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Municipality of Valandovo Project Appraisal Document “Procurement

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Municipality of Valandovo Project Appraisal Document “Procurement MUNICIPALITY OF VALANDOVO PROJECT APPRAISAL DOCUMENT “PROCUREMENT OF MECHANIZATION FOR IMPROVEMENT OF THE COMMUNAL SERVICES IN THE MUNICIPALITY OF VALANDOVO” Skopje, January 2021 Contents 1. INTRODUCTION ............................................................................................................................... 5 1.1. General description ................................................................................................................. 6 1.1.1. Current condition ............................................................................................................ 6 1.1.2. Future condition ............................................................................................................ 13 1.1.3. Strategic goals ............................................................................................................... 15 1.1.4. Knowledge and experience of municipality of Valandovo............................................ 15 1.2. Conclusion ............................................................................................................................. 16 2. PROJECT DESCRIPTION .................................................................................................................. 16 2.1. General information on the municipality ............................................................................. 16 2.2. Demographic profile ............................................................................................................. 18 2.3. Economic profile ................................................................................................................... 20 3. SOCIAL IMPACT OF PROJECT ......................................................................................................... 21 3.1. Methodology ......................................................................................................................... 21 3.2. Social diversity and gender ................................................................................................... 22 3.3. Institutions, rules and behavior ............................................................................................ 23 3.4. Stakeholders ......................................................................................................................... 24 3.5. Citizen’s engagement/ participation ..................................................................................... 24 3.6. Social risks ............................................................................................................................. 25 3.7. Other considerations ............................................................................................................ 26 3.8. Resettlement issues .............................................................................................................. 26 3.9. Concluding remarks .............................................................................................................. 26 4. ENVIRONMENTAL IMPACT ............................................................................................................ 26 4.1. Main project activities that have an impact on the environmentError! Bookmark not defined. 4.2. Major impacts on the environment and sensitive receptors .. Error! Bookmark not defined. 4.3. Main environmental impacts in the operational phase .......... Error! Bookmark not defined. 5. TECHNICAL SOLUTION................................................................................................................... 41 5.1. Description ............................................................................................................................ 41 5.2. Technical specifications ........................................................................................................ 41 5.2.1. Tractor ........................................................................................................................... 41 5.2.2. Trailer dumping on three sides ..................................................................................... 42 5.2.3. Snowboard plow ........................................................................................................... 43 5.2.4. Trailer tank for septic tanks discharge and cleaning ..................................................... 43 5.2.5. Sweeper ........................................................................................................................ 44 5.3. Alternative solutions ............................................................................................................. 45 5.4. Conclusion and recommendations ....................................................................................... 45 6. FINANCIAL ANALYSIS ..................................................................................................................... 46 6.1. Project costs .......................................................................................................................... 46 Loan repayment ............................................................................................................................ 47 6.2. Credit capacity ...................................................................................................................... 48 6.3. Financial Analysis of Municipal Capacity to Service Debt ..................................................... 49 6.4. Review of Communal Service Enterprise “Valandovo”......................................................... 50 6.5. Analysis of the financial feasibility of the project ................................................................. 51 6.5.1 Time Horizon ........................................................................................................................ 51 6.5.2 Limitations of the analysis ................................................................................................... 51 6.5.3 Initial Investments ................................................................................................................ 51 6.5.4 Inflation ................................................................................................................................ 51 6.5.5 Discount rate ........................................................................................................................ 51 6.5.6 Projection of operating cash flows ...................................................................................... 52 6.5.7 Results from financial analysis ............................................................................................. 54 6.6. Sensitivity analyses ............................................................................................................... 55 6.7. Concluding Remarks .............................................................................................................. 55 7. COST BENEFIT ANALYSIS ............................................................................................................... 56 7.1. General information.............................................................................................................. 56 7.1.1. Framework of the analysis ............................................................................................ 56 7.1.2. Limitations and constraints of the study ...................................................................... 57 7.1.3. Scope ............................................................................................................................. 57 7.2. Identification of the relevant costs and benefits .................................................................. 57 7.2.1. Project investment costs ............................................................................................... 57 7.2.2. Project costs and benefits ............................................................................................. 57 7.2.3. Other assumptions ........................................................................................................ 60 7.3. Valuation of the cost and benefits analysis .......................................................................... 60 7.4. Results of the cost and benefits analysis .............................................................................. 61 7.5. Sensitivity analysis ................................................................................................................ 61 7.6. Concluding remarks and recommendations ......................................................................... 61 Table of figures Figure 1. 1 Map of Valandovo ................................................................................................................. 6 Figure 1. 2 Fleet of CSE „Communal Service” Figure 1. 3 Fleet of CSE .................................................. 7 Figure 1. 4The fleet of CSE ..................................................................................................................... 8 Figure 1. 5 The fleet of CSE .................................................................................................................... 9 Figure 1. 6 The fleet of CSE .................................................................................................................. 10 Figure 1. 7 The fleet of CSE .................................................................................................................
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