Transbalkan Corridor JSC “Elektromreža Srbije”

09.10.2019 TRANSBALKAN CORRIDOR - OVERVIEW -

 Total length 321 km

 Total investment: 157 MEUR

Novi Sad  Section I – Construction completed from Serbian side and Se ction I energized in December 2017. Pancevo Romania  Section II – Construction Work is expected to start in the Obrenovac first quarter of 2020.

 Section III – Work on technical documentation (Design for Building Permit and Project execution plan) started in May Bajina Basta Se ction II 2019. 60 km Bosnia and €40.8 M  Herzegovina Section IV – Kick off meeting for work on technical 84 km documentation (Design for Building Permit and Project Se ction IV execution plan) was held on 27.09.2019.

 Techno-economical and financial analyses for Section III and Montenegro Pristina IV will be included in the ToR.

2 TRANSBALKAN CORRIDOR SECTION II: OHL 400 kV Kragujevac – Kraljevo STATUS as of September 2019

 The total investment value of Section II is 29.6 MEUR (17 MEUR for the transmission line and 12.6 MEUR for works in S/s Kragujevac 2 and for upgrade of voltage level in S/s Kraljevo 3)

 Negotiation about WBIF grant (up to 6.468 MEUR) and KfW loan (up to 15 MEUR) took place in 2016. The contract was signed in March 2017. Up to 8 MEUR will be financed from the own funds of JSC EMS

 All required building permits have been provided for construction of Section II

 Selection process for the Consultant for realisation of this Project was completed

 Negotiations with the selected Consultant finished

 Draft contract was approved by KfW and the final contract for consultant services was signed

 Prequalification process for selection of the Contractor was completed according to the KfW procedure

 Tender documentation in the qualification procedure was submitted to the qualified bidders. The deadline for submission of bids in the qualification procedure is October 2019

 The works on construction of Section II are expected to start in the first half of 2020 and the commissioning will be made by the end of 2021

3 TRANSBALKAN CORRIDOR SECTION III: OHL 2x400 kV Obrenovac – Bajina Basta STATUS as of September 2019

 JSC EMS adapted the existing technical documentation (Conceptual Solution, Feasibility Study with a Conceptual Design and Environmental Impact Assessment Study) to the domestic legislative in December 2017, for which 0.25 MEUR was granted by KfW.

 In 2018, the Government of R. of made a decision on the development of the Strategic Environmental Impact Assessment and the Spatial Plan of the Special Purpose Area for this OHL. Public procurement was conducted and the Contractor was selected. The public review of the draft spatial plan was completed in August 2019. The adoption of the Plan by the Government of R. Serbia is expected by the end of 2019.

 KfW provided support in obtaining a WBIF grant of 0.8 MEUR for the development of the missing technical documentation (Design for Construction Permit, Design for Construction, Design for two new still lattice towers) for the OHL and Design for Building Permit for the extension of SS Bajina Basta. ToR for the missing technical documentation was developed by the consultant and approved by KfW. A kick off meeting between JSC EMS and the Consultant was held in May 2019 and development of the documentation began. Project Steering Committee meeting was held in mid-August. Main task of the meeting was presentation and approval of Inception Report, harmonization of which is still in progress.

 In November 2018, JSC EMS applied for a WBIF Investment grant for Section III in the amount of 10.71 MEUR (which is 20% of the estimated work and supply costs) and 2.44 MEUR for Technical assistance grant (FIDIC engineer, tender preparation for works and supply, drafting all the studies and reports according to the KfW procedure). Decision on the grant is expected in December 2019.

 In case of the positive answer for the grant application, the following is foreseen by EMS: in Q4 2019 Grant and Loan Agreement signing, in Q1 2021 Services and equipment procurement, contracting of works in Q2 2021, and construction to start in Q4 20214 . TRANSBALKAN CORRIDOR SECTION IV: OHL 400 kV Serbia – Bosnia and Herzegovina – Montenegro STATUS as of September 2019

 Government of the Republic of Serbia adopted (in November 2017) the Spatial plan for the special purpose area, which is the prerequisite for constructing the OHL.

 Pre-feasibility study, Feasibility study, Preliminary design and ESIA were completed in Q1 2015 (financed from a WBIF grant).

 KfW provided support in obtaining a WBIF grant of 0.8 MEUR for the development of the missing technical documentation (Design for Construction Permit and Design for Construction). The Terms of Reference (ToR) will update Feasibility Study for both Section IV and Section III and will also include the renewal of system and market studies for both Section IV and Section III.

 The extension of the ToR was due to the decision of the Government of Montenegro, as well as the Montenegrin and Italian Transmission System Operators to construct the submarine cable in two phases, instead of at once as originally envisaged. This fact altered the presumptions upon which the feasibility study for Section 4 was done in 2015. The ToR was completed and was approved by all impacted TSOs, as well as by KfW. Due to the increased volume of work, additional EUR 300,000 was asked for and approved by WBIF in June 2019 (total donation is now EUR 1,1 million).

 Kick off meeting for preparation of the technical documentation was held on 27. September 2019. Duration of the Study is two years (by 1.10.2021). System study, market study and CBA update is foreseen to finish within 45 weeks (August 2020)

 A decision about the share of loan, donation and JSC EMS own funds in the total value of this investment, as well as on the project commencement date, will be made after a thorough techno-economical and financial analyses are

conducted. 5 North CSE CORRIDOR SS 400/110 kV Belgrade West, OHL 400 kV in South Banat and OHL 400 kV Serbia-Romania STATUS as of September 2019  North Continental South East (CSE) Corridor project consists of the following subprojects:  SS 400/110 kV Belgrade West (2x300 MVA)  OHL 400 kV SS Belgrade West – WPP Cibuk (60 km 400kV and 20 km 110 kV lines)  Upgrade of existing OHL 400 kV Serbia (HPP Djerdap 1) – Romania (Portile de Fier) to double circuit OHL (2 km)

 Purpose:  enable energy evacuation from new generation plants (future TPP B3 (350 MW) and wind farms in the area of South Banat amounting up to 1.4 GW)  Increase NTC for about 500 MW (facilitate energy transits from the Romanian power system)  Increase energy of supply in the region of Belgrade

 In 2019, JSC EMS applied for and received a grant of 0,6 MEUR within the 21st round of WBIF technical assistance for the preparation of a Prefeasibility Study and ESIA for the North CSE Corridor project.

 Studies should define and evaluate different variants of the project, such as potential locations of the future substation Belgrade West, as well as the routes and endpoints of the corresponding transmission lines. The Prefeasibility study will deliver the optimal variant from the power system operation point of view, as well as the feasible routes, which will then be further elaborated through the feasibility study and the environmental impact assessment of the project.

 Urgent to start with preparation of ToR for Prefeasibility Study and ESIA through the WBIF grant

 The estimated value of the whole project North CSE Corridor is around 52 MEUR.

6 THANK YOU!