The financing will be extended to the state-owned electricity generation company AD Elektrani na Makedonija (ELEM). Boskov Most, to be built near the town of Debar in the western part of the country, will help ELEM meet Macedonian power demand, which is volatile and characterised by high peaks.
FYR Macedonia relies on electricity imports for almost a quarter of its consumption needs. Over 75% of the country’s generation is currently provided by the ageing lignite-fired Bitola power plant. The construction of the hydropower plant will enable the country to reduce electricity imports as well as cut carbon intensity by an estimated 95,000 tonnes of CO2 annually.
“The construction of the new hydropower plant is a landmark project for FYR Macedonia that will increase the security and stability of the country’s electricity system,” said Nandita Parshad, EBRD Director for Power and Energy. “The EBRD is pleased to support this important project, which will be developed and built in line with the best environmental practices and will contribute to further reforms in the Macedonian energy sector.”
“Boskov Most is the biggest investment of this type in the energy sector in FYR Macedonia in the last decade,” added Zoran Stavreski, Deputy Prime Minister of the Government and the Minister of Finance. “The Government will continue to invest in projects that will contribute towards the improvement of the economic structure, the competitiveness of the national economy, economic growth and more balanced economic development.”
The EBRD loan is complemented by €340,000 in grant financing from the EBRD Shareholder Special Fund for technical and environmental due diligence.
To date the EBRD has invested over €715M in the Macedonian economy through projects in the corporate, financial, infrastructure and energy sectors. The EBRD funds have attracted additional investments worth €700M from other sources.