Investment program

• AD MEPSO cooperates traditionally with its international partners such as the European Bank for Reconstruction and Development and the World Bank. It uses their loan arrangement suitable for investments in the network upgrading and improvement and reconstruction of the existent projects. In 2008 AD MEPSO put into operation few, the earlier specified, crucial projects. In 2009 the most important investments in the list are the following:
  
  
  Financing by EBRD loans
  
  In the beginning of March three agreements were signed with ABB Ltd, Croatian with regard to delivery of equipment for rehabilitation of the part of primary equipment, protection and control in 400/1110 kV substations, Skopje 4, Dubrovo and Bitola 2. The agreements cover the supply of 8 kV breakers, replacement of the existing protection transformer systems and terminal bay in SS Dubrovo and SS Skopje 4 including replacement of the controlling 400 kV devices in the SS Skopje 4 and Dubrovo. To replace the old breakers with new ones, Euro 810 thousand have been planned by which AD MEPSO may be proud to have breakers of the new generation with all its substations over the country. Euro 360 thousand have been intended to the protection devices. Euro 256 000 have been intended for the new control devices, distributed by bays in SS Dubrovo and SS Skopje 4.
  
  The component 3 is in progress from the proceeds of the EBRD loan, which provides realization of protection and control in two significant substations such as SS Skopje 1 220/110 kV and SS Bitola 2
  
  The rehabilitation will be completed through the supply of new control systems and replacement of the existing systems for the purpose of protecting with systems of the new generation (so called numeric protection)
  
  Project status: the Tender Documentation has been produced by the technical departments in MEPSO in charge of protection and control and is submitted to EBRD for approval. The next step after being approved will be the bidding notice and collection of bids from interested bidders. The bid evaluation will follow and the selection of the most satisfactory bidders with regard to two projects and signing of contracts for project execution.
  
  
  This investment schedules:
  - Euro 1.7 million are intended for SS Skopje 1 out of which 90% from EBRD loan and 10% from AD MEPSO own resources;
  
  - Euro 2,1 million are scheduled for SS Bitola 2 rehabilitation of which 96% are proceeds from EBRD loan and 4% local AD MEPSO resource.
  
  These investments shall provide increase in the system reliability and security and more efficient control is reached and cut the operating costs to these two substations being extremely important to our system.
  
  
  Financing by the World Bank loans
  
  Signing of a Consultancy Services Contract is about with the Slovenian IBE Engineering company. The Contract value is Euro 92.000, and the service scope provides for preparation of Bidding Documentation for the needs of novation from the distribution into the joint substations which AD MEPSO shares with AD EVN Macedonia. The Bidding Documentation is scheduled to be produced in three months. Upon the World Bank approval of that documentation the international bidding notice shall follow for the supply of equipment in terms of protection, electricity control and supply. The equipment cost planned to be bought and installed in approximately 20 substations is Euro 4,3 million.
  
  Activities are in progress to prepare the investment technical documentation required for implementation of additional 2 projects financed by the existing World Bank loan. They are double circuit 110 kV OHTL SS Bitola 3 – SS Bitola 4, 110 kV OHTL SS Skopje 1 – SS Tetovo 1. These activities are scheduled to be completed by the end of 2009, and the construction to start at the beginning of 2010.
  
  The biggest investment activity of AD MEPSO which should start this year is the construction of a new 400 kV interconnection with the electric power system of R. Serbia via the construction of 400 kV OHTL SS Stip 400/110 kV – Macedonian – Serbian border. This transmission capacity shall be 70 km long. The cost estimate of this investment is Euro 14 million out of which Euro 11 million shall be financed by a new loan to be extended by the World Bank for which the Government of the Republic of Macedonia has provided an approval and a state guarantee related to this project.
  
  The corridor from Stip to Macedonian – Serbian border has been fully established so far, and obtained Conditions to plan the space (which shall be later use to prepare the urban design for the construction of 400 kV interconnection), from the Ministry of Environment and Spatial Planning and/or the Agency for Spatial Planning. A decision has been obtained for spatial planning.
  The design was presented at a technical workshop organized by the Energy Community Secretariat ,,Joining of Finances and Projects” held in Wien on 9 April 2009.