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Pioneering project in the solid waste sector in North Macedonia introducing EU-compliant solid waste management services -
Encourage increased rates for waste and recycling collection services -
Donor support from Switzerland, Sweden and the Western Balkans Investment Framework
The European Bank for Reconstruction and Development (EBRD) supports the modernization and expansion of North Macedonia waste management system. The Bank grants a sovereign loan of 55 million euros to enable the country to build new sanitary landfills and rehabilitate existing ones, build new transfer stations, waste collection and transport infrastructure, and a recycling center , and to close two undeveloped landfills. The project will be implemented by the Ministry of Environment and Regional Planning.
The investment will support the establishment of three integrated regional waste management systems in accordance with European Union (EU) standards in five regions (Polog, South-West, Pelagonija, Vardar and South-East), providing services to more than a million people. The project will therefore make local landfills obsolete and introduce environmentally friendly disposal practices in line with EU standards.
Susan Goeransson, EBRD Director for Infrastructure in Europe, said: “We are delighted to support the modernization of North Macedonia’s waste management system with our first investment in this sector. Modernizing waste management systems and increasing recycling rates are key to reducing pollution, creating opportunities in the circular economy and bringing the country closer to EU environmental standards.”
Fatmir Besimi, Minister of Finance of North Macedonia, said: “This investment is of crucial importance for a greener and sustainable future of North Macedonia. Not only will this significantly reduce pollution, which is the top priority of our citizens, but it will serve as an example for the introduction and development of new projects in the field of circular economy.
“The ministry, together with the Ministry of Environment and Physical Planning, is proud to bring such a significant change in solid waste management, in line with EU standards, for the first time in the country. This investment, supported by the EBRD as well as grants from SECO and WBIF, guarantees the prosperous regional development of our country.”
Naser Nuredini, Minister of Environment and Spatial Planning, said: “Finally, after 31 years of independence, North Macedonia is seriously investing in building waste management infrastructure in line with European standards , and this confirms our commitment as a government and ministry to the realization of the country’s green agenda.
“The new approach (of the) regional waste management system will allow the implementation of better collection, transport and disposal of waste and the construction of two sanitary landfills in accordance with national and European legislation on landfills,” a- he continued. “We are investing for the good of our citizens, but at the same time we are creating a better and healthier environment and living conditions for future generations, thanks to the support we receive from the EBRD. »
The project will also benefit from donor-funded support, of which €24 million will be in the form of investment grants and €13.1 million will be for technical assistance. Donors include the Swiss State Secretariat for Economic Affairs (SECO), the Swedish International Development Cooperation Agency (SIDA) and the Western Balkans Investment Framework (WBIF).
SECO’s financial support of around 9 million euros will be divided between an investment component of around 6 million euros to finalize the rehabilitation of the Polog landfill and around 3 million euros for further development institutional frameworks at regional and local levels in the field of solid waste. sector. At the same time, the aid financed by SECO will also be granted to the Energy and Water Services Regulatory Commission in order to expand its competences in the sector, in particular by preparing a new tariff methodology.
Additionally, the project includes a WBIF-funded component on inclusive and socially responsible procurement. This aspect of the project will demonstrate how large infrastructure projects in the solid waste sector can contribute to greater economic inclusion and will ensure the participation of Roma and women trainees in the program.
Furthermore, the project should benefit from support from the WBIF to the tune of 22.3 million euros as well as aid of 2 million euros for the development of associated studies in two regions. The preparation of the project and its upcoming implementation are supported by SIDA with a grant of one million euros.
The project is aligned with the Paris Agreement. It will significantly reduce greenhouse gas (GHG) emissions, with an estimated reduction in GHG emissions of approximately 182,000 tonnes of CO.2 equivalent per year.
The EBRD is one of the main institutional investors in North Macedonia. To date, it has invested €2.5 billion in 171 projects in various sectors of the economy, with a major focus on private sector development.