World Bank approves loan for power-project in Macedonia
The World Bank approved today a DM 61.5 million ($ 35 mm) Power System Improvement Project Loan for Macedonia to
improve its power system.
"This project will significantly increase the reliability and efficiency of Macedonia's power generation, and will
enable the country to better meet its peak electricity demands on its own," said James Moose, Task Team Leader for
the project.
The project consists of the following three components:
- Hydropower Plant Rehabilitation ($ 31.6 mm). The six largest hydro-power plants in Macedonia, which represent 91 %
of the country's hydro-power capacity, will be rehabilitated. The project will replace worn out or obsolete equipment
that is inefficient and for which no spare parts are available. The World Bank will finance equipment and technical
assistance as needed, as well as some software and measuring equipment for the dam safety unit in Elektrostopanstvo
na Makedonija (ESM), the state electric company. The rehabilitation of these plants has recently begun with a Swiss
Government grant of 5 mm Swiss Francs for equipment in the Mavrovo Cascade.
- Energy Management System ($ 8.7 mm). The Energy Management System for the electric company, including controls, the
dispatch centre, and communications, will be improved. This component has three inter-related parts: first, the data
acquisition and controls for the Power System will be modernised; second, the dispatch centre, hardware and software
will be completed; third, the ESM's telecommunications system will be improved.
- Distribution ($ 4.3 mm). This component will begin the rehabilitation of the Macedonian distribution system. It
consists mostly of distribution transformers, as many of the current transformers are currently overloaded.
The loan is repayable in 20 years including a 5-year grace period at the standard interest rate for a LIBOR-based DM
single currency loan. Since Macedonia joined the World Bank in 1993, Bank commitments total approximately $ 375 mm
for 12 projects.
