ESM Energy Crisis Liquidity Support


North Macedonia

Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

20 Jul 2022


Passed Final Review, Pending Approval

PSD disclosed:

12 May 2022

Project Description

Up to EUR 100m sovereign Guaranteed loan in favor of JSC Elektrani na Severna Makedonija ("ESM", "Borrower" or the "Company") to support the Company's liquidity needs in the midst of the energy crises affecting North Macedonia.

Project Objectives

The proposed loan addresses an emergency liquidity gap, by providing financial support to ESM and policy dialogue to the Energy Sector to address structural issues in the local energy market. It provides vital liquidity support to continue to endorse ESM's decarbonisation strategy following the successful commissioning of its first solar plant Oslomej ("Oslomej", DTM 50415) with a capacity of 10MW and the upcoming signing of an additional 30MW solar PV plant in Oslomej (10MW extension) and Bitola (20MW) (DTM 52320). Successful RES deployment will be key in helping the country meet its sustainability and energy security targets.

Transition Impact

ETI score: 62

TI sources are expected to be Resilient and Inclusive qualities. Resilient: the proposed liquidity facility and associated policy dialogue will increase the resilience of the energy sector to systemic shocks such as the Covid-19 and current electricity market crises. Inclusive: ESM will also promote human capital development and capacity building for young workers across its operations in North Macedonia. This will be achieved by introducing a new accredited training program that will allow young local workers to gain market-relevant skills such as electricity trading and project management.

Client Information


ESM is a public electricity generation utility, fully owned by the Government of North Macedonia. The company provides approximately 90% of the entire domestic electricity production.

EBRD Finance Summary

EUR 100,000,000.00

Up to EUR 100 million loan to be provided to ESM.

Total Project Cost

EUR 100,000,000.00

Use of proceeds will be ring-fenced to cover liquidity needs and will not be used to finance any fossil fuel linked operations and investments.


The Bank's additionality is driven by the emergency nature of this loan including lack of commercial financing in North Macedonia given the existing exposure limits to ESM. The EBRD financing is also expected to provide non-financial additionality in the form of supporting the decarbonisation plan and the strengthening of ESM and the energy sector in North Macedonia. Furthermore, ESM is seeking the Bank's expertise in adopting gender standards and equal opportunities action plan.

Environmental and Social Summary

Categorised B (2019 ESP). The provision of the liquidity finance will be used as working capital to finance salaries, debt service and other administrative costs of the client and is not associated with any new environmental or social risks or impacts. ESM is an existing client of the Bank with good performance record and has proven their ability to comply with the Bank's requirements during on-going projects (OpID 50415 and 52320). Environmental and Social due diligence (ESDD) will be focused at the corporate level E&S management systems and progress with ESAP implementation on existing projects. Internal ESDD will be undertaken based on a review of E&S Corporate Questionnaire, COVID-19 Questionnaire and annual E&S monitoring reports. ESDD will focus on the key E&S risks including assessment of the alignment with Paris Agreement, E&S capacities, emergency response, any associated retrenchment issues and procedures and stakeholder engagement.


The PSD will be updated following the completion of the ESDD.

Technical Cooperation and Grant Financing

Technical assistance will be provided for the purposes of:

  • Provide training through the engagement of an experienced external consultancy to build (i) Project Management and (ii) Electricity Trading skills within ESM, in support of a targeted build-up of market liquidity and ESM resilience to market turbulence.
  • Risk assessment of the EU's forthcoming CBAM implementation on the local economy and support to the government in the preparation of an updated NECP in line with the results of this analysis and best international standards.

The PSD will be updated following completion of DD and negotiations with authorities.

Company Contact Information

Dobrila Stefanoska
+389 2 3149 231
+389 2 3149 160
11 Oktomvri 9,1000 Skopje, Republic of North Macedonia

PSD last updated

12 May 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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