Energynews 2007 IV 2 – New Small Hydro Power

Energy News in Southeast Europe twice in a month № 2007-IV/2 • 1.05.2007

Contact: Bulgaria:

Balkan Energy News offi ce » E.ON, EVN and CEZ to continue requests for electricity price increases www.NEWS.BalkanEnergy.com » Enel informed government about the project for new power plant in [email protected] Maritsa Iztok basin » CEZ to invest 50 million euros in 2007th Subscriptions & info: [email protected] » Miners’ protest in Bobov Dol www.news.balkanenergy.com/request.php » E.ON off ered to deliver electricity +381 64 820 90 31

Croatia: April (2) 2007 issue of Balkan Energy » Increase in quarterly profi t for Janaf NEWS, with limited data. » Government proposed new route for Druzba Adria oil pipeline » New Natural gas market law Request free trial / latest issue on » HERA adopted tariff s for electricity transit [email protected] » Slovenia accused Croatia for breaching the contract for NPP Krsko Greece: » Edison announced construction of new power plant Disclamer: » Enel to win in HTSO’s tender for construction of new power plant » PPC yet to decide on the winner in the tender for Aliveri power plant » New natural gas pipeline toward Turkey to be operational in July All rights reserved by Balkan Energy Solutions Team. No part of this publication may be reproduced, redistributed, or in any other way copied as » Head of PPC to visit Bulgaria to discuss TPP Bobov Dol issue a whole or partially without written permission of Balkan Energy Solu- Macedonia: tions Team. This includes internal distribution. » Pristina banned import of oil from Okta Balkan Energy Solutions Team does not warranty the accuracy of the » Power regulator to determine tariff s for electricity produced in wind published data contained in this document, although Balkan Energy farms Solutions Team did great eff orts to collect the data from the respectable » ELEM canceled the tender for lease of TPP Oslomej and accurate sources. Montenegro: In this issue: » Global Steel won in the tender for sale of Berane coalmine Disclaimer: » Public invitation for oil and gas exploration in Adriatic in autumn Analysis: » Reduction in electricity losses and increase in collection rate of » Overview of transmission capacity allocation status in Balkan region electricity bills » EPCG announced continuation of infrastructure projects News headlines Romania: Region: » Major electricity producers announced investments in 2007th » Establishment of the company for Balkan oil pipeline to start in May » Distrigaz Sud reported 47.5 million euros of profi t in 2006th » Energy summit held in Ohird » Electrica announced new investments Albania: » Investigation on cheap electricity contracts, Hidroelectrica lost 47 million dollars in favor of Energy Holding » 50 small HPPs to be off ered for sale » EBRD acquired shares in E.ON Gaz Romania and E.ON Moldova » Reduced price for electricity import in March » Increase in incomes for Bankers Petroleum Serbia: » EMS submitted transmission system rules for approval Bosnia and Herzegovina: » 12 billion tons of coal reserves in Kosovo province » Energy balance sheet published » EPS claims the long-term contract was not harmful for EPCG » Oil refi nery to start production in August » World Bank approved the start of the project for new power plant » EP HZHB announced three large projects for new power plants » Va Tech and Alstom submitted bids in the tender for HPP Bajina Basta » FERK warned power utilities to obey laws » Signing the contract for payment of clearing debts with Russia, most of » Increase in electricity prices in Herzeg-Bosnia the funds to be invested in energy sector Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007Issue No: 2007-III/1

Balkan Energy NEWS, e-journal

2 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Power exchanges data:

No trades performed by Borzen in the period from 18.4.2007 till 30.4.2007

Greece - Daily Consumption

160000

140000

120000

100000

80000 MWh 60000

40000

20000

16-Apr 17-Apr 18-Apr 19-AprDate 20-Apr 21-Apr 22-Apr

Greece - Average Daily System Marginal Price

EUR/MWh 20

16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 21-Apr 22-Apr Date Opcom, Romania: Energy Traded on Wednesday, April 25, 2007

Energy traded - OPCOM, Romania

16000.00 14000.00 12000.00 10000.00 8000.00

MWh 6000.00 4000.00 2000.00 0.00

17.4.200718.4.200719.4.200720.4.200721.4.200722.4.200723.4.200724.4.200725.4.200726.4.200727.4.200728.4.200729.4.200730.4.2007

Prices - OPCOM, Romania 80.00 70.00 60.00 50.00 40.00

EUR/MWh 30.00 20.00 10.00 0.00

17.4.2007 18.4.2007 19.4.2007 20.4.2007 21.4.2007 22.4.2007 23.4.2007 24.4.2007 25.4.2007 26.4.2007 27.4.2007 28.4.2007 29.4.2007 30.4.2007 minimal pr ic e average price max imal pr ic e Opcom, Romania: Energy Traded on Sunday, April 29, 2007

3 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Hourly imports of Montenegro on Wednesday, 25.4.2007

0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 -50

-100

-150

-200

-250

-300

-350

Hourly imports of Montenegro on Sunday, 29.4.2007

0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324 -50

-100

-150

-200

-250

-300

-350

-400

*Physical imports are shown, i.e. with included generation of HPP Piva in exchange total of Montenegro

In the period from 17.4.2007 till 30.4.2007: Montenegro maximum daily consumption: 11.50 GWh Montenegro maximal hourly consumption: 580 MWh

Tables with results of Allocated Available Transfer Capacities (AATC) in Balkan region for April 2007

4 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Weather conditions

» General remark: Sign - in all tables means that data is not available Average weather conditions for May » General remark 2: All prices for capacity are presented in €/MWh

TTC (Total Transfer Capacity), TRM (Transmission Reliability Margin) and NTC (Net Transfer Capacity) values in previous tables, represents com- monly correlated values, given per each border and per each direction on the respective border. (Please note that some of TSOs on their web sites publish only one-half of the NTC value, i.e. their own part of NTC, and therefore NTC data can be diff erent)

AAC (Already Allocated Capacity) value represents part of transmission capacity allocated earlier by TSO in which table this value appears.

ATC (Available Transfer Capacities) value represents amount of transmission capacity, which will be off ered by the TSO in which table this value appears to the interested market participants through allocation procedure: usually by pro-rata or explicit auctions method. (Please note that some of TSOs on their web sites within their ATC value publish ATC part of the neighboring TSO, and therefore ATC data can be diff erent)

AATC (ALLOCATED Available Transfer Capacities) values are the results of allocation procedure conducted by respective TSO in which table this value appears T: Ts in Celsius degrees. W: Ws in km/h, S – South, W – West, N – North, E – East and variables; L-V - light Danube water-level and variable relevant for: R: Rain in mm S: Snow in mm HPP Portile de Fier I, 1167 MW, Romania HPP Portile de Fier II, 270 MW, Romania HPP Djerdap I, 1058 MW, Serbia HPP Djerdap II, 270 MW Serbia

5 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

As far as publishing of data related to capacity allocation is con- Analysis: cerned, very few TSOs publish all of the relevant data, namely:

» TTC (Total Transfer Capacity), Overview of transmission capacity allocation status in » TRM (Transmission Reliability Margin), Balkan region » NTC (Net Transfer Capacity) = TTC – TRM, » AAC (Already Allocated Capacity), If compared with status at summer 2006, substantial improvement » ATC (Available Transfer Capacity) = NTC – AAC, and could be noticed in the involvement of market based rules for cross- border capacity allocation and in the fi eld of related data publica- » AATC (Allocated ATC) – amount of ATC that is allocated to the tion and generally transparency of procedures. Most of the TSOs in market players in the capacity allocation process. the Balkan region have new and improved rules for capacity allocation on its borders since January 2007. But most of those rules have Some of TSOs prior to allocation, instead of all relevant data, publish temporary character i.e. they are valid for the fi rst half of this year, only NTC or only ATC values, some both of them, and after allocation while for the second half of the year further improvements regard- some of them do not publish values of Allocated ATC (i.e. allocation ing transparency, capacity allocation method development and results). Overview of the published data on the web sites of TSOs in (sub)regional coordination are expected because there is a need the Balkan region is given in Table 1. and plenty of room to do it so. Table 1: Publication of capacity allocation related data Applied methods for cross-border transfer ca- Country \ Data TTC TRM NTC AAC ATC AATC Pri ce Archi ve Engl i sh pacities allocation i.e. for ATC (Available Transfer Albania ------Capacities) allocation, on monthly time-frame B&H YES YES YES* YES YES YES - YES YES no no YES no no no - YES are presented at the Picture 1. Most applied ca- Bulgaria YES Croatia no no no no YES YES YES no YES pacity allocation methods are explicit auctions Greece no no YES no YES YES YES YES YES and pro-rata method. Beside monthly allocation, Hungary YES YES YES* YES** YES YES YES YES YES which is applied for all borders, some TSOs also Macedonia YES YES YES YES YES no - YES YES apply yearly, seasonally, weekly and daily capac- Montenegro no no YES no YES YES YES YES YES ity allocation. Romania YES YES YES* YES YES YES YES YES no Serbia YES YES YES YES YES YES no no no * B&H, Hungary and Romania publish only 1/2 of the total NTC value on the borders ** Hungary publish neighboring 50%NTC in their AAC Table 1: Publication of capacity allocation related data EA HUNGARY EA One of the recognized problems, not only in the Balkan region but wider in Europe, is cancellation of nominated and notifi ed transac- EA EA EA

joint tions, usually due to network problems, but without satisfactory EA ROMANIA explanation from involved TSOs and moreover without adequate CROATIA EA compensation of loss for involved traders. Also, very few of the TSOs EA explain the reasons for the big variation of NTC values, especially its EA reduction from month to month, which can be e.g. due to discon- PR EA EA nection of signifi cant network elements, but may be not. Generally BOSNIA AND SERBIA there is no secondary market for cross border capacities in the re-

HERZEGOVINA EA PR PR gion, i.e. it is not possible to return or resell acquired capacity (ex- EA cept in Greece). Not all the TSOs publish capacity allocation Rules PR EA EA and capacity related data in English language, which represents lack PR MONTENEGRO of transparency and complicate in the fi rst line trading itself, and EA then tracking down and analysis of capacity allocation issue in the BULGARIA region. PR EA PR EA PR EA

X ALBANIA MACEDONIA 1. Albania – ATSO (www.kesh.com.al) X In spite of the fact that Albanian TSO is offi cially formed few years X PL PL EA EA EA ago, they don’t have web site or publicly available information else- GREECE where about capacity allocation procedures on their borders. Ac- cording to the ETSO documents they apply pro-rata method on Legend of allocation methods: Montenegrin and Serbian border and priority list on the Greek bor- EA – Explicit Auction, PR – Pro-Rata, PL – Priority List, der. X – no allocation at observed time horizon Picture 1: Monthly allocation of Cross-Border transfer capacities in Balkan countries (status at spring 2007) 2. Bosnia and Herzegovina – NOS BIH (www.nosbih.ba)

It is usual and widely applied that cross-border capacity on each Capacity allocation is done according to temporary (January - June border and in each direction over one border is split 50% : 50% 2007) rules and applied method is pro-rata on all borders. Rules are between neighbouring TSOs and that each TSO allocate its part of available in English on the new web site with new internet address. capacity according to its own rules. Only exception in the region is Allocation exists on yearly, monthly, daily and intra-daily level. It is border between Hungary and Croatia on which complete allocation interesting that requests for import/export are distinguished from for 100% of capacity is done by Hungarian TSO – MAVIR. requests for transit, which is not usual practice in Europe any more. Capacity is free of charges, but participants that use less than 80% of their allocated capacities on monthly level pay a compensation 6 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

fee for the non-used capacity in the amount of 3 BAM/MWh (ap- duced since January 2007. All data related to the actual capacity proximately 1.53 €/MWh). All necessary data is published on the fol- auctions, as well as the auctions results, could be found at: lowing web address: www.mavir.hu > English > Market > Cross-border capacity > Actual http://www.nosbih.ba/defaultEng.html > Cross-border capacity > Auction Monthly allocation of cross border capacity

7. FYR Macedonia – MEPSO (www.mepso.com.mk) 3. Bulgaria – ESO EAD (www.tso.bg) There are no publicly available rules for capacity allocation, but ac- Bulgaria fi nally got it’s TSO on 4th January 2007 when a new subsidi- cording to the ETSO documents on Serbian border pro-rata method ary company under the fi rm of Elektroenergien Sistemen Operator is applied and priority list on the Greek border. All necessary data EAD (ESO EAD), 100% owned by NEK, has been registered. ESO EAD are regularly published (and archived) on the address: is currently holder of the power system dispatching licence and in http://www.mepso.com.mk/index.php?id=217 the future it will hold also electricity market administration licence. ESO EAD is now responsible for the allocation of the cross-border transmission capacity of the Bulgaria’s interconnections and respec- 8. Montenegro – TSO-EPCG (www.tso-epcg.com) tive rules are expected to be published in due time. Currently, only NTC values are published on their web site: Since March 2007 new capacity allocation rules are in force and valid http://www.tso.bg/DesktopDefault.aspx?tabid=68&tablang=en&9 till July 2007, but English version is not available yet. Novelty repre- 70364431 sents application of monthly explicit auctions on all borders. Some- times it is possible that not all monthly ATC is off ered for the auction but some smaller part is left for the daily allocation (it should be 4. Croatia – HEP OPS (ops.hep.hr) explicit auctions also but currently is not the case). In the auction procedure, fi rst order priority has registered Suppliers in Montene- Since January 2007, new “Rules on allocation and use of cross bor- gro, and then other market participants. Minimal price in the case of der transfer capacity” are in use, and are available in English. Rules congestion on some border is 0.5 €/MWh, and all prices are publicly defi nes periodical allocation (annual, semi-annual and quarterly pe- available after auction. Monthly NTC and ATC and daily ATC values riod) for imported electricity destined for tariff and eligible custom- are available at: ers, as well as for export of electricity generated in the Republic of http://www.tso-epcg.com/eng/prenosni_kapaciteti.php , Croatia, without any fee. Monthly (and daily in prospective) explicit while information about auctions could be found in the news sec- auction are also defi ned and applied on all borders. Marginal pric- tion of the web site: ing is applied and results are publicly available, but unfortunately http://www.tso-epcg.com/eng/novosti.php there is no archive data. On border with Hungary, joint auction is implemented and conducted by the Hungarian TSO. Beside two previous kinds of allocation, bilateral allocation is also defi ned and 9. Romania – Transelectrica (www.transelectrica.ro) can be organized for the part of the month period, one day period or part of the day period, and is not subject of any fee. Regarding Capacity allocation rules, which defi ne explicit auctions as a method monthly allocation by means of explicit auctions, HEP OPS publish for all borders, are valid since June 2005 and available in English on in advance only ATC values, while all relevant capacity allocation the web site of the Romanian TSO. Beside Romanian producers, sup- data could be found on their web site, which now has new design, pliers and eligible customers, foreign partners can participate in the on the address: capacity auctions, but only for transit transactions. All necessary ca- http://ops.hep.hr/ops/en/services/capacities.aspx pacity allocation data and results also are accessible via web site of Transelectrica’s Balancing market operator (www.ope.ro) but unfortunately only in Romanian part of the web site at following link: 5. Greece – HTSO (www.desmie.gr) http://www.ope.ro/listdoc.php?param=td_4_1_2_ 1&limba=Romana New North Interconnection Auction Rules are valid since March 01, 2007, and in comparison with old version only one Article is changed and one is added. In accordance with those rules, explicit 10. Serbia – EMS (www.ems.co.yu) auctions are implemented on all borders for yearly, monthly and daily level. Special auction algorithm for exports is implemented, New temporary (January - June 2007) capacity allocation rules including restrictions not only on borders but also the sum of total are in place, but are available only in Serbian language, as well as export. Auctions for imports are done on each border separately. other information about capacity allocation procedures. Capacity is Off ered capacities on monthly level, especially for northern inter- mainly allocated on monthly level, and since May 2007 on all bor- connection, are not always publicly available in transparent man- ders by means of explicit auctions, which are gradually introduced ner. Auctions results are regularly published and are available at the in last few months. Beside monthly, weekly allocation period exists following link: since March 2007, and obtained capacity that way is subject only to http://www.desmie.gr/content/index.asp?parent_id=741&cat_ administration fee. Unlike the others, EMS use “pay-as-bid” pricing id=1124&lang=2 scheme in explicit auctioning and do not publish either off ered or last accepted price in the case of congestion. Information about allocation procedures are available only in Serbian on the following 6. Hungary – MAVIR (www.mavir.hu) web address: http://www.ems.co.yu/stranice/tehnicke_informacije/procedure_ Explicit auctions for capacity allocation are implemented on all Hun- inf.htm garian borders. MAVIR conducts joint auction for 100% of capacity * * * on Croatian border and corresponding rules is available in English. Unlike this, there is no rules in English for Romanian and Serbian Regarding data transparency issue in the EU countries, recently borders. Nomination 1:1 for the exchange programs for the borders launched ETSO Vista platform (www.etsovista.org) with publicly with Romania and Serbia (and Austria and Slovakia also) is intro- accessible data of cross-border off ered and nominated capacity as 7 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

well as real power fl ows over interconnections, is signifi cant con- Seryogin also expects that future international project company tribution for European internal market development. It will be very would select Transneft to be an operator of the project. He said that useful that TSOs from the Balkan region join existing platform if pos- Russian-British joint venture TNK-BP, Chevron and KazMunayGas ex- sible, or to make similar one of its own, having in mind that several pressed interest for the project. TSOs already publish those data on their web sites. § § § As far as investigation of Flow-based Coordinated Auctioning of transfer capacities is concerned, after fi nished dry-run period in 2006, TSOs and the traders from the region agreed to conduct dry- Energy summit held in Ohird (Region) run 2007 together. This means that traders will take active role in bidding for “virtual” transfer capacities by using specially developed web site for this purpose (www.drcat.at). Results of this collabora- In mid-April, presidents of Macedonia, Albania, Bosnia and Herze- tion should be fi nal decision on real implementation of this method govina, Montenegro, Serbia and vice president of Bulgaria met in in the region. Most likely scenario for further development of capac- energy summit in Ohird in Macedonia. ity allocation in the region is implementation of unilateral or bilateral explicit auctions on remaining borders, then some kind of its High offi cials discussed long-term energy stability in the region as coordination (maybe similar to one implemented in central Europe: one of the main conditions for economic development. Deputy Di- www.e-trace.biz) and after that application of fl ow-based coordi- rector of EU Enlargement Directorate General attended the summit, nated auctioning is envisaged. while president of Romania did not attend the meeting because of political problems in Romania.

News: Main idea of the summit was to evaluate the progress of the region in adopting the EU standards regarding the energy policy. Partici- pants also discussed plans for improving overall energy effi ciency and environmental protection. Establishment of the company for Balkan oil pipeline to start in May (Region) In the fi nal declaration signed at the end of the summit, leaders of Balkan countries agreed to attract new investments in energy sec- Bulgarian construction minister Asen Gagauzov confi rmed that ne- tor, in order to be less depended on import. The main aims in the gotiations for establishment of the international project company, future will be safety in energy supply, establishment of regional to be an owner and an operator of Bourgas –Alexandropoulos oil energy market and solidarity in energy sector. All leaders approved pipeline, i.e. Balkan pipeline, should start in Moscow in May. This the idea of solidarity and good relations during the local or global was confi rmed after the meeting of Bulgarian minister and Greek energy crises. development minister Dimitris Sioufas. § § §

New pipeline should be 280 km long and the cost of the project is estimated at some 1 billion euros. Russian companies Rosneft, 50 small HPPs to be off ered for sale (Albania) Gazprom Neft and Transneft will own 51 % of the stake in the project, while Bulgaria (through Bulgargaz and Transexportstroy) as well as Greece (through Hellenic Petroleum, the Lastis Group and During the speech regarding the development of hydropower sec- Petroleum Gas, the Gazprom’s subsidiary) should own 24.5 % of the tor in Albania, prime minister Sali Berisha announced that govern- stake each. ment would off er for sale 50 small hydropower plants (HPPs) very soon. Sioufas confi rmed the Greek parliamentary transport committee ratifi ed the agreement for construction of new pipeline (signed by Prime minister pointed out that development and support of elec- Russia, Bulgaria and Greece in March), where the agreement should tricity generation in the country was essential. be submitted for parliament’s approval. In the same time, Bulgar- § § § ian parliament should ratify the agreement also, as well as Bourgas- Vlora pipeline project.

In the related news, Nikolai Seryogin from Bourgas- Alexandropou- Reduced price for electricity import in March (Albania) los Consortium confi rmed that oil companies would have equal access to the new pipeline. According to him, there will be no fi xed According to data presented in March, Albanian power corporation quotas. The pipeline would be built on EU territory, the laws of which (KESH) confi rmed it purchased electricity in March at prices 20 % guarantee the open access to transport capacities, Seryogin said. lower comparing to February.

The Seryogin, which is the director of strategy and foreign project KESH paid 780,000 euros in average for daily electricity import in department in Gazprom Neft, excluded any capacity shortage of March, which should be 23.5 million euros in sum on monthly level. new pipeline, having in mind congestions in Bosporus straits. The pipeline should transport 35 million tons of oil per year, which EFT supplied one third of the delivered electricity, where most of should resolve the congestion. electricity was imported through direct procurements. Only EFT and ATEL delivered electricity contracted through tender procedure, Overall estimated loss of oil companies, due to congestions, is es- which took place in November 2006th. timated at 700-750 million dollars, which resulted in 13-14 dollars costs per metric ton of oil. § § § The oil could be transported to USA if EU oil market was saturated, the offi cial said.

8 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Increase in incomes for Bankers Petroleum (Albania) The oil refi nement should start in old oil processing line, with capacity of 1.3 million tons per year, so that oil production should reach Canadian oil company Bankers Petroleum, operator of Patos-Mar- 500,000 tons this year, Ubiparip said. inza’ oilfi eld under the concession contract, confi rmed that the aver- § § § age production increased by 107 % up to 3,490 barrels. The incomes and net profi t also considerably improved, the company said.

In 2005th, oil production was 1,687 barrels per day, while in 2006th, EP HZHB announced three large projects for new power the company reported loss from operations in the oilfi eld. plants (Bosnia and Herzegovina)

§ § § Head of Power utility of Herzeg Bosnia (EP HZHB), Vlado Maric, during the press conference, announced three large-scale projects for construction of new power plants. The press conference was also Energy balance sheet published (Bosnia and Herzegovina) attended by the prime minister of Croatian canton and the offi cial from Power utility of Croatia (HEP). Government of Federation of Bosnia and Herzegovina (BiH) has set the planned energy needs for 2007th according to data submitted The fi rst and the most important project is related to construction of by energy companies and estimations made by Department of en- thermal power plant (TPP) Kongora, with power output of 550 MW ergy in Ministry of energy, mining and industry. (2x275 MW), and annual electricity production of 2.97 TWh .

Planned coal production in 2007th should reach 6.45 million tons, In this moment, overall electricity production of all other power while coal consumption should stand at 6.082 million tons. Out of plants of EP HZHB is 1.75 TWh. By construction of this power plant, that amount, thermal power plants (TPPs) of Power utility of BiH (EP EP HZHB would be able to export some 900 GWh of electricity ac- BiH) should spend 4.8 million tons. In the same time, planned coal cording to estimations. import should reach 255,000 tons. The worth of the project is estimated at 500 million euros, where In 2007th, planned electricity production should stand at 7.707 TWh, HEP already expressed interest for cooperation. TPP could be built while overall electricity needs are estimated at 8.041 TWh. Planned within fi ve years, offi cials said. Maric confi rmed that project should electricity import should reach 353 GWh. In the same time, EP BiH be approved by the local authorities from Tomislavgrad, which ear- should deliver 1 TWh of electricity to Power utility of Croatia (HEP) lier opposed the construction of TPP. in order to compensate debt for funding the BiH’s power plants in former Yugoslavia. Head of EP HZHB confi rmed that feasibility study for the project is still to be carried out. According to the offi cials from municipality Planned natural gas import should stand at 223.3 million cubic me- of Tomislavgard and federal government, experts from Faculty and ters, which should be 19 million cubic meters higher comparing to geology and mining from Tuzla would soon start researches at the 2006th. site Kongora. The worth of the study is estimated at 1 million euros, where its main aim is to confi rm existence of 130 million tons of In the same time, government of Republic of Srpska (RS) has pub- quality lignite at the Kongora site. lished electricity balance sheet for 2007th. Planned electricity production in RS should reach 5.201 TWh, which should be 3.9 % lower The second important project could be also located in Tomislav- comparing to 2006th. Out of that amount, 3.459 will be spent by grad, EP HZHB plans to build 50 MW hydropower plant (HPP) Vrilo. domestic customers, while 1.191 TWh of electricity should be ex- The HPP could be built in 2.5 to 3 years, where annual electricity ported. production could reach 96 GWh.

According to data presented by Ministry of economy, energy and The third project is related to construction of three wind farms in development of RS, planned electricity losses in 2007th should be area of Borova Glava, Mokronoga and Mesihovo, all near city of 14 %, which would be lower comparing to 19 % losses recorded pre- Livno. EP HZHB already sent the requests for inclusion of these ob- vious year. ject in physical plans, in order to obtain construction permits as soon as possible. Overall coal production should reach 4.2 million tons, which should § § § be mostly spent by TPPs Gacko and Ugljevik.

§ § § FERK warned power utilities to obey laws (Bosnia and Herzegovina) Oil refi nery to start production in August (Bosnia and Herzegovina) Federal regulatory energy agency (FERK) demanded from two power utilities in Federation of Bosnia and Herzegovina (BiH), the Power Oil refi nery in Brod should restart oil refi nement in August, minister utility of BiH (EP BiH) and Power utility of Herzeg Bosnia (EP HHZB), of economy, energy and development of Republic of Srpska (RS), to submit business plans (including headcount, business contracts, Rajko Ubiparip, said. concession contracts etc), to FERK for approval. This should be done by the mid-May. He expects that Competition council (CC) of Bosnia and Herzegovi- na (BiH) should soon reconsider all relevant data in order to approve Power utilities must also open new customers’ offi ces, which would sale of oil companies in RS to Russian Zarubezneft. provide all relevant information to customers and enable them to report all malfunctions in power network. In the same time, both

9 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

utilities should submit timetables for calibration of electricity me- The offi cial request should be submitted by the beginning of May, ters. and it will refer to period October 1st 2007th -September 30th 2008th. The increase is related to the country’s infl ation rate, E.ON FERK demanded both from EP BiH and from EP HZHB to harmonize said. their business activities in accordance to Energy law of BiH. Other- wise, FERK will not prolong their licenses, which are to expire on No- E.ON owns electricity distribution companies in Black Sea port Var- vember 30th. This should be done by the end of June. na and city of Gorna Oryahovitza, with overall number of 1.1 million customers. As for EP BiH, FERK demanded from the company to reduce number of employees and to monitor emission of greenhouse gasses. According to the latest data, E.ON has invested some 22 million euros in Bulgaria in 2006th. In the same time, the company has de- As for EP HZHB, FERK was unsatisfi ed with the collection rate of livered 5.2 TWh and reported 271 million euros of electricity sales electricity bills, so that management of the company was obliged incomes. The electricity losses were reduced from 19 % to 17 %, data to increase the collection rate at recommended amount until Sep- showed. tember 1st this year. In the same time, Austrian EVN, the owner of electricity distributors In the related news, the State regulatory agency of BiH (DERK) has in Plovdiv and Stara Zagora demanded 6.29 % increase in electric- set the new electricity transmission tariff of 0.47 eurocents/kWh, ity prices starting from October 1st. The increase was justifi ed by which was 5 % reduction. In the same time, DERK imposed new fee investment costs, the company said, and offi cial request should be of 0.017 eurocents/kWh for operation of Independent transmission submitted until beginning of May. system operator of BiH. Both of the tariff s would be incorporated into the fi nal price of electricity paid by the customers in Federation According to proposal, households’ electricity prices should be in- of BiH and Republic of Srpska. creased by 6.45 %. The increase in electricity prices would result in increase of average household electricity bill from 7.16 euros up to § § § 7.62 euros, EVN said.

The low-voltage industrial customers should pay 8.78 % higher pric- Increase in electricity prices in Herzeg-Bosnia (Bosnia and es, while high-voltage industrial customers should pay 2.2 % higher Herzegovina) prices. Head of State Electricity and Water Regulatory Commission, Kon- According to the decision of Federal regulatory energy commis- stantin Shushulov, confi rmed that increase in electricity prices could sion (FERK), the households in Croatian canton, the Herzeg-Bosnia, be possible from July. would pay 4.73 % higher electricity prices starting from May this year. The 2.42 % increase in electricity prices would apply for April The increase in electricity prices is already requested by CEZ in too, offi cials confi rmed. March this year. CEZ demanded increase of 8.9 % for households and 15.3 % increase for mid-voltage customers. Power utility of Herzeg Bosnian (EP HZHB) demanded 20 % increase in electricity prices, which was rejected by FERK as groundless. § § §

FERK approved new prices, having in mind that the largest electricity customers, the Aluminum factory in Mostar became eligible cus- tomer and signed the supply contract with Power utility of Croatia Enel informed government about the project for new power (HEP), for providing the part of its electricity needs. By this contract, plant in Maritsa Iztok basin (Bulgaria) overall expenses of EP HZHB have been reduced, FERK explained. Italian power company Enel has sent the written notice to Bulgar- In the same time, starting from May, customers connected to 110kV ian ministry of energy in March this year regarding the company’s grid will pay 12.2 % higher prices, 35kV customers will pay 11.73 % plans to invest 950 million euros in new 750 MW thermal power higher prices, while customers connected to 10kV and 20kV electric- plant (TPP). ity grid, will pay 8.85 % higher electricity prices. In the same time, public lightning price will rise by 4.32 %. The new TPP should be built on the site of TPP Maritsa Iztok 3, which is owned and currently being upgraded by Enel. The Enel’s inten- § § § tions have been confi rmed by the business development director Alessandro Boschi. Enel has been conducting feasibility studies for the project, where market study was near end and the environmen- E.ON, EVN and CEZ to continue requests for electricity price tal impact study should be fi nished in three months. increases (Bulgaria) Apart from Enel, the interest for construction of new power plants in Maritsa Iztok coal basin was expressed by local company Brikel, AES Chariman of the board of manager of E.ON Bulgaria, Manfred Paash, (USA) and RWE and E.ON (Germany). confi rmed the company would demand 6.5 % increase in households’ electricity price in average. The increase for households will According to Bulgarian laws, the construction of new power plant be 5.6 %, while industrial customers will pay between 4.2 % and 12.8 could be approved through tender procedure, but energy ministry % higher electricity prices. was already against such model having in mind that it would imply signing the long-term contract for purchase of electricity from the Paash also said the increases did not include potential increase in plant. price of electricity producers. Enel’s director confi rmed they are ready to participate in potential tender, yet he pointed out that Enel was ahead of its competitors 10 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

in terms of the projects’ plans and studies. In the same time, Enel Increase in quarterly profi t for Janaf (Croatia) would not demand signing the long-term contract, Boschi said. Management of Enel has approved establishment of special com- Adriatic pipeline (Janaf) has reported net profi t of 1.9 million euros pany that would be in charge for plant’s construction. The company in the fi rst quarter of 2007th, which was 53 % increase comparing would be launched if Bulgaria demands establishment of joint ven- to the previous year. The most of the profi t was the consequence ture for the project. of increased oil storage, showed the fi nancial report submitted to Zagreb Stock Exchange. Enel and National electric company (NEK) have already signed memorandum of understanding, where Enel off ered 27 % stake in In the same period, overall incomes of Janaf reached 11.63 million the project to NEK. euros, which was 19.4 % higher comparing to 2006th. The increase is mostly the result of 44 % increase in oil sales abroad. § § § Overall amount of oil transported was 7.1 % higher comparing to the last year, while oil storage incomes were 250 % higher compar- CEZ to invest 50 million euros in 2007th (Bulgaria) ing to the last year. On the other hand, overall expenses increased by 10 % up to 9.72 million euros. Czech CEZ announced to invest 50 million euros in Bulgaria in § § § 2007th. CEZ owns three electricity distributors in Western part of the country.

The most of the funds will be used for purchase of parts of the pow- Government proposed new route for Druzba Adria oil er grid, which is owned by the local municipalities. CEZ should also pipeline (Croatia) introduce uniform structure in three power companies in order to improve overall effi ciency. Croatian Prime Minister, Ivo Sanader, confi rmed that government has sent a proposal for new route of Druzba Adria oil pipeline to the § § § governments of Italy and Slovenia.

This was said after the meeting with German chancellor Gerhard Miners’ protest in Bobov Dol (Bulgaria) Schroeder.

On April 24th, miners from Bobov Dol coalmines have launched pro- Prime minister explained it was the old idea, which was recently re- tests against the plans for sale of thermal power plant (TPP) Bobov vived by the Croatian president Stipe Mesic also. Croatia has been Dol to Greece’s Public power corporation (PPC). Bulgaria’s Privatiza- awaiting answers from Italy and Slovenia, where Sanader believes tion agency (PA) has not yet signed contract for sale of TPP to the that the Adria project would be reached the same as PEOP project fi rst ranked bidder in the tender procedure, the PPC (selected last recently. year). During the energy summit held in Ohrid in mid April, Sanader an- The 14 mines in the area employ some 8,000 people. The miners nounced revival of Druzba Adria project, which he considers as have blocked motorway connecting Sofi a and Greece. Miners de- complementary project to PEOP. mand from PPC to sign long-term coal purchase contract, which § § § should guarantee minimum coal deliveries. On the other hand, PPC is still reluctant to accept such option.

Trade unions requested revisions in national energy strategy, threat- New Natural gas market law (Croatia) ening to launch new protests in May. In the end of March, President of Croatia, in accordance to Constitu- PPC and the coalmines have been given time until the end of the tion of Croatia, has signed new Natural gas market law. April to reach an agreement, after which PA will sell TPP to PPC, which off ered 105 million euros for it. The Law prescribes rules and procedures for energy activities in natural gas sector, (including liquefi ed natural gas (LNG)), the rights § § § and obligations of market participants, separation of operator of transmission system, third party access and liberalization of natural gas market. The Law applies to biogas, biomass gas, and other types E.ON off ered to deliver electricity (Bulgaria) of gasses, if those gasses could be safely transported through pipeline network. German E.ON was ready to import electricity for Bulgaria, chairman of the management board of E.ON Bulgaria Manfred Paasch said. The main aim of the Law is to establish legal prepositions for safe, The company is also ready to fi nance upgrade of interconnection effi cient and economic natural gas supply. Because of that, Law im- power lines. plies third party access to transmission and distribution natural gas network, natural gas warehouses (including LNG) in equal manner The E.ON already supplies three large industrial customers, while for all market participants. E.ON has registered E.ON Bulgaria Trading and E.ON sales, which are authorized to operate in local electricity market. The liberalization of natural gas market would be done gradually, Law prescribed. The Law includes a set of sub legal acts, which § § § would enable harmonization of local and EU laws.

§ § § 11 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

HERA adopted tariff s for electricity transit (Croatia) The tender was closed on February 22nd, while other bids were submitted by Hellenic Technodomiki, with Edison and Viohalco, Croatian regulatory energy agency (HERA), at the proposal of (Thisvi Energy), Heron Thermoelectric, with GEK, and Iberdrola with Croatian transmission system operator (HEP-OPS), has adopted tar- Motor Oil (Korinthos Power). iff s for transit of electrical energy through transmission network. According to tender terms, the winner was the company that de- New transit fee will be 2.8 euros/MWh. New tariff will be applied manded the lowest guaranteed annual income for availability ca- starting from April 1st until the start of application of Energy treaty pacity certifi cates for 12-year period in Southeastern Europe. Sources said Enelco requested payment of 35,000 euros per MW § § § (which was minimum guaranteed price by HTSO) for 430 MW power plant. Heron Termoelectric demanded the same amount for 400 MW plant, while Korinthos Power as well as Thisvi Energy demanded some 89,000 euros per MW. Slovenia accused Croatia for breaching the contract for NPP Krsko (Croatia) § § §

Slovenian minister of economy, Andrej Vizjak, said that Croatia did not obey interstate agreement regarding storage of radioactive PPC yet to decide on the winner in the tender for Aliveri waste from nuclear power plant (NPP) Krsko. power plant (Greece)

Slovenia informed European Commission on this issue, Vizjak confi rmed. Public power corporation (PPC) confi rmed it has not yet decided on the winner in the tender for construction of natural gas fi red ther- According to Slovenian offi cials, Croatia should have established mal power plant (TPP) (CCGT type) Aliveri (370-420 MW). The PPC special and independent fund for purpose of storage of radioactive did not set the deadline for its fi nal decision. waste and decommissioning of NPP, after expiration of its lifespan. EU energy commissioner, Andris Piebalgs, confi rmed that Slovenia The tender was prolonged until March 26th due to complaints of and Croatia share joint responsibility regarding future of NPP Kr- Damco. The bids in the tender were submitted by Metka-Alstom sko. and consortium Damco (Kopelouzos group)-Ansaldo. The worth of the project is estimated at over 200 million euros. Vizjak repeated well-known standpoints of Slovenia regarding ar- bitrage procedure launched by Croatia at the International Centre According to the latest news, both bidders claim they submitted for Settlement of Investment Disputes (ICSID) in Washington due to the lowest bid in the tender. Metka, the subsidiary of Mytilineos, of- undelivered electrical energy in period of nine months. He said that fered to build power plants at 62, 209 euros per MW, comparing to this dispute should be considered as the interstate dispute, and not off er made by Damco of 62,530 euros per MW, Metka claims. the investment one. On the other hand, Damco claim its bid is some 244 million euros § § § (some 58,000 euros per MW), or some 20 million euros lower comparing to Metka’s bid.

The construction of Aliveri power plant is the part of PPC’s 2,400 Edison announced construction of new power plant MW capacity replacement program. (Greece) § § § Edison announced to build combined cycle gas turbine (CCGT) with power output of 400 MW. The plant will be build by the joint venture of Edison, Hellenic Energy & Development (Hellenic Technodomiki) New natural gas pipeline toward Turkey to be operational and Viohalco. Edison will have 65 % stake in joint venture named in July (Greece) Thisvi Energy. According earlier news, Hellenic Technodomiki and Viohalco will have 30 and 5 % stake in joint venture, respectively. The prime ministers of Turkey and Greece should inaugurate the New power plant will be located in central Greece, where joint ven- new natural gas pipeline between two countries in July this year. ture already holds installation license. The worth of the project is This was confi rmed by the Greek development minister Dimitris Si- estimated at 250 million euros. oufas, after the meeting with Turkish energy minister Hilmi Guler.

§ § § The 300 km long pipeline will deliver natural gas from Azerbaijan and other parts of Central Asia to Turkey, Greece and the rest of the Europe. The rest of 220 km undersea section of the pipeline toward Italy will be later built. Enel to win in HTSO’s tender for construction of new power plant (Greece) In the incoming months, Greece, Turkey and Italy should sign tripar- tite convention regarding the continuation of construction works. Enelco, the joint venture of Italian Enel and Kopelouzos group, has The works on the undersea section should start next year, where submitted the best bid in the capacity availability tender launched entire route of the pipeline should be operational in 2011th. by Hellenic transmission system operator (HTSO). This was confi rmed by the venture’s director Giovanni Maria Pisani. The new The almost completed Greece-Turkey pipeline and future Greek- power plant should be operational in 2009th. Italy natural gas pipeline are the part of Southern European Gas Ring (SEGR) project. The project is aimed to connect gas networks 12 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

of three countries with Baku-Tbilisi-Erzurum (BTE)/South Caucasus mental standards of oil derivatives produced in Okta refi nery (high Pipeline (SCP), which would transport natural gas from Azeri Shah percentage of sulfur). Deniz gas fi eld. According to Kosovo media, interim ministry of trade and industry Azerbaijan offi cials recently confi rmed that the country would pro- has issued new quality standards for oil derivatives in Kosovo prov- duce suffi cient amount of natural gas to both SEGR pipeline and the ince. planned Nabucco pipeline. According to unoffi cial sources, quoted by Macedonia’s media, the In the related news, Sioufas and Guler discussed about soon con- latest development is the results of internal disputes within Kosovo nection of electricity networks of two countries. The project, which interim government regarding the oil business. One wing of the is underway, should be fi nished by January 2008th, Sioufas said. government has been lobbying in favor of Macedonia to remain Greece is interested in fi nding alternative suppliers of electricity af- main supplier of oil derivatives, while another wing is in favor of ter shutdown of units in nuclear power plant Kozloduy. cooperation with oil companies from Croatia, sources said.

§ § § According to data, Okta exports some 300,000 tons of oil derivatives to Kosovo per year, where estimated worth is 200 million dollars. Until the latest development, Okta had some 65 % (some source imply even 90 %) market share in Kosovo province. Head of PPC to visit Bulgaria to discuss TPP Bobov Dol issue (Greece) According to latest news, authorities from Kosovo allowed the cis- terns from Okta refi nery, which have been blocked for days, to enter CEO of Public Power Corporation (PPC), the Mr. Athanassopoulos, the province. That will be the last shipment of Okta’s oil products announced to visit Bulgaria in order to clarify sale procedure of ther- of that quality. If Okta wants to continue the export to Kosovo, it mal power plant (TPP) Bobov Dol (630 MW). The PPC, the winter in would be obliged to improve oil quality. the tender, wants to know whether the plant would be privatized or not. The sale procedure was delayed for quite some time, and Management of Okta already confi rmed that improvement of qual- according to announcements, the deadline for ending the negotia- ity of oil products could by achieved in 2008th at earliest, when the tions was set at April 30th. company plans to modernize production process. Export to Kosovo provides some 30 % of overall incomes for Okta. The Bobov Dol issue was also discussed during the visit of Greece’s development minister to Bulgaria. During the visit, Bulgaria an- § § § nounced to reduce electricity export to Greece this year, due to shutdown of units in nuclear power plant (NPP) Kozloduy. In 2006th, Greece imported 11 % of overall electricity needs, where 80 % of Power regulator to determine tariff s for electricity that amount came from Bulgaria. produced in wind farms (Macedonia) In the related news, during the presentation of company’s priorities this year, head of PPC announced that year 2007th would be Regulatory energy commission (REC) announced the start of pro- turn point for the company. He announced that new business plan cedure for setting the tariff s for electricity produced in wind farms would be presented by September or October. The key priorities in Macedonia. New tariff system has been prepared in cooperation will be restructuring of regulatory framework, cost control and gen- with World Bank and it should be fi nished in the beginning of May. eration strategy. The tariff s are expected to be favorable in order to attract potential Athanasopoulos announced the PPC could acquire 50 % stake in investors, having in mind the lack of data regarding wind potential Tellas, while acquiring the 30 % stake in DEPA (national gas com- in Macedonia, the head of REC, Slave Ivanovski confi rmed. This is pany) is still under evaluation. considered as a small risk for investors, Ivanovski said.

Regarding the personnel, head of PPC confi rmed the number of On the other hand, experts believe that wind farms would not employees could be reduced, but he did not give any details. resolve electricity defi cit in Macedonia. They also confi rmed that there are few locations, with quality data, suitable for construction According to PPC’s estimations, electricity demand in 2007th of wind farms. should rise by 2 %. Having in mind forecasted reduction in hydropower generation, PPC should import additional electricity from The construction of wind farms in Macedonia was actualized after Italy and maybe from Turkey, if new interconnection power line was Austrian company New Energy and local authorities in Gevgelija completed. have signed preliminary contract for construction of 30 wind generators in confl uence of Vardar River in February this year. The worth § § § of the contract is estimated at 80 million euros.

In the same time, Macedonian power plants (ELEM) decided to build 4 wind farms (near Stip, Sveti Nikola, Bogdane and Kozuh), Pristina banned import of oil from Okta (Macedonia) where each park would have 12 generators. Each wind farm should produce 100 GWh of electricity per year. The worth of the project is Offi cials from Skopje demanded explanation from authorities in estimated at 60 million euros. Pristina regarding the ban of import of oil from Macedonia to Ko- sovo. Nevertheless, Macedonia would not react if Kosovo did not The wind farms should be built through public-private partnership, break any trade regulation by imposing this decision. with support of World Bank.

Spokesperson of government of Macedonia confi rmed that Mac- § § § edonia would not object is this decision was moved by environ- 13 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

ELEM canceled the tender for lease of TPP Oslomej tract could be postponed by the end of May, bankruptcy manager (Macedonia) said. § § § Macedonian power plants (ELEM) have cancelled the international tender for lease of thermal power plant (TPP) Oslomej, which was recently published. Public invitation for oil and gas exploration in Adriatic in autumn (Montenegro) Management decided it was better to purchase the missing coal for the TPP by itself. Deputy minister of economic development, in charge for mining and geology, said to local media that government has prepared fi - The old coalmine of the TPP was exhausted and ELEM should start nal proposal of the hydrocarbons (oil and gas) law. construction works for opening of new coalmine, including dislocation of Temnica River, in May this year. He also announced that tender for concession exploration of oil and The works should last six months. The old coalmine was shutdown natural gas in Adriatic near Ulcinj would be launched this autumn, in the beginning of April, as well as the TPP. having in mind that ministry has prepared the most of the tender documentation. The tender would be launched after new hydrocar- The local community has opposed to the announced dislocation of bons law was adopted, deputy minister said. the river and opening of new coalmine, and they organized several roadblocks in the area. Prior the launching of the new tender, Hellenic Petroleum is obliged to submit all of its studies regarding exploration projects near Ulcinj § § § until July 1st (which is in accordance to concession contract). Hel- lenic Petroleum was the holder of the fi rst concession contract for exploration, which was cancelled by the government due to lack Global Steel won in the tender for sale of Berane coalmine of progress. (Montenegro) It is estimated that worth of the studies regarding oil researches in Montenegro is some 8 million euros, while costs of installation of Black coalmine Berane was sold through tender procedure to British only one test oil drill are estimated at 10 million euros. company Global Steel for 2 millions and one euro. It was the ninth attempt to sell the coalmine, (which is in process of bankruptcy), Oil reserves in the region of Ulicinj are estimated at 7 million barrels, while initial price was set at 1.3 million euros. while natural gas reserves are estimated at 15 million cubic meters. Global Steel, owned by Indian tycoon Pramoda Mitala, off ered to The interest for the concession contract was earlier expressed by invest some 120 million euros in the coalmine in the next ten years, state oil company Montenegrobonus, Croatian INA, Slovenian Pet- bankruptcy manager of the coalmine confi rmed. In addition, new rol, Canadian Bankers Petroleum, Hungarian MOL and Russian Lu- owner should invest 380 million euros for construction of new koil. power plant. Global Steel should employ 120 people during the § § § fi rst phase and another 60 employees later. British company was obliged not to dismiss any of employees during next fi ve years.

Offi cials confi rmed that Global Steel has paid 100,000 euros of de- Reduction in electricity losses and increase in collection posit, while the rest of the 1.9 million euros should be paid by the rate of electricity bills (Montenegro) end of April. Offi cials from Power utility of Montenegro (EPCG) confi rmed their Until the end of May, Global Steel should submit bank guarantees satisfaction with the results of campaign for reduction of electricity for 10 % of off ered investments in the coalmine, which refer to this losses in the period January-March this year. In the same period, year. Global Steel will become offi cial owner of the entire property collection rate of electricity bills has been signifi cantly improved. of the coalmine (including construction facilities and mining equipment) after it pays full price and sign the sale contract. In the aforementioned period, losses in distribution network reached 24.6 % of overall electricity supplied, which was 11 % lower In the meantime, Balkan Energy, the company that submitted a comparing to the fi rst quarter in 2006th. The savings are estimated bid for purchase of Berane coalmine (there were only two bids), at 5.5 million euros, director of Distribution department in EPCG has submitted offi cial complaint regarding the outcome of the sale said. procedure. According to annual electricity balance sheet, annual electricity Balkan Energy, the company linked with Greek energy companies, losses should reach 21.86 %, which could be lower having in mind believes they where damaged party during the sale procedure be- quarterly results, offi cials said. cause the best bidder was selected based on the terms that were The best results have been achieved in Podgorica, Herceg Novi, not named in the tender papers. Balkan Energy off ered 1.51 million Budva and Rozaje. euros and 7 % of the profi t achieved through the coal production. The company also off ered to invest 120 million euros (100 million EPCG has intensifi ed activities against electricity theft, but no cus- euros for the power plant, and the rest for the coalmine) in the next tomer has been convicted on this basis so far. The company believes four years. that courts will soon start to consider this criminal activity the same as all the others. On the other hand, bankruptcy manager recommended to authorities to dismiss the Balkan Energy’s complaint, saying that selection Until end of the May, EPCG will allocate some 1 million euros for procedure was fair. Due to complaint, the signing of the sale con- repair of distribution network in sea cost municipalities before the

14 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

summer season starts, where overall investments in those munici- High offi cial of EPCG denied any suspicions of corruption regard- palities should reach 2.8 million euros in this year. ing cooperation of EPCG and KfW. The procedure for selection of a consultant for renewal of HPP Piva is underway, where everything Thanks to the reduction in electricity losses, but also due to warm has been carried out in accordance to rules set by the German bank, weather, electricity import in March reached 57.29 GWh, which was director concluded. 25 % lower than planned. The worth of the import was 3.4 million euros. The electricity import should be further reduced having in § § § mind that capital overhaul of thermal power plant Pljevlja was postponed. Major electricity producers announced investments in Average electricity bill for the households in March was some 20 2007th (Romania) euros, which was 42 % lower comparing to January and 21.35 % lower comparing to February. The most important electricity producers in the country, the Nucle- In March, collection rate reached 90 %, where overall incomes of arelectrica, Hidroelectrica and Termoelectrica announced to invest EPCG reached 14.5 million euros. As a comparison, collection rate 16 % less funds in this year comparing to 2006th. The planned in- in January was 58 % and in February, it stood at 60 %. In January, vestments of those companies are announced in Offi cial Gazette. households spent 9.5 million euros for electricity, in February 7 million euros, while in March, households spent 5.5 million euros for Three companies plan to invest overall amount of 673 million euros electricity. in 2007th, comparing to 797 million euros invested last year.

Collection rate should be further improving since, according to Nuclearelectrica plans to invest 234.5 million euros, comparing to data, some 4,700 households and 500 companies signed the con- 365 million euros last year. Hidroelectrica should invest 394 million tracts for payment of 8.5 million euros of old debts through month- euros (close to the last year), while Termoelectrica should invest ly payments. 45.3 million euros, comparing to 40 million euros last year.

§ § § Until end of 2007th, Termoelectrica should reduce number of employees by 50, down to 1,683 people, Hidroelectrica, on the other hand, should employ 50 new workers, thus reaching 5,250 employees. Nuclearelectrica plans to keep current number of 2,330 em- EPCG announced continuation of infrastructure projects ployees. (Montenegro) § § § Director of Development and engineering sector of Power utility of Montenegro (EPCG) confi rmed that EPCG would participate in the tenders for construction of unit 2 in thermal power plant (TPP) Distrigaz Sud reported 47.5 million euros of profi t in Pljevlja and construction of hydropower plants (HPPs) on Moraca 2006th (Romania) River, if they were launched.

Director said that EPCG has been currently involved in four projects According to offi cial data, net profi t of natural gas distributor Dis- funded by German government, i.e. KfW Bank. Those projects are trigaz Sud (majority owned by Gaz De France) in 2006th reached renewal of HPP Perucica, the construction of 400kV interconnection 47.5 million euros, comparing to some 400,000 euros loss reported power line Podgorica-Tirana, renewal of HPP Piva and construction in 2005th. Overall turnover rose by 22.2 % up to 970 million euros, of substations Ribarevine and Podgorica 5. company’s data showed.

KfW Bank will provide 5 million euros as a donation and 3.6 mil- Management of the company confi rmed that increase in turnover lion euros loan for renewal of four the oldest units in HPP Perucica is the consequence of higher natural gas prices, despite the re- during the fi rst phase of the project. EPCG will also invest 5 million duction in demand. The overall number of customers of Distrigaz euros of own funds in the project. During the second phase of the Sud reached 1.123 million at the end of 2006th, which was 15 % project, KfW Bank will invest 20 million euros. increase.

The renewal of HPP Piva should start next year, and the project In 2006th, the company’s overall gas network expanded at 14,515 should be carried out in three phases, director said. The worth of km, while overall investments reached 71.5 million euros. The 50 % the project is 70 million euros, where KfW will invest 16 million and of that amount was used for replacement (485 km) and moderniza- 20 million euros during the fi rst and second phase, respectively. tion of pipeline network. In the same time, some 250 km of new pipelines have been built. The construction of 400kV line Podgorica-Tirana is the joint project of EPCG and Albanian power corporation (KESH). The worth of the Overall expenses of the company were reduced by 18 %. The own project is 54 million euros, where KfW should invest 44 million eu- capital of the company in 2006th reached 391 million euros, while ros, and the rest will be funded by EPCG and KESH. The contract with borrowed capital stood at 89 million euros. the constructor should be signed by the end of May, and power line should be put in operation in mid 2009th. In 2006th, unpaid bills reached 30 million euros comparing to 16.6 million euros of unpaid bills in 2005th. Among the debtors, there Some 11.5 million euros should be invested for construction of are ten large and several smaller companies. Deputy trade manager substations Ribarevine and Podgorica 5, where KfW will provide 3.1 of Distrigaz Sud confi rmed the company sued those companies in million euros of donations and 5.4 million euros loan. EPCG should order to recover debts. In the same time, the company cut-off the allocate 3 million euros for the project. gas supply to the households with unpaid gas bills.

15 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Distrigaz Sud announced to contribute to the social funds intend- Prosecutors established that Hidroelectrica extended four supply ed to support low income-households in paying natural gas bills, contracts, with Energy Holding, Euro-PEC SRL, Electromagnetica SA which was announced by the prime minister of Romania in the end and Luxten SA in 2004, for a period of ten years. of 2006th. In January 2004th, Hidroelectrica signed contract (similar to con- For the time being, the company confi rmed it was not interested tract with Energy Holding) with Euro-PEC for delivery of 174 GWh in listing at the stock exchange, which should be decided by the per year. In the same year, the company signed 10-year contracts shareholders. with Electromagnetica and Luxten for delivery of 72.8 GWh per year and 144.4 GWh per year, respectively. § § § General prosecutor’s offi ce concluded that Energy Holding has signed electricity supply contracts that endangered safety of national energy system. Electrica announced new investments (Romania) On the other hand, Energy Holding claims the Hidroelectrica ben- Electricity distributor, the Electrica, announced to invest 140 million efi ted by payment of 200 million euros in advance. According to euros for the construction and modernization of electricity grid in sources, Energy Holding, established by Bogdan Buzoianu in 2000th, 2007th. This was confi rmed by the privatization manager Catalin in 2004th and 2005th, signed various contracts that made losses to Stancu. the state budget. The minister of economy and trade in that period, Codrut Seres, was the fi rst one to denounce such contracts; yet later In the same time, in the next 3-4 years, Electrica intends also to build he became one of the accused in the Hidroelectrica case, in which power plans with overall power output of over 400 MW, Stancu con- nine people was accused for undermining the national economy. fi rmed. Among them, some 200 million euros will be spent for construction of 200 MW in wind farms. In 2005th, Energy Holding signed two contracts with thermal power producer, the Turceni, where the worth of the supply contracts In the related news, Minister of economy and trade of Romania, reached 160 million euros. The price paid was also below produc- Varujan Vosganian, earlier announced that privatization of electric- tion price, authorities claim. The same, under priced 4-year contract ity distributors and small hydropower plants (HPPs) should be com- was signed with thermal power plant Rovinari, where worth of the pleted this year, in the same time as the privatization of thermal contract was estimated at 100 million euros. The aforementioned power plants. In the same time, government adopted decision for contracts are to expire in 2008th. electrifi cation of some 68,000 non-electrifi ed households by the end of 2009th. For that purpose, some 150 million euros needs to According to minister of economy and trade, Varujan Vosganian, af- be invested. ter January 1st 2008th, the Hidroelectrica will be the only electricity § § § producer to sell electricity through direct contracts (some 40 % of its output and 10-12 % of overall electricity market), since Hidro- electrica signed those contracts before January 1st 2007th. Other Investigation on cheap electricity contracts, Hidroelectrica companies will be allowed to conduct electricity trading through lost 47 million dollars in favor of Energy Holding (Romania) OPCOM platform and BRM (Bucharest commodity exchange) platform. Minister expects that large customers will fi nd reasonable to sign long-term contracts in order to provide suffi cient amount of According to data of ministry of economy, in 2004th and 2005th, electricity. Minister also warned that Romania would be forced to electricity producer Hidroelectrica has lost some 47 million dollars use coal resources more effi ciently, since estimations showed that due to under-priced contracts signed with power trader Energy country has coal reserves for only 100 years. Holding. This was confi rmed by the resolution of prosecutors, which investigated the case. § § §

According to resolution, the average price paid by Energy Holding to Hidroelectrica was some 16.7 euros/MWh in 2004th, which was lower than average production price of some 21.5 euros reported EBRD acquired shares in E.ON Gaz Romania and E.ON by Hidroelectrica. In 2005th, Energy Holding paid 19.5 euros/MWh, Moldova (Romania) comparing to 24.7 euros/MWh of average production cots that year. According to above fi gures, cumulated loss of the Hidroelectrica In mid-April, European bank for reconstruction and development reached some 47 million dollars (36.5 million euros). (EBRD) signed the contract for acquiring 5 % shares in E.ON Gaz Ro- mania and E.ON Moldovoa, each. Ministry of economy and trade concluded that contract worth of electricity to be traded between two companies in the period of 10 EBRD will pay overall amount of 43 million euros for the shares. years should reach 922 million dollars. According to 10-year contact signed in January 2004th, the most of The EBRD exercised its right to acquire shares in two companies in Hidroelectrica’s output or 2.568 TWh per year should be delivered accordance to privatization contracts, where EBRD wants to consol- to Energy Holding. In 2005th, additional contract was signed for de- idate its operations in Romania and to contribute liberalization of livery of another 1.47 TWh per year. the energy sector. EBRD’s Director for energy pointed out that this was the fi rst bank’s partnership in natural gas sector in Romania. Energy Holding and Hidroelectrica signed additional contract in December 2004th, which established price of 24.57 dollars for year EBRD announced 25 new projects in Romania, where overall invest- 2006th and 28.07 dollars for 2013th, where those prices are to be ments should reach 400 million euros, EBRD Director for Romania applied to annual amount of 4.38 TWh. confi rmed. At least two projects refer to the renewable energy sources. So far, EBRD has invested 3.5 billion euros in Romania in over 190 projects.

16 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

During the occasion, vice president of E.ON Energie confi rmed the EPS claims the long-term contract was not harmful for company is interested for new investments in Romania. EPCG (Serbia)

The electricity distributor and supplier, E.ON Moldova, expressed Commenting the latest claims of offi cials from Power utility of Mon- interest for purchase of thermal power plants (TPPs) in Suceava tenegro (EPCG), regarding the unfavorable terms in long-term con- and Botosani. E.ON bought majority stake in Electrica Moldova in tract for lease of hydropower plant (HPP) Piva, the management of 2005th for 31.37 million euros in cash and invested another 68.6 EPS rejected those claims as groundless. million euros for the capital stake increase at 51 %. E.ON Moldova has 1.3 million customers, and market share of some 8 %. EPCG earlier commented that ratio peak/band electrical energy § § § set in the contract was too low. As a reminder, HPP Piva, owned by EPCG, delivers peak electrical energy to EPS, which in return, delivers constant electrical energy to EPCG at ratio 1.41:1.

EMS submitted transmission system rules for approval EPCG claims it could achieve better deal in power exchanges in Eu- (Serbia) rope.

In mid-April, Serbian transmission system operator (EMS) has sub- Momcilo Cebalovic, the director of PR department of EPS, believes mitted Transmission system rules to Regulatory energy agency that contract was favorable for both EPS and EPCG. According to (REA) for approval, which was in accordance to Energy law. him, if EPCG wants to sell peak electricity through power exchanges, it would be also forced to buy constant electricity at market prices. At the proposal of REA, EMS should launch public debate regard- In the same time, EPS confi rmed that EPCG did not send any offi cial ing new Rules. For that purpose, starting from April 20th, the Rules request for reconsidering or canceling the contract. are available at the offi cial site of EMS at http://www.ems.co.yu/ stranice/regulativa/index.htm. According to announcements, EMS Cebalovic confi rmed that EPS delivers some 1 TWh of electricity to would organize public presentation of new Rules and public debate EPCG on the basis of the long-term contract. He also said that two in the fi rst half of May. companies have resolved disputable issues regarding natural electricity exchanges, i.e. delivery of electricity surpluses of EPCG to EPS, § § § where this amount is limited at 165 GWh.

§ § §

12 billion tons of coal reserves in Kosovo province (Serbia) World Bank approved the start of the project for new According to the results of the latest researches jointly conducted power plant (Serbia, Kosovo) by Faculty of mining and geology in Belgrade and Tekon Company, the coal reserves in Kosovo are estimated at 12 billion tons. The worth of that coal, converted in tons of oil equivalent, is 500 billion According to the statement of interim ministry of energy and min- dollars, experts said. ing of Kosovo (MEM), the World Bank (WB) gave the green light to the Steering committee to start negotiations regarding the signing Province of Kosovo has 76 % of overall coal reserves in Serbia. Al- the contracts with legal and transaction advisors in the projects for though lignite in Kosovo has low quality, it is very suitable for com- construction of thermal power plant Kosovo C. mercial exploitation having in mind that certain deposits have been discovered at low depth. In the same time, the ratio of coal/tailings MEM believes that the same would be decided for the environmen- of 1:1.85 is considered as very favorable. tal and social advisors.

According to professor from Faculty of mining and geology, the lig- Signing the contracts with the consultants will be the start of prep- nite reserves in Kosovo are the largest of all in Europe. So far, only 2 aration of the tender documentation for selecting of the future in- % of overall lignite reserves in Kosovo had been exploited, he said. vestors in the project, MEM concluded.

Serbian experts pointed out that, having in mind current political § § § situation, Kosovo’s coal reserves will not be managed by the state of Serbia, but one of the multinational companies that applied in the tender launched by UNMIK. Several foreign companies have Va Tech and Alstom submitted bids in the tender for HPP announced serious plans for construction of thermal power plant Bajina Basta (Serbia) (TPP) Kosovo C, which would be able to produce 13 TWh per year. This is far above estimated maximum annual electricity consump- The Austrian Va Tech and French Alstom are the two companies that tion in Kosovo of 4 TWh, experts said. submitted bids in the tender for renewal of hydropower plant (HPP) Bajina Basta (360 MW). Experts also said that despite the revitalization projects, for which hundreds million euros was invested, electricity production in Ko- The tender for renewal of all four units in the HPP was launched sovo did not reach even 50 % of production achieved while Power in December last year, where tender documentation was also ac- utility of Serbia (EPS) managed power plants in the province. quired by Voith Siemens, GE Energy, Koncar and ABB AG, which did § § § not submit bids.

The winner in the tender could be decided in the end of June, after which the Power utility of Serbia (EPS) could start negotiations with the fi rst ranked bidder, general manager of EPS, Vladimir Djor- djevic confi rmed. He said that preparations for 46 million euros 17 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

worth project would last for a year. 30 million euros will be provided Company / EBRD, related Romania through the loan of KfW bank, while the rest will be provided by organization: EPS. Lasi District Heating Project Content: This Invitation for Tenders follows the General Pro- The project could start in 2009th and it should be fi nished in 2012th, curement Notice for this project which was pub- where overall power output of the HPP should be increased at 400 lished in Procurement Opportunities, Ref: 5189- MW. GPN-35162 on February 06, 2006 S.C. Centrala Electrica de Termofi care Iasi (CET) S.A., Head of EPS announced that, apart from renewal of HPP Bajina hereinafter referred to as “the Purchaser”, intends us- Basta and Djerdap 1, EPS would revitalize several other HPPs. The ing part of the proceeds of a loan from the Europe- project papers for renewal of HPP Zvornik (100 MW) have been pre- an Bank for Reconstruction and Development (the pared, while HPP Vlasina (100 MW), and smaller HPPs Ovcar Banja Bank) for the fi nancing of the project: Iasi Municipal- and Medjuvrsje would be revitalized. Aforementioned HPPs are old ity District Heating Rehabilitation. between 35 and 50 years. The Purchaser now invites sealed tenders for tendering from suppliers for the following contract to § § § be funded from the proceeds of the loan for:

LOT I – The Procurement of the pre-insulated system elements for the primary connection, second- Signing the contract for payment of clearing debts with ary network – heating and for recirculation and Russia, most of the funds to be invested in energy sector domestic hot water secondary network, associated (Serbia) and connected services for the rehabilitation of TS 10, 11, 12, 1, 14, 15 Cantemir and TS 101 Tudor In the end of April, Serbia and Russia have signed the agreement for Vladimirescu. About 17,200 m steel pre-insulated payment of 288.5 million dollars of clearing debts of Russia toward system elements of Nominal Diameter between 32- 300 and 14,800 m fl exible pre-insulated system ele- Serbia. ments between 1”-3” shall be delivered according to the Schedule of Prices ; Russia will pay the debts by investing 100.5 million euros for renewal of the largest hydropower plant (HPP) in Serbia, the HPP Djerdap LOT II – The Procurement of the pre-insulated sys- I, and by write-off of 188 million dollars of Serbia’s debts for deliv- tem elements for the primary connection, second- ered natural gas by Russia. ary network – heating and for recirculation and domestic hot water secondary network, associated The renewal of HPP Djerdap I will last six years, starting from 2008th, and connected services for the rehabilitation of TS where each year, one unit will be revitalized. The project will be 1, 2, 3, 4, 5, 6, 7 Alexandru cel Bun. About 24,000 m carried out by Russian company Silovie Masini, which already pro- steel pre-insulated system elements of Nominal Di- duced quarter of the necessary equipment. Silovie Masini installed ameter between 32-300 and 20,200 m fl exible pre- original equipment in the HPP Djerdap 1 in 1970s. insulated system elements between 1”-3” shall be delivered according to the Schedule of Prices Some 20 % of the project will be entrusted to local companies. The renewal will prolong operational life of 35 years old plant by 35-40 LOT III – The Procurement of the pre-insulated sys- years. tem elements for the primary connection, second- § § § ary network – heating and for recirculation and domestic hot water secondary network, associ- Tenders: ated and connected services for the rehabilitation of TS 10, 13, 14, 15, 16 Dacia and TS 1 and 2 Tudor Vladimirescu. About 21,400 m steel pre-insulated Electricity system elements of Nominal Diameter between 32- 300 and 19,200 m fl exible pre-insulated system ele- Company / EAR, related Bulgaria ments between 1”-3” shall be delivered according to organization: the Schedule of Prices Plovdiv – Svilengrad Railway Electrifi cation and Upgrading of Corridors IV and Deadline: 7 May 2007 at 10:00, Lasi time IX; Signalling, Telecommunication and SCADA Systems Works for the Whole Line Contact: Centrala Electrica de Termofi care Iasi (CET) S.A. Contact name: Mrs. Buzea Doina Content: The scope of the contract includes the design, sup- Address: Calea Chisinaului, nr. 25 IASI ply, installation, testing and commissioning of the Postal code: 700265 signalling and telecommunication systems works IASI, Romania, Tel, Fax: +40-232-231675 including the provision of SCADA, of the whole rail- EMAIL: [email protected] way line Plovdiv - Svilengrad – Turkish/Greek borders. The contract will be in accordance with FIDIC Conditions of Contract for Plant and Design-Build for Electrical and Mechanical Plant, and for Building and Engineering Works designed by the Contractor, fi rst edition 1999 (FIDIC Yellow Book). Deadline: 12:00 Local Bulgarian Time on 31st May 2007 Contact: Mrs. Nelly Yordanova Head of Co-ordination of Programmes and Projects Direc- torate Ministry of Transport 9 Diakon Ignatii Street, 1000 Sofi a, Bulgaria Fax No.: (+359 2) 9409-795

18 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Company / Company / EBRD, related Romania NEK, related Bulgaria organization: organization: Iasi District Heating Project Bridge Financing for the Belene NPP Project Content: This General Procurement Notice (GPN) updates the Content: Natsionalna Elektricheska Kompania EAD has an- fi rst GPN for this project published in Procurement nounced a tender to raise debt fi nancing in the Opportunities, on 6 February 2006 with the Ref: amount of MEUR250. This credit facility will be used 5189-GPN -35162. to fi nance the design, procurement of equipment S.C. Centrala Electrică de Termofi care (CET).Iaşi S.A. and civil works (construction and erection works) has received a loan from the European Bank of Re- under the Project for Construction of NPP Belene construction and Development and intends using during the fi rst year of its implementation. This the proceeds for refurbishment of the city district period is planned for implementation of the fi rst heating. phase of the Project that mainly covers design and The Project, which has a total estimated cost of preparatory works and within this period of 1 year about €31.8 million, proposed to be fi nanced by the NEK in its capacity as the company responsible for Bank, the Swiss Government and S.C.CET Iasi S.A, the development of the Project will complete the will require the procurement of the following goods process of its structuring. The purpose of this credit and works: facility will be to play the role of bridge fi nancing - Supply and Installation of thermal modules (ex- until the required fi nancial resources are provided pected to be partly donor funded) for the complete implementation of the Project for - Supply and Installation of the equipment in the construction of NPP Belene. Therefore NEK EAD as Central Sub-stations, including the automation Borrower intends to repay entirely the credit im- equipment (expected to be partly donor funded) mediately after the fi nancial close of the Project is - Rehabilitation Works for the Central Sub-stations, achieved or to keep the credit on its balance sheet including Buildings Rehabilitation with option for long term repayment. The an- - Rehabilitation Works for the Heat Distribution Net- nouncement is published on the page of the Public work Procurement Agency http://www.aop.bg and in the Tendering for the above is expected to start in the Supplement to the Offi cial Journal of the European 1st quarter 2007. Union http://ted.europa.eu. The documents for par- Contracts to be fi nanced with the proceeds of a loan ticipation in the public procurement procedure may from the bank will be subject to the Bank’s Procure- be obtained at the Head Offi ce of NEK EAD or via ment Policies and Rules and will be open to fi rms e-mail upon submission of a document evidenc- from any country. The proceeds of the Bank’s loan ing payment of the documentation fee of 500 Euro. will not be used for the purpose of any payment The payment may be made either at the pay-offi ce to persons or entities, of for any import of goods, if of NEK EAD or by bank transfer to the NEK account: such payment or import is prohibited by a decision IBAN: BG35KORP92201400534102, BIC: KORPBGSF of the United Nations Security Council taken under in Corporative Commercial Bank AD. Chapter VII of the Charter of the United Nations or Contact: Yulian Kiossev, tel. (+3592) 9263490 under a law of offi cial regulation of the Purchaser’s [email protected]. country.

Deadline: 25 Apr 2008 at 24:00, Iasi time Company / EBRD, related Bosnia and Herzegovina Contact: Centrala Electrica de Termofi care Iasi ( CET) SA Project Im- organization: plementation Unit PROCUREMENT OF ELECTRICAL METERS, ASSOCIATED CURRENT TRANSFORM- Contact name: Mrs. Buzea Doina ERS AND PTSN MODEMS Address: Calea Chisinaului Street, no. 25 Iasi; Postal code: 700265 Iasi, Romania Phone: +40-232-231675 Fax: +40- Content: This Invitation for Tenders follows the General Pro- 232-231675 curement Notice for this project which was published on EBRD Procurement Opportunities on No- Company / vember 11th, 2005. KEK, related Kosovo organization: JP ELEKTROPRIVREDA BOSNE I HERCEGOVINE – d.d. INVITATION TO BID FOR SUPPLY OF ENERGY FOR THE PERIOD 16st June 2007 SARAJEVO hereinafter referred to as the Purchaser, until 31st March 2008 intends using part of the proceeds of a loan from the European Bank for Reconstruction and Devel- Content: The - Kosovo Energy Corporation j.s.c. (KEK) is invit- opment (the Bank) towards the cost of Electrical ing companies to submit Bids for the supply of meters, current associated transformers and PTSN Electrical Energy, for the period 16st June 2007 until modems. 31st March 2008 for Korporata Energjetike e Kos- The Purchaser now invites sealed tenders from all oves j.s.c.(KEK) in Kosovo. interested Suppliers and/or Manufacturers for the Ms. Edita Kryeziu Procurement Offi cer KEK j.s.c. following contract to be funded from part of the Str. Mother Theresa nr.36 proceeds of the loan: Prishtina, Kosovo Supply of electrical meters for households – 23.100 The tender documents are available on the KEK (twenty three thousands and one hundred) pieces, web-site www.kek-energy.com ,or on request elec- electrical meters for other consumption – 1.117 tronically from the following email address: (one thousand one hundred and seventeen) pieces, [email protected] current transformers 0.4 kV -711 (seven hundred Other information related to the tender can be ob- and eleven) pieces, current transformers 10(20)kV-9 tained at www.kosovatenders.org, and www.ks.gov. (nine) pieces and Communicator with PSTN modem net/prokurimi (please refer to the Contact Notice). – 24 (twenty four) pieces. Tendering for contracts to be fi nanced with the pro- Deadline: May 11th, 2007 at 14:00 hours, Kosovo time. ceeds of a loan from the Bank is open to fi rms from Contact: Ms. Edita Kryeziu Procurement Offi cer KEK j.s.c. any country. Str. Mother Theresa nr.36 Prishtina, Kosovo Deadline: 11 May 2007 at 12:00, Sarajevo time

19 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Contact: Mr. Nedeljko Despotović, PIU Director Tel.+387 33 751 Company / EBRD, related Romania 030 Fax.+387 33 751 033 e-mail: n.despotovic@elektro- organization: privreda.ba Timisoara District Heating - Works and Consultancy Content: CLT Colterm S.A. (“Colterm” or the “Company”), the Company / EAR, related Serbia organization: district heating company owned by the City of Timi- soara, has applied for a loan from the European Bank ENERGY COMMUNITY OF SOUTH EAST EUROPE (APL) PROGRAM-SERBIA AND for Reconstruction and Development (the “Bank”) for MONTENEGRO COMMPONENTSERBIA PROJECT the modernisation of the municipal district heating Content: Invitation for Bids follows the General Procurement system. The Company intends using the proceeds of Notice for this Project that appeared in Develop- the loan for the installation of new gas turbine units ment Business, issue no.666 of 16.November 2005. of 20 MW gross electricity production with a 29 MW 2. Republic of Serbia has received a credit from the thermal output and for district heating and corpo- International Development Association toward the rate management consultants. Colterm will be the cost of ENERGY COMMUNITY OF SOUTH EAST EU- implementing agency. ROPE (APL) PROGRAM-SERBIA AND MONTENEGRO The proposed project, which has a total estimated COMMPONENT-SERBIA PROJECT, and it intends to cost of EURO 22.5 million, will require the procure- apply part of the proceeds of this credit to payments ment of works and services for the following com- under the Contract for: ponents: Procurement of equipment for 110 kV transformer (a) supply and installation of gas turbine units; substations: Maèvanska Mitrovica and Arilje: (b) procurement and implementation supervision; Lot 1: Transformers;and, (c) corporate development programme (donor fi - Lot 2: Additional equipment; (HV and MV equip- nanced) ment, protection and control, measuring transform- Contracts to be fi nanced with the proceeds of a loan ers and surge arresters). from the Bank will be subject to the Bank’s Procure- ment Policies and Rules and will be open to fi rms High voltage equipment: from any country - At least 60 pieces of circuit breakers (single phase Deadline: 21 Aug 2007 at 24:00, Timisoara time and three phase) at 123 kV, or above - At least 60 pieces for disconnections (single pole Contact: Aurel Matei , Deputy General Manager Colterm S.A. Str. Ep. Joseph Lonovici nr. 4 and three-pole) at 123 kV, or above 300092, Timisoara Romania - At least 100 current transformers (single pole) at Tel: 0040 256 434 614 Fax: 0040 256 434 616 123 kV or above Email: [email protected] - At least 100 Inductive and Capacitive voltage transformers (single pole) at 123 kV or above Company / - At least 100 complete Surge Arrestors (single pole) EBRD, related Romania organization: at 110 kV or above Protection and Control Equipment: CFR TRACTION ENERGY NETWORK MANAGEMENT PROJECT - At least 100 numerical distance protection relays; Content: This notice updates the General Procurement Notice - At least 100 transformer diff erential relays used for published on Ebrd Website dated 22nd July 2005 power transformers, under reference 5104-GPN-36043. - At least 20 busbar and breaker failure protection relays. CFR SA and its subsidiary CFR Electrifi care have re- Deadline: 31 May 2007, at 10.00 hrs, local time ceived a loan from the European Bank for Recon- struction and Development and intends to use its Contact: Nikola Rakic dipl.el.ing. Street Address: Carice Milice 2 proceeds towards the cost of a project to continue Floor/ Room number: 5-th fl oor, 6. modernisation and introduce cost-savings meas- City: Belgrade ures in management of its traction energy network. ZIP Code:11000 The proposed project, which has a total estimated Country: Republic of Serbia cost of EUR 27 million equivalent (EUR 22.5 m from Tel: +381 11 2620 770 Facsimile number: +381 11 2627 075 the Bank and EUR 4.5m in VAT and other taxes), will email: [email protected] require the procurement of the following goods, works and services; Company / KESH, related Albania organization: 1. Supply and installation of equipment sets consist- ing of traction substations, switching equipment, Purchase individual boxes (IB) measurement panels (boxes) with current trans- railway station distance control equipment, and former and auxiliary material of mounting individual boxes central dispatching equipment and communication Content: Lot I: Purchase individual boxes 3F and mesuare- facilities; ment panels(boxes) with current transformer. 2. Supply of catenary maintenance vehicles; and Loti II:Purchase individual boxes 1F and auxiliary 3. Consultancy services for contract supervision. material of mounting individual boxes. Tendering for the above contracts started in the sec- Limit fund 837’396’360 leke divisions into Lots ond half of 2006. Lot I: Limit fund 239’110’960 leke Deadline: 24 Jul 2007 at 24:00, Bucharest time Lot II: Limit fund 598’285’400 leke Contact: Mr. Tiberiu Angelescu, Director of Foreign Financing Direc- Deadline: 18.06.2007 at:13:00 hrs, local time torate Contact: +355 4 228 349, + 355 4 241 984 Compania Nationala de Cai Ferate CFR – SA 38, Dinicu Golescu Blvd., 3rd fl oor, room no. 26 010873 Bucharest 1 Romania Tel.: +40 21 224 84 06 Fax: +40 21 222 14 45

20 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Company / Company / EBRD, related Bulgaria EBRD, related Romania organization: organization: Kozloduy International Decommissioning Support Fund Design, Construction and Commissioning of the 390 Km Agadyr-YuKGRES Sec- tion of 500 KV Second Transmission Line of Kazakhstan North-South Transit Content: The Kozloduy International Decommissioning Sup- Consulting Services Loan: Management and Monitoring Of Construction Con- port Fund (KIDSF) has been established and admin- tract Implementation Progress istered by the European Bank for Reconstruction and Development (EBRD). The purposes of this Fund Content: The Kazakhstan Electricity Grid Operating Com- is to fi nance or co-fi nance the preparation and im- pany (KEGOC) has received a loan from the Euro- plementation of selected projects and the provi- pean Bank for Reconstruction and Development, sion of technical assistance necessary to support and it intends to use part of the proceeds of the the decommissioning of Units 1-4 of the Kozloduy loan for payments under the contract for consult- NPP; measures in the energy sector which are con- ing services for Management and Monitoring of sequential to the decommissioning; and assist the Construction Contract implementation process. necessary restructuring and modernisation of the The assignment is expected to be carried out in energy production, transmission and distribution three Phases as described below. sectors and improve energy effi ciency. Phase I 1.1 Supervision of quality assurance by Contrac- The objective of this General Procurement Notice is tor and PIU during implementation of survey to give note on a forthcoming Project Management work and design estimates. Consultancy Service assignment for site selection, 1.2 Quality and the accepted technical solutions design, safety assessment, construction and com- assessment during elaboration of design esti- missioning of National Radioactive Waste Disposal mates. Facility, and for carrying out associated engineering, procurement and other services. 1.3 Final review and approval of the made up design estimates for the construction of 500 kV OTL The process for construction of the National Radio- 500 kV Agadyr SS– 500 kV YuKGRES SS. active Waste Disposal Facility in Bulgaria formally Phase II started on 25.07.2005, by the Decision 683 of the 2.1 Managerial and monitoring support during Bulgarian Council of Ministers. This decision em- contracting. powers State Enterprise “Radioactive Waste” to con- 2.2 Analyses of the results of the tests perform- struct and commission National Radioactive Waste ance for the quality conformance of the equip- Disposal Facility by the end of year 2015. ment and materials supplied under the project to the quality and technical characteristics operated On 05.05.2006, State Enterprise “Radioactive Waste” together with KEGOC JSC specialists. Tests results obtained Permission for site selection of the facility. evaluation. 2.3 Quality assurance surveillance by the Con- The invitation for Expression of Interest for the contractor and PIU during implementation of the sultancy service is expected in May 2007. Firms from construction and erection works. eligible countries, which qualify under the Procure- 2.4 Environmental measures monitoring during ment Policies and Rules of the EBRD and the KIDSF implementation of the construction and erection will be invited for submission of proposals. works. The eligible countries as at 1 February 2007 are: the 2.5 Verifi cation of implementation according to European Union member states, Switzerland and the PIP and review of any changes to the PIP. the EBRD’s countries of operations. 2.6 Verifi cation of the proper use of available funds. Contact: Mr Nikolay Lambev Project Manager 2.7 Submit periodic activity reports as may be re- State Enterprise “Radioactive Waste” quested from time to time by KEGOC. 51 James Brouchier blvd, Floor 18 Phase III 1407 Sofi a 3.1 Confi rmation of the Project Completion in Bulgaria Tel.: +359 2 962 49 48 accordance with the PIP and preparation of a Fax: +359 2 962 50 78 Project Completion Report E-mail: [email protected]

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21 Balkan Energy NEWS, e-journal Issue No: 2007-IV/2 - issue covers period 16.04.2007-1.05.2007

Coal, Gas and Oil

Company / INA, related Croatia organization: Gaskets for Motocompressor IR KVR 410 & 616 according to technical specifi - cation no. 049/07-SP Deadline: May 17, 2007., until 11,00 hours Contact: Mr.M. Kuzmanić , tel: +385-1- 64 51 089, fax +385-1-64 52 048) every working day from 10 to 12 a.m., local time

Company / PPC. related Greece organization: SUMMARY INQUIRY DYKPP-904702 Content: Public Power Corporation S.A. launches Inquiry No DYKPP-904702 concerning the supply of 300.000 metric tons of steam coal, to be delivered at the facilities of Steam Power Plant (SES) of Kardia in the Kozani - Ptolemais area at a monthly rate of 25.000 metric tons. Unsealing of Tenders shall take place on Tuesday, April the 17th, 2007, at 11:00 a.m. at the offi ces of the Generation Materials - Fuel and Purchasing Department, 56, Solomou Street, 10682 Athens, GREECE (6th fl oor). Copies of Inquiry DYKPP-904702 are available in greek language , free of charge, between 08:00 and 13:00 on working days, at the offi ces of Generation Materials - Fuel and Purchasing Department, 56, Solomou Street, 106 82 Athens, GREECE (5th fl oor), tel. +30-210-3323800 / +30-210-3323767.

Company / EAR, related Greece organization: Information System for the Gas Market Operator Content: The purpose of this project is the manufacture (de- tail design and development of customised elements related to the application software), delivery (of software, hardware, communication equipments and documentation), installation (including cable laying and connections), commissioning (including all necessary activities related to the upgrading, interfacing, integration, checking, testing, supervision, experimental operation) and training by the Contractor of the required goods Deadline: 3 May 2007, 13.00 hours local time Contact: Central Finance and Contracts Unit, Ministry of Public Fi- nance Blvd. Mircea Voda, no. 44, intr. B, sector 3, Bucharest Fax : +40 21 – 326.87.30/ 326 87 09 Phone : +40 21 – 326 55 55 (switchboard)