Municipality Mavrovo and Rostushe PROJECT APPRAISAL DOCUMENT “Construction of local road Prisojnica- 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 Debar 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%, Albanians 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. Skudrinje”. 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 Vrben, 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 2 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 3 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. 4 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.