Municipality Mavrovo and Rostushe

PROJECT APPRAISAL DOCUMENT

“Construction of local road - Adzievci”

World Bank Municipal Services Improvement Project

Rostushe October 2020

I. PROJECT DESCRIPTION

A. BACKGROUND

The Municipality of Mavrovo and Rostushe occupies the western part of the country, with the centre of the municipality being the village of Rostushe. The municipality borders the Municipality of to the south, the Municipality of Kicevo to the southeast and the Municipality of Gostivar to the north. The municipality covers an area of 682 km2 with an average altitude of 1,158 m and is one of the three territorially largest municipalities. The municipality covers 42 settlements and according to the 2002 census has 8,618 inhabitants or 12.99 persons/ km2. According to the ethnic structure of the population Macedonians are represented with 50.46%, Turks with 31.10%, with 17.21%, and 1.23% are members of other ethnic groups. The main feature of this municipality is the hilly- mountainous structure of the land, including 93% of the area of the Mavrovo National Park and several river streams, mountain lakes and the largest artificial lake in Macedonia - Mavrovo Lake. The Municipality of Mavrovo and Rostushe has been using sub loan from MSIP2 for the project “Reconstruction of the local road for v. ”. The Agreement for the MSIP2 sub-loan between the Ministry of finance and the Municipality of Mavrovo and Rostushe No. 09-382/4 was signed on December 18, 2019 on the amount of MKD 13,840,785 (equal Euro 225,053). For implementation of the above project the Municipality signed contract with contractor Pelagonija AD Gostivar No. 05-36/7 on April 15, 2020 on the amount of MKD 11,496,037 (equal Euro 186,927) including VAT. The project is technically and financially completed where the technical expectance was performed on July 17, 2020. According to the urban audit for the Municipality of Mavrovo and Rostushe prepared by the municipality employees under instructions of the independent UA consultant and adopted by the Municipality Council, evaluated are 12 settlements (out of 42 as the rest are mostly depopulated) where with rank 3 are settlements: Adzievci, Viduse, Prisojnica and Vrbjani, rank 4 , rank 5 Trebishte, Jance and Bitushe, rank 6 Velbrdo and Zhirovnica, rank 7 Skudrinje and rank 8 Rostushe. The quantitative scores per each settlement are ranging from 0 (poor) to 16 (good). The settlements Adzievci, Viduse, Prisojnica and Vrbjani, were the lowest ranked according to the ISPU table and were classified as the most deprived with quality of life given the underserved public services. The main possible priority area/projects for intervention defined in urban audit as deficiencies and needs and discussed during the meetings with the four lowest ranked - most deprived with quality of life local communities and the Municipality team relate to: • Ecology and sanitary services (water supply, sewage, solid waste disposal) are needed in these higher altitude settlements and the municipality is considering the eventual start-up of the planned project Rusino for proper land field. • Further there is a need of improving the local roads services and connections between settlements. This is especially important for this municipality as it is with large surface and with worn out local road network. The decision to allocate poverty social inclusion grant available funds to the project for villages Prisojnica and Adzievci is based on the actual situation with needed infrastructure for those settlements and discussion with citizens. Prisojnica and Adzievci is the only villages in the Municipality of Mavrovo and Rostushe that has no asphalt road. This villages Prisojnica and Adzievci does not have sewage system and proper local roads. This villages are located 7

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km from the v. Rostushe. Prisojnica and Adzievci are a hilly and mountainous settlement at 682 and 763 meters above sea level, with a population of 315 and 149 according the census of 2002, and presumption that today inhabitants are of about 550 in Prisojnica and 370 in Adzievci, where the citizens are mostly migrants in Western European countries. Population is active in life stockbreeding. There are no public facilities in Prisojnica and Adzievci. The citizens perform all public services and interests in Rostushe. Patients in primary health care have to come to Rostushe and also to do any kind of shopping as well as to complete any other services. Citizens from Prisojnica are using local road to come to Rostushe. But with this project they can use a shorter road to Rostushe. With the asphalting of this road, the inhabitants of the Prisojnica will be able to travel more easily and the distance will be reduced by 4 km. According to the above, the Municipal Council decided to invest in the project for “Construction of the local road between the villages Prisojnica and Adzievci”. According the sub-loan agreement and after signing the contract with contractor as well as completion of Urban Audit, the Municipality of Mavrovo and Rostushe obtained the right to receive a poverty social inclusion grant in the amount of MKD 3,103,930 (equal Euro 50,470) (27% from the amount of the contract for implementation of the project). The Urban Audit for the Municipality of Mavrovo and Rostushe was presented and approved on the MSIP Coordinative Committee meeting on May 22, 2020. Urban Audit was adopted by the Council of Municipality of Mavrovo and Rostushe with Decision, no.08-142/16 from May 15, 2020. The Urban Audit define four out of twelve settlements as socially undeveloped and poor areas. Those are Adzievci, Viduse, Prisojnica and Vrbjani. Based on the available grant funds and citizens needs the Council of the Municipality of Mavrovo and Rostushe with Decision no. 08-142/17 from May 14, 2020 decided project for “Construction of the local road between Prisojnica and Adzievci“ to be priority for the Municipality and to be financed by poverty social inclusion grant. The estimated investment cost of the project “Construction of the local road between Prisojnica and Adzievci “is equal to MKD 2.887.808 and will be 100% covered by the grant. A sum of MKD 216.122 of the total amount of the grant is planned as contingency during the realization of the project. B. GENERAL DESCRIPTION OF THE PROJECT According to the Urban Audit, the settlements that are ranked from 0 to 4 are settlements with the lowest values or living conditions of the citizens in terms of density, housing, roads, environment sanitation services and settlements that are ranked from 5 to 16 are in a better position. Prisojnica and Adzievci according the urban audit are ranked with three, which means that are undeveloped in all living conditions. Both villages are mountainous settlements where Prisojnica is located at 682 meters above sea level and Adzievci is at 763 m.a.s.l. The villagers from both villages mostly migrate to western European countries but they come to visit the country and their birthplace and invest in housing there. Every time they come, they expect the living conditions to be better for them and also for the villagers who are permanent residents (approximately 550 in Prisojnica and 370 at Adzievci). Current situation. The total length of the connecting road planned for construction is 520 m. Selected local road connects the regional road and the villages Prisojnica and Adzievci. Тhis existing road is a dirt road poorly compacted, rather significantly ridged by stormwater, with variable width mainly about 3 m. The terrain around the road route is mostly forested and appropriately stable. There is no drainage system along the route. With its poor condition it is not suitable for it’s using by cars. Residents of both villages use it to communicate each

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other, which is reduced to walking because there are no other ways to facilitate communication. Figure 1. Pictures from the current situation of the local road between Prisojnica and Adzievci

With MSIP2 poverty social inclusion grant funds the municipality plans to finance the project “Construction of the local road between Prisojnica and Adzievci”. The project has no negative environmental impact. Future situation. The project assumes construction of the local road where the start point begins from the road in Prisojnica and finishes in the village Adzievci. The length of the local road is 0.520 meters. Asphalting this road with 3,5m width (with 7cm BNHS 16a asphalt placed on compacted base layer of 25cm), and placing drainage system (with earth ditches) will make this road useful for using by cars and its longevity and will create better conditions for the residents of both villages. Both villages will have an alternative route that they can use in winter when it happens that there is a road blockage due to the difficult winter conditions. This project is particularly important to the population of the village Prisojnica as they will be able to reach Rostushe faster because the distance will be reduced by more than 4 km. and also for students who go to primary school and high school as the travel conditions will be better for them to get Rostushe, especially in winter. Direct beneficiaries of this project are 920 villagers living in Prisojnica and Adzievci and in addition, there are indirect beneficiaries, 200, that are people using this road to walk.

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II. TECHNICAL SOLUTION

The subject of this project is the construction of a local road along an existing earth route for communication between villages Prisojnica and Adzievci. The route for this local road separates from the regional road 4 km (between the villages Prisojnica and Adzievci). The mileage of the route starts at km 0+000 to km 0+520. The technical documentation for the construction of the local road from Prisojnica to Adzievci, in the municipality of Mavrovo and Rostushe has a technical number 219/14 from October 2020, prepared by "ASTREKS" Skopje. The submitted documentation for construction of the local road complies with the technical requirements and have design audit, prepared by "TIMING DOOEL“ - Prilep technical number 308/20 from October 14, 2020. Construction permit for the local road archive number UP1 10-263/20 dated October 26, 2020. The total length of the road that is subject to this appraisal is 520 m. Based on the current regulations for this category of roads the maximum allowed speed is equal to 30km/h. The width of the carriageway is set at 3.5m (plus 2x1m shoulders from both sides of the road). The horizontal axis is placed strictly in the middle of the existing road (radius of curvature, R=8-100m and directions, in total 25). The vertical solution for the road is maximally adapted to the terrain, Тhe renewed route almost entirely retains the longitudinal slope of the existing one and it ranges from 4 at the beginning of the route, around 6% in the middle part of the road with some small parts with 14%. Vertical curves are with radius between 100 and 900 m. The asphalt will be made of 7cm BNHS 16a placed on compacted base layer of 25cm. The slope of the carriageway is 2,5% where base and shoulders are with 4%. The shoulders on both sides of the road will be made of 7cm gravel stabilized with cement (mix at optimum humidity, cement in the amount of about 200 kg per 1 m3 gravel). Drainage will be solved in a classical way, with earth ditches - bottom width of 30 cm and an excavation of 0.2 m3/ m1. Figure 2. Typical cross section

Source: Detailed design No.219/14 “Local road Prisojnica-Adzievci

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Figure 3. Route of the local road Prisojnica-Adzievci

Source: Detailed design No.219/4 “Local road Prisojnica-Adzievci” This work involves preparatory works, earthworks with placing compacted sub layer and upper structure. Preparatory works are marking out, securing of the route, and clearing of bushes, low vegetation and roots. The earthworks include excavation of humus, mechanical excavation of earth material, loading and transporting to landfill, compacting the sub layer in accordance with technical specifications, construction of earth embankment and planning of the slopes. The upper structure has several processes: purchase, transport, installation and compaction to the required pressure of 666 m3 base layer of crushed stone with 25 cm thickness, purchase and placing of 1,835 m3 asphalt BNHS 16a with 7cm thickness, and construction of shoulders 2 x 100 cm. Along the route, earth drainage diches will be excavated. The envisaged construction time for this project is three months.

III. ENVIRONMENTAL IMPACT

The main project goal is to provide a better and more meaningful life for the inhabitants of v. Prisojnica and Adzievci, thus helping the local development of the municipality. The project will ensure construction of the existing non-asphalted road that connects the villages Prisojnica- Adzievci with the main regional road and center of the municipality. The road is passing through the mountainous part of the municipality. The total length for construction of the existing road is 520 m. Figure 4 shows the location of the local road. Location is surround with the forest area, agricultural land and few individual family houses in the last part of the local road under construction in the settlement Prisojnica- Adzievci.

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Figure 4: Location local road from settlement Prisojnica to settlement Adzievci

According the national legislation (Law on environment – Official Gazette No. 53/05, 81/05, 24/07, 159/08, 83/09, 124/10, 51/11, 123/12) and secondary legislation, the Project for construction of the local roads belongs to the Annex I Chapter X – Infrastructural projects, Part 1: construction of local roads and streets. The project activities can be divided in three phases: preparatory, construction and operational phase. Environmental impact can be expected because of project activities within the phases. Main project activities with environmental aspects and general environmental risk assessment are present in Table 1.

Table 1 Project activities with environmental impacts for each phase Phase Environmental risk General environmental risk assessment Preparatory phase - OH&S risk for the Local and short term with major significance • Fencing and workers and local marking (putting signs population along the construction - Air emissions Local and short term, certain to happen, site, minor significance • Clean up the - Increased noise level Local and short term, certain to happen, site from waste and minor significance shrubs and - Waste generation Local and short term, certain to happen, transportation of waste minor significance to landfill - Water pollution Possible, local and short term with major significance Construction phase - OH&S risk for the Local and short term with major significance • Excavation of workers and local soil, population • Installation of - Air quality Local and short term, certain to happen, minor significance

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Phase Environmental risk General environmental risk assessment drains, - Increased noise level Local and short term, certain to happen • Putting minor significance bituminous emulsion, - Waste generation Local and short term, certain to happen asphalt, concrete tile minor significance etc. - Water pollution Possible, local and short term with major significance Operational phase - Waste generation Local and long term, certain to happen • Putting the minor significance local road into - Water pollution Possible, local and short term with major operation and every day significance usage of the road - Increased noise level Local and long term, certain to happen, minor significance - Air emission Local and long term, certain to happen minor significance

This section of the road is not the only traffic connection for the inhabitants of the villages Prisojnica and Adzievci with other bigger towns/cities in the wider area. Therefore, the Municipality of Mavrovo and Rostuse does not have to take special measures for the traffic regime. The Contractor shall adjust the Work Plan in accordance with his Community Health and Safety Plan, taking into account the communicated needs of the local population.

MAIN ENVIRONMENTAL IMPACTS AND SENSITIVE RECEPTORS Before the start of the construction works, the municipality shall prepare and announce Information Note/Press via local TV, radio and municipal web page, in order to inform the general public for the duration and type of the project activities. The available public Complaints Dropbox within the municipal administration building shall also be used to initiate feedback from the community. Prior to starting with the activities, the Traffic Management Plan should be prepared in order to prevent adverse environmental impacts. Considering that this road is an alternative road that will directly connect the settlements of Prisojnica Adzievci, there will be no need for a traffic ban. Population will use the existing roads connected directly to the regional road. Performance of the works will not contribute to the interruption or change of the traffic. In this line, Contractor must provide marking, securing and application of good construction practice in order to minimize the possible risk of injures of workers and local population/users of the road. The Occupational Health and Safety (OH&S) Plan should be prepared by the Contractor, approved (before starting with activities) and implemented during all project phases in order to minimize the adverse health and safety impacts of the workers and the population living near the construction site. This plan should include mitigation measures such as providing adequate fencing, marking and putting signs on the construction site, mandatory usage of personal protective equipment for workers in accordance with the good construction practice. 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 MSIP/PIU. Official site for information related to COVID-19 on national level is www.koronavirus.mk .

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Increased noise and air emission are expected during all phases of the project. Operation of construction equipment and machinery and presence of worker on site will produce high noise level during preparatory and construction phase, while in the operational phase increased noise will be not a result of traffic jam, because this local road is not connected to the local roads leading to the regional road of the two villages Prisojnica and Adzievci. Taking into account the surrounding of the local road under construction and the requirements of the national legislation on noise limits, the maximum allowed noise level of project location should be 45 dBA for night and 55 dBA for day and evening (area with II degree of noise protection). Air emissions (dust, exhausted gases) are also in link with operation of construction machinery during excavation work and traffic jam in operational phase. Inert and mixed municipal waste that will be generated in small quantities on the construction site will be collected and finally disposed of at the nearest landfill site as assigned by Decision of the Municipal Council. The vegetation biomass shall be chopped and placed in a layer along the slopes of the road, covered with humus and soil excavated from the preparatory phase and finally with grass; thus, the vegetation biomass will serve as humus in the future period. The quantities of excavated old asphalt shall be crushed and used as base layer on the village streets at a distance of 200-300 m from the construction site. Contractor is responsible for proper waste management that includes preparation and implementation of the Waste Management Plan (identification of possible waste types and quantities, waste categorization according List of waste –Official Gazette of RM No.100/05, proper storage and handling and responsible authorities for collection of different waste types). There is a municipal Public Enterprise JKPD Mavrovo that will be in charge to communicate with the Contractor for timely and proper waste management and to prepare the Annual Waste Report including the waste quantities and type of waste generated during this project.

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Table 2: The estimated values of generated waste streams (according to the EIA Elaborate and BoQ). Type of waste Number from the Amount of waste Method of waste Name of the legal List of waste types per year treatment entity that (Official Gazette expressed in tons (processing, handles the waste of the Republic of or liters storage, and location Macedonia No. handover, where the waste 100/05) disposal, etc.) is disposed of (landfill) 1. Bituminous 17 03 02 58 м2 crushing and The contractor will mixtures not disposal on the realize the works mentioned in local dirt streets in 17 03 01 the villages 2. Bituminous 17 03 02 18m crushing and The contractor will mixtures not disposal on the realize the works mentioned in local dirt streets in 17 03 01 the villages 3. Crushed stone 17 05 04 25 m3 Will be assembled The contractor will (rock) not directly in the realize the works mentioned in dump truck- 17 05 03 contractor 4. Excavated soil not 17 05 06 сса 1923 м3 Use as material The contractor will mentioned in for embankment realize the works 17 05 05 or landfill disposal 5. Waste from 20 02 01 Along 483m Will be chopped The contractor will greenery, shrubs, Insignificant and disposed as a realize the works branches, roots, quantities that biomass substrate trees will be for humus determined before the start of the activity Possible water pollution may occur because of improper waste management, especially due to the proximity (3 km) of the river . According to the Regulation for classification of waterways, lakes, reservoirs and groundwater - "Official Gazette of RM" no. 18/99, the river Radika belongs to class II (low polluted water streams with mesotrophic status, can be used for sports and recreation, etc.) The road to be rehabilitated under this project is located in close vicinity of small Adjievska River (1 km2) and Radika River (1,5 km). Both of them are right tributaries to Crn Drim River which represents the largest river basin in western part of . The quality class of the waters in both rivers, according the Decree for categorization of watercourses, lakes, accumulations and groundwaters ("Official Gazette of RM" No. 18/99) is of II category. The Decree for classification of waters ("Official Gazette of RM" No. 18/99), defines II class as water with mesotrophic status, low level of organic load and high degree of auto purification, which can be used for breeding of fish stock and sport and recreational purposes without its prior treatment, as well as for drinking and food processing industry with previous treatment. In order to prevent any further pollution and decrease of the water quality, it is strictly forbidden to deposit generated waste during the implementation of the project activities in the riverbeds. As mention before, the project location (villages Prisojnica and Adjievci) is located within the boundaries of the National Park “Mavrovo”, as presented in Figure 3. The Monument of Nature “Cave Slatinski Izvor” is located in the wider surrounding of the project location (distance of 90 km by road).

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The territory of the National Park Mavrovo is inhabited by 8,618 citizens. Natural protected areas Тhe Mavrovo Protected Area was originally proclaimed by the People’s Assembly on its session of April 18, 1949 under the Act of Proclamation which says: “Act for Proclamation of the Forest Area around the Mavrovo Field as National Park” (Official Gazette of the People’s Republic of Macedonia No. 10, from May 05, 1949). According to this Law, the National Park Mavrovo was proclaimed “on account of outstanding natural beauties, historical and scientific values of the forests and the forest land around Mavrovo Field”. On April 03, 1952, the boundaries of the National Park Mavrovo have been significantly increased for six times, i.e. from 11,750 ha to 73,088 ha, by adoption of the amendments to the Law on Proclamation of the Forest Area around the Mavrovo Field as National Park (Official Gazette of the Socialist Federal Republic of Yugoslavia No. 23 from April 23, 1952).

Figure 5: Map of wider area of the project location Within the boundaries of the National Park Mavrovo the following 37 settlements are included: Mavrovo, Leunovo, Nikiforovo, Kichinitsa, Vrben, Bogdevo, Krakornitsa, Brodets, Zhuzhnje, Nichpur, , Bibay, Nivishte, Grekay, Ribnitsa, Tanushe, Vrbyani, Zhirovnitsa, Vidusha, Trebishte, Bitushe, , Rostushe, Adzievci, Prisojnica, Skudrinje, Sushitsa, , Tresonche, Rosoki, Seltse, Janche, Galichnik, Boletin, Sentse, Volkovija and Belichitsa. As far as vegetation and wildlife inhabiting the National Park, the total number of hitherto ascertained species of vascular plants for the territory of National Park Mavrovo is encircled to 1,435 species, 404 of which are included in the category of medical plants. Besides the high level of species diversity, another striking feature of the flora in the National Park is its high degree of endemism, represented by 13 endemic species, as well as the

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presence of rare plant species, 29 of which on national level, only on the territory of the National Park Mavrovo have been recorded. The most striking feature of Biodiversity in the National Park Mavrovo is its high degree of species diversity. Floral and faunal elements with Ponto-Mediterranean (Eastern- Mediterranean) biogeographic origin are dominant, followed by the Complex of species with Boreal (Siberian) and Oreo-Tundral (Arctic-Mountain) origin, of which the Palaeo-Mountain (relict-mountain) sub-complex is more frequent and abundant in comparison with species of the sub-complex with of Arctic (tundral) origin. The Complex of species with Eremial (steppes, semi deserts/deserts) origin is less represented. The assessment and evaluation of Biodiversity are made on the basis of numerous representative taxonomic groups of flora and fauna that include in total 3,757 taxa (species and subspecies) represented by: 78 algae, 661 fungi, 151 lichens, 1,473 vascular plants, 1,172 invertebrates, 8 fishes, 11 amphibians, 24 reptiles, 129 birds and 50 mammal species. Habitats Directive (Directive 92/43/EEC) provides Legal Protection under Annex II for 20 species (eight species of invertebrates, two species of amphibians, three species of reptiles and seven species of mammals), which means that the species are of community interest whose conservation requires designation of special areas of conservation. Habitats Directive (Directive 92/43/EEC) also provides Strict Legal Protection under Annex IV for additional 45 species (one vascular plant, seven invertebrates, six amphibians, 18 reptiles, and 13 species of mammals). The Wild Birds Directive-WBD (Directive 2009/147/EC) of the European Parliament and the Council of the European Union provides Legal Protection for 19 species of birds (listed in Annex I), through the establishment of a coherent network of Special Protection Areas (SPAs) comprising all the most suitable territories for these species. Seven species listed in Annex I and one species listed in Annex II of the WBD are included in Category VU (Vulnerable) concerning the European Threat Status of birds (ETS). Two species of birds are included in the Category SPEC1 and seven species in the Category SPEC2 in accordance with the European Conservation Status of Birds (SPECs). The IUCN Red List of Globally Threatened Species (2011) includes five threatened species, all in the Category VU (Vulnerable), of which three species of invertebrates: Astacus astacus, Austropotamobius torrentium and Parnassius apollo; one species of reptiles: Vipera ursinii; and one species of mammals: Dinaromys bogdanovi. The IUCN European Red List of Butterflies (2010) includes two threatened species, of which the species Phengaris arion is included in the Category EN (Endangered), while the species Euphydryas maturna in the Category VU (Vulnerable). The IUCN European Red List of Reptiles (2009) includes one threatened species: Vipera ursinii in the Category VU (Vulnerable). Within the boundaries of the Park, presence of 115 endemic taxa (species and subspecies) has been ascertained, of which: 13 vascular plants, 86 invertebrates, three fishes, three amphibians, five reptiles and 5 mammals. Of the total number of 115 endemic taxa, 58 taxa are local/national endemics, while the remainder 57 taxa are Balkan endemics. The cultural monuments located within the borders of the National Park Mavrovo include: • Saint Jovan Bigorski Monastery (St. John the Forerunner Bigorski Monastery): the St. Jovan Bigorski monastery consists of a monastery church dedicated to St. John the Baptist, ossuary located next to the church, “seymen” defense tower, the complex of

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monastery lodgings, and the newly built guest lodgings. (15 km from the location of the Prisojnica-Adzievci road) • Elenov Skok Bridge: the bridge was built on the river Mala Reka (7 km from the location of the Prisojnica-Adzievci road) • The Old Mosque in the village of Rostushe (10 km from the location of the Prisojnica- Adzievci road) • Archaeological Site St. Nicholas, a necropolis from the Late Middle Ages (44 km from the location of the Prisojnica-Adzievci road). The Monument of Nature “Cave Slatinski Izvor” is located in the wider surrounding of the project location (distance of 90 km). The cave is located in the Porece basin, on mountain Pesjak in the lower riverbed of Slatinska Reka. Administratively, the protected area belongs to Municipality of Makedonski Brod. Beside the main cave Slatinski Izvor, within the protected area there are 4 more caves: Gorna Slatinska, Slatinska II, Ovcharska Cave and Puralo. All of them are evolved in the oldest rocks on Earth. Due to its speleological, hydrogeological and biospeleological characteristics, the cave is on the tentative list of UNESCOs since 24th of June 2004. Additionally, is declared for Natural Monument by the Assembly of the Republic of Macedonia on February 22, 2011 with the Law for declaring Natural Monument Slatinski Izvor (Official Gazette No. 23/11). Because of the specific characteristics and rich natural values of the wider area of the project location, strict mitigation measures shall apply with permanent monitoring of the local and state relevant institutions, aiming to prevent from any adverse environmental impact. The project activities will focus on It may be concluded that with strict construction of an existing dirt road (as implementation of prompt mitigation presented on Figure 6), without its widening measures as proposed in the EMP below, the nor extending. There will be no need for project activities will not cause negative clearance of trees along the way. The impact over the natural ecosystem of the NP, villages of Prisojnica and Adzievci as well as nor the biodiversity. In line with this, the targeted road are located in the positive opinion from the NP Management Ameliorative Zone (II) of the National Park Structure has been obtained. “Mavrovo” according the existing Spatial Plan for the NP Mavrovo, adopted in 1988. With the new EU approximation processes of the country, several years ago, the NP “Mavrovo” developed new Management Plan for the NP, in line with the requirements of the Law for protection of nature which is harmonised with the relevant nature related EU Directives, but it still has not been adopted by the Government. In the new Draft Management Plan, the villages Prisojnica and Adzievci belong to the Zone for Sustainable Use (III). In these policy documents, both Ameliorative and Zone for Sustainable Use allow for activities for sustainable living of the local population, Figure 6 the existing condition of the dirt including rehabilitation of the existing road. road

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Environmental impacts are long term and local (waste generation, noise level and air pollution) with minor significance. In any case, no higher levels of noise and emissions in the air are expect, as well as the generation of waste from the current condition because increasing of the number of vehicles and people using the road is not expected. With realization of the project, overall, positive environmental and OH&S impacts are expected. Good communication between Contractor, Supervisor, municipal staff, Environmental Inspector, Communal Inspector, and other relevant persons from Municipality of Mavrovo and Rostushe is essential for providing continuous performance of the project activities and successful completion of overall project. The regular meetings, discussion on any problems related to environmental issues, community safety or OH&S issues are essential. The main responsibilities of the Contractor are to follow the proposed environmental measures provided in the EIA Report, approved by the Ministry of Environment and Physical Planning on October 14, 2020 with Decision for EIA Report approval No. UP1-11/4 1302/2020 and in the following EMPs. Supervisor should perform the monitoring of the implementation of the proposed environmental measures. The detailed relevant Environmental Mitigation Plan and Monitoring Plan for the project are given in the following Tables A and B.

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А. ENVIRONMENTAL MITIGATION PLAN

Potential impact Impact scale Proposed mitigation measures Responsibility Project activity: Preparatory activities and marking out the route for construction of local road of Prisojnica and Adzievci Possible adverse social and Local/within the ➢ Meeting with local community; Preparation, approval and implementation of Traffic Management Plan together • Contractor health impacts to the municipality with the municipal staff and local inhabitants of Prisojnica and Adzievci Village prior to the start up of activities; • Supervisor population, drivers and Mavrovo and ➢ Provision of the information via local TV, newspaper or radio, web site about the construction activities – start and • Municipality staff workers due to: Rostushe finish of work for each day, duration of work. The information should also be posted on the local community’s (Construction • Lack of ensured safety short term during notice boards, local markets, etc.; Inspector/Environ measures at the start of the construction mental Inspector) construction works due to short o Setting up a Dropbox for complaints and praise in a publicly accessible place in the municipal • Injury passing near by length (520 m) of administrative building of Mavrovo and Rostusha and introducing a mechanism for feedback and the construction sites the road response. • Not compliance with ➢ Preparation, approval and implementation of the Occupational Health & Safety Plan for the workers including strict OH& S standards and measures for prevention of COVID -19, which will contain a section on Community Health & Safety; work procedure ➢ Application of good construction practice for marking out the construction site including: • Inappropriate public o Ensure the appropriate marking out the construction site access within the district o Marking out the construction material near the street o Warning tapes and signage need to be provided o Forbidden of entrance of unemployed persons within the warning tapes o Community and Worker’s OH&S measures should be applied (first aid, protective clothes for the workers, appropriate machines and tools) o The street and surrounding area near the houses should be kept clean o Machines should be handled only by experienced and trained personnel, thus reducing the risk of accidents o Constant presence of firefighting devices should be ensured in case of fire or other damage; o Flammable liquids may be placed and kept exclusively in vessels constructed for that purpose; o Larger quantities of flammable liquids should not be kept on the site along the construct street; o All workers must be familiar with the fire hazards and fire protection measures and must be trained to handle fire extinguishers, hydrants and other devices used for extinguishing fires; o Devices, equipment and fire extinguishers should be always functional, so in case of need they could be used rapidly and efficiently; o The portable toilet should be placed on the construction site Project activity: Construction of the local road of Prisojnica and Adzievci

Potential impact Impact scale Proposed mitigation measures Responsibility Possible impacts on landscape Local/within the ➢ Minimization of the construction area as much as possible (carefully planning and design of the project activity • Contractor and visual aspects villages according the Traffic Management Plan for a certain period of time) • Supervisor Prisojnica and ➢ In case tree vegetation needs to be extracted, a Vegetation Restoration Plan shall be done for the locations where • Municipality staff Adzievci these trees shall be planted (appropriate selection of the sites / soil landfill, number and types of trees, period for (Environmental short term /minor planting and watering in the first 3 months). Species of trees must be selected based on the species that are part of Inspector) the natural ecosystem nearby, thus ensuring complete remediation of the natural habitat. Planting ratio is 1:3 for excavated: planted tree. ➢ Fully clean up of the construction site immediately after accomplishment of construction activities section by section ➢ Collection of the generated waste on daily basis, selection of waste, transportation and final disposal on appropriate places (according the type of waste – more details under Waste management issue) Possible emissions by Local/within the ➢ Construction site, transportation routes and materials handling sites should be water-sprayed on dry and windy days; • Contractor transportation vehicles and villages ➢ Construction materials should be stored in appropriate places covered to minimize dust; • Supervisor impact on air quality due to: Prisojnica and ➢ Vehicle loads likely to emit dust need to be covered • Municipality staff - gases emissions of dust- Adzievci ➢ Usage of protective masks for the workers if the dust seems to be appeared (Environmental suspended particulates short term /minor Inspector) Possible noise disturbance as a Local/within the ➢ The level of noise should not exceed more than 55 dB during the day and evening and below 45 dB during the night • Contractor result of outdoor equipment villages ➢ The construction work should be not permitted during the nights, the operations on site shall be restricted to the • Supervisor usage and transportation Prisojnica and hours 7.00 -19.00 • Municipality staff vehicles driving around the site Adzievci ➢ The Contractor should use outdoor equipment / construction machinery and equipment, that possess Statement of (Environmental short term /minor Conformity for generation of noise lower than 102 dB (A); Inspector) Possible impact on water Local / along the ➢ Minimize storage or disposal of substances harmful to water courses (e.g. fuels for construction machinery, inert • Contractor courses – Adzievska and riverbeds waste) on the reconstruction site at the local road between Prisojnica and Adzievci villages; • Supervisor Radika rivers in Municipality short term/ ➢ Organization of proper storage, handling and daily refilling the hazardous materials • Environmental of Mavrovo and Rostusha major ➢ The road should be kept clean and tidy to prevent the build-up of oil and dirt that may be washed into a water course Inspector or drain during heavy rainfall. Possible adverse Local/within the ➢ Identification of the different waste types at the construction site (soil, sand, road surfacing, bottles, food, etc. • Contractor environmental impact and villages ➢ Classification of waste according the national List of Waste (Official Gazette no.100/05) • Supervisor health effects could be Prisojnica and ➢ The main waste would be classified under the Waste Chapter 17 “Construction and demolition wastes with the waste • Municipality staff occurred as a result of Adzievci code 17 05 06 –Excavated soil, , 17 05 04 - Excavated soil and stones (rock) and 17 03 02 - Old asphalt. (Communal generation of the different short term /minor ➢ Small amount of solid municipal waste could be found (food, beverages), as well as packaging waste (paper, bottles, Inspector/ waste streams glass, etc. Environmental ➢ Transportation and final disposal of the communal waste by the Public Communal Enterprise “JKPD Mavrovo. Inspector) The inappropriate waste ➢ Transportation and final disposal of the inert waste (crushed old asphalt and stones/rocks) by the Contractor to the • JKPD Mavrovo management and not in time local dirt streets in villages Prisojnica and Adzievci at a distance of 200-300 m from the project site. collection and transportation of ➢ Fulfillment of the Annual Report for non-hazardous waste management by the Mayor of Municipality of Mavrovo waste streams and Rostushe and reporting to the Ministry of Environment and Physical Planning ➢ The construction waste should be promptly removed from the site, should be re-used if it is possible ➢ Possible hazardous waste (motor oils, vehicle fuels) should be collected separately and authorized collector and transporter should be sub-contracted to transport and finally dispose the hazardous waste • No environmental impacts are expected during the Operational phase

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B.MONITORING PLAN What Where How When Why Cost Responsibility parameter is to be monitored? is the parameter is the parameter to is the parameter to be is the parameter to be Const Opera Construction of the Local road Operatio to be be monitored? monitored (frequency of monitored? ns of the ructio tions for Prisojnica- Adzievci street monitored? measurement)? n Project stage: Start up of the construction work (marking out the construction site) Traffic Management Plan On the Visual check and At the beginning of the To ensure safety and easy re- Contractor Supervisor prepared construction reporting to the project activities (before route of the traffic across Construction inspector at the site Municipality staff the works start) around roads/streets Municipality of Mavrovo and Rostushe Prepared and published At the Information/ At the beginning of the To inform the locals, about Municipality staff/ Construction information for performance municipality Press release project activities (before planned construction works inspector at the Municipality of of works public relation prepared and the works start) Mavrovo and Rostushe office announced Safety traffic flow around At the spot Visual monitoring During the project To ensure a coordinated flow Municipality staff/ Communal Road implementation of traffic within the settlements inspector at the Municipality of and the surrounding area Mavrovo and Rostushe The safety protection On the Visual checks At the beginning of the To prevent community health Contractor /Supervisor measures applied for the construction construction work (first and safety risks – mechanical Construction inspector at the residents of municipality site day) injuries due to the very urban Municipality of Mavrovo and Mavrovo and Rostushe Every working day area Rostushe during the project activities The occupational health and On the Visual check Before start of the project To avoid occupational and Contractor Supervisor safety measures applied for construction activities and each of safety risks (injuries) Construction Inspector at the the workers. Application of site working day Municipality of Mavrovo and preventive measures against Rostushe COVID-19 by all workers on the site Project stage: Construction of the local road of Prisojnica and Adzievci Separated hazardous and non- On the Visual monitoring During the project To avoid hazardous waste Contractor Supervisor hazardous waste construction and reporting activities disposal at the nearest landfill. Municipal staff (Communal site inspector and Environmental Inspector) Fulfilled Annual Report for Local self- Review of After the accomplishment To improve the waste Mayor /Director of the JKPD transportation and disposal of government documentation – the task of collection, management on local and Mavrovo waste administration Identification waste transportation of waste national level List on daily/monthly basis To be in compliance with national legal requirements Exposure the citizens to noise On the site Review the noise Before the beginning of To protect the workers against Contractor

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What Where How When Why Cost Responsibility parameter is to be monitored? is the parameter is the parameter to is the parameter to be is the parameter to be Const Opera Construction of the Local road Operatio to be be monitored? monitored (frequency of monitored? ns of the ructio tions for Prisojnica- Adzievci street monitored? measurement)? n disturbance from vehicle level technical the work (first day) exposure to loud noise taking Supervisor machine and electric tools specifications of into account the technical Environmental inspector/ the used vehicle specifications of the equipment Municipality of Mavrovo and mechanization and and time duration of the work Rostushe equipment for their outside use outside Nature / land remediation On/around the Review of During the works and at To minimize/prevent land Contractor construction site documentation – the end degradation and to ensure Supervisor Contractor’s excavated biomass proper remediation process of Environmental inspector/ documentation treatment; supply the natural habitat Municipality of Mavrovo and and planting of new Rostushe vegetation, Visual checks of the planted vegetation Visual checks of the disposed excavated biomass Disposal of the waste streams Near the project Visual check if During the construction To ensure good status of water Contractor (solid and liquid) near the areas waste is disposed period (once per week) quality Supervisor River Radika and Adzievska near the River Environmental inspector/ as potential pollution of good Radika and Municipality of Mavrovo and ecological status of water Adzievska Rostushe course Noise level On the site Monitoring of the On regularly basis during To monitor if the noise level is Contractor Company authorized noise levels the work, through site above/or below the acceptance to performed noise levels dB (А) with visits, in accordance with noise level for that type of area measurements sub-contracted by appropriate the national legislation, in - II exposure area for noise the Contractor – Bidder monitoring devices case of public complaints protection as residential district (55 dB (A) during the day time)

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IV. SOCIAL IMPACT

SOCIOLOGICAL STUDY The project envisages construction of a local municipal road where the village Prisojnica will be connected with the village Prisojnica. The local road is not asphalted road and through which the villagers of the village Prisojnica and Adzievci pass every day and use it. The villages of Prisojnica and Adzievci are mountain villages and are located at an altitude of 682 m and 763 m. This study is based upon the methodological concept of World Bank summarized as Five Entry Points, One Result. This concept requires exploration of five components: social diversity and gender, institutions, rules and behaviour, stakeholders, participation and social risk. The assessment anticipated desk and onside research, holding interview and focus group and constant communication with municipal representatives to get available information on interest and attitudes of stakeholders. The interviews and communications were organized with 8 municipal officials: Mayor, representative from the financial sector, representative from the municipal administration and 5 counselors from different political sides (3 from the ruling political party and 2 from the political party in opposition). The counselors were from different settlements within municipality Mavrovo and Rostushe. Between the interviewers, there were 2 women from the ruling political party. Taking their delegation and duties into account, the above-mentioned officials proved to be useful interpreters of the opinions of the residents since being their representatives and having frequent meetings with them, they are very familiar with the needs, attitudes and opinions of the local population and the project. The answers from the interviews are very indicative a very good insight in the local processes to the project. On March 7, 2020 in v. Prisojnica meeting with 17 people (thirteen men and four women) who lives in settlement of Prisojniaca and Adzievci was organized to consult citizens about their current problems and priorities and proposed road construction project. They all presented their opinions about the role and influence of various stakeholders in the process of decision making relevant to the project, as well as the level of information, capacities and readiness of the residents to support the project. After the urban audit for the Municipality of Mavrovo Rostushe was prepared and approved, with a decision of the Municipal Council it was decided to invest a grant for poor areas / social inclusion in the construction of a local road which connect village Prisojnica and village Adzievci which are settlements in the municipality which are connected by the dirt road. This decision was made unanimously. In municipality Mavrovo and Rostushe, the local road subject to this appraisal, there are residents from different social groups. There are different age groups, including children, youths and elderly people. Most of the male population in the municipality go to work abroad while the female population, their children and elderly people stay in their native settlements. The emigrated residents come back and invest in their birthplace by construction of new and beautiful houses and opening new businesses. The local inhabitants of the settlement Prisojnica are 550 and in Adzievci 370 of which 400 are men and 520 are women.

The local inhabitants of the settlements Adzievci and Prisojnica within municipality Mavrovo and Rostushe use the local road subject to this appraisal for communication with the center of the municipality, the settlement of Mavrovo and Rostushe, where many institutions are located, such as: municipality building, primary and secondary school, health center, policy station and post office. Especially women with small children and elderly people need fast transport to hospital and other public institutions. They have organized transport from and to school, but face transportation problems during the winter periods or during rainy days. Sometimes they are missing classes because the road is impassable. Therefore, the municipality has a problem to organize the transport in the winter period. The main municipal priority is to improve the quality of life through economic development and employment of the local population, but also to improve the infrastructure, through construction of streets, sewerage network, storm water system and water supply services. According to the population that lives and uses the location that is subject to this appraisal, the existing dirt road is in very bad condition with many holes and mud and on rainy days, the road is impassable. The councilors of the community confirm the construction of the road subject to this appraisal as a municipality priority that was already emphasized by the overall population that lives in the local settlements. The construction of the road will be beneficial for the safety of women with children, schoolchildren, elderly people and residents with special needs, but also creating favorable conditions for foreign investors to come and work in the municipality and for agricultural and rural tourism development, which additionally will improve the economic situation. According to the interviewees’ opinions, the selected contractor must provide guarantees for the realization of the project. The municipal Council might request information from the Mayor in reference to the project’s realization at any time. There are 35 employees in the Municipality administration, of who 10 women and 25 man. In addition, based on experience with other similar projects and the overall existing streets in the municipality Mavrovo and Rostushe, the municipal administration has the capacity to maintain the realization of the project and the road after project implementation. In that way, the municipality has an administration that has experience to monitor the progress of the project. Even there is one Communal State Enterprise (CSE) in the municipality, the municipality itself will be responsible for maintenance of the road. The CSE is responsible for water supply and sewage, while for winter maintenance and restoration of the road structure the municipality use an outsourcing company. The municipality provides regular maintenance to the local roads in length of 70 km. Presently, municipality covers the existing dirt road subject to this appraisal with crushed stone and sand. However, every new rain provides new damages of the dirt road, including halls, erosion and the road is unsuitable for normal traffic and everyday communication of the local residents. This is a financial burden for the municipality budget. The proposed technical solution for construction of the local road should provide long-term improvement of the local road, which will reduce the costs for its maintenance. The main occupation of the inhabitants of the settlements Prisojnica and Adzievci is agriculture and livestock. Livestock farmers use the local road. The residents have submitted their complaints about the current situation in the road that is subject to this appraisal, which again implies that the residents are fully in favor of the project. The residents are fully informed about this project since it has been recognized as a priority in the Urban Audit and has been discussed with local community.

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High social risk for carrying out the project cannot be perceived. In municipality Mavrovo and Rostushe the municipal council organizes meetings to discuss the priorities of municipality development and their realization. In spite of their political orientation, the councilors cannot endanger the realization of the project. As elaborated earlier, the councilors have already expressed their support for the project. The Municipality of Mavrovo and Rostushe officially communicates with the citizens in several ways. The most effective communication mechanism is the official website of the Municipality of Mavrovo and Rostushe and the official e-mail addresses of the departments and heads of the special units of the local administration, where citizens receive information, serve questions, publish daily, and receive answers. In addition, the municipality uses the social network Facebook, where the municipality often promotes, publishes news and shares information. The mayor also has the practice of holding individual or group meetings with citizens. Meetings are hold every Tuesday with citizens who had scheduled an appointment with the mayor. Occasionally, the municipality issues an official newsletter announcing all- important activities, projects, meetings and decisions. The municipality has a well-established practice of civic engagement activities in monitoring the project implementation process. This includes setting up feedback and annual public consultation with published results. These participatory practices provide an opportunity for residents to influence needed changes if they occur during project implementation if needed. The municipality will take all possible actions to protect the investment. The project is expected to affect the overall well- being of the municipality, and the residents are expected to provide full support during the implementation of the project. OTHER ISSUES OF CONSIDERATIONS The construction of the local road subject to this appraisal is expect to improve the overall living conditions in municipality Mavrovo and Rostushe. The implementation of the project is expected to create savings in the municipal budget for regular maintenances on the long- term basis. The implementation of the project is also expecting to improve local public finances and reallocate them to other municipal services. Moreover, increased property value because of the improved infrastructure will result in growth of revenues from property taxes. RESETTLEMENT ISSUES The project is not a subject to resettlement issues because it involves construction of a local road on the existing dirt road between the settlements Prisojnica and Adzievci in municipality Mavrovo and Rostushe. The existing road is located on a municipality land. With this project for road construction, no permanent land acquisition is expected, as the existing road (and its foreseen width extension) is on municipality land (lend owned by the Republic of North Macedonia). The construction of the road will improve the transport and will allow economic development of the municipality through opening new and development of the existing local small businesses and tourism development. The increased number of businesses will open new jobs for the local population and contribute to the employment of young people. CONCLUSION ON THE PROJECT POTENTIEL SUCES AND RECOMMANDATION The main drivers of the change that will bring about prosperity are the municipal authorities (Mayors and councilors) who have initiated and made the decision for seeking funding from the World Bank funded MSIP 2 poverty social inclusion grant. Since the problem of bad infrastructure exists for many years it has been publicly declared and discussed on few occasions. Direct beneficiaries of the project are 920, the residents who live in the settlements Prisojnica 550 and Adzievci 370 and there are indirect beneficiaries (200) that are people

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who will use the road for relaxation and access to the two famous tourist locations Kutel and Kala. Part of the vulnerable and poor groups identified by the municipality, as well as kids and school children have special needs considering paved road that will allow easier and faster access to the relevant institutions (hospitals, schools, administrative offices, post office) in the central settlement of Mavrovo and Rostushe and other municipalities. Gender balance needs to be incorporate in the strategic approach of the municipality and public communal enterprise towards all development efforts. High socials risks for carrying out this project cannot be perceived. There are no issues connected with ethnic distribution of population or inter-local community rivalry: the action will allow benefits for all nationalities, it will cover the majority of residents and there are no land ownership concerns that need to be resolved.

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V. FINANCIAL DATA

The total estimated investment cost is MKD 2,887,808 (Euro 46,956) including VAT where MKD 216.1220 (Euro 3,514) are estimated as contingency to reach the total available grant in the amount of MKD 3,103,930 (Euro 50,470). The Municipality Council adopted Decision no. 08-142/16 dated May 14, 2020 that establishes realization of a project for ”Construction of local road Prisojnica - Adzievci” as priority for the Municipality of Mavrovo and Rostushe that will be financed with MSIP2 poverty and social inclusion grant funds in amount of MKD 3,103,930. The basic project design presents division of investment costs into the following categories: preparatory works, earth works, upper layer, drainage. Table 3: Distribution of investment costs Type of works Net value VAT Total with VAT Preparatory work 48,695 8,765 57,460 Earth works 402,508 72,451 474,959 Top layer 1.996,092 359,297 2.355,389 Total: 2.447,295 440,513 2.887,808

It is assumed that construction works will last approximately 3 months, what means that all the above-mentioned investment costs will be carried out during 2021.

Table 4 Project value and financing structure Construction of the local road from Prosojnica Total (denars) Total (euros) to the village of Adzievci (1 eur = 61.5mkd) Project value 2,887,808 46,956 contingency 216,122 3,514 Total financed with MSIP grant 3,103,930 50,470

Social and economic benefits will be achieved with building the local road for the villages Prisojnica and Adzievci. Safe traffic will be provided for all traffic participants, the transport of goods and services as well as agricultural products to the market and beyond, the transport of students to school etc. All inhabitants from both villages will have faster and easier access to the health care centers, post office, administrative buildings, high school located in the center of the municipality i,e the village Rostushe.

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