MEPSO: FYR Macedonia-Albania Transmission Phase I

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 46274

Status Repaying

Location

North Macedonia

Business Sector

Energy

Notice Type

Public

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 46274

Status Repaying

Location

Business Sector

Energy

Notice Type

Public

Environmental Category

Approval Date

25 Nov 2015

Disclosure date

23 Sep 2015

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Macedonian

Project Description

The EBRD is extending a senior corporate loan of up to EUR 37 million to MEPSO, the Macedonian electricity transmission company, to fund the Macedonian component of the FYR Macedonia-Albania transmission line.

The project entails (i) the construction of electricity transmission infrastructure from Bitola to the Albanian border, with a substation at Ohrid and (ii) the introduction of Smart Grid components at MEPSO.

Project Objectives

By providing FYR Macedonia with the first interconnection to Albania, the project will provide the missing link in the initiative to establish an East - West electricity transmission corridor between Bulgaria, FYR Macedonia, Albania, Montenegro and Italy. The section between Bulgaria and FYR Macedonia (OpID 27768) has been completed. Albania and Montenegro are connected by a new 400kV line and the construction of a submarine cable between Italy and Montenegro is underway, supported in Montenegro by the Lastva - Plejvlja Transmission Line Project (OPID 42768).

Transition Impact

The project is a key link for the integration of Europe's electricity markets' integration. It is an important component of the transmission connection between Bulgaria and Albania as well as a longer corridor from Bulgaria to Italy via an undersea cable between Montenegro and Italy, currently under construction. This sustained market expansion will improve regional energy security, efficiency and promote integration and market competition.

The Bank will engage with MEPSO to promote the commercialisation of the company via corporate governance improvements, and in particular by assisting MEPSO in developing its planning and project management capabilities. Focus will also be given to building expertise related to the development of regional energy markets.

The expected transition impact rating is ‘good’.

Client Information

MEPSO AD is the Macedonian transmission system operator, 100% state-owned and established as an independent transmission system operator in 2005.

EBRD Finance Summary

EUR 37,000,000.00

The FYR Macedonia-Albania transmission line is one of the EU's priority projects which is expected to receive an investment grant from the IPA 2015 programming exercise amounting to EUR 12 million. This includes EUR 6 million for MEPSO's equity commitment and EUR 3 million to finance the Smart Grid components.

Total Project Cost

EUR 49,000,000.00

Environmental and Social Summary

Categorised A (ESP 2014). An Environmental and Social Impact Assessment (ESIA) has been undertaken for the project, involving the construction of a new 400kV overhead power transmission line (OHL) across the South Western Region of Macedonia, from Bitola and connecting to the Albanian border. A fit for purpose ESIA disclosure package, including the existing ESIA, and newly prepared supplementary documents (Non-Technical Summary, Land Acquisition and Compensation
Framework, and Stakeholder Engagement Plan), has been disclosed by MEPSO and EBRD on 23 July 2015.

An ESIA disclosure package is available for this project.

An independent consultant has been retained by the Bank to undertake an Environmental and Social Due Diligence (ESDD) of the Project. The ESDD confirmed that the Project is structured to comply with the relevant EBRD Performance Requirements (PRs) and that the Company has the institutional capacity to implement the Bank's PRs. The ESDD also confirmed that the Project is designed to comply with National legislation and relevant EU directives as well as good industry practice. Overall the ESIA and the Bank's ESDD have confirmed that the environmental and social impacts will be localised and limited, and are appropriately mitigated through the implementation of the Environmental and Social Management Plan (ESMP) and Environmental and Social Action Plan (ESAP).

The Project has been under development for some time, with an initial EU-funded ESIA undertaken in January 2013, and ESIA-related public consultation sessions conducted in April and May 2014. The ESIA disclosure package has been updated to address of changes in the project design and local legislation as well as the Bank's 2014 ESP and PRs. It should be noted that the project is currently at feasibility stage and detailed engineering design has not yet commenced. Therefore, the proposed routing of the transmission line is currently a corridor which is set at 500 metres wide. At the detailed design stage, a preferential specific routing will be selected, as well as specific tower locations, taking account of the public comments received during the current ESIA disclosure. An updated Non-Technical Summary and specific mitigation measures will be prepared and additional public disclosure and consultations will be carried out once the final specific routing is completed. This will include proactive consultation with affected parties to inform the development of the detailed Land Acquisition and Compensation Plan concurrently with the technical work undertaken to specify the routing.

The original ESIA considers three alternative locations for the development of the new substation in the Ohrid Region. The ESIA also considers the positive and negative aspects of all three potential locations and identifies a single site as the preferred location (location 3 North West from the Livoista Village). As some sections of the OHL will be located in the UNESCO Ohrid Natural and Cultural Heritage Area, the Project will develop a Cultural Heritage Management Plan (CHMP). The CHMP will contain information on cultural heritage locations including those mapped from the UNESCO designation so that the detailed design can take account of the need to avoid these locations, and ensure adequate stakeholder engagement with heritage specialists, such as UNESCO and the Museum in Ohrid town.

The Bank will monitor the implementation of the Project inclusive of a review of the final designs to ensure these are compliant with the agreed ESAP and appropriate additional public consultations are undertaken in accordance with the agreed Stakeholder Engagement Plan (SEP).

Update March 2018
The Project is under development and the Company is implementing the agreed ESAP. No material issues or non-compliance issues have been identified or reported. The Bank undertook a monitoring mission at end of 2017 to address concerns regarding biodiversity assessments. This included a meeting with stakeholders to address concerns and agree an action plan. The Bank will continue to monitor the Project implementation

Technical cooperation

WBIF- EUR 0.65m TC to fund the Feasability Study and ESIA for Elbasan (AL) - Bitola (MK) 400 kV Transmmission Line, completed in January 2013.
WBIF- EUR 0.9m TC to fund the preparation of the main design of the Project, on going.

Company Contact Information

Jordan Angelovski, M.Sc.Eng
jordan.angelovski@mepso.com.mk
+389 (0) 23149046
+389 (0) 23111160
www.mepso.com.mk
Maksim Gorki 4, 1000, Skopje, FYR Macedonia
Business opportunities

Transition impact

ETI Score:60

PSD last updated

28 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

Project ID 46274

Status Repaying

Location

North Macedonia

Business Sector

Energy

Environmental Category

Disclosure date

23 Jul 2015

Project description

EBRD will provide a senior corporate loan of up to EUR 40 million to MEPSO, the national electricity transmission company, to fund the Macedonian component of the Macedonian-Albania Transmission line. The Macedonian Transmission System Operator AD MEPSO (“MEPSO”, “Company” or “Borrower”) is the 100% state-owned electricity transmission system operator of FYR Macedonia (“Country”), and was established as an independent transmission system operator (“TSO”) in 2005.

By providing the Macedonian side of the first interconnection between FYR Macedonia and Albania, the Project provides the missing link in the initiative to establish an East – West electricity transmission corridor between Bulgaria, FYR Macedonia, Albania, Montenegro and Italy. The section between Bulgaria and FYR Macedonia (OpID 27768) has been completed. Albania and Montenegro are connected through a new 400kV line and the construction of the submarine cable between Italy and Montenegro is underway, supported in Montenegro through the Lastva – Plejvlja Transmission Line Project (OPID 42768).

There is a Project Summary Document available for this project

ESIA disclosure package

Non-Technical Summary (NTS) of the CCGT: Macedonian | English
Stakeholder Engagement Plan (SEP) of the CCGT: Macedonian | English
Environmental and Social Impact Assessment (ESIA) : Macedonian | English
Land Acquisition and Compensation Framework: Macedonian | English
Environmental and Social Action Plan (ESAP): Macedonian | English

Full ESIA availability

Full ESIA documentation is available locally at:

EBRD, Skopje Resident Office
Soravia Centre Skopje, 7th floor,
FiliFilip II Makedonski no. 3,

1000 Skopje, FYR Macedonia. Tel: +389 2 3297 800. Contact
Francesco Corbo: email corbof@ebrd.com
EBRD, London; One Exchange Square; London, EC2A 2JN; United Kingdom; Tel: +44 207 338 6000
AD MEPSO
Maksim Gorki 4, 1000 Skopje, Republic of Macedonia
Contact Jordan Angelovski, M.Sc.Eng.
Head International Cooperation and International Financial Institutions. Phone/тел: +389 (0)2 31 49 046
e-mail: jordan.angelovski@mepso.com.mk

The ESIA package and Executive Summary will also be released for public review by the project sponsor on its website:

English | Macedonian

Enquiries

Jordan Angelovski, M.Sc.Eng.
Head International Cooperation and International Financial Institutions

AD MEPSO
Maksim Gorki 4, 1000 Skopje, Republic of Macedonia
Phone/тел: +389 (0)2 31 49 046
Fax/факс: +389 (0)2 31 11 160
e-mail: jordan.angelovski@mepso.com.mk

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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MEPSO: FYR Macedonia-Albania Transmission Phase I

Project timeline

Translated version of this PSD: Macedonian

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Environmental and Social Summary

Technical cooperation

Company Contact Information

Transition impact

PSD last updated

Business opportunities

General enquiries

Public Information Policy (PIP)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries