Client: Pöyry

Country: Macedonia

Period: January 2011 – April 2011 (4 months)

Name of Project: Boskov Most Hydro Power Project - Technical Due diligence to the        Tender Documentation

Origin of funding: European Bank for Reconstruction and Development (EBRD)

Project description and VeVe Group engagements

AD Elektrani na Makedonija (ELEM) is planning to construct a 70MW hydro power plant, Boskov Most, in FYR Macedonia. The European Bank for Reconstruction and Development (EBRD) is considering providing a sovereign-guaranteed loan of up to EUR 65 million that, along with a EUR 19 million equity investment by ELEM, would fund the construction of the Project.

ELEM has procured the preparation of an initial design for the Project based on a number of technical, geological and hydrological studies over the preceding years, however, further technical due diligence is needed on the Project.

The EBRD engaged a consultant to assist with the technical due diligence and contracting and procurement strategy. The objectives of the assignment of VeVe Group as sub-consultant are as follows:

VeVe Group engagements

A review and comment on the overall adequacy of the proposed Project and the justification for it follows:

• Permits and authorisations – permitting status, the list of permits and authorisations required for the Project development, construction and commissioning; examination of the existing permits for the local use of water resources and technical requirements, project timeline and bankability.

• Project risk analysis – technical and operational risks, delays, government approval/permitting issues, off-take agreement, cost overrun, management and financial risks, etc.