EDS

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.

The board at power utility PPC board has decided to proceed with a 1.8 million-euro capital injection into the utility’s North Macedonia-based energy firm EDS in order to bring to equilibrium a negative balance and fully maintain the firm’s 2.5 million-euro line of credit following a request by NLB, one of the electricity supplier’s banking partners.

The PPC board also decided to change the legal status of EDS from a single-member limited liability company (SMLLC) to a public limited company (S.A.), the intention of this move being to establish more effective control over the electricity supplier and bolster its negotiating strength when dealing with financial institutions.

The PPC board meeting, held yesterday, was the final session headed by outgoing chief executive Manolis Panagiotakis, who submitted his resignation shortly after the conservative New Democracy party’s victory in the July 7 legislative election. Panagiotakis is being replaced by Giorgos Stassis, formerly the CEO of the Enel corporate group’s Romanian subsidiary.

PPC bought EDS last year for a sum of 4.8 million euros. Prior to its acquisition by the Greek power utility, EDS, previously owned by the neighboring country’s deputy Prime Minister Koco Angjushev, was a limited liability company (LLC).

Since the acquisition, PPC has taken a series of initiatives in an effort to upgrade EDS to European standards.

North Macedonia universal supply tender a battle for EDS

PPC switches legal status of EDS venture, injects €1.8m