“Engelsova”, “Pirinska”, “Prvomajska”, “Tikveshka”, “Vardarska”

MUNICIPALITY OF NEGOTINO PROJECT APPRAISAL DOCUMENT FOR RECONSTRUCTION OF STREETS “VELJKO VLAHOVIC”, “ENGELSOVA”, “PIRINSKA”, “PRVOMAJSKA”, “TIKVESHKA”, “VARDARSKA”, Municipal Services Project Improvement Municipal “GJOKO MISHEV”, “VANO TASHEV” AND PART OF STREET “MARKSOVA” Skopje March 2021 Table of Content Summary ......................................................................................................................................... 8 1 Project description ................................................................................................................ 10 1.1 General Information on the municipality of Negotino .................................................. 11 1.2 Demographic and economic profile ............................................................................... 11 1.2.1 Demographic table .................................................................................................. 11 1.2.2 Gender and age ....................................................................................................... 13 1.2.3 Minority repartition ................................................................................................ 14 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 ................................................................................... 16 1.3.1 General description ................................................................................................. 16 1.3.2 Area concerned by the project ............................................................................... 17 1.3.3 Current situation ..................................................................................................... 18 1.3.4 Project goals and project beneficiaries................................................................... 27 1.3.5 Knowledge and experience of the municipality of Negotino ................................. 27 1.3.6 Conclusions ............................................................................................................. 28 2 Social assessment .................................................................................................................. 30 3 Environmental Impact ........................................................................................................... 36 3.1 LOCATION OF PROJECT SITE .................................................................................................... 37 3.2 MAIN PROJECT ACTIVITIES WITH ENVIRONMENTAL IMPACT ........................................................... 38 3.3 MAIN ENVIRONMENTAL IMPACT AND SENSITIVE RECEPTORS ......................................................... 39 3.4 ENVIRONMENTAL MITIGATION PLAN FOR THE PROJECT: RECONSTRUCTION OF EIGHT STREETS IN MUNICIPALITY OF NEGOTINO ............................................................................................................ 43 3.5 ENVIRONMENTAL MONITORING PLAN FOR THE PROJECT: RECONSTRUCTION OF EIGHT STREETS IN MUNICIPALITY OF NEGOTINO ............................................................................................................. 46 4 Technical solution ...................................................................................................................... 49 4.1 Description .......................................................................................................................... 50 4.2 Analysis and evaluation ....................................................................................................... 62 4.3 Conclusions and recommendations .................................................................................... 62 2 4.4 Alternative solutions ........................................................................................................... 62 Financial analysis ........................................................................................................................... 63 5.1 Project cost ..................................................................................................................... 64 5.2 Credit capacity ................................................................................................................ 64 5.3 Loan repayment ............................................................................................................. 65 5.4 Review of the municipal account ................................................................................... 66 5.5 Analysis of the financial feasibility of the project .......................................................... 68 5.5.1 Time horizon ............................................................................................................... 68 5.5.2 Limitations of the analysis .......................................................................................... 68 5.5.3 Initial investment ........................................................................................................ 68 5.5.4 Inflation ....................................................................................................................... 68 5.5.5 Discount rate .............................................................................................................. 69 5.5.6 Projection of operating cash flows ............................................................................. 69 5.6 Costs ............................................................................................................................... 69 5.7 Sensitivity analysis .......................................................................................................... 71 5.8 Conclusions..................................................................................................................... 71 6 Cost-benefit analysis .................................................................................................................. 73 6.1 General information ............................................................................................................ 74 6.1.1 Framework of the analysis ........................................................................................... 74 6.1.2 Limitations and constraints of the study ...................................................................... 74 6.1.3 Scope ............................................................................................................................ 74 6.2 Identification of the relevant costs and benefits ................................................................ 74 6.2.1 Project costs ................................................................................................................. 74 6.2.1.1 Economic valuation of the costs ................................................................................ 75 6.2.2 Quantifiable benefits .................................................................................................... 76 6.2.3 Unquantifiable benefits ................................................................................................ 77 6.3 Other assumptions .............................................................................................................. 77 6.4 Valuation of the costs and benefits .................................................................................... 78 6.6 Results from the cost-benefit analysis ................................................................................ 78 6.7 sensitivity analysis ............................................................................................................... 79 6.8 Conclusion ........................................................................................................................... 79 3 7 Risk analysis ........................................................................................................................... 80 Technical risks to the municipality ............................................................................................ 81 Financial risks to the municipality ............................................................................................. 81 Recommendations ........................................................................................................................ 83 8 Annex ......................................................................................................................................... 85 8.1 Decision of the Municipality of Negotino for loan .............................................................. 86 4 List of Tables Table 1. Basic demographic and economic data about Negotino ............................................................................... 12 Table 2. Urban and rural repartition............................................................................................................................ 13 Table 3. Age distribution by gender ............................................................................................................................ 13 Table 4. Population by ethnic groups in Negotino ...................................................................................................... 14 Table 5. Active business legal entities for 2019 ..........................................................................................................

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