Project Description
Provision of a sovereign loan of up to EUR 5 million to the Republic of North Macedonia (the "Borrower") to finance the Rail Joint Border Crossing ("RJBC") station in Tabanovce (the "Project"), on the border between North Macedonia and Serbia, on rail Corridor X, which is part of the TEN-T Networks extension to the Western Balkans. The loan funds will finance the rehabilitation and upgrade of the existing Tabanovce rail station buildings as well as the construction of additional new facilities including an access road of approximately 900m. The Project will be co-financed by the EU through an investment grant from the Western Balkans Investment Framework ("WBIF").
Project Objectives
The Project will contribute to improvement of regional connectivity and integration on rail Corridor X. The key objective of the Project is to reduce the delays at the borders and shorten the border crossing procedures by facilitating passing the border in one place ('one stop'). The sharing of the new facilities between the two countries' staff will contribute to the optimization of the procedures of border and custom controls leading to more effective, facilitated and quicker operations between the different stakeholders involved in the station. The Project will also contribute to energy efficiency improvements through higher energy efficiency requirements that will be incorporated in the detailed design of the buildings and the installation of photovoltaics ("PV") panels on the roofs of the buildings. The Project is part of the Connectivity Agenda of the European Commission and represents a priority measure for increasing the effectiveness of the border crossing procedures by establishing joint railway border crossing stations in the Western Balkans countries.
Transition Impact
ETI score: 68
- Primary Quality: Integrated - The Project will facilitate border crossing procedures at the Tabanovce station between North Macedonia and Serbia and improve regional connectivity. The new joint border station will enable better and faster rail transportation services for passengers and freight across the border.
- Secondary Quality: Green - The Project will include a requirement that the financed buildings should be certified with at least one Energy Performance Certificates ("EPC") class above minimum requirements by national regulations; while for the refurbishing of existing buildings, the renovation works will enable primary energy demand reduction of at least 30%. Further energy efficiency will come from the installation of photovoltaics ("PV") panels on the buildings' roofs.
Client Information
NORTH MACEDONIA SOVEREIGN
The Borrower is the Republic of North Macedonia represented by the Ministry of Finance ("MoF"). The Ministry of Transport and Communication ("MoTC") will be responsible for the Project's implementation as the Project's implementing agency.
EBRD Finance Summary
EUR 5,000,000.00
EBRD Sovereign loan in an amount of up to EUR 5 million.
Total Project Cost
EUR 7,400,000.00
- EBRD Loan: EUR 5 million
- WBIF Investment Grant: EUR 2.4 million
Additionality
The Bank's additionality is derived from: (i) providing financing with a long tenor, not available in the market from commercial sources on reasonable terms and conditions; (ii) carbon transition risk mitigation; (iii) best international procurement standards and (iv) gender awareness trainings for stakeholders and joint border authorities.
Environmental and Social Summary
The Project is categorised B under EBRD's Environmental and Social Policy (2019) as environmental and social ("E&S") impacts associated with the upgrading of the existing rail station buildings, construction of new buildings and the development of an access road of 900 m have been assessed as site-specific manageable through good E&S management systems, to be adopted by the Project contractor, and overseen by the implementing agency.
An initial E&S assessment was undertaken in 2018 which has been reviewed in conjunction with further internal due diligence and a visit to the site in November 2022 to consider the contextual risks, which indicated that one of the most sensitive social receptors, the adjacent Tabanovce Transit Camp, has reduced its activities and removed a substantial number of buildings that previously served higher volumes of temporary migrants. The lower number of migrants means a previous risk related to land availability is not considered relevant and the only impacts on the Transit Camp are limited to moving temporary buildings (containers) to other parts of government-owned land. The findings from the initial E&S Assessment, including measures to mitigate adverse environmental and social impacts, remain relevant. These have been updated to comply with EBRD's current ESP 2019 Performance Requirements ("PRs"). An Environmental and Social Action Plan ("ESAP") has been prepared to ensure the Project is structured in accordance with the PRs and will be used to monitor Project compliance. The ESAP has already been agreed with the Client.
Positive impacts associated with the Project are related to improved efficiency and speed at the border, creating a "one stop shop" on the rail network with neighbouring countries and it is a target of railway sector improvement plans.
Key impacts are related to environmental aspects typically associated with construction, including traffic, air quality and dust, noise and vibration, water and waste management. Impacts on flora and fauna impacts are expected to be negligible given the limited use of land outside the existing footprint of the station infrastructure. The buildings will be designed to recognised energy efficiency standards and specific requirements will be included in the detailed design. Contractor and labour management, community and occupational health and safety and cultural heritage impacts are key social impacts. These will be managed through the development of a contractor ESMP, HR policies, including a Code of Conduct, and Project health and safety plans, which are included in the ESAP. While no cultural heritage impacts have been identified during the assessment, a chance find procedure will be developed as part of the contractor ESMP in case of any unexpected discoveries of cultural heritage items or sites during construction. The implementing agency will be responsible for assessing potential impacts related to gender and Gender Based Violence and Harassment as part of the ESAP. There are no identified impacts related to physical or economic displacement. This is to be verified in the finalisation of the detailed design. Should any land be required, the Land Acquisition Framework will be used to develop a public Livelihood Restoration Plan ("LRP"). The LRP, if required, will address all identified impacts related to economic displacement in line with EBRD PR5. Measures to address the PVs supply chain risk have been incorporated into the ESAP and will be included in the future procurement process, which will include the module supplier, in accordance with the Management Approach for public sector projects (CS/FO/21-35).
Preliminary consultations were undertaken in the past and will be used as a basis for further disclosure efforts based on an updated version of the Stakeholder Engagement Plan, which will include a non-technical summary of the Project.
The Project will be monitored through a combination of site visits, if appropriate, and review of annual E&S monitoring reports submitted by the Client.
Technical Cooperation and Grant Financing
Pre-signing:
TA 1: Feasibility Study funded by WBIF.
Post-signing:
TA 2: Project Implementation Support & Works Supervision services.
Company Contact Information
Svetlanka Popovska
svetlanka.popovska@mtc.gov.mk
+389 2 3145 513
http://mtc.gov.mk/
Ul "Plostad Crvena Skopska Opstina" no. 4, 1000, Skopje, North Macedonia
Implementation summary
PSD last updated
19 Sep 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
