Focus on Energy, 2010 - Karanovic & Nikolic

CURRENT PROJECTSIt has been 22 years since the last construction of a TPP in Macedonia. There have been some announcementsof new projects, mostly for the hydro sector. The experts are unanimous that the construction ofnew capacities is an essential need that must be satisfied as soon as possible. TPP projects are not envisagedfor the near future because of the lack of serious strategy regarding the matter and the low energyvalue of the lignite excavated in Macedonia. On the other hand, there are ongoing and future projects inthe hydro energy sector, which are briefly presented below:HPP Chebren and GalishteScope of the project: A concession for the generation of electricity from the HPP’s “Chebren” and “Galishte”,both located on the Crna River will be granted. Subject to this public appeal is a public venturefor the execution of an investment project for the construction of two new hydro power plants and themanagement of the existing HPP “Tikvesh” by the concessionaire and ELEM, pursuant to the tenderdocumentation.Investment value: total of approx. EUR 539 millionStatus: The Government of Macedonia (the “Government”) signed a consultation agreement with theInternational Financial Corporation (“IFC”). The IFC services should improve the feasibility of the project,satisfying certain fundamental conditions that investors would expect in order for them to be interestedin this project. The bid call was closed on 15 October 2009. Companies interested in participatingin the biding were:43RWE - Germany & HSE - Slovenia (Joint Venture)VERBUND - AustriaENEL SpA - ItalyVardar Valley ProjectScope of the project: This project envisages the construction of 12 HPPs, all situated on the biggest riverin Macedonia, the Vardar. The total installed power is planned to be approximately 325 MW. The MacedonianMinistry of Economy (“MoE”) issued a memorandum on the project, stating the basic characteristicsof each HPP and detailing the environmental and climate circumstances of the Vardar basin.FOCUS ON ENERGYInvestment value: Since the project is in its first phase of planning, this information is unavailable at themoment.Status: The Government announced pre-qualification procedures for participants regarding the projectsin both 2008 and 2009. The whole project is still in preliminary-design stage although there are moredeveloped plans for the two biggest HPPs, “Gradec” and “Veles”3.HPP Boshkov MostScope of the project: A concession for the building, operating, and transfer of HPP “Boshkov Most”.The location for HPP “Boshkov Most” is located in the western part of Macedonia, close to the town ofDebar.Investment value: EUR 70 million3 In accordance with the informative memorandum on the Vardar Valley Project, issued by the MoE