📋 Tender Overview
Location: North Macedonia
Project number: 54625
Business sector: Energy
Notice type: State
Environmental category: B
EBRD Finance Summary: EUR 26,400,000.00
Total Project Cost: EUR 34,700,000.00
Project Description
The EBRD is considering providing a senior unsecured loan of up to € 26.4 million to the Macedonian Transmission System Operator AD ("MEPSO", or the "Company"). The proceeds of the EBRD financing will be used to finance the construction of (i) 400/110kV substation near Miletkovo, (ii) new 110kv OHTL connection and rehabilitation of the existing 110kV overhead transmission lines and substations in and between Miletkovo, Valando and Strumica, and (iii) develop a training center for high voltage grid operators and other sectoral specialists (the "Project"). The Project will also benefit from (i) € 7.8 million investment grant from the Western Balkans Investment Fund (WBIF) and € 0.5 million grant from the Climate Investment Fund Accelerating Coal Transition ("CIF ACT"). The total project cost will be € 34.7 million.
Project Objectives
Overall, the Project will enable MEPSO to strengthen further the transmission network in the southeast region of North Macedonia. This development is pivotal for integrating a considerable array of Renewable Energy ("RE") power plants with the TSO system. The realization of this project is also projected to significantly reduce energy losses, with an estimated reduction of approximately 14.5 GWh annually. Additionally, it will develop a training centre for high voltage grid operators in the coal-affected southwest region targeting not only MEPSO grid operators but also other sectoral workers affected by the green energy transition.
Transition Impact
ETI score: 72
The Project's transition impact stems from Green and Inclusive qualities. The operation will deliver climate energy efficiency benefits by targeting a decrease in electricity transmission losses and will allow the potential connection of up to 1,170 MW of additional renewable energy sources in the country, which currently are not possible due to limited capacity of the local transmission grid. The Project will promote human capital development by supporting MEPSO in setting up a training centre in the Southwest region targeting not only its grid operators but also other sectoral workers affected by the green energy transition.
