Project Goal

The main objective of the project is to improve transparency, financial sustainability and delivery of targeted municipal services in the participating municipalities by providing sub-loans to municipalities for investments in revenue-generating public services and other investment projects of high priority to municipalities and with cost savings potential. These investments will contribute to the improvement in performance in service provisions and strengthening municipalities’ functions and competences as regulated by the Law on the local self-government units.

Target Group (Project Beneficiaries)

The project will encompass these municipalities that are approved for the second phase of fiscal decentralization and which, according to the Law on financing of local self-government units and the Guideline on the borrowing method and the procedure of the municipalities and the public enterprises in the Republic of Macedonia, issued by the Ministry of Finance, fulfill entirely the conditions for long term borrowing.

Project Components

Component A: Municipal Investments (US$ 64,25 million)

This component would provide loans to municipalities that are eligible to borrow.

The following activities are eligible for financing:

  • Water and sanitation services: finance for civil works, equipment, and consulting services to rehabilitate water and sanitation services, including for source and consumption metering, leak detection and repair, network rehabilitation and optimization, pressure zoning, and equipment for operations; and urgent rehabilitation and repair of selected sewers, sewer maintenance equipment, and pipe replacement.
  • Solid waste management: finance for collection infrastructure and support equipment, such as collection bins, support vehicles, and other related equipment and consulting services; and to a limited extent, civil works and equipment to upgrade existing disposal sites to meet minimum sanitary standards.
  • Other revenue-generating or cost-saving investments: finance for civil works, equipment and related consulting services for upgrading and/or expanding of other services or facilities under the responsibility of municipalities, such as public lighting, storm water drainage systems, urban transport systems, green markets, or insulation of public buildings to lower energy consumption or otherwise enhance efficiency.

The project will not finance :

  • water treatment plants,
  • extension of sewerage systems,
  • works related to the new and existing waste landfills.

Terms of on-lending of funds:

  • Interest rate: six months LIBOR for Euro plus the variable spread,
  • Grace period: maximum 3 years,
  • Repayment Date: maximum 10 years.

On-going tender procedures:

Request for Expresion of  Interest-Technical Assistance: Small Sizer Waste Water Treatment in Rural Areas

Terms of Reference-Small Size Waste Water Treatment in Rural Areas


Component B: Capacity Building and Institutional Reform – (US$ 2,95 million)


This component includes consultancy services and technical assistance for the municipalities for sub-project preparation, local capacity building, and national level institutional strengthening.

Component C: Performance-Based Investment Grants – (US$ 5,6 million)

This component provides grants to municipalities as an incentive and reward for implementation of reform initiatives aimed at performance improvements in service delivery. Performance grants will be awarded based on achieving at least 4 of the 7 listed criteria, after verification of criteria implementation. The amount of the awarded grant is related with the amount of the loan for the appropriate municipality and it may reach to 20% of the total amount of the sub loan. The grant funds may be used solely for the financing of investment projects.

Component D: Project Management, Monitoring and Evaluation – (US$ 2,2 million)

Project papers:

“Berovo – project on streets reconstruction”

“Vinica – project on procurement of  special  vehicles for collection of communal waste“

“Mavrovo i Rostushe – project on reconstruction of local roads“

“Kriva Palanka – project on construction and reconstruction of various streets in the city Kriva Palanka and provision of the new equipment for public services“

“Bosilovo – project on construction of local roads and streets“

“Rankovce – project on construction of local roads in Rankovce municipality“

“Gazi Baba-project on construction of elementary school Grigor Prlicev“

“Petrovec-project on construction of elementary school Kocho Racin“

Vinica-project on construction of 2008 street and storm water system  on streets “Ilindenska“ and “Braca Miladinovi“

“Caska-construction of local road and resorvoir”

“Butel”-construction of elementary school “Zivko Brajkovski”

“Krushevo”-installation of water meters

“Mavrovo and Rostushe”-project for construction of street lightening

“Dojran”-project for procurement of waste collection vehicle and back hoe loader

“Ohrid”- subproject for procurement of special comunal vehicles and rehabilitation and reconstruction of varius streets , two local roads and fencing of a landfill

“City of Skopje-Municipality of Suto Orizari”-construction of water supply system in Municipality of Suto Orizari

“Rosoman”-construction of 250 m3  water supply reservoir in municipality of Rosoman

“Zelino”- Street reconstruction and construction of sidewalks and stormwater system in the municipality of Zelino

“Karposh”-Construction of storm water network and reconstruction of various streets in the urban districts of municipality Karposh

“Kocani”-Construction of 10 streets in municipality Kocani

“Gjorce Petrov”-Reconstruction of various streets in the urban district of municipality of Gjorce Petrov

“Negotino”-Reconstruction of water supply system in municipality of Negotino

“Sveti Nikole”-Reconstruction of two streets in municipality of Sveti Nikole

“Delcevo”-Extension of the kindergarten “Veseli Cvetovi”

“Makedonska Kamenica”-Reconstruction, adaptation and extension of the Cultural center “Romansa” in municipality Makedonska Kamenica

“City of Skopje”-Reconstruction and rehabilitation of the street Boris Trajkovski from the factory Staklara to Pintija settlement

“Radovish”-Construction of local road that connects two local communities Kalugjerica and Podares in municipality Radovis

“Krivogashtani”-Construction of new streets and reconstruction of an existing street in municipality of Krivogashtani

“Bitola”-Construction of seven streets with sidewalks, water supply system, storm water system and street lightening in the former military area ARM1 and ARM2 in Municipality Bitola

“Kratovo”-Construction of new green market in the municipality of  Kratovo

“Sopishte”-Rehabilitation of varios streets in municipality of Sopishte



Main contacts of the Project Implementation Unit of the MSIP Project:

Lead Project Coordinator
Tanja Tomic
telephone: +389 2 3255738, +389 72 796 660

Financial Management Specialist​
Ljubica Patlidzankovska
telephone: +389 2 3255736, +389 75 402 104

Legal and Procurement Coordinator
Aleksandar Najdovski
telephone: +389 2 3255735,+389 75 317 670

Technical Coordinator
Roza Perkovska
telephone: +389 2 3255733, +389 75 317 673

Civil Engineer
Jasminka Zanteva-Bozikova
telephone: +389 2 3255732, +389 70 315 356

Civil Engineer
Goran Trencevski
telephone: +389 2 3255737, +389 72 272 933

Civil Engineer
Jasminka Taseva-Jankovic
telephone: +389 2 3255790, +389 70 379 835

Architect Engineer
Bardul Marku
telephone: +389 2 3255664, +389 72 796 632

Civil Engineer
Jane Kalcoski
telephone: +389 2 3255490, +389 72 796 659

Civil Engineer
Rade Lazarevski
telephone: +389 2 3255714, +389 75 406 597

Civil Engineer
Filip Mijajlevski
telephone: +389 2 3255521, +389 72 796 633

Administrative assistant/ Translator
Ana Ristovska
telephone: +389 2 3255734,

Administrative/ Operative assistant
Zoran Dejkoski
telephone:  +389 2 3255731, +389 70 315 349

Financial assistant
Simona Stankovic
telephone:  +389 2 3255772,

Environmental Consultant
Katarina Georgievska
telephone:  +389 2 3255772, +389 72 796 658

Significant documentation related to the implementation of the project:

Small size wastewater treatment in rural areas-Final summary report with recommendations

MSIP 2- Project Information Fiche

MSIP 2- Project Operational Manual

MSIP 2 – Enviromental Assessments and Managament Framework Document

MSIP-2- Resettlement Policy Framework

Procedures for use of MSIP funds

MSIP Project Appraisal Document

MSIP Project Operational Manual

Urban Audit Framework

IBNET report 2013

MSIP project financial statments and Independent Audit Report for year 2013

MSIP project financial statements and Independent Audit Report for year 2014

MSIP project financial statements and Independent Audit Report for year 2015

MSIP project financial statements and Independent Audit Report for year 2016

Revised Environmental Assessments and Management Framework Document

Annual financial statement for MSIP

Annual financial statement for MSIP additional financing


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