Macedonian Power Plants (ELEM) will build the main coal conveyor belt system from Brod-Gneotino surface mine to Suvodol surface mine with its own funds and with a loan from Deutsche Bank. Total investment is in the amount of EUR 18.6 million, EUR 2.6 million out of which as ELEM own funds, and EUR 16 million as a loan from Deutsche Bank, and Loan Agreement was signed Friday. Republic of Macedonia is the Guarantor.
 
This conveyor belt system will provide for a continuous, fast and efficient coal transportation from the haulage ramp at the working trench at the Brod-Gneotino surface mine to the drop point in the coal system at Suvodol mine. A 10-kilometer route has been chosen.
 
– Realization of this project will finalize the process of production and delivery of coal from the new surface mine to Suvodol mine. Coal from the existing Suvodol mine and from the deep underlying seam is expected to extend the life cycle of Thermal Power Plant Bitola for 20 to 25 years,” ELEM General Manager, Vlatko Cingoski, said at the signing ceremony.
 
He said that opening of Brod-Gneotino surface mine was enabled by investments amounting to EUR 94 million. ELEM has invested over EUR 65.5 million, EUR 42.8 million out of which as ELEM own funds and EUR 22.7 million as credit funds. First quantities of coal from the new surface mine were excavated in 2010, and around 600,000 tones of coal have been transported to Thermal Power Plant Bitola through a discontinued transport so far.
 
According to Vice Prime Minister and Minister of Finance, Zoran Stavreski, who signed the Guarantee Agreement between the Government and Deutsche Bank, the project is of especial significance for the stability of the energy and electricity system in the country, since Thermal Power Plant Bitola generates 70% of electricity in the country.
 
– Every agreement for investments is a good thing, while investing in energy is an excellent thing, Finance Minister said after signing the Agreement.
 
The Loan, as he said, is extended under exceptionally favourable conditions – 17 semi-annual installments, with an interest of 2.9% at the moment.
 
– This Loan approved to ELEM is a result of five-year negotiations, Deutsche Bank Vice President, Michael Zopf, said, pointing out that the Bank is focusing on greater presence in Central and Eastern Europe region. This is the first loan Deutsche Bank extends to the Republic of Macedonia and, as Zopf underlined, confirming their strives and wish to resume the cooperation.
 
Equipment for the main coal conveyor belt system will be installed in the coming months. Agreement for procurement and installation is signed with ThyssenKrupp German company, which gave the most favourable tender at international tender procedure last year. (MIA)
