The northeast region of North Macedonia suffers from seasonal shortages of water. To address this situation, in 2001, the Government established an agency responsible for improving water supply while maximising the efficient use of the Zletovica river.
In order to ensure sustainable provision of water to municipalities and farmers and renewable energy in the catchment of Zletovica river, a three-phase investment has been foreseen for the construction of Knezevo dam, irrigation in Probistip and Kratovo municipalities, and the construction of small hydroelectric power plants.
A €1 million technical assistance grant was provided through WBIF for Phases II and III appraisal (Phase I has been already supported by the Japan Bank for International Cooperation). Technical assistance included an update of the feasibility study related to the irrigation component, a feasibility study related to the hydropower component, an integrated economic analysis for all three components and an environmental and social assessment study for the hydropower component.
The Zletovica investment will contribute to the social and economic development of the region by providing new employment and reducing poverty. Irrigation will encourage agricultural development through increased product quantity and quality. The production of hydroelectricity will increase the renewable energy supply and contribute to reducing CO2 emissions. Additionally, the integrated nature of the investment will contribute to a better adaptation to climate change by reducing flood damage and ensuring the production of agricultural products and energy during dry seasons.
