FYR MACEDONIA TRANSMISSION INTERCONNECTION

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 27768

Status Complete

Location

Business Sector

Energy

Notice Type

Public

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 27768

Status Complete

Location

Business Sector

Energy

Notice Type

Public

Environmental Category

Approval Date

29 Jul 2003

Disclosure date

25 Apr 2003

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The project consists of: (a) construction of a 150 km long 400 kV Transmission line from Stip, FYR Macedonia to Chervena Mogila, Bulgaria (80 km of the line is to be built in Bulgaria); (b) upgrades to substations in Dubrovo; and (c) a new substation in Stip. The project will: (a) increase system stability, particularly in the east of the country; (b) decrease system losses; and (c) help the establishment of a regional electricity market.

Transition Impact

In the domestic context, the transition challenge is to improve sector performance vis-à-vis losses and operations, and promote unbundling and commercialisation in a sector still organised along the lines of a state owned integrated utility. The Project will support long-term reform measures, including independent regulation and an improved tariff formulation for cost recovery. In the regional context, the Project will support market expansion, leading to efficiency gains and, in the long run, increased competition, by linking up the power networks of FYR Macedonia and Bulgaria and creating greater opportunities for trade by other countries in the region as well. The agreements between FYR Macedonia and Bulgaria required for the Project will set a precedent for other similar projects and thus may speed the creation of a regional electricity market to which the region’s countries have committed themselves.

The Client

The client is the state-owned electricity utility – Elektrostopanstvo na Makedonija (ESM). The public enterprise ESM has existed for more than five decades in various legal forms. Recently its legal status was converted to joint stock company. Its basic activities are the production, transmission and distribution of electricity in FYR Macedonia. ESM also operates coal mines associated with thermal power plants, and is involved in regional electricity trade.

EBRD Finance

Up to €41 million sovereign-guaranteed loan.

Project Cost

€50 million.

Environmental Impact

The project was screened A 0, requiring separate Environmental Impact Assessments (EIAs) for both the Bulgarian and the Macedonian part of the transmission line. EIAs, prepared by local consultants in accordance with national permitting requirements, were reviewed by the Bank and independent international consultants and were subsequently amended to comply with Bank requirements. The EIAs confirmed the adequacy of the route selection process and did not identify major environmental issues. The routing of the line is not affecting protected areas and the transmission corridor is at a sufficient distance to avoid negative impacts on local population. The EIAs include sets of recommendations to alleviate any impact during construction and operation.

As part of the EIA process, a scoping meeting was held in Stip, for the Macedonian part of the line. The Bulgarian EIA process (as required under national law, which is based on EU requirements) had already included public meetings and it was therefore decided that a scoping meeting was not required. The draft final international EIA documents were made publicly available as required under the Bank’s policies, in both the national languages and in English. A public meeting was held for the Macedonian part of the transmission line in Kriva Palanka. NGOs from both countries were invited to this meeting. The public consultation process inclusive of this meeting did not raise any substantial points. The meeting raised a number of comparatively minor points which were subsequently considered in the final version of the Macedonian EIA. With regard to the Bulgarian EIA, there was no public interest in the documents and it was therefore decided that a public meeting waas not necessary. This absence of interest reflects the fact that a full consultation process had already been carried out under the national EIA law and that NGOs from both countries attended the two meetings in Macedonia. The recommendations set out in both EIAs are covenanted (as an Environmental Action Plan) in the Loan Agreement and their implementation will be monitored by the Bank.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

Up to €50,000 to confirm project costs and prepare a Project Implementation Plan (PIP), funded by Switzerland.

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project ID 27768

Status Complete

Location

North Macedonia

Business Sector

Energy

Environmental Category

Disclosure date

11 Mar 2003

Purpose of the Environmental and Social Impact Assessments

The project involves:

the construction of a 150 km long 400 kV transmission line from Shtip, FYR Macedonia to Chervena Mogila, Bulgaria;
the construction of 400/110 kV substation in Shtip, FYR Macedonia;
upgrades to substations in Dubrovo; and
the completion of transmission telecommunications links.

The project is sponsored by the Electric Power Company of FYR Macedonia (ESM) and the National Electric Power Company of Bulgaria (NEK) and is considered a high priority project in the Stability Pact and SECI by both countries. The Project will support long term reform measures that will lead to improved tariff formulation for cost recovery. The agreements between FYR Macedonia and Bulgaria required for the project will set a precedent for other similar projects and thus speed up the creation of a regional electricity market. Overall, the project has the potential for a regional impact by setting standards both for a single market (within FYR Macedonia) and cross border co-operation to increase regional efficiency.

There is a project summary document available for this project.

ESIA Summary

EIA summary for Bulgaria (261KB - PDF)
EIA summary for FYR Macedonia (146KB - PDF)

Full ESIA availability

Full ESIA documentation is available locally at:
EBRD Headquarters in London, environmentandsocial@ebrd.com

And

FYR Macedonia

ESM JSC
11 Oktomvri 9, 1000 Skopje
New Administrative Building, 4th floor, room 415
Tel: (+389 2) 149 089
fax: (+389 2) 111 160
Contact: Zlatko Cherepnalkoski
Email: cherep@esmak.com.mk

ESM Distribution Department - Shtip
Tel: (+389 32) 391543 ext: 109
Contact: Magdalena Trajcheva

ESM Distribution Department - Probishtip
Tel: (+389 32) 483802
Contact: Dimitar Naumov

ESM Distribution Department - Kratovo
Tel: (+389 31) 481101, 481487
Contact: Dimitar Petrov

ESM Distribution Department - Kriva Palanka
Tel: (+389 31) 375 925
Contact: Suzana Ristovska

EBRD Resident Office
2nd floor Intex Business Centre
14 Dame Gruev, 1000 Skopje
Tel: (+389 2) 297 800
Contact: Emil Mihajlov

Bulgaria

NEK
Investment Division
5 Vesletz Str.
Sofia 1040
Tel: (+359 2) 9861288
Fax: (+359 2) 988-0695
Contact: Radka Tomova
Email: rtomova@nek.bg

EBRD Resident Office
17 Moskovska, Sofia 1000
Tel: (+359 2) 932 1414
Contact: Elena Fournadjieva

Websites

For FYR Macedonia
English: www.esmak.com.mk
Macedonian: www.esmak.com.mk

For Bulgaria
English and Bulgarian: www.nek.bg

Enquiries

See ESM and NEK contacts above

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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FYR MACEDONIA TRANSMISSION INTERCONNECTION

Project timeline

Project Description

Transition Impact

The Client

EBRD Finance

Project Cost

Environmental Impact

Technical Cooperation

PSD last updated

Business opportunities

General enquiries

Public Information Policy (PIP)

Purpose of the Environmental and Social Impact Assessments

ESIA Summary

Full ESIA availability

Enquiries