Market Opportunities in Energy and Infrastructure Q1/2016

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Market Opportunities in Energy and Infrastructure Q1/2016 Market Opportunities in Energy and Infrastructure Q1/2016 Legend Hot /// Warm /// Cold /// /// /// Wind Power Projects Belgrade Metro Project 01 Several large scale wind power projects The construction of a rapid transit system in are in various stages of development. Belgrade is anticipated. The Mayor of Serbia These include Continental Wind’s Čibuk Belgrade has stated that the project will project, Electrawinds Alibunar project, begin by 2016 and that the French may MK Group/ Fintel’s Košava project and support the building and financing of the /// Windvision’s Alibunar 1. The financing project. The Belgrade Metro, which has been for these projects has been largely private in the making since the 1950’s, has been Belgrade – Budapest Railway sector with support from international repeatedly delayed, mostly due to lack of It is anticipated that 528 km of railroad will financial institutions and have involved funding. The city has had talks with be built over the next three years in Serbia. negotiations with the State and grid representatives from Assignia The majority of track will be reconstructed operator. Infraestructuras, a Spanish company with a and modernised and 80 km is planned to be portfolio of underground garages across the newly constructed. As part of this initiative, globe. the ministry has announced an interstate /// project between Serbia, Hungary and China for the modernisation of the existing section Belgrade Airport Terminal /// between Belgrade and Budapest which will An estimated USD 1 billion will be be revitalised to support speeds of up to 300 invested in building a third terminal to be Ibarske Hydro Power Plant km/h. The project will be implemented by used exclusively by Air Serbia and Ibarske Hydroelektrane doo, a joint Chinese financiers and contractors. Terminal 1 will undergo reconstruction company formed by JP Elektroprivreda and a second runway will be built in, with Srbije (EPS) and Italian company Seci a cargo centre and hotel nearby. The Energy S.p.A., is developing a system of interested parties include Aratbec Holding, 10 hydropower plants on the Ibar River in /// the Persian Gulf’s largest construction Serbia. The total capacity of the system is Nikola Tesla B3 Thermal Power Plant company, Greek based Copelouzos Group, approximately 120 MW. Currently the A third unit is planned to be added to the Fraport, who has recently invested in the project is in pre-construction phase. Once Nikola Tesla thermal power plant (Nikola Ljubljana Airport, and the EBRD. completed, the electricity generated by the Tesla B3 TPP) with 800 MW of installed hydropower plants should be transmitted to capacity. The investment is estimated at Italy through an undersea cable from EUR 1.1 billion and should be completed by /// Montenegro to Italy and should benefit from 2020. There are several interested investors, the Italian feed-in tariff in the amount of Great Morava River Hydro Power Plants EUR 150 per MWh. among which are companies from Japan and Five hydro power plants, with individual China. capacities of between 28.9MW and 30.6MW, are planned to be built on the /// Great Morava River in a cooperative 02 initiative between EPS, the state-owned Parking Service electric utility power company, and RWE, The City of Belgrade will be looking to a German electric utilities company. The Bosnia & use PPP for their financing model for the project is scheduled to commence in 2016 construction of four underground garages. and to be completed by 2021. The Hydro JKP Parking Service, the public utility Power Plants Ibarske project plans Herzegovina for parking administration in Serbia, will another 10 Hydro Power Plants, with commence construction of new garages individual capacities of between 8.5MW /// in association with the City of Belgrade. and 12MW. The project is a cooperative Fourteen locations were analysed and four initiative between EPS and Seci Energia Hydro Power Plant Ustikolina were identified to be of strategic importance. S.p.A. and should be finalised in 2021. Its JP Elektroprivreda BiH, the state-owned electricity company, is looking to develop a estimated value is EUR 300 million. 60 MW run-of-river hydro power project on the Drina River in the municipalities of Ustikolina and Goražde in the Federation of Bosnia & Herzegovina. The total investment sought is EUR 139 million. Selection of the EPC contractor will be done through an international open tender procedure. 2 /// /// Wind Power Plant Ivovik Gacko Thermal Power Plant 03 Wind power plant Ivovik is located in south In September 2015 the Minister of central Bosnia & Herzegovina, in close Industry, Energy and Mining of the proximity to the towns of Livno and Republic of Srpska in Bosnia & Macedonia Tomislavgrad. This part of Herzegovina Herzegovina entered into a Memorandum boasts a moderate climate with average of Understanding with representatives from wind speeds of 7.9 m/s at 132 m hub height. the Chinese company Dongfang Electric /// Plans for the Ivovik wind farm specify Corporation Limited to build a new 350 anticipate the construction of 21 turbines MW thermal power plant in Gacko, near New Highway Priština – Skopje with a total generating capacity of 84 MW. the Bosnian border with Croatia and From 2018, Macedonia and Kosovo will be All necessary licenses and permits have Montenegro, using modern, EU emissions connected by a new highway. The section of been obtained for the commencement of control technology. The contractor will be the highway located on Kosovo’s territory construction. The owner of Ivovik is Elektroprivreda RS. A feasibility study for was opened in November 2015 , a project currently seeking a strategic partner to the project is being completed which is worth EUR 600 million, and constructed by finance the construction of the wind farm. the American-Turkish consortium Bechtel- likely to be followed by a tender for an Austrian firm IJEX GmBH, Graz has been Enka. As for the part that has to be EPC contractor, which is expected sometime in appointed as advisor in negotiating the sale constructed in Macedonia (Skopje- Blace 2016. of the project or the formation of a strategic with distance of 12km), the Macedonian partnership. Government is preparing the documentation for a public tender for construction of this second portion of the highway, worth EUR 69 /// /// million. The Upper Drina – Hydro Power Projects Kakanj Thermal Power Plant – Unit 8 The Power Utility of the Republic of Srpska JP Elektroprivreda BiH, the government- is looking for investors in four hydro power owned electricity company, is looking to č /// projects (HPP Buk Bijela, HPP Fo a, replace certain units on the existing site of HPP Paunci and HPP Donja Sutjeska) all Gas Pipeline the TPP Kakanj to improve the production located in the upper Drina river basin with With a total investment of EUR 148 million, capacities of the plant. The investment a total installed capacity of 224.96 MW the Government of Macedonia is planning to sought is approximately EUR 626.3 million, and required investment of approximately complete a gas pipeline in the capital of which includes construction of Unit 8 and EUR 580 million. The background studies Skopje and in Eastern and Western the development of the associated coalmine. and design documentation for these Macedonia. The tenders for construction, The project is to be implemented through a projects have already been prepared. management and maintenance of the partnership model, with or without equity These hydro power projects have been distribution system of natural gas in Eastern contribution. The partner is to be selected identified as Projects of Energy through an international open tender and Western Macedonia worth approx. EUR Community Interest in the area of procedure. 90 million will be announced in the near electricity generation. future. Also, the Government is looking for solutions regarding connections to major gas pipelines, such as the Trans Adriatic Pipeline /// /// and interconnectors with neighbouring countries. Green Power Plant Banja Luka The Middle Drina – Hydro This renewable energy project, located in Power Projects the vicinity of a regional dumpsite in The Power Utility of the Republic of Srpska Ramidi, involves the construction of a /// is looking for investors in three hydro power biomass cogeneration plant, and a hall with projects (HPP Roga čića, HPP Tegare and a total roof surface of 30,000 m² with solar Highway Construction HPP Dubravica) all located in the middle panels on the roof. Green Power Plant is The Macedonian Government and EBRD Drina river basin with a total installed seeking joint venture cooperation to have signed an agreement for the capacity of 321.45 MW and a required construct the facility, amounting to EUR 3 construction of highways in Macedonia. investment of approximately 870 million. million for the solar power installation and The proposed project, which has a total The background studies and design EUR 5 million for the construction of the estimated cost of EUR 78 million out of documentation for these projects have been biomass cogeneration plant. which the Bank will finance up to EUR prepared. These hydro power projects have 64 million. The aim is to improve the also been identified as Projects of Energy road infrastructure in the Eastern and Community Interest in the area of electricity South Eastern part of the country. It has been generation. decided upon the construction of a 39 km long highway part connecting the cities of Stip and Radovis. /// /// /// Corridor VIII – Highway 48 Small Hydro Power Plants The Macedonian Ministry of Transport is Strengthening the public–private The Macedonian Ministry of Environment preparing a tender process in May for a partnership in Macedonia and Physical Planning have announced a concession partner for the construction, The Central Financing and Contracting public call for a concession on water operation and maintenance of the Western Department of the Ministry of Finance is utilisation for electricity production by small part of the Corridor 8 Highway, more precisely to issue a tender that would strengthen the HPP via DBOT (Design, Build, Operate, and for the highway Gostivar- Kicevo.
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