Macedonian Electricity Transmission Company MEPSO To Invest 49.96 Mln Euro in 2008

"The largest percentage of the investment, some 84.2%, will be spent on the development of new network, for revitalization of existing capacities some 8.6% will be spent and the rest will be spent on development of the company structure," MEPSO said in a statement posted on its website.

The biggest share of the investment is allocated for the construction of a 400-kilovolt transmission line connecting Stip in Macedonia with Chervena Mogila in Bulgaria.

“The project is of great significance for the electricity stability of Macedonia. The cost of this project is estimated at 34.34 million euro,” MEPSO said.

Out of the total investment planned for 2008, 70.8% or 35.39 million euro are provided from loans from the European Bank for Reconstruction and Development, the European Investment Bank and the World Bank, while the remainder is provided from the company's own sources, MEPSO said.

In 2006 Macedonia split its communist-era power monopoly ESM into generation unit ELEM, distribution unit ESM AD and transmission company MEPSO as part of plans to liberalise its energy market. The southeast European country of two million people sold 90% of ESM to EVN for 225 million euro in March 2006.

Macedonia consumes around eight million MWh of electricity per year and imports some 40% of the energy it needs. The country faces serious challenges in its power infrastructure, including insufficient power links with its neighbors, according to a recently adopted government public investment strategy. Part of that strategy was the full liberalization of the energy market and sending the biggest consumers to the free market.

Macedonia has been an official EU candidate since December 2005, though not having a date for starting negotiations yet.

($=0.6719 euro)