ESM POWER SUBSTATIONS

The project concerns the construction/replacement of 400 and 110 kV power substations in the country (Skopje 5, Skopje 4, Petrovec, and Dracevo), the construction of ancillary transmission lines and related infrastructure all to be confirmed during appraisal.

The project is integral to a larger restructuring of the power sector in FYR of Macedonia, outlined by the Government, as well as to agreements made to establish a regional electricity market and interconnections in South-eastern Europe by 2005. The objective of the project is to contribute to the reduction in power system losses and bottlenecks, and to allow better use of existing generating capacity by improving operational efficiency.

Following EU standards, the project would not fall under the environmental impact assessment directive. The project is unlikely to impact any nature conservation site. These issues will be reviewed to ensure that each project component has been or will be adequately assessed for compliance with environmental regulations in FYROM and in line with EU standards.

EIB procedures for international procurement would be applied, where applicable. It is intended that the components to be financed by the Bank will be published in the OJEC; some have already been published internationally.