Skopje City Mall


FYR Macedonia

Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

26 Jul 2011



PSD disclosed:

24 Jun 2011

Translated version of this PSD: Macedonian

Project Description

The EBRD is considering providing a subordinated loan of EUR 18.9 million for the development and operation of an institutional-quality shopping mall, located in Skopje, FYR Macedonia, with a total gross leasable area (“GLA”) of approximately 37,000 sqm (the “Project”).

Transition Impact

Once approved by the EBRD’s Board of Directors, the Project is expected to have a strong transition impact potential in the following key areas:

(i) Competition: The local retail market is currently underdeveloped. The Project will address the lack of quality local retail facilities, increase the competitive pressure on existing retail units and provide a wider choice for retailers. It will also enable the market entry of global brands/retailers which have not yet been present in the country due to the lack of suitable facilities.

(ii) Setting standards of business conduct, mainly on energy efficiency, through the demonstration effect to other retail centres in Skopje and in the country. The Project will become a benchmark for future large developments in the country. The development will achieve a very high energy efficiency standard and will promote energy efficiency technologies such as high performance heat recovery, LED lighting, variable speed drives on fans and pumps and building management system (BMS).

The Client

The operating company of the Project will be Balfin MK d.o.o , a special purpose company incorporated in FYR Macedonia for the development and operation of the Project.

The shareholders of Balfin MK d.o.o. are Balfin sh.p.k., Euromedia and MG Property.

EBRD Finance

EUR 18.9 million subordinated loan.

Project Cost

EUR 70 million.

Environmental Impact

1. Screening Categories

The Project was categorized “B” by European Bank for Reconstruction and Development (EBRD), which means that an environmental and social analysis was required by the Bank, in accordance with the Environmental and Social Policy and Performance Requirements. The Project has some environmental and social impacts which can be readily addressed through mitigation measures and an action plan.

2. Information Received

The client filled in the Bank’s Environmental and Social Due Diligence Questionnaire and provided additional information which the Bank has reviewed.

The Bank has also carried out technical due diligence and energy efficiency performance assessment.

3. Environmental and Social Issues

Due diligence indicated as follows. The project management team has adequate environmental and social risk management capacities to implement the Project. The Project has been developed by going through urban planning permitting and local Environmental Impact Assessment processes. There are no significant environmental and social issues to prevent the Project’s further development.

4. Environmental or Social Opportunities

The energy efficiency performance assessment confirmed that the Project includes the use of energy efficiency technologies, and practices, which are beyond the standard practices and energy performance requirements in FYR Macedonia. Improved levels of thermal insulation, high efficiency lighting, installation of variable speed drives on the pumps and fans and implementation of Building Management System (BMS) will ensure energy savings.

5. Summary of Environmental and Social Action Plan (ESAP)

An ESAP addresses:

1. Occupational Health and Safety management;
2. Construction legal protection;
3. Environmental management during the construction and operation stages;
4. A grievance mechanism for the construction workers and employees of the shopping mall;
5. A grievance mechanism for the affected neighbours; and
6. Life and fire safety issues.

Environmental and Social Requirement

The client is required to carry out the project in compliance with EBRD's Performance Requirements.

Environmental and Social Monitoring

The Bank will monitor the Project's environmental and social performance by reviewing an annual environmental and social report and visit the site where necessary.

Technical Cooperation

The Project qualifies as built environment project with substantial sustainable energy investments and has benefited from a Quick Assessment of Energy Performance under a framework funded by Norway. A consultant engaged by E2C2 Team has assessed the performance of the project, assisted in identification of the overall Sustainable Energy Investment and proposed further energy saving opportunities suitable for the development.

Company Contact

Peter J. Warden MRICS
Chief Executive Officer
St. Dame Gruev 28-1/1
Skopje, FYR Macedonia

Tel: +389 2 3253 990


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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