Largest Energy Investment in Decade Begins in North Macedonia

Natural gas transmission operator NOMAGAS Skopje and Kumanovo-based construction company Rapid Bild signed an agreement Wednesday on construction of the gas interconnector with Greece, i.e. the Gevgelija-Negotino section which is 68 km long, expected to be fully completed within 22 months and put into operation in 2027, CE Report quotes MIA.

The construction of the interconnector is financed by the Government, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), and stands at EUR 59.9 million, i.e. EUR 12 million less than the initial price of the cancelled tender.

"By signing the agreement on the construction of the Macedonian section of the gas interconnector, we mark the beginning of the largest energy investment in the past ten years. It is an expression of our commitment to energy security, diversification of supply and protection of the interests of citizens and the economy. This is 68 km of modern infrastructure that will connect us with Greece, but more importantly, it will connect our country with European energy markets and values. This interconnector opens the door to new opportunities for citizens, the industry and local self-governments," Minister of Energy, Mining and Mineral Resources, Sanja Bozhinovska, said ahead of Wednesday's signing event at the Ministry.

She pointed out that today's signing of the agreement proves that when there is political will, regional trust, and professional commitment, the results are tangible and real.

"The project is the result of close cooperation with our partners from the European Commission, the EIB and the EBRD. With their support through grants, technical assistance and favourable loans, we have provided a financial structure for the implementation of this project. Thus, we will finally have an alternative entry for natural gas, we will have greater security, more sources and less dependence on a single supplier, which is the basis for true energy independence," said Bozhinovska, adding that natural gas will contribute to reducing pollution and is a step forward towards a healthier and better quality environment.

EIB country representative, Björn Gabriel, said the construction of the interconnector will boost integration of North Macedonia into the European energy market.

"EIB is financing both the Greek and the Macedonian sections of the gas interconnector through separate loans. For the Macedonian section, we finance EUR 28.9 million. We have mobilized additional non-repayable grants, in particular EUR 2.5 million to prepare the project technically, but also EUR 9.9 million in order for the EU to bring down the investment cost for the country in this project. I'm particularly glad also that today's contract is being signed with a Macedonian company - Rapid Bild, as this really showcases that Macedonian firms can actually be competitive in an open international procurement process," Gabriel said.

Head of the EBRD Office in the country, Fatih Türkmenoğlu, said this was an important project for the resilience of the country's energy infrastructure, adding that EBRD is happy to be part of it.

"We remain committed to expanding our activities in the country to foster economic growth," Türkmenoğlu said.

According to NOMAGAS CEO Muhamed Elmazi, the signing of the agreement formalizes the construction of one of the most important projects for the energy future and stability for both the country and the region.

"It is particularly significant that in just a few months we managed to complete all the procedures for the implementation of the project," said Elmazi, adding that the fact that the agreement is being signed with a domestic company shows the capacity and supply of the domestic market.

Toni Karanfilovski from the Rapid Bild company said it has not been easy to get to the signing of the contract, because there has been very strong competition from abroad.

"We managed to get the job because we offered the lowest price. We can promise that we will work hard, we will work dedicatedly, and we will focus as much as possible to finish the project in a quality manner and on time within the deadline set for construction. We can give that promise today, and we start work on the ground as of tomorrow, although we have already started developing the case and collecting documentation," said Karanfilovski.

In response to a reporter's question, he pointed out that the four main gas pipelines that have already been completed and put into operation, one of which is in Bulgaria, are a guarantee that the project will be completed on time.

"We are equipped, we are ready, and we have everything we need in our company, and we know our job. A risk of untimely completion of the project can only be untimely expropriation of some part of the route," Karanfilovski pointed out.