Skopje Urban Transport Project

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Translated version of this PSD: Macedonian The EBRD is considering making an investment to enhance the mobility of Skopje’s residents and improve road safety through the implementation of an automated traffic management system throughout the City centre, coupled with the reconstruction of one of the City’s principal traffic corridors, Prvomajska Street, to ease congestion in Skopje. Transition Impact of the project steams from: City of Skopje The EBRD is considering providing up to €5.6 million to the City of Skopje for the City’s key investments needed to improve the functioning of the urban road system in the City of Skopje including: (i) traffic management and (ii) rehabilitation of Privomajska Street. The total project cost is €7.89 million including related technical cooperation funds. Categorised B in accordance with the EBRD's 2008 Environmental and Social Policy. An environmental and social (E&S) due diligence for the project is currently ongoing and includes the environmental and social analysis of the proposed investment and a review of environmental, social, health and safety polices and procedures and the capacity of the municipality to manage environmental, social, health and safety risks associated with the proposed Project in line with EBRD’s Performance Requirements (PRs). The investigations to date have shown that the Project will provide environmental and social benefits related to reduction of congestion and air emissions, as well as improvements in road and pedestrian safety in the City of Skopje. The implementation of the Project will be associated with the creation of some temporary construction related jobs as well as permanent jobs in the new traffic management centre. No significant E&S management issues have been identified in relation to the Borrower. The City is willing to improve its E&S capacity and implement the necessary management systems in line with international standards, including achieving certification by the end of 2012. The proposed investment is associated with the potentially significant social impacts resulting from the land acquisition required for the Project that affects about 30 kiosks informally established on public land but whose activity has been permitted by the Municipality. In addition, there is a possibility that from two to three residential structures could be affected due to the anticipated road widening along the rehabilitated sections of Prvomajska Street, although upon realising this possibility the Municipality of Skopje has resumed work on fine tuning the alignment and marginally reducing the width of the Right-of-Way to avoid such physical displacement. A Resettlement Framework is in the process of being finalised. It establishes processes and procedures that the Borrower will have to follow to ensure compliance with the EBRD’s PRs in respect of mitigating the impacts of land acquisition. While the Municipality is committed to relocate the operators of commercial kiosks in a reasonably conducive location, these efforts have only partially materialised to date. The Bank will require the Municipality to prepare a Resettlement Action Plan, including the necessary stakeholder consultation, as a condition precedent to effectiveness of the loan. The construction works may be associated with moderate impacts related to increased noise, dust and vibration levels and disposal of waste as well as disruption of access for residents and businesses. Potential E&S impacts of the project will be additionally mitigated by the implementation of the Environmental and Social Action Plan (ESAP), including a monitoring plan, and a Stakeholder Engagement Plan (SEP). These documents will be finalised and agreed with the Borrower for implementation during the Project. This PSD will be updated when the due diligence is completed. The following technical co-operation funds are envisaged as part of this project: Pre-Signing Skopje Urban Transport - Urban Road Safety - ESDD. € 12,920 funded from the Bank’s own resources; Post-Signing