“Macedonian Power Plants” borrowed EUR 30 million from Stopanska Banka AD Skopje Friday, intended for the project for modernization of 3 thermal units in REK Bitola. ELEM participates with own funds in the modernization of REK Bitola in the amount of EUR 25.9 million, to commence in July and last for three years.
 
Credit repayment period is 14 years, including three-year grace period and variable interest rate (EURLIBOR plus fixed spread), which is 5.16% at the moment.
 
– Modernization of REK Bitola is a significant project that would provide for increased security and stability of the energy and electricity system and electricity generation. It is the biggest investment in thermal power plants Bitola since 1988 when they were put in operation, Vice Prime Minister and Minister of Finance, Zoran Stavreski, said, signing the agreement on behalf of the Government to guarantee the credit. ELEM General Manager, Vlatko Cingovski, and Stopanska Banka CEO, Gligor Bisev, also signed the agreement.
 
Financing important projects, such as REK Bitola modernization, as Stavreski said, reflects both quality and stability of Stopanska Banka and of the banking sector in general.
 
According to Vice Prime Minister Stavreski, Stopanska Banka approved the credit under exceptionally favourable conditions and, as he said, the Bank remained dedicated, in complex circumstances, to development of energy sector in the country.
 
– Capital of the Bank and the access to funds on international financial markets enables us to support each profitable project in Macedonia that meets banking standards, Stopanska Banka CEO underlined, saying that the credit was approved under exceptionally favourable conditions.
 
Bisev emphasized that he believes this year Stopanska Banka will finance similar projects in the field of infrastructure, as well as projects of companies in the production sector, and projects of small-sized and flexible firms.
 
According to ELEM General Manager, REK Bitola modernization is to extend the 28-year life cycle of the equipment in the thee units.
 
– Modernization will provide for the original supplier of equipment – Russian company “Silovie Masini” to fully replace the main spare parts of the three units, all three-pressure turbines, as well as fully modernize and repair the generator, thus extending the life cycle for at least another 20 years, Cingovski said, adding that it would provide for maximum usage of quantities of coal deposits in the Bitola region.
 
– Without additional quantities of coal, after revitalizing the units, we would be able to classify them, in future, as 233 MW, rather than 225 MW as so far. It will provide for 160 GW/h to 200 GW/h additional electricity by using the same quantity of coal, i.e. in addition to increasing the production, this will also contribute to environment protection, Cingovski explained.
 
Revitalization of the units will be carried out in stages. The process will start in July by revitalizing the first unit, which is to be renewed by October this year. Other two units will be revitalized in the next two years, i.e. whole project will be completed in 2012. Revitalization activities, as Cingovski said, would not affect electricity supply to the citizens.
 
– We have prepared electricity supply plan, according to which one unit is to be repaired, while the other two will remain fully operational. We believe it is quite enough to meet the needs of the consumers, ELEM General Manager said.
 
Possible increase of electricity price as a result of the borrowing depends on the Energy Regulatory Commission and, according to the new Price Rulebook, ELEM will submit generation and investment-related costs to the Commission by the end of this year. – In the last 20 years, investments in energy sector in Macedonia were considerably reduced, imposing the need to have new investments as soon as possible, Cingovski said. (MIA)
