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Municipality of Veles Project Appraisal Document for Construction of City

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Municipality of Veles Project Appraisal Document for Construction of City MUNICIPALITY OF VELES World Bank PROJECT APPRAISAL DOCUMENT FOR CONSTRUCTION OF CITY MARKET VELES Municipal Services Project Improvement Municipal Skopje April 2021 Table of Content Summary ....................................................................................................................................................... 8 1 Project description .............................................................................................................................. 11 1.1 General Information on the municipality of Veles ..................................................................... 12 1.2 Demographic and economic profile ............................................................................................ 13 1.2.1 Demographic table .............................................................................................................. 13 1.2.2 Gender and age ................................................................................................................... 14 1.2.3 Minority repartition ............................................................................................................ 15 1.2.4 Economy and employment ................................................................................................. 15 1.2.5 Relevant extracts of the municipality’s documents about the project .............................. 17 1.3 General description of the Project .............................................................................................. 17 1.3.1 General description ............................................................................................................. 17 1.3.2 Area concerned by the project ........................................................................................... 17 1.3.3 Current situation ................................................................................................................. 18 1.3.4 Project goals ........................................................................................................................ 21 1.3.5 Project beneficiaries ........................................................................................................... 21 1.3.6 Knowledge and experience of the municipality of Veles .................................................... 21 1.3.7 Conclusions ......................................................................................................................... 23 2 Social assessment ............................................................................................................................... 24 2.1 Social study ................................................................................................................................. 25 2.1.1 Social diversity and gender ................................................................................................. 25 2.1.2 Institutions, rules, and behavior ......................................................................................... 26 2.1.3 Stakeholders........................................................................................................................ 27 2.1.4 Citizens engagement ........................................................................................................... 27 2.1.5 Social risks ........................................................................................................................... 29 2.2 Other fields of consideration ...................................................................................................... 29 2.3 Resettlement issues .................................................................................................................... 29 2.4 Conclusion on the project potential success and recommendation .......................................... 30 3 Environmental Impact ......................................................................................................................... 31 3.1 LOCATION OF PROJECT SITE ............................................................................................................... 32 3.2 MAIN PROJECT ACTIVITIES WITH ENVIRONMENTAL IMPACT ..................................................................... 34 3.3 MAIN ENVIRONMENTAL IMPACT AND SENSITIVE RECEPTORS .................................................................... 34 3.4 ENVIRONMENTAL MITIGATION PLAN FOR THE PROJECT: CONSTRUCTION OF CITY MARKET AREA IN MUNICIPALITY OF VELES .................................................................................................................................................... 38 2 3.5 ENVIRONMENTAL MONITORING PLAN FOR THE PROJECT: CONSTRUCTION OF CITY MARKET AREA IN MUNICIPALITY OF VELES .................................................................................................................................................... 41 4 Technical solutions .............................................................................................................................. 47 4.1 Description .................................................................................................................................. 48 4.1.1 Structure of the construction.............................................................................................. 51 4.1.2 Walls .................................................................................................................................... 54 4.1.3 Floors ................................................................................................................................... 54 4.1.4 Doors and windows ............................................................................................................. 55 4.1.5 Water supply and sewerage ............................................................................................... 55 4.1.6 Electrical installations ......................................................................................................... 55 4.2 Analysis and evaluation .............................................................................................................. 55 4.3 Conclusions and recommendations ............................................................................................ 55 4.4 Alternative solutions ................................................................................................................... 56 5 Financial analysis ................................................................................................................................. 57 5.1 Project cost ................................................................................................................................. 58 5.2 Credit capacity ............................................................................................................................ 60 5.3 Loan repayment .......................................................................................................................... 61 5.4 Review of the municipal account ................................................................................................ 62 5.5 Review of accounts of the Municipal Public Enterprise “Derven” .............................................. 65 5.6 Analysis of the financial feasibility of the project ............................................................................. 67 5.6.1 Time horizon .............................................................................................................................. 67 5.6.2 Limitations of the analysis ......................................................................................................... 67 5.6.3 Initial investment ....................................................................................................................... 67 5.6.4 Inflation ...................................................................................................................................... 67 5.6.5 Discount rate .............................................................................................................................. 67 5.6.7 Projection of operating cash flows ............................................................................................ 68 5.6.8 Projection of Benefits ................................................................................................................ 68 5.6.9 Projection of Costs ..................................................................................................................... 69 5.6.10 Sensitivity analysis ................................................................................................................... 71 Conclusions ............................................................................................................................................. 71 6 Cost-benefit analysis ........................................................................................................................... 72 6.1 General information.......................................................................................................................... 73 6.1.1 Framework of the analysis ......................................................................................................... 73 6.1.2 Limitations and constraints of the study ................................................................................... 73 3 6.1.3 Scope .........................................................................................................................................
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