PROJECT APPRAISAL DOCUMENT

MUNICIPALITY OF KAVADARCI

RECONSTRUCTION OF THE WATER SUPPLY SYSTEM ON PART OF THE STREET “ILINDENSKA”, STREET “MARSHAL TITO” WITH ASPHALTING

FEBRUARY 2021

I PROJECT DESCRIPTION

1.1 GENERALINFORMATION The of Kavadarci is located in the southern part of and belongs to the middle Povardarie region and penetrates into the Tikves Valley. It covers 1,132km2 with 55 settlements. As of the last census of 2002, the population is 38 391 which represents 1.84% of the total population in the country. Given the municipal area, the average population density is 32.85 inhabitants per km2.

Figure 1: Municipality of Kavadarci

Source: Municipality of Kavadarci According to the 2002 Census of Population and Households, the number of inhabitants in the municipality is 38 391. The population of Kavadarci is relatively young. The age structure shows that 7.09% of the total population in Kavadarci is over 65 years old, well below the Macedonian average (11%).Population distribution by gender is almost equal to 50.02% women versus 49.98% men. The road connection of the municipality of Kavadarci with other regions and is via the highway E-75 (-), which is 14 km from the city of Kavadarci, and also via the Skopje-Veles-- regional road 11 km. The nearest airports in the municipality are Skopje International Airport 90 km from Kavadarci and Thessaloniki Airport Greece 150 km. The boundaries of municipality are: Gevgelija, to the east; Rosoman and - to the north; Prilep - to the west and Republic of Greece to the south. The municipality of Kavadarci is divided into 10 urban and 31 rural communities. The urban communities are in the city of Kavadarci and are the following: Ljubas, Kula, Zadragrar, Kiro Krstev, Brakja Gjunovi, Brakja Dosevi, Strasho Pindzur, Sloga, Vatasa and Glisik. The total length of the local road network in the Municipality is 311.80 km, 119 km of which are asphalted roads, 12 km are compacted roads, while the remaining 150 km are dirt roads, and 31.80 km are non-average roads the construction of which has not started yet. The Municipality of Kavadarci has been participating in the Second MSIP since 2018. The Sub- loan agreement No. 5 between the Ministry of finance and the Municipality of Kavadarci was signed on 10.09.2018 followed with an annex to the sub-loan agreement for utilization of all sub-loan funds signed on 14.02.2020. The annex to the sub-loan agreement refers to realization of additional project for “Reconstruction of local road “Ladno Dolce- Krnjevo”. Based on this annex the Municipality signed a contract with the contractor “Gradba Promet" – Kavadarci No. 14-1089/7 on 27.05.2020 in the amount of MKD 11.674.920. Тhis project is completely realized. Following the Second MSIP procedure for implementation of the Social inclusion grant component, the Municipality of Kavadarci is eligible to receive a second grant in the amount of 3.152.228 MKD (27% from the contact value). Based on the urban audit results the Municipality decide to use this grant funds for implementation of the project for “Reconstruction of the water supply system on part of the street "Ilindenska” and part of the street “Marshal Tito” with asphalting in the Local community Sopot. The Municipality Council adopted Decision no. 08-370/3 dated 29.01.2021 establishes that realization of a project for “Reconstruction of the water supply system on part of the street "Ilindenska” and part of the street “Marshal Tito” with asphalting in the Local community Sopot. ispriority for the Municipality and it will be financed by a MSIP2 poverty social inclusion grant The amount of funds for the project is estimated at 5.075.982,09 MKD (82 536,3 EUR). The grant funds are in the amount of 3.152.228 MKD (51 225,7 EUR), the other funds in the amount of 1.923.754 MKD (31 280,50 EUR) will be co-financed from the budget of the Municipality of Kavadarci, which are confirmed by the Decision from the City Council, no. 08- 370/3 from 29.01.2021.

1.2 GENERAL DESCRIPTION OF THE PROJECT The funds for the project “Reconstruction of the water supply system on the street “Ilindenska”, street “Marshal Tito” with asphalting ” аre awarded as a grant in the amount of 27% from the contract with the contractor in the project “Reconstruction of local road “Ladno Dolce- Krnjevo”. For the purpose of realization of the social inclusion grant, the Municipality of Kavadarci has prepared draft Urban Audit that has been verified at the 72nd session of the Coordination Committee, which provides a tool that will serve the municipality to equation the living standards of the citizens from different communities. According to the final results obtained from the SIPU table, all settlements are ranked, and scores are given from 0 to 16. In the methodological approach of the assessment, we have settlements where the score is from 0 to 1 including with the number 16. This small index is due to the low living and development of these settlements in recent decades, a large number of the population has migrated to the city, so although according to the 2002 census where the data are derived, there is still a large share of the population no inhabitants lived, or only a few residents of high age remained. For this reason, any investment in these communities is unjustified with given number of users. For this reason, the municipality of Kavadarci does not consider these settlements when developing the ranking as a priority for the allocation of these grant funds, and has started considering those settlements where they begin with a rating of 4, which means the lowest value of service i.e insufficient or low living conditions of the citizens up to 16, which means the highest value of service, i.e. sufficient or normal living conditions of the citizens in the settlements. The lowest ranked settlements with index 4 are the urban community Kiro Krstev and the rural communities Glishik and Sopot. The rural community- Sopot, according to the 2002 census, has 886 inhabitants, but the number is assumed to have decreased due to the trend of emigration from rural to urban areas. This rural community is located in the Tikvesh Valley, in the northeastern part of the Municipality of Kavadarci. The is about 6 km away from the town of Kavadarci. In this rural community, the population is predominantly engaged in agriculture and some of them work in local factories. Most of the population lives in poor conditions, unsuitable for the 21st century. The village has a partially tidy infrastructure and sewerage lines but there is a priority need for reconstruction of the existing water supply line that is made of asbestos-cement (AC) material which is regarded as dangerous to the health. In addition to this, some lines are galvanized pipes and due to their long period of exploitation they are dilapidated and leaks, plus few lines are passing through private yards and are with inadequate profiles, so they are hazardous to be used, provokes water losses, and do not meet the real needs of the population. Тhe overall water supply system in this village is with total length of 4350 meters, of which 3500 meters or 80% has already been reconstructed in 2020 as part of the project financed from the Agency for financial support for agriculture and rural development and the remaining 850 meters or 20% are to be reconstructed as part of this project. In accordance with the conclusion of the Urban Audit for the municipality of Kavadarci, the Deficiencies and priority among the other needs are to replace the existing dangerous AC water pipes with new water pipes made of material that is not dangerous for the health of the final beneficiaries. With the reconstruction of the water pipe lines as part of the project the municipality will improve the living conditions of the population of this settlement in regard to their health, quality, and quantity of the water supply, and will avoid any legal issues related to the lines that currently pass through private properties. Water loses resulting from current leakages in the system will also be avoided. Reconstruction of the water supply is the demand that the residents from this rural community addressed to the municipality at the meeting held in October, 2019 in order to improve the living conditions, and in hope to prevent the trend of emigration from rural to urban areas i.e. to stimulate the return of the residents who have already migrated. In this rural community the population is predominantly engaged in agriculture and some of them work in local factories. The exact location of the settlement and the construction site of the project are presented in the Figures below: Figure 1: Position of the rural settlement: Figure 2; Map of the water lies in village of Sopot

Source: Google Earth Source: Google Earth Village Sopot the proposed reconstruction area Water lines that will be reconstructed within the project City of Kavadarci Recently reconstructed water supply system

Due to the fact that those streets are access streets with limited widths as shown in Figure 3, during the work activities the contractor will be responsible to manage, control, and regulate the traffic and to obtain safe access and communication for the residents to their properties. This has to be covered with installation of all necessary protection barriers, traffic signalization, and creation of a safety plan in coordination with the assigned responsible persons by the Municipality and the Public Enterprise for Communal Works in Kavadarci. Due to the fact that the water line will be handed over to the CE Kavadarci, all the works will be accepted and approved by the Supervisor Engineer and the Project Engineer from the Municipality and additionally approved by the appointed technical staff from CE Kavadarci apart from the PIU.

Figure 3. Photos of the existing condition on street

This project aims to reconstruct part of the primary water supply network in the village Sopot that is still not reconstructed. The priority is to reconstruct the existing AC pipes with a water pipes made of material that is not dangerous for the health of the final beneficiaries. - Addition to this, as part of the detail design for the water line, reconstruction of the roadway in total widths of the streets “Ilindenska”, and “Marshal Tito” is included on the arms and sections where the reconstruction of the water lines will be performed, with asphalt or interlock tiles as its the current situation on site The project includes the reconstruction of the existing water system on the following streets:Ilindenska” 4 – L=201 m DN 63mm – part of the street is asphalt, part is soil - Ilindenska” 5 – L=73 m DN 63mm –concrete interlock tiles tiles - Ilindenska” 11 – L=65 m DN 63mm – concrete interlocktiles - Ilindenska” 12 – L=65 m DN 63mm – concrete interlocktiles - Ilindenska” 14 – L=88 m DN 63mm – concrete interlocktiles - Ilindenska” 15 – L=67 m DN 63mm– concrete interlocktiles - Marshal Tito” 1 L= 291 m DN 63mm - part of the street is asphalt, part is soil - Marshal Tito 1 asphalting 291 m The design includes reconstruction of the water supply pipeline with a length of 850meters including installation of the connectors for the final beneficiaries, asphalting of 291 meters of the local streets, and rearranging of the existing interlock tiles on the streets that are paved with concrete interlock tiles. The new waterlines that will be installed will be directly connected to the recently reconstructed water supply network. This will provide a whole, fully functional water supply system in village of Sopot. The new alignments of the water supply lines that are the subject of this project pass through the village of Sopot on a state lend, and with the reconstruction there are no any property legal issues. The local streets where the waterline is passing are either asphalted or paved with interlock tiles. After the reconstruction, complete rehabilitation of the asphalt to entire width of the streets will be performed and all the concrete interlock tiles will be rebuilt. These will improve the condition of the existing streets.

II TECHNICAL SOLUTION

The rural community Sopot is covered with a network of existing water supply lines. The total length of the water supply pipeline to be reconstructed is 850 meters or 20% of 4350 m which is the total length of the water supply system in this village. The remaining 3500 meters were successfully reconstructed in 2020. Each line that will be reconstructed will be connected to the already reconstructed part of the water supply network. This will provide a whole, fully functional water supply system that is health approved, and without water losses in village of Sopot. The technical solution envisages reconstruction of the water supply network by replacing the old dilapidated water supply line made of AC material with installation of new waterlines with material that complies with the actual technical regulations and norms. Apart to the reconstruction of the waterlines in this village that remained as old supply water lines, which is the main goal of the project, asphalting and repairing of the interlock tiles bringing to the current situation will be performed over the arms of the streets Ilindenska and Marshal Tito. Figure 4. The occupied area

Source: Google Earth Water lines that will be reconstructed within the project Recently reconstructed water supply system

2.1 General The whole village of Sopot is covered with a network of existing water supply lines. This will help to avoid any disruption in water supply during the reconstruction of the remaining lines. The traffic coordination and safety measure for protection with minimal access disruptions for the population during the reconstruction works will be the obligation of the contractor. All this will be regulated in the Bidding documentation as the first step after signing the contract to coordinate with the Municipality in order to get the approval on its methodology of construction and integrated protection elements. During the preparation of the design for reconstruction of the existing infrastructure in the village, for each considered area or street, to the Designer took into account the future integration in the planned urban development of the village The existing infrastructure to be reconstructed as part of this appraisal document would be easiest to define through its following features / disadvantages: • The network age is over 30 years. • The material from which the biggest part of the water supply lines are made of is asbestos cement AC pipes ranged as a highly health hazardous The priority is to replace the AC pipes with a material that is not dangerous for the health of the final beneficiaries. • The galvanized pipes are damaged and have varying degrees of functionality as evidenced by water losses in the system. • There are inadequate pipe profiles on part of the network which is an obstacle to ensure the required flow. • The arms of some of the existing lines, due to the configuration of the village are currently passing on private property. The project subject to this appraisal document occupies the arms 4,5,11,12,14,15 of the street "Ilindenska” and arms of the street “Marshal Tito and asphalting of part of the street “Marshal Tito”, in the Local community of Sopot. The design includes reconstruction of the existing water supply lines with installation of new water pipelines apart from the existing route, so the population will be permanently supplied with water with no disruption. The design includes replacement of the asphalt over the existing streets and rebuilding of the interlock tiles over the street paved with concrete interlock tiles. The technical design includes an analysis of the location, the technological process of construction and the period of exploitation. taking into account all the elements for improving the working conditions and the environment. The newly designed water supply lines that are the subject of this project pass through the village of Sopot over state lend and there are no property legal issues. The designed dimensions for the new water supply line for the sections are as follow: all lines will be performed with DN 63mm on the following streets: Ilindenska” 4 – L=201m, Ilindenska” 5 – L=73 m, Ilindenska” 11 – L=65 m, Ilindenska” 12 – L=65 m, Ilindenska” 14 – L=88 m, Ilindenska” 15 – L=67 m and Marshal Tito” 1 L= 291 m. For every line there is provided manhole braces and air valves. Ancillary elements in the system are: 8 water supply manholes and 2 fire hydrants. For the installation of water pipeline infrastructure utilities, water supply, it is necessary to carry out construction work involving excavation of a trench-with narrow excavation of 0.6 meters widths, in a depth of 1,2 meters. This project also includes asphalting of part of the street Marshal Tito 291 m. The technical solution for the reconstruction of the streets is provided with the Design technical documentation for reconstruction of the water supply system with placing a new water line apart of the existing route, with pre-preparation and laying of crushed stone tampon, compaction and asphalting with BNHS 16 = 7 cm. across the width of the street “Marshal Tito” with technical no. 01-01 / 2021.

2.2 Technical drawings examples one part of the design

The following Table 3 shows the approved technical documents that have been submitted and are the basis for the development of this evaluation document.

Тable 3: Technical documentation Technical Published Date Number 1. Detail design for reconstruction 01-01/2021 BIDAT PLUS January 2021 of the water line for the arms of DOOEL- street “Ilindenska”, and street Kavadarci “Marshal Tito”, with asphalting. v. Sopot 2. Audit P 01-602/21 VEING DOOEL January 2021 export-import- Skopje 3 Elaborate for environmental 01-01/2021 BIDAT PLUS January 2021 impact assessment DOOEL KAvadarci.“ 4 Decision for approval of EIA 11-595/3 Municipality of 01.02.2021 elaborate Kavadarci

5 Certificate of verification of the 11-9 Municipality of 02.02.2021 project on line infrastructure Kavadarci Source: Municipality of Kavadarci

III. SOCIO-ECONOMIC IMPACT

3.1 In order to meet citizens' expectations for improving the economy and creating better living conditions in the municipality, the Municipality of Kavadarci focuses on implementing major infrastructure projects that lead to the achievement of the main strategic goals defined in the Strategy for Local Economic Development of the Municipality for the period 2014-2020 (This strategy is still in force until a new strategy is adopted.) and the Local and Economic Development Program for 2021 adopted by the city council and published in Official Gazette No. 66from December 18, 2020. For the purpose of realization of the social inclusion grant, the Municipality of Kavadarci has prepared draft Urban Audit that has been verified at the 72nd session of the Coordination Committee, which provides a tool that will serve the municipality to equation the living standards of the citizens from different communities. Number Communities Outcome 1 Resava 0 2 Mrezichko 0 3 Bohula 0 4 Konopishte 0 5 Rodzden 0 6 Chemersko 0 7 Bojanchishte 0 8 Krnjevo 0 9 Dabnishte 0 10 Begnishte 1 11 Farish 1 12 Raec 1 13 Stragovo 1 14 GornaBoshava 1 15 DolnaBoshava 1 16 Shivec 1 17 KiroKrstev 4 18 Glishic 4 19 Sopot 4 20 Vozarci 5 21 Marena 5 22 Drenovo 5 23 StrashoPindzur 6 24 Zadrugar 8 25 BrakjaDosevi 8 26 Sloga 8 27 BrakjaDzunovi 11 28 Ljubash 16 29 Kula 16

Table11- Ranking of settlements by priority

According to the final results obtained from the SIPU table, all settlements are ranked and scores are given from 0 to 16. In the methodological approach of the assessment, we have settlements where the score is from 0 to 1 including with the number 16. This small index is due to the low living and development of these settlements in recent decades, a large number of the population has migrated to the city, so although according to the 2002 census where the data are derived, there is still a large share of the population no inhabitants lived, or only a few residents of high age remained. For this reason, any investment in these communities is unjustified with given number of users. For this reason, the municipality of Kavadarci does not consider these settlements when developing the ranking as a priority for the allocation of these grant funds, and has started considering those settlements where they begin with a rating of 4, which means the lowest value of service i.e insufficient or low living conditions of the citizens up to 16, which means the highest value of service, i.e. sufficient or normal living conditions of the citizens in the settlements. One of the lowest ranked settlements with index 4 is the rural community of Sopot.

CITIZEN ENGAGEMENT Citizens in Sopot have been included into consultation process regarding on implementing of the major project “Reconstruction of the water supply system on part of the street “Ilindenska”, part of the street “Marshal Tito” with asphalting” that is subject of this appraisal. They were involved in a consultative process through their participation during the public hearing and they participated in the selection of prioritizing the projects. The mayor of the municipality regularly holds meetings with the local population in order to discuss the communal infrastructure construction for the current and the next year, as well as solving the existing problems. On September 12, 2019, a meeting was held with the residents of the Local community Sopot. The meeting was attended by 124 residents, of whom 56 women and 68 men as well as officials from the municipal administration together with the mayor. The citizens of this local community complained that they have been living in abusive conditions for the 21st century, and requested improvement of their living conditions, as well as the improvement of water supply, sewage and the reconstruction of local roads. Participation in the selection on the priorities for infrastructure projectsdemonstrates that the residents are in favour of the project. Additionally, residents were well informed about this project through the website of the municipality, presentation in front of the council of the municipality, during the budget discussion as well as by direct consultative process and discussions with the mayor in each local community. The municipality has well established practice of citizens’ engagement activities in monitoring project implementation process. This includes established placement of feedback drop box, annual public consultations with published results, and designated citizens’ hours for meetings with the Mayor of the Municipality (each Thursday in the week) and Council members. This participative practice ensures mitigations of risks and an early warning so the residents can influence on necessary changes if they arise during the implementation of the project if needed. This ensures for the municipality to take all actions possible to protect the investment. It was already demonstrated that his project is expected to improve the quality of life of citizens and to enable the local economy thus, citizens will give full support during realization of the project.

SOCIAL RISKS High socials risks for carrying out of this project cannot be perceived. This project is about reconstruction of the water supply system with complete asphalting, the development of communal infrastructure and improving the quality of life. There won’t be land acquisition or resettlement issues, since the project is being implemented on municipal owned land. High participation rate has been secured with inclusion of the local communities (“mesnizaednici”) approval through the public hearing as well as the nature of the project brought social cohesion for approval.Also the 63 participants to this public hearing we from different ethnic background (Macedonian, Roma etc).

Since the municipal council is consisted of representatives of different political parties (8 from VMRO DPMNE, 10 from SDSM and one independent) it’s approval of the project guarantees that there won’t be any political obstacles for its implementation.

IV. ENVIRONMENTAL IMPACT The proposed project will carry out reconstruction of the 838 meters long water supply lines, on part of the streets Ilindenska and Marshal Tito, and asphalting of 290 m of Marshal Tito street in the village Sopot, Municipality of Kavadarci. For the proposed reconstruction works, an Elaborate for Environmental Impact Assessment was prepared with tech.number 03- 01/2021by Bidat Plus Dooel-Kavadarci, approved by the Mayor of Municipality with No.11- 595/3 from 01/02/2021. The immediate project area is presented in Figure below.

Figure 5 : project location within the Municipality of Kavadarci

Figure 6: Project location with objects in the village Sopot Water lines that will be reconstructed within the project Recently reconstructed water supply system Source: Google Earth

The reconstruction of the water supply system affects 53 households located along the streets where the construction works will be performed.The reconstruction is carried out because part of the current water supply network consists of old asbestos pipes, some are galvanized pipes, and some are polyethylene and they pass through private properties, leading to problematic issues in cases of maintenance and defects’ solving. However, although the Detailed Project Design developer used the term “reconstruction”, in practical terms, the old pipeline and manholes will not be removed, but a completely new water supply line will be installed at a currently state property (side of a street), while the old network will be only closed for use. The text below elaborates on the main project environmental impacts and the general mitigation measures.

IV.1. Main project activities that have an impact on the environment The realization of the project activities will not cause significant negative impacts on the environment; however, air emissions, generation of inert waste, increased level of noise and possible impacts on the soil, underground and surface waters are expected. Environmental impacts are expected during the construction phase and would derive from marking and clearing the streets, excavating the ground, scraping existing asphalt by profiling, removing existing asphalt by cutting and removing pavement material, placing a crushed stone locally for rehabilitation, and asphalt BNS 22 with a thickness of 7cm and emulsion spray (400g / m2). In the operational phase, environmental impacts are expected as a result of the daily use of the streets, such as emissions of exhaust gases, increased noise levels from vehicles circulating in the street and communal waste generation. For the reduction/prevention of the potential impacts, measures are proposed in the Environmental Mitigation Plan (given in the tables A and B below) and they should be implemented by the Project Contractor. The supervising engineer should monitor the implementation of the mitigation measures and in due time inform the Project Manager of the Municipality of Kavadarci and the MSIP Office. IV.2. Main Environmental Impacts and Sensitive Receptors For safe conduct of the project activities, it is necessary to undertake safety measures for both the workers and the local population within the community. Before the commencement of the construction activities, it is necessary to prepare a Plan for Occupational Health and Safety, and to approve and implement its measures for the entire duration of the construction phase. This Plan shall also propose a separate section on Community Health & Safety, proposing special measures to secure the access to homes of the local population and securing the trench along the reconstruction lines. Application of good construction practice, use of personal protective equipment by workers, presence of firefighting appliances, marking of the construction site, signs for traffic diversion, limitation of driving speed in the subject locations and provision of alternative access to the buildings along the subject street will contribute to increased safety of the workers and the local population. Ensuring a safe access for locals to their homes and the smooth movement of people along the street is issue of particular importance. Considering the current situation with pandemic COVID-19 infective disease in the country, in addition to the measures for safety and protection at work, the OH&S plan should also include measures for prevention of COVID-19. The Contractor is required to follow/update and implement the measures that are currently in force and adopted by the Government as binding at national level, as well as the Guideline considerations provided by the World Bank through the MSIP2/PIU. Official site for information related to COVID 19 on national level is www.koronavirus.gov.mk. The local population should be informed of the planned project activities (location, duration of the activities, restriction of the movement, etc.) for which the responsible persons from the Municipality are obliged to prepare an Information / Announcement and publish it on the website of the municipality (http://kavadarci.gov.mk/), visible local places and the bulletin board in the municipality. A publicly available Complaints Dropbox shall be placed within the same municipal building; effective follow-up mechanism for prompt response shall be established by the municipal administration. In case the Contractor needs to place a camp for keeping and maintaining the mechanization equipment, worker’s facilities for accommodation, catering and bathrooms, etc., it shall ensure that wastewater collection and treatment (communal as well as washout of the mechanization), hazardous materials storage, clearing of soil and vegetation and collecting any waste generated, shall be rehabilitated without any damage to the environment. Emissions into the air The main sources of air emissions during the construction will be mobile sources (construction machines, vehicles for delivery of construction materials at the site and heavy trucks). The emitted pollutants that occur as a result of the use of vehicles with internal combustion engines will primarily be CO, NOx, PAH, and PM particles that will occur during the removal of the existing asphalt layer. According to the scope of activities, air emissions will be short-term with local impact. In the operational phase of the street, emissions of exhaust gases from mobile sources (vehicles that will circulate along the route) are expected. Emissions into the water In the course of the planned construction activities, sanitary-technical wastewater from the workers who will perform the construction works is expected, and therefore the Contractor must install prefabricated mobile toilets that will be serviced according to an Agreement between the Contractor and a licensed collector/processor company for this type of waste. Since the river Luda Mara is near the project locations (400 m west), from the realization of the construction activities there is a possibility that the water quality will deteriorate as a result of illegal waste disposal or possible leakage of oil/fuel from the construction machinery. According to the Decree on the categorization of watercourses, lakes, reservoirs and groundwater (“Official Journal of the Republic of Macedonia” No. 18/99), the river Luda Marais categorized with a water quality of Class III at the given location. The categorization indicates rivers with moderate eutrophic status, with higher organic load and increased primary production (this river is not suitable for fish stock cultivation and use for recreational activities without its prior treatment: filtering, coagulation, etc.). In order to prevent possible further deterioration in the quality and status of this water recipient, the disposal of waste generated in or near the riverbed during the project activities is prohibited. Waste generating During the construction work activities, waste from the removal of asphalt/concrete parts and soil is expected, as well as municipal waste from the employees. The contractor should comply with the national waste management legislation (selection, classification, appropriate storage - not to mix hazardous with non-hazardous waste, sign agreements for taking the appropriate types of waste, measure the quantities of generated and handed waste and store records for it). PUE Komunalec is the company responsible for taking over the municipal and inert waste within the municipality. The estimated quantities of waste generated are shown in Table 2 in accordance with the bill of quantities of the Technical Project Design. The transportation and final disposal of the demolition non- hazardouswaste will be carried out by the Contractor at the "Melci" landfill located near the Kavadarci, approximately 10 km from the project site. For old asphalt parts, the Municipality of Kavadarci has designated the location at the same landfill “Melci” for temporary storing before its recycling for small asphalting purposes.

Table 2: Estimated generated waste quantities during the project activities as per the BoQ Code according to Legal entity for the List of types of handling waste Quantity of Type of waste waste (Official and location of waste Journal No. waste disposal 100/2005) (landfill) Excavated material – soil, 17 05 04 492 m3 At the landfill rubble and mad "Melci" near Kavadarci, about Old asphalt 17 03 02 54 m2 10 km from project Concrete / rock 17 01 01 83 m site

In case of incidents, such as spill out of oils, lubricants, fuel, old asbestos pipes, other substances that may be considered as hazardous waste, the Contractor shall proceed with authorized entity for handling of such waste of the list on: http://www.moepp.gov.mk/wp- content/uploads/2014/11/Registar-za-Transport-opasen-otpad.pdf. In the operational phase, creation of waste from the remains of the cleaning of the street (municipal waste, vegetation), can be expected but in small quantities. Noise, vibration and non-ionizing radiation During the preparatory and construction activities noise will be generated, which will be discontinuous and short-term, but at times enlarged. The subject location according to its characteristics and in accordance with the Rulebook on the locations of measuring stations and measuring points (Official Gazette of the Republic of Macedonia No. 120/08) belong to area with II degree of protection against noise. According to the Rulebook on the limit values of the level of noise in the environment (Official Gazette of the Republic of Macedonia No. 147/08), the limit values for the area with II degree of protection against noise are 55dBA for the day and night period .Therefore, the Contractor should use machinery that during its work produces noise in accordance with the Rulebook on the specific types of specific noise sources as well as the requirements to be met by installations, equipment, installations and devices which are used outdoors in terms of noise emission and noise protection standards - "Official Journal of RM” no.142 / 13). Biodiversity (Flora and Fauna) The project location is in the rural area “Sopot” so the project activities do not cause negative impacts on the biodiversity in nature. Since the works are intended for reconstruction of the street, existing trees along the sidewalks must not be cut / destroyed. The proposed mitigation measures are presented in Tables of Environmental Mitigation and Monitoring Plan below, which should be implemented by the Contractor. The Supervisor has main obligation of providing monitoring of their implementation, as well as responsible municipal inspectorates.

Table A. Environmental Mitigation Plan

Potential impact Scale of impact Suggested mitigation measures Responsibility Project activities: Preparation activities prior to commencement of construction works - Marking the route for the project activities“ RECONSTRUCTION OF THE WATER SUPPLY SYSTEM ON PART OF THE STREET “ILINDENSKA”, STREET “MARSHAL TITO”, WITH ASPHALTING”

Health and safety at work and Locally / along part 1. Preparation, approval and implementation of an Elaborate • Contractor safety aspect of the community of the "Ilindenska”, on health and safety at work, incorporating the • Supervision part of the street community safety measures, including measures/plan for • The staff of the

“Marshal Tito”, in prevention of COVID -19 for the construction site, prior to municipality Possible negative social and the Local commencement of activities; (utility inspector health impacts on the community Sopot. 2. Preparation, approval and implementation of Traffic and population, drivers and Management Plan during the construction activities (in environmental Short-term during workers due to: correlation with the employees in the municipality, prior to inspector) is the construction commencement of the construction activities); responsible for − Lack of secured period 3. Preparation and publication of the Information Note inspecting that the security measures at through the Municipal Board, web site stated measures the start of (http://kavadarci.gov.mk/) prior to the commencement of are implemented construction work; Great - Significance theproject activities; setting up notifications of key facilities, and for writing a − Injury that passes close such as school, markets, shops, clinics, institutions, etc. report on the to the construction site - Placement of a publicly available Complaints Dropbox extent of the and open ditch; within the same municipal building; effective follow-up implemented − It is not in accordance mechanism for prompt response shall be established by measures with the strict the municipal administration standards of Health and Safety at Work and 4. Applying good construction practice for markingof the Work Procedure construction site, including: − Inadequate public • Ensure proper marking of the site, part by part along access of part of the the street; street "Ilindenska”, • Setting attention signs especially for limiting driving part of the street speed near the part of the street "Ilindenska”, part of “Marshal Tito” local the street “Marshal Tito”, during reconstruction; community Sopot. • Warning tapes and "access prohibited" tags should be provided; • Installation of a bulletin board with general Potential impact Scale of impact Suggested mitigation measures Responsibility information about the project, Contractor and supervisor; • It is forbidden for unemployed persons to enter within the warning tapes; • Measures for the safety and security of workers at work in the community and worker (first aid, protective clothing for workers, appropriate machinery and tools) should be applied; the Contractor should provide easy access for the local population to their buildings/ houses and other facilities; the municipality should conduct prior communication with the residents for the most favorable approaches • During the reconstruction work, the Contractor should provide easy access for the local population to their buildings / houses and other facilities; the municipality should conduct prior communication with the residents for the most favorable approaches • The location of the project should be clean; • A mobile toilet should be placed on site and cleaned regularly; • The machines should be operated only by experienced and trained personnel, which reduces the risk of accidents (certificates for trained personnel); • The constant presence of fire extinguishers in case of fire or other damage should be ensured; • All workers must be aware of the dangers of fire and firefighting measures and must be trained to deal with fire extinguishers, hydrants and other devices used to extinguish fires; • Larger quantities of flammable liquids should not be stored at the site.

Project activities: RECONSTRUCTION OF THE WATER SUPPLY SYSTEM ON PART OF THE STREET “ILINDENSKA”, STREET “MARSHAL TITO”, WITH ASPHALTING

Air aspect (air emissions) Locally / 1. The construction site, the transport roads and the locations for • Contractor within the handling materials should be sprayed with water on dry and • Supervision Possible emissions from project windy days; • The staff of the transport vehicles and location in the 2. Mandatory washing of the construction machinery from dust municipality (utility impact on air quality Local accumulated during the day, at the location for the maintenance inspector and within the project community of the vehicles environmental location due to: Sopot 3. Construction materials should be stored in appropriate places inspector) is − Release of gas from covered to minimize dust; responsible for Short-term / particles of suspended 4. Use of protective masks for workers if dust occurs; inspecting that the large dust 5. Restriction of the vehicle speed at the construction site; stated measures are − It will cause traffic 6. Regular maintenance of vehicles and construction machines in implemented and jams, as well as order to reduce the leakage of engine oils, emissions and for writing a report changes in the dispersion of pollution; on the extent of the existing traffic 7. It is not allowed to burn residues of soil and dry plant mass. implemented circulation measures Aspect of noise Locally / 1. The project location belongs to the II degree of noise protection, • Contractor within the where the maximum permissible level of noise should be 45dBA • Supervision Possible noise frame of per night and 55dBA per night and day; • The staff of the abnormalities as a result location, 2. Construction works should not be allowed at night; the municipality (utility of the use of external project area operation of the sites is limited to hours from 7 am to 3 pm. inspector and equipment and transport 3. Personal protective equipment for workers for protection environmental vehicles moving around Short-term against noise (ear pads, etc.) is necessary; inspector) is the construction site small 4. Due to the characteristics of the location of the project, the responsible for contractor should use a construction machinery and equipment inspecting that the that should generate a level of noise less than 102 dB (A), i.e. to stated measures are have a Declaration of Conformity in accordance with the implemented and Statutes on the detailed types of specific noise sources as well for writing a report conditions which should be fulfilled by stations, equipment, on the extent of the installations and devices used in open space in terms of noise implemented emitted and standards for noise protection (Official Gazette of measures RM No. 142/2013); Aspect of water Locally / along 1. Storage or disposal of substances harmful to water near the • Contractor the location of river bed "Luda Mara" is not allowed (for example, fuel for • Supervision Possible influence on the project construction machines); • The staff of the watercourses - the river (river "Luda 2. The street should be kept clean to prevent oil and dirt rising, municipality "Luda Mara" (in the town Mara") near which can be washed in water or drain during heavy rainfall. (environmental of Kavadarci) in the Local the village inspector) is community Sopot. Sopot responsible for inspecting that the short stated measures are term/large implemented and for writing a report on the extent of the implemented measures

Aspect of waste management Locally/ within 1. Identification of different types of waste at the construction site • Contractor the project (soil, asphalt, rocks&concrete, food packaging, etc.); • Supervision Possible side effects on location in the 2. Classification of waste according to the National Waste List • The staff of the the environment and settlement (Official Gazette No. 100/05); municipality (utility health effects may arise as Kavadarci inspector and a result of generating - The main waste will be classified according to Chapter 17 environmental different waste streams. short term/ "Construction and demolition waste " with the waste codes: 17 inspector) is large 05 04 - excavated soil; 17 03 02 – old asphalt / bituminous Inadequate waste mixtures; 17 01 01 - Concrete from demolition at the responsible for management, not in the construction site; inspecting that the time of collection and statedmeasuresare 3. A small amount of solid municipal waste (food, beverages) can transportation of waste implemented and be found, as well as packaging waste (paper, bottles, glass, etc.). streams for writing a report 4. Collecting and transporting inert and municipal waste from PUE on the extent of the "Komunalec" (final disposal of waste will be done at the location implemented "Melci" - about 10 km west of the location of the project); measures Possible hazardous waste (motor oils, vehicle fuels, old asbestos • Mayor of the pipes) should be collected separately and authorized collector municipality of and transporter should be sub-contracted to transport and Kavadarci finally dispose the hazardous waste by the authorized entity of • PUE “Komunalec” the list: http://www.moepp.gov.mk/wp- from Kavadarci content/uploads/2014/11/Registar-za-Transport-opasen- otpad.pdf.The materials should be covered during transportation to avoid dispersion of the waste; 5. Combustion of construction waste is prohibited. • Accumulation of solid municipal waste (SMW) in bins and waste containers along part of the street part of the street "Ilindenska”, part of the street “Marshal Tito”, PUE "Komunalec" from Kavadarci should timely and regularly collect waste from existing containers / bins, as well as from newly installed waste bins. Table B. Environmental Monitoring plan Which Where is the How is When is the Why is the Costs Responsibility parameter parameter the parameter parameter should be that should paramete monitored monitored? Cons Wor Constructio Operation monitored? be r (measuremen truct k n phase of al phase of monitored? monitore t frequency)? ion the project the project d? Phase of the project: RECONSTRUCTION OF THE WATER SUPPLY SYSTEM ON PART OF THE STREET “ILINDENSKA”, STREET “MARSHAL TITO”, WITH ASPHALTING -in the Local community Sopot

Application of At the Visual During the To comply with Contractor protective construction checks activities for national Contractor measures for site in Local preparation regulations on workers and community (clearing) and at municipal health Supervision Supervisor local Sopot the beginning of and standards for Construction population in each working health and safety at inspector in Utility the community, day during the work. the in order to project inspector in To prevent health Municipality minimize activities the and safety risks - of Kavadarci possible municipality mechanical injuries injuries at the of Kavadarci to workers and construction local people site Application of preventive measures against COVID- 19 by all workers on the site Phase of the project: RECONSTRUCTION OF THE WATER SUPPLY SYSTEM ON PART OF THE STREET “ILINDENSKA”, STREET “MARSHAL TITO”, WITH ASPHALTING”- in the Local community Sopot

Selection / At the Review the At the In order to separate Contractor Contractor division of the construction documentati beginning of the non-hazardous Which Where is the How is When is the Why is the Costs Responsibility parameter parameter the parameter parameter should be that should paramete monitored monitored? Cons Wor Constructio Operation monitored? be r (measuremen truct k n phase of al phase of monitored? monitore t frequency)? ion the project the project d? generated site in the Local on the from hazardous Supervisor different waste community construction waste, Supervision Communal streams at the Sopot work with inspector in location of the new the project material/s Municipality of Kavadarci

Final removal Along the Review the During the To prevent the Contractor Communaly of inert waste project location documentati construction accumulation of inspector in Supervision (construction on phase of the construction waste the waste) project (once at natural sites and Municipality Letter from a week) degradation of of Kavadarci the nature municipality for the location for disposal of this waste

Collecting, Security for Review the Before Improve waste Authorized Contractor transporting temporary transport list transporting management legal entity for Supervisor and storing storage and the the hazardous practice at collection and hazardous agreement waste municipal and transportatio Environmen waste (electric with the national level / Do n of tal inspector light bulbs, tar warehouse / not dispose hazardous in the / mixtures) authorized hazardous waste at waste Municipality remover the disposal sites of of Kavadarci SMW

Filled annual Administration Review of After realizing Improve waste Mayor of the Contractor report on the of the local self- documentati the task of management at Municipality Supervisor collection, collection, local and national of Kavadarci / Which Where is the How is When is the Why is the Costs Responsibility parameter parameter the parameter parameter should be that should paramete monitored monitored? Cons Wor Constructio Operation monitored? be r (measuremen truct k n phase of al phase of monitored? monitore t frequency)? ion the project the project d? transportation government on transportation level. Ministry of Environmen and disposal of , removal and Environment tal inspector - To comply with waste final disposal and Physical in the Identification national legal of waste Planning Municipality of the waste requirements of Kavadarci list

Measurements All Verification In case of To provide a Contractor Contractor of noise mechanization of the public limitation of the Supervision Supervisor used for work Declaration complaints level of noise in the of according to Environmen settlement Conformity national tal inspector for all regulations and in the machines that mechanization Municipality with harmonized of Kavadarci noise level is used Project Phase: Operational Phase

Collecting, Along the Visual After collecting Do not leave the PUE transporting monitoring and waste on the spot “Komunalec” and final and review transporting to avoid the impact from disposal of the of the lists waste on the environment Kavadarci created SMW for and health of the from the transport locals. Ensure containers on and proper waste part of the disposal management. street from PUC "Ilindenska”, "Komunale part of the c" from street “Marshal Kavadarci Tito” in the Which Where is the How is When is the Why is the Costs Responsibility parameter parameter the parameter parameter should be that should paramete monitored monitored? Cons Wor Constructio Operation monitored? be r (measuremen truct k n phase of al phase of monitored? monitore t frequency)? ion the project the project d? Local community Sopot. Regular Along the Visual In the In order to ensure PUE maintenance of street in Local monitoring operational the correct function “Komunalec” horticultural community phase of the of street lighting fromKavada vegetation Sopot project and to ensure the rci (cutting maintenance of branches, etc.) horticulture on the and part of the street maintenance of "Ilindenska”, part street lighting of the street “Marshal Tito”, in the Local community Sopot. V. FINANCIAL ANALYSIS The Municipality of Kavadarci has been participating in the Second MSIP since 2018. The Sub-loan agreement No. 5 between the Ministry of finance and the Municipality of Kavadarci was signed on 10.09.2018 followed with an annex to the sub-loan agreement for utilization of all sub-loan funds signed on 14.02.2020. The annex to the sub-loan agreement refer to realization of additional project for “Reconstruction of local road “Ladno Dolce- Krnjevo”. Based on this annex the Municipality signed a contract with the contractor “GradbaPromet" – Kavadarci No. 14-1089/7 on 27.05.2020 in the amount of MKD 11.674.920. Тhis project is fully completed. Following the Second MSIP procedure for implementation of the Social inclusion grant component, the Municipality of Kavadarci is eligible to receive a second grant in the amount of 3.152.228 MKD (27% from the contact value). Based on the urban audit results the Municipality decide to use this grant funds for implementation of the project for ”Reconstruction of the water supply system on part of ”- part of the street "Ilindenska”, part of the street “Marshal Tito” with asphalting in the Local community Sopot. The Municipality Council adopted Decision no. 08-370/3 dated 29.01.2021 establishes that realization of a “Project for Reconstruction of carriageway on street ”Reconstruction of the water supply system on part of ”- part of the street "Ilindenska”, part of the street “Marshal Tito” with asphalting in the Local community Sopot as apriority for the Municipality and it will financed by a MSIP2 poverty social inclusion grant The total estimated investment value of the grant financed project is MKD 5.075.982,09 (Euro 82.536,3) including VAT. Grant funds approved represent 61% of the project costs while the remaining 39% will be provided by the Municipality of Kavadarci. The basic project design presents division of these costs into the following categories. Table 1: Project investment costs per type of activity Total with Type of activity Net value VAT VAT Water supply system Line Reconstruction for strilindenska 4 469.554,52 84.519,81 554.074,33 Water supply system Line Reconstruction for str. ilindenska5 249.356,00 44.884,08 294.240,08 Water supply system Line Reconstruction 354.619,26 63.831,47 418.450,73 for str. Ilindenska11 Water supply system Line Reconstruction 353.580,54 63.644,50 417.225,04 for str. Ilindenska12 Water supply system Line Reconstruction 76.112,94 498.962,58 for str .Ilindenska14 422.849,64 Water supply system Line Reconstruction 359.348,92 64.682,81 424.031,73 for str. .Ilindenska15 Water supply system Line Reconstruction 2.092.370,86 376.626,75 2.468.997,61 for str.Marshal Tito and asphalting Total 4.301.679,74 774.302,35 5.075.982,09 It is assumed that construction works and procurement will last approximately 8 months starting from March to October, what means that all the above-mentioned investment costs will be carried out during 2021. Since the total value of the project exceeds the available grant amount, the municipal co- financing is assumed. The Municipality included needed amount in the investment program and in the budget for 2021 which are confirmed by the Decision from the City Council, no. 08-370/3 from 29.01.2021. Table 2: Structure of the project financing Value Value (including (including VAT, MKD) VAT, EUR) ”Reconstruction of the water supply system on part of ”- part 5.075.982,09 82.536,30 of the street "Ilindenska”, part of the street “Marshal Tito” with asphalting Total: 5.075.982,09 82.536,30 Financing: Second MSIP Grant 3.152.228 51.225,7 Municipal co-financing 1.923.754 31 280,50 Total financing 5.075.982,09 82.536,30 Source: Subject-calculation (1EUR=61.5MKD) Reconstruction of the water supply is the requirement that the residents of this rural community referred to the municipality, at the meeting that was held with citizens in October 2019. The grant funds allocated for this project, will improve the municipal services into the citizens, will improve the living conditions in hope to prevent the trend of emigration from rural to urban areas and return of residents who have already migrate and will increase the social inclusion. In this rural community, the population is predominantly engaged in agriculture and some of them work in local factories. With realization of this project, we will improve the living condition of the citizens in this urban community, will resolve the negative socio-economic impacts on environment, and over the citizens health. However, it is clear that the project is economically justified.