Archirodon

North Macedonia universal supply tender a battle for EDS

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EDS, a subsidiary of Greek power utility PPC, appears set to face strong competition in a tender offering a contract for North Macedonia’s universal electricity supply.

At least five more bidders have expressed interest in the tender ahead of tomorrow’s bidding deadline, sources have informed.

EDS, strongly supported by parent company PPC, intends to submit a highly competitive offer that would greatly undercut an 11.5 percent profit margin maintained by North Macedonia’s current universal electricity supplier, Austrian company EVN. It remains to be seen if rival bidders will do likewise.

Bidders face stricter participation terms in this tender compared to the previous procedure, staged five years ago. These include a working capital requirement of 40 million euros, a condition that could trouble EDS, as noted by officials in the neighboring country.

EDS, in a company statement released just days ago, has denied requesting changes to the tender’s terms, noting it intends to participate with a highly competitive offer significantly reducing the existing contract’s profit margin to the benefit of end users.

PPC and construction firm Archirodon, the only bidders in a tender staged by the North Macedonian government for the construction and operation of a 333-MW Cebren hydropower plant at the Crna Reka river, in the country’s southwest, and operation of an existing 116-MW Tikves hydropower station, also at this river, were initially announced  winners, but the tender ended up being cancelled.

North Macedonia gov’t holds back on hydropower plant deal

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The North Macedonian government’s apparent reluctance to complete an agreement with a consortium comprised of Greek power utility PPC and construction firm Archirodon for the development of the prospective Cebren hydropower plant, at the Crna Reka river, despite cabinet approval in September, has prompted various officials to suspect the neighboring country’s administration is seeking to put a brake on the agreement.

The North Macedonian government has been calling for additional terms, while, in most recent statements, Kaja Sukova, its environment and physical planning minister, suggested the consortium would be to blame if the agreement were not completed.

The consortium is raising objections about terms being discussed, while the deadline for completing the agreement has already been extended to mid-January, the minister noted.

The dispute concerns the ordering of the project’s concession contract and issuance of a water-usage permit. Archirodon wants the concession contract to precede the permit procedure, whereas the North Macedonian government is pushing for the opposite.

PPC and Archirodon submitted the only complete offer to a tender staged by the North Macedonian government for the construction and operation of the 333-MW Cebren hydropower plant and operation of an existing 116-MW Tikves hydropower station, also at the Crna Reka river, in the country’s southwest.

The Cebren hydropower plant, expected to offer annual electricity output of between 1,000 and 1,200 GWh, is planned to involve the neighboring country’s state-owned power producer ESM as a minority partner with a 33 percent stake. The project’s cost is estimated to reach one billion euro.

A total of 13 previous tenders held since 2006 for the Cebren hydropower plant have all proved fruitless. North Macedonia is entering an election year, increasing fears of further ambiguity regarding the project agreement’s prospects.

PPC-Archirodon’s Cebren hydropower project given gov’t approval

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The North Macedonian government’s cabinet has approved the prospective Cebren hydropower plant, at the Crna Reka river, a project awarded to Greek power utility PPC and construction firm Archirodon, in partnership for its development.

PPC and Archirodon submitted the only complete offer to a tender staged by the North Macedonian government’s environment ministry for the construction and operation of the 333-MW Cebren hydropower plant and operation of an existing 116-MW Tikves hydropower station, also at the Crna Reka river, in the country’s southwest.

The Cebren hydropower plant, planned to offer annual electricity output of between 1,000 and 1,200 GWh, will involve the neighboring country’s state-owned power producer ESM as a minority partner with a 33 percent stake. The project’s cost is estimated to reach one billion euro.

The PPC-Archirodon consortium must establish an agreement with ESM within three months, before beginning work on the project, expected to take seven years. The consortium also needs to complete a relevant study and secure necessary permits.

A total of 13 previous tenders held since 2006 for the Cebren hydropower plant had all proved fruitless.

North Macedonia hydropower plant offers in September, PPC-Archirodon set

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Power utility PPC and energy and construction firm Archirodon, in a partnership for North Macedonia’s prospective Cebren hydropower plant, at the Crna Reka river, face a mid-September deadline for binding bids.

The neighboring country’s state-owned power producer ESM, staging the tender, aims to have announced a preferred bidder by the end of the year.

The Cebren facility, planned to offer a capacity of between 333 and 458 MW and annual production of between 1,000 and 1,200 GWh, is expected to cost approximately 600 million euros.

The project is planned to be developed through a Public Private Partnership (PPP) with state-owned power producer ESM.

PPC and Archirodon are among nine of ten initial bidders who have qualified for the competition’s final round. The others are: ENKA-COLIN (Turkey); EDF (France); Cobra-Cobra Hidraulika (Spain); EVN-Verbund (Austria); Webuild SPA Italia-Salini (Italy); Gezhouba Group China (China); Power Construction Corporation of China (China); and Ozaltin-Yapi Merkezi (Turkey).

PPC eyeing Bulgaria, Romania, Serbia for RES investments

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Power utility PPC is looking to make its next major investment moves in the neighboring countries of Bulgaria, Romania and Serbia, solar energy and hydropower projects being a priority.

RES activity has soared in these three countries over recent years and is expected to continue.

PPC, which has not taken any investment initiatives abroad in quite a few years, anticipates it will be ready to announce details on major-scale solar farm projects in these countries towards the end of the year.

Bulgarian officials are making plans for 2.64 GW in new RES installations by 2030, of which 2.2 GW will concern solar farms, according to the country’s ten-year climate plan.

In Romania, the country’s 2030 projection is for investments reaching 5.2 GW in wind farm investments and approximately 5 GW in solar farms.

Serbia, possibly offering the biggest green energy investment opportunities among these three countries, will need between 8 and 10 GW in RES investments to replace coal-fired generation with a capacity of 4.4 GW by 2050, deputy energy minister Jovanka Atanackovic recently announced.

A first round of wind and solar project auctions is planned to take place in Serbia by the end of this year.

A month and a half ago, a partnership involving PPC and international contractor Archirodon advanced to the second round of a tender staged in North Macedonia for construction and operation of a major hydropower plant, Cebren, budgeted between 500 and 600 million euros and with a capacity between 333 and 458 MW.

PPC will continue to pursue this Cebren contract but its main focus will be on Bulgaria, Romania and Serbia and their solar energy project opportunities, sources informed.

 

 

PPC bids for North Macedonia’s Cebren hydropower plant

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Power utility PPC is among ten international bidding teams from the energy and construction domains that have submitted pre-qualification offers to a tender for North Macedonia’s prospective Cebren hydropower plant, an investment expected to require at least 500 to 600 million euros.

This preliminary stage of the tender concerns water usage licensing rights for hydropower output at the neighboring country’s Crna Reka river. Preliminary bids were opened yesterday.

A related committee to soon be assembled by the North Macedonian government will examine whether the bids submitted fully meet the tender’s requirements before qualifiers are invited to a second round for offers concerning the project’s development in a Public Private Partnership (PPP) with state-owned power producer ESM.

Besides PPC, which has teamed up with energy and construction firm Archirodon, the other nine bids were submitted by: EVN-Verbund (Austria); Gezhouba Group China (China); Power Construction Corporation of China (China); EDF (France); Eiffage-Waterlu-Andritz-Norconsult (France, Austria); Webuild SPA Italia-Salini (Italy); Cobra-Cobra Hidraulika (Spain); ENKA-COLIN (Turkey); and Ozaltin-Yapi Merkezi (Turkey).

The North Macedonian government plans to commission a consultant for preparations concerning the tender’s second round.

In previous years, more than ten tenders have been staged for the construction and operation of the Cebren hydropower plant, but all efforts have proved fruitless, for a variety of reasons.

Prime Minister Zoran Zaev’s administration has noted that a serious effort is being made for the project’s development, ascertaining the current tender will be successfully completed.

It is planned to offer an installed capacity of between 333 and 458 MW for annual electricity production of 1,000 to 1,200 GWh.

One of three Crete link bidding teams wants time or will exit

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ABB, the world’s biggest developer of power grid interconnection projects, has requested a further deadline extension greater than the one-month periods of additional time already granted twice for a tender concerning the Crete-Athens grid interconnection project’s engineering, procurement and construction of two converter stations and a GIS substation, energypress sources have informed. The tender’s current deadline is set to expire on October 31.

Both the Greek government and power grid operator IPTO appear determined not to accept any further deadline extension requests as this, they believe, would increase the risk of a project delay and, consequently, energy sufficiency issues on Crete.

Outdated, high-polluting power stations still operating on Crete soon need to be withdrawn.

ABB, which has joined forces with Greek maritime infrastructure construction and maintenance group Archirodon for the Cretan project’s tender, has cited the complexity of the project for the additional time the company appears to need. If a sizable extension is not granted, then ABB and project partner Archirodon will most likely withdraw from the tender, it is believed.

On the contrary, two other partnerships established for the tender, according to reliable sources, are preparing to submit their offers. Siemens is believed to have joined forces with Greek construction company TERNA and General Electric is working with Greece’s Mytilineos, according to sources.

The grid interconnection project’s development faces a tight schedule. IPTO chief executive Manos Manousakis told a recent conference the project will be launched early 2023, not at the end of 2022, as was previously believed.

PPC eyeing Dubai pumped storage hydropower project

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The main power utility PPC is preparing to submit an offer for the construction of a 250-MW pumped storage hydropower plant (PSHPP) in Hatta, southeast of Dubai City.

The project, estimated to be worth over 450 million euros, is planned to utilize water at the Al Hattawi dam in Hatta, near the UAE’s border with Oman.

PPC aims to take part in the project’s tender as the head of a consortium including Archirodon Construction (Overseas) Co Ltd. and Hitachi – Mitsubishi Hydro Corporation.

The project description includes construction of a higher-elevation reservoir with a storage capacity of 880 million gallons, 300 meters above the Al Hattawi dam, whose storage capacity measures 1.72 billion gallons of water. The dam lies 400 meters above sea level. The distance between the existing dam and prospective higher-elevation reservoir will be approximately 3 to 4 kilometers.

During off-peak hours, turbines are planned to pump water from the existing dam to the higher-elevation reservoir, utilizing solar energy.

Last June, DEWA, the state-run Dubai Electricity and Water Authority commissioned EDF, at a price of 15.8 million dollars, to prepare plans for the project, including design, geological, hydrygeological, environmental and excavation studies.  DEWA announced the completion of this stage in November.

An initial November 18, 2018 deadline has been extended to January 13 following requests by participants.

PPC and Archirodon, a Dutch group headquartered in Dordrecht, are joining forces for the first time following the signing of a MoU for a five-year partnership, announced last October.

Archirodon has maintained an international presence, offering EPC services, for approximately 60 years, including in the Middle East and North Africa regions.