Macedonia:Will Ukraine, Turkey and Macedonian companies carry out gasification in City of Skopje?

22. May 2014. / SEE Energy News

Until now three companies have submitted documentation for participation in the company choice process that will carry out gasification in City of Skopje, one of which is from Ukraine, one from Turkey and one from Macedonia.

Deadline for the public partnership award for financing, design, construction, management, maintenance and development of the distribution system for the natural gas transmission in the Skopje region, expires on 26th May.
According to unnamed sources, it will be even more companies interested in it, including the Italian company that is already present in the Bulgarian gas sector.

Among those who are officially interested to carry out gasification of the Macedonian capital, there is a turkey company “Aksa energy”, which is the second largest in the Turkey gas sector, and the largest private distributor of natural gas, which is composed of 20 gas distribution and over half a million users.

At the same time it is the electricity distributor and the largest independent electricity producer in Turkey, and among other things it is one of the wind park owners in Turkey with a total installed capacity of 131 MW. There is no data about other companies that are interested now in becoming partners of the State in this project. It is assumed for Macedonian firm to go with other partners from aboard, that meets the requirements for participation in the public bid.
Conditions for participation in the public call are that the company has 5 years of experience in the operation with distribution users and the total annual income of less than 40 MEUR per year.
The company selection that will become the partner of Macedonian state, as experts explained, will be done in the dialogue process, because it is a large and important state project. In the first phase will be discuss on what each company offers, then with one of them will be extended negotiations until the final selection ,which is expected to be made in September.
In the selection of signing agreement on public private partnership the main criterion will be the compensation height for connection to the distribution network that will pay the ultimate users, or connection fee, the amount of concessive compensation, experience in operating with distribution systems for natural gas in urban areas and the contract duration on the public -private partnership.

Since partner will have the task to build a primary and secondary natural gas distribution network, to invest in setting up connections to all end users, and to public institutions, residential and commercial customers, including equipment for measuring and regulating ( MPS), that distributes natural gas, to manage the distribution system, to take care of the maintenance and development of the distribution system and to invest in the renovation, and the purchase of equipment for the heat energy production in existing buildings.

It is estimated that this investment will cost about 100 MEUR. The contract duration of public -private partnership will be 20 years, after this period it will become the property of the Macedonian state.

Since distributor will have to build 170 km of network during the first five years and precisely 51 % in urban municipalities and 20 % in the suburbs. It is estimated the first customers will receive natural gas in 2016th.
Compensation which will pay anyone who wants to join the gas system will amount to 1.25 EUR per square meter of residential and useful area in commercial facilities. With gasification of Skopje region annually will substitute electricity equal to the annual production of the Energy Mining Complex (REK) Oslomej.

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