Engagement of machinery from private companies intended to clean snow from streets and road, as well as procurement of industrial salt and gravel for the winter season 2015-2016 will consume around 313 million MKD, i.e. more than 5 million EUR of public funds. These are addition costs, on top of costs from regular budget funding for state and local enterprises whose main business activity is maintenance of roads and streets.
According to the research which targeted 78 public procurements on winter maintenance, the said amount of 5 million EUR in total is mainly dominated by costs for engagement of machinery and workers from private companies, unlike costs for procurement of industrial salt and gravel to be poured onto roads and streets. Engagement of machinery to clean snow from the streets, which commonly includes snowplough and salt-spreader trucks, bulldozers, trenchers, etc., will cost around 3.8 million EUR. On the other hand, around 1.4 million EUR will be spent on procurement of industrial salt and gravel.
The highest amount of funds for winter maintenance will be spent by PE Macedonia Road, the City of Skopje and Municipality of Tetovo.
PE Macedonia Road which is responsible for maintenance and protection of highway and regional roads and whose task is to ensure winter maintenance services will singlehandedly spend around 2.9 million EUR for cleaning snow from the roads. This sum represents 56% of all funds spent for this purpose at state level. Of them, 1.7 million EUR are intended for engagement of machinery and workers to operate them, which will be rented from private companies. PE Macedonia Road will spend 842 thousand EUR for industrial salt to be poured onto streets and around 316 thousand EUR for crushed sand (gravel).
For winter season 2015-2016, the City of Skopje will spend 511 thousand EUR in total, of which 406 thousand EUR for engagement of machinery from private company and 105 thousand EUR for procurement of industrial salt for street maintenance. Municipality of Tetovo will spend 172 thousand EUR for winter maintenance of streets and roads on its territory, which is the highest sum of money spent on municipal level.
The biggest contracts on winter maintenance
The biggest individual contract on winter maintenance was signed by PE Macedonia Road and concerns procurement of 7,000 tons of industrial salt from KI-EM LLP export-import Skopje, in total value of 842 thousand EUR. This contract is at the top of the list because this public enterprise organized one tender procedure for procurement of industrial salt for all branch offices. Engagement of machinery to clean streets and procurement of gravel for individual branch offices was pursued by means of separate tender procedures and therefore their individual values are much lower than the contract on procurement of industrial salt.
In that, as shown on the list of tender procedures for winter maintenance services, 7 from 10 biggest contracts were signed by PE Macedonia Road, i.e. in addition to the big tender on procurement of salt, they also include contracts for engagement of machinery on behalf of its branch offices. More specifically, machinery engaged for the branch office in Skopje will consume 790 thousand EUR, branch office in Bitola – 315 thousand EUR, branch office in Stip – 190 thousand EUR, and branch office in Veles – 113 thousand EUR, while the branch office “Highway” will spend around 102 thousand EUR. Contracts on various works on state roads under winter conditions at the level of all five branch offices were signed with companies NB-TRANS COMPANY LLP Tetovo and PERPARIMI Nuhi Redjepi LLC import-export vil. Dolno Strogomiste, Zajas.
At the top of the list are two contracts signed by the City of Skopje for winter maintenance of streets. The first one concerns engagement of 15 salt-spreader and snowplough vehicles for winter maintenance of roads on the territory of the City of Skopje in duration of 24 months, from October 2015 to September 2017 and in total value of 50 million MKD, i.e. 813 thousand EUR. Hence, in the tabular overviews of contracts on winter maintenance for the season 2015-2016 enlists this contract in the amount of 25 million MKD, i.e. half of the total value. The City of Skopje will rent said vehicles from the company APOLO ENGINEERING LLC export-import vil. Sisevo, Skopje. As regards industrial salt, the City of Skopje purchased 1,300 tons of salt from the same company chosen as supplier to PE Macedonia Road, i.e. KI-EM LLC export-import Skopje.
Analysed in terms of individual municipalities, highest amount of funds for winter maintenance will be spent by Municipality of Tetovo, which has signed two contracts for this purpose. In that, the contract on winter maintenance of streets and roads on the municipal territory for the season 2015/2016 was signed with NB-TRANS COMPANY LLC Tetovo in the amount of 8.5 million MKD, i.e. 138 thousand EUR, while the second contract signed with company IR GROUP CONSTRUCT LLC export-import Tetovo amounts to 2,089,308 MKD, i.e. around 34 thousand EUR.
Next on the rank list of contracts according to their value, immediately after Tetovo is its neighbour Gostivar, whose contract on winter maintenance of streets amounts to 96 thousand EUR. The group of municipalities with contracts in the range from 50 to 100 thousand EUR also includes Gazi Baba, Centar, Kisela Voda, Prilep, Karpos, Kavadarci and Kriva Palanka.
Costs on winter maintenance of streets per region
When exempting contracts signed by PE Macedonia Road, which is responsible for maintenance of highway and regional roads, the highest amount of funds spent for winter maintenance of streets at the level of regions is calculated for Skopje, and the lowest amount for the Southeast region.
In that, the City of Skopje and 11 from 17 municipalities in the Skopje region will spend around 1 million EUR for winter maintenance of streets. Next on the list is the Polog region, where dominant share of municipalities anticipate winter maintenance costs in total amount of around 355 thousand EUR. All municipalities or their local utility enterprises in the Pelagonija region, with the exception of Municipality of Dolneni, have signed contracts on winter maintenance of streets in total value of 289 thousand EUR.
Municipalities from the Southwest region will spend a total of 213 thousand EUR, most prominent of which in terms of contract value were signed by Kicevo, Struga and Ohrid. 4 from 9 municipalities in the Vardar region have signed contracts on winter maintenance of streets in total value of 130 thousand EUR. On the other hand, 8 municipalities from the East region will spend around 115 thousand EUR.
Two regions, i.e. Northeast and Southeast, are below the threshold of 100 thousand EUR. In that, only two municipalities from the Northeast region have winter maintenance costs, those being Kriva Palanka and Staro Nagoricane, in total amount of 68 thousand EUR. Undoubtedly the lowest amount of funds for winter maintenance of streets will be spent in the Southeast region, where only 2 of 10 municipalities will spend money for that purpose, i.e. Gevgelija and Radovis, in total amount of around 28 thousand EUR.
The list of contacts on winter maintenance signed by municipalities includes three contracts with local public enterprises. In particular, Municipality of Kicevo has signed three contracts on winter maintenance of local roads and streets, two of which are signed with private companies, and one with PE Komunalec – Kicevo. Individual values for these contracts are not indicated in relevant notifications on contracts signed. Furthermore, Municipality of Kriva Palanka has signed one contract with the public enterprise for utility services KOMUNALEC – Kriva Palanka, in the value of 57 thousand EUR, and Municipality of Makedonska Kamenica has signed contract with PE Kamena Reka – Makedonska Kamenica, in the value of 38 thousand EUR. It is unclear why these municipalities organized tender procedures when they have local enterprises established for this business activity.
Companies with highest number of contracts on winter maintenance
Among total of 78 public procurement procedures on winter maintenance, names of companies that have been awarded the contract are known in the case of 53 procedures, in total value of 4.6 million EUR. As regards contracts in smaller value (25), information on companies awarded the public procurement are still not publicly available, and for them the rank list includes only information on estimated values, which amount to total of 460 thousand EUR.
Analysis of signed contracts provides the conclusion that the business for winter maintenance of roads and streets has been awarded to total of 34 companies, but large share of funds ended up with the top 10 companies. It is matter of companies that have signed 35 contacts in total, accounting for around 4.1 million EUR.
The list is led by KI-EM export-import Skopje, which has signed 13 contracts on sales of industrial salt and gravel in total value of around 1.2 million EUR. Second-ranked is NB-TRANS COMPANY LLP Tetovo, which has two contracts with PE Macedonia Road and one contract with Municipality of Tetovo, in total value of 1 million EUR. Third position on the list is held by PERPARIMI LLC vil. Dolno Strogomiste Zajas, which has signed all three contracts in total value of 617 thousand EUR with PE Macedonia Road. Fourth-ranked is APOLO ENGINEERING LLC vil. Sisevo Skopje, which has signed contract on engagement of machinery with the City of Skopje, in the value of 406 thousand EUR.
DIMAKS MINES LLC Sopotnica – Demir Hisar is ranked fifth, with three contracts in total value of around 300 thousand EUR, all signed with PE Macedonia Road. Next is company ANIZOR LLC vil. Sisevo – Saraj, which has also signed three contracts on winter maintenance of streets with Skopje-based municipalities Centar, Kisela Voda and Karpos, in total amount of 227 thousand EUR. Seventh-ranked is another company that has signed contracts with Skopje-based municipalities. It is a matter of REKA INTERNATIONAL LLC Skopje, which has signed contracts on winter maintenance of streets with two municipalities (Gazi Baba and Butel) in total value of 96 thousand EUR. Next on the list is MAGNUM TRANS R LLC import-export – Gostivar, which has signed one contract with Municipality of Gostivar in the amount of around 96 thousand EUR. Ninth position is reserved for Kavadarci-based company JA-MI export-import LLC, which has signed two contracts with municipalities Kavadarci and Rosoman, in total value of around 71 thousand EUR. Top 10 is completed with BILD-ING LLP Skopje, which has signed contracts with two Skopje-based municipalities (Gazi Baba and Butel) in total value of 70 thousand EUR.
