Boskov Hydro power project

Translated version of this PSD: Macedonian

Project Description

The 70MW Boskov Most hydro power plant (the Project) is to be located near the town of Debar in western FYR Macedonia. The Project is intended to utilise fully the hydro power potential of the tributaries that combine to make up the river Mala Reka and will include a dam and reservoir near the villageof Tresonce. The dam will have provisions for maintaining an environmental flow and an overflow spillway for high flow events. Annual generation is forecast to be around 118 GWh.

Transition Impact

The transition impact potential for the Project stems primarily from the following:

• The Project will enhance the security and quality of supply in the Macedonian electricity sector by addressing the existing capacity gap and providing flexible, responsive power at peak times. In doing so it will improve the efficiency of the system for all consumers and, within the sector, strengthen the conditions for the development of a functioning electricity market.
• The Project will demonstrate the opportunities that exist to build significant renewable capacity in the West Balkans, in particular using an innovative technical approach; it will in itself decrease the carbon intensity of the Macedonian generation sector.
• The Project will be implemented in accordance with best environmental and technical standards, as well as ensuring transparent and efficient procurement procedures are followed.

The Client

AD Elektrani na Makedonija (ELEM) is a 100 per cent state owned electric power utility of FYR Macedonia responsible for mining and power generation. ELEM was formed in 2005 and currently has two main businesses: it carries out mining operations in four coal mines and operates 1,329 MW of power generating capacity, of which 60% is lignite-fired and 40 per cent hydropower.

EBRD Finance

€ 65 million: EBRD sovereign guaranteed loan

€ 19 million: ELEM equity

Project Cost

€ 84 million.

Environmental Impact

The project has been categorised A in accordance with the EBRD’s 2008 Environmental and Social Policy. An Environmental and Social Impact Assessment (ESIA) including public disclosure and consultation, was undertaken in compliance with Macedonian law, the EU EIA Directive, and the EBRD’s requirements in 2011. A Stakeholder Engagement Plan, Environmental and Social Action Plan, Non-Technical Summary, and a Land Acquisition and Compensation Framework were also prepared and disclosed along with the ESIA.

Due to the findings of the ESIA and the public consultation, additional bio-monitoring programme over four seasons before construction and additional consultation with biodiversity experts were made preconditions for disbursement of the EBRD’s loan and for commencement of construction. The additional monitoring was undertaken by an independent consultant in 2012-2013. The monitoring programme aimed at complementing the existing information contained in the ESIA as well as identifying additional mitigation measures to further avoid or minimise potential impacts. Concurrently, substantial data was received from the Study for the Revalorization of the Protected Area Mavrovo and the Management Plan for the Protected Area Mavrovo, which were taken into consideration in the monitoring programme.

The ESIA and comprehensive bio-monitoring programme concluded that the construction and operation of Boskov Most HPP in combination with the implementation of the mitigation strategy will not have significant impacts on the Park’s unique environment and biodiversity. Additionally, the Project will not affect the national park status of Mavrovo. The monitoring report also concluded that Boskov Most will not significantly increase the risks to the Balkan lynx.

ELEM and EBRD have shared the additional bio-monitoring results with a number of local and international scientific experts to undertake thorough and full consultation with experts in the field. The monitoring report and recommendations have been amended to take into consideration the experts’ comments and to propose additional mitigation measures. Specific mitigation measures and monitoring actions during the project’s construction stage have been developed to prevent adverse negative impacts.

The additional bio-monitoring report ant he monitoring consultant’s responses to the comments received from biodiversity experts, alongside with other Project information, are disclosed on ELEM’s website at: http://www.elem.com.mk/index.php?option=com_content&view=article&id=99&Itemid=141&lang=en
ELEM and EBRD will continue to engage with interested organisations and biodiversity experts to ensure that future mitigation and monitoring activities will take into account sound scientific advice. EBRD and the ELEM will also remain in close communication with the National Park authorities.

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

Technical Cooperation

€65,000 for environmental due diligence from the EBRD Shareholders Special Fund.

€200,000 for technical due diligence from the EBRD Shareholders Special Fund.

 

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