EBRD is considering providing co-financing for a new section of Corridor X from Smokvica to Demir Kapija

The EBRD is considering providing co-financing, together with the European Union’s Instrument for Pre-accession (‘IPA’) and the European Investment Bank (‘EIB’) for a new section of Corridor X from Smokvica to Demir Kapija which has a total length of 28 km. This forms part of the key section of this north-south link running from Austria, through South East Europe, to Greece. In addition, the project will also finance toll stations and the necessary electronic tolling facilities along Corridor X.

The investment is required to meet the growing traffic demand and to facilitate achievement of full motorway standard, thus, ultimately, facilitating regional integration and connectivity with the wider Europe.

Building on initiatives through previous Bank projects, the project will facilitate further reform in the roads sector through:

• The introduction of electronic tolling.
• The introduction of performance based maintenance contracts; and
• The definition of key milestones required for the concessioning out of road Corridor VIII to a private operator.

Agency for State Roads (‘ASR’), which is an independent state owned agency responsible for the operation and maintenance of the road network in the FYR Macedonia.

€107 million senior loan to the government of FYR Macedonia, represented by the Ministry of Finance (‘MOF’). The total project cost is €316.9 million, with EBRD providing loan funding of up to  €107 million.

Project screening and categorisation

The project is categorised “A” as it could result in potentially significant adverse environmental and/or social impacts which cannot readily be identified or assessed:

(a) Construction of Project will involve environmentally sensitive activities such as tunnelling in the Demir Kapija canyon
(b) The available EIA lists a number of sensitive issues (see below)

Main environmental and social issues

Sensitive habitats have been identified in the Macedonian Environmental Impact Assessment (EIA) and include mainly:

• The Demir Kapija canyon, with several species of raptors, vultures and bats listed as “vulnerable” or “endangered”
• The plane and willow gallery forests predominantly located along the right bank tributaries intersected by the trace, and the maquis and pseudo-maquis habitats on the plateaus.

Any surface deforested as a result of the project will be compensated by plantations of an equivalent surface in adjacent areas that have already been identified in detail.

The Project does not affect any residential structure.  It affects some agricultural and pasture land in the Vardar valley towards the villages of Miravci and Smokvica (mainly open field with some orchards and vineyards).

The proposed route is generally well away from settlements; however, noise protection will be needed locally, as well as re-establishment of local roads and agricultural tracks in the Vardar valley between Mitrevci and Smokvica.

As for any project of this nature, construction impacts will include noise, dust, vibration, severance of local traffic and waste / spoil management. The balance of material is positive due to some significant tunnelling and a disposal area has been identified and permitted for excess spoil. Obligations in respect of construction phase environmental management will be shared between the borrower and the contractor and an environmental monitoring plan and management system will need to be put in place.

News source: EBRD link: article