Skopje, 25th July 2013 (MIA) – Two ELEM Macedonian Power Plants projects will be realized with German support in the amount of EUR 35 million. EUR 15 million will be used for completion of the construction of “Wind Park Bogdanci” Project, while the remaining EUR 20 million will be used for realization of “Uprate of HPP Spilje 2”.


This was provided for with today’s signing of the Government Agreement between the Republic of Macedonia and Federal Republic of Germany on Financial Cooperation for 2012 realization of the Energy Efficiency and Renewable Energies Phase III. Government Agreement was signed by Vide Prime Minister and Minister of Finance, Zoran Stavreski, and German Ambassador, Gudrun Steinacker. KfW and AD ELEM also signed the Loan Agreement on Thursday.


Loan in the amount of EUR 35 million is with 12-year repayment period, three-year grace period and 2.5% fixed interest rate.


– Today’s signing of the Government Agreement provides for financial resources necessary for realization of significant projects in the field of renewable energy sources (RES), and we manage to reach our goal, 20% of the Macedonian electricity generation to be from RES by 2020 inclusive, Vice Prime Minister and Minister of Finance Stavreski said after the signing ceremony.


He underlined that EUR 15 million intended for “Wind Park Bogdanci” Project provide for its realization, while EUR 20 million will be used for increasing the capacity and production of HPP Spilje 2.


– Previously, KfW provided funds for realization of “Wind Park Bogdanci” Project. The financial support, together with EUR 15 million, will amount to EUR 48 million, while EUR 7.5 million will be own funds of AD ELEM. Thus, total funds amount to EUR 55.5 million intended for completion of the Project, which we expect to be completed by the end of this year, Stavreski said.


He pointed out that Macedonia had also previously established excellent cooperation with KfW and Federal Republic of Germany as regards support to energy production from RES, by supporting the revitalization of six HPPs, as well as other projects, such as irrigation of South Vardar Valley and construction of water supply and sewerage in the municipalities.


German Ambassador Steinacker said she hoped cooperation between Macedonia and Germany would not stop with the realization of the two projects.


– I believe these two ELEM projects are just the beginning of the further cooperation in the energy sector between our two countries, Steinacker said. KfW Office Director for Macedonia and Kosovo, Ms. Esther Gravenkötter, said the Bank invested EUR 270 million in the past period.


– We would like to support Macedonia on its way to the EU and towards a low emission energy production. With “Wind Park Bogdanci”, in less than 2 years, Macedonia will be able to supply around 25,000 households with clean energy from wind, Gravenkötter said.


AD ELEM CEO, Dejan Boskovski, said today’s signing confirmed the financial framework for the construction of “Wind Park Bogdanci”, the first facility to generate electricity from wind in Macedonia.


– This Project, amounting to EUR 55.5 million, is expected to generate around 100 GWh electricity annually, which is sufficient to supply around 60,000 households in the Republic of Macedonia. At the same time, it will provide for increase of the installed capacity of AD ELEM by 36.8 MW, Boskovski said. He underlined that “Siemens” company from Denmark had already started delivering the wind turbines.


– At the moment, wind turbines are in Thessaloniki and, according to the time schedule, it is expected for their on-site installation to commence at the end of next month. If time schedule is on track, we expect for the Wind Park to be connected to the energy-electricity system in Macedonia by the end of the year, Boskovski said.


He underlined that increase of HPP Spilje 2 installed capacity by 70 MW would also contribute to increase of RSE electricity generation.


In the past year, AD ELEM completed all necessary international tender procedures for procurement of equipment and selection of contractors for the “Wind Park Bogdanci” Project, starting from construction of the necessary infrastructure to contractors for the wind power plants. The company signed contract with Siemens Wind from Denmark, in consortium with Siemens AC from Greece, as regards delivery, transportation, installation, commissioning and maintenance of sixteen wind turbines for “Wind Park Bogdanci” Project.


At the moment, works have already been undertaken for construction of the necessary infrastructure and accompanying facilities for the Wind Park on the basis of a contract with “Terna Siemens” consortium for the construction of road infrastructure, connection transmission line, power house building and 20/100 KW electricity transformation station.


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