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Municipality of Karposh Project Appraisal Document for Reconstruction of Local Streets in Urban Communities Karposh 1

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Municipality of Karposh Project Appraisal Document for Reconstruction of Local Streets in Urban Communities Karposh 1 MUNICIPALITY OF KARPOSH PROJECT APPRAISAL DOCUMENT FOR RECONSTRUCTION OF LOCAL STREETS IN URBAN COMMUNITIES KARPOSH 1 AND KARPOSH 2 Municipal Services Project Improvement Municipal Skopje February 2021 Table of Content Summary ......................................................................................................................................... 8 1 Project description ................................................................................................................ 10 1.1 General Information on the municipality of Karposh .................................................... 11 1.2 Demographic and economic profile ............................................................................... 12 1.2.1 Demographic table .................................................................................................. 12 1.2.2 Gender and age ....................................................................................................... 13 1.2.3 Minority repartition ................................................................................................ 15 1.2.4 Economy and employment ..................................................................................... 15 1.2.5 Relevant extracts of the municipality’s documents about the project .................. 16 1.3 General description of the Project ................................................................................. 17 1.3.1 General description ................................................................................................. 17 1.3.2 Area concerned by the project ............................................................................... 17 1.3.3 Current situation ..................................................................................................... 20 1.3.4 Project goals and project beneficiaries................................................................... 22 1.3.5 Knowledge and experience of the municipality of Karposh ................................... 23 1.3.6 Conclusions ............................................................................................................. 24 2 Social assessment .................................................................................................................. 25 2.1 Social study ..................................................................................................................... 25 2.1.1 Social diversity and gender ..................................................................................... 26 2.1.2 Institutions, rules, and behavior ............................................................................. 27 2.1.3 Stakeholders ........................................................................................................... 27 2.1.4 Citizens engagement ............................................................................................... 28 2.1.5 Social risks ............................................................................................................... 29 2.2 Other fields of consideration ......................................................................................... 29 2.3 Resettlement issues ....................................................................................................... 29 2.4 Conclusion on the project potential success and recommendation ............................. 29 3 Environmental Impact ........................................................................................................... 31 3.1 LOCATION OF PROJECT SITE .................................................................................................... 32 3.3 MAIN ENVIRONMENTAL IMPACT AND SENSITIVE RECEPTORS ......................................................... 34 3.4 ENVIRONMENTAL MITIGATION PLAN FOR THE PROJECT: RECONSTRUCTION OF FOUR STREETS IN MUNICIPALITY OF KARPOSH ............................................................................................................... 39 2 3.5 ENVIRONMENTAL MONITORING PLAN FOR THE PROJECT: RECONSTRUCTION OF FOUR STREETS IN MUNICIPALITY OF KARPOSH ............................................................................................................... 42 4 Technical solution .................................................................................................................. 46 4.1 Description ..................................................................................................................... 47 4.2 Analysis and evaluation .................................................................................................. 55 4.3 Conclusions and recommendations ............................................................................... 55 4.4 Alternative solutions ...................................................................................................... 55 5 Financial analysis ................................................................................................................... 56 5.1 Project cost ..................................................................................................................... 57 5.2 Credit capacity ................................................................................................................ 58 5.3 Loan repayment ............................................................................................................. 59 5.4 Review of the municipal account ................................................................................... 60 5.5 Analysis of the financial feasibility of the project .......................................................... 63 5.5.1 Time horizon ............................................................................................................... 63 5.5.2 Limitations of the analysis .......................................................................................... 63 5.5.3 Initial investment ........................................................................................................ 63 5.5.4 Inflation ....................................................................................................................... 63 5.5.5 Discount rate .............................................................................................................. 64 5.5.6 Projection of operating cash flows ............................................................................. 64 5.6 Costs ............................................................................................................................... 64 5.1.1 Sensitivity analysis .................................................................................................. 67 5.7 Conclusions..................................................................................................................... 67 6 Cost-benefit analysis .................................................................................................................. 68 6.1 General information ............................................................................................................ 69 6.1.1 Framework of the analysis ........................................................................................... 69 6.1.2 Limitations and constraints of the study ...................................................................... 69 6.1.3 Scope ............................................................................................................................ 69 6.2 Identification of the relevant costs and benefits ................................................................ 69 6.2.1 Project costs ................................................................................................................. 69 6.2.2 Quantifiable benefits .................................................................................................... 69 6.2.3 Unquantifiable benefits ................................................................................................ 70 6.3 Valuation of the costs and benefits .................................................................................... 71 6.3.1 Economic valuation of the costs ................................................................................... 71 3 6.4 Other assumptions .............................................................................................................. 72 6.5 Valuation of the costs and benefits .................................................................................... 72 6.6 Results from the cost-benefit analysis ................................................................................ 72 6.7 sensitivity analysis ............................................................................................................... 73 6.8 Conclusion ........................................................................................................................... 74 7 Risk analysis ........................................................................................................................... 76 7.1 Technical risks to the municipality ................................................................................. 77 7.2 Financial risks to the municipality .................................................................................. 77 8 Recommendations ................................................................................................................. 79 9 Annex ....................................................................................................................................
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