The 70-kilometre power line, which will have 168 transmission towers, is of great strategic importance as it will increase power transmission capacities and the reliability of power systems at the regional level, MEPSO said in a statement on its website on Saturday.
It will connect the 410/110 kV substation in Stip, eastern Macedonia, and the substation in the southern Serbian city of Vranje.
Works will be conducted by Sweden's Eltel Networks in partnership with Serbia's Energomontaza.
The interconnection transmission line will be completed around the middle of 2015, the Macedonian government said on Saturday in a separate statement on the project.
($=0.8174 euro)