Thessaloniki-Skopje Crude oil Pipeline project


FYR Macedonia

Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

19 Dec 2000



PSD disclosed:

24 Nov 2000

Project Description

Construction of a crude oil pipeline from Hellenic Petroleum’s facilities at Thessaloniki to the Okta refinery at Skopje capable of carrying 2.5 million tons of crude oil per annum, reducing transportation costs and providing security of supply to the region.

Transition Impact

The project will encourage links between the oil sector and the rest of the economy through the expansion of the market. The Bank has also engaged in a policy dialogue with the government of FYR Macedonia concerning long-term sector liberalisation. The project will also contribute to regional integration, as the growth of HP’s operations will allow the company to supply neighbouring countries.

The Client

Hellenic Petroleum (HP) is the main sponsor of the project and the largest oil company in Greece. It is pursuing a regional expansion based on its strengths in refining and marketing. HP has the most modern refineries in the region representing 50 per cent of Greek refining capacity and supplying 57 per cent of the Greek crude oil market. The proposed borrower is a subsidiary of HP.

EBRD Finance

A loan of up to US$ 50 million (€59 million). Of this amount, up to US$ 25 million (€29 million) is intended to be syndicated to commercial banks.

Project Cost

The total project cost is US$ 105 million (€123 million).

Environmental Impact

The project has been screened A/0, requiring a full Environmental Impact Assessment (EIA). This was carried out by independent consultants in accordance with EU/Greek, FYR Macedonian and EBRD requirements. While the construction of the pipeline will involve a range of environmental issues, it will reduce transport costs by more than 40 per cent and, on the basis of a risk assessment, significantly reduce the risk of a major hazard accident from the existing rail transportation. Representatives of the EBRD, along with environmental consultants, inspected the full length of the proposed pipeline route. As a result of the environmental and technical studies, the pipeline has now been re-routed to take account of all sensitive environmental and ecological issues. In particular, the pipeline is no longer routed alongside the Vardar and its nearby riparian (wetland wildlife) ecosystems, with the majority of the route now passing through agricultural land of limited ecological importance. A detailed environmental management plan, including an emergency response plan, has been developed to ensure that any unforeseen or unidentified impact is minimised. Public consultation issues are also being addressed as part of the EIA process and in line with the Bank's Public Information Policy.

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

Technical Cooperation



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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