Benefits of Compliance with Environmental Acquis - Final Report

Home , Kumanovska reka, Lake Ohrid, Mali Vlaj, Salmo ohridanus

ARCADIS ECOLAS N.V. IEEP Roderveldlaan 3 Quai au Foin, 55 2600 Berchem 1000 Brussels Belgium Belgium Tel: +32 3 328.62.86 Tel: + 32 (0) 2 738 74 82 Fax: +32 3 328.62.87 Fax: + 32 (0) 2 732 40 04 http://www.arcadisecolas.be http://www.ieep.eu

Contract N° 07010406/2006/441662/MAR/E3

Task 2 - Benefits for the former

Yugoslav Republic of Macedonia and

other countries of SEE of compliance with the environmental acquis Final Report– Part II: Country-

The European Commission – DG Environment

06/11347/AL October 2007

Patrick ten Brink (IEEP) Ljupco Avramovski (Enviro-L) Stijn Vermoote (Arcadis Ecolas) Samuela Bassi (IEEP) Karen Callebaut (Arcadis Ecolas) Arnoud Lust (Arcadis Ecolas) Alistair Hunt (Metroeconomica)

ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Content 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

CONTENT

CONTENT...... I LIST OF ABBREVIATIONS ...... III LIST OF TABLES ...... V LIST OF FIGURES ...... IX LIST OF ANNEXES ...... XI EXECUTIVE SUMMARY ...... XIII EXECUTIVE SUMMARY – FORMER YUGOSLAV REPUBLIC OF MACEDONIA...... XIII Benefit assessment air related directives...... xiii Benefit assessment water related directives ...... xiv Benefit assessment solid waste related directives ...... xv Benefit assessment nature related directives...... xvi Summary overview – former Yugoslav Republic of Macedonia ...... xix 1 OBJECTIVES...... 1 2 INTRODUCTION TO THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA...... 3 2.1 The environment ...... 3 2.2 The economy ...... 4 3 BENEFITS ASSESSMENT OF AIR RELATED DIRECTIVES...... 7 3.1 Current status of AIR QUALITY ...... 7 3.1.1 National and Regional Level...... 7 3.1.2 Air Quality Regulation ...... 12 3.1.3 Air Quality Monitoring ...... 13 3.2 QUANTITATIVE ASSESSMENT: AIR RELATED DIRECTIVES...... 14 3.2.1 Introduction ...... 14 3.2.2 Methodology – The Impact Pathway Approach ...... 15 3.2.3 Emission Reduction Scenarios ...... 16 3.2.4 Extent of Benefits ...... 17 3.3 MONETARY VALUATION: REDUCED AIR POLLUTION ...... 19 3.3.1 Benefits upon full compliance...... 19 3.3.2 Trans-boundary benefits...... 20 3.3.3 Conclusions...... 20 4 BENEFITS ASSESSMENT OF WATER RELATED DIRECTIVES...... 23 4.1 Current status of different water uses and threats ...... 23 4.1.1 Drinking water...... 23 4.1.2 Recreational uses of water...... 23 4.1.3 River ecosystems...... 24 4.2 Assessment using qualitative and quantitative data...... 24 4.2.1 Introduction to the Method of Assessment ...... 24 4.2.2 Benefits from improved drinking water quality and supply ...... 25 4.2.3 Benefits to recreational users of water...... 31 4.2.4 Changes in River Ecosystems...... 39

i ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Content 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

4.2.5 Future strategy on water management ...... 41 4.3 Monetary assessment...... 42 4.3.1 Benefits of Cleaner Drinking Water...... 42 4.3.2 Bathing and other surface water quality – use values...... 44 4.3.3 Improved river ecosystem quality – non-use value...... 45 4.4 Aggregation of Benefits And Conclusions ...... 48 5 BENEFITS ASSESSMENT OF WASTE RELATED DIRECTIVES ...... 55 5.1 Current status ...... 55 5.1.1 Waste generation and coverage ...... 57 5.1.2 Recycling ...... 58 5.1.3 Landfills ...... 61 5.1.4 Packaging waste...... 64 5.1.5 Incineration of waste ...... 66 5.1.6 Hazardous waste (HZW)...... 67 5.1.7 Disposal of waste oil ...... 70 5.1.8 Batteries and accumulators...... 70 5.1.9 Medical Hazardous waste ...... 71 5.1.10 Disposal of PCB and PCT ...... 72 5.1.11 Used Tires...... 72 5.1.12 End of life vehicles...... 72 5.1.13 Construction and demolition waste...... 72 5.1.14 Industrial contaminated sites ...... 73 5.2 Assessment using qualitative and quantitative data...... 74 5.2.1 Introduction ...... 74 5.2.2 National targets for the future years in the field of waste management ...... 74 5.2.3 Landfill Directive ...... 76 5.2.4 Packaging Directive...... 83 5.3 Summary and interpretation of results...... 85 5.3.1 Summary results of the assessment ...... 85 5.3.2 Extent of the benefits...... 86 5.3.3 Summary of analysis approach...... 86 6 BENEFITS ASSESSMENT OF NATURE RELATED DIRECTIVES ...... 87 6.1.1 Current Status of Biodiversity and Ecosystems...... 87 6.1.2 Indicators used to assess the current state of nature protection and biodiversity...... 90 6.1.3 Threats to Biodiversity in the former Yugoslav Republic of Macedonia ...... 95 6.2 Assessment using qualitative and quantitative data...... 99 6.2.1 Environmental Benefits...... 99 6.2.2 Social Benefits...... 100 6.2.3 Economic benefits...... 101 6.3 CONCLUSIONS ...... 105 7 LITERATURE ...... 107 8 ANNEXES...... 109

ii ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Abbreviations 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

LIST OF ABBREVIATIONS

BAT Best Available Techniques

CFCs Chlorofluorocarbons

CH4 Methane

CO carbon monoxide

DRF ‘dose-response’ function

ELV emission limit values

EPRTR European Pollutant Release and Transfer Register

HC hydrocarbons

HZW Hazardous Waste

IUCN International Union for the Conservation of Nature

MEPPP Ministry of the Environmental Protection and Physical Planning

NMVOVs non-Methane volatile organic compounds

MSW Municipal Solid Waste

NOx nitrogen oxides

PCB Polychlorinated biphenyls

PCT Polychlorinated terphenyls

PPP purchasing price parities

SO2 sulphur dioxide

VOCs volatile organic compounds

VPF Value of a Prevented Fatality

VSL Value of Statistical Life

WQO Water Quality Objective

WTP willingness to pay

PPP Purchasing power parity or parities.

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ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Tables 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

LIST OF TABLES

Table 2-1: Key economic indicators for former Yugoslav Republic of Macedonia ...... 4

Table 3-1.Table of emissions for SOx, NOx, CO, TSP (2004)...... 7

Table 3-2. Emissions on year level in tones per year (2004) ...... 7

Table 3-3. Emissions of air pollution from stationary sources in regions of RM (2004) ...... 8

Table 3-4. Emissions of pollution substances from household with fire wood...... 9

Table 3-5. Fugitive emissions on NMVOC from petrol stations in regions...... 9

Table 3-6. Data from automatic monitoring stations in Skopje - ambient air quality ...... 10

Table 3-7. Data from automatic monitoring stations of ambient air quality in Bitola ...... 11

Table 3-8. Data from automatic monitoring stations for ambient air quality – Veles ...... 11

Table 3-9: EU Air Quality Directives Amenable to Monetisation ...... 14

Table 3-10: 2020 Emissions in the former Yugoslav Republic of Macedonia used for the current study. . 16

Table 3-11: Physical premature mortality impacts avoided in year 2020...... 17

Table 3-12: Physical Morbidity Impacts in year 2020...... 19

Table 3-13: Benefits of Full Compliance (Million €)...... 20

Table 4-1: Future water supply norms in the former Yugoslav Republic of Macedonia (ERWRM) ...... 26

Table 4-2: Future water supply norms in the former Yugoslav Republic of Macedonia on a river basin scale (ERWRM) ...... 27

Table 4-3: Water demand by tourists in the year 1996 on river basin basis...... 28

Table 4-4: Total drinking water demands by tourists for the years 2010 and 2020 (ERWRM)...... 28

Table 4-5: Sanitary compliance of drinking water supply monitoring (sampling) for period 1997-2003 (Republic Health Institute) ...... 30

Table 4-6: Type and quantity of water intake and losses...... 31

Table 4-7 : Comparison between the former Yugoslav Republic of Macedonia bathing water standards and EU bathing water standards (76/160/EEC) – microbiological parameters...... 32

Table 4-8: Overview of the waste water treatment infrastructure in the former Yugoslav Republic of Macedonia (Republic Institute for Health Protection) ...... 36

Table 4-9: Calculated nutrient content of wastewater ...... 38

Table 4-10: Willingness to pay for cleaner drinking water...... 44

v ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Tables 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

Table 4-11: WTP for cleaner inland surface water...... 45

Table 4-12: Improvements to River Water Quality – Non-use Values ...... 47

Table 4-13: Aggregation of Annual Benefits from Full Compliance (million Euro per year) ...... 50

Table 4-14: Total benefits from full compliance with the water-related Directives ...... 52

Table 5-1: Existing Waste Management Arrangements - Problem Analysis ...... 55

Table 5-2 – Waste management and collection ...... 57

Table 5-3: Total municipal waste generation and composition – year 2004 ...... 57

Table 5-4 – Waste recycling...... 59

Table 5-5: Overview of the recycled commodities in the former Yugoslav Republic of Macedonia – year 2004 ...... 60

Table 5-6 – Waste landfilled ...... 62

Table 5-7: Contribution of Methane (CH4) in CO2-eq emission in Waste Sector ...... 62

Table 5-8: Identified non – compliant municipal landfills ...... 63

Table 5-9: Number of municipal landfills per risk class ...... 64

Table 5-10– Packaging waste ...... 64

Table 5-11: Packaging waste expressed as percentage of total waste...... 65

Table 5-12: Main characteristics of Drisla hospital waste incinerator...... 66

Table 5-13– Waste incineration...... 67

Table 5-14 – Hazardous waste...... 68

Table 5-15: Annual quantities of industrial hazardous waste and proposed disposal options (mining activities) – year 2004 ...... 69

Table 5-16: Annual quantities of industrial hazardous waste and proposed disposal options (mining activities excluded) – year 2004 ...... 69

Table 5-17: Projection industrial hazardous waste generation...... 70

Table 5-18 – Waste oils...... 70

Table 5-19 – Batteries and accumulators ...... 71

Table 5-20: General data on medical hazardous waste...... 72

Table 5-21: Industrial contaminated sites - ‘hotspots”...... 73

Table 5-22: Targets for recovery / recycling...... 74

Table 5-23: Estimates of reductions in methane emissions per year by 2010 (in ktonnes) ...... 78

vi ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Tables 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

Table 5-24 : Assumptions for the Municipal Waste Flow for the Period 2002–2020...... 79

Table 5-25 : Assumptions for the Municipal Waste Flow for the Period 2002–2025, Strategy Scenario 2 – Increased Incineration...... 81

Table 5-26 : Recycling scenario for compliance with the Packaging Directive...... 84

Table 5-27: Estimated tonnes recycled and the changes in recycling levels per year (in tonnes and percentage) due to the Packaging Directive by 2020, ...... 84

Table 6-1: IUCN Protected Areas: I-V Management Categories ...... 91

Table 6-2: Flora - Number of endemic and threatened species among the higher plants ...... 93

Table 6-3: Fauna - Diversity and endemism of species in different taxonomic groups...... 93

Table 6-4: Potential environmental, socio-cultural and economic benefits ...... 106

Table 8-1: Methane Emissions By Component, USEPA (1998) ...... 137

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ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Figures 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

LIST OF FIGURES

Figure 2-1: Map of the former Yugoslav Republic of Macedonia ...... 3

Figure 4-1: Bathing water quality of Ohrid Lake (Republic Health Institute)...... 33

Figure 4-2: Bathing water quality of Prespa Lake (Republic Health Institute)...... 34

Figure 4-3: Bathing water quality of Dojran lake (Republic Health Institute)...... 34

Figure 4-4: Quality of surface waters in the former Yugoslav Republic of Macedonia in the year 1996 ... 40

Figure 5-1: Composition of the total municipal (household and commercial) waste ...... 58

Figure 5-2: Simplified diagram of Recycling Network in the former Yugoslav Republic of Macedonia..... 59

Figure 5-3: Packaging waste as percentage of the total waste ...... 65

Figure 5-4: Annual generation of HW (Mining and Thermal Processes excluded) – year 2004 ...... 68

Figure 5-5: Strategy scenario 1 - Estimates of projected volumes of waste generated, collected, recycled, composted, incinerated and disposed for the period 2004-2020 assuming a zero municipal solid waste generation growth ...... 80

Figure 5-6: Strategy scenario 1 - Estimates of projected volumes of waste generated, collected, recycled, composted, incinerated and disposed for the period 2004-2020 assuming a high municipal solid waste generation growth ...... 80

Figure 5-7: Strategy scenario 2 - Estimates of projected volumes of waste generated, collected, recycled, composted, incinerated and disposed for the period 2004-2020 assuming a zero municipal solid waste generation growth ...... 82

Figure 5-8: Strategy scenario 2 - Estimates of projected volumes of waste generated, collected, recycled, composted, incinerated and disposed for the period 2004-2020 assuming a zero municipal solid waste generation growth ...... 82

Figure 6-1: Number of designated areas according to national categories ...... 90

Figure 6-2: Natural Protected areas in the the former Yugoslav Republic of Macedonia ...... 92

Figure 6-3: Number of species, endemic and threatened vertebrate species in the former Yugoslav Republic of Macedonia (European Red List of Vertebrates)...... 94

Figure 6-4: Percentage of certain types of erosion of the torrent flow area in the former Yugoslav Republic of Macedonia (Annual Report 2004 on Soil from the MoEPP - Macedonian Environmental Information Centre) ...... 97

Figure 6-5: Index of Utilized Agriculture Area by category of use, 2000-2004, 1999=100 (State Statistical Office, 2005) ...... 98

Figure 6-6: Area under organic production...... 102

Figure 6-7: Benefits of EU accession for the the former Yugoslav Republic of Macedonia - Protected areas: Increased coverage and increased quality ...... 106

ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Annexes 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

LIST OF ANNEXES

Annex 1: Regulation on classification of waters (The Official Gazette of the former Yugoslav Republic of Macedonia of Macedonia No. 18-99) ...... 111

Annex 2: Insights on ecosystems features ...... 125

Annex 3: Insights on biological diversity ...... 129

Annex 4: Institutional, legal and economic framework ...... 133

Annex 5 : Quantitative review of methane emissions ...... 137

ARCADIS ARCADIS Ecolas / IEEP / Metroeconomica / Enviro-L Executive Summary 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY – FORMER YUGOSLAV REPUBLIC OF MACEDONIA

The country specific report for the former Yugoslav Republic of Macedonia provides an overview of the current status of the environment in the field of water, waste, air and nature and the results of the benefits assessments. A benefit assessment is carried out using quantitative data for Air, Water, Waste and Nature respectively – as in past benefits assessments. Next to this, a monetary analysis is carried out for parts of Air and Water. Nature and Waste are excluded from the monetary assessment since the main benefit values come from air and the benefits from water are also quite transparent and easy to communicate. The more general description of the benefits in qualitative terms is presented in the general report.

Our analysis is based on data collected in the period of March – June 2007 by national environmental experts. To this purpose, IEEP and ARCADIS Ecolas developed questionnaire templates for the national experts to fill out. The questionnaires provided us a picture of the current situation and, whether possible, past trends and future scenarios. The templates are presented in annex of the general report.

In this chapter, a summary is provided on the qualitative, quantitative and monetary (only water and air) benefit assessments. The main results are summarised on the last page of this executive summary. It is advised to consult the full report for background information on the methodology used and assumptions made as these reflect the context in which presented figures should be interpreted.

BENEFIT ASSESSMENT AIR RELATED DIRECTIVES

The study has assessed the extent of the benefits from lower emissions for the following pollutants: particulates, sulphur dioxide (SO2), nitrogen oxides (NOx), volatile organic compounds (VOC’s), and ammonia (NH3).

In summary, the key benefits identified are: • It is estimated that 381 equivalent cases of chronic bronchitis could be avoided per year (domestic and external) through the full implementation of EU air related directives. Of these, 50 are domestic. • Furthermore, the implementation of the air related environmental acquis should lead to approximately 237 fewer cases of premature death arising from lung cancer per year and other related respiratory diseases, 30 of which are domestic.

The key monetary benefits are: • Full compliance should lead to an annual benefit value in a range of 22 to 38 million EUR (reflecting the metric for premature death used) for the former Yugoslav Republic of Macedonia, starting from 2020. • Total annual benefits to all countries, including EU and third countries have been estimated to equal 285 million EUR in 2020 using the VSL metric. This is due to the fact that emissions reductions in Macedonia will lead to reductions in pollution exposure of the populations in neighbouring countries.

ARCADIS ARCADIS Ecolas / IEEP / Metroeconomica / Enviro-L Executive Summary 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

• The gaseous pollutants comprise almost 73% of the benefits whilst PM10 accounts for almost 27% of the total benefits. • Avoided early mortality is the largest source of benefit; the value attributed to avoiding early mortality amount to over 64% of the total benefits valued.

The results presented are still likely to be under-estimates of the true benefits of compliance with these standards. The principal reason for this is that the benefits of reductions in some pollutants, notably CO, CO2 and CH4, are not valued since the impact-pathways are not yet defined for all end- points.

It should also be noted that uncertainty remains integral to the analysis – in other words the analysis does not try to hide the uncertainty in the estimates, on the contrary. Two examples of uncertainty include the monetary valuation of the receptor end-points, particularly premature deaths avoided.

Whilst the limitations must be acknowledged, the project team is confident that the results, if seen in the context of the uncertainties, do present very important conclusions on the scale of benefits that can accrue from the proper implementation of the Directives, from which broad policy conclusions can be drawn.

BENEFIT ASSESSMENT WATER RELATED DIRECTIVES

Benefits of improved drinking water will accrue (i) to households that have a new connection to water supply, and (ii) to households that already have water supply, but are guaranteed better quality water. 88.9% of the population is supplied with safe drinking water today. In absence of a more accurate estimate of the number of new connections, it was preferred to apply an experts’ estimate of 5% increase to calculate future connection percentages. Adding the 5% estimate of new connections to the current connection rate of 88.6% yields a total share of 93.6% which can be assumed to benefit from quality improvements of drinking water.

Although it is a well known fact that urban wastewater is one of the most dangerous pollutant sources of the surface water in the country, there is no data on the urban wastewater quality, due to lack of systematic monitoring. The Urban Waste Water Directive will have a positive effect on the quality of inland waters and, in some cases, groundwater. The total population of the former Yugoslav Republic of Macedonia was assumed to benefit from the bathing water quality improvement, through a reduction of the nitrates and phosphates load discharged.

The distribution of the present surface water quality was estimated to be 5% class I, 50% class II, 40% class III, 5% class IV and 0% class V, showing that the current water quality condition of most of the surface water is not satisfying the requirements of the secondary legislations (regulation or ordinance). As it was not possible to assess what will be the precise effect of the implementation of the various water directives (mainly Urban Waste Water Directive, the Nitrate Directive and the Dangerous Substances Directive) on river quality, it has been assumed that the full implementation of the various directives will lead to the effect that the real water quality in all watercourses will be such that the designated Water Quality Objective class I or II will be met. This seems a reasonable assumption, as the main cause of not meeting the WQO is the discharge of various substances by sewage and industrial discharges and these discharges will be dealt with by the directives.

The total benefits of clean drinking water are estimated to amount to around 58 million EUR/year upon full compliance.

ARCADIS ARCADIS Ecolas / IEEP / Metroeconomica / Enviro-L Executive Summary 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

An additional important benefit from the implementation of the water related environmental acquis is the benefit of access to quality bathing and surface waters. The total benefits of an improved surface water quality to the domestic population are estimated to amount to 8.5 million EUR/year upon full compliance – for the lower WTP value. For the high estimate, the benefits to the domestic population are estimated to be at around 22.3 million EUR/year upon full compliance.

Next to the recreational value of surface water, which has been covered above, many people have a WTP for improved river ecosystem quality even if they do not visit the respective river at all. The total non-use value of improving river ecosystem quality is estimated to amount to 0.21 million EUR/year upon full compliance.

The total discounted benefits to the domestic population of compliance with the water-related Directives has been estimated at around 546 million EUR (lower estimate) and 658 million EUR (upper estimate). This is equivalent to 270 EUR/person and 326 EUR/person.

BENEFIT ASSESSMENT SOLID WASTE RELATED DIRECTIVES

The EU Waste Directives will lead to major changes in handling, treatment and disposal of waste in the former Yugoslav Republic of Macedonia. The country has a wide range of ways in which it can choose to implement the set of waste directives. For example, it can choose to give priority to recycling or to incineration. This choice will affect the extent and value of the benefits arising from each Directive. It is therefore not always possible to identify exactly what will occur as a consequence of a specific Directive.

The main benefits from implementing the Waste Directives are: • Better management and monitoring of waste streams through the Waste Framework Directive. • Lower pollution to groundwater and surface water from leakage of unprotected landfills and, as a result, lower risks of contaminating drinking water. • Reduced health and explosions risks as well as lower impact on global warming as methane emissions from landfills are captured and made to generate energy. Existing landfill sites will have to be upgraded and illegal dumping sites closed. • Benefits to eco-systems and other environmental resources as emissions from waste activities into air, water and soil are reduced and the recovery of energy is increased through the Incineration Directive. • Reduced health and environmental risks by improved treatment and disposal of hazardous waste such as hazardous solid waste, medical waste, PCB waste, used tyres and batteries etc. • Increased efficiency in the use of material and reduced production of primary material as a result of higher levels of recycling. This is a result of the targets of the Packaging Directive, diversion targets from the Landfill Directive and targets of the WEEE Directive, ELV, Batteries, Waste Oils etc. directives. • Lower costs for waste collection, treatment and disposal, as less waste will be produced.

EU waste directives will help avoid:

• Pollution into air, soil and water (methane, CO2, particulate, heavy metals from sewage sludge, PCBs/PCTs, waste oil) and ecological risks from waste treatment sites and hazardous waste. • Respiratory diseases and noise nuisance to local population, risks to health from contaminated water supplies, air and soil.

Extent of the benefits:

ARCADIS ARCADIS Ecolas / IEEP / Metroeconomica / Enviro-L Executive Summary 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

• The full implementation of the Landfill Directive will lead to a reduction of methane emissions (captured) of between 4 and 40 ktonnes annually by the year 2020. • Associated with the increase in the levels of recycling/composting and incineration, implementation of the Landfill Directive will lead to a decrease in landfill disposal levels. Estimates for a decrease in landfill disposal levels (per year) by the year 2020 were calculated as the levels of disposal under the Landfill Directive, as a percentage of the non-implementation baseline. Under the recycling/composting scenario the disposal would be around 67% of non- implementation levels (i.e. a 33% decrease), and under the incineration scenario it would be around 52% of non-implementation levels (i.e 48% decrease). • The quantitative assessment of the impacts of the Packaging Directive provide predicted changes in recycling levels across all materials. The estimates for the increases in recycling levels for the former Yugoslav Republc of Macedonia, per year, by 2020 are: - for paper: +46,3 ktonnes; - for glass: +11,5 ktonnes; - for plastic (PET): +3,3 ktonnes; and - for metals: no change as the current recycling rate of 98% is already higher than the target of the Packaging Direcitve • For all the recyclables together, the increase will amount to around 61 ktonnes.

BENEFIT ASSESSMENT NATURE RELATED DIRECTIVES

Improving the nature-related legislation in the former Yugoslav Republic of Macedonia will primarily increase the size and quality of natural protected areas. The implementation of existing national targets can increase protected areas coverage from 7.3% (about 188,000 Ha) to 12% (300,000 Ha) – an increase of about 40%. In some cases the requirements for protected areas will need to be increased in order to meet Natura 2000 objectives. Furthermore, increased protection will be achieved by the development of EMERALD network Areas of Special Conservation Interest, in preparation of the future implementation of the Birds and Habitats Directives.

The implementation of the Habitat and Bird Directive can hence provide significant environmental benefits in term of more effective protection of endangered and endemic species (especially fish) and fragile ecosystems (like wetlands, relict lakes). The protection of migratory birds across borders is also expected to be improved. EU accession may also help mitigate some of the major threats to biodiversity in the former Yugoslav Republic of Macedonia, such as habitat loss and fragmentation due to urban/infrastructural projects, overuse of resources, water pollution (especially from waste water), overfishing and illegal hunting. Reduced pollution and increase nature protection in protected area is also expected to lease to enhanced water quality, including drinking water.

Key socio-cultural benefits will be increased amenity and recreation value and awareness raising (eg through the promotion of education and research). This can be particularly important given the low level of environmental awareness in the former Yugoslav Republic of Macedonia (often leading to resource overuse). This can also help preserve cultural identity. The adoption of EU processes – like stakeholder consultations in the context of EIA – can stimulate public participation in decision-making. In addition, reduced illegal hunting can also increase public safety in rural areas.

The economic benefits can be generated by increasing activities like tourism and ecotourism (which currently are not key economic resources), organic farming, sustainable forestry and harvesting of non-timber products (like medicinal herbs, oils, mushrooms etc). These activities can also lead to increased employment and volunteer work opportunities (eg in tourism, forest management,

ARCADIS ARCADIS Ecolas / IEEP / Metroeconomica / Enviro-L Executive Summary 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report sustainable agriculture etc). Increasing the number of programmes for nature protection and sustainable agriculture can also bring additional EU-funding (PES, LIFE + programme etc…)

he former Yugoslav t

Monetary assessment 2020 onwards for 2020 onwards Macedonia of Republic countries all 2020 for MEUR at full compliance; annual benefit of22.3 MEUR; 8.5 – waters (non-use value): annual benefit 0.21 MEUR/year; of MEUR/year. 546 – 658 of Annual benefit of 22-38 MEUR from Annual total benefit of 285 MEUR in Drinking waters: annual benefit of 58 Improved surface water (use value): Improved ecosystem quality of surface 20 years over benefits discounted Total

• • • • • •

Quantitative assessment 381 equivalent cases cases of chronic 381 equivalent of premature death cases 237 fewer from benefits population 94% of All watercourses improved so that the All surface waters benefiting from : 4 to 40 emissions methane Reduced volume 48% of by 33% to A decrease 61 ca. of to a volume An increase bronchitis avoided per year of which 50 which of per year avoided bronchitis domestic which 30 domestic of per year drinking of improvements quality water; Water Objective Quality designated be met; I or II will Classes improved ecosystem quality; in 2020 ktonnes/year by 2020 under landfilled/year waste of respectively the recycling & scenario and the compositing incineration scenario ktonnes of recyclables (paper, glass 2020 per year in and plastic) from 7.3% to 12% 7.3% to from Increased protected areas coverage areas protected Increased

• • • • • • • •

•

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th environmental acquis - final report acquis - final th environmental ity of surface waters; ca / Enviro-L Qualitative assessment Executive summary ainly ozone), absenteeism, triggers innovative approaches) Improved monitoring and registration system of atmospheric emissions and air General benefits to human health (mortality and morbidity), eco-systems ; quality water drinking Improved ; purposes bathing and recreational for quality water surface inland Improved Improved ecosystem qual Better management and monitoring of waste streams Reduced health risks linked to hazardous waste management, closure and Lower pollution of ground- and surface water linked to leakage of unprotected energythrough materials primary of use and better energy of Recovery methane of capture change through climate on impacts Reduced Protection of endangered and endemic quality parameters parameters quality oz and acidification (eutrophication, agricultural crops (m historic to damages (e.g. aspects and social dumps and waste landfills old of remediation landfills recuperation, re-use and recycling activities ecosystems (e.g. wetlands, relict lakes).

• • • • • • • • • • • AIR WATER SOLID WASTE NATURE

ARCADIS ECOLAS / IEEP Metroeconomi 06/11347 - fYRoM Benefits of Compliance wi OVERVIEW – FORMER YUGOSLAV REPUBLIC OF MACEDONIA SUMMARY

ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Objectives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

1 OBJECTIVES

The objective of this country-specific report is to carry out a benefits assessment for the former Yugoslav Republic of Macedonia, that follows the approach taken in the past Benefits of Compliance Studies for the EU13 and for Croatia.

In chapters 3 to 6 a benefits assessment is carried out using quantitative data for Air, Water, Waste and Nature respectively – as in past benefits assessments. Next to this, a monetary analysis is carried out for parts of Air and Water. Nature and Waste are excluded from the monetary assessment (as in the Croatia study) since the main benefit values come from air and the benefits from water are also quite transparent and easy to communicate.

ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Introduction 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

2 INTRODUCTION TO THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA

The former Yugoslav Republic of Macedonia is a landlocked country on the Balkan peninsula in south- eastern Europe. It is bordered by Serbia to the north, Albania to the west, Greece to the south, and Bulgaria to the east. The capital is Skopje. A map of the former Yugoslav Republic of Macedonia is given in Figure 2-1.

Figure 2-1: Map of the former Yugoslav Republic of Macedonia

2.1 THE ENVIRONMENT

The former Yugoslav Republic of Macedonia is a landlocked country that is geographically clearly defined by a central valley formed by the Vardar river and framed along its borders by mountain ranges.

The Republic's terrain is mostly rugged, located between the Šara and Osogovo, which frame the valley of the Vardar river. Three large lakes — Lake Ohrid, Lake Prespa and Dojran Lake — lie on the southern borders of the Republic, bisected by the frontiers with Albania and Greece. Ohrid is considered to be one of the oldest lakes and biotopes in the world. The region is seismically active and has been the site of destructive earthquakes in the past, most recently in 1963 when Skopje was heavily damaged by a major earthquake, killing over 1,000.

The former Yugoslav Republic of Macedonia also has scenic mountains. They belong to two different ranges: Dinarska and Rodopska. The Dinarska range is the oldest with subsequent erosion; the Rodopska range is younger offering rugged, alpine sceneries.

The former Yugoslav Republic of Macedonia present a great diversity of fauna species, 6.5% of which are endemic. The most threatened group is fish.

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Most of the forest area is owned by the state, and often timber harvesting is managed rather inefficiently. In the pre-mountain (subalpine) regions the forest are almost destroyed, due to desiccation, fires, land drainage, mining and other anthropogenic activities like building construction, expansion of tourist settlements, road infrastructures and artificial lakes.

Grasslands ecosystems also occupy a large part of the former Yugoslav Republic of Macedonia, and are expanding in some areas due to forest degradation and abandonment of agriculture land. Grasslands are though under anthropogenic pressure from agriculture and mining activities.

Mountain ecosystems are under pressure due to overgrazing, the uncontrolled removal of plant species, and the construction of ski-lift and other infrastructures. The floral and faunal components though are not considered at risk.

Lake and watershed ecosystems are very rich in terms of biodiversity, but their state is alarming. Pollution from wastewater, industrial agricultural pollution, and a lowering of the water level in some lakes are among the highest pressures, threatening wetland ecosystems and their related biodiversity.

Although some national laws for nature conservation are in place (Law on Nature Protection - Official Gazette 67/2004), legislation is still incomplete. Nature in the former Yugoslav Republic of Macedonia is still under threat by lack of citizen’s awareness, outdated technology, unsustainable agriculture practices, illegal hunting, low institutional capacity, lack of strategic planning, and uncontrolled urbanisation and industrialisation.

2.2 THE ECONOMY

Agriculture and forests contribute to approximately 11.3% of the GDP. It is agriculture though – together with industry – the most important economic sector in the former Yugoslav Republic of Macedonia, while forestry is not a key economic resource. Agriculture is rather extensive and traditional, and at the moment do not represent a strong threat to local biodiversity. Nevertheless, economic development and market competition could lead the Macedonian agriculture to become more intensive. Tourism activities are not very developed, and contribute to only 1.6% of the GDP.

The key economic indicators for the former Yugoslav Republic of Macedonia are given in Table 2-1.

Table 2-1: Key economic indicators for the former Yugoslav Republic of Macedonia Indicator Most recent year (ideally 2004) Population in your country and growth rate 2022547 (censuse 2002) 0.2% (2000-2005) (state statistical office) Population size per settlement (cities, major Skopje - 506926 (census 2002) (state statistical office) towns) in your country Population size by region (NUTS1 2 and NUTS The former Yugoslav Republic of Macedonia is 3 if possible) divided in 8 statistical regions (Population and names of regions in table below) * The former Yugoslav Republic of Macedonia is divided in 84 municipalities plus 1 municipality Skopje. The information for population size can be find in statistic censuses from 2002 (state statistical office) www.stat.gov.mk GDP (ideally 2004 money terms) 5.76 billions Curently US$ (2005) (world bank) 4.64 billions Euro (2005)

1 National unit of territorial space

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Indicator Most recent year (ideally 2004) GDP per capita 2119 US$ (2005) (state statistical office) 1706 Euro (2005) GDP growth rate – past and projections 4.0% annual (world bank) 4.1% (2004) 4.0%(2005) 4.0(2006) State Statistical Office Predicted 6.0% for 2007 and 2008 (current predictions are that 2007 GDP will be no more than 4.5%) Number of households - 564237 (census 2002) (state statistical office) - Percentage of households that live in dwellings connected to the public water supply system: 88.6% - Percentage of households that live in dwellings connected to the sewerage system: 62.9% - Average number of household members Number of dwellings 697529 Country surface area 25713 km² Purchasing Power Parity 16.91 billion US$ (CIA Fact book) 12.51 billion Euro – according to current exchange rate us$/Euro Share (%) of agriculture in the GDP (year 9,8 % 2003) 2 7%

3% Crops app.:

Livestock app.: Share (%) of agriculture, forestry and fishery 11.3 % in the GDP (year 2004) 3 Share (%) of forestry in the GDP (2003) 4 1%

2 Agricultural Report 2004, MAFWE: The value of the whole agri-food sector (including the wider agribusiness sector i.e. food and processing) is estimated to represent approximately 15% GDP.

3 Agricultural Report 2005, MAFWE

4 Agricultural Report 2004, MAFWE: According to the Strategy for Sustainable Development of Forestry in the former Yugoslav Republic of Macedonia (adopted in 2006) the share of forestry in the GDP is only 0,3-0,5 %, but if the multifunctional uses are valorised, the contribution will be higher.

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Indicator Most recent year (ideally 2004) Share (%) of tourism (hotels and restaurants) 1,7% in the GDP 5 (year 2002): 1.9% (year 2003): 1,6% (year 2004):

5 Statistical Yearbook 2006

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3 BENEFITS ASSESSMENT OF AIR RELATED DIRECTIVES

3.1 CURRENT STATUS OF AIR QUALITY

3.1.1 National and Regional Level The following tables document the quantity of principal air pollutants emitted from individual sectors within the former Yugoslav Republic of Macedonia.

Table 3-1.Table of emissions for SOx, NOx, CO, TSP (2004)

SNAP SOx t/y NOx CO TSP

Public power, cogeneration and district 91,863 13,100 385 4675 1 heating plants

Commercial, institutional and residential 1,062 1,502 41,443 1,533 2 combustion plants

3 Industrial combustion 6,450 2,744 552 1,209

4 Production processes 356 4,933 9,004 22,278

5 Extraction and distribution of fossil fuels 0 0 553 0

6 Solvent use 0 0 0 0

7 Road transport 775 9,200 40,927 0

8 Other mobile sources and machinery 251 2,069 2,025 225

9 Waste treatment and disposal 3.4 21 5.3 0.8

10 Agriculture 0 0 0

11 Nature 38,3 169 4,841 0

Total 100,799 33,737 99,735 29,921

Table 3-2. Emissions on year level in tones per year (2004) SNAP NMVOCs NH3

1 Public power, cogeneration and district heating plants 1,690 0

2 Commercial, institutional and residential combustion plants 3,508 0

3 Industrial combustion 211 0,5

4 Production processes 1,108 0

5 Extraction and distribution of fossil fuels 425 0

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6 Solvent use 8,484 0

7 Road transport 8,824 0

8 Other mobile sources and machinery 969 0,28

9 Waste treatment and disposal 1.1 0

10 Agriculture 0 7,384

11 Nature 98,866 1,382

Total 124,087 8,824 Source: Data from MOEPP Report for year 2005

Under the framework of the CORINAIR programme in 2005, in the former Yugoslav Republic of Macedonia established an inventory for emissions of air substances in different sectors. Analyses of the period 2002-2005 showed a decrease of emissions in SO2, reflecting falls in the level of production activity. SO2 pollution is dominated by electricity production which relies on the use of poor quality lignite, with high percentages of sulphur. This, together with transport, is the main source of emissions of NOx.

Data for NH3 are available for 2005 and the main source is agriculture.

Pollutant emissions on a geographical basis are presented in the following tables for 2004.

Table 3-3. Emissions of air pollution from stationary sources in regions of RM (2004) Pollution substances [tonnes] Regions

SO2 CO NOx TSP

Pelagonian 74,047 987 12,333 4,041

Vardar 2,282 628 1.022 749

Northeast 138 91 51 13

Southwest 13,370 3,611 815 610

Skopje 6,441 1,134 3,262 524

Southeast 619 298 261 69

Polog 735 9,064 5,019 18,706

East 959 482 242 71

Total 98,590 16,294 23,006 24,783

Data MOEPP - Land registry of air emissions

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Table 3-4. Emissions of pollution substances from household with fire wood

Regions Pollution substances [tonnes]

SO2 CO NOx TSP Pelagonian 3,844 12,344 126 357

Vardar 1,805 5,798 59 167

Northeast 3,477 11,168 114 323

Southwest 3,597 11,551 118 334

Skopje 8,593 27,597 281 797

Southeast 2,928 9,403 96 272

Polog 4,717 15,149 154 438

East 4,210 13,521 138 391

Total 33,171 106,531 1,086 3,079

Table 3-5. Fugitive emissions on NMVOC from petrol stations in regions

Regions Evaporable organic substance from oil derivates [tonnes]

from Petrol from Diesel motor oil Total

Pelagonian 46.0 45.0 23.4 114.4

Vardar 25.5 32.7 18.0 76.2

Northeast 46.8 68.1 52.2 167.1

Southwest 40.2 43.3 23.8 107.3

Skopje 153.1 138.0 30.9 322.0

Southeast 31.13 47.00 26.15 104.3

Polog 62.7 87.5 60.7 210.9

East 30.8 33.7 20.1 84.6

Total 436.2 495.4 255.3 1186.9

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Skopje

Evaluation of ambient air quality in Skopje is made by analysis of polluting substances and data from monitoring networks given by MoEPP, Hydro-meteorological Institute and Institute of Health-Skopje. In Table 3-6, data from results analysis taken from three autumatic monitoring stations for ambiental air quallity in Skopje (Karpos, Centar and Lisice) are given, in frame of MoEPP, as well from UHMR and Republic Health Protection Institute monitoring networks.

Table 3-6. Data from automatic monitoring stations in Skopje - ambient air quality

Number of days in Year average year with average SKOPJE Max Min Limit value day concentration concentration above Limit Value

Karpos 25 123 - 150 0 3

Centar 30 189 5 150 2 µg/m 2

SO Lisice 20 84 2 150 0

Karpos 52 116 15 85 5 3

Centar 52 106 25 85 14 µg/m 2

NO Lisice 53 138 17 85 15

Karpos 1 5 0.4 1 276 3

Centar 2 6 0.3 1 270 CO mg/m MoEPP Lisice 3 6 0.5 1 217

Karpos 34 103 3.7 110 0

Centar µg/m 3 O Lisice 35 105 6 110 0

Karpos 92 366 11.9 120 47

Centar 104 420 1.1 120 61

PM 10 µg/m PM 10 Lisice 114 7.2 120 91

Concentrations of CO are high at Karpos, Lisice and Centar. Warm periods in winter, increased frequency of traffic and meteorological conditions are the main reasons for the high levels of this pollutant.

Bitola The ambient air quality in Bitola is monitored by two automatic monitoring stations operated by MOEPP (Bitola – 1, Bitola – 2) and one monitoring station operated by Hydro-meteorological institute. Data is shown in Table 3-7.

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Table 3-7. Data from automatic monitoring stations of ambient air quality in Bitola

Number of days in year with Year average Limit average day Bitola Мax Min Value concetration concentration above Limit Value

3 Bitola-1 25,47 78,39 7,059 150 0

2 SO

g/m Bitola -2 12,40 30,03 5,159 150 0

3 Bitola -1 24,86 119,57 3,552 85 14 µg/m 2 Bitola -2 34,12 115,00 8,025 85 3 NO

3 Bitola -1 1,40 4,03 0,256 1 169

MOEPP Bitola -2 1,22 5,98 0,304 1 158 CO mg/m

3 Bitola -1 75,45 163,22 22,165 110 32 µg/m

3 Bitola -2 78,06 145,31 21,95 110 60 O

3 Bitola -1 65,63 253,92 10,828 150 27 PM 10 PM 10 µg/m Bitola -2 71,07 530,29 4,313 150 22

Source MOEPP- 2005

Veles Veles, as an industrial city, is one of the most polluted cities in the former Yugoslav Republic of Macedonia. In Table 3-8, information from two automatic monitoring stations in the frames of MOEPP (Veles-1, Veles-2), three monitoring stations operated by Hydro-metrological institute and two monitoring station in the frames of Institute of Health – Vales, are presented.

Table 3-8. Data from automatic monitoring stations for ambient air quality – Veles

Number of days in year with average Year average Limit Veles Мах Min day concentrations Value concentration above Limit Value

3 Veles-1 29,76 111,86 10,082 150 0 µg/m 2 Veles-2 29,05 125,47 8,673 150 0 SO MOEPP

2 3 Veles-1 13,07 43,21 2,743 85 0 m µg/ NO

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Veles-2 31,57 126,06 10,119 85 4

3 Veles-1 1,09 2,15 0,325 1 172

Veles-2 1,28 4,42 0,307 1 208 CO mg/m

3 Veles-1 66,16 122,23 8,797 110 15 µg/m

3 Veles-2 75,42 147,89 19,083 110 60 O

3 Veles-1 54,83 210,75 5,194 120 10 PM 10 PM 10 µg/m Veles-2 80,43 260,97 10,207 120 56

Note: Maximal, minimal value and number of days with daily average concentrations over Limit Value are taken from tables with basic data where we can find daily average of polluting substances

3.1.2 Air Quality Regulation

A new Law for ambient air quality was established in September 2004 in the former Yugoslav Republic of Macedonia and in June 2005, Regulation for Limit values on polluting substances in air came into being. This is the first legal act in moving towards harmonisation with EU directives. Resulting activities are likely to include:

• Definition of National max. emission values for some ambient pollutant substances consistent with the EU Framework Directive (2001/81/ЕU). This is still in preparation process, but it is planned to come in force not later than 2008. • National plan for implementation of emission reduction of POPs which has been adopted in accordance with project office of POPs, but needs corrections, modifications and amendments. • Implementing CORINAIR methodology for an inventory of air pollution so as to inform UNECE and CLRTAP (convention for trans-boundary transfer of air pollution)

The activities for implementing the system for integrated air pollution prevention and control are currently ongoing in accordance with the EU Directive 96/61/ЕC and the Statute and Ordinance for their implementation have been prepared. In the Statute and ordinance, licenses for companies are defined. There are specified terms for the control of air pollution and the limits of their emissions. It is hoped that implementing this system will achieve better results in terms of pollution emissions reduction.

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3.1.3 Air Quality Monitoring

In the former Yugoslav Republic of Macedonia, air quality monitoring is undertaken with static monitoring stations and with hand-taking samples from defined sites. Measurement of ambient air quality in the former Yugoslav Republic of Macedonia is made by: • Republic Institute of Health – Skopje: monitoring SO2 and smoke concentatons in 7 places in the town • Republic Institute for Health – Veles: monitoring SO2 and black smoke in 3 places in the town • Hydro-meteorological Institute: monitoring SO2 and smoke in 9 places in Skopje and 10 in other towns in the former Yugoslav Republic of Macedonia: Berovo, Bitola, Tetovo, Gevgelija, Kumanovo, Ohrid, Prilep, Stip, Veles and v.Lazaropole.

In addition, the Ministry of environment and physical planning (MOEPP) has 13 static automatic monitoring stations for air quality, one mobile monitoring station and one station for traffic pollution monitoring. In Skopje there are 4 static monitoring stations for air quality in: Karpos, Centre, Lisice and Gazi Baba and one station for traffic pollution monitoring in the area of (Rectors office) head office of a university St. ”Kiril and Methods”. Two stations exist in Bitola and Veles, whilst Kicevo, Kocani, Kumanovo, Tetovo and the village of Lazaropole each have one monitoring station, a mobile station is currently placed in Kavadarci. These stations measure:

3 • SO2 mg/m • CO mg/m3 3 • NOx mg/m 3 • O3 mg/m 3 • particulates (PM10) mg/m

These monitoring stations also measure the following meteorological parameters: • wind speed (m/s) • wind direction (º) • temperature (ºC) • Humidity (%) • pressure (hPa) • global radiation (W/m2)

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3.2 QUANTITATIVE ASSESSMENT: AIR RELATED DIRECTIVES

3.2.1 Introduction

Table 3-9 below lists the individual EU Directives for which we have attempted to quantify, in physical and monetary terms, the environmental benefits that would result from the former Yugoslav Republic of Macedonia adopting these Directives. The table indicates the pollutants that are considered in each Directive. Those indicators marked in bold show which pollutants we have been able to include in our adopted methodology.

Table 3-9: EU Air Quality Directives Amenable to Monetisation SO NOx Particulates VOC’s CO CO Heavy metals Dioxins Furans Halogens Ozone CH4

2 2

Air Quality - Relevant Directives Large Combustion Plants x x x IPPC Directive x x x x x x x Emissions from Mobile x x x x x x Sources Air Quality Framework + x x x Daughter Directives for SO2, NOx and Particulates VOC Emissions: Storage & x Transport of Petrol VOC-Solvents Directive x Tropospheric Ozone Pollution x

As agreed with the European Commission, we have adopted an analytical approach that allows us to estimate the aggregate benefits of the former Yugoslav Republic of Macedonia implementing these Directives by "bundling" the Directives together in the first instance. The benefits of implementing individual Directives are therefore not identified directly - though an indication of the relative importance of the different directives is given below. One reason for this bundling is that benefits from different directives cannot be separated. For instance, a SO2 reduction due to the IPPC directive leads to reduction in SO2 concentration and so helps towards fulfilling the limits in the first daughter directive. Another, more practical, reason centres on data availability and resources available to the project team. The former Yugoslav Republic of Macedonia project partners found that little research was publicly available on the quantification of the effects of implementing individual EU Directives in the former Yugoslav Republic of Macedonia. Nevertheless, when discussing the results of our analysis we put forward some suggestions for the relative importance of individual Directives in accounting for total impacts.

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The four categories of pollution impacts that we quantify are: • Premature deaths avoided (mortality). • Illness avoided (morbidity) – e.g. bronchitis6, asthma. • Crop damage avoided. • Material damage avoided.

One reason why our estimates of environmental benefits are likely to be under-estimates of the true benefits of compliance with EU Directives is that we are not presently able to quantify the benefits associated with the following impacts avoided: • Impacts on ecosystems. • Change in biodiversity. • Potential effects of chronic exposure to ozone. • Impacts on cultural heritage and monuments. • Material soiling. • Direct and indirect economic effects of change in forest productivity, and fishery performance.

Nevertheless, we would suggest that those impacts that we can quantify are likely to represent a significant - and majority - share of the total impacts in welfare (monetary) terms.

3.2.2 Methodology – The Impact Pathway Approach

Within the current project, the “impact pathway approach”, developed within the ExternE project series ‘External Costs of Energy,’ has been used to quantify the benefits from emission reductions (European Commission 1995, European Commission 1999, European Commission 2000b).

Impact pathway assessment is a bottom-up-approach in which environmental benefits and costs are estimated by following - as far as possible - the ‘impact pathway’ from source emissions through air quality changes to physical impacts, before being expressed in monetary benefits and costs. The ECOSENSE model, an integrated software tool for environmental impact pathway assessment developed within the ExternE projects, has been used to make the benefit estimations. ECOSENSE uses harmonised air quality and impact assessment models together with a database containing the relevant input data for the whole of Europe.

Within ExternE, the ECOSENSE model was originally used to estimate external costs from individual power plants. The ‘multi-source’ version that was used in the current project is a modified version, which supports the usage of more complex emission scenarios. In Annex of the General Part, the models and data used for the benefit estimations in the current project are described in more detail.

6 Benefits include the benefit to the individual of not incurring the illness, and also benefits of reduce hospitalisation days and reduced activity days.

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3.2.3 Emission Reduction Scenarios

The calculation of the emissions reductions as a consequence of the full implementation of the air- pollution related acquis are outlined for the principal pollutants.

RATIONALE

In this study we have established a baseline for emissions for gaseous pollutants derived from the baseline scenarios identified in the development of the Gothenburg Protocol (UN ECE 1999), reported by EMEP7 (Mylona 19998). The policy scenario is derived from analysis undertaken by IIASA in the current modelling being undertaken in the revision of the National Emissions Ceilings in the EU25. The emission scenarios for the SEE countries we are concerned with – Serbia, Bosnia & Herzegovina, Kosovo, the former Yugoslav Republic of Macedonia, Montenegro and Albania – are therefore judged to be compatible with those for countries within the EU25 with socio-economic commonalities. The resulting pollution reductions are therefore best viewed as a reasonable approximation to the scale of reductions that would be brought about by adoption of the EU environmental acquis. It is important to note that the scale of reductions is comparable to those assumed in previous equivalent analyses for DG Environment9.

METHOD

The case and reference scenario are outlined below.

CASE SCENARIOS:

Main: Emission ceilings are adopted in the policy scenario as emissions at a country level. Data derived by IIASA are directly reported by the individual country. The emission reductions for the former Yugoslav Republic of Macedonia are presented in Table 3-10.

Reference scenario: Emission projections that do not include compliance with the emission ceilings are derived from earlier projections reported by EMEP (Mylona 1999). These emission projections are used as non-compliance estimates for the reference scenarios.

Table 3-10: 2020 Emissions in the former Yugoslav Republic of Macedonia used for the current study.

Emissions for the Policy Scenario Compliance with Emissions for the Baseline Scenario without Emission Emission Ceilings Ceilings

NH3 NMVOC NO2 SO2 PM NH3 NMVOC NO2 SO2 PM [kt] [kt] [kt] [kt] [kt] [kt] [kt] [kt] [kt] [kt] 12 22 28 57 12 15 36 43 72 23

7 EMEP is the Co-operative Programme for Monitoring and Evaluation of the Long-range Transmission of Air pollutants in Europe 8 EMEP/MSC-W Note 1/99, July 1999. "EMEP EMISSION DATA. Status Report 1999". By Sophia Mylona 9 Implementation and Enforcement Capacities in Croatia - Benefits for Croatia of compliance with the environmental acquis – Final Report. European Commission, DG Environment (2005); The Benefits of Compliance with the Environmental Acquis for the Candidate Countries. European Commission, DG Environment (2001)

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3.2.4 Extent of Benefits The mortality impacts of the pollution emission reductions assumed above for the former Yugoslav Republic of Macedonia are shown in Table 3-11 below for 2020 – the year in which it is assumed compliance with EU Directives is achieved. The benefits of these reductions in EU25 countries and others – due to reduction of trans-boundary transport of pollution from the former Yugoslav Republic of Macedonia - are also given. Details of the Ecosense model from where these results are taken are given in Annex 1 of this report. Note that exposure – response functions are taken from the peer-reviewed literature, surveyed in 2007.

Morbidity impacts are of a disparate nature and so cannot be expressed as a common unit. However, for illustration, the morbidity impacts are presented - in Table 3-12 - as equivalent number of cases of chronic bronchitis avoided.

Units for materials and crop damages are not as readily meaningful and we cannot present these here. However, in the case of materials, the impact being quantified is the premature ageing of various building materials exposed to SO2 deposition from acidification. Thus, in our context, the whole exposed material surface area to SO2 will age at a slower rate than if the Directives were not to be implemented.

Crop damage is measured primarily by the change in yield that results from the change in pollutant concentrations in the air. Thus, with knowledge of the geographical distribution of crop plantations within a country, the acreage of a given crop affected by a change in pollutant concentration can be estimated and the percentage yield change can be derived.

Table 3-11: Physical premature mortality impacts avoided in year 2020

Total NH3 NOX SO2 PM Metric YOLL Deaths YOLL Deaths YOLL Deaths YOLL Deaths YOLL Deaths former Yugoslav 274 30 36 4 49 5 37 4 152 17 Republic of Macedonia Outside former 1.859 207 89 10 444 49 770 86 596 66 Yugoslav Republic of Macedonia Total 2.133 237 125 14 493 55 807 90 748 83

Table 3-11 shows the number of premature deaths avoided from emission reductions in the former Yugoslav Republic of Macedonia. The results show that a total of 237 premature deaths per annum are avoided when the emission reductions are implemented. The numbers are for the premature deaths that would be avoided in 2020 - the first year in which full implementation of the EU Directives is assumed in the former Yugoslav Republic of Macedonia. Note that the reduction in deaths caused by the reduction of emissions is separated into those occurring within the former Yugoslav Republic of Macedonia and those occurring outside the former Yugoslav Republic of Macedonia as a result of trans-boundary effects. It is interesting to note that the trans-boundary impacts comprise roughly three-quarters of the total impacts for the former Yugoslav Republic of Macedonia’s emissions.

The morbidity benefits for the emission reduction are expressed in terms of the equivalent number of cases of chronic bronchitis avoided in the country in 2020 - the first year of full compliance with the EU Directives assumed. The equivalence between cases of chronic bronchitis and other health conditions is reached simply by dividing the total monetary value of morbidity benefits by the value of one case of

17 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of air related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report chronic bronchitis avoided to give the number of cases of chronic bronchitis-equivalents. The total number of cases per year is approximately 381.

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Table 3-12: Physical Morbidity Impacts in year 2020

Morbidity impact (equivalent number of chronic Cases bronchitis cases avoided each year former Yugoslav Republic of Macedonia 50 Outside former Yugoslav Republic of Macedonia 331 Total 381

3.3 MONETARY VALUATION: REDUCED AIR POLLUTION

3.3.1 Benefits upon full compliance

The monetary estimates of the benefits resulting from the air pollution emission reductions assumed above in the former Yugoslav Republic of Macedonia are presented in summary form in Table 3-13. All values presented are in million Euros (2005 prices), and relate to the year 2020 - the first year of assumed full implementation. A description and analysis of these results is given in this section. The values here look at the benefits to the former Yugoslav Republic of Macedonia. Additional benefits accrue to the EU, and to third countries, as a result of reducing emissions in the former Yugoslav Republic of Macedonia, and the relationship between domestic action and foreign benefit is presented in Section 3.3.2.

Box 1 : Premature Mortality: Values of Prevented Mortality: Range of Values

Modelling of air quality benefits in monetary terms has historically been challenged by the use of appropriate metrics in monetising premature death impacts. Whilst there is a case for the numbers of deaths to be used on the basis that the Value of a Statistical Life (VSL) has – until recently - been the only metric for which there is empirical evidence, recent studies have tended to use the Value of Life Year (VOLY) measure as more empirical evidence has become available. The reason for the choice of using VOLYs is that for these deaths brought forward (with higher air pollution) or postponed (with lower air pollution) it is misleading to use the full Value of a Statistical Life for monetary valuation, because it attributes the full VSL to what is understood to be only a small portion of a full life expectancy. Put differently, there are many reasons why life is shortened. Air pollution in the days immediately preceding death is but one of them. It is widely understood though not fully established that higher air pollution in the days before death is a contributory factor to earlier death only in people who already have serious cardio-respiratory disease; and it seems reasonable and even necessary to attribute the deaths in greater part to that underlying disease and, perhaps, to the risk factors (smoking, occupation, diet, poverty…) that caused it.

To reflect these issues, recently (e.g. in the CAFE Programme) DG Environment has tended to use both the VSL and VOLY metrics. VOLYs have been calculated through ‘conversion’ of attributable deaths from time series studies to equivalent changes in life years. However, research as part of the NEEDS project has derived directly elicited VOLYs across a range of eight European countries. As a consequence the air quality modelling has made use of these new values. Consistent with the DG Environment approach in the CAFE analysis we use both VSL and VOLY metrics; we use values of €1 million and €40,000 for these, respectively.

The mortality avoided impacts comprise the only impact category that can be easily aggregated from the results. It should also be stressed that mortality avoided impacts typically comprise the majority of the total benefits in valuations undertaken by following the described methodology, and so are by far the most significant.

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See the annex (part 1 - general part) for further discussion of the results of the NEEDS VOLY-related research, as well as the valuation of benefits of avoided illness.

To be consistent with previous analyses of benefits of compliance with the environmental acquis in the following paragraphs we highlight results using the VSL metric for monetising reduced risks of premature death from air pollution. Equivalent results using the VOLY metric can be identified from Table 3-13.

Table 3-13 shows that the total benefits to the former Yugoslav Republic of Macedonia are equal to 38 million Euro each year following full implementation of the EU Directives in former Yugoslav Republic of Macedonia. When considering the period up to 2030, with full implementation by 2020 and including the benefits accruing in the period 2010-202 preceding full implementation, the total benefits for the former Yugoslav Republic of Macedonia amount to 327 million Euros.

Table 3-13: Benefits of Full Compliance (Million €)

Annual Benefits once Total Benefits 2010- Total Benefits 2020- Total benefits over full imp. Achieved 2020 before full imp. 2030 after full imp. period until 2030 VSL=€1M VOLY VSL=€1M VOLY VSL=€1M VOLY VSL=€1M VOLY =€0.04m =€0.04m =€0.04m =€0.04m former Yugoslav 38 22 139 80 188 109 327 189 Republic of Macedonia Outside former 247 140 903 512 1.220 692 2.123 1.204 Yugoslav Republic of Macedonia Total 285 162 1.042 592 1.408 801 2.450 1.393 * Assuming full implementation in 2020 and linear implementation 2010-2020. The analysis used a 4% discount rate.

3.3.2 Trans-boundary benefits

Table 3-13 above presented the benefits that accrue to the former Yugoslav Republic of Macedonia as a result of its own emission reductions and the benefits outside the former Yugoslav Republic of Macedonia, which compares with the total benefits that accrue to the former Yugoslav Republic of Macedonia. One key point of this analysis is that there are very significant trans-boundary benefits from reduction in air emissions to levels resulting from EU Directive implementation. Total annual foreign benefits from domestic action (i.e. excluding domestic benefits from domestic action) amount to €247 million once implementation is completed.

KEY POLLUTANTS AND KEY BENEFITS

The benefits discussed above are most attributable to the reduced number of premature deaths caused as a result of air pollution. Mortality reduced benefits account for 64% of the total benefits. Morbidity reduced benefits account for 32% whilst reduced damage to materials and to crops account for 4% and 0.0001% respectively.

In terms of pollutants, the gaseous pollutants (SO2, NOx, NH3 and NMVOC) and PM10 can be attributed 73% and 27% respectively.

3.3.3 Conclusions

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The key monetary benefits are: • Full compliance should lead to an annual benefit value in a range of 22 to 38 million EUR (reflecting the metric for premature death used) for the former Yugoslav Republic of Macedonia, starting from 2020. • Total annual benefits to all countries, including EU and third countries have been estimated to equal 285 million EUR in 2020 using the VSL metric. This is due to the fact that emissions reductions in the former Yugoslav Republic of Macedonia will lead to reductions in pollution exposure of the populations in neighbouring countries.

CO2 and CH4, are not valued since the impact-pathways are not yet defined for all end-points.

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4 BENEFITS ASSESSMENT OF WATER RELATED DIRECTIVES

4.1 CURRENT STATUS OF DIFFERENT WATER USES AND THREATS

4.1.1 Drinking water

The percentage of connections to public water supply systems in the municipalities-urban areas is much higher then the average, it varies from 82% (Berovo, Kumanovo) to 100% Skopje-Centre municipality. The total number of inhabitants connected to public water supply systems equals 1 200 000.

Regarding the rural areas the percentage of the connected dwellings to the public water supply systems is very different, from 10% up to 100%. According to the available data, average percentage is about 70, while total number of population connected to public water supply is 250 000 inhabitants.

According to the data from the "Study on the Conditions in the Public Communal Utilities" (May 2004), there are 2 209.5 km of total conveying and distribution pipelines, out of which 454.7 km are convey pipelines and 1 754.8 km are distribution network pipelines. 84% of these pipelines are older then 15 years, 10% of them are between 5 and 15 years old, while only 6% of the total pipelines are built less then 5 years ago. In order to improve the quality of the raw water, there are 10 filter plants with a total capacity of 6 822 m³/hour.

There is some statistical information about interruption of water supply in the east part of the Former Yugoslav Republic of Macedonia for the drought years, which was evident for: 1952, 1961, 1966, 1988, 1990 and 1993. Taking into account the rather poor state of the water supply system (cf. section ‘Connection percentage to public drinking water supply and Table 4-6), it can be concluded that in those cases the drinking water quality cannot be guaranteed at all, due to intrusion during the periods of a drop in pressure.

4.1.2 Recreational uses of water

There are favourable development conditions for the following types of tourism: • bather stationary tourism; • mountain winter sports; • mountain climatic healing tourism; • bath tourism; • hunting; • transit.

On the basis of completely realized and already created natural conditions and resources scale, quality, dissemination both originality, functionality, attractiveness and degree of activity, on the territory of the former Yugoslav Republic of Macedonia the following types of tourist potentials could be separated as particular units: water surfaces, mountains, baths, the units and goods with natural and cultural heritage, tourist transit directions, urban areas, hunting territory and villages.

According to basic long-term goals, concepts and criteria for the touristic development and organization in the former Yugoslav Republic of Macedonia, 10 tourist regions, 54 tourist zones and 209 tourist localities are defined. 34 snow activities, 47 water activities, 74 outdoors activities, 9 baths, 29 city tourist centres and 16 main inter-state connections are defined. Most attractive are Lake Ohrid, Lake Prespa, Lake Doyran and mountain tourism in Mavrovo, Sar Planina and Galicica.

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In 2003, 483 151 tourists visited the former Yugoslav Republic of Macedonia and accomplished 2 006 867 overnights. Tourist facilities represent 72 059 beds in total. No information is available on the tourist share in the total revenues of the country.

4.1.3 River ecosystems

Mountain rivers and head water are most sensitive to eutrophication.

There is some evidence of loss of ecosystems and reduction in species numbers in river Vardar, where the plankton system is degraded, also hydrophyl vegetations and ichthyofauna (fish), there a not floods zone in the rivers. It is import to underline that it is necessary to establish a methodology for the estimation of the biological minimum (minimum accepted flow) on the base of not only average river discharge, but, taking into consideration many other factors important for the aquatic life.

4.2 ASSESSMENT USING QUALITATIVE AND QUANTITATIVE DATA

Many of the directives interrelate and combine in their effect on the environment and many insights on the quantitative benefits are more suitable at the state of environment level (e.g. quality of rivers or bathing waters), rather than at the level of the individual directives. Consequently, the following assessment is structured according to the different end-uses of water rather than by the individual directives.

4.2.1 Introduction to the Method of Assessment

Health benefits are twofold. They can accrue from improved quality of drinking water as well as from improved quality of bathing water.

Based on the discussion in the qualitative assessment section and the previous benefits study10, the following directives are assumed to have a positive impact on the drinking water quality: Drinking Water, Urban Waste Water Treatment, Surface Waters for Drinking, Dangerous Substances, Groundwater, and Nitrates.

The following directives are assumed to have a positive impact on the water resources used for recreation and hence also on health (mainly through bathing): Bathing Water, Urban Waste Water Treatment and Dangerous Substances.

The quantification of the benefits can be carried out any of three ways:

A. Dose response function between pollutant concentrations and health impact. This can be done in one of two ways: (i) using local pollutant concentrations and health impact statistics, which is the ideal bottom up approach, responsive to local situations, but very data intensive; or (ii) using existing dose response functions, but linking these to local pollutant concentrations to obtain insights into the number of cases of illness and mortality. This is less onerous, marginally less responsive to the local reality, but does rely on the existence of good pollutant concentration data. For the former Yugoslav Republic of Macedonia, no specific data are available on dose response functions for exposure to water pollutants11;

10 Ecotec, “The benefits of compliance with the environmental acquis for the candidate Countries”, sub-study assignment for EC DG Environment, July 2001 11 input of former Yugoslav Republic of Macedonia experts

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B. An avoided illness approach using health incidences without using a dose response function. This assumes that the implementation of the directive will lead to the eradication of health impacts. This approach requires data on illness and mortality incidence related to water pollution and subsequently some means of identifying what share of the improvements can be attributed to the directive. In the former Yugoslav Republic of Macedonia, the estimated daily intake of lead through food and drinking water in the adult population in 2003 amounted to 41,3-170 µg, which is 47 per cent of the tolerable daily intake (TDI=200-250 µg/day12). The estimated daily intake of cadmium through food (in drinking water the cadmium content is less than 1 mg/l) in the adult population in 2003 was 21,7 µg (TDI=70 µg/day13), which is close to the data of Finland, Sweden, Turkey, Hungary, Austria, and lower than those in other EU countries. From 1970 to 1997, there were several water-borne epidemics, caused by serious failures in the distribution networks, or the non-respect of the sanitary protection zones, combined with poor local hygiene practices which increase the likelihood of faecal-oral transmission. Hepatitis A outbreaks occurred in Debar (1978), Kratovo (1980), Probistip (1993) and Veles (1990)14. However, these data are insufficient to apply the avoided illness approach;

C. A willingness to pay (WTP) approach, where the number of parties affected or potentially affected by the contaminants is identified. For the subsequent step of monetisation (see section 4.3), these affected or potentially affected parties express a value that they would be willing to pay to avoid the pollution (sometimes studies also give willingness to accept compensation values). The first step is an identification of which parties are affected, which requires knowledge of connection rates (for those that gain new connection), and household numbers that would gain from quality improvements. For the second step, that of valuation, this can be done by a local survey, which would be more accurate, but extremely data and time intense, or by a benefits transfer approach, where the willingness to pay of the same type of situation is thought to be transferable to the former Yugoslav Republic of Macedonia the former Yugoslav Republic of Macedonia under appropriate assumptions. No willingness to pay studies for new connections (e.g. to drinking water network) or for water quality improvement (drinking water, bathing- recreational water, non-use benefits use of water) are available for the former Yugoslav Republic of Macedonia15.

Because one of the project requirements is consistency with the methodology used in the previous benefits study, the willingness to pay method (benefits transfer approach) has been selected.

4.2.2 Benefits from improved drinking water quality and supply

The complete assessment of the benefits of drinking water involves the use of a willingness to pay (WTP) estimate for ‘clean’ drinking water. This methodology requires an estimate of the total number of households that stand to benefit from the implementation of directives affecting drinking water and subsequently attributing a value to these benefits.

12 European Risk Assessment dossier

13 World Health organisation

14 input of the former Yugoslav Republic of Macedonia experts

15 input of the former Yugoslav Republic of Macedonia experts

25 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report water. Where the existing WTP exercises look at quality improvements only, it may thus be unnecessary to distinguish between the population having access to public water supply and those that will gain new access. Indeed, the WTP transfer value we have used is based on quality improvements rather than new connections.

While it is clear that regarding all currently and newly connected households as beneficiaries could slightly overestimate the benefits as some households with existing connection have good quality water, the choice of only focusing the analysis on those households that would gain connection would likely lead to a much more significant underestimate. Furthermore, the linkage of cleaner water to the acquis Communautaire is more explicit than the linkage to increases in connection rates16. Despite this, the overestimation of benefits from quality improvements may be compensated by the negligence of a possibly EU-induced increase in the connection rate.

Connection percentage to public drinking water supply

According to the Census 2002, the percentage of households that live in dwellings connected to the public water supply system equals 88.6% or 499 914 households. With an average number of 3.6 household members this equals 1 799 690 people or 88.9% of the total population.

Estimate of the number (or percentage) of gains of new connections

Estimations for future drinking water demands are performed in the Expert Report on Water Resources Management for the Spatial Plan (ERWRM), covering two horizons 2010 and 2020. The population number is taken from the expert report "Projections on population and labour up to 2020". According to this report, there would be 2 078 670 inhabitants in the Former Yugoslav Republic of Macedonia in 2010; while in 2020 there would be 2 228 000 inhabitants. The growth rate for these two horizons is 0.41% and 0.67% respectively, while the average growing rate is 0.52%. The water supply norms (i.e. ‘required water supply’) are defined in accordance to the size of the cities, population life standard, economy development, culture and habits, etc, and are presented in Table 4-1.

Table 4-1: Future water supply norms in the former Yugoslav Republic of Macedonia (ERWRM)

Area Year 2010 Year 2020

(m3/capita/day) (m3/capita/day)

Skopje 0.500 0.550

Bitola, Kumanovo, Veles, Prilep, Ohrid, Struga, Stip, 0.450 0.500 Gostivar, Tetovo, Strumica

Skopje-Suto Orizari, Kicevo, Kriva Palanka, Kratovo, 0.370 0.400 Kavadarci, Negotino, Berovo, Pehcevo, Delcevo, Vinica, Kocani, Probistip, Sv. Nikole, Krusevo, Valandovo,

16 Currently there is no explicit legislative requirement for the extension of the drinking water network. However, it is clearly likely with economic development, the general implementation of the environmental acquis, and the existing policies of extending water supply to more households, that more households will become connected to drinking water supply in the near future. Indeed, a major indirect driver for this is likely to be the Urban Waste Water Directive, as agglomerations with more than 2000 inhabitants will have to have a waste water treatment plant and associated sewage system. It is common practice when digging up the road to ensure that both waste water / sewage networks and drinking water networks are implemented together given cost savings and obvious interconnections. Hence with the progress of the UWWT Directive one could expect progress with the drinking water network.

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Area Year 2010 Year 2020

(m3/capita/day) (m3/capita/day) Gevgelija, Dojran, Radovis, Resen and Debar

Rural areas 0.270 0.300

Using the water supply norms of Table 4-1 and the predicted number of inhabitants, the drinking water supply demands for 2010 and 2020 are calculated in Table 4-2 on a river basin scale.

Table 4-2: Future water supply norms in the former Yugoslav Republic of Macedonia on a river basin scale (ERWRM)

River basin Drinking water demands Drinking water demands 2010 (m3/year) 2020 (m3/year)

Vardar 246 974 200 289 454 100

Strumica 14 428 800 17 921 500

Crn Drim 24 199 200 29 013 900

TOTAL 285 602 200 336 389 500

There are many projects which improve the condition of water supply and sewage systems: • Water supply of village Pirok, in municipality Bogovinje • Water supply network in the village Strelci and Goreni, municipality of Oslomej • Reconstruction of a part of the water supply network in Debar • Water supply in Vasilevo, Angelci and Gradosorci • Water supply of municipality Novo Selo • Improvement of the water supply in surrounding areas of Skopje • Water supply Gostivar • Filter plant for drinking water in Probistip • Regional water supply system Petrovec • Water supply Radovis, 2nd phase • Water supply Berovo • Water supply system Kriva Palanka • Water supply system Aracinovo • Water supply system Cegrane and Forino • Water supply tank Strumica • Collectors and treatment plant in Makedonski Brod • Water supply system Brvenica • Regional water supply system Belcista • Water supply Pehcevo 1st phase

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• Regional water supply pipeline – Medjitlija • Main water supply pipeline from HS Lipkovo to filter plant in Kumanovo

From the list of projects it can be assumed that several new connections will be realised. However, the explicit number of new connections nor an estimate is available. The implementation date of each project is also not available.

In the previous benefits study, some country experts reported on the estimate for the number of new connections. The majority of experts who could make such an estimate gave an estimate of 5% of the total population. In the previous study, this percentage was applied to all accession countries in which more country-specific estimates had not been available. In absence of a more accurate estimate, we apply this percentage also to the former Yugoslav Republic of Macedonia. Adding the 5% estimate of new connections to the current connection rate of 88.6% yields a total share of 93.6% (or 528 126 households) which can be assumed to benefit from quality improvements of drinking water.

Impact of tourism on drinking water resources in the former Yugoslav Republic of Macedonia

There is no obvious impact from tourism on drinking water resources in the former Yugoslav Republic of Macedonia, except for Dojran lake. Lake Dojran is a part of Vardar River Basin District.

Water demands by the tourists on river basin basis for the year 1996 are presented in Table 4-3. The drinking water demands are estimated by the number of tourists and the water supply norm. This norm varies between 0.350 m³/tourist/day and 0.500 m³/tourist/day. The total drinking water demand by tourists for year 1996 was 6 258 000 m³. Table 4-3: Water demand by tourists in the year 1996 on river basin basis

River basin Water demands for tourists (m3/year) Vardar 2 041 000 Strumica 162 000 Crn Drim 4 055 300 TOTAL 6 258 300

It is obvious that in the Crn Drim river basin, where the two largest lakes Ohrid and Prespa are located (the major touristic locations), the water demand by tourists is the highest. There is no significant change in the number of tourists in the period from 1997 to 2003, so these data can be assumed as representative for the whole period mentioned. Hereafter an estimation of the future water demand for tourists is given, taken from the ERWRM report on ‘Development of tourism and organization of the touristic locations’. The applied water supply norms are from 0.420 m³/tourist/day up to 0.600 m³/tourist/day. Total drinking water demands for the tourists for the years 2010 and 2020 are presented in Table 4-4.

Table 4-4: Total drinking water demands by tourists for the years 2010 and 2020 (ERWRM)

River basin Water demand for tourists Water demand for tourists 2010 (m3/year) 2020 (m3/year) Vardar 2 972 400 3 759 400 Strumica 243 000 311 900 Crn Drim 6 080 000 7 800 500 TOTAL 9 295 400 11 871 800

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Drinking water quality

All water, classified as class I according to the Regulation for classification of water of the former Yugoslav Republic of Macedonia, can be used for the production of drinking water. With this Regulation the classification is made of the surface waters / water courses, natural and artificial lakes / and of groundwater. This Regulation shall not apply to mineral and thermal waters. Class I is defined as very clean, oligotrophic water, which is in its natural state and which can, with possible disinfecting, be used for drinking and production and processing of food product and is suitable for mating and cultivation of noble types of fish – salmonides. The buffering capacity of the water is very good. It is constantly saturated with oxygen, with low content of nutrients and bacteria, contains very slight, occasional anthropogenic pollution with organic matter, but not with inorganic matter. Drinking water quality standards, the quality of the water that is provided by the water supply companies and measured before the water is transported to the costumers, are mentioned in the annex of the Ordinance on drinking water.

The Republic Health Institute performs the monitoring of the drinking water quality for Skopje, ten regional health institutes perform the monitoring of the drinking water quality throughout the country. Surface water, ground water and springs used for water supply are being monitored. It is important to emphasize that public water supply utilities also have their own laboratory for controlling the quality of the drinking water.

The chemical quality of drinking water varies with the origin of drinking water sources. Almost all karstic and surface water, and significant amounts of well water, are notably short in fluoride, which helps prevent tooth decay. Some wells in Veles, Shtip and Kocani have relatively high contents of iron and manganese, and nitrates range between 1 and 5 mg/l. During the summer higher nitrate concentrations have been found in wells in Prilep and Radovish (10-15 mg/l). Both wells are situated in regions where the land is intensively used for agriculture. The nitrite content is generally below 1 mg/l. In some wells iron and manganese impair the organoleptic quality of the water (Veles, Stip, Kocani and some rural settlements). Toxic parameters, such as lead, arsenic, chromium and cadmium concentrations meet WHO standards. A few wells in rural settlements have unusually high levels of for ammonia, nitrite, nitrate and

KMnO4. Five per cent of all wells assessed by the Public Health Institute are microbiologically contaminated. The Ministry of Health possesses some date on concentrations of pesticides in springs used for drinking water purposes. However, the data could not be provided.

In Table 4-5, total number of samples and number of samples not meeting physico-chemical or microbiological standards, for the period 1997-2003 are presented.

29 % ulation for g Number of samples not meeting standards round round g

of water related directives Benefits assessment period 1997-2003 (Republic Health Institute) (surface water, water, (surface classification of waters) classification of Microbiological parameters (cfr. Re water and springs) water and springs) % Number of samples

30 Number of samples not samples not Number of meeting standards round round g water supply monitoring (sampling) for water supply monitoring water and springs) water and springs) Number of samples water, (surface Physico-chemical parameters (cfr. Regulation for Physico-chemical parameters (cfr. waters) classification of th environmental acquis - final report acquis - final th environmental

connected to the public water to connected supply system Table 4-5: Sanitary compliance of drinking Sanitary compliance Table 4-5:

17 No data available No data available Year % of total population 2003 73 2002 71 2001 71 2000 69 1999 66 1998 21 880 1997 19 005 65.3 21 698 10 512 2 560 11 531 1 531 1 960 22 182 709 11.7 21 721 596 8.0 18 988 9.0 415 21 938 6.7 2 540 10 512 5.2 11 531 2 355 1.87 2 575 23 207 12.0 213 12.4 231 11.7 157 2.0 2.7 0.67 The former Yugoslav Republic of Yugoslav Republic The former Macedonia

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From Table 4-5 it can be concluded that generally the number of samples not meeting the quality standards is low. According to their data, drinking water quality in the public water supply systems is very good and safe to use.

The methods of analysis, frequency and standards do not yet comply with EU regulations and WHO Drinking Water Guidelines. The Draft version of a new By-Law (expression used when the real or last name of the Law is not known) is ready for its adoption and it approximates the EU regulations as well as WHO Drinking Water Guidelines. No information is available about compliance with the EU monitoring strategy.

In order to analyze data on the type of water resource which is used for drinking, amounts of used water and to assess the water losses in the systems, two questionnaires were prepared for all larger water supply systems. The first was prepared for NEAP 1, The second was for the Expert Report on Water Resources Management for the Spatial Plan (ERWRM). Results are presented in Table 4-6.

Table 4-6: Type and quantity of water intake and losses

Year Type and quantity of intake water (m3/s) Consumed Assessed water water Springs Groundwater Surface water (m3x106/year) losses (%)

1994 (NEAP) 5.49 2.296 3.143 121.858 10-60

1997 (ERWRM) 4.93 2.645 2.485 97.318 10-60

4.2.3 Benefits to recreational users of water

The following Directives are likely to generate benefits to recreational users of water: Bathing Water, Urban Waste Water, Fishlife, Dangerous Substances and Nitrates. The quantification process requires a calculation similar to that for health benefits in which expert judgement is substituted for dose-response coefficients. The following data are required for this quantification process: • The change in the water quantity and quality due to the implementation of a directive or relevant directives; • How this change will affect the current water-based recreational behaviour (including swimming, angling etc); • The affected population (usually referring to mean current population undertaking the relevant recreational activity and the change in this population with the improvement in water quantity and quality after the implementation of the relevant directives).

There could be a number of reasons why a Directive will have an effect on the quality (and quantity) of water used for recreation. However, there is very limited information about what the implementation of a Directive will entail and hence its resulting improvements to recreational waters in quantitative terms. Although by all means not the only directive of relevance, there is some work about the Urban Waste Water Directive in this context. This Directive will have a positive effect on the quality of inland waters and, in some cases, groundwater. An assessment of the effect on the quality of these various water resources is not available. However, some estimates of the effects on wastewater discharges are available from the estimated reductions of phosphorous (P-tot) and nitrogen (N-tot) discharges as a result of the full implementation of the urban wastewater directive.

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Bathing water quality

According of Regulation for classification of water class 1 and 2 are appropriate for bathing purpose: • Class1: this is very clean, oligotrophic water, which in its natural state which can, with possible disinfecting, can be used for drinking and production and processing of food product and is suitable for mating and cultivation of noble types of fish – salmonides. The buffering capacity of the water is very good. It is constantly saturated with oxygen, with low content of nutrients and bacteria, contains very slight, occasional anthropogenic pollution with organic matters but not with inorganic matters; • Class 2: this is a very clean, mesotrophic water, which in its natural state can be used for bathing and recreation, water sports, production of other types of fish (cyprinids), or which can be used – after usual methods of purification/coagulation, filtration, disinfection etc. for drinking and production and processing of food products. The buffering capacity and oxygen saturation is present throughout the year. The loadings may lead to slightly increased primary productivity.

Bathing water standards exist in the former Yugoslav Republic of Macedonia, however they were not explicitly provided. As such, a comparison with the European bathing water standards is not possible. An alternative is to use the Regulation for Classification of Water (The Official Gazette of the former Yugoslav Republic of Macedonia No. 18-99). Since class I and class II waters can be assumed to be suitable for bathing, the parameter values for those water classes mentioned in the regulation can be regarded as bathing water standards and as such be compared to the European values (see Table 4-7).

Table 4-7 : Comparison between the former Yugoslav Republic of Macedonia bathing water standards and EU bathing water standards (76/160/EEC) – microbiological parameters

Bathing Water Directive (76/160/EEC) Regulation for classification of Water (The Official Gazette of the former Yugoslav Republic of Macedonia No. 18- 99) Parameter Unit G1 I2 Unit Class I Class II Total coliforms /100 ml 500 10 000 /100 ml 5 5-50 Faecal coliforms /100 ml 100 2 000 /100 ml NA3 NA Salmonella / 1 litre - 0 NA NA Entero viruses PFU/10 - 0 NA NA litres N° of aerobic No No / ml NA NA bacteria standard standard 1 G = guide; 2 I = mandatory 3 NA = not available

Water quality monitoring of lakes Ohrid, Prespa and Dojran regarding physical-chemical parameters and bacteriological is performed by the Republic Health Institute, while detailed monitoring of physicochemical and microbiological parameters of the lakes Ohrid and Prespa are performed by Hydrobiological Institute from Ohrid.

Physico-chemical parameters Microbiological parameters

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Year Lakes Number Number of samples not Number Number of samples not of meeting standards of meeting standards samples samples (%) (%) 1997 Ohrid 123 0.8 123 4.0 Prespa 77 0.6 77 23 Dojran 30 100 30 0 1999 Ohrid 130 4 130 0 Prespa 68 12 68 20 Dojran 42 100 42 0 2000 Ohrid 111 5.4 111 5.4 Prespa 65 32 65 23 Dojran 42 100 42 0 2004 Ohrid 111 2.7 111 12.6 Prespa 60 26.7 60 13.3 Dojran 7 100 7 0 2005 Ohrid 127 3.1 120 5.8 Prespa 60 0.0 60 0.0 Dojran 8 100 8 0 Source: Republic Health Institute It is obvious that Ohrid Lake has the best water quality as bathing water, then comes Prespa and finally Dojran Lake, which according to the physical-chemical parameters is not suitable at all for bathing. All samples of Lake Dojran in the years 1997, 1999, 2000, 2004 and 2005 did not meet the physical- chemical standards. The data are illustrated in the following graphs.

Bathing water quality - Ohrid Lake

8 % 6

0 1997 1999 2000 2004

Physico-chemical % Improper Microbiological % Improper

Figure 4-1: Bathing water quality of Ohrid Lake (Republic Health Institute)

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Bathing water quality - Prespa Lake

20 % 15

0 1997 1999 2000 2004

Physico-chemical % Improper Microbiological % Improper

Figure 4-2: Bathing water quality of Prespa Lake (Republic Health Institute)

Bathing water quality - Dojran Lake

120 100 80

% 60 40

20 0 1997 1999 2000 2004

Physico-chemical % Improper Microbiological % Improper

Figure 4-3: Bathing water quality of Dojran lake (Republic Health Institute)

Mineral and thermal mineral water springs are used as spas, for tourism, and as a source of bottled water. Water quality and safety meet national standards. Only some artesian wells presented high mineralization with the presence of iron, manganese and inorganic ammonia.

A new Regulation about bathing water standards is in preparation. The standards will be those of the EU Bathing Directive. In the existing Regulation for categorization of water, water is classified as bathing water if it meets first or second class requirements.

Wastewater treatment infrastructure

Current situation

According to data from Census 2002, from the total number of dwellings (697 529), 417 653 or 60% are connected to the public sewage system. 143 353 or 21% of the dwellings have septic tanks and 85 007 or 12% of the dwellings discharge their wastewater directly. Compared with the connections to the public water supply systems, there is significant difference. Almost 180 000 dwellings, which are connected to

34 ARCADIS ECOLAS / IEEP / Metroeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report the public water supply systems are not connected to the public sewage system. It is obvious that there are big differences in percentage between the cities. All this leads us to the conclusion that the number of connections to public sewage is not adequate compared to those for water supply.

Data on amounts of industrial wastewater by point of discharge and type of treatment (branch of industry, discharge into sewage system with/without pre-treatment, discharge into natural waters with/without treatment plant) and on industrial discharges of nutrients are available from the Cadastre of pollutants of waste water and dangers and solid waste. According to the new organization set up of the Ministry of Environment and Physical Planning, created April 2007, the Division for Cadastre and Modelling (which is part of Macedonian Information Centre) is responsible for establishing and managing the Cadaster in the former Yugoslav Republic of Macedonia. This kind of information will be available on the web site very soon, maybe by the end of this year.

No distinction is made between discharge into the sewage system and discharge into natural water. It is important to note that the discharged waste water must be of the same quality class of the recipient, according to the Regulation for classification and categorization of waters in the former Yugoslav Republic of Macedonia. The Ministry of Environment is the responsible authority, the Inspectorate controls this activity.

In the former Yugoslav Republic of Macedonia six water treatment plants exist: • M.Brod: 5000 p.e, in compliance with Annex IB of UWWT Directive • Kumanovo: 100.000 p.e, in compliance with Annex IB of UWWT Directive • Ohrid-Struga (regional WWTP): 120.000 p.e, not in compliance with Annex IB point 1 of UWWT Directive • Resen: 15.000 p.e, not in compliance with Annex IB point 1 of UWWT Directive, and point 4 of UWWT Directive regarding sludge treatment • Dojran: 10.000 p.e, not in compliance with Annex IB point 1 of UWWT Directive, and point 4 of UWWT Directive regarding sludge treatment • Sv.Nikole: 35000 p.e, not in compliance with Annex IB point 1 of UWWT Directive, and point 4 of UWWT Directive regarding sludge treatment

An overview of the waste water treatment infrastructure is given in Table 4-8.

35 e for Health e for Health 1.990.000 2.025.000 2.050.000

nefits of compliance with water related directives 45,00% 45,00% 46,00% 49,00% 45,00% Republic of Macedonia (Republic Republic Institut 5,00% 5,00% 5,00% 5,00% 4,50% 4,50% 4,50% 4,50% 4,50% 0,50% 0,50% 5,00% 5,00% 1.975.000 1.978.000 1.980.000 95,00% 95,00% 95,00% 95,00% 95,00%

36 Protection) 1.965.000 1.970.000 1.972.000 tment infrastructure in the former Yugoslav

th environmental acquis - final report acquis - final th environmental 5,00% 5,00% 5,00% 5,00% 5,00% 5,00% 5,00% 5,00% 45,00% 44,00% 43,00% 44,00% % of pop. % of pop. % of 4,50% 4,50% pop. % of pop. % of 0,50% 0,50% pop. % of 5,00% 5,00% pop. % of pop. % of pop. % of pop. 0,50% 0,10% % of 95,00% 95,00% pop.

Table 4-8: Overview of the waste water trea the waste of Overview Table 4-8:

ARCADIS ECOLAS / IEEP / Metroeconomica/ ARCADIS ECOLAS / IEEP Metroeconomica/ Enviro L 06/11347 - fYRoM Benefits of Compliance wi Be

treatment 1.955.000 1.945.000 National resident population 1000's 1998 1999 2000 1995 1996 1997 1992 1993 1994 1990 1991 % of national resident population connected to sewage Total public 1. treatment treatment 1.1 Mechanical only treatment 1.2 Biological treatment 1.3 Advanced technology sewage 2. Other treatment 3. Total public sewerage with treatment 4. Public sewerage without treatment sewerage 5. Total public 6. Non public sewerage or independent sewerage 6.1 Of which with independent treatment ARCADIS ECOLAS / IEEP / Metroeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

Interpretation of the data shown in Table 4-8, for example for the year 2000: 0.5% of the population is connected to an independent sewerage (10.250 persons). 0.1% of them are connected to an independent sewerage with treatment (10 persons), 49% of the population is connected to a public sewage system (1.004.500 persons). 95% of this part of the population is connected to a public sewage system without treatment (954.275 persons). 5% of this part of the population is connected to a public sewage system with treatment (5022 persons). 5% of this population is connected to a public treatment plant with mechanical treatment only (251 people), 4.5% also have biological treatment (226 persons), 0.5% have other sewage treatment (25 persons).

It is also important to say that tourist premises are usually connected to the sewage system. Due to the additional load provoked by the tourists during certain period of the year, separate estimations were performed for wastewater quantities discharged by the tourists. In ERWRM, the wastewater quantities have been estimated by the number of tourists and the wastewater norm. This norm is from 0.280 m³/tourist/day to 0.400 m³/tourist/day for Skopje. Actually, wastewater norm is 80% of the water supply norm. For estimations, time duration of the touristic season is also taken into consideration. Depending on the type of touristic activity, time duration is from 120 to 270 days per year, while for Skopje as capital of the state and cultural, economic and trade center, it is 365 days. The total wastewater quantity from tourists for the year 1996 is 5 006 600 m³.

Expected evolution under the Urban Waste Water Treatment Directive

The need for Waste Water Treatment Plants according to the Urban Waste Water Treatment Directive (UWWTD) can be estimated on the basis of agglomeration sizes across the former Yugoslav Republic of Macedonia. However, no data are available on the population size per settlement.

The minimum level of treatment needed under the UWWTD is biological treatment. In so-called “sensitive areas” nutrient removal is required for agglomerations above 10 000 PE. A classification system on sensitive areas as specified in the UWWT Directive (which makes a difference for the required level of treatment), does actually not exist in the former Yugoslav Republic of Macedonia. In the new Draft law of water all the requirements of the UWWT Directive will be transposed and in the future a subsidiary law with these requirements will be created. As no information on sensitive areas is available, it has been assumed that all areas can be considered as sensitive, leading to a relatively high level of reduction.

Although it is a well known fact that urban wastewater is one of the most dangerous pollutant sources of the surface water in the country, there is no data on the urban wastewater quality, due to lack of systematic monitoring. In the Water Law (Off. Gazette of RM, No. 4/98), there are provisions that any wastewater producer (individual companies) must install, operate and maintain measuring devices, and must provide wastewater quality analysis. However, in practice, the law is not respected. Only the laboratory of the Water Supply Utility in Skopje has equipment for performing analysis, but still there is no systematic monitoring and data transfer. WWTPs in the former Yugoslav Republic of Macedonia regulary monitor the quality of waste water, and disseminate the date to the municipality.

Due to this, recommendations given in the literature are applied (American Public Health Association): • N-tot = 12,8 mg/capita/day • P-tot = 2,3 mg/capita/day

According to these recommendations and estimated quantities of wastewater discharged per day, the nutrient content of raw wastewater is assessed in Table 4-9.

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Table 4-9: Calculated nutrient content of wastewater

River Basin Urban population Wastewater N-tot (kg/day) P-tot (kg/day) (m3/day)

River Vardar 1.066.533 119.783.943 13.652 2.453

River Strumica 51.534 6.937.135 660 119

River Crn Drim 81.901 10.576.715 1.048 188

Total 1.119.968 137.252.793 15.360 2.760

Due to limitations in data availability, it has not been possible to estimate the residual amount of N-tot discharged and the residual amount of P-tot discharged.

Given the fact that approximately all water courses in the former Yugoslav Republic of Macedonia are classified in classes I-III with respect to water quality objectives (WQO) we can safely assume that nutrient removal will be required for all sewage treatment plants above 10 000 PE under the Urban Waste Water Treatment Directive.

Situation after the implementation of the Urban Waste Water Treatment Directive

Due to limitations in data availability, it has not been possible to estimate the reduction of N-tot and P-tot discharges due to the Urban Waste Water Directive

While the reductions in N and P are important for the assessment of the extent of benefits, it has not been possible to link the information about the reduction in the N and P discharges to potential benefits to recreational uses of water. This is not only because such a link is missing but also because there are other factors unrelated to N and P concentrations in water that affect the quality of a water-related recreational experience.

Thus, the assessment of recreational benefits that will be presented in section 4.3.3 follows a similar approach to the assessment of health benefits. This requires identification of the affected population and an estimate of the demand they have for better water quality for recreational purposes. This demand is based on the relevant WTP estimates found in the literature. Since such demand can be met by implementing a number of Directives and combinations of Directives, it would be wrong to assign these values to the predicted reductions in P and N concentrations alone.

Strictly, the best estimate for the affected population would be those undertaking water-related recreational activities. Fishermen fishing without a license might occur on the small rivers or lakes where there are not many people. There is no data on which specific rivers are already regularly used for recreation. Other data on the specifically affected population could not be collected. As such the total population, including domestic tourists, where appropriate, can be assumed to be the measure for ‘affected population’. Using this definition, willingness to pay studies that only address specific users should not be regarded as representative. Thus, the willingness to pay figures have been taken from studies that use a broader definition of the affected population.

An increase in recreation is expected when the river water quality will improve.

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4.2.4 Changes in River Ecosystems

According to BOD values for the pelagical (water column) part of Ohrid Lake, results indicate water with oligotrophic character. Rivers tributaries to Ohrid Lake, Sateska, Koselksa, Velgoska and Cerava are overloaded with organic substances. In certain periods the water quality of these rivers is in the range of moderately eutrophic water to highly eutrophic water. (these river tributaries are located downstream of Ohrid Lake). These results are a confirmation of the numerous unsolved problems that overload these rivers. Regarding phosphorus pollution, enormous quantities of phosphorus flow into Ohrid Lake via River Velgoska, but also via other rivers tributaries. In the Ohrid Lake, average concentration of total phosphorus ranges from 2,1 µg/l up to 8,37 µg/l. Lake Ohrid is still oligotrophic, but real danger exists from the rivers tributaries. The collecting system for the wastewater around the Lake Ohrid has very positive results for urban waste water, but some measures must be undertaken to solve the problems with the wastewater which flows into the lake, due to houses not connected to the system and with irregular discharge of wastewater. Nitrogen loading also enters the lake, via the same rivers. As a conclusion, it can be stated that the oligotrophic character of the Lake Ohrid pelagial zone is not disturbed, but some of the loadings tend to increase the character of lake Ohrid to eutrophic.

In the Lake Prespa pelagial zone, in summer, the concentration of oxygen rapidly decreases (0,66 mg/l, August). However, in the periods of stratification concentrations of dissolved oxygen show an enormous increase. According to BOD values for Prespa Lake pelagial, results indicate that the water in summer has a mesotrophic character. In Prespa Lake pelagial organic overload was recorded, which is normal considering the shallowness of the lake. High quantities of phosphorus were registered in the Prespa Lake pelagial zone. The quantity of phosphorus registered in Prespa Lake tributaries indicates that out of the total quantity of phosphorus, 61% comes from the River Golema and the rest comes from the other two rivers. In Prespa Lake pelagial high concentrations of total nitrogen are registered. Generally the water in Prespa Lake is mesotrophic with exception of some periods when it becomes oligotrophic (in the winter period and spring, when the temperature is low and the quantity of water increases). These periods are the same each year. The discharging of untreated wastewater directly into the lake, contributes to the above described condition of the water.

No information is available on reduction in species numbers in lakes Ohrid and Prespa due to the loads of organic substances and nutrients.

There is no sufficient and appropriate data on groundwater yields, quantities or quality. Observation and examination of the groundwater has not been performed systematically and continuously, except for the local demands for certain regions. More detailed examination has been carried out only within the period 1963-1975, when hydrogeological units have been identified for basins, of upstream parts of the rivers Vardar, Treska, Crn Drim, Crna Reka, and downstream parts of the rivers Vardar and Eastern Macedonia.

A river quality classification system exists in the former Yugoslav Republic of Macedonia. Based on the use and the water purity the surface waters, water courses, natural and artificial lakes and groundwater are categorized in 5 classes, according to the Regulation for Classification of Water in the former Yugoslav Republic of Macedonia (see Annex 1). This Regulation does not apply to mineral and thermal waters. The concept “ecological status” is not incorporated in the current legislation on water quality of the former Yugoslav Republic of Macedonia. The technical part of WFD, Annexes is being transposed to national legislation. At the moment no information is available on ecological status.

Figure 4-4 depicts the quality of surface waters in the former Yugoslav Republic of Macedonia in the year 1996, according to the quality classes defined by the Regulation for Classification of Water. The length of the different sections with a certain water quality can not be estimated.

39 ARCADIS ECOLAS / IEEP / Metroeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

Figure 4-4: Quality of surface waters in the former Yugoslav Republic of Macedonia in the year 1996

Generally, the current water quality condition of most of the surface water is not satisfying the requirements of the secondary legislations (regulation or ordinance). Urban wastewater is the main pollution source, discharged directly into the rivers and streams without treatment. Other important pollution sources are wastewater from chemical, food processing, ferrous and leather industry as well as from animal farms. The largest cities in the former Yugoslav Republic of Macedonia, like Bitola, Prilep, Strumica, Tetovo, Gostivar, Veles, and Stip have no wastewater treatment plant. Some of the rivers function as collectors for the wastewater: Dragor in Bitola, Kumanovska reka after Kumanovo, Bregalnica, Crna Reka. Industries also do not treat the wastewater. Besides the orgaic pollution from food processing industry and slaughterhouses, pollution with heavy metals (Cr, Fe, Cd, Pb and Zn) is especially dangerous.

The condition of the surface water quality is better in areas with low population density and without industry. The trend of decreasing pollution, which is shown for river Vardar, is a positive one for the water quality but unfortunately, this trend is a result of decreased intensity of industry's activities and not due to measures taken to protect the surface water.

According to the requirements of the CARDS 03 project for the improvement of the management of transboundary water resources in the Vardar/Axios River Basin and the package 2 - Measures to Upgrade the Existing Monitoring Network based on the report ‘Assessment of the existing monitoring system including recommendations and measures for putting it into compliance with the requirements of WFD’ the preparation of a River Basin Management Plan for the Vardar River, in line with the requirements of the EU WFD, is expected.

For rivers, no specific data are available on the compliance with the water quality standards.

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Monitoring of the ground water started in 1949 in Skopje and its surroundings, while in 1979 groundwater quality monitoring started on 20-30 sample points in the same region. In that period, with the same applied methodology, groundwater in Pelagonija, Polog and Strumica was monitored at 10 sample points in each region. Due to budget reduction, this monitoring process was stopped (the process of reduction of same monitoring points was a long period between 1985 and 1990). From 115 piesometric pipes installed, only 30 are still functioning. But this 30 pipes mesure the quantity of water.

Unfortunately, there is no systematic quantity and quality monitoring of the groundwater in the former Yugoslav Republic of Macedonia. This area is the weakest point in the Macedonian monitoring system. Groundwater is very important due to links between surface water and groundwater integrated approach, especially in karst areas and alluvium area along the riverbeds.

Effect of the implementation of the EU water acquis

The following Directives are likely to lead to changes in the quality of river ecosystems: Water Framework, Bathing Water, Urban Waste Water, Shellfish waters, Surface Water for Drinking and Nitrates.

As it was not possible to assess what the precise effect of the implementation of the various water directives (mainly Urban Waste Water Directive, the Nitrate Directive and the Dangerous Substances Directive) would be on river quality, it has been assumed that the full implementation of the various directives will have the effect that the real water quality in all watercourses will be such that the designated Water Quality Objective class I or II will be met.

This seems a reasonable assumption, as the main cause of not meeting the WQO is the discharge of various substances by sewage and industrial discharges and these discharges will be dealt with by the directives.

4.2.5 Future strategy on water management

There are several investment plans in wastewater treatment management (MoEPP): • Water Programme - allocated for financing and co-financing of construction and rehabilitation of infrastructure projects - water supply, sewage and waste water treatment stations, in total amount of 30 000 000 MKD • Water Programme - were allocated as national contribution to international financed projects in the field of sewage construction and wastewater treatment, in total amount of 14 500 000 MKD - Water program financed by Swiss government (8 000 000 CHF) which include pump stations and collector system in Ohrid, wastewater treatment station and secondary network and water supply station adaptation/reconstruction in Bregalnica river area, as well as construction of purification station - Water supply and waste Water Collection and treatment for Tetovo, Austria government - Resen sewage system financed by GEF/UNDP - Swiss Compensation fund: construction of wastewater main collector and treatment plant in Berovo • National financial investments in wastewater management (Ministry of Transport and Communication) • Annual program for water supply and wastewater treatment systems construction. In 2006, the allocation amounted 120 000 000 MKD • The Municipalities Environmental Action Programme – MEAP (2001-2007) - 17.3 million euros is a loan from the European Bank for Reconstruction and Development

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- 5.1 million euros is a contribution of the Government of the former Yugoslav Republic of Macedonia (In 2006 allocation from the budget was 40 000 000 MKD) - 5.1 million euros is a grant from the Government of the Federative Republic of Germany (KfW) - 10.56 million euros (16.3 million CHF) is a grant from the Government of Switzerland • Sewerage in the Municipality of Suto Orizary (2002-2006) – Austria government (750 000 euros), co-financing former Yugoslav Republic of Macedonia (MTC 150 000 euros and City of Skopje 90 000 euros) - (In 2006 allocation from the budget was 5 500 000 MKD) • Water Supply in Inhabited Places in Skopje Outskirts (2004 -2006) –Japan government (cc 5 100 000 euro), co-financing former Yugoslav Republic of Macedonia (5 000 000 MKD) - Construction of water supply facilities in the target areas which will improve the present water supply situation in the areas around Skopje and contribute to increase the rate of population. (In 2006 allocation from the budget was 1 000 000 MKD)

Swiss Compensation fund – support to the budget of the former Yugoslav Republic of Macedonia, 2 900 000 MKD for 2006 (water supply and sewage systems construction)

4.3 MONETARY ASSESSMENT

The monetary assessment is based on the benefits transfer procedure, which involves borrowing the relevant WTP estimates from the existing literature (in other words, applying results from one country and transferring them to another, with appropriate weightings to reflect GDP differences in terms of purchasing power parities). The benefits transfer procedure represents a feasible alternative where country-specific WTP estimates are missing, as in the case of the former Yugoslav Republic of Macedonia.

Since it has not been possible to estimate the health impacts of water directives in quantitative terms, WTP per unit of impact (such as to avoid a case of morbidity) cannot be used in this part of the assessment. In order to implement the approach adopted here, relevant WTP estimates that are expressed per unit of the affected population (adult individuals or households) and the relevant ‘affected’ population needs to be identified. This section presents the WTP estimates used, while the discussion about affected population can be found in section 4.2.

Total WTP for clean water (drinking and recreational) indicates a lower limit for use and non-use benefits. There may be other use and non-use values that have not been identified or that are not included in the existing WTP estimates. Where WTP is related to avoided health damages, the WTP numbers are based on perceived rather than actual health risks. If people are not well informed about the health risks, their WTP may underestimate the actual health benefits. However, it should be noted that the benefits are based on the assumption that certain water quality improvements can actually be achieved. The analysis does not address the question whether and how the demand for clean water will be met (whether by one or a combination of water related directives or by any other measure).

4.3.1 Benefits of Cleaner Drinking Water

Choice of WTP

For assessing the benefits of cleaner drinking water, we basically had two options: (i) either update all WTP studies; or (ii) use the same WTP studies that were used in the previous studies for Croatia and for the 13 previous Candidate Countries. For reasons of comparability, we chose the second option, but we re-investigated the robustness of the figures.

42 ARCADIS ECOLAS / IEEP / Metroeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report a. Lower bound WTP estimate: this estimate is based on Hanley (1989) which elicited the WTP responses of a sample in the UK for nitrate content of drinking water to meet the standard of 50 g/m3 of water. The result of this study is Euro 25/household/year (in 1999 prices); b. Upper bound WTP estimate: this estimate is the average of the results of the following studies: Jordan and Edwards (1993), Schultz and Lindsay (1990), Edwards (1988), Power (1991) and Mitchell and Carson (1986). All five measure ‘WTP to avoid groundwater contamination’. The causes include contamination by fertilisers and pesticides and WTP reflects the households’ concern for clean drinking water. An average of these five studies (Euro 650/household/year in 1999 prices) is taken. We are no longer confident that the lower bound estimate for the WTP for cleaner drinking water is a realistic figure, given the limited coverage of pollutants in the WTP estimate. We have reasons to think that the resulting WTP of 25,2 €/household/year (in 1999 prices) is a fundamental underestimate. It is apparent that the upper bound estimate is more representative of the benefits than the lower bound estimate and therefore we decided to not longer include the lower bound estimate in our evaluations.

Besides this aspect we largely follow the same approach as in the study for the previous candidate countries, with the exception – as in the Croatia study - that the number of benefiting households is based on the expected connection rate of 91% (for details see section 4.2) rather than on the total number of households.

Choice of population numbers affected

Benefits of improved drinking water will accrue (i) to households that have a new connection to water supply, and (ii) to households that already have water supply, but are guaranteed better quality water. In 2002, the total number of households in the former Yugoslav Republic of Macedonia was 564 296 and the connection rate to public water supply is 86%. Assuming additional new connections to public water supply for 5% of the former Yugoslav Republic of Macedonia households, 91% (or 631 724 households) can be assumed to benefit from quality improvements of drinking water. For a more detailed justification and description of the assumptions and data sources, please refer to section 4.2.

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Table 4-10: Willingness to pay for cleaner drinking water Country WTP USA GDP/capita WTP No. of High WTP Euro 1999 Euro 1999 benefiting households (PPP) country

(high) relative (high) Million Million Euro/year

to USA B D F=B*D G F*G Former 650 0.17 110.5 0.528 58 Yugoslav Republic of Macedonia Previous CC* 650 0.23 149.5 58.712 8777 * The figures given in this row apply to the aggregate of the previous candidate countries Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia, and Turkey. Any averages are weighted averages.

The total benefits of clean drinking water are estimated to amount to around 58 million EUR/year upon full compliance.

4.3.2 Bathing and other surface water quality – use values

Inland surface waters

The following table presents the benefit estimates for inland surface waters.

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Table 4-11: WTP for cleaner inland surface water

Country WTP WTP GDP/capita GDP/capita WTP WTP Benefiting Low WTP High Latvia Balaton Euro 1999 Euro 1999 country WTP Euro Euro 1999 1999 (PPP) (PPP) country population Ready Mourato et al. 1999 2002

(low) (high) relative relative (low) (high) Million Million Million Euro/year Euro/year

to Latvia to Hungary

A B C D E=A*C F=B*D G E*G F*G Former 5.7 22.5 0.74 0.49 4.2 11.0 2.02 8.5 22.3 Yugoslav Republic of Macedonia Previous ------CC* * In the previous study on 13 CC, the benefits of cleaner inland surface waters were not calculated separately.

Choice of WTP

Ready et al. (2002) estimated the benefits from making the Gauja river in Latvia suitable for swimming and fishing at Euro 5.7 per person and year. This study reflects a rather low estimate, such that this WTP figure is suitable as a lower bound.

Mourato (1999) received an average WTP response of Euro 22.5 per person and year for a clean-up programme of the Hungarian Balaton lake. Due to the great tourist importance of the Balaton lake in Hungary, this estimate can be regarded as rather high, which is why we use it as an upper bound. It should be said, however, that much higher figures could be produced by transferring US estimates for angling alone. A large number of US studies give WTP values for angling of between 57 and 380 Euros per household and year (see general report). However, we regard the transferability if these studies as limited, especially in comparison with the studies from Latvia, which explicitly includes angling benefits, and from the neighbouring country Hungary.

Choice of population numbers affected

The studies used for benefit transfer measure WTP per person of the general population. The WTP figures are averages across the part of the population who undertake water-related recreational activities and the part that do not. The total population of the former Yugoslav Republic of Macedonia was assumed to benefit from the bathing water quality improvement.

4.3.3 Improved river ecosystem quality – non-use value

45 ARCADIS ECOLAS / IEEP / Metrcoeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report value of improving river ecosystem quality is estimated to amount to 0.21 million EUR/year upon full compliance (see Table 4-12).

46 WTP for WTP for the total change (Million Euro year) 0.21

Million Euro Million Euro WTP for fair fair WTP for to good ( year)

Million Euro WTP for poor to to poor WTP for good ( year) nefits of compliance with water related directives

erages. erages. f and Slovenia. Slovakia, Romania, Poland, thuania,

% of rivers % of classified as 'fair' (former Yugoslav Republic o Macedonia: class III)

% of rivers % of classified as 'poor' Yugoslav Republic o Macedonia: IV classes & V)

River length (km)

otal no. no. otal T of households (former Million data to carry out this analysis. Any averages are weighted av Any averages data to carry out this analysis. 0.0007 0.564 51% 977 0.001 58.712 330213 5% 39% - 40% 0.07 - 0.15 2373.0

WTP per WTP per HH, km & yr fair to good Euro 1999 Li Latvia, Czech Republic, Bulgaria, candidate countries previous

WTP per WTP per HH, km & yr poor to fair Euro 1999

environmental acquis - final report acquis - final environmental r Water Quality – Non-use Values r GDP/ capita Euro 1999 (PPP) country country relative to UK

UK WTP UK WTP per HH, km & yr fair to good Green and Willis 1996 Euro 1999

UK WTP UK WTP per HH, km & yr poor to fair Green and Willis 1996 Euro 1999 For the other previous candidate countries there was insufficient For the other previous candidate countries there was insufficient * The figures given in this row apply to the aggregate of the * The figures given

Country Former 0.0018 0.23 Yugoslav 0.0029 Republic of 0.0078 Macedonia A Other CC* B 0.0078 0.0029 0.34 C 0.0027 D=A*C E=B*C F G H I J=(D+E)*F*G*H K=E*F*G*I L=J+K

ARCADIS ECOLAS / IEEP / Metroeconomica/ ARCADIS ECOLAS / IEEP Metroeconomica/ Enviro L 06/11347 - fYRoM Benefits of Compliance with Improvements to Rive Table 4-12: Be ARCADIS ECOLAS / IEEP / Metroeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

Choice of WTP

The study chosen for benefits transfer to estimate the non-use values attached to the improved river ecosystem quality is the one by Green and Willis (1996). This study elicits the non-use value attached by UK households to the changes in the classification of rivers from ‘poor’ to ‘fair’ and ‘fair’ to ‘good’. WTP for a change from ‘poor’ to ‘fair’ is given as Euro 0.0078 per UK household, km of river, and year (in 1999 prices). The respective WTP number for a change from ‘fair’ to ‘good’ is calculated as Euro 0.0029.

For the purpose of this study, it is assumed that implementation of the environmental acquis will lead to ‘good’ water quality in all rivers, which corresponds to classes I and II. Class III is considered to be ‘fair’ quality and classes IV and V are regarded as ‘poor’ quality. This implies that class III rivers will be subject to the change from ‘fair’ to ‘good’ (WTP: 0.0029 Euros per UK household, km and year). Classes IV and V will be subject to the change from ‘poor’ to ‘good’ (WTP: 0.0078 + 0.0029 = 0.0107 Euros per UK household, km and year).

Water classification and total length of rivers

The main rivers in the former Yugoslav Republic of Macedonia are the Varder, Treska, Lepenets, Pehinja, Bregalnitca, Cszna Reka, Boshava, Crni Drin, Radika, Strumica and Binacka Morava. The total river length is estimated to be 977km.

The water quality classification by river length is not available. However, the water quality distribution can be estimated from Figure 4-4: 5% class I, 50% class II, 40% class III, 5% class IV and 0% class V.

Choice of population numbers

The proximity of the settlements to a river throughout the country is unknown. It can it be assumed that almost everyone lives reasonably close to a river.

Given that almost everyone lives reasonably close to one of the 977 km of river in the former Yugoslav Republic of Macedonia, the total number of households, i.e. 564,237, is regarded as the relevant multiplier.

4.4 AGGREGATION OF BENEFITS AND CONCLUSIONS

Benefits covered and benefits neglected

The study has assessed the extent and value of the following benefits: • Benefits from the availability of drinking water and its improved quality; • Recreational benefits from cleaner lakes and rivers for bathing and other recreational uses; • Non-use benefits due to improved quality of river eco-systems.

Given data availability and other considerations, the study has not included the following benefits • Benefits to industrial abstractors, agriculture and aquaculture, although these are likely to be significant; • Non-river eco-system benefits; • Some of the social benefits and wider economic benefits mentioned in the general report;

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• Transboundary benefits to EU Member States and other countries.

This means that the total benefits will in fact be higher than estimated here.

Extent of the benefits

The former Yugoslav Republic of Macedonia households are expected to benefit from access to drinking water quality as well as from its improved quality in the order of magnitude 58 million Euros annually. With a population of 2 022 547, this is equivalent to around 28.7 EUR/person. All EUR values given in the section refer to Euros of 1999.

Recreational benefits of an improved quality of inland surface waters to the former Yugoslav Republic of Macedonia residents are estimated to be between 8.5 and 22.3 million Euros annually.

The non-use value of the expected improvement of river ecosystem quality is estimated to be 0.21 million Euros per year.

The total annual benefit to the domestic population of compliance with the water related Directives has been estimated at around 66.7 million EUR/year upon full compliance (lower estimate) and 80.5 million EUR/year (upper estimate). This is equivalent to 33.0 EUR/person and 39.8 EUR/person – per year upon full compliance. These estimates are based on the aggregation of the estimated benefits to health, recreational use of water and the non-use benefits of improved (river) water resources.

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Table 4-13: Aggregation of Annual Benefits from Full Compliance (million Euro per year)

Country Drinking Coastal Water Inland River Total Annual Total Annual Water Surface quality Benefits from Benefits from Water (use (non- Full Full Domestic Benefits to value) use Compliance# Compliance# benefits foreign value) (domestic (including visitors population foreign only) tourists) Low High Low High Low High Low High Low High Low High esti- esti- esti- esti- esti- esti- esti- esti- esti- esti- esti- esti- mate mate mate mate mate mate mate mate mate mate mate mate

K = B J = B + D A B C D E F G H I + C + L=J+E M=K+F +H + G+I I

Million EUR of 1999 per year

Former Yugoslav Republic NA18 58 - - - - 8.5 22.3 0.21 66.719 80.5 66.7 80.5 of Macedonia

Other CC* 504 8733 - 2512 - - - - 2373 5389 13618 - -

EUR of 1999 per capita of total population per year

Former Yugoslav Republic of Macedonia NA18 28.7 - - - - 4.2 11 0.1 33.019 39.8 33.0 39.8

Other CC* 3.8 66.6 - 19.2 - - - - 18.1 41.1 103.9 - - * The figures given in this row apply to the aggregate of the previous candidate countries Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia, and Turkey. The high estimate in this row consists of the sum of columns B, D and G. For details on the methodology for the low estimate in this row, please refer to the previous study.

# It would be misleading to present a single central estimate as this would implicitly suggest a very accurate knowledge of the relationship between pollutant, impact and monetary benefit. Hence, the lower and upper bounds reflect the bounds of confidence in the results given methodological uncertainties.

The estimates in Table 4-13 refer to annual benefits that would accrue to the former Yugoslav Republic of Macedonia from full implementation of the acquis, with the values reflecting the amount at the date of full implementation. Until then, the benefits will grow to the levels given above, and be lower in the first

18 NA = not applicable

19 This figure is not comparable to the below figure for the previous 13 CC, because the estimae for the 13 CC is based on the low estimate for the WTP for drinking water (column A).

50 ARCADIS ECOLAS / IEEP / Metroeconomica/ Enviro L Benefits of compliance with water related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report years as progress is made (e.g. not all rivers would move to Class I or Class II in the first years). Furthermore, there are clearly benefits that would accrue after the date of full implementation, because any water quality improvements can be assumed to be permanent and to offer benefits long into the future.

The total benefits (net present value) of the implementation of the water-related Directives depend on the assumptions with respect to the years that the calculated annual benefits apply to. Furthermore, they depend on the discount rate. For the calculation of total benefits to the former Yugoslav Republic of Macedonia in Table 4-14, we use a discount rate of 4% and assume full implementation by 2020. Benefits are assumed to start in 2005 and to increase linearly until 2020. Beginning with the year of full implementation (2020), five years of full annual benefits are taken into consideration (until 2025). This implies that the underlying water quality improvements would have been achieved also without the environmental acquis by 2025. In reality, benefits from approaching EU standards may have started earlier than 2005, and implementation in the reference situation would be a process over several decades. We believe that, all in all, the assumptions taken are sufficiently conservative to ensure that the total benefits displayed in Table 4-14 are not an overestimate.

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Table 4-14: Total benefits from full compliance with the water-related Directives

Annual benefits Total discounted benefits#

Low estimate† High estimate† Low estimate† High estimate†

Million Euro of 1999

Former Yugoslav 66.7 80.5 546 658 Republic of Macedonia

Other CC* 5 389 13 618 52 400§ 132 600§

Euro of 1999 per capita of total population former Yugoslav 33.0 39.8 270 326 Republic of Macedonia

Other CC* 41.1 103.9 399.6§ 1 011.3§

# Assumptions for the former Yugoslav Republic of Macedonia: 4% discount rate;full implementation in 2020; linear increase of benefits between 2005 and 2020; 5 years of full benefits (2021-2025).

* The figures given in this row apply to the aggregate of the previous candidate countries Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia, Slovenia, and Turkey. Due to differences in the applied methodology, the figures given in this row are not directly comparable with the other rows. For details on the methodology in this row, please see below and refer to the previous study.

§ In the previous study for other CCs, full implementation was assumed for 2010. Thus, the assumptions for calculating total discounted benefits in this row are somewhat different. The previous study assumed a linear increase of benefits until full implementation, and ten years of full benefits thereafter.

† It would be misleading to present a single central estimate as this would implicitly suggest a very accurate knowledge of the relationship between pollutant, impact and monetary benefit. Hence, the lower and upper bounds reflect the bounds of confidence in the results given methodological uncertainties.

Whether to look at annual benefits or at total discounted benefits is a matter of preference. Usually, annual benefits are the indicator which is easier to relate to. However, one needs to bear in mind that this indictor represents the benefits for a single year only and that the respective numbers will apply – fully or partially – to a multitude of years.

Interpretation of the results

The benefits given in the first row of Table 4-14 accrue to the national population. They are based on the relatively low (relative to EU and indeed average other New Member States) per capita GDP values, which explains a significant element of why the benefits/capita values for the former Yugoslav Republic of Macedonia are lower than the average of the then 13 Candidate countries under the previous benefits study.

Clearly, the estimates suggest that the benefits of improved water quality need to be taken into account when the relevant decisions on funding priorities, investments and policies are due.

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Despite this, all figures should be seen in the light of the uncertainties that are associated with the methods used. These uncertainties mostly refer to • uncertainties related to the methodological challenges of WTP studies in general, • uncertainties regarding the accuracy of the benefit transfer procedure that makes it possible to apply the results of foreign WTP studies to the former Yugoslav Republic of Macedonia, • uncertainties connected to the lack of information regarding current water quality and, as a consequence, the lack of adjustment for local environmental circumstances in the transfer of foreign WTP estimates, • uncertainties regarding full implementation of the Directives and the related water quality improvements.

These uncertainties underline the need to see the valuation results in conjunction with the more extensive qualitative analysis.

It is not really possible to identify explicitly what benefits can be attributed to which particular directive. This is especially so for the water related directives given the inter-linkage of the effects of the upstream emissions related directives (e.g. UWWT and dangerous substances directives) and the down stream quality related directives (e.g. bathing water and drinking water directives). It is clear that there can be no full and appropriate implementation of the downstream directives without the upstream directives being addressed in parallel.

Finally, many will be tempted to carry out a simple cost benefits analysis, taking the benefits results from this study, and comparing them to the cost estimates from other studies and drawing their own, and often incorrect, conclusions regarding the “appropriateness” of implementing the acquis. The aim of this analysis has not been to carry out such a comparison, or indeed to provide information for others to do so. While such comparisons are inevitable, it is important that those carrying out such comparisons bear in mind the meaning of the results, the limitations to the coverage of the benefits value, and the many other benefits as outlined in chapter 2 of the general report that are not monetised but equally important to decisions of prioritisation of funding for the environment.

ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of waste related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report

5 BENEFITS ASSESSMENT OF WASTE RELATED DIRECTIVES

5.1 CURRENT STATUS

A detailed review and analysis of the key problems related to the existing solid waste management situation in the former Yugoslav Republic of Macedonia has been conducted, focusing on the following areas (see Table 5-1): • Policy and legislative framework; • Institutional/organizational arrangements and human resources/capacity; • Financing/cost recovery; • Stakeholder awareness and communication; • Data availability/reporting; • Waste avoidance, reduction and waste recovery / recycling; • Waste segregation, storage, collection and transport; • Waste treatment/processing and final disposal.

The analysis of these problem areas show that the present solid waste management situation in former Yugoslav Republic of Macedonia can be characterized as sub-standard, insufficient and inefficient and hampered by serious lacks (such as on public awareness, enforcement), resulting in various dysfunctional systems and many related negative effects on the environment and public health.

Table 5-1: Existing Waste Management Arrangements - Problem Analysis

Area/Activity Key Problems o Existing national policy / strategy on WM is not yet sufficiently developed to facilitate preparation and implementation of a fully integrated and cost- Policy & effective WM system. Legislative Framework o Existing national legislation relating to WM is not yet fully compliant with EU standards & requirements. o Enforcement of legislation relating to WM is not effective. Institutional / Existing institutional / organizational arrangements for WM are not sufficiently Organizational developed for achieving compliance with European & national requirements in an Arrangements integrated and efficient manner. Human Resources / Existing human resources and capacity for waste management (in both the public Capacity and private sectors) are inadequate. The revenue flows from existing WM charges are insufficient to be able to meet Financing / the full costs of providing integrated system, which meets all European & national Cost Recovery requirements for WM. Stakeholder Awareness & Not all stakeholders have a sufficient awareness and understanding of national Communication policy and strategy for achieving compliance with European requirements for WM. Available data & information on the sources, nature, quantities and fate of wastes, Data Availability / and waste management facilities, are not sufficient to be able to meet current / Reporting future EU and national requirements. (Methodology not elaborated). Waste Avoidance and The potential for waste avoidance and reduction is not sufficiently exploited. Reduction Waste Recovery & The potential for further waste recovery and recycling is not being realized. Recycling o Existing methods / systems for the segregation, temporary storage, collection Waste Segregation, and transport of most types of waste are not sufficient to enable compliance Storage, Collection & with all European / national requirements for WM. Transport o Existing services for the collection and transport of MSW are not efficient /

cost-effective Waste Treatment / o Existing practices for the treatment / processing of wastes do not comply with Processing current / impending European and/or national standards.

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o Available capacity for the treatment / processing of wastes is not sufficient to be able to achieve compliance with all European and national requirements. o All existing facilities / practices for the final disposal of wastes do not comply Final Disposal with current / impending EU standards. o Many old (historical & non-operational) municipal dumpsites and / or industrial “hotspots” are not being progressively remediated and re-stored.

To enable installation of environmentally sound basic technical infrastructures for waste management, there should be in place proper organizational, financial and legislative structure. There could not be made any distinction for what is more important, because all prerequisites create conditions for the functioning of the technical infrastructures.

Priorities with primary importance as identified in the National Waste Management Plan (2005): o Organizational structures − Establishment of SWM department in the MEPP − Increased and effective Inspection and enforcement capacity − Effective Inter–Ministerial cooperation − Improvement of Municipal WM / Communal Enterprises capacities o Technical infra structures − Establishment of new ‘sanitary’ landfills − Closure of non-compliant land fills / wild dumps (phased) − Improved collection and transport systems o Financial structures − ‘Polluter Pay principle’ enforcement − Co-finance of integrated MSW management systems (introduction of disposal fees and surcharges, fines-penalties) − Introduction ‘producers responsibility’ for packaging waste (and special HZW streams) − Co-finance system for closure/reclamation of industrial ‘hotspots’ o Legislative structure − National level; completion of legal WM framework − Local level; upgrading of municipal SWM regulations Priorities with secondary importance as identified in the National Waste Management Plan (2005): o Municipal waste − Promotion and stimulation of waste reduction and recycling activities − Municipal pilot projects (separate collection – recycling/composting) − Public awareness rising − Introduction of the ‘producer’s responsibility’ for recycling activities − Favorable conditions for private sector involvement o Other SW streams − Establishment of national WM systems for: o Industrial hazardous waste o Medical hazardous waste

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5.1.1 Waste generation and coverage Some key-indicators related to waste generation and coverage in the former Yugoslav Republic of Macedonia is presented in following table:

Table 5-2 – Waste management and collection

Indicator Year 2004

Total waste generated (t/year)

Total municipal waste: 572.381 Total industrial waste: 19.445.603 Total medical hazardous waste: 1.000 Total C & D waste: cca. 500.000 Total municipal waste (t/year) 572.381

Table 5-3 Composition of the municipal waste (MSW) Figure 5-1 Municipal waste generated per capita (kg/inhabitant/year): Sampling results: 313 Communal Enterprises data: 253 Coverage of waste collection system (% of population covered) 70% Urban areas: 100% Rural areas: 10% Type of treatment (%) Landfilled: 97.0 Recycled: 3.0 Incinerated: 0.0 Composted: 0.0 Quantity of waste illegally dumped (t/year) n/a

Quantity of waste imported/exported (t/year) n/a

Source: National Waste Management Plan 2006-2012 (2005)

Table 5-3: Total municipal waste generation and composition – year 2004

Waste stream Quantities (t/year) (%) Household waste 417,838 73 Commercial waste 154,543 27 Type of wastes Biodegradable waste 148,819 26 Packaging waste 97,305 17 Bulky waste 28,619 5 Other wastes 297,638 52 Total MSW 572,381 100

Source: National Waste Management Plan 2006-2012 (2005)

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Metals HZW household 2.6% 0.2% Composites Fine s 2.2% 30.9%

Complex products 0.3%

Other Organic 3.6% 26.2%

Inert 3.6%

Textiles 2.9% Wood 2.7% Glas s 3.5% Plastics Paper and 9.6% Cardboard 11.6%

Source: National Waste Management Plan 2006-2012 (2005)

Figure 5-1: Composition of the total municipal (household and commercial) waste

5.1.2 Recycling The recycling chain in the former Yugoslav Republic of Macedonia is presented in Figure 5-2. The sources of recyclables, the main performers in the recycling chain and the end markets are explained below: Sources: The recyclables collected on the Macedonian market have three different sources: industry, consumers and recyclables remaining in MSW or even abandoned scrap not properly disposed. Collecting: Major part of the scrap comes from industry and from individuals that collect the remaining waste that has commercial value on the market. This is the case of more valuable recyclables as metal. Transport: Usually the individuals organize transport of the recyclables to the gate of the scrap yard. Industrial recyclable waste is a matter of agreement between the actual producer of the scrap and the scrap yards, but since most of the scrap yards possess vehicles for this aim the transport is usually provided by the scrap yard and transport cost calculated in MKD (Macedonian denars) per ton. Scrap yards (processors to some extent): Private companies that purchase recyclables from the different sources and collect them with the intention to modify them to some extent through different processes as sorting, washing, pressing, crashing, baling etc. and sell them to other private entities as brokers, final processors or exporters. Brokers: The size in terms of collected volumes of recyclables and financial power of scrap yards varies significantly. Financially, the most powerful scrap yards act as brokers on the market for specific recyclables and are the main suppliers of the final processors of different recyclables in the former Yugoslav Republic of Macedonia and the main exporters. Their main activity is buying and selling recyclables and collection is a minor part of their business. Most important recyclables collected and sold this way are metal (ferrous and non-ferrous), car batteries and paper.

Final processors (users): For most of the recyclables targeted with this study there are final processors in the former Yugoslav Republic of Macedonia that use all of the collected and/or purchased secondary material for their own production. Their connections with scrap yards/brokers will be discussed for each recyclable separately.

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Collectors

Individuals Legal entities

Sources • Industry Scrap yards • Consumers and/or • MSW, abandoned scrap Brokers

Final Processors • Macedonia • Export

Figure 5-2: Simplified diagram of Recycling Network in the former Yugoslav Republic of Macedonia

Table 5-4 – Waste recycling

Indicator Year 2004

Total municipal waste recycled (t/year) see Table 5-5

Number and capacity (t/day) of recycling facilities n/a

Amount (t/year) of biodegradable waste produced 148,819

Share (%) of biodegradable waste produced 26%

Amount (t/year) and share (%) of biodegradable municipal waste composted cca. 0%

Number of composting facilities of biodegradable municipal waste one

Capacity of composting facilities of biodegradable municipal waste (m3/week) 25.0

Number of other composting facilities:

Biogas installations: 3 Substrate production: 2 Vermi (small-scale) composting: 1 Source: National Waste Management Plan 2006-2012 (2005)

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Table 5-5: Overview of the recycled commodities in the former Yugoslav Republic of Macedonia – year 2004

Paper / PET Hard Film Used Tires Car Glass Metal Cardboard plastic batteries

Recycled (t) 14.844 0,2 199 92 170 2.983 0 385.452

Import n/a 0 0 0 n/a n/a 0 285,664

Export 3,600 0 0 0 0 2,983 0 0

Land filled 71,655 10,748.0 n/a n/a n/a n/a 13,972 9,912 (Disposed) Total quantity 86,499 10,748.0 n/a n/a n/a n/a 13,972 395,364 (Generated)

Recycling rate 21,1% 0,01% n/a n/a n/a n/a 0% 97,5%

Source: National Waste Management Plan 2006-2012 (2005), Annex 5 - Special Study on recycling

There is a recycling chain established on the Macedonian market covering number of commodities. The commodities are mainly collected by the informal sector and then sold to the legal entities the so called scrap yards, usually members of the Association 'Makedonska Surovina' that today has over 70 members. Some of the processors (end-users) of the collected secondary materials are also members of this Association.

Because of scarce funds and the lack of experience, processing facilities and markets, apparently no municipalities have yet attempted to provide recycling.

Current recycling activities are performed by the informal sector without governmental interferences and without costs to the inhabitants. The commodities recycled are paper and cardboard, metal, car batteries, and to a certain extent PET.

When the former Yugoslav Republic of Macedonia enters the European Union the current EU policy and legislation regarding landfilling of organic wastes should be taken into account. The EU landfill directive requires reducing the amount of organic waste landfilled. Organic waste streams will therefore have to be diverted from the landfills in future. The most cost effective technology for this diversion of organic waste is composting. The only other alternative to landfilling will be incineration, which is much more costly and lower in the scale of preference in the EU waste management approach in comparison to composting.

If the total costs are considered, it is possible to recover part of the organic fraction of the municipal solid waste and produce a high quality soil improver at costs comparable or slightly higher than those of landfilling and lower than those of incineration, if these processes are performed under environmentally acceptable conditions. Especially in countries needing large amounts of soil improver as is the situation in the former Yugoslav Republic of Macedonia biological waste treatment can be considered much more cost effective than landfilling and incineration. In situations where landfilling is still cheaper than composting a financial incentive will be required to stimulate composting. The additional costs for composting can for instance be covered by introducing landfill taxes for organic waste.

The few existing composting facilities are (small-scale) composting or anaerobic digestion facilities aimed at the degradation of agricultural wastes and especially manure. Only one small facility, a pilot project in Zrnovci, is using the organic fraction of MSW as basic material for the compost production. The principal barrier for market development for organic “waste”-derived compost in the former Yugoslav Republic of Macedonia is mainly the lack of information on compost usage and its benefits. The potential market for

60 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of waste related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report compost application in the former Yugoslav Republic of Macedonia is relatively big due to the large agricultural sector and the limited amount of people living there.

5.1.3 Landfills

The solid waste generated in the former Yugoslav Republic of Macedonia is mostly disposed of by landfilling. The landfill Drisla, serving the Skopje region, is the only landfill in Macedonia which is relatively well managed. Nevertheless, plans to install an impermeable lining to prevent possible groundwater contamination have not yet been realized. The landfill area surrounding the landfill consists of permeable sand and gravel deposits. No special construction measures, however, are taken to prevent possible percolation of leachate into the upper and lower aquifers.

Municipal waste registration takes place only at Drisla landfill and nowhere else in the former Yugoslav Republic of Macedonia. At the Drisla landfill a disposal fee per ton of deposited waste is charged and paid by municipalities outside the Skopje area using the disposal service. At the selected landfills, a flat disposal fee is charged to other municipalities using the landfills regardless of quantities disposed of. Compaction and soil covering is executed only at a number of bigger municipal landfills.

At the municipal landfills, or dump sites, in rural areas the wastes are simply dumped by the Communal Enterprises with no operational costs, except for some overheads (paid to guardians, if any) and occasional water consumption costs for extinguishing of spontaneously emerging landfill fires.

The diligence applied with regard to disposal varies as dramatically as most other aspects of operation. In some cases disposal takes place at what may be described as some kind of makeshift landfill, up to 25 km away from the center of town. In most cases, however, the collected waste is simply dumped on an open area, on the slopes of a mountain hill, or along a riverbank just outside town. All waste collected including the industrial hazardous and medical waste are mixed and disposed at the same place. Once the void space is filled in, the dumpsite is abandoned (without any closure); another site is selected and exploited.

In areas, mostly rural areas, where the waste collection is not organized, the population disposes their wastes by tipping it in the outskirts of the settlements. In that way about thousands dumpsites have been created in quarries, pits and in the natural landscape (in river beds, along the roads, in valleys, on slopes etc.). The municipal waste often mixed with demolition waste is dumped at these places as well. Illegal dumps are sometimes cleaned up through occasional campaigns organized by municipalities and sometimes financed either by the national budget or by grants from international sources (UNDP and similar). Unfortunately, the cleaning campaigns do not improve the situation since the principal cause for creating of those dumpsites remains in place; hence the population receiving no service continues the illegal dumping mainly at the same areas. Although spread all over the country, the small illegal dumpsites do not require intensive immediate measures since they do not create a serious environmental risk. Therefore the consideration of municipal landfills due to their size, complexity of closure activities and related is regarded as priority.

The costs for remediation of non-compliant landfills have been estimated in the National Waste Management Plan. These costs are based on requirements of the landfill directive, taking into account four remediation options for different classes of environmental risk assessed. Total remediation costs are in the range of € 30 million.

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Some key-indicators on waste landfilling are presented in following table:

Table 5-6 – Waste landfilled

Indicator Year 2004

Total municipal waste landfilled Landfill Drisla (Skopje Region) (t/year): 500 Other municipalities (m3/year) *: 302.520 Number of (official/legal/permitted) landfills: Official landfills - non-permitted: more than 50 Official landfills - permitted: one How many / what share are compliant with EU standards none

Capacity of (official) landfills (t/day) n/a

Area covered by (official) landfills (m2) 898.000 *

Methane emissions from landfills Table 5-7

Share of captured and released emissions (ratio captured / released) 0

Number of illegal landfills / waste dumps: Municipal waste dumps (non-compliant landfills)**: 54 Illegal (wild) dump sites: n/a * According to the data by Municipal Communal Entities ** See Table 5-8 Source: National Waste Management Plan 2006-2012 (2005)

Table 5-7: Contribution of Methane (CH4) in CO2-eq emission in Waste Sector GHGs 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 /Year CH 4 751,80 753,69 702,45 726,60 732,69 769,65 777,42 775,11 790,86 782,67 787,08 [kt] Source: Macedonia’s GHG National Inventory Summary Report, FINAL VERSION (2006); Preparation of the GHG Inventory for the Second National Communication under UNFCCC

In total 54 municipal landfill sites are identified in the former Yugoslav Republic of Macedonia. The list does not contain the small dispersed wild dumps which can be found actually everywhere in the country close to the populated areas. None of the municipal landfills meet the requirements for sanitary operation and environmental protection.

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Table 5-8: Identified non – compliant municipal landfills

Nr. Municipality Location Population served Start up 1 Kumanovo "Krasta" 72.243 1960 2 Pehcevo "Suvi Dol" 3.862 1974 3 Murtino "Dineva Bara" 3.272 1999 4 Krivogashtani "Livadski Pat" 3.003 2004 5 loc. Solena Reka 2004 Novo Selo 5.983 6 (abandoned) "Sopov Rid" 1997 7 Resen "Alchevi koshari" 11.777 1966 8 Bitola "Meglenci" 60.486 1982 9 Belcista (4) "Belcista" 1.470 2002 10 Valandovo "Suvodolica" 8.323 1972 11 Zletovo "Meliste" 2.477 1974 12 "Kole Nalco" 1970 Krusevo 6.779 13 "pod Avtoturist" 1970 14 Sveti Nikole v. Nemanjeci 12.948 1977 15 Veles "Bunardere" 43.716 1980 16 Probistip v. Neokazi (Strmos) 8.935 1975 17 Kriva Palanka v. Konopnica 14.574 1982 18 Lipkovo (4) v. Nikustak 13.529 1998 19 Strumica 17 km northern of the City 31.561 1986 20 Kavadarci "Melci" 26.874 1978 21 Kocani "Belski Pat" 23.582 1975 22 Vinica v. Leski 12.540 1971 23 Meseista Meseista 1.284 2002 24 v. Karbinci 1998 25 v. Tarinci 1998 Karbinci 2.006 26 v. Radanje 2004 27 v. Krupiste 2004 28 Kicevo / 21.097 1998 29 Mak. Kamenica "Kamenicki Rid" 5.677 1986 30 Miravci "Karaivanovi kurii" 1.313 1998 31 Delcevo "Ostrec" 12.254 1989 32 Gevgelija "Suva Reka" 14.253 1976 33 Gostivar "Susicki Most" 34.682 1971 34 Dojran "Dekil-Tas" 1.713 1975 35 Blatec "Pocivalo" 1.012 2000 36 Orizari "Bel Kamen" 2.202 1997 37 Oblesevo "Progon" 2002 2.535 38 Oblesevo v. Banja ("Jaz") n/a 39 Mak. Brod "Barbaros" 3.912 1995 40 Ohrid "Bukovo" 38.066 1972 41 “Mali Vlaj” / n/a Struga 42 v. Vishni / n/a 43 "Debreshte" 2004 Dolneni 5.792 44 v. Crniliste 2004 45 Prilep v. Alinci ("Omec") 51.346 1974 46 Stip "Trestena Skala" 33.457 2004 47 Stip "Krstot" / 1960 48 Berovo "Iljadin Valog" 9.759 1992 49 Debar "Krivici" 12.566 1971 50 Kratovo "Zeliznica" 7.309 1968 51 Radovis City Landfill 17.149 n/a 52 Bogdanci "Brdanov Kamen" 6.095 1967 53 Demir Kapija "Pcenicni Dupki" 3.181 1982 54 Negotino v. Dubrovo (Buceto) 13.448 1978

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Co-disposal of hazardous waste (as fraction of the household waste), as well as medical hazardous waste occurs on the most of the municipal landfills. The landfills pose potential hazard for pollution of the soils, surface water and groundwater and air, as well as risk for the biodiversity, agricultural land and human health. A priority list of 51 non-compliant landfills is developed and three classes of environmental risk are established, i.e. low, medium and high (see Table 5-9).

Table 5-9: Number of municipal landfills per risk class

Risk Class Number of landfills %

High risk landfills 16 31,4

Medium risk landfills 16 31,4

Low risk landfills 19 37,2

Source: National Waste Management Plan 2006-1012 (2005), Annex 7 – Special Study on Non-compliant landfills

5.1.4 Packaging waste

Some key-indicators on packaging waste in the former Yugoslav Republic of Macedonia are presented in following table:

Table 5-10– Packaging waste

Indicator Year 2004

Packaging waste (kg/inhabitant/year) 51

Total packaging waste collected (t/year): Paper: 86.499 Glass: 13.972 PET: 10.748 Total packaging waste recycled (t/year): Paper: 14.844 Glass: 0,0 PET: 0,2 Total packaging waste landfilled (t/year) Paper: 71.655 Glass: 13.972 PET: 10.748 Number and capacity of facilities for the recycling of packaging waste n/a

Source: National Waste Management Plan 2006-1012 (2005)

Waste sorting analysis in the former Yugoslav Republic of Macedonia showed that 17,65% of the generated mixed waste is packaging material, resulting in approximately 51 kg packaging per person per year (see Table 5-11 and Figure 5-3). This is very low compared to the European-15 average of 158 kg/person in 1997, however in agreement with data reported for some CEE countries.

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Table 5-11: Packaging waste expressed as percentage of total waste

% of household waste % of commercial waste % of total waste Paper / cardboard 3,17 12,47 5,72 Plastic 4,91 8,02 5,76 Glass 1,47 4,64 2,34 Metal 1,21 2,83 1,66 Composite 2,14 2,24 2,17 Total Packaging waste 12,89 30,21 17,65 Source: National Waste Management Plan 2006-2012 (2005) – Sorting Analysis of the municipal waste

metal composite 1.66% 2.17%

glass 2.34%

paper 5.72%

plastic 5.76%

17.65% of w aste is packaging w aste, i.e. 51 kg/capita/year

Figure 5-3: Packaging waste as percentage of the total waste Source: National Waste Management Plan 2006-2012 (2005) – Sorting Analysis of the municipal waste

5.1.4.1 Collection system for paper / cardboard packaging

In the former Yugoslav Republic of Macedonia there is only one big processor of paper and cardboard, the paper factory "Komuna" from Skopje. It has its own collecting network (20,33%), but also purchases from other legal entities (56,19%) and individuals as well (23,48%).

It means that there are two parallel systems for paper collection. One organized directly by 'Komuna' that provides approx. 20% of the whole collected quantity and one organized by the scrap yards that collect paper and cardboard as one of their main recyclables. Several bigger scrap yards/ brokers on the market purchase the collected paper and cardboard from other scrap yards. Those brokers are financially strong enough to purchase bigger quantities of selected and balled high quality paper and depending on the offered price sell it to 'Komuna' or export it to the neighboring countries.

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5.1.4.2 Collection system for PET

There is no formal collection system for PET plastic in the country. PET is not formally collected due to the costly collection system. Concrete initiatives are present on the market by the informal collectors.

PET is not collected by the scrap yards mostly because of the costly collecting system due to big volume of PET bottle and low weight. However, if collected end-markets for this commodity can be easily found.

5.1.5 Incineration of waste No incineration facilities for the disposal of solid waste exist in the former Yugoslav Republic of Macedonia, except partially for medical hazardous waste.

5.1.5.1 Incineration of the medical hazardous waste

At the landfill site Drisla serving the Skopje area a hospital waste incinerator has been installed and started operation in the year 2000. Main characteristics of the incinerator are showed in Table 5-12. It is estimated that about 35 % of the total amount hazardous medical waste in the former Yugoslav Republic of Macedonia is incinerated.

Table 5-12: Main characteristics of Drisla hospital waste incinerator

Item Specification Capacity (hour) 200 kg/hour, approx 1 ton/ shift Actual waste input (year) 2001: 230 ton, 2002: 240 t on (estimate) Incineration temperature Chamber 1: 800°C, Chamber 2: 1000 °C No. and Type of staff 5 workers, 1 driver, 1 engineer, 1 administrator Flue gas cleaning system Non additional cleaning system beside secondary chamber Ash disposal Landfilling Source: National Waste Management Plan (2005)

5.1.5.2 Incineration of the industrial hazardous waste

Two options for final treatment of industrial hazardous wastes were taken into account in the National Waste Management Plan (2005), Annex 1 / Part A – Hazardous Industrial Waste: • Secure landfilling; • Incineration. The main relevant recommendation is that the HZW disposal facilities should on longer term (after 2012) include creating of a HZW incineration facility or other incineration options in existing industries with a capacity of 2,5-5,000 t/a (estimated at € 500-1,000,000 per year). The full feasibility of the above facility shall be analyzed in a National Feasibility Study for establishment national HZWM system (short term action indicated in the National Waste Management Plan (2005)). This study will set targets for waste quantities for incineration and targets for residues from incineration.

An overview of the total volume of waste incinerated and the capacity of the incineration installations is presented in Table 5-13.

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Table 5-13– Waste incineration

Indicator Year 2004

Total waste incinerated (t/year) 360.0 Medical hazardous waste: 360.0 Number of incineration facilities One

Capacity of incineration facilities (kg/hour) 200.0

Energy recovered annually n/a

5.1.6 Hazardous waste (HZW) In general, there is no proper HZW Management System in place within the industrial sector of the former Yugoslav Republid of Macedonia, meeting any international standard. This is a result of the accumulated waste management problems from the earlier period (lack of vertical and horizontal administrative and technical coordination and organization; lack of legal regulations and economic measures); inadequate social and economic attitude towards waste and waste management; lack of public and professional awareness and education (EU waste management policies and positive practices are not enough recognized and replicated) as well as lack of financial sources allocated to waste management. As a result, the situation in the former Yugoslav Republic of Macedonia is characterized as: • Absence of systematic recording of the generated HZW. There is not any practice to perform continuous material balance analyses cross-cuted with the measurements of the generated wastes and its recording on a daily/monthly/yearly base. There are indications that generation of some process waste streams are estimated by basic process stoichiometry but without taking into consideration different circumstances (variations of the quality of raw materials, off standard process conditions etc.). • Generally, the HZW generators do not take care about rules of not mixing different types of hazardous wastes with non-hazardous waste. The sorting by waste types is driven by the rules of market demand i.e. the parts of the wastes which are for sale are segregated from the other waste which is landfilled on site or sent to the municipal landfills. Some types of HZ wastes are sorted according the physical state, but it is not clear that even this kind of sorting may be a proper base for further environmentally sound handling (for example, there are indications that waste oils of different origin are mixed and collected together etc.). Nevertheless, from the data gathered from the identified industries the following ways of handling are identified: Sold by contract (or recycled in the same company). There is no evidence that all of the sold waste is recovered on environmentally sound way by the new waste holder. Disposed on municipal landfills. It is known that at all municipal landfills (excluding Drisla landfill (Skopje Region)) the waste (municipal and industrial HZW) is spontaneously burned which represent a severe impact on the environment and human health Due to the possible leaching, the ground waters are endangered, too. Disposed on-site.

The Ministry of Environment and Physical Planning as competent authority for implementation of the UN Basel Convention has not recorded cases of illegal trans-boundary movements of hazardous waste.

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An overview of some indicators on hazardous waste is presented in the following table and figure:

Table 5-14 – Hazardous waste

Indicator Year 2004

Total hazardous waste generated (t/year) Mining industry: 4.546.000 Thermal processes: 75.347 Other process industry (see figure 6.1-a): 2.048 Total hazardous waste collected (t/year) Adequate HZW collection and intermediate storage facilities have not been established

Total hazardous waste treated (t/year) n/a

Hazardous waste management practices Sold by contract (or recycled by the HZW owner): 1.282 Disposed on municipal landfills: 487 Disposed on-site (excluding the mine tailings): 75.626

Number and capacity (t/day) of hazardous waste treatment facilities None

Number and capacity (t/day) of hazardous waste disposal facilities None

Quantity of waste imported/exported pursuant to the Basel Convention (t/year) – specify type (lead batteries, medicines, waste paint, etc…)

Exported lead (car) batteries (t/year): 2.983

Figure 5-4: Annual generation of HW (Mining and Thermal Processes excluded) – year 2004

Hazardous Waste (without mining and thermal processes) 19 (WWTP...) 16 (other waste) 4 (leather) 6% 1% 4 (leather) 5 (petroindustr.) 8% 15 (packaging...) 6 (nonorganic chemical ind) 3% 5 (petroindustr.) 7 (organski chem.ind.) 18% 8 (coatings) 9 (photo industr.) 11 (chemical treatment) 6 (nonorganic chemical ind) 12 (phys.-mech. treatment) 13 (oil waste) 11% 13 (oil waste) 37% 15 (packaging...) 16 (other waste) 7 (organski chem.ind.) 19 (WWTP...) 1% 8 (coatings) 1% 12 (phys.-mech. treatment) 9 (photo industr.) Total quantity: 2,048 t/yr 2% 11 (chemical treatment) 0% 12%

Source: National Waste Management Plan 2006-2012 (2005)

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Table 5-15: Annual quantities of industrial hazardous waste and proposed disposal options (mining activities) – year 2004

EU Description of waste category code Total inventoried waste (t/y) Total HZW (t/y) Percentage HZW Already sold for recovery (t/y) for HZW secure landfilling (t/y) for HZW future incineration (t/y) 01 01 Wastes from mineral excavation 12.700.000 0 0 0 0 0 01 04 Wastes from physical and chemical 4.546.000 4.546.000 100 0 4.546.000 0 processing of non-metalliferous minerals Total of mining waste 17.246.000 4.546.000 26,4 0 4.546.000 0 Source: National Waste Management Plan 2006-2012 (2005)

Table 5-16: Annual quantities of industrial hazardous waste and proposed disposal options (mining activities excluded) – year 2004

EU Description of waste category code Total inventoried waste (t/y) Total HZW (t/y) Percentage HZW Already sold for recovery (t/y) Total HZW to be disposed (t/y) HZW for future incineration (t/y) 04 Wastes from the leather, fur and textile 950 155 16.3 0 155 55 industries 05 Wastes from petroleum refining 391 391 100.0 0 391 391 06 Wastes from inorganic chemical processes 101.838 227 0,2 0 227 0 07 Wastes from organic chemical processes 467 13 2,7 0 13 13 08 Wastes from the manufacture, formulation, 12 12 100 0 12 12 supply and use of coatings, adhesives, sealants and printing inks

09 Wastes from the photographic industry 3 3 100.0 0 3 0 10 Wastes from thermal processes 2.090.726 75,347 3.6 242 75,105 0 (power plants, metallurgy, etc.) 11 Wastes from chemical surface treatment 836 240 28.7 139 101 0 and coating of metals and other materials 12 Wastes from physical and mechanical 48 42 86.8 32 10 6 surface treatment of metals and plastics 13 Oily wastes and wastes of liquid fuels 777 777 100.0 742 35 30

15 Waste packaging; absorbents, wiping 52 52 100.0 20 32 32 cloths, filter materials and protective clothing 16 Wastes not otherwise specified 3,181 121 3.8 106 15 15 19 Wastes from waste management facilities, 22 16 72.7 0 16 0 off-site waste water treatment plants and the preparation of potable water

Total waste (excluding mining) 2,199,603 77,394 3.5 1,281 76,114 554 Source: National Waste Management Plan 2006-2012 (2005)

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Table 5-17: Projection industrial hazardous waste generation

Generated HZW [t/y] Generated HZW [t/y] Generated HZW [t/y] Nr. Waste stream 2005 2010 2015

1 Waste from mining 4.546.000 5.000.000 5.000.000

Wastes from thermal 2 75.000 75.000 75.000 processes

Waste from other 3 2.000 4.500 6.500 process industries

Total 4.623.000 5.079.500 5.081.500 Source: National Waste Management Plan 2006-2012 (2005)

5.1.7 Disposal of waste oil

There is presently no system in place in the former Yugoslav Republic of Macedonia oily car components are currently landfilled or spilled irregularly. The majority of waste oil and oil emulsion generated in enterprises and other activities are currently burnt. Some key-indicators on waste oils in the former Yugsoslav Republic of Macedonia are presented in following table: Table 5-18 – Waste oils

Indicator Year 2004

Total oil produced (t/year) 8.000

Number of power plants exceeding 3 MW n/a

Number of factories using waste oil as an additional fuel (power plants, cement factories n/a etc)

Source: National Waste Management Plan 2006-2012 (2005)

5.1.8 Batteries and accumulators

Although in recent years there is an increasing trend in collecting used car batteries from various sources in the country there is also unconfirmed information that used car batteries are being imported by Macedonian recyclers from Serbia and Kosovo. End-processors for car batteries in the former Yugoslav Republic of Macedonia do not exist. There is only processing to some extent of the collected batteries involving crashing, separation of components, neutralization, etc. Big part of the quantities is only being collected by scrap processors in the country and readily exported to Bulgaria.

Some key-indicators on waste from batteries and accumulators in the former Yugoslav Republic of Macedonia are presented in following table:

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Table 5-19 – Batteries and accumulators

Indicator Year 2004

Amount of batteries separately collected (t/year) 2.983 *

Amount of batteries recycled (t/year) n/a

Amount of batteries disposed of at landfills (t/year) n/a

* Total reported quantities (ref. National Waste Management Plan 2006-2012 (2005))

5.1.9 Medical Hazardous waste The former Yugoslav Republic of Macedonia produces approximately 900-1,000 tons of hazardous medical waste per year. Separation of infectious waste at the source has been introduced but not enforced, so not all hospitals are separating medical waste and non-separated infectious waste is disposed of at the landfill together with the municipal waste. Proper management of healthcare waste will significantly reduce the risks of infection of hospital staff, waste collection workers and general public, and protect the environment. In Skopje and Kumanovo hazardous medical waste is separated, stored in un-chilled rooms, collected daily, transported with open dump trucks and incinerated in a dual chamber incinerator located in the landfill site Drisla serving Skopje (see Chapter 5 - Incineration of waste). This facility is without proper air treatment. Other hospitals are separating waste to a certain extent, which is afterwards mixed with household waste and disposed at landfills. The current practices in separation, storage, transport and incineration standards are inadequate. The following problems with medical waste management in the former Yugoslav Republic of Macedonia have been identified in the National Waste Management Plan (2005), Annex 1 / Part B – Medical Waste:

• No dedicated persons assigned to infectious solid waste management in MEPP. • Legal framework not clear (e.g. air emission criteria for incineration, no standards prepared arranging packaging, storage, transport). • Hospital waste management plan exist, but is fully only operational in Skopje and Kumanovo, because of problems with transport and lack of possibility to incinerate solid infectious waste from the other parts of the country. • No clear waste management strategy to cover the whole country. • Alternative treatment systems are under discussion, but not expected to be feasible or implemented on the short term, because of relatively high costs and lack of sufficient operational experience. • Lack of designated budgets for proper collection and treatment cause problems in technical/ operational areas. • Much infectious waste is, separated or not, disposed at a landfill for municipal waste, causing health care risks. • There is no enforcement yet of the new law, a lack of control, limited inspection and enforcement and penalties. • Lack of awareness and information / data. Currently EU CARDS 2006 programme is financing the project “Healthcare Risk Waste Management”. The objective of the project is to assist the former Yugoslav Republic of Macedonia in establishment of integrated, environmental sustainable and occupationally safe Healthcare Risk Waste Management.

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Some key-indicators on medical hazardous waste in the former Yugoslav Republic of Macedonia are presented in following table: Table 5-20: General data on medical hazardous waste

Indicator Year 2004

Total medical hazardous waste generated (t/year) 1.000

Total medical hazardous waste treated (t/year): Incineration: 360 Number of medical waste treatment facilities One*

* See Chapter 5 – Incineration of waste

Source: National Waste Management Plan 2006-2012 (2005)

5.1.10 Disposal of PCB and PCT Recent investigation on PCB wastes concluded that a considerable amount of suspected, PCB oil containing, transformers are still used in the energy supply system. Some of this oil waste is intended to be collected exported and disposed of in Switzerland. PCB containing wastes is further suspected to be generated in some industries, such as railway facilities. It has to be noted that there doesn’t exist any capacity at local laboratories in the former Yugoslav Republic of Macedonia to identify the PCB or PCT contents in solid wastes.

5.1.11 Used Tires Although part of the annually generated used tires are collected and used as fuel in tar and lime production facilities, most used tires are currently landfilled. Apart from locally generated quantities there is import of used tires for rethreading. Energy recovery is not applied presently, although there is processing capacity available in the cement industry in Skopje and clear interest to process used tires. The generation of used tires per year has been estimated on 5.000 tones.

5.1.12 End of life vehicles There is no any organized collection of end of life vehicles. The car wrecks are usually picked up by the informal sector and are either processed for the recovery of spare parts or for scrap metals. The scrap metals are exported, or delivered to the steel factory in Skopje, which possesses a shredder for cutting the scrap metals prior to smelting. The number of discarded units per year has been estimated on 17.500.

5.1.13 Construction and demolition waste Construction and demolition wastes arise from activities such as the construction of buildings and civil infrastructure, total or partial demolition of buildings and civil infrastructure, road planning and maintenance. It usually comprises of: concrete, tiles, reinforcement bars, asphalt paving, asphalt roofing, lumber, gypsum board, rock, soil and fines, remainder. Also hazardous constituents can be found such as: fluorescent tubes, asbestos, lead, mercury and paints.

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The annual generation of this C&D waste stream is highly dependant upon the construction activities in either public or private sector. The estimated quantities for former Yugoslav Republic of Macedonia are based on experience in other countries: variation of per capita generation has been recognized in countries in Europe from 136 kg/y up to 3.359 kg/y, also a result of definitions of this particular stream. For the former Yugoslav Republic of Macedonia the average annual generation of C&D waste is estimated ranging from 460.000 to 500.000 ton/year.

5.1.14 Industrial contaminated sites

Macedonian mining and processing industries faced severe problems during the transition period and many have stopped their activities with no chances to be restarted in the near future. Their on-site process waste landfills/dump were abandoned as well, and little or no information is available on the history of these dump sites. During the privatisation process no clear arrangement were made with the new owners with respect to the clean up of the old dump sites. An inventory made resulted in the identification of 16 major industrial contaminated sites (Table 14.1).

The total cost of closure/remediation for identified hotspots will require an estimated budget of about EUR 77,000.000 EUR (ranging from EUR 2.700 to 12.700.000).

Currently EU CARDS 2006 programme is financing the project “Development of remediation plans with financial requirements for elimination of industrial hotspots”. The objective of the project is to assist former Yugoslav Republic of Macedonia in elimination of industrial hotspots through the development of hotspot remediation plans with financial requirements.

Table 5-21: Industrial contaminated sites - ‘hotspots”

No. Hotspot Operational status Deposits (m3) Area (m2) 1 OHIS A.D Chlorine alkali plant abandoned Lindane plant abandoned 252.200 76.725 HCH dump site abandoned Dump site operational 2 Bucim (copper mine) Flotation tailings operational 196.000.000 900.000 3 MHK Zletovo (smelter) Mine tailings operational 1.115.000 95.000 4 Lojane Abandoned 1.000.000 100.000 (chromium, arsenic, antimony mine) 5 Sasa (lead and zinc mining) Abandoned 30.000.000 285.000 6 Silmak (ferro-silicium plant) Operational 851.000 80.000 7 Toranica (lead and zink) Abandoned 3.000.000 25.000 8 Makstil (iron & steel plant) Operational 2.500.000 125.000 9 Zletovo (lead & zink mining) Abandoned 14.000.000 280.000 10 REK Bitola Operational 11.000.000 100.000 (Power plant and coal mine) 11 Feni (ferro-nickel smelter) Operational 2.200.000 167.000 12 MHK Zletovo (fertiliser) Abandoned 3.700.000 70.000 13 REK Oslomej Operational 2.000.000 280.000 (Power plant and coal mine) 14 Godel tannery Abandoned 5.600 500 15 OKTA (oil refinery) Operational 3.000 6.000 16 Tane Caleski Abandoned 10 100 (metal surface treatment) Average/total 267.626.810 2.590.325 Source: National Waste Management Plan 2006-2012 (2005)

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5.2 ASSESSMENT USING QUALITATIVE AND QUANTITATIVE DATA

5.2.1 Introduction

The directives to be considered in quantitative assessment are the Landfill Directive and the Packaging Directive. A quantitative assessment of these Directives was carried out for the following reasons: 1. The directives in question have specific targets associated with them, which makes analysis manageable 2. The quality and quantity of waste related data, while not perfect, is sufficient to attempt an analysis 3. Compared with a number of the other waste directives, these Directives are likely to have the largest directly attributable impacts

While making all efforts to calculate reliable quantitative impacts is important, it is also important to note the inherent weaknesses of such a quantitative assessment.

While the directives to be examined set quantitative targets for diversion rates, recycling rates and emission levels, there are still a large number of uncertainties associated with for example the reliability of the baseline figures on waste composition, the volumes of waste generated, collected, etc. and how former Yugoslav Republic of Macedonia will act in the light of the Directives. Hence, presented quantified benefits should be regarded as orders of magnitude rather than absolute figures.

5.2.2 National targets for the future years in the field of waste management When calculation the quantitative benefits of compliance to the EU acquis on waste, policy targets for the future in the field of solid waste management should be taken into account as they will determine the speed of getting compliant to the acquis. Although these aims have been described in strategic plans and programmes, there is still the uncertainty about the actual implementation. In this sense, it is important to note that the National Waste Management Plan for 2006-2012 as described in many parts of this chapter should still be officially adopted.

5.2.2.1 Targets for waste recycling and composting for future years (2010 - 2020)

The National Waste Management Plan for 2006-2012 sets following targets on recovery and recycling:

Table 5-22: Targets for recovery / recycling

Waste type / stream Target To be achieved by Recovery of at least 50% Year 2015 Packaging waste Recycling of at least 25% Year 2015 Biodegradable waste going to landfilling Reduction to 75% Year 2015 Reduction to 50% Year 2020 Source: National Waste Management Plan 2006-2012 (2005)

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5.2.2.2 Future scenarios for bio-treatment (composting) of organic waste∗

COMPOST MARKETS AND MARKET DEVELOPMENT

The potential market for compost application in the former Yugoslav Republic of Macedonia is relatively big due to the large agricultural sector and the limited amount of people living there.

The principal barrier for market development for organic “waste”-derived compost in the former Yugoslav Republic of Macedonia is mainly lack of information on compost usage and its benefits. To open the compost markets an information campaign by the Macedonian government is recommended both for the waste producers (citizens, municipalities) as for the compost users (agriculture and other markets). Such an information campaign is important to make the separate collection and composting of the organic fraction of municipal waste a success. Separate collection and composting is of no use if the composts produced cannot be marketed and applied. On the other hand, markets can only be developed if good quality compost is being produced for which separate collection of the organic waste is recommended. This requires a combination of compost quality regulations and control with market development.

CONCEPTUAL DESIGN AND COST ESTIMATES FOR A “STANDARD” COMPOSTING PLANT(S) IN THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA

The National Waste Management Plan includes two scenarios for a conceptual design and cost estimates for a “standard” composting plant(s): • for the composting of the separately collected organic fraction of domestic and green waste. • for the composting of the organic fraction of mixed domestic waste.

Separately collected organic waste The total investments for a composting facility for separately collected organic waste with a capacity of 10.000 tons/year is calculated at € 1.05 million, excluding the acquisition costs for land required. The treatment costs are calculated in the range from € 20.6/ton to € 25.9 per ton of organic waste (without costs for land acquisition).

The total investments for a composting facility for separately collected organic waste with a capacity of 3.500 tons/year is calculated at € 640,000, excluding the acquisition costs for land required. The treatment costs are calculated in the range from € 33.0/ton to € 42.9 per ton of organic waste (without costs for land acquisition).

Mechanically separated organic fraction of mixed domestic waste If mixed domestic waste is brought to the composting facility instead of separately collected waste this has large consequences for the economic feasibility. About 40.000 tonnes/year of domestic waste should be brought to the facility to be able to compost 10.000 tons of organic matter after mechanical separation of the organic fraction. The remaining 30.000 tons will still have to be landfilled (or incinerated if applicable). The separation of 40.000 tonnes of mixed domestic waste will increase the equipment and construction costs in 10 to 15 %. Higher investments also result in an increase of the capital and maintenance costs for both the civil and M/E works, approximately 13 %/year.

∗ Source: National Waste Management Plan 2006-2012 (2005), Annex 5 - Special Study on Composting

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When the smaller capacity is considered, 14.000 tons/year of mixed waste is brought to a composting facility of which 3.500 tonnes of organic material will be separated and composted. The remaining 10.500 tons will still have to be landfilled (or incinerated if applicable). The separation of 14.000 tons of mixed domestic waste will increase the equipment and construction costs in 10 to 15 %. Higher investments also result in an increase of the capital and maintenance costs for both the civil and M/E works, approximatelly 14 %/year.

5.2.3 Landfill Directive When calculation the quantitative benefits of compliance to the EU acquis on waste, policy targets for the future in the field of solid waste management should be taken into account as they will determine the speed of getting compliant to the acquis.

There are a number of important aspects of the Landfill Directive, which will give rise to significant benefits. This study splits the quantitative assessment into two parts, each one dealing with a different quantifiable aspect of the directive. The first section deals with the requirement to capture methane emissions from landfill. And the second section deals with the impacts from the targets for diversion of biodegradable municipal waste from landfill.

To capture the possible approaches in the quantitative assessment, this study has examined two different scenarios. The first involves meeting these diversion targets purely by a mixture of recycling and composting. The second involves building sufficient incineration plants. In reality the approach taken by the the former Yugoslov Republic of Macedonia is likely to adopt a mixture of recycling/composting and incineration to meet the diversion targets. For the quantitative assessment of this Directive, the study team has therefore been able to address: • Changes in methane emissions from landfill • Changes in quantities going to landfill • Increase in recycling and composting of biodegradable component • Increase in the incineration of biodegradable component

What the study team has not been able to quantify, includes: • Level of reduced leachate into land and groundwater; • Reduction in the risk of explosion or health impacts from gaseous emissions; • Reduction in the risk of spread of disease due to reduced potential base for disease; • Reduction in odours and visual disturbance from landfill sites; • Reduction in noise and disturbance from transport to landfills.

5.2.3.1 Methane Capture

ESTIMATING METHANE EMISSIONS In reference to the (existing) non-compliant municipal landfills and based on a set of recommended technical remediation measures, three main remediation options were identified in the National Waste Management Plan: - Class I; dislocation: for landfills with waste deposit less than 3.000 m3 - Class II; earthworks + waterproof + cover layers: for landills in the range 3.000-100.000 m3 - Class III; divided in following sub-classes:

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o Class III.1; earthworks + waterproof + passive degasification + cover layers; for landfills with deposit in the range 100.000-500.000 m3 o Class III.2; earthworks + waterproof + active degasification + cover layers: for landfills with deposit more than 500.000 m3

After-care phase needs to include various maintenance, monitoring and control activities regarding the landfill gas, for instance: • collection and treatment of the landfill gas and monitoring of the gas quality; • maintenance of the gas collection and equipment.

Based on developed priority list and in cooperation with municipalities, the National Waste Management Plan foresees that the MoEPP needs to complete a comprehensive national survey programme for non- compliant municipal landfills. The programme will provide basis for a detailed national reclamation action plan for their closure and reclamation, as well as basis for setting targets for landfill gas capture. For time being, these targets have not been set.

New regional landfills in the former Yugoslav Republic of Macedonia will be under the IPPC permitting regime as new installations. Thus, management of the methane emissions will be part of this permitting process.

In order to attempt a quantification of the external benefits associated with the Landfill Directive, it is important to have an estimate of the current level of emissions of methane from landfill.

Methane gas is produced from landfills at varying rates from different materials. In order to understand the quantities of methane produced in landfills, one would have to understand the nature of the waste landfilled over the past 30 years or so, and to understand the nature of the landfill conditions.

In this study data has been used from the UNFCCC inventory and high and low value for emissions per tonne of MSW landfilled have been estimated (see Annex 5).

The work has been performed with three values for methane emissions: • UNFCCC data; • Our own low estimate; and • Our own high estimate.

UNFCCC data:

Taking into account that 1kg CH4 equals 21 CO2 equivalents, the figures presented on the contribution of methane from solid waste disposal sites in the Macedonian GHG National Inventor Summary Report (2006) are used as the most up-to-date:

GHGs/Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

CH4 [kt] - Waste total 35,8 35,9 33,5 34,6 34,9 36,7 37,0 36,9 37,7 37,3 37,5

CH4 [kt] - Solid Waste Disposal Sites 32,2 33,3 31,2 32,2 33,0 34,7 35,1 35,0 35,7 35,4 35,7

Own low and high estimates:

Our own estimates result in a range between 10,0 ktonnes CH4 and 99,9 ktonnes CH4 emissions for the year 2004, taking into account 572.381 tonnes of waste has been generated in 2004 of which 97% has been landfilled or dumped.

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It is worth noting that the UNFCCC values do fall within the range of our calculated values.

PROJECTIONS AND BASELINE

Having estimated the amount of landfill methane, the next step in the quantitative assessment involves calculating how much of this methane will be collected and by when.

In 2004, no methane is captured at landfills, only 3 biogas installations are active running on biodegradable waste. The amount of methane captured at the landfill is assumed to remain low until 2010 and then to increase in one step to a specified maximum percentage (60%) of what is emitted in 2010. We have used a maximum recovery level of 60%, which, upon examination of a number of sources that range considerably, seems sensible. White et al (1995)20 assume that 40% of landfill gas is typically recovered, although estimated recovery efficiencies of around 90% have been reported (Rodríguez- Iglesias et al, 1999; Huber and Wohnlich, 1999)21.

We suspect that the effect of the Landfill Directive will lead to reductions over time but contributions from past landfill deposits will remain significant. Therefore, given the levels of uncertainty concerning future arisings, and given also that we have used a range of estimates for current emissions, we have assumed constant emissions from 2010.

We have assumed: • A baseline of zero methane capture from landfill sites ; • All gas capture is related to the directive itself (though other influences, e.g. climate change policy / politics will play a role).

QUANTITATIVE RESULTS

Table 5-23 present the amount of methane capture under the three values for methane emissions data.

Table 5-23: Estimates of reductions in methane emissions per year by 2010 (in ktonnes)

UNFCCC* Low Estimate High Estimate former Yugoslav 21,4 6,0 60,0 Republic of Macedonia * Based on the latest UNFCCC data available for 2006 and 60% capture level.

20 White, P.R., Franke, M., Hindle, P. (1995) Integrated Solid Waste Management: A Lifecycle Inventory, Blackie Academic & Professional, Chapman & Hall, pp. 362.

21 Rodriguez-Iglesias, J., Marañón, E., Sastre, H., and Castrillón, L. (1999) ‘Characterisation of extraction wells and recovery of biogas in municipal solid waste sanitary landfills’, Proceedings Sardinia ’99, Seventh International Waste Management and Landfill Symposium, S. Margherita di Pula, Cagliari, Italy; 4-8 October 1999, Volume II, p.457-64. Huber, A., and Wohnlich, S. (1999) ‘Gas collection layers’, Proceedings Sardinia ’99, Seventh International Waste Management and Landfill Symposium, S. Margherita di Pula, Cagliari, Italy; 4-8 October 1999, Volume II, p.465-70.

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5.2.3.2 Meeting Landfill Directive Article 5 Targets

We have effectively chosen two strategies for the way in which the former Yugoslav Republic of Macedonia will meet Article 5 targets of the Landfill Directive: • Maximum Recycling / Composting Scenario: in which the former Yugoslav Republic of Macedonia pursues an intensive source separation programme generating dry recyclables and compostables. • Maximum Incineration Scenario: in which, the former Yugoslav Republic of Macedonia incinerates an additional quantity of waste next to the quantities defined in the maximum recycling / composting scenario.

The quantitative methodology calculates, using data sets for the present waste arisings and treatment processes, how much biodegradable waste would have to be diverted from landfill by each of the target years. Using this information we are then able to estimate how much waste would be diverted into each possible treatment option depending on the scenario in question.

Given the amount of waste, which needs to be diverted from landfill, we can calculate the difference between an extrapolation of the present situation and the impact of the Landfill Directive in terms of increasing various treatment capacities compared with reducing landfill capacity.

STRATEGY SCENARIO 1 - MAXIMUM RECYCLING / COMPOSTING

There are a number of important factors affecting recycling and composting schemes including the need for participation in separation schemes, and the need for reliable markets for end products. In order to reach diversion targets via recycling and composting, the former Yugoslav Republic of Macedonia would have to implement the necessary schemes over-time, well in advance of the target dates to approach sufficient diversion to meet the Landfill Directive.

Assumptions are based on country specific data collected, targets defined in the National Waste Management Plan, targets as defined by the Landfill Directive and more general assumptions made on targets as to be reached to be in line with good practice (e.g. share of waste collected).

In the table below, the assumptions made to calculate the projected total waste generated, collected and treated are presented:

Table 5-24 : Assumptions for the Municipal Waste Flow for the Period 2002–2020.

Assumptions for the Forecast for the Flow of Municipal Waste Current situation Target1 Year1 Target 2 Year 2 Population growth 0,20% GDP growth 4% 5% Coverage of waste collection 70% 95% Share biodegradable waste 26% 26% Share packaging waste 17% 17% Share MSW landfilling 97% 57% 2020 Share MSW recycling 3% 25% 2015 35% 2020 Share MSW incinerated 0% 0% 2020 Share biodegredable waste composted 0% 65% 2020 Residues: From recycling: 10% From bio-treatment: 20% From incineration: 30%

It is important to remark that at the moment no MSW is incinerated and that this situation is assumed to remain as such in this scenario as no intentions have been made to do so in the Solid Waste Management Plan.

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The volume of waste generated in the future is an uncertain factor which is covered by calculating the total volumes generated under two separate sub-scenarios based on the population growth and GDP growth: • The first one is a sub-scenario based on a zero growth of the volume of waste generated. The change in volume is solely linked to the change in population. • The second one is a sub-scenario based on a high growth rate of the volume of waste generated. The change in volume is linked to a change in population and for a 100% linked to the change in GDP.

It is a reasonable assumption that the actual waste generation rate will be between these two margins.

The estimate on the future waste flow calculated on the basis of the above-mentioned assumptions is illustrated in following figures:

Scenario 1- zero MSW generation growth

700.000

600.000

500.000 Generation Coverage 400.000 Recycling Composting

ton/year 300.000 Incineration Final Disposal 200.000

100.000

- 2000 2005 2010 2015 2020 2025 Years

Scenario 2- high growth MSW generation

1.200.000

1.000.000

800.000 Generation Coverage Recycling 600.000 Composting ton/year Incineration 400.000 Final Disposal

200.000

- 2000 2005 2010 2015 2020 2025 Years

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Calculated estimates by 2020 through implementation of the Landfill Directive and adoption of the proposed strategy scenario are: • Total MWS amounts : 591-1.061 ktonnes/year generated of which 561-1.008 ktonnes/year collected • recycled material: 196-353 ktonnes/year • composted material: 95-170 ktonnes/year • incineration : / • Landfill Disposal : 389-699 ktonnes/year

The amount of waste diverted from landfill and hence the reduction in the level of waste to landfill thus amounts to a range between 291 and 523 ktonnes/year for the year 2020.

STRATEGY SCENARIO 2 –INCINERATION

For this scenario, it is assumed that waste incineration plants will be established. Thus, at the end of the planning horizon (year 2020), it is assumed that 35% of the total municipal waste amount is treated by incineration which reflects a situation in which one big incineration plant with a capacity of 240 ktonnes/year to one big plus a smaller incineration plant (240+175 ktonnes/year) should be built to reach this target. No changes are made on the targets for re-cycling and bio-treatment as it is considered difficult to implement these measures beyond the actual requirements of the EU legislation.

Table 5-25 : Assumptions for the Municipal Waste Flow for the Period 2002–2025, Strategy Scenario 2 – Increased Incineration.

Assumptions for the Forecast for the Flow of Municipal Waste Current situation Target1 Year1 Target 2 Year 2 Population growth 0,20% GDP growth 4% 5% Coverage of waste collection 70% 95% Share biodegradable waste 26% 26% Share packaging waste 17% 17% Share MSW landfilling 97% 31% 2020 Share MSW recycling 3% 25% 2015 35% 2020 Share MSW incinerated 0% 35% 2020 Share biodegredable composted 0% 65% 2020 Residues: From recycling: 10% From bio-treatment: 20% From incineration: 30%

The estimate on the future waste flow calculated on the basis of the above-mentioned assumptions is illustrated in Figure 5-7 and Figure 5-8:

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Scenario 1- zero MSW generation growth

700.000

600.000

500.000 Generation Cov erage 400.000 Recycling Compos ting

ton/year 300.000 Inc ineration Final Disposal 200.000

100.000

- 2000 2005 2010 2015 2020 2025 Years

Scenario 2- high growth MSW generation

1.200.000

1.000.000

800.000 Generation Coverage Recycling 600.000 Composting ton/year Incineration 400.000 Final Disposal

200.000

- 2000 2005 2010 2015 2020 2025 Years

The amount of waste diverted from landfill and hence the reduction in the level of waste to landfill thus amounts to a range between 488 and 876 ktonnes/year for the year 2020.

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CHANGES IN LEVELS OF LANDFILL DISPOSAL

Connected with the increase in recycling/composting and incineration (depending on the scenario examined) there will be an associated reduction in landfill disposal. The estimates have been calculated for this reduction in landfill disposal per year, by 2020, under both scenarios. It compares a baseline prediction of landfill disposal levels (a BAU scenario), to the predicted situation under the Landfill Directive.

The increased incineration scenario will lead to larger amounts of waste being diverted from landfill. Therefore, in order to meet Landfill Directive diversion targets, principally adopting incineration would require lower landfill capacities than would be required of recycling/composting. Both the financial costs, and the constraints on access to capital, should favour a strategy based on materials recovery rather than energy recovery.

The level of disposal to landfill is around 33% lower than the level that it would have been without the implementation of the Landfill Directive based on the proposed recycling/composting strategy scenario. Where the Landfill Directive is implemented with support of an increased incineration strategy, the amount of waste sent to landfill in 2020 would be around 48% lower than the amount that would have been landfilled without the directive’s implementation. In the former case, between 190 and 341 ktonnes will have been diverted from landfills and in the latter case between 277 and 497 ktonnes. This would significantly reduce the pressure on existing landfills and reduce the need for new landfill site construction.

5.2.4 Packaging Directive

The Directive sets recycling targets for a number of materials in the waste stream. To calculate the benefits, this study predicted the impact of the directive in terms of future recycling rates for these materials, and compared with an extrapolation of the present situation (in terms of current recycling rates).

At the moment, there is no strategy or action plan for compliance with targets set by the EU Directive on packaging and packaging waste in the former Yugoslav Republic of Macedonia. Hence, concrete packaging recycling targets have not been set yet. The National Waste Management Plan indicates following concrete actions/tasks: • Policy and Legislative Measures: Packaging law - year2008. • Institutional Measures: o Development of compliance scheme for recovery and recycling of packaging waste (“Producer responsibility”) – year 2008 / 2009 o Negotiation / agreement for the targets /conditions with producers/importers - 2007 • Financial Measures: o Cost for the compliance with Packaging Directive - 2007

5.2.4.1 Recycling Rates

One of the most significant uncertainties is how the former Yugoslav Republic of Macedonia will meet the targets set by the Packaging Directive. The directive sets minimum recycling quotas for the materials, however, there is also an overall cumulative minimum recycling target for all materials.

The scenario for compliance is:

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Table 5-26 : Recycling scenario for compliance with the Packaging Directive

Packaging recycling targets 2020 Glass 60% Plastics 22,5% Paper 60% Metals 50%

These are the minimum recycling targets required under the directive. The recovery option makes up the slack between the directive’s requirement for 60% recovery of all packaging (or incineration at waste incineration plants with energy recovery).

5.2.4.2 Packaging Data

General information on the current share of packaging waste is presented in chapter 5.1.4 in Table 5-10 and Table 5-11

5.2.4.3 Baseline and Extrapolation

To understand the benefits associated with the directive, one needs to have a baseline from which to proceed. An overview of the recycling rates for paper / cardboard, PET, hard plastic, film, used tires, car batteries, glass, and metal for the year 2004 is presented in Table 5-5.

We projected forward on a 2% per annum growth (reflecting the supposed linkage between real per capita GDP and per capita packaging waste arisings). We have kept composition constant, though this is bound to change over time.

This study then combined these provided baseline levels of recycling, packaging arisings and composition data with the directive targets for recycling to derive the changes in levels of recycling each year from 2004 to 2020.

Table 5-27: Estimated tonnes recycled and the changes in recycling levels per year (in tonnes and percentage) due to the Packaging Directive by 2020,

Waste type tonnes/year recycled Change in recycling compared to a BAU scenario by implementing the Packaging Directive tonnes/year % Glass 11.508 +11.508 +100% Plastics (PET) 3.320 +3.318 ca. +100% Paper 71.247 +46.310 +65% Metals* 529.181 0 0%

*: the current recycling rate is 98% for metals, the former Yugoslav Republic of Macedonia is a net importer of metal waste for recycling purposes while the target for metals as proposed in the Packaging Directive for 2020 is 50%.

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5.3 SUMMARY AND INTERPRETATION OF RESULTS

5.3.1 Summary results of the assessment

The main benefits from implementing the Waste Directives are: • Better management and monitoring of waste streams through the Waste Framework Directive. • Lower pollution to groundwater and surface water from leakage of unprotected landfills and, as a result, lower risks of contaminating drinking water. • Reduced health and explosions risks as well as lower impact on global warming as methane emissions from landfills are captured and made to generate energy. Existing landfill sites will have to be upgraded and illegal dumping sites closed. • Benefits to eco-systems and other environmental resources as emissions from waste activities into air, water and soil are reduced and the recovery of energy is increased through the Incineration Directive. • Increased efficiency in the use of material and reduced production of primary material as a result of higher levels of recycling. This is a result of the targets of the Packaging Directive, diversion targets from the Landfill Directive and targets of the WEEE Directive, ELV, Batteries, Waste Oils etc. directives. • Lower costs for waste collection, treatment and disposal, as less waste will be produced.

EU waste directives will help avoid:

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5.3.2 Extent of the benefits • The full implementation of the Landfill Directive will lead to a reduction of methane emissions (captured) of between 4 and 40 ktonnes annually by the year 2020. • Associated with the increase in the levels of recycling/composting and incineration, implementation of the Landfill Directive will lead to a decrease in landfill disposal levels. Estimates for a decrease in landfill disposal levels (per year) by the year 2020 were calculated as the levels of disposal under the Landfill Directive, as a percentage of the non-implementation baseline. Under the recycling/composting scenario the disposal would be around 67% of non- implementation levels (i.e. a 33% decrease), and under the incineration scenario it would be around 52% of non-implementation levels (i.e 48% decrease). • The quantitative assessment of the impacts of the Packaging Directive provide predicted changes in recycling levels across all materials. The estimates for the increases in recycling levels for the former Yugoslav Republic of Macedonia, per year, by 2020 are: - for paper: +46,3 ktonnes; - for glass: +11,5 ktonnes; - for plastic (PET): +3,3 ktonnes; and - for metals: no change as the current recycling rate of 98% is already higher than the target of the Packaging Direcitve • For all the recyclables together, the increase will amount to around 61 ktonnes.

5.3.3 Summary of analysis approach

The qualitative assessment as described in the general part covers the following waste directives: Framework Directive on Waste, Landfill Directive, Packaging Directive, Incineration Directives, Hazardous Waste Directive, Disposal of Waste Oil Directive, Sewage Sludge and Soil Directive, Batteries and Accumulators Directive, Disposal of PCBs and PCTs Directive, and the Titanium Oxide and Daughters Directive. Each analysis described the health, non-health exploitation, ecosystem, social and wider economic benefits of compliance.

The quantitative assessment on the other hand, only examined the potential benefits from the Landfill Directive and the Packaging Directive and is covered for each SEE country in this chapter. As described in the methodological discussion, the externalities that we were able to value were principally associated with health impacts. There are obvious gaps in the scope of both the methodology and the directives examined.

The qualitative assessment outlines important possible benefits from the directives not analysed in the quantitative assessment. For example, the potential benefits for health from compliance with the Hazardous Waste Directive are significant. Therefore it would be possible to apply this study’s methodology, which has yielded interesting results, to the assessment of other Directives such as this one. An examination of the extent and type of qualitative benefits (especially related to health for this methodology) from the directives not examined in the quantitative section gives a good indication of the scope for expanding the analysis. Examples include quantitative assessment of the benefits from the Hazardous Waste Directive (as mentioned above), the Sewage Sludge and Soil Directive and the Incineration Directive.

The results from this study do allow some important comparisons to be made. The advantage of attempting a holistic assessment of the benefits is that one is able to examine the combined results from the qualitative and quantitative assessments. While these results are not directly comparable, they are informative in a number of other ways.

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6 BENEFITS ASSESSMENT OF NATURE RELATED DIRECTIVES

6.1.1 Current Status of Biodiversity and Ecosystems

A description of the main ecosystems and biodiversity feature is given below, together with information on protected areas. Additional details can be found in Annex 1 and 2. More on the threats affecting these ecosystems can be found in the general part.

FOREST ECOSYSTEMS

Forest ecosystems cover a large portion of the former Yugoslav Republic of Macedonia. The total area under forests is 955,300 ha or 37% of the territory of the former Yugoslav Republic of Macedonia22. About 90% of this area is owned by the state, while 10% are private.

The forest consists of 82% deciduous forest species, 12% of coniferous forest species, and 6% of mixed forest species. According to their origin, 29% of the forests are categorized as high forest and 71% as low forest.

The Macedonian forest can also be sub divided into:

The “Oak region”: distributed within the lowlands and highlands up to 1,100 m and covers 73% of the total forested area.

The “Beech region: covers the mountainous areas between 1,100-1,700 m (about 22% of the total forested area).

The “pre-mountain (subalpine) region”: located between 1,700 m and approximately 2,100 m. In these areas, the forests are almost destroyed.

Direct reasons for the reduction of forest communities include forest desiccation; forest fires; forest destruction due to construction activities such as buildings, expansion of tourist settlements, roads, railroads and artificial lakes; land drainage; mining excavation and fill for slag storage; construction of ski- lifts, transmission lines and television transmitters; forest clearing etc.

Many of these factors also affect the status of faunal groups. The reduction of the populations of individual species can be best seen in the Oak region.

DRY LAND/GRASSLAND ECOSYSTEM

They occupy a large part of the former Yugoslav Republic of Macedonia and occur in the lowland and highland belt (in the highland pastures), and often in secondary habitats primarily because of permanent degradation of forest phytocenoses (mainly Oak), but also due to recolonisation of abandoned farmland by grassland species. Still, information of the size of the area occupied by this ecosystem is not available. The ecosystems themselves are present at altitudes from 60 m to approximately 1,200 m msl.

The dryland/grassland ecosystems are vegetation types which are permanently expanding. Halophytic communities, which grow on salty soils, developed in small areas. They are under intense anthropogenic influences due to cultivation. The plant communities developing on soils containing arsenic and antimony

22 Agricultural Report 2005, MAFWE

87 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of nature related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report are also in potential danger of destruction because they are present on only a small area, where mining and other activities were performed in the past and are likely to be continued in the future. The communities developing on limestone and dolomite are not completely studied. They develop in areas where marble is extracted. This activity has a negative effect on their biological viability, both survival and maintenance.

MOUNTAIN ECOSYSTEMS

They are found within a large portion of the former Yugoslav Republic of Macedonia, especially on mountains over 2,000 m in elevation –where there are optimal conditions for their development. Mountain and high-mountain vegetation which develops above the upper forest boundary (over 1,800 m) is very rich and diverse.

Floral and faunal components of the mountain ecosystems are not generally endangered and their distribution and preservation correspond to the specific environmental conditions of each mountain massif. Mountain ecosystems within the three national parks of the former Yugoslav Republic of Macedonia (Galichitsa, Mavrovo and Pelister) are protected by specific legal regulations.

The factors affecting the state of mountain ecosystems are varied. These include overgrazing and the uncontrolled removal of certain plant species for sale or personal use. The construction of ski-lifts, mountaineers’ towers, television transmitters and other aerial systems usually installed on mountain peaks often causes degradation of some of those plant communities which have restricted distributions on the summits of the mountains (because of the configuration of the terrain, strong winds etc). With regard to the faunal component of the mountain ecosystems, indirect anthropogenic impacts do not threaten the stability of the populations.

WETLAND ECOSYSTEMS

Wetland ecosystems in the former Yugoslav Republic of Macedonia are present in various forms (relict lakes, glacial lakes, reservoirs, rivers, streams, springs and temporary waters). The group of key aquatic systems includes the three natural lakes and the developed river network, especially the watershed of the Vardar River. The full size of the area of the wetland ecosystems is about 2,000 ha. Their current status is threatened by global climate changes and anthropogenic activities.

Lakes The three natural lakes provide favourable conditions for the development of aquatic macrophytic (floating and submersed) vegetation, as well as the development of shoreline marsh species. • Ohrid Lake, with its relict and endemic organisms, represents the most significant lake ecosystem in Europe (under the protection of UNESCO). The status of Ohrid Lake is slightly better than that of the other lakes. Nevertheless, the existing integrated collection/treatment system for communal and industrial wastewater along the shoreline needs to be improved. • Prespa Lake is the second largest natural lake. The continuous reduction of its water level over the years has adversely affected the state of the floating vegetation and faunal communities in its littoral zone. The presence of large quantities of organic silt on the lake bottom accelerates the process of eutrophication, revealed by the appearance of phytoplankton blooms during the summer period. • Doyran Lake is the smallest tectonic lake in the former Yugoslav Republic of Macedonia. Its status is the most alarming. Since 1988, the level of the water has drastically fallen, contributing to a decrease in water depth and receding of the shoreline, accompanied by a complete loss of the littoral zone and its related biological communities. The accelerated eutrophication has led to intensive sedimentation and a dramatic reduction in the epibenthic communities, as well as serious changes in the structure of the Algal microflora. These changes have particularly affected

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the reed zone and other aquatic macrophytic vegetation. The zooplankton community, under the influence of these changes, has lost its limnetic character. Of the 94 zooplankton taxa existing in 1988 remain only 28 taxa. In order to restore the disturbed environmental balance, efforts have been made to bring additional quantities of water to the lake, which is expected to improve the state of the biological communities within the lake ecosystem.

Rivers The former Yugoslav Republic of Macedonia has a very rich network of rivers, the status of which is also alarming. Almost all of the rivers are under great direct and/or indirect anthropogenic pressures. Many river ecosystems are threatened by wastewater pollution, especially Vardar River – which is the major recipient of all types of wastewater (communal, industrial and agricultural).

Reservoirs have been built on some rivers, and these represent a sink for persistent substances (e.g., Kalimanci and Tikvesh Lakes). The quality of reservoirs which provide drinking or industrial water (Mavrovitsa, Strezhevo, Turiya) has been worsened by natural eutrophication and, in particular, by inappropriate fish stocking and exploitation.

Benthic communities in the riverine ecosystems are showing reduced abundance, which will ultimately lead to a decline in fish populations. Six out of the 20 endemic fish species within the former Yugoslav Republic of Macedonia are found in riverine ecosystems. Three of these are considered to be globally threatened species.

Swamps and marshes Wetland vegetation, which used to develop over large areas of swamps and marshes within all the valleys of the former Yugoslav Republic of Macedonia, experienced great changes under past drainage regimes which converted most of these ecosystems into arable land. In some of them, (e.g., Monospitovo Marsh), numerous rare and endangered Algal taxa were formerly found.

The relict wetland communities, which today appear mainly in a fragmentary state, are the most endangered. They develop on organic soils which are very suitable for growing early vegetable plants (Bansko) after drainage. Some which were present near natural lakes have been destroyed simply because they represent unwelcome marsh vegetation.

Impacts to most of the swamps and marshes have caused a reduction in the populations of all Amphibians, as well as individual species of other invertebrate and vertebrate groups. Only Belchishta Marsh still exists in its original state, where the population of Otters (Lutra lutra), a globally threatened species, is the largest. Water capture/extraction from mountain springs and streams often causes the desiccation of mountain marshes and bogs, and thus the degradation of wetland communities. These effects have been recorded on the mountains Yakupitsa, Nidze, Pelister and Shar Planina and in the vicinity of the Pehchevo-Judovi meadows.

AGRICULTURAL ECOSYSTEM

Agriculture occupies about 50% of the national territory, ie about 1.275 million ha in 200423 . Agricultural land is not a key habitat for species in the former Yugoslav Republic of Macedonia. Nevertheless the former Yugoslav Republic of Macedonia possesses significant agro-biological plant diversity due to its favourable geographic location and climatic conditions. Agricultural production is not intensive in many regions, so there is no big adverse impact on the local species. In such areas, indigenous species and locally-bred varieties are grown, representing an important source of genetic

23 Agricultural Report 2005, MAFWE: Of the total agricultural land 569.246 ha (2003) or 560.000 ha (2004) is classified as cultivated land and 732.963 ha (2003) as pastures.

89 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of nature related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report material no longer appearing within the genotype of commercial species. Although in the past 50 years new breeds have been imported, indigenous breeds still exist.

MIGRATION CORRIDORS

Bird migration is insufficiently studied, but earlier data suggest that important number of individuals does use Vardar valley for migration. The Ohrid and Prespa Lakes hold important number of waterfowls during wintering period.

6.1.2 Indicators used to assess the current state of nature protection and biodiversity

The main indicators used to assess the current state of nature protection and biodiversity in the former Yugoslav Republic of Macedonia include: • size of protected areas (expressed as per cent of country surface area and number), complemented by number of rare and threatened habitats; • estimates of the expected growth in protected areas; and • species status: total number, endemic and threatened species and species density.

These indicators can give only a general indication of the nature protection and biodiversity status in the former Yugoslav Republic of Macedonia. Each is discussed in more detail below.

SIZE OF PROTECTED AREAS

Since 1948 when the First National Park had been declared, there is an increasing trend in the number and the total surface of the different national categories of protected areas.

Currently the network of protected areas in the former Yugoslav Republic of Macedonia comprises 74 items of nature, covering a total area of 187.770 hectares or 7.3 % of the national territory24.

According to the old national categorization, protected areas are divided into: national parks, strict natural reserve, site of special natural characteristics, natural monuments and areas outsides natural reserves containing certain plants and animal species. The figure below shows the number of designated areas according to national categories.

60 53 50

30 number 20 14

10 3 4 3 0 National Park Strict Nature Reserve Site of Special Natural Character Area Outside Nature Reserves Natural Monument containing Certain Plant and Animal Species Figure 6-1: Number of designated areas according to national categories

24 NEAP II - Nature and Biodiversity, April 2005

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In accordance to the new Law on Nature Protection (2004), a new categorization has been introduced in line with the IUCN method - which divides protected areas into: Strictly Protected Natural Reserve, National Park, Monument of Nature, Nature Park, Protected Landscape and Multi-Purpose Area.

The Law stipulates a transitional period of three years after its entry into force when the re-evaluation of protected areas designated prior to its adoption will be completed.

The IUCN categories 25 referred to are presented in the table below.

Table 6-1: IUCN Protected Areas: I-V Management Categories26

Protected Areas : Characteristics and Access Category I : Strict Nature Reserves : scientific research and educational use Category II : National Parks : ecosystems protection, recreation and study Category III : Natural Monuments : conservation of specific/unique natural features Category IV : Managed Nature Reserves/ Wildlife Sanctuaries : conservation of a particular animal or plant species Category V : Protected Landscapes and Seascapes: landscape/seascape protection and recreation use. May include cultural landscapes.

A map of the former Yugoslav Republic of Macedonia protected areas is provided below.

25 The IUCN classification, as presented in Table E.1, includes three more categories: Resource Reserves, Anthropological Reserves and Managed Resource Areas. Under these management categories, economic activities (i.e. resource extraction) carried out in a sustainable manner are allowed (IUCN, 1998). http://sea.unep-wcmc.org/wdbpa/index.htm?http://sea.unep-wcmc.org/wdbpa/download.cfm per cent7Emain 26 Source IUCN (2000)

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Figure 6-2: Natural Protected areas in the former Yugoslav Republic of Macedonia

Some initial activities for establishment of ecological networks are being carried forward. The former Yugoslav Republic of Macedonia is working on the development of Emerald network of Areas of Special Conservation Interest under the Bern Convention. Identification of Emerald sites is done on the basis of the identified habitat types and species of wild flora and fauna present in the former Yugoslav Republic of Macedonia, according to the Resolutions no. 4 and 6 of the Bern Convention, that are in compliance with Annex I and II of the Habitats Directive. At the moment the National Emerald Network includes 16 sites which represent about 80% of the total Emerald Network in the former Yugoslav Republic of Macedonia. The Emerald sites, after the former Yugoslav Republic of Macedonia becomes EU member will belong to the Natura 2000 Network.

Furthermore, there is also a project meant to develop an indicative map of Pan-European Ecological Network in South-East Europe. In addition, the IUCN initiative for the establishment of the Green Belt (along the iron curtain) is taking place. It covers an area at the border with Bulgaria, Greece and Albania.

The management of transboundary habitat networks is lacking. There are some efforts to link the national network of protected areas to the networks of neighbouring countries through different projects, eg related to managed aquatic habitats in the Prespa Lake (with Greece and Albania), Ohrid Lake (with Albania) and Doyran Lake (with Greece). Additional information on these projects is provided in Annex 1 (section ‘Wetland ecosystems’).

Ongoing projects of the Macedonian Ecological Society aims to add the Osogovo Mountain (at the border with Bulgaria) to the IUCN Green Belt initiative.

In addition, a joint project for habitat management in the Mavrovo National Park with Albania is expected to start.

ESTIMATES OF THE EXPECTED GROWTH IN PROTECTED AREAS

According to the Spatial Plan of the former Yugoslav Republic of Macedonia, which was based on previous scientific research (Sectoral Study for Natural Heritage), there are about 265 registered sites which, until 2020, should be put under different protection status (categories of protection) covering about 300.000 ha or about 12 % of the land surface of the former Yugoslav Republic of Macedonia. The registered sites reflect proposal for proclamation of areas under the national legislation that are harmonized with IUCN categories in the new Law on Nature Protection. They are not fully in correspondence with NATURA 2000. There are ongoing activities for the development of the EMERALD network of Areas of Special Conservation Interest, coordinated by the MoEPP.

SPECIES STATUS: TOTAL NUMBER, ENDEMIC AND THREATENED SPECIES AND SPECIES DENSITY

This chapter provides an overview of the flora and fauna species observed in the former Yugoslav Republic of Macedonia, including some insights on endemic and threatened species. For a more detailed description see annex 2. Flora Among the lower plant groups, Algae are represented by the greatest endemism, with 135 endemic taxa. Most have been recorded in Ohrid and Prespa Lakes.

The flora of higher plant groups is quite rich. It accounts for 3700 species, more than 100 of which are endemic. About 10% of the higher plants species are threatened. The National Red List of threatened plant species has not been prepared yet, but a list of species has been drawn according to international

92 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of nature related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report criteria27. The most important centres of endemism are on the high mountains (Galichitsa and Shar Planina), in river gorges (Babuna, Treska and Vardar) and in portions of the lowland belt (Mariovo, vicinity of Prilep).

Table 6-2: Flora - Number of endemic and threatened species among the higher plants

Group Number of species Endemic species Threatened species

Mosses (Bryopsida) 349 2 20 Peat mosses (Lycopsida) 6 - 6 Horsetails (Sphenopsida) 7 - 2 Ferns (Filicinae) 42 1 16 Gymnosperms (Gymnospermae) 15 - 8 Angiosperms - Dicotyledonae 2600 109 283 Angiosperms - Monocotyledonae 600 5 57 Total higher plants 3700 117 392 Source see footnote 25

Fauna A general characteristic of the fauna of the former Yugoslav Republic of Macedonia is its high degree of taxonomic diversity, represented by more than 9,000 species. Diversity and endemism of species in different taxonomic groups in the former Yugoslav Republic of Macedonia is given in the table below. Vertebrates (fish, amphibians, reptiles, birds and mammals) belong to the groups of Chordata. The largest centres of biodiversity for the Mediterranean elements of this class are the lowland areas in south- eastern the former Yugoslav Republic of Macedonia and, for the central-European faunal and boreal elements, the mountain massifs of western former Yugoslav Republic of Macedonia.

Table 6-3: Fauna - Diversity and endemism of species in different taxonomic groups

Taxonomic group Number of species Endemic species

Protozoans (Protozoa) 113 32 Sponges (Porifera) 9 5 Flatworms (Plathelmintes) 85 35 Cnidarians (Cnidaria) 2 - Nemertine worms (Nemertea) 1 - Roundworms (Nemathelminthes) 613 3 Molluscs (Mollusca) 276 95 Segmented worms (Annelida) 160 42 Arthropods (Arthropoda) 7574 367 Chordates (Chordata) 506 23

27 On the basis of: International Red Lists, conventions and directives (IUCN Global Red List, Bern Convention, CORINE species, Habitats Directive etc.), species of national importance (Local endemic and relict species) endangered species and a certain number of extinct species

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Total 9339 602

With a total of 674 endemic taxa (602 species and 72 subspecies), the former Yugoslav Republic of Macedonia represents one of the most important centres of endemism in Europe, in spite of its small land area (more than 600 endemic species). With regard to Vertebrata, the class Pisces (fish) has the highest degree of endemism (34.5%).

Of the major centres of faunal endemism, the three relict lakes are especially noteworthy. The largest, Ohrid Lake, with 216 endemic taxa, has been described as the most important centre for endemism in the former Yugoslav Republic of Macedonia and nearby areas. Also the Prespa and Doyran lakes are noteworthy although, due to their shallower depths, have fewer numbers of endemic and relict species. The groundwater, springs and caves of the former Yugoslav Republic of Macedonia are second in importance as centres of endemism.

The European Red list includes 113 of the vertebrate species present within the former Yugoslav Republic of Macedonia. 17 of the 20 endemic fish are included within the category of globally threatened species: 7 are restricted to Ohrid Lake, 6 to Prespa Lake, 1 to Doyran lake and 3 endemic species occur within other aquatic ecosystems.

According to the European Red List of Vertebrates, birds have the highest number of threatened species (66), then fishes (30), mammals (16) and reptiles (1). The most threatened group in the former Yugoslav Republic of Macedonia are fish that are therefore considered the species in highest need of protection.

A summary graph of vertebrates endemic and threatened species is provided below.

491 500 ВкупноTotal species видови ЕндемичниEndemic species видови 450 ЗагрозениThreatened speciesвидови 400

350 319

300

250

200

150 113 82 100 58 66 30 32 20 24 50 4 16 0 1 0 0 Риби(Pisces) Влечуги(Reptilia) Пт иц и(Aves) Цицачи(Mammalia) Вкупно Fish Reptiles Birds Mammals Total

Figure 6-3: Number of species, endemic and threatened vertebrate species in the former Yugoslav Republic of Macedonia (European Red List of Vertebrates)

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6.1.3 Threats to Biodiversity in the former Yugoslav Republic of Macedonia

In this section the major direct and indirect threats to biodiversity in the former Yugoslav Republic of Macedonia are analysed.

6.1.3.1 Direct threats

HABITAT LOSS AND FRAGMENTATION DUE TO URBANIZATION, INFRASTRUCTURE DEVELOPMENT AND EXTRACTION OF NATURAL RESOURCES:

Uncontrolled urbanisation, de-agrarisation (in the traditional sense) and industrialisation are the main processes that disturb the environmental balance.

Unplanned expansion of urban centres, weekend settlements and tourist-recreational zones, construction of hydropower reservoirs in river gorges, drainage of marshes and swamps are leading to total or partial habitat loss and/or modification

Fragmentation of the landscape/habitats is a burning issue due to the mainly transport infrastructure, dams construction and surface mineral mining. The main cause for habitat fragmentation is traffic infrastructure. Some main roads intersect habitats that serve as bio-corridors for vertebrates, especially large mammals. Railways are very underdeveloped and don not represent a significant threat to natural habitats.

Fragmentation of aquatic habitats occurs frequently within the country, eg due to the construction of hydropower reservoirs. Recommendations for biological minimum for watercourses and for the construction of fish passages are not observed.

OVER-EXPLOITATION OF ECOSYSTEMS AND SPECIES (INCLUDING HUNTING)

Occurrences of illegal fishing and the use of prohibited fishing gear (including certain types of nets, chemicals and explosives) cause great concern. There are also illegal over fishing in the Lakes especially fishing in Ohrid Lake of Salmo Ohridanus and Salmo Truta Letnica which are endemic species.

Overuse of biological resources is also due to uncontrolled collection of medicinal plants, mushrooms and animals for trade, illegal collection of rare plants especially endemic species, illegal collection of birds' eggs and certain species of butterflies, etc.

Based on the Law on Hunting, the hunting master plans (for the period of 10 years) are being prepared for the management of hunting areas. Hunting Inspectorate is responsible for enforcement of such plans. Still, illegal hunting activities are at a high level, although there is no estimation of damaged caused.

Poaching takes place almost continuously.

CLIMATE CHANGE

Based on the evaluation of the impact of climate changes on biodiversity, the future horizontal and vertical distribution of plant and animal species are expected to change (i.e. migration towards the north and/or to higher elevations) particularly affecting the relict plant and animal species living in high mountain zones.

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INVASION BY INTRODUCED SPECIES

Introduced and invasive species are a problem in the former Yugoslav Republic of Macedonia and may affect biodiversity and habitat conservation.

6.1.3.2 Indirect threats

POLLUTION

The pollution of the environment (ie water pollution, terrestrial and soil pollution, air pollution) is a current threat to the natural environment in the former Yugoslav Republic of Macedonia.

The pollution of rivers in particular is a burning issue especially from defuse agriculture sources, point sources of organic pollution from the urban waste waters, industrial pollution especially in the Skopje and Veles region (Vardar River). The lack of water treatment plants is particularly threatening for riverine and lake ecosystems. There are efforts to mitigate this pollution and a lot of projects for building waste water treatment plants are on way and IPPC permits are enacted by the MEPP for all the polluting industries.

More on water and air pollution can be found in the dedicated thematic chapters.

NATURAL HAZARDS

The former Yugoslav Republic of Macedonia does not have significant flooding risk. It is mainly connected with certain hydrological year with high waters, the flooding occur in the area where there are not cleaned irrigation channels from vegetation.

Forest fires usually occur during summer period and most of them are caused by human activities. However, due to their dramatically increased frequency during periods of drought, they can be listed as natural disasters. They are frequent in the sub-Mediterranean and hot continental areas, where communities of scrub forests and Hornbeam are developing, which are important from the aspect of biodiversity. From 1989 to 2005 there were 218 fires noticed with an area of 101 000 ha. The year 2000 is considered as year from this period with the most severe amount of forest fires due to high temperatures and dry year and there were fires noticed on 40 000 ha of forest land28.

The former Yugoslav Republic of Macedonia suffers from high erosion risk and accordingly significant erosion problem.

Droughts / water shortages are frequent natural disasters. They are present during the summer period especially in the eastern and the southern parts of the country. Droughts of short duration are characteristic for a major portion of the country. There are also extended periodic droughts which cause great economy hardships for agriculture, as well as serious damage to the natural inland mesophylic ecosystems.

According to the report of the European Environment Agency29, The former Yugoslav Republic of Macedonia, together with Serbia, Montenegro and Albania was in the “red zone of water erosion in Europe”. The Erosion Map of The former Yugoslav Republic of Macedonia was developed in 1992, while its digital version was finished in 2002. The Map was developed according the empirical methodology,

28 Public Enterprise Macedonian Forests, MAFWE

29 EEA, 1995: Europe’s Environment: the Debris Assessment

96 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of nature related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report with five categories and 12 sub-categories of erosion intensity. According the Erosion Map, 96.5 % of the total area is under the processes of erosion. The total annual production of erosive materials is 17 x 106 m3/year or 685 m3/km2/year, half of which is transported and a further half deposited into natural lakes and artificial reservoirs.

In the former Yugoslav Republic of Macedonia there are 1700 torrential flows comprising 18.229 km2 (71% from the territory of RM). The torrents are divided in to 5 categories of torrential flow, for which first category possesses the highest coefficient of torrent flow. The categories with corresponding surfaces are present in following figure:

1 18.70% 8.60% 13.20% 2 3

4 29.00% 30.50% 5

LAND ABANDONMENT

Land abandonment in the former Yugoslav Republic of Macedonia is a significant phenomenon. The migration from the villages to the cites is mainly due to industrialisation and to better life conditions in the cities. A lot of agriculture arable land is lost as well as highland pastures where afforestation occurs. Arable land is also lost due to reservoir construction and urbanisation.

The total area of agricultural production has noted a declining trend which is the main indicator of non- sustainable and inefficient utilisation. Total agricultural land amounts to around 1,265,000 ha in 2004 (or less than 50% of the total area of the country).

Compared to 2003, the total use of agricultural land in 2004 has dropped by 3% (1,303,000 ha in 2003). A similar decrease in 2004 has followed the use of total arable agricultural land (-2.5% compared to 2003). The biggest drop was recorded in the use of ploughed land and gardens (-3.5% in comparison with 2003) and orchards (-6%), in comparison with data according to agricultural land use in 2003. There is a noticeable increase in the land under meadows, of 9% in 2004 in comparison with 2003. Pastures also follow the general decreasing trend registered in the total arable agricultural land according to category of use in 2004 in comparison with the area of land under pastures in 2003. The decrease rate is around 4% in comparison with the land under pastures in 2003 (from 733,000 ha in 2003 to 706,000 ha in 2004).

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110 arable land & gardens 105 orchards 100 vineyards 95

90 meadow s

80 1999 2000 2001 2002 2003 2004

Figure 6-5: Index of Utilized Agriculture Area by category of use, 2000-2004, 1999=100 (State Statistical Office, 2005)

If we consider the increase in the number of agricultural households, the downward trend in the total arable agricultural land, and the increased employment of the workforce and increased production index, the analysis points out a reduction in the average size of individual farms resulting in an average size of 1.4 ha, and higher individual farm productivity but with higher costs per unit produced. In the long run, such a development structure would not be sustainable.

TOURISM

Tourism represented 1.9% of GDP in 2003, and declining to 1.6% in 2004. In 2003 the former Yugoslav Republic of Macedonia attracted about 480,000 tourists.

The tourism activity seems relatively small and at the moment do not appear to represent a relevant threat to the environment.

LOW PUBLIC AWARENESS

A low level of education and a lack of information, especially in rural areas, have contributed to a low awareness in the general population of the relationship between human activities and the environment, the sustainable use of biological resources and the sustainable transfer of biotechnology.

Furthermore, the growing level of poverty, which does not recognise the principles of sustainable development, is manifesting itself through illegal forest and other resource overuse, hunting and fishing overuse, non-sustainable development of agriculture etc.

INSTITUTIONAL AND ECONOMIC CONTEXT

The natural environment is also indirectly threatened by the reduced and unstable economic power of the State, in addition to the military actions that have been rocking the region for a long period of time.

The institutional capacity in terms of educated and trained staff, equipment and resources is considered quite low.

Nature protection legislation is incomplete, and there is a certain lack of spatial planning regulations for areas with special natural values.

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Furthermore, the stagnation of the economy and the use of outdated technologies, poor quality of energy sources resulting from low economic power and lack of treatment of wastewater and waste gases, are leading to deterioration of the nature.

Competitive market conditions are also favouring the development of newer, more profitable but more intensive farming practices, at the expenses of the indigenous, low producing and/or less profitable genetic types.

6.2 ASSESSMENT USING QUALITATIVE AND QUANTITATIVE DATA

6.2.1 Environmental Benefits

One of the main benefits for the former Yugoslav Republic of Macedonia will lie in the increase in protected areas – both in the level of protection within the areas and their protection from human activity and in the increased breadth of areas planned. In 2004 protected areas covered 7.3% of the national territory (about 188,000 Ha). According to the spatial Plan of the former Yugoslav Republic of Macedonia this percentage should arise to 12% by 2020, covering about 300,000 Ha. The registered sites are currently harmonised with IUCN categories, but do not fully correspond to Natura 2000 sites. In some cases the requirements for protected areas will need to be increased in order to meet Natura 2000 objectives (eg widening the list of protected species in certain areas). Furthermore, there are ongoing activities for the development of EMERALD network Areas of Special Conservation Interest, in preparation of the future implementation of the Birds and Habitats Directives. In general, the bigger the surface protected, the broader the benefits should be – if the Directive’s requirements for conservation and protection measures are put into place. Enhanced protection could improve the living conditions of the rich flora and fauna existing in the former Yugoslav Republic of Macedonia and potentially help saving some species from extinction.

The Habitats and Birds Directives will encourage increased protection of the rich local flora (3700 higher plant species, more than 100 of which are endemic), and reduce the pressures on threatened plant species (about 400). For instance improved forest management, eg in light of the EU Forest Strategy, will likely benefit the Macedonian forest biodiversity, eg through reduced illegal hunting and poaching, reduced forest fires due to human activities, avoiding unsustainable harvesting of medical plants etc, and may lead to a more sustainable harvesting of timber and non-timber products.

Furthermore, the Habitats and Birds Directives will increase the level of protection of the Macedonian fauna, characterised by a high degree of taxonomic diversity (more than 9000 species). Furthermore, with a total of 674 endemic taxa (almost 6.5%), the former Yugoslav Republic of Macedonia represents one of the most important centres of endemism with regard to fauna in Europe. The National Red List has not been prepared yet, but the number of threatened species has been inventoried by European Red List of Vertebrates. This list includes 491 of the vertebrate species present within the former Yugoslav Republic of Macedonia. Threatened species represent a substantial part (23%) of the total species present. Birds have the highest number of threatened species in absolute numbers (66), followed by fish and mammals. The most threatened group though is fish: more than 50% of fish species are threatened.

If the Habitats Directive were in place, there would be legal obligations for the Macedonian government to address issues related to overfishing and illegal hunting. Furthermore, many mammals (especially large ones) are currently threatened by fragmentation, mainly due to transport infrastructure. Implementing EU regulations will enable the former Yugoslav Republic of Macedonia to take into account environmental impacts when planning infrastructural projects through the EIA regulations, and therefore reduce fragmentation.

Protecting migration corridors and natural areas will be key for bird species. Better regulating infrastructure and other building activities, in light of environmental criteria (eg through EIAs) will

99 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of nature related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report benefits all species, and large mammals in particular, as they are the most threatened by fragmentation due to uncontrolled urban/infrastructural developments.

Improved water quality, in line with the Water Framework Directive requirements, and better control of fishing activities will for instance benefit fish species, many of which are endemic, as they are particularly under threat. Furthermore, the reservoirs that provide drinking or industrial water have experienced quality deterioration due to inappropriate fish stocking and exploitation. Better management of fishing could also enhance the quality of reservoirs water.

The former Yugoslav Republic of Macedonia wetland ecosystems are particularly fragile, due to wastewater pollution and the drainage of swamps and marshes. The status of the Ohrid Lake, the Prespa Lake and, in particular, of the Doryan Lake is alarming, due to a drastic reduction of the water level and eutrophication. Improving the wastewater systems, reducing water pollution, preventing water level declines and the drainage of marshes will be crucial to preserve many species, given that the relict lakes are among the major centres of fauna endemism in the former Yugoslav Republic of Macedonia.

Furthermore, given that some areas, like the relict lakes, are cross-border areas, enhanced biodiversity protection in the former Yugoslav Republic of Macedonia will also have benefits for neighbouring countries, and for maintenance of biodiversity on a European and global scale.

Implementing the Habitats and Birds Directive can also lead to achieve a more complete environmental data collection, which still needs improvement.

Natura 2000 can also help sustainable agriculture, eg avoiding that current traditional practices becomes too intense and therefore unsustainable.

6.2.2 Social Benefits

Increasing the size and level of nature protection will lead for instance to improve the landscape amenity. Natural parks and biodiversity hotspots will be better managed, therefore offering opportunities for locals and tourists to visit the areas and enjoy open-air activities, enhancing their amenity and recreational value. Improved amenity values will be a major social benefit not only for people living in the former Yugoslav Republic of Macedonia but also for visitors coming from Europe and other parts of the world. This benefit is enhanced by the fact that cross-border areas of conservation between EU/candidate countries and the former Yugoslav Republic of Macedonia (like the Prespa, Ohrid and Doyran lakes) are very significant in terms of biodiversity.

Since local people will benefit from employment opportunities in protected areas, there may be less depopulation. However, this impact will be limited as new employment opportunities will be limited. Furthermore, volunteers and community organisations could also be involved in nature protection activities, eg in Natural Parks. Currently there are almost no volunteers, although they might be a part of projects for nature conservation, implemented by several NGOs.

A reduction in illegal hunting practices and poaching, despite enhancing endangered species protection, could also ensure a safer living environment.

Implementing the Acquis may also improve the education and training of institutional staff, and can potentially lead to spread environmental education in schools and among citizens. Implementation of the nature protection Directives is then likely to lead to increased awareness of the importance of protecting biodiversity, and opens up the opportunity for the adoption of more integrated approaches towards nature protection.

Natura 2000 sites will also offer opportunities for eco-tourism and leisure activities (see section on ‘recreation and tourism benefits’). Also, stimulating activities like eco-tourism and sustainable agriculture

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6.2.3 Economic benefits

The main economic benefits that the Birds and Habitats directives and other EU policies can bring to the former Yugoslav Republic of Macedonia are discussed below.

LOCAL PRODUCTS AND ORGANIC FARMING

There is a potential benefit of developing a niche market for local products or to develop ecologically certificated brands (see also section on ‘Recreation and Tourism Benefits’ below). Such brands could include the products of organic farming and animal raising, medicinal plants and herbs, etc. These could be a valuable economic opportunity and could be protected by a particular/Natura 2000 logo30. Organic farming and biodiversity friendly agriculture could be for example a profitable source of revenue that could benefit from an improved environment. Limitations on the use of pesticides, herbicide and manure in agriculture will diminish the production, but will lead to increased quality. The cost of reduced production could be mitigated of offset by a more rational use of resources (eg improved irrigation systems may reduce significantly the water use). Additionally, organic farming products can be sold at a higher price, and therefore may potentially generate higher profits (for organic farming see also above).

The interest for organic farming and animal rising has been growing in the last few years. The Law on organic agriculture was adopted in 2004 and it regulates the production, processing, marketing and labelling of organic production. The basic aims are human health protection, biological diversity protection, consumers’ protection, guarantee of safety, food monitoring and quality.

There are several organic products made in the former Yugoslav Republic of Macedonia which can be found on the domestic market: wild-collected processed berries by Antares, Kočani; three types of tea by Alkaloid, Skopje; and fresh kaki by the OAP farmers. All other products are still in conversion.

According to PROBIO there are good conditions for production of organic fruits in the former Yugoslav Republic of Macedonia, especially kiwi, figs, kaki and pomegranate. Also there is a good potential in collection of wild crops (herbs, teas, fruits, mushrooms) and some animal breeding sectors such as sheep, goat, cattle.

In 2004, a Programme was prepared for the development of organic agricultural production, which was implemented in 2005. The funds for instigation and development of organic farming production in 2005 amounted to 6,000,000 MKD. After the publication of the Programme in the beginning of 2005, 417 producers (legal and physical entities) with arable land of 783 hectares and around 3,200 hectares of woodlands, pastures and non-cultivated fields registered through the Agency for Development of Agriculture by the end of March 2005.

In 2006, MAFWE has started the activities for preparation of National Strategy and Action Plan of organic agriculture. According to the information from Balkan Biocert, in 2006, a total of 103 farmers have applied for organic inspection and certification in the former Yugoslav Republic of Macedonia, compared to the year 2005 only 51 farmers applied for organic inspection and certification, 22 farmers in 2004 and 13 farmers in 2003.

With the purpose to promote the organic food among consumers in the former Yugoslav Republic of Macedonia, organic stands were opened on the green markets in Prilep, Bitola and Rosoman over the

30 see also ten Brink P, C Monkhouse and S Richartz Promoting the Socio-Economic Benefits of Natura 2000. Background Report for European Conference on “Promoting the Socio-economic Benefits of Natura 2000” Brussels 28-29 November 2002 IEEP 2002, www.ieep.org.uk

101 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Benefits assessment of nature related directives 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report past few years, and in 2006 in Skopje, where organic food was sold under the logo “Tasty Organic Food”. Also, some events were organized, such as the Organic Day in Strumica. Macedonian organic food was also internationally promoted at the Biofach fair in Nürnberg, Germany.

In 2005 there was 1,300 hectares controlled area, within which approx. 300 ha cultivated agricultural land and the remaining area for wild collection. Most of the cultivated areas were orchards or pasture. There were 50 farms in 2005 under conversation period, which produced 10-15 kind of products. The highest volume was produced of Japanese apple (kaki), but even this amount (8 tonnes in 2005) is too few for export, although there would be a market for organic kaki.

This can prove that, with adequate funding and awareness rising, there is significant potential for increasing the size of the organic farming sector.

Industrial +fodder Cereals crops 93,33ha 45,9ha Fruits (incl. grapes); 64,33 ha

Vegetables 39,8 ha Wild collection 1303,43 ha

Figure 6-6: Area under organic production

In 2006 a total of 498.28 ha arable land, 1,592 ha areas for wild collection (aromatic and medicinal herbs and forest fruits) and 505 beehives were inspected and certified as organic.

According to recent studies31, organic farming can be more profitable than less biodiversity-friendly practices. For instance, while some Macedonian apple orchards using pesticides have currently a gross margin32 of about 2,000 EUR per hectare, organic farming practices could rise the gross margin to about 3,800 EUR/ha, given the higher market price of organic apples. Although these figures may be approximated and may not take into account some variable factors, like possible changes in market prices or changes in demand, they give an idea of how, in some cases, there are win-win solutions that can lead to improved environmental protection and economic value added. In some cases these options are not explored fully, due to lack of awareness among farmers or insufficient political will. Implementing EU legislation and improving environmental standards, eg with the aim of obtaining EU funding, could help identify profitable solutions.

31 Kettunen, M., Bassi, S. & ten Brink, P. 2007. Complementary Financing for Environment in the Context of Accession – Innovative Resources. A synthesis of the national level analyses from Bulgaria, Croatia, Macedonia, Turkey and Romania. A project for the European Commission (ENV.E.3/SER/2006/0063). Institute for European Environmental Policy, Brussels. (draft version)

32 The Gross Margin is obtained as the difference between the costs of inputs, such as fertilisers or tractor fuel, and the price obtained for a crop/agricultural product produced with these outputs - per hectare. The calculation does not include fixed costs. It aims to show farmers costs and returns which are likely to alter when the farming practices change. The same approach is taken for calculating both current and future practices, in order for outcomes to be comparable. The key issue for the calculation of opportunity costs in fact is not the gross margin in itself, but rather the difference between gross margins in the current and future practices.

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RECREATION AND TOURISM BENEFITS

The former Yugoslav Republic of Macedonia offers unique possibilities for attracting both foreign and domestic tourists, but, so far, the eco-tourism has not been paid significant attention. Although estimate on tourism potential are not available, it is observed that current contribution of tourism to the former Yugoslav Republic of Macedonia GDP is relatively modest (1.6%). Enhanced environmental protection, together with appropriate branding, can create additional opportunities for tourism and eco-tourism.

The eco-tourism appears an attractive branch of tourism, given the richness of nature sites like mountains, gorges, caves, chasms, rivers, lakes, springs, mineral and thermo-mineral waters, forests, landscapes, picturesque villages, archeological sites, churches, monasteries, mosques, towers, bridges, fortresses, contemporary and old architecture, ethnographic features and folklore wealth - customs, songs, dances, costumes etc. There are certain areas (eg. Brajchino village, Mariovo, etc.), that could be particularly appropriated for eco-tourism locations, but their potential has not been appreciated fully by public authorities.

The Ministry of Economy has started initial activities for the preparation of a Strategy for Tourism where the aspect of eco and sustainable tourism will be paid attention. The tender regarding this activity was launched, but then cancelled. Due to this development it is not known when the Strategy will be available.

Examples of potential eco-tourism activities are represented by the Pilot Eco-Tourism Project "Beautiful Brajcino, Powerful Pelister’33, realised as a component of the Pelister Mountain Conservation Project (PMCP), funded by the Swiss Agency for Development and Cooperation. The village of Brajcino is situated 6 km from Lake Prespa in a valley on the edge of Pelister National Park. It's a perfect location for combining outdoor activities on the mountain with the leisure of the lake. The village has maintained its traditional character and an intimate link with its surroundings.

Growth in the tourism and visitor sector will also stimulate demand for agricultural products. Expenditure on locally produced foods such as fruits (eg apples) and wine is likely to increase. In addition tourism can also be an effective way to encourage and protect the production of traditional goods and practices. Traditional products still exist but are declining. Handicrafts from sheep wool, clay products, sheep cheese production in the highlands, certain cuisine specialities, traditional stone houses, traditional fishing techniques, utility of traditional medicine e.g. herbal medicine and many more exist on the whole territory of the former Yugoslav Republic of Macedonia, but are currently not playing a significant role in tourism. There is high potential to brand these local cultural identities but nothing or very little has been done so far.

The former Yugoslav Republic of Macedonia rivers also currently suffer from overfishing and pollution from agriculture. In time, these rivers could be a source of sustainable quantities of fish for local and tourism consumption, and could also provide a location for a sustainable fishing tourism activity. More information on the benefits related to improved water quality is presented in the chapter on Water.

DIRECT EMPLOYMENT BENEFITS

As the number of protected areas is going to increase by more than one third in the near future, activities related to nature protection, including implementation and drafting of management plans, monitoring, reporting, nature assessments and administrative tasks are likely to generate some increased employment. Nature conservation activities can lead to direct employment – eg on the site, whether site

33 www.brajcino.com

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In the 2 departments for nature protection (Department of biodiversity and Department of special natural heritage) of the Ministry of Environment and Physical Planning, for instance, the number of employees working on the issues of protection of nature and biodiversity is currently relatively small (8 people), and may need to be increased.

The Macedonian National Parks already provide a number of jobs to local communities. The Pelister national park employs 20 fulltime employees and 12 - 15 seasonal workers; the Galicia park offer a job to almost the same number of employees, while the Mavrovo park employs about 45 fulltime people and 20 - 25 seasonal workers. If the number of parks and visitors increases, it is reasonable to expect that more employment will be generated in these areas, especially in management and professional roles.

Increased tourism and eco-tourism induced by improved environmental conditions could also increase job opportunities in the recreation sector, eg generating indirect employment for tour guides, hotels, restaurants etc. It has not been possible within this study to come to a quantitative assessment as to the levels likely here.

A stronger focus on sustainable agriculture and organic farming, eg through incentives such as Payments for Environmental Schemes (PES), could not only prevent land abandonment but also make biodiversity- friendly farming practices economically viable, and therefore create job opportunities (and profits) in the primary sector.

MITIGATION/PREVENTION OF NATURAL HAZARDS

In the former Yugoslav Republic of Macedonia, a better management of nature could prevent floods due to obstruction of irrigation channels caused by vegetation. Furthermore, appropriate forest management and environmental protection could tackle the problem of increasingly frequent forest fires, which are often caused by human activities.

Enhanced ecosystem services could also mitigate the problem of drought and erosion, which represent a serious threat in the former Yugoslav Republic of Macedonia.

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FOREST RELATED BENEFITS

Forests cover a large part of the Macedonian territory (37%) and are key habitats, but not a relevant economic resource. Improved forest management could make them more attractive for (eco) tourism activities.

Implementing the Habitats and Birds Directive may stimulate the development and implementation of sustainable forestry strategies. The usage of timber harvested from state-owned forests for instance has been economically inefficient, and could be improved with better management, eg using logs for veneer rather than as a fuel-wood. There are also possibilities of using (sustainably) medicinal herbs and other forest fruits, eg in the production of essential oils.

Increased training for forest staff and national expert in the field of nature protection monitoring techniques and management can be seen as a wider economic benefit as it increase the scientific capacity of national staff and can lead to economic benefits in the future for the country – eg skills can be transferred further to other countries.

6.3 CONCLUSIONS

A wide range of benefits arise from the implementation of the Habitats and Birds Directives as the former Yugoslav Republic of Macedonia moves towards accession and full implementation. Key results will include the following: • The current area protected in the former Yugoslav Republic of Macedonia is 7.3% of the land area but there are plans to increase the total protected area to 12%; the information available does not allow to establish whether this is a sufficient coverage. The target though represents a net improvement, as the protected areas will increase by almost 40%; arguably the percentage of area covered is lower than EU average, (which range between 15 to 30%)34 and could potentially be increased in the future. • EU accession may help mitigate some of the major threats to biodiversity in the former Yugoslav Republic of Macedonia, such as habitat loss and fragmentation due to urban/infrastructural projects not taking into account environmental impacts, overuse of resources and water pollution (especially from waste water); • The environmental benefits are mainly those resulting from the effective protection of endangered and endemic species (especially fish) and fragile ecosystems (like wetlands); implementing the EU legislation will therefore lead to a reduced the level of risk to which species are exposed (eg pollution, overfishing, illegal hunting, etc); • Key social benefits will be increased amenity and recreation value and awareness raising – particularly important given the low level of environmental awareness (often leading to resource overuse); • The economic benefits can be various: tourism and ecotourism (currently not key economic resources), organic farming, sustainable forestry etc, which can lead to increased employment opportunities.

The above-mentioned benefits should not be seen solely as a national gain. Protecting biodiversity in the former Yugoslav Republic of Macedonia will bring biodiversity benefits at the European and global scales as well (eg in the high biodiversity value cross border areas of the relict lakes).

34 Miller, C., Kettunen, M. & P. Torkler. 2007. Financing Natura 2000 – Guidance Handbook (revised version, May 07). European Commission, Brussels, Belgium, 102 pp.(draft version)

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The benefits of increasing the size and the level of protection of protected areas are shown in following table.

Figure 6-7: Benefits of EU accession for the former Yugoslav Republic of Macedonia - Protected areas: Increased coverage and increased quality

A summary table of the environmental, social and economic benefits is shown in following table.

Table 6-4: Potential environmental, socio-cultural and economic benefits

ENVIRONMENTAL SOCIO-CULTURAL ECONOMIC

• Enhanced protection of high • Employment (job creation, • Generation of revenues from biodiversity areas (eg relict reduced depopulation) tourism (i.e. entrance fees) lakes), including protection of • Volunteer work opportunities • Opportunities for eco-tourism wildlife habitats for native & migratory species • Recreation (eg open air • Additional EU-funding (PES, LIFE + activities) – for locals and programme etc…) • Protection of migratory birds tourists – nationally and across borders • Stimulation of local economic transboundary development • Sustainable harvesting of timber • Amenity value (landscape) – for and non-timber products • Opportunities from forest locals and tourists - nationally (sustainable) harvesting • Sustainable agriculture and transboundary • Commercialisation of forest • Restricted fishing & hunting • Increased safety (eg due to product (medicinal herbs, oils, reduced illegal hunting) • Improvement of environmental mushrooms etc) data • Increased public environmental • Opportunities for organic farming awareness • Enhanced water quality, including • Job creation (eg forest drinking water • Preserving cultural identity management, tourism) • Reduced habitat fragmentation • Public participation in decision- • Reduced waste of resources (eg making improved irrigation techniques) • Promotion of education and research

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7 LITERATURE

Country Study for Biodiversity of the former Yugoslav Republic of Macedonia, 2004; www.moepp.gov.mk

Biodiversity Strategy and Action Plan of the former Yugoslav Republic of Macedonia, 2004 www.moepp.gov.mk

Preliminary Red lists are put in the Country Study for Biodiversity of the former Yugoslav Republic of Macedonia: Annex 3 - Rare and threatened species of flora in Republic of Macedonia, and Annex 4 - threatened species of fauna in Republic of Macedonia

Statistical Yearbook 2006; www.stat.gov.mk

Second National Environmental Action Plan, 2006 ; www.moepp.gov.mk

Agricultural Report 2004 and 2005; www.mafwe.gov.mk

Strategy for Sustainable Development of Forestry in the former Yugoslav Republic of Macedonia, 2006; www.mafwe.gov.mk

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8 ANNEXES

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Annex 1: Regulation on classification of waters (The Official Gazette of the former Yugoslav Republic of Macedonia No. 18-99)

Based on Article 85 paragraph 4 of the Law on waters / " Official Gazette of the former Yugoslav Republic of

Macedonia " No 4/98 / and Article 46 paragraph 3 of the “ Law on the Government of the former Yugoslav

Republic of Macedonia” / " Official Gazette of Socialistic Republic of Macedonia " No 38/90 and " Official Gazette of the former Yugoslav Republic of Macedonia " No 63/94 and 63/98 / the Government of the former Yugoslav

Republic of Macedonia on the session held 23.03.199 brought

REGULATION

FOR CLASSIFICATION

OF WATER

Article 1

With this Regulation the classification is made of the surface waters / water courses, natural and artificial lakes / and of groundwater.

This Regulation shall not apply to mineral and thermal waters.

Article 2

According to the use and the water purity the Water referred to in Article 1, paragraph 1 of this Regulation are delineated in 5 classes, namely:

Class1 This is very clean, oligotrophic water, which in its natural state can, with possible disinfecting, be used for

drinking and production and processing of food product and is suitable for mating and cultivation of noble

types of fish – salmonides. The buffering capacity of the water is very good. It is constantly saturated with

oxygen, with low content of nutrients and bacteria, contains very slight, occasional antropogenic

pollution with organic matters / but not with inorganic matters /;

Class 2 This is a very clean, mesotrophic water, which in its natural state can be used for bathing and recreation,

water sports, production of other types of fish / ciprinides /, or which can be used – after usual methods of

purification / coagulation, filtration, disinfection etc./–for drinking and production and processing of food

products. The buffering capacity and oxygen saturation is present throughout the yea., are good.The

loadings may lead to slightly increased primary productivity;

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Class 3 That is moderately euthrophic water, which in its natural state can be used for irrigation, and after usual

purification methods (conditioning) for industries which do not need drinking water quality. Buffering

capacity of the water is low, bat it maintains the / pH value / acidity at a level still suitable for most fish.

In hypolimnion occasionally oxygen deficit occurs. The level of primary production is considerable, and

some changes in community structure, including fish species can be observed. The load of harmful

substances is evident as well as microbial pollution. The concentration of the harmful substances varies

from natural levels to levels of chronic toxicity for aquatic life;

Class 4 This is strongly euthrophic, polluted water, which in its natural state can be used for other purposes only

after certain processing. The buffering capacity is exceeded, which leads to higher levels of acidity, and

which affects the development of the offspring. In the epilimnion there is oxygen saturation, and in

hypolimnion there is oxygen deficit. Algal blooms are common. Increased decomposition of organic matter

at the same time with the stratification of the water can cause anaerobic conditions and fish death. Mass

occurrences of more tolerant species, fish population and benthic organisms can be affected. Microbiologic

pollution does not allow the water to be used for recreation, at Harmful substances emitted or released

from the sediment / deposits /, can affect the quality of the aquatic life. The concentration of harmful

substances can very from level of chronic to acute toxicity to aquatic life;

Class 5 This is a very polluted, hiperthrophic water. , which in its natural state can be used for other purposes .

The water has no buffer capacity and its acidity / pH value / is harmful for many fish species.Large

problems occur with the oxygen regime, namely saturation in hipolimnion absence of oxygen, leading to

anaerobic conditions in hipolimnion. Decomposers dominate over producers. Fish and bentosic species are

constantly not present. Concentration of harmful substances exceeds acutetoxicity levels for aquatic life.

Article 3

The indicators for the classification of water into classes according to article 2 of this Regulation are:

A. Organoleptic Indicators: visible waste, visible color and color, notable smell, turbidity and transparency

B. Indicator of Acidity: pH value and alcality

C. Oxygen Regime indicators : dissolved oxygen, oxygen saturation, biochemical oxygen demand for 5 o days at 20 C / BOD5 /, chemical oxygen demand from potassium permanganate, total organic carbon

D. Mineralization Indicators: suspended matters, total dry residue after filtration / total dissolved

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solids /

E. Eutrofication indicators: total phosphorus, total nitrogen, chlorophyll “a“ , primary production, saprobic index,level of biological productivity

F. Microbiological Indicators: most probable number thermo-tolerant coliforms bacteria

G. Radioactivity : total activity of heavy radioactive waste materials which can be released into the surface water - water course during one year, shall be calculated by a separate formula

H. Harmful and Dangerous metals and their compounds, other inorganic parameters, phenols , Matters: hydrocarbons, halogenated hydrocarbons , nitrated hydrocarbons , pesticides, other organic compounds

Article 4

Upper values of indicators from Article 3 of this Regulation are set as follows:

Table I: Upper values / maximum permited values or concentrations / of Organoleptic Indicators:

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

A. Organoleptic Indicators:

1. Visible waste - NONE NONE NONE NONE

2. Visible color Little turbidity - NONE NONE turbidity

3. Notable smell None None Hardly notable

notable

4. Color < 15 15-25 26-40 >40 > 40

5. Turbidity NTU < 0.5 0.5-1.0 1.1-3.0 > 3.0 > 3.0

6. Transparency Secci 35 m > 7 7.0-4.0 3.9-2.0 < 2.0 < 2.0

35 Given values refer only on lakes and reservoirs

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Table II: Upper values / maximum permited values or concentrations / of Indicators of Acidity:

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

B Indicators of Acidity:

1. pH value 6,5-8,5 6,5-6,3 6,3-6,0 6,0-5,3 < 5,3

2. Alcality mg/l CaCO3 > 200 200-100 100-20 20-10 < 10

Table III: Upper values / maximum permited values or concentrations / of Oxygen Regime Indicators:

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

C. Oxygen Regime Indicators :

1. Dissolved oxygen mg/l O2 > 8,00 7,99 – 6,00 5,99 – 4,00 3,99 – 2,00 < 3,00

2. Oxygen saturation

36 epilimnion % O2 90 - 105 75 – 90 50 – 75 30 – 50 < 30

105 - 115 115 - 125 125 – 150 > 150

2 hipolimnion % O2 75 - 90 50 - 75 30 - 50 30 - 10 < 10

Total % O2 75 - 90 50 – 75 50 – 30 30 – 10 < 10

105 - 115 115 - 125 125 – 150 > 150

3. Biochemical oxygen demand for

o 5 days at 20 C / BOD5 / mg/l O2 < 2,00 2,01 – 4,00 4,01 – 7,00 7,01 – 15,0 > 15,0

4. Chemical oxygen demand – per-

< 2,50 2,51 – 5,00 5,01 – 10,0 10,0 – 20,0 > 20,0

36 Given values refer only on lakes and reservoirs

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manganate mg/l O2

5. Total organic carbon mg/l C < 2,50 2,51 – 4,20 4.21 – 6.70 6.71-10.0 > 10,0

Table IV: Upper values / maximum permited values or concentrations / of Mineralization Indicators :

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

D. Mineralization Indicators :

1. Suspended matter mg/l < 10 10 - 30 30 - 60 60 - 100 > 100

2. Total dry residue after filtration

/ total dissolved solids –TDS / mg/l:

Surface water 350 500 1000 1500 > 1500

Groundwater – karstic 350 500 1000 1500 > 1500

Groundwater – not karstic 800 1000 1500 1500 > 1500

Table V: Upper values / maximum permited values or concentrations / of Eutrofication Indicators :

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

E. Eutrofication Indicators :

1. Total phosphorus P mg/l <10 10 – 25 25 – 50 50 – 125 > 125

/ < 15 / 37 / 15 – 40 / / 40 – 70 / / 75 – 190 / > 190 / /

2. Total nitrogen N g/l < 200 200 - 325 326 - 450 > 450 > 450

/ < 200 / / 200–325 / 326-450 / / > 450 / / > 450 / /

3. chlorophyll “a“ g/l < 2,0 2,01–3.79 3.79–7.50 7.51-10.0 > 10.0

/ < 2,0 / / 2.01- /3.79-7.50/ / 7.51- / > 10.0 / 3.79/ 10.0/

37 Given values on brackets refer only on lakes and reservoirs

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4.Primary production 38 gC/m2/a < 25 26-50 51-90 > 90 > 90

5. Saprobic Oligo- Meso Meso -Meso Polisa- saprobic probic saprobic saprobic saprobic-   polisabrobi c

6. Saprobic Index – Puntel Buck < 1,50 1.50-2.50 2.51-3.50 3.51-4.50 > 4.51

5. Level of biological productivity Meso- Moderate Eutro- Hyper- OLIGO- eutrophic trophic phic trophic trophic

Table VI: Upper values / maximum permited values or concentrations / of Microbiological Pollution

Indicators :

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

F. Eutrofication Indicators :

1.Most probable number of termo- tolerant coliform bacteria No/100 ml 5 5 – 50 50 – 500 > 500 > 500

Table VII: Upper values / maximum permited values or concentrations / of Radiological Indicators :

Indicators: Upper values and concentrations per class

Class I Class II Class III Class IV Class V

G. Radiological Indicators :

1. Level of radioactivity Total activity of heavy radioactive waste materials which can be released into the surface water - water course during one year, shall be calculated by a following formula:

F/O ( Ai/MDKi )

38 Given values refer only on lakes and reservoirs a/ Mean value of investigation in summer period

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where:

Ai - total activity of i-th nucleid releised into water course during one year in Bq.

MDKi – maximum allowed concentration of i-th radio nucleid in drinking water for ion radiation Bq/m3

O – average yearly discharge of the river in m3/s

F – safety factor and reserve, a number depending on radio- ecological and hydrodynamical conditions of the river, of the river water use, the number and position of the inflow of radfioation within the catchment and other information, calculated in a way to provide protection of ionic radiation.

Table VIII:Upper values / maximum permited values or concentrations / of Harmful and Dangerous

Matters :

Nu HARMFUL AND DANGEROUS MATTER Unit Upper values and concentrations - NAME - m Class I-II Class III-IV Class IV

I. Metals and its Compounds

01. Aluminium µg/l Al 1500 1500 > 1500 02. Antimony µg/l Sb 30 50 > 50 03. Arsenic µg/l As 30 50 > 50 04. Copper µg/l Cu 10 50 > 50 05. Barium g/l Ba 1000 4000 > 4000 06. Beryllium g/l Be 0.2 1 > 1 07. Bismuth g/l Bi 50 50 > 50 08. Zink g/l Zn 100 200 > 200 09. Cadmium g/l Cd 0.1 10 > 10 10. Cobalt g/l Co 100 2000 > 2000 11. Selenium - inorganic g/l Sn 100 500 > 500 12. Chromium – total g/l Cr 50 100 > 100 Chromium – six-valent g/l Cr6+ 10 50 > 50 13. Manganese g/l Mn 50 1000 > 1000 14. Molybdenum g/l Mo 500 500 > 500 15. Nickel g/l Ni 50 100 > 100 16. Lead g/l Pb 10 30 > 30 17. Palladium g/l Pd 2 20 > 20 18. Silver g/l Ag 2 20 > 20 19. Thallium g/l Ta 3 30 > 30 20. Titanium g/l Ti 100 100 > 100 21. Vanadium g/l V 100 200 > 200 22. Iron g/l Fe 300 1000 > 1000 23. Mercury – total g/l Hg 0.2 1 >1 Total organic-Mercury compounds. g/l Hg 0.02 0.1 >0.1

II. Other Inorganic Parameters:

24. Ammonia g/l NH3 20 500 > 500

g/l NH4 1000 10000 >10000

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25. Asbestos g/l May not be present

26. Boron g/l B 200 750 > 750 27. Cyanides g/l CN- 1 100 > 100 28. Fluoride g/l F- 300 1500 > 1500 29. Phosphorus - elementary g/l P 0.01 0.1 > 0.1

30. Chlorine g/l Cl2 2 10 > 10 31. Nitrate g/l N 10000 15000 > 15000 32. Nitrite g/l N 10 500 > 500 33. Selenium g/l Se 10 10 > 10 34. Sulfides –total g/l S-2 2 50 > 50

III. Phenols

35. Phenol g/l 1 50 > 50 36. Cresol / o-, m-, p- / g/l 2 20 > 20 37. Nonylphenol g/l 1 10 > 10 38. 2-chlorophenol g/l 0.1 10 > 10 39. 2, 4-dichlorophenol g/l 0.3 5 > 5 40. 2, 4, 5-trichlorophenol g/l 1 10 > 10 41. Pentachlorophenol g/l 1 10 > 10 42. o-nitrophenol g/l 1 50 > 50 43. m-nitrophenol g/l 10 50 > 50 44. p-nitrophenol g/l 10 50 > 50 45. 2, 4-dinitrophenol g/l 30 50 > 50 46. Picric acid g/l 10 50 > 50 47. 4, 6-dinitro-o-cresol g/l 10 50 > 50 48. Aminophenol / o-, m-, p- / g/l 10 50 > 50

IV. Hydrocarbons:

49. Oil g/l 10 50 / 100 / > 100 39 50. Benzene g/l 1,5 10 / 50 / > 50 51. Toluene g/l 50 100 / 500 / > 500 52. Xylene / o-, m-, p- / g/l 50 100 / 500 / > 500 53. Ethylbenzene g/l 50 100 / 500 / > 500 54. Styrene g/l 20 100 / 500 / > 500 55. Mesitylene g/l 5 100 / 500 / > 500 56. Diisopropyl benzene g/l 50 100 / 500 / > 500 57. Naphthalene , methyl naphthalene g/l 1 10 / 100 / > 100 58. Fluorene g/l 5 50 > 50 59. Phenanthrene g/l 5 50 > 50 60. Anthracene g/l 5 50 > 50 61. Acenaphthene g/l 5 50 > 50 62. Fluoranthene g/l 5 50 > 50 63. Polynuclear aromatic hydrocarbons g/l 0.01 0.04 > 0.04 /higher homologous/-cancerogenous 64. Ethylene g/l 50 100 / 500 / > 500 65. Propilene g/l 50 100 / 500 / > 500 66. Isobutylene g/l 50 100 / 500 / > 500 67. 1-butene g/l 20 100 / 500 / > 500

39 Values given in brackets refer to water Class IV

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68. Isoprene g/l 5 100 / 500 / > 500 69. Cyclohexane g/l 20 100 / 500 / > 500 70. Cyclohexene g/l 20 100 / 500 / > 500 71. Biphenyl propane g/l 10 100 / 500 / > 500

V. Halogenated Hydrocarbons :

72. Methylchloride g/l 2 20 > 20 73. Methylbromide g/l 2 20 > 20 74. Dichloromethane g/l 2 20 > 20 75. Bromodichlormethane g/l 2 20 > 20 76. Bromoform g/l 2 20 > 20 77. Chloroform g/l 2 20 > 20 78. Tetrachlorcarbon g/l 2 20 > 20 79. 1,2-dichloroethane g/l 7 100 > 100 80. 1,1.2-trichloroethane g/l 3 50 > 50 81. 1,1,1-trichloroethane g/l 25 100 > 100 82. 1,1,2,2-tetrachloroethane g/l 2 15 > 15 83. Hexachloroethane g/l 6 10 > 10 84. Vinyl chloride g/l 5 50 > 50 85. Dichloroethylene g/l 1,5 25 > 25 86. Trichloroethylene g/l 20 75 > 75 87. Tetrachloroethylene g/l 2 4 >4 88. Monochlorobenzene g/l 20 100 > 100 89. Dichlorobenzene g/l 2 20 > 20 90. Trichlorobenzene g/l 10 20 > 20 91. Pentachlorobenzene g/l 0.5 5 > 5 92. Hexachlorobenzene g/l 1 1 > 1 93. Trichloronaphthalene g/l 4 4 > 4 94. Tetrachloronaphthalene g/l 1,5 1,5 > 1,5 95. Pentachloronaphthalene g/l 0,4 0,4 > 0,4 96. Hexachloronaphthalene g/l 0,15 0,15 > 0,15 97. Dekachloronaphthalene g/l 0,1 0,1 > 0,1 98. Dichloropropane g/l 50 200 > 200 99. Dichloropropene g/l 1 20 > 20 100. 1.3-dichlorobutane g/l 20 50 > 50 101. Dichlorocyclohexane g/l 20 50 > 50 102. Tetrachloropropane g/l 10 50 > 50 103. Tetrachloropenthane g/l 5 50 > 50 104. Tetrachloroheptanee g/l 3 30 > 30 105. Tetrachlorononane g/l 3 30 > 30 106. Tetrachlorodekane g/l 7 50 > 50 107. Pentachloroheptane g/l 20 100 > 100 108. Hexsachlorobutadiene g/l 1 10 > 10 109. Heksachlorociklobutadiene g/l 1 10 > 10 110. Heksachlorobutane g/l 10 100 > 100 111. 2, 3, 7, 8-tetrachlorodibenzo-p- dioksin / TKDD / g/l 4,5 10-7 4,5 10-7 4,5 10-7

VI. Nitrated Hydrocarbons :

112. Nitrobenzene g/l 20 50 > 50 113. Dinitrobenzene g/l 10 50 > 50 114. 2, 4-dinitrochlorobenzene g/l 10 50 > 50 115. Nitrotoluen / o-, m-, p- / g/l 10 50 > 50 116. Nitrochlorobenzene g/l 20 50 > 50

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117. Dinitrotoluene g/l 1 10 > 10 118. 2, 4, 6-trinitrotoluene g/l 20 50 > 50 119. Dinitronaphthalene g/l 1 10 > 10 120. Nitromethane g/l 5 50 > 50 121. Nitropropane g/l 5 50 > 50 122. Nitroethane g/l 5 50 > 50 123. Nitrobutane g/l 5 50 > 50 124. Nitroform g/l 10 50 > 50 125. Tetranitrometane g/l 20 50 > 50 126. Nitrocyclohexsane g/l 20 50 > 50 127. N-nitrosodimethylamine g/l 0.03 0.034 0.03 128. N-nitrosodiethylamine g/l 0.01 0.01 0.01 129. N-nitrosodibutilamine g/l 0.015 0.015 0.015 130. N-nitrosopirolidine g/l 0.1 0.1 0.1 131. Benzidine g/l 2,0 10-3 1 10-2 1 10-2 132. 3,3-dihlorbenzidine g/l 2,0 10-2 2,0 10-2 2,0 10-2

VII. Pesticides

133. Aldrin g/l 0,003 0,2 > 0,2 134. Dieldrin and metabolites g/l 0,003 0,003 0,003 135. DDT g/l 0.001 0.001 0.001 136. Endrin g/l 0,004 0.04 > 0.04 137. Lindane g/l 0,01 0,1 > 0,1 138. Methoxychlor-DDT g/l 0,03 0,3 > 0,3 139. Polihlorinated biphenyl PCBs g/l 0.001 0.01 0.01 140. Toxsaphene / kamphechlor / g/l 0.005 0.05 0.05 141. Heptachlor g/l 0.001 0.001 0.001 142. Chlordane g/l 0,01 0,1 0,1 143. Common kriterium for otherOrganic chlornated pesticides g/l 0,01 0,1 0,1 144. Karbophos / Malathion / g/l 0,1 1 1 145. Merkaptophos / Demeton / g/l 0,1 1 1 146. Tiophos / Parathion / g/l 0,04 0,4 0,4 147. Common kriterium for otherOrganic - Phosphorus and carbamic pesticides g/l 0,1 1 1 VIII. Other Organic Compounds : 148 Acetone g/l 100 2000 2000 . 149 Acetone cyanohydrin g/l 1 1 1 . 150 Acrolein g/l 2 10 10 . 151 Acrylonitril g/l 0,1 200 200 . 152 Anion detergents g/l 100 500 > 500 . 153 Kation detergents g/l 50 100 > 100 . 154 Non-ionic detergents g/l 100 500 > 500 . 155 Surface active materials g/l 1000 5000 > 5000 . /300040/

40 the value in the brackets refers to class II

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156 Amini / C7 – C9 / g/l 100 100 > 100 .

Amini / C10 – C16 / g/l 40 500 500

Amini / C17 – C20 / g/l 30 50 50

157 Benzoic acid BOD5 not more than allowed concen- . mg/l tration for certain water class 158 Buten-1 g/l 100 10000 10000 . 159 Butanol g/l 1000 5000 5000 . 160 Butyl acrilat g/l 15 1000 1000 .

161 Butyric acid / BOD5 / mg/l 5 10 10 . 162 Butyl xantate g/l 1 - - . 163 n-Butylmercaptan g/l 6 - - . 164 Hydrogen sulphide g/l 3 3 3 . 165 Dimethyl sulphide g/l 3 300 300 . 166 Diisopropyl amine g/l 500 50 500 . 167 Cyclohexanol g/l 500 500 500 . 168 Cyclohexanone g/l 20 20 20 . 169 Cyclohexanonoksim g/l 1000 1000 1000 . 170 Diphenylhidrazine g/l 0,4 20 20 . 171 Ethylacrilat g/l 5 50 > 50 . 172 Ethylamine g/l 300 500 500 . 173 Ehylenglicol g/l 1000 1000 1000 . 174 Formaldehyde g/l 300 500 500 . 175 Phtalic ester g/l 3 30 30 . 176 Heptanol g/l 5 5 5 . 177 Isophorone g/l 6 60 60 . 178 Isobutanol g/l 1000 5000 5000 . 179 Ethyl-merkuric chlorid g/l 0,1 0,1 0,1 . 180 Kaprolactam g/l 500 1000 1000 . 181 Potassiumdiethylditio-phosphate g/l 200 2000 2000 . 182 Potassiumisopropyl-ditio-phosphate g/l 20 1000 1000 . 183 Maleic anhydride g/l 1000 1000 1000

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. 184 Mercaptoethyldiethyl-amin - g/l 100 1000 1000 . 185 Methyldithiocarbamat Na-sol g/l 20 500 500 . 186 Methanol g/l 100 500 500 . 187 Methylacrilat g/l 20 200 200 . 188 Methylbenzoat g/l 1 100 100 . 189 Maslena acid g/l 500 1000 1000 . 190 Milk acid g/l 500 2000 2000 . 191 Mravja acid g/l 1000 4000 > 4000 . 192 Nonil alcohol g/l 10 10 > 10 . 193 Oktil alcohol g/l 50 500 500 .

194 Sintetic masni acid C5-C20 g/l 1000 5000 5000 . 195 Tannin g/l 500 10000 > 10000 . 196 Terpentin g/l 200 5000 > 5000 . 197 Tetraethylselenium g/l 0,2 20 20 . 198 Tetraethyllead g/l - 0,1 0,1 . 199 Tributilphosphate g/l 10 100 100 . 200 Carbondisulfide g/l 3 3 > 3 .

201 Dimethylformamide BOD5 not more than allowed concen- . mg/l tration for certain water class

202 Methyllethyl ceton BOD5 not more than allowed concen- . mg/l tration for certain water class

203 Propilen glicol BOD5 not more than allowed concen- . mg/l tration for certain water class

204 Triethylen glicol BOD5 not more than allowed concen- . mg/l tration for certain water class

8.1.1.1 Article 5

The values of indicators from Article 4 of this Regulation shall be applied upon:

1. For water courses without regulated flow: for all discharges equal or larger than the monthlly loe flow with 95 % probability; 2. For water courses with regulated flow: for all discharges larger than the guaranteed low flow; 3. groundwateri: for all discharges and water levels;

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4. lakes: for unfavourable cases of mixing of waters / during periods of ice and during critical summer months /. Article 6

As exemptions from Arcicle 4 of this Regulation, certai indicators shall not be used for classification of:

1. water courses -indicators under number 16 / level of biological productivity /; 2. groundwater flows in karst - indicators under number 16 / level of biological productivity /, and for other types of groundwater indicators under number 6 / dissolves oxygen /, under number 15 / level of saprobity/ and indicators under number 16 / level of biological productivity /; 3. natural lakes - indicators under number 6 / dissolves oxygen /, under number 15 / level of saprobity / and for second class of natural lakes the indicators under number 2 / visible color /. In the classification of carstic springs, if the turbidity ids from natural cause, the indicators from Article 4 of theis

Regulation under number 10 / suspended matter/ may be exceeded, but the turbidity should not be present in more than 30 days in one year.

8.1.1.2 Article 7

In the calculation of the toxicity of larger number of dangerous and harmful matter the allowed concentrations has to

Ca La +Cb Lb +...... +Cn Ln ≤1 comply with the following formula:

Where: Ca, Cb, ….. Cn are the measured concentrations of harmful and dangerous substances in the water, , La, Lb, ….. Ln are the maximum allowed concentrations / MAC / , for each of those substances individually.

Article 8

Concentrations of harmful and dangerous substances are determined:

for concentrated use of water – at the boundary of the first zone of sanitary protection, or nat the place of water intake; for other concentrated use of water, in the zone of 95 % mixing.

Article 9

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With the day of coming into force of this Regulation the use of "Regulation for the maximum allowed concentrations of radio-nucleids and dangerous substances in the international water courses, inter-republical waters and coast sea waters of Yugoslavia" / Official gazette of SFRJ number 8/78 /.

Article 10

This Regulation shall come into force eight days from the day it it published in the "Official Gazette of Republic of Macedonia".

Number 23-1665/1 PRESIDENT

23.03.1999 OF THE GOVERNMENT OF

Skopje formerYugoslav Republic OF MACEDONIA

Ljubcho Georgievski, s.r.

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Annex 2: Insights on ecosystems features This section completes Chapter 6 on ‘Main ecosystems features’ of this report. It aims to provide a more detailed description of the ecosystems existing in the former Yugoslav Republic of Macedonia, providing additional information on their size and characteristics, and the species present in the area. Forest ecosystems The Macedonian forest can be sub divided into three areas: • The “Oak region”: distributed within the lowlands and highlands up to 1,100 m and covers 73% of the total forested area. Climate-zonal, mostly thermophilic Oak and Chestnut forests, as well as orographic-edaphic and hydrologically conditioned forest and shrub communities (including Willow, White poplar, Plane tree, Common ash etc.), are located in these areas. • The “Beech region” covers the mountainous areas between 1,100-1,700 m (about 22% of the total forested area). It may be differentiated into a sub-mountain and a mountain belt. The sub- mountain Beech region is present between 1,100-1,300 m where refugial types of Beech forests as well as Pine forest communities (Black pine) can be found. The mountain belt spreads between 1,300 and 1,700 m and is formed by various types of Beech, Beech-Fir forests and, in the secondary habitats, forests of White pine, Aspen and Birch are present. • The “pre-mountain (subalpine) region” is located between 1,700 m and approximately 2,100 m. In these areas, the forests are almost destroyed. Forests of Spruce (Picea abies), Mountain pine (Pinus mugo) and Molika (Pinus peuce), however, as well as heath of Bruckenthalia spiculifolia, Vaccinium myrtillus etc., can be found.

Dry land/grassland ecosystem • Among the best studied areas are the communities of the highland pastures which develop on silicate soils, steppe- like vegetation and halophytes. Slightly less studied are those communities developing on limestone, serpentine, antimony and arsenic soils. Representative fauna include: Apodemus agrarius, A. flavicollis, Burhinus oedicnemus, Coturnix coturnix, Eryx jaculus, Microtus guentheri, M. rossiaemeridionalis, Myotis emarginatus, M. mystacinus, Nannospalax leucodon, Otis tarda, Perdix perdix, Podarcis taurica, Spermophilus citellus citellus, Talpa europaea and Tetrax tetrax. • Restricted distribution is characteristic for the halophytic communities (on salty soils) which develop on a small area in Ovche Pole Plain and in the steppe- like area between Negotino, Shtip and Veles. They are under intense anthropogenic influences due to cultivation. • The plant communities developing on soils containing arsenic and antimony (including Viola allchariensis and V. arsenica) at Alshar near Kavadartsi are also restricted to very small areas. They are in potential danger of destruction because they are present on only a small area, where mining and other activities were performed in the past and are likely to be continued in the future. • The communities developing on limestone and dolomite are not completely studied. At many locations in the former Yugoslav Republic of Macedonia where these communities develop, marble is extracted (Cer, Pletvar-Kozyak and Sivets), which has a negative effect on their biological viability, both survival and maintenance.

Mountain ecosystems They are found within a large portion of the former Yugoslav Republic of Macedonia, especially on mountains over 2,000 m in elevation – Belasitsa, Bistra, Deshat, Duditsa, Galichitsa, Yablanitsa, Yakupitsa, Korab, Kozhuf, Nidze, Osogovo, Pelister, Shar Planina, Stogovo etc. Mountain ecosystems in the former Yugoslav Republic of Macedonia include the following fauna/flora classes and taxa: • The communities in the mountain pastures located on silicate (class Caricetea curvulae) and carbonate soils (class Elyno-Seslerietea) are represented by approximately 15 associations.

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• The communities that develop on limestone and silicate rocks (class Asplenietea rupestris), limestone screes (class Drypetea spinosae), under snow banks (class Salicetea herbaceae), near mountain streams (tall grassy plants of the class Betulo-Adenostyletea), in high-mountain marshes (classes Montio-Cardaminetea and Scheuchzerio-Caricetea fuscae) etc. are also located here. • Typical faunal representatives of the mountain ecosystems are: Chionomys nivalis, Corvus corax, Dinaromys bogdanovi, Eremophila alpestris, Lacerta agilis, L. vivipara, Monticola saxatilis, M. solitarius, Phoenicurus phoenicurus, Prunella collaris, Pyrrhocorax graculus, P. pyrrhocorax, Rupicapra rupicapra, Spermophilus citellus karamani, Talpa stankovici, Vipera berus and V. ursinii.

Wetland ecosystems Additional information on the wetland ecosystems: • Lakes: - Ohrid Lake: is the largest lake in the former Yugoslav Republic of Macedonia and is situated in a tectonic valley in the far southwest of the country. It is a typical oligotrophic lake with outstanding transparency, low nutrient content and low production. Transboundary project: Bi-national cooperation on Lake Ohrid began in 1996, when the Memorandum of Understanding establishing the Lake Ohrid Management Board was signed by Albania and The former Yugoslav Republic of Macedonia. In 1998, the Lake Ohrid Conservation Project was initiated by the GEF/World Bank, providing a total of US $1.84 millions in funding to Albania and US $2.26 million in funding to the former Yugoslav Republic of Macedonia. The Project seeks to provide a transboundary, comprehensive approach to the management of the Lake Ohrid watershed, combining restoration, conservation and protection of the lake with sustainable use of its natural resources. The project had four major components. Component A, the institutional strengthening component, focused on increasing the capacity of public officials at all levels in the Lake Ohrid watershed for effective enforcement of each country's environmental laws, regulations, standards and policies. Component B, the monitoring component, focused on establishing a comprehensive bi-national monitoring program to inform the public and local officials about the condition of the lake and to provide the environmental information necessary for effective and rational planning and decision-making. Component C, the participatory watershed management component, aimed to mobilize groups within the watershed to create a strategic action plan. Component D, the public awareness and participation component, aimed to create public awareness and increase community participation to enable the effective and sustainable implementation of the Project. After finishing the GEF Project, the Bilateral Agreement on protection and sustainable development of Lake Ohrid watershed was signed between the Governments of the Republic of Albania and the former Yugoslav Republic of Macedonia in 2004. Implementation of the Agreement started in September 2005. - Prespa Lake: is the second largest natural lake, located at the border with Greece and Albania. Transboundary project: the ‘Prespa Park Project’ aims to increase the institutional capacities of national, regional and local authorities to effectively manage the conservation of the transboundary Prespa Park. It promotes an integrated ecosystem management of the Trans- boundary Prespa Park and ensures that ecological, economic and social benefits from the sustainable use of natural resources are fully utilized. Within this context, detailed studies are being conducted on the regional ecological system and the socio-economic situations of local populations. Consultative mechanisms, such as the Prespa Park Coordination Committee facilitate the cooperation across borders and are vital in making this trans-boundary project a success. Upon completion of the project it will have made a considerable contribution to the preservation of the ecological system of the Prespa Park region. More specifically it will have: strengthened local capacities to conserve, sustainable use and effectively manage local ecosystems; fostered trans-boundary, inter-sectoral and participatory approaches to land-use planning, rural development, water management, and natural resource utilization; raised

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awareness about environmental protection and; contributed to developing cooperative relations between Greece, Albania and the former Yugoslav Republic of Macedonia. - Doyran Lake: is the smallest tectonic lake in the former Yugoslav Republic of Macedonia. It is located in the south-eastern area of the country, at the border with Greece, and is a typical eutrophic lake of the Aegean lake group. From The former Yugoslav Republic of Macedonia side it is a protected area, under Category III – Natural monument. It is also included in the National Emerald Network. National and transboundary project: The Doyran Lake Recovery project for releasing an additional quantity of water into Doyran Lake taken from the alluvial aquifer Gyavato near Bogdanci started in 2002, financed by the Budget of the former Yugoslav Republic of Macedonia. The project "Assessment of the degree of expression of the functions and values of the Transboundary Lake Doyran" started in November 2003, implemented by the NGO Society for the investigation and conservation of biodiversity and sustainable development of natural ecosystems - BIOECO from the former Yugoslav Republic of Macedonia and the private not-for-profit organization Greek Biotope from Greece, financed by the Hellenic Ministry of Foreign Affairs. The overall goal of the project was to strengthen the bilateral cooperation for the restoration of Lake Doyran, for the benefit of the environment and the welfare of both local communities through the following actions: gathering of environmental and socioeconomic information for the lake and its watershed, estimation of the lake's water balance with the use of hydrological modelling system, assessment of the lake's functions, organization of bilateral workshop on the sustainable management of water resources, production of interpretation plan for the border area of the lake etc. • Swamps and marshes: Katlanovo Marsh, Prespa Marsh, Ohrid Marsh, Struga Marsh, Pelagonia Marsh, marsh near Negortsi Spa, marsh near the village of Bansko, Monospitovo Marsh, marsh in Upper Polog Today only fragments of these ecosystems remain. • Rivers: the rich network of rivers is divided into three watersheds: the Vardar, Crni Drim and Strumitsa. The watershed of the Vardar river is the largest. Other river ecosystems: Bregalnitsa, Crna, Lepenets, Pchinya, Zletovitsa etc.. Water reservoirs: Kalimanci and Tikvesh Lakes. The reservoirs which provide drinking or industrial water: Mavrovitsa, Strezhevo, Turiya.

Agricultural ecosystem Most of the crops in the former Yugoslav Republic of Macedonia still have local wild relatives for ex. Avena spp., Cannabis sativa, Hordeum spp., Papaver spp., Triticum spp. etc. In fruit production wild relatives are used most often for food and as rootstocks. Fodder crops, mainly distributed within ploughed fields and meadows (natural or sown) were created by selection and cultivation of wild species. There are indigenous breeds and varieties of domesticated animals in the former Yugoslav Republic of Macedonia which are fully accommodated to local breeding conditions. During the past 50 years, new more productive breeds have been imported. Nevertheless, the original imported breeds are still present in the former Yugoslav Republic of Macedonia, crosses between indigenous breeds/strains and imported breeds are known in several species: Busha (local breed of cattle), Pramenka (sheep), Domestic (Balkan) goat, local primitive pig and sheep dog Sharplaninets.

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Annex 3: Insights on biological diversity This section complete the part on ‘Species status: total number, endemic and threatened species and species density’ presented in chapter 6. of this report. It aims to provide a more detailed description of the species observed in the former Yugoslav Republic of Macedonia territory, providing additional information on threatened and endemic taxa.

Micro-organisms Bacteria, from a taxonomic aspect, are poorly studied. The main studies deal with the quantitative structure of individual physiological groups of bacteria. The available data show that there are 100 determined taxa (this figure also includes pathogenic bacteria). Previous microbiological studies dealt mainly with industrial and agricultural microbiology. They included some data on the presence of bacteria in thermal springs, as well as faecal indicators. There are also some data on the bacteria which cause diseases in agricultural plants. Due to an insufficient taxonomic study, it is not possible to make an assessment on the degree of threat to certain species or taxa of bacteria. According to the studies to date, endemic species of bacteria have not been discovered.

Fungi Fungi represent a very heterogeneous group of organisms; however, studies to date have dealt mainly with Ascomycota and Basidiomycota. The other orders of Fungi are poorly studied. There are approximately 1,250 recorded species of Fungi. Most belong to the orders Ascomycota (130), Basidiomycota (1050), Myxomycota (10), Oomycota (20) and Zygomycota (35). Sites containing the highest mycodiversity, according to current studies, are: Pelister Mountain (location of the Mountain Lodge “Kopanki” and watershed of Braychinska River), Shar Planina Mountain (watershed of Tetovska River), near Mavrovo Lake, Kozhuf-Momina Chuka etc. Lichens (lichenoid Fungi) (Lichenes) number: approximately 340 species. The Preliminary Red List of Fungi in the former Yugoslav Republic of Macedonia has been prepared and includes 67 threatened species in Basidiomycota. There are no known endemic species of Fungi in the former Yugoslav Republic of Macedonia.

Flora (Diversity of lower and higher plant groups) With regard to the lower plant groups, Algae represent an especially diverse group of organisms. The Green, Silicate and Blue-green algae are dominant, with other groups found in smaller numbers. To date, 1,580 species of Algae have been identified, of which Silicate (40.1%) and Green (35.3%) algae form a majority. The most important centres of Algal diversity are Ohrid and Doyran Lakes, while on Prespa Lake there are no current systematic studies. In addition to the relict lakes, mountain aquatic ecosystems appear to be equally important centres of Algal diversity. Among the lower plant groups, Algae are represented by the greatest endemism, with 135 endemic taxa, or 8.5% of the total Algal flora. Most have been recorded in Ohrid and Prespa Lakes, with lesser numbers in Doyran Lake, on Pelister Mountain and the Babuna River. The flora of higher plant groups is quite rich, with a mosaic of diverse floral elements (Tertiary relicts, Mediterranean, Greek-Anatolian, Ilyric, Caucasian, Middle-European, Eurasian, arctic-alpine and cosmopolitan) and large number of endemic species (Macedonian, south Balkan, Balkan etc.). It is represented by 210 families, 920 genera and approximately 3,700 species. The most numerous group is flowering (Angiosperm) plants, with about 3,200 species, followed by mosses (350) and ferns (42). - Mosses are represented by 67 families, 167 genera and 349 species. The class Hepaticae includes 25 families, 36 genera and 52 species; the class Anthocerotae includes one family, one genus and one species, while the class Musci includes 41 families, 130 genera and 296 species. In the class Hepaticae, the most numerous family is Lophoziaceae with eight species, whereas the most numerous families in the class Musci are Bryaceae (23 species), Amblystegiaceae (23)

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and Brachytheciaceae (23). The most polymorphic genera are Brachythecium (23species), Bryum (14) and Orthotrichum (11). Two species are Macedonian endemics (Melichoferia paradoxa and Orthotrichum insidiosum). - Peat mosses are represented by 6 species which mainly inhabit moist areas and bogs in mountain and high mountain areas. They are only rarely found in lowlands (most often on silicate soils). The species Diphasium alpinum, Huperzia sellago, Isoetes phrygia and Lycopodium clavatum have very restricted distributions. - Horsetails are represented by 7 species which may be found in very moist places, from lowlands to high mountain areas (by rivers, mountain streams, valleys, gorges, marshes and moist meadows). The most frequent species are Equisetum arvense and E. palustre, with the rarest being the species E. fluviatile and E. sylvaticum. - Ferns are represented with 42 species of ferns in 15 families in the former Yugoslav Republic of Macedonia. The most polymorphic genera are Asplenium (11 species) and Dryopteris (6). The following species are characterised by a restricted distribution: Adiantum capillus-veneris, Blechnum spicant, Crytogramma crispa, Ophioglossum vulgatum, Osmunda regalis, Phyllitis scolopendrium, Thelipteris palustris, as well as the endemic species Asplenium macedonicum (in the vicinity of Prilep). This group also includes the two species of aquatic ferns (Marsilea quadrifolia and Salvinia natans). - Gymnosperms. These are represented by 4 families, 6 genera and 15 indigenous species (the most polymorphic are the genera Juniperus and Pinus, each with five species). Some species have been introduced (exotic), mainly from the genera Abies, Juniperus, Picea, Pinus, Sequoia, Taxodium etc. - Angiosperms. Angiosperms are represented by 120 families, 720 genera and approximately 3,200 species (5,000 taxa). The most polymorphic families of the class Dicotyledonae are the families Caryophyllaceae (345 species), Compositae (c.470), Cruciferae (264), Labiatae (c. 260), and Leguminosae (457), whereas of the class Monocotyledonae, the families Gramineae (c. 280) and Liliaceae (c.130) are most polymorphic.

The National Red List of threatened plant species has not been prepared yet, although there is sufficient data to do so. The threatened species shown in chapter 6 (‘Species status’) are included according international criteria from many international documents - International Red Lists, conventions and directives (IUCN Global Red List, Bern Convention, CORINE species, Habitats Directive etc.), species of national importance (Local endemic and relict species) endangered species and a certain number of extinct species. The IUCN Global Red List 1997 (Walter and Gillet, 1998) contains 70 taxa from the former Yugoslav Republic of Macedonia (of which 18 are local endemics).

Appendix I of the Bern Convention includes 12 species (11 vascular species and one species of moss) with portions of their ranges located within the former Yugoslav Republic of Macedonia. Of the species listed in EU Habitat Directive Annex II, two species of vascular plants and one species of moss are present within the former Yugoslav Republic of Macedonia. Three species are also present from Annex IV.

There are many endemics in the flora of higher plant groups, with most recorded among the Angiosperms (114). The most important centres of endemism are on the high mountains (Galichitsa and Shar Planina), in river gorges (Babuna, Treska and Vardar) and in portions of the lowland belt (Mariovo, vicinity of Prilep).

Fauna A general characteristic of the fauna of the former Yugoslav Republic of Macedonia is its high degree of taxonomic diversity, represented by 9339 species and 228 subspecies, for a total of 9567 taxa.

Phylum Chordata (Chordates) – The fauna of the former Yugoslav Republic of Macedonia is represented by the subphylum Vertebrata (Vertebrates), separated into 4 classes and 1 superclass.

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- The superclass Pisces (fishes) is represented by 58 indigenous species, with centres of biodiversity in the three natural lakes, as well as in the Vardar River and its watershed. - The class Amphibia (Amphibians) is represented by 15 species and 2 subspecies. The most important centres of biodiversity for Amphibians are the marsh ecosystems and the temporal aquatic biotopes. - The class Reptilia (Reptiles) is represented by 32 species and eight subspecies. With regard to Reptiles, the most important biodiversity centres for the Mediterranean and Aral-Caspian faunal elements are the lowland areas of the lower course of the Vardar River and Doyran region; For the central-European, boreal and oreo-tundral herpetofauna – the mountain massifs of Galichitsa, Pelister, Shar Planina and Yakupitsa are important centres. - The class Aves (Birds) is also well studied, with 338 recorded taxa (319 species and 19 subspecies). Of the total number of recorded taxa, 213 species breed locally, while the others appear during the winter or in periods of migration. The most important centres of biodiversity for ornithofauna are the three natural lakes (for waterbirds) and the gorges of the Babuna, Topolka, Treska and Vardar Rivers (for birds of prey). The mountain massifs in western former Yugoslav Republic of Macedonia are the most important centres of biodiversity for the boreal and arcto-alpine complex of ornithofaunal elements. - The class Mammalia (Mammals) is represented by 82 species and one subspecies, belonging to six orders, 18 families and 51 genera. Eight species have been introduced by humans, either deliberately or accidentally. Three species are extinct in The former Yugoslav Republic of Macedonia, of which two have been reintroduced into the wild. The largest centres of biodiversity for the Mediterranean elements of this class are the lowland areas in south-eastern The former Yugoslav Republic of Macedonia and, for the central-European faunal and boreal elements, the mountain massifs of western The former Yugoslav Republic of Macedonia.

Endemism among each invertebrate and vertebrate group With a total of 674 endemic taxa (602 species and 72 subspecies), the former Yugoslav Republic of Macedonia represents one of the most important centres of endemism in Europe, in spite of its small land area. The endemic taxa are distributed in the different faunal groups: - Two endemic species of free living Protozoans are found in Ohrid Lake. Of the parasitic Protozoans (subphylum Ciliophora), there are 30 endemic species which, together with their hosts (Oligochaeta), represent relict species. The degree of endemism in Ciliophora is as high as 88%. Comparative analyses between parasitic Ciliates from Ohrid Lake and from Baikal Lake point to great similarity. - Out of 10 taxa (9 species and 1 subspecies) of sponges (Porifera), 5 species and 1 subspecies are endemic; the degree of endemism is 60%. The species Ochridospongia rotunda is the best known of the four endemic sponges found in Ohrid Lake, and it represents a relict genus and species, with its spherical shape closely resembling the endemic sponges of the Sea of Galilee and Baikal Lake. - With regard to the phylum Plathelminthes (flatworms), the highest degree of endemism is found in the class Turbelaria (order Tricladida – 25 and order Rhabdocoela – 10). There are only three endemic Nemathelminthes species (roundworms); all are Nematodes restricted to Ohrid Lake. - The phylum Mollusca (Molluscs) shows the greatest degree of endemism in the aquatic Gastropods, with a total of 76 endemic taxa consisting of 71 species and five subspecies (degree of endemism, 74.5%). In contrast, terrestrial snails, which are still insufficiently studied, have a limited number of endemic forms – 21. Of the 15 recorded bivalve taxa, four are endemic (three species and one subspecies), all of the genus Pisidium. - Segmented worms, the phylum Annelida, include 54 recorded endemic taxa, the dominant among them being the class Oligochaeta (Oligochaetes), with 39 endemics. It is followed by the class Hirudinea (leeches), with 11 endemics, and the taxonomically non-differentiated group of Branchiobdellidae, with four endemic taxa. - The most numerous animal phylum, Arthropoda, has 419 recorded endemic taxa (367 species and 52 subspecies). The subphylum Chelicerata (Chelicerates) has 71 endemic forms (65 species and six subspecies), subphylum Branchiata (Branchiate arthropods) – 137 endemics (113 species and 24

131 ARCADIS ECOLAS / IEEP / Metroeconomica / Enviro-L Annexes 06/11347 - fYRoM - Benefits of Compliance with environmental acquis - final report subspecies) and subphylum Tracheata (Tracheates) – the most endemic forms – 211 (189 species and 22 subspecies). The highest degree of endemism among the Chelicerates is seen in the orders Pseudoscorpiones (73%) and Opiliones (47.5%). Among Branchiata, the highest degree of endemism is shown by the subclass Malacostraca (orders Isopoda [85%] and Amphipoda [81.4%]), but is also seen in the subclass Ostracoda (26%). Within Tracheates (Tracheata), class Myriapoda (order Diplopoda) shows the highest degree of endemism (37%) and within class Insecta, the order Lepidoptera has the largest number of endemics (90). - In regard to Vertebrata, the class Pisces (fishes) has the highest degree of endemism (34.5%). Among the other classes, only four endemic mammals are known (Mammalia). Of the major centres of faunal endemism, the three relict lakes are especially noteworthy. The largest, Ohrid Lake, with 216 endemic taxa, has been described as the most important centre for endemism in The former Yugoslav Republic of Macedonia and nearby areas. No less important are Prespa and Doyran lakes which, due to their shallower depths, have fewer numbers of endemic and relict species. Of particular interest is the presence of 6 endemic taxa (4 species and 2 subspecies) common to both Ohrid and Prespa lakes, which confirms the common origin of these lakes from the former Pliocene Desaret Lake. The groundwater, springs and caves of The former Yugoslav Republic of Macedonia are second in importance as centres of endemism. They are characterised by the presence of thalassophreatic (i.e., from saline waters), limnophreatic (i.e., from fresh waters) and terrestrial relict fauna which date from the Upper Tertiary.

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Annex 4: Institutional, legal and economic framework

Insights on institutional and legal aspects

The driving force and executor of almost all of the activities where environmental protection is concerned in the former Yugoslav Republic of Macedonia is the Ministry of Environment and Physical Planning (MoEPP). It coordinates and executes environmental projects from which the biggest number is towards meeting the international requirements, especially the requirements of the EU. The projects are aiming towards approximation and implementation of the EU laws.

The Ministry of Environment and Physical Planning is also implementing the current environmental laws. For the purpose of the nature conservation, the Law on Nature Protection (Official Gazette in RM 67/2004) was adopted, which comprises partly the international and EU requirements in the former Yugoslav Republic of Macedonia. The National Law of Nature Protection (Official Gazette in RM 67/2004) accordingly with the article 34 regulates the creation of Red book and Red list which is comprised of endangered species. Nevertheless, neither the Red Book nor the Red List have been created yet in the former Yugoslav Republic of Macedonia.

Moreover there is an ongoing project for Developing National Strategy for Environmental Approximation under the CARDS 2005 project whose beneficiary is the MoEPP. This project is expected to give a clear overview of the legal and technical gaps in the environmental sector in the former Yugoslav Republic of Macedonia when compared with the EU laws. Also an economy evaluation will be done for the implementation of the EU legislation.

The forest resources in the former Yugoslav Republic of Macedonia are managed by the Ministry of Agriculture, Forestry and Water Economy, in coordination with the Public Enterprise “Macedonian Forests”. There are 30 regional forestry units dispersed throughout the country. The forests that are spreading on the territory of the national parks are managed by the National Park Authorities.

With regard to agriculture, the Ministry of Agriculture, Forestry and Water Economy have adopted the following strategic objectives as the basis for agricultural and rural development and the formulation of agricultural policy:

− to strengthen the ability of Macedonian agriculture to compete in the integrated regional markets of the European Union and South-eastern Europe through measures;

− to increase the efficiency of agricultural production, processing and marketing, and to build appropriate, effective public and private institutions;

− to improve farm incomes;

− to ensure that consumers have access to safe, healthy food;

− to optimize the use of scarce land, forest and water resources, in an environmentally sustainable manner, and

− to build viable rural communities through sustainable rural development. The Strategy for Agriculture and Rural Development is in phase of preparation.

Eco-tourism is taken into account in some national policies. The National Biodiversity Strategy and Action Plan (adopted 2004) include several activities related to eco-tourism:

- Strategic approach C - Sustainable use of biodiversity, action C.5 - promotion of traditional uses of biodiversity and eco-tourism, activity C.5.3 - Identify and promote locations that are good for eco-tourism;

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- Strategic approach F, action F.1 - Increasing public awareness, activity F.1.1.4 - Establish web- page about traditional uses of biodiversity for the encouragement of eco-tourism; - Strategic approach H - action H.2.2 - Incentive measures for development of eco-tourism, through promotion of the values of biodiversity to domestic and foreign tour operators (H.2.2.1) and introduce tax and customs incentives for economic and legal entities concerned with eco- tourism development. Furthermore, the Second Environmental Action Plan includes several measures and activities related to eco-tourism: - Preparation of pilot project: Basis for rural tourism development – village Brajcino, Prespa area / or village Maloviste, Bitola area; - Preparation of Guidelines for sustainable rural tourism (good practice) – relation to rural development and agricultural production; - Preparation of economic instruments and incentives for development of projects in targeted potential eco areas; - Public awareness campaign addressing eco-tourism and cultural heritage.

Insights on economic aspects

Agriculture and industry are the two most important sectors in the economy of the former Yugoslav Republic of Macedonia, with a significant growth of the service sector in the past few years. In 2004, the biggest share of added value goes to the production industry with 15%, and agriculture, forestry and fishery with 11.3% (with agriculture providing the highest contribution). The structure of the total agricultural land is the following: 44% arable agricultural land (560,000 ha); 55% pastures (704,000 ha) approximately, and less than 1% swamp land and fisheries (1,000 ha). The majority of the arable agricultural land is used for the production of wheat and field crops and gardens (82% or 461,000 ha); the rest is divided between orchards (3% or 15,000 ha), vineyards (5% or 26,000 ha), and meadows (10% or 58,000 ha).

Fishery is an important economic activity but only locally (Ohrid, Prespa and Doyran Lake). In certain sense the economic activity of fishery is also connected with fish farms. Tourism contributes to only 1.6% of the domestic product, attracting about 483,000 tourists41.

Forests are not key economic resource in the former Yugoslav Republic of Macedonia. In the official statistical methodology, forestry is combined with agriculture, making it possible to glean explicit information on its contribution to the GDP. Usage, by category, of timber harvested from state-owned forest has been economically inefficient for a long period of time. Fuel-wood is the predominant use, with a share of 75 % of the total volume of harvested timber. Wood intended for industrial processing constitutes less then 20%. The annual (in 2004) timber harvest was 597.097 m3 gross timber mass from public forests, of which 75,1 % is fuel-wood, 24,8 % industrial timber and 0,1 % other wood. Industrial timber is mainly absorbed by the domestic wood-processing industry, which capacity is about 150.000 m3. Inefficient economic utilisation is evidence by the fact that the highest and best usage of logs, for veneer, former Yugoslav Republic of Macedonia is only 0.3 %. The PE Macedonian Forests manages 7 sawmill companies (many private sawmills also exist throughout the former Yugoslav Republic of Macedonia). There is also a possibility for utilization of medicinal herbs, forest fruits, mushrooms, lichens, minerals etc. in forests and forest land. In the regional forestry unit Maleshevo in Berovo, a capacity for hydro-distillation of essential oils from wild plants has been installed, with app. annual capacity form 7.000 - 10.000 kg.

41 NEAP II - Sector Report: Tourism, April 2005

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Agriculture has traditionally been one of the most important sectors in the economy. The agriculture sector plays a key role in the successful implementation of structural reforms in the country, due to its social role in providing food and stable income for approximately 20% of the able-bodied population. Without reducing or losing its important role, the share of the agriculture sector in the overall GDP (nominal and real) has remained relatively stable, contrary to the experience of most economies in transition. The stable share of agriculture in the national GDP is due to the moderate pick up in the growth of the sector, but also to the big reduction of activities in the industrial sector and the overall drop in the GDP. Figure 1.7-a The share of agriculture in the GDP, 1991-2004, 1990=100

16,0 6 14,0 4 12,0 2 10,0 0 % Agriculture in GDP 8,0 -2 GDP real growth rates 6,0 -4 4,0 -6 2,0 -8 0,0 -10

1991 19921993 1994 1995 1996 19971998 1999 2000 2001 20022003 2004

Source: State Statistical Office, 2005

Agriculture is very important for employment in the former Yugoslav Republic of Macedonia. Approximately 40% of the agricultural population belongs to the category of active population and can be considered a workforce organized in agricultural households.

Statistically speaking, new jobs in agriculture are tracked through official data on employment in agricultural enterprises and food-processing facilities, as well as by a survey of a sample of households - Workforce research, that is in accordance with the International Labour Organization (ILO) methodological recommendations and Eurostat (European statistical bureau) recommendations. According to officially registered employment, the workforce in agriculture, forestry and hunting numbers 15,404 employees (annual average) or 3.7% of the total annual average of officially registered employees in 2004, which is in fact an approximately 40% increase when compared to 2003. Of the annual average of employees in the agricultural sector, about 23% are women, and 88% are skilled agricultural workers. According to the results of the 2004 Workforce survey, done by the State Statistical Office, employment in agriculture (include forestry and hunting) amounts to 87,608 employees, or 16.8% of all employees in 2004. Agriculture is an additional activity for 12,164 persons, of which approximately 66% are working on family farms. Agricultural employment rose in 2004 by approximately 15% in comparison with 2003 (14% in 2003).

Total income from agricultural activities of all agricultural households in the former Yugoslav Republic of Macedonia has achieved constant annual growth in the period 1998-2004. In 2004, total net entrepreneurial income of all agricultural households and agricultural companies is estimated at MKD 25,123 million, or 14% more than the net entrepreneurial income in 2003 (MKD 22,078 million). This indicator of agricultural income for individual agricultural producers represents the income generated by the agricultural household as a compensation for the employed labour of all household members. In the case of agricultural enterprises, the indicator represents the profit made by the production units of the company. The cost of labor involved in agriculture, expressed in net salaries, amounted to MKD 9,692 a month (approximately MKD 460 a day or about EUR 7.5) in 2004.

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Annex 5 : Quantitative review of methane emissions

Table 8-1: Methane Emissions By Component, USEPA (1998)

Methane Yield (ml/dry gram) MTCE/wet tonne Newspaper 74,2 0,259 Office paper 346 1,207735849 Corrugated Boxes 152,3 0,531613208 Coated Paper 84,4 0,294603774 Al Cans 0 0 Steel Cans 0 0 Glass 0 0 HDPE 0 0 LDPE 0 0 PET 0 0 Food Scraps 300,7 0,335 Grass 144,3 0,214 Leaves 56 0,166 Branches 76,3 0,17 Yard Trimmings 0,191 Screenings Textiles Misc Comb Mixed MSW 92 0,273

A range of estimates for methane emissions per tonne of MSW could be generated from different studies in the public domain. CSERGE et al (1993) looked at estimates from Aumonier and from Warren Spring Laboratory (WSL), and found ranges for best estimates of methane generation of between 53-81 m3 per tonne of municipal solid waste (MSW). The full range, from the low estimate assuming 20% methane oxidation, to the high estimate from Aumonier, was from 25-117 m3 per tonne. Powell’s (1992) mini- survey estimated recoverable quantities of the order 100 m3 per tonne (in which case, the actual quantities would presumably be much higher). Entec (1999) on the other hand, used much higher figures of the order 400-500 m3 landfill gas per tonne of MSW of which 50% was assumed to be methane (i.e. 200-250 m3 methane per tonne MSW). Using typical waste composition figures for the UK, and the USEPA (1998) methane generation figures in the Table above, ECOTEC (2000) obtained a value of 50 m3 at 5% oxidation rates, and only 42 m3 at 20% oxidation rates. It should be noted, therefore, that these are relatively low estimates of methane generation.

Because estimates for methane generation range to such an extent, and also because they are likely based on variables such as composition and climate, this study will take a number of different values for methane generation.

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Firstly we will use the UNFCCC inventory data for total country methane emissions from landfill. However, because we have no basis to compare the relative merits of the methodologies, we will also use a value for methane generation based upon emissions per tonne of waste landfilled. As stated above, there is a wide range of values for methane generated per tonne MSW landfilled and hence this study will use a range bounded by a high and a low value. We have used a range of 25 – 250 m3, which equates to a range of 0,018-0,18 tonnes methane per tonne of waste.

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