SKOPJE WWTP

Promoter – Financial Intermediary

JP VODOVOD I KANALIZACIJA-SKOPJE

Location

• North Macedonia

Description

The project consists of the construction of a waste water treatment plant (WWTP) in Skopje, serving approximately 500 000 inhabitants.

Objectives

As Skopje's wastewater is currently discharged in the Vardar river without any treatment, the project is expected to have major environmental and public health benefits. It will therefore have a substantial impact on the living conditions of the inhabitants of Skopje. In addition, the project will contribute positively to the gradual compliance of North Macedonia with all relevant environmental and water EU law and standards. As the Vardar river flows to the Hellenic Republic downstream (where its name is Axios) and reaches the sea west of Thessaloniki, the project is also expected to result in environmental benefits of a Member State.

Sector(s)

• Water, sewerage - Water supply; sewerage, waste management and remediation activities

Under ELM Guarantee

This operation is covered by the ELM Guarantee.

Proposed EIB finance (Approximate amount)

EUR 148 million

Total cost (Approximate amount)

EUR 196 million

Environmental aspects

The project will generally benefit the environment and public health, either by providing better drinking water to the population, improving the efficiency of the treatment and distribution facilities, or by collecting and cleaning wastewater before discharging into receiving waters. As an EU candidate member state, the project will support North Macedonia's process for gradual compliance with EU standards and regulations on water, sanitation and the environment, and will provide the base for a possible accession agreement in the environmental chapter. Compliance with national Environmental Impact Assessment (EIA) legislation that has been drafted by transposing EU EIA Directive 85/337/EEC, amended by directives 97/11/EC and 2003/35/EC will be verified during the appraisal. With regards to regulations concerning the protection of habitats, respective EU Directives (92/43/EEC and 79/409/EEC) are considered to be transposed, subject to verification during the appraisal. North Macedonia is part of the international Emerald network, and procedures for compliance herewith will also be verified. The project will also help to meet national river quality objective (RQO) improvement targets set by the national Environmental Authority in line with the EU Water Framework Directive (2000/60/EC). A social assessment will also be undertaken as part of the appraisal.

Procurement

The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Signed - 20/12/2019