World Bank Loan for the equipment supply and construction of 10 110/ x kV Substations

19. April 2013. / News Serbia Energy

The consultant “AF Colenco” from Switzerland was informing the World Bank about the actions of EPS and about the way of their realization. –Realization of the loan was completed by the final deadline and all the contracts for the equipment supply were successfully implemented.

The loan of the World Bank for equipment supply for building and the construction itself of Substations of the voltage level of 110 kV, is an example of a very successful project, despite all the difficulties which this operation was facing in the past few years. From about 21 million dollars, how much was the value of the loan at the time of signing, EPS was granted about 13.5 million euros for the equipment supply for 10 110 kV Substations in three phases and hiring a consultant for monitoring of the realization of the Substations’ construction .

The loan was granted for construction and reconstruction of the electro-distributive 110/x kV substations,in order to create the conditions for the establishment of the electricity market, with the higher level of quality, quantity, reliability, efficiency of delivery and reduction of electricity loss. Many projects for the Substations were finished a long time ago, and handover or the final operations for some substations remain to be carried out.

In the first phase two new 110/x kV Substations, “Mačvanska Mitrovica” and “Arilje”, were built and in the second phase four the new ones “ Niš 8”, “Jagodina 3”, “Vranje2” and “ Mosna”. EPS was in charge of these works, while PE “Elektromreža Srbije” was in charge of the construction of 100kV power cables. The consultant “ AF Colenco” from Switzerland has informed the World Bank about all the actions of EPS and about the way of their realization.

According to Mr. Nikola Rakić ,the coordinator of the investment procurement in the EPS Department for Strategy and Investments., the works on the construction of the substations were financed by the Companies for Electricity Distribution on which territory they are being built.-Procedures of the equipment procurement, according to the regulations of the World Bank, are international tenders, and procurements of the operations, which were done by the Company, were carried out according to the Law on Public Procurement of RS-said Mr. Rakić. – Due to favorable conditions on the market of the electrical equipment and the delay in the loan implementation caused by excluding one supplier by the World Bank,  it came to savings and extension of the realization deadline. The use of the loan was extended until 30th June last year. Thus, the possibility to implement the third phase was created, i.e. 110/x kV Substations: “Inđija 2“, “Neresnica“and “ Ilićevo“. The equipment for the Substation of 110/10 kV ”Ribnica” in Kraljevo was also purchased subsequently by the annex of commercial contracts.

Our interlocutor points out that the loan implementation has been done according to the deadline and that all the contracts for equipment procurement were successfully carried out. He indicates also that those projects are energetically justified, necessary and that they are in the studies of the electricity distribution networks of EPS – From 1995 until 2005 total of seven new Substations of this type were put in operation on the territory of Serbia, so the importance of the project realization is clear – says Mr. Rakić – The average deadline for construction of 110/х kV Substation is two years, so the time period of seven years for building 10 SSs is acceptable.

The main influence on the slow construction of these Substations, according to Mr. Rakić, was obtaining of the construction and location permits, and there was a delay in the loan implementation for the period of one year. One of the difficulties was also a communication with the Electricity Network of Serbia, especially about the construction of the 110 kV supply line for the Substation “ Mosna”.

– Due to the construction of these 10 110 kV Substations, we realized that we achieved the lower prices by the separate procurement of the equipment and works, and that there is a bigger engagement of the EPS employees, in running a business, supervision, obtaining the documents from the state – says the coordinator of the investment procurements in the Department for Strategy and Investments of EPS.

– In this way, EPS has a detailed insight into the investments’ realization in the Company and “the good climate “in communication between EPS- the Company is being created. One of the advantages is also a possibility of the standardized approach to the investment construction.

In the Substation “Mačvanska Mitrovica“ bad voltage conditions as well as low reliability in supplying were recorded earlier, and there was more and more need for new capacities. This Substation has been operating since 2009 and the downtimes are reduced by 98%,the power increased by 33%, the number of consumers increased by 32 % and the losses reduced by 77 %.

– The supply of the 35 kV surrounding network has also been improved by the transformation of 20/35 kV. Total voltage conditions, reliability and supply security are significantly better and the development of the Sremska Mitrovica has been provided.- Mr. Rakić told us.– In the 110/35/10 kV Substation “Аriljе“, which has also been in operation since 2009, the downtimes are reduced by 96%, and the power increased by 20%. The number of consumers increased by 8% and losses are reduced even by 84 %.

Mr. Rakić explained that in the case of the Substation “Arilje”, the conditions for development of raspberry production and textile industry are better. The 110/35/10 kV Substation Niš 8 “has been in operation since 2011. Downtimes are reduced by 82 %. The power is increased four times, the number of consumers 4.8 times and losses reduced by 60%. In the case of  110/35/10 kV Substation “Vranjе 2“ which has been in operation since 2011, downtimes are reduced by 73, %. the power is increased by 50 %, and losses are reduced by 36 %. The construction of the new residential building and industrial development has been enabled, and the supply of the existing households has been improved.

The operation of the Substation “Ilićevo“, before reconstruction, was followed by a great number of failures, interruptions in the the consumers supply, big maintenance costs, as well as reduced level of safety.

–  There aren’t any failures that occurred until now due to wear of equipment. The level of manipulativeness at 110 kV, and the level of safety during the operation is higher-said Mr. Rakić.-The minor losses are expected, due to the network reconfiguration and implementation of the capacitor batteries at 35 kV. This Substation has been in operation since July last year. The supply is reliable and downtimes are reduced by 95 %. The power of the Substation is increased by 20% and number of consumers increased by 1. Losses are reduced by 7 %.

Recently, Substation “ Inđija 2“ has been put into operation, and it will take over the new consumers in the industrial zone. In this way the downtime will be reduced by 50 %, power will be increased by 33 %, number of consumers will increase by 33 %, and losses will be reduced by 33 %.

The 110/35 kV Substations  “Мosnа“,110/20 kV “Jagodina 3“ ,110/35 kV  “Neresnica“ and 110/10 kV “Ribnica“ are in the final phase of SS “Mosna“ was finished in 2011. The  reason why this substation hasn’t been in operation yet is the lack of the 110 kV transmission line “Majdampek 2 – Mosna“, 24 km long, which has existed for years in the investment plans of ENS, but it hasn’t been realized because of the problem regarding the compensation for cutting the forest on the route of the transmission line. The main reason for construction of the new 110 /35 kV SS is a significant improvement of electricity supply in the region of Djerdap around Donji Milanovac which, until now, has had many hours of downtime and often many daily dowmtimes in electricity supply, especially in winter, when snow and ice were tearing the existing 35 kV transmission lines, which were meore than 40 years old.

SS “Јаgodinа 3“is a new substation which replaced the existing 35/10 kV SS Јаgodinа 1 at the same location, and the beginning of its operation is expected soon. When this SS begins to work, downtime will be reduced by 42 %, and power will increased by 56 %. The growth of consumers’ number by 74 % is expected and reduction of losses by 54 %.

– This SS hasn’t been in operation yet due to extremely slow obtaining of the construction permit and its validity.- Mr. Rakić explained to us.

The construction of the SS “Neresnica” was planned because of better electricity supply of the wider area of the Municipality of Kučevo and that is an infrastructure basis of industry and tourism development of this area. When this SS is finished, the overload and low voltage problems will be solved, on the lines  35 kV, as well as 35/10 kV SS. Therefore, on the lines of the voltage level 10kV, loses are reduced by about 2 MW.

-The possibility of the connection of the new electricity facilities like SS 35/10 kV “Rabrovo”,while the reconstructed 35/h 10 kV SS “Кučevо“ could take an additional eight MVA of power-our interlocutor clarified.

– Downtimes will be reduced by 85% and losses by 82 %.

The period of putting this SS in operation depends on the Ministry in charge of issuing the location and building permits for construction of the power transmission line of 110 kV. It depends also on the consent of ЕNS to allow disconnecting and cutting of the 110 kV transmission line “Petrovac”-“ Majdanpek” in the period of the year with increased level of load, as well as on positive solution of the Commissions for technical admission.


The loan has been valid from February 2006. The grace period lasts for 10 years, the repayment period of 20 years in semi-annual installments starts on 15th September 2015. All the commercial contracts of equipment purchase for 10 110kV substations have been entirely realized. Five purchases have been realized in total, and seven contracts for equipment purchase have been signed and realized.

New “Ribnica“

By replacing the existing substation 35/10 kV, which was ruined by the earthquake  in Kraljevo 2010,by a new one,downtimes will be reduced by 95 %,the power will be increased by 72 % and the consumers’ number by 60 %,while the losses will be reduced by 92 %.

– The  new SS is being built at the location of the existing one, expanding on an adjacent parcel and it is planned  that the future substation takes over all the current consumers in the direction of Kraljevo and the villages of Žiža and Čibukovac- says Rakić. The new substation will be connected according to the principle “entrance- exit” by a double transmission line 110 kV ,which will be 3.5km long on the current one 110 kV “Kraljevo1”- “Kraljevo 2”.

Source;EPS kwh/Serbia Energy

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