Corridor X

Location:

FYR Macedonia

Project number:

41981

Business sector:

Transport

Notice type:

Public

Environmental category:

A

Target board date:

13 Apr 2011

Status:

Repaying

PSD disclosed:

17 Dec 2010

Translated version of this PSD: Macedonian

Project Description

The EBRD is considering providing co-financing, together with the European Union’s Instrument for Pre-accession (‘IPA’) and the European Investment Bank (‘EIB’) for a new section of Corridor X from Smokvica to Demir Kapija which has a total length of 28 km. This forms part of the key section of this north-south link running from Austria, through South East Europe, to Greece. In addition, the project will also finance toll stations and the necessary electronic tolling facilities along Corridor X.

The investment is required to meet the growing traffic demand and to facilitate achievement of full motorway standard, thus, ultimately, facilitating regional integration and connectivity with the wider Europe.

Transition Impact

Building on initiatives through previous Bank projects, the project will facilitate further reform in the roads sector through:

  • The introduction of electronic tolling.
  • The introduction of performance based maintenance contracts; and
  • The definition of key milestones required for the concessioning out of road Corridor VIII to a private operator.

The Client

Agency for State Roads (‘ASR’), which is an independent state owned agency responsible for the operation and maintenance of the road network in the FYR Macedonia.

EBRD Finance

€107 million senior loan to the government of FYR Macedonia, represented by the Ministry of Finance (‘MOF’).

Project Cost

The total project cost is €316.9 million, with EBRD providing loan funding of up to €107 million.

Environmental Impact

Project screening and categorisation

The project is categorised “A” as it could result in potentially significant adverse environmental and/or social impacts which cannot readily be identified or assessed:

(a) Construction of Project will involve environmentally sensitive activities such as tunnelling in the Demir Kapija canyon
(b) The available EIA lists a number of sensitive issues (see below)

Main environmental and social issues

Biodiversity
Sensitive habitats have been identified in the Macedonian Environmental Impact Assessment (EIA) and include mainly:

  • The Demir Kapija canyon, with several species of raptors, vultures and bats listed as “vulnerable” or “endangered”
  • The plane and willow gallery forests predominantly located along the right bank tributaries intersected by the trace, and the maquis and pseudo-maquis habitats on the plateaus.

Any surface deforested as a result of the project will be compensated by plantations of an equivalent surface in adjacent areas that have already been identified in detail.

Social / Land Acquisition
The Project does not affect any residential structure. It affects some agricultural and pasture land in the Vardar valley towards the villages of Miravci and Smokvica (mainly open field with some orchards and vineyards).

The proposed route is generally well away from settlements; however, noise protection will be needed locally, as well as re-establishment of local roads and agricultural tracks in the Vardar valley between Mitrevci and Smokvica.

Construction Impacts
As for any project of this nature, construction impacts will include noise, dust, vibration, severance of local traffic and waste / spoil management. The balance of material is positive due to some significant tunnelling and a disposal area has been identified and permitted for excess spoil. Obligations in respect of construction phase environmental management will be shared between the borrower and the contractor and an environmental monitoring plan and management system will need to be put in place.

Due Diligence Process and Outcomes
The Macedonian Government had since 2007 developed an Environmental Impact Assessment (EIA) in compliance with the local legislation, which is modelled on the EU EIA Directive. It was updated twice to reflect the route selection process. Two successive rounds of public consultation took place in the Project area in 2009 and 2010, including well attended public meetings in local towns and villages. This public consultation process is appropriate, has been witnessed and accepted by the EU, and verified by the EBRD as meeting the Environmental and Social Policy.


Following further negotiations (recently completed) with the EU on project mitigations and monitoring, an Environmental Management and Monitoring Plan was agreed with the EU, which is acceptable to the EBRD. Meanwhile, the Project was duly permitted by the local Competent Authority.
Some limited gaps in the existing documentation have been identified. These are addressed through the preparation of the following documents, which have been publicly disclosed:

  • A Non Technical Summary
  • A Stakeholder Engagement Plan
  • A Land Acquisition and Compensation Plan
  • An Environmental and Social Action Plan (ESAP) based on the detailed mitigation plan currently being discussed and in the process of finalization between the EU and the Macedonian authorities

Technical Cooperation

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

  • Assistance with tendering and contract award for toll stations and equipment. €0.5 million

 

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)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.