J A P A N  S P E C I A L  F U N D

  Zletovo has been around for some 30 years, capping the city of Veles like two bookends with its two-plant complex - one, a zinc and lead smelter (one of the biggest in the Balkans), and at the other end of the city, a fertilizer production plant. Given the current strong world demand for zinc, Zletovo's workforce of nearly 700 are hectically filling back orders just to keep up. Newly privatized last October, the company already plans to increase zinc production, a welcome move for FYR Macedonia's government, which treasures Zletovo's world exports as one of the country's biggest hard currency earners.

  But like most heavy industrial producers, Zletovo's activities have wreaked havoc on the local environment. Air is heavily polluted, particularly with metal-laden brown dust, which has affected the city and ÒStobiÓ - one of the biggest archaeological sites in the Balkans and home to some of the most beautiful mosaics in Europe. Vineyards in the nearby hills would also welcome more breaths of fresh air.

  Another key problem is the wastewaters entering the Vardar River, which passes through Veles on its way to Thessaloniki, Greece. High concentrations of heavy metals are released from the smelter. And organics are released from the fertilizer plant, including nitrogen and phosphorus. In fact, the amount of phosphorus produced by Zletovo is double that produced by the entire country. The result? A dead river, especially after spills.

  Despite Zletovo's economic success, FYR Macedonia's government has threatened to close Zletovo if spills and pollution continue. In response, the company is more than willing to cooperate. Having recently installed air monitoring stations throughout the city, Zletovo is also on route to cleaning up the river, with help from the Japan Special Fund (JSF) located at the REC's head office in Hungary.

  Requested by FYR Macedonia's Ministry of Urban Development and Environment and Zletovo, the JSF commissioned a feasibility study to solve Zletovo's wastewater problems. During the study, Danish and local consultants found that full wastewater treatment would require enormous investments, and that the preferred solution was recycling - returning the wastewater back into production, which would also have the economic benefit of reducing water consumption and expenses for the company.

  It was also found that large volumes of water used and heated by the zinc smelter could easily and safely be used for heating purposes in the city of Veles. At the same time, heavily contaminated water from the smelter could be treated using Danish technology.

  Following the study and anxious to get underway, Zlectovo announced that it plans to immediately begin implementing projects suggested by the JSF's study. "We have exemplary cooperation between the REC's JSF, the REC's Local Office in FYR Macedonia, the Macedonian Ministry, and Zletovo," said Viktor Sakalys, Project Coordinator for the JSF study. "It's very rare that such an alliance is formed and works so effectively." The REC and JSF also donated water monitoring equipment worth 20,000 USD to Zletovo.