogovo, BG0002079 (Birds Directive Site, Special Protection Area (SPA) and Osogovska Planina BG0001011 and Special Area for Conservation (SAC) which are contiguous with the Macedonian Osogovo Emerald site. The tunnel into Bulgaria is approximately 1.7 kilometres from the Natura 2000 sites. The operation of the railway may pose a risk to animals and from fragmentation of sites as the railway bisects sensitive habitats. Further studies will be prepared to ensure the integrity and conservation objectives of the sites.
A Stakeholder Engagement Plan has been prepared for the project. In line with ESPOO requirements Bulgarian Authorities have been formally notified about the ESIA, due to the trans-boundary nature of the Project.

Environmental or social opportunities

The Project is expected to reduce travel time and provide positive, long-term and significant benefits to local, national and regional economies in addition to improving access locally and across the region. Business opportunities may also potentially increase for local contractors and subcontractors during the construction works. Economic benefits should provide improvements to the quality of life of some communities along the route. The project will allow the completion of the route, and complete a substantial amount of preparatory works that were undertaken between 1994 and 2004 in Section 1 and 2.

Environmental and Social Management & Monitoring Plan (ESMMP)

An ESMMP has been prepared and publicly disclosed. The Plan includes the requirements for:

The development of a Construction Environmental and Social Management System;
Implementation of a Stakeholder Engagement Plan;
A Resettlement Action Plan for each Section of the railway track;
Community Health and Safety Educational Programmes;
Noise abatement measures to be installed at defined settlements;
The Peri Cico community to be provided with assistance which will include measures to strengthen structurally unstable houses near the track and installation of noise and safety barrier; The community is also to be provided with a replacement play area for children and alternative access where necessary.
A Biodiversity Management Plan will be prepared and publicly disclosed prior to any works in Section 2 and 3. It will be completed in consultation with the National Nature Conservation Authority and other relevant stakeholders and include the necessary assessments needed to fully comply with Article 6 of the Habitats Directive; and
Safety plans for construction and electrical safety.

PERI will be responsible for ensuring that the appointed contractors implement the ESMMP.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

The following technical co-operation funds are envisaged as part of this project:

1. Supervision services and project implementation unit assistance to assist the Client in project implementation in compliance with the EBRD Procurement Rules as well as to conduct supervision of the construction site in accordance with FIDIC terms,

2. Institutional Strengthening to assist the Client in review and adoption of the improved track access methodology

PSD last updated

19 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project ID 42921

Status Repaying

Location

North Macedonia

Business Sector

Transport

Environmental Category

Disclosure date

08 Mar 2012

Purpose of the Environmental and Social Impact Assessments

Up to EUR 44 million sovereign loan to the government of the Former Yugoslav Republic of Macedonia (FYR Macedonia) for the financing for the rehabilitation of 30.8 km ( Section 1) of Corridor VIII in the east of FYR Macedonia. This section starts at the northern end of Kumanovo station up to Beljakovce station. The Ministry of Transport and Communication is responsible for infrastructure management and will be the Client and implementation agency for this project, while the loan is likely to be direct to the government of the FYR Macedonia represented by the Ministry of Finance.

This investment will be for the first phase of the total investment programme of EUR 477 million, which is the funding required for completion of the entire eastern part of the Corridor VIII. The eastern part of Corridor VIII of 88.2 km in length starts from Kumanovo via Beljakovce and Kriva Palanka to Dave Bair, which is located on the Macedonian/Bulgarian border. This eastern part of the Corridor has been divided into three sections:

Section 1: Kumanovo to Beljakovce (30.8 km);
Section 2: Beljakovce to Kriva Palanka (34 km) ;
Section 3: Kriva Palanka to Bulgarian Border (23.4 km)

The corridor and alignment for section 1 was established in the 1950's and was previously operational until the mid 1990's. Works will include track replacement, stations and replacement of 17 level crossings with 7 over/underpasses. The existing railway bridge over the Pcinja River will be replaced by a new construction located upstream of the existing one.

There is a project summary document available for this project.

ESIA Summary

The ‘Disclosure Package’ for the Project includes the following documents:

Non Technical Summary
Macedonian (5MB - PDF)
English (5MB - PDF)
Environmental and Social Impact Assessment
Macedonian (51MB - PDF)
English (48MB - PDF)
Environment and Social Management and Monitoring Plan
Macedonian (4MB - PDF)
English (4MB - PDF)
Resettlement Compensation Framework
Macedonian (4MB - PDF)
English (6MB - PDF)
Stakeholder Engagement Plan
Macedonian (5MB - PDF)
English (4MB - PDF)

Full ESIA availability

Full ESIA documentation is available locally at:
EBRD Headquarters in London, environmentandsocial@ebrd.com

And

Ministry of Transport and Communication
Address: “Crvena Skopska Opstina” 4; 1000 Skopje, Republic of Macedonia ; Telephone: + 389 2 3145 497, + 389 2 3123 292
Fax: + 389 (0)2 3126 228
e-mail: contact@mtc.gov.mk

Biljana Zdraveva - Head of Railway Department
e-mail: zdraveva@mtc.gov.mk

Ministry of Environment and Physical Planning
Address: Bul. "Goce Delcev", MRTV building (10,11,12 floor) 1000 Skopje, Republic of Macedonia
Telephone: +389 3 251 400
Fax: +389 3 220-165
e-mail: info@moepp.gov.mk

Zoran Boschev – Head of the department for ESIA
Telephone: +389 76-445-894
e-mail: z.boshev@moepp.gov.mk

Macedonian Railways - Infrastructure - Skopje
Address: “Zeleznicka 50b”; 1000 Skopje
Telephone: +389 2 3116-773
Fax: +389 2 2121-079
e-mail: mz65dir@t-home.mk

Rade Sekulovski – Head of Sector
Telephone: +389 75 282 893

Hard copies of the ESIA package are also available at :

Regional Center for Development, Address: “Ilindenska” nn; 1300 Kumanovo; Postal number 182;
http://www.northeastregion.gov.mk
Postal number182
Telephone/Fax: +389 31 424 878
e-mail: info@northeastregion.gov.mk
Muncipality of Kumanovo, Address: “11th October” bb, 1300 Kumanovo; http://www.kumanovo.ca/
Telephones: +389 31 475 800
Fax: + 389 31 438 633
e-mail: informacii@kumanovo.gov.mk
Muncipality of Kratovo, Address: “Square Marschal Tito”, nn - 1360 Kratovo; http://www.opstinakratovo.gov.mk/
Telephone: +389 31 481 202,
Fax: +389 31 481 134
e-mail: opstina_kratovo@yahoo.com
e-mail: opstina_kratovo@opstinakratovo.gov.mk
Muncipality of Rankovce, Address: Postal number 1316;
Telephone: +389 31 380 444
Fax: +389 31 380 444
e-mail: rankovce@rankovce.gov.mk
Muncipality of Kriva Palanka, Address: JoakimOsogovski”175;
http://www.krivapalanka.gov.mk/
Telephone/Fax: +389 31 375 035
e-mail: opkp@krivapalanka.gov.mk, gradonacalnik@krivapalanka.gov.mk, arsenco.aleksovski@live.com
Muncipality of Staro Nagorichane, Address: 1303 Staro Nagoricane, http://www.opstinastaronagoricane.gov.mk
Telephone: +389 31 495 333

And

EBRD Skopje Resident Office, Macedonia
Soravia Centre Skopje
VII floor
Bulevar Vojvoda Vasil Adzilarski bb
1000 Skopje
Macedonia

Tel: +389 2 3297 800
Fax: +389 2 3231 238
Contact: Biljana Milosheska, Principal Banker,
Tel: +389 2 3297 805

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FYR Macedonia: Railway Corridor VIII - Phase I

Project timeline

Project Description

Transition Impact

The Client

EBRD Finance

Project Cost

Environmental Impact

Technical Cooperation

PSD last updated

Business opportunities

General enquiries

Public Information Policy (PIP)

Purpose of the Environmental and Social Impact Assessments

ESIA Summary

Full ESIA availability