|
Title: |
Municipal
Environmental Action Program (MEAP) |
|
Objective: |
Improvement of
water and wastewater infrastructure. Transition impact through
commercialisation, demonstration effect and competitive
procurement |
|
Description: |
Development and financing of a
priority investment programme for the rehabilitation,
upgrading and extension of water supply and wastewater
infrastructure in up to five utilities of the following
Macedonian municipalities: Kumanovo, Ohrid/Struga, Stip,
Strumica, Veles. Financial and operational performance
improvement. Programme to move water utilities towards
self-financing. |
|
Preparation Status: |
Project
development commenced in May 1999. A legal and tax analysis as
well as a pre-feasibility study have now been completed, and 5
municipalities have been shortlisted for a feasibility study,
expected to be completed in March 2000 |
|
Economic/Financial Justification: |
To be established
by the feasibility study. Tariff increases may be possible in
the water sector, but affordability constraints are severe.
Grant assistance is crucial to prevent severe environmental
and health hazards. |
|
Cost: |
Approximately EUR 50
million |
|
Financing Plan: |
European Bank for
Reconstruction and Devleopment (loan) EUR 20 million
Local contributions (central government) EUR 5 million
To be identified: EUR 25 million |
|
Borrower/Final Beneficiary: |
Government of FYR of Macedonia
Water utilities of the municipalities of Kumanovo, Ohrid /
Struga, Stip, Strumica and Veles |
|
Major Sector/Project Issues: |
Significant affordability
constraints
Financial viability of water utilities critically dependent on
tariff increases and improved collection rates
Grants |
|
Responsible Staff: |
European Bank for
Reconstruction and Development
London
(Karen Decker and Rudolf Frauendorfer) |
