Bajram Redzepi (NER): Not only will Vodno not lose, but it will also have many benefits
Where will the route of the gas pipeline section from Skopje to Gostivar be definitely running, through Tetovo, through the Park forest Vodno, as proposed by the Government or through another wider and much more expensive route, as proposed by the NGOs and how does the gas network develop throughout Macedonia, in general the gas interconnection with the neighboring countries, in the interview for MIA, we are talking to the Director of National Energy Resources (NER) Bajram Redzepi.
Mr. Redzepi you have recently took up a new position and you immediately faced reactions from the non-governmental organizations that oppose the construction of the main route of the gas pipeline through the Park forest Vodno. Do you destroy Vodno with the construction as they blame you?
- Very often, the words “Vodno is destroyed” were used. I think the word “destroy” is far from being adequate. In reality not only will Vodno not lose, but it will also benefit from this project. We had a complete understanding of the concerns of the non-governmental organizations, the citizens and the City of Skopje and we are glad that the awareness among the citizens is increasing, which is really good news. Therefore, we had a very productive communication and cooperation with them and as a result, the Government decided the construction of the gas pipeline section Skopje-Tetovo-Gostivar, which is planned to be completed to Ohrid, to be continued along the same route, but with several changes and measures.
It is predicted to reduce the width of the working area from 25 to 10 meters and to alter the route at the very top of Vodno where the high forest is located. The newly proposed route will be along an existing path and an existing road, it is planned to extend from left and right side by several meters and by doing this even larger cutting of Vodno forest will be avoided, which according to the analyzes of the public company “Parkovi i Zelenilo Skopje” is about 1400 cubic meters of trees. The Government decided to compensate several timesthe cut forest with afforestation in this area and return to its original state in a few months.
It should be clear that apart from cutting that number of trees, Vodno will have no other negative impacts on the environment, because the pipeline will be over 1 meter underground and within a few months the place where the gas pipeline passes will not be recognized. This can be proven and you can see it if you visit the already built sections where on the spot you can make sure that nothing suggests that construction activities were carried out on the place, not considering the stakes that we put in order to mark the route.
Where exactly does the route pass and what will be the benefits you mentioned?
The route from this section is being built on the south side of Vodno, which is largely not forested. From Sopiste it goes to the top of Vodno, along the southern side and descends to Matka.
There will be multiple benefits. A much larger area will be reforested than cut, there will be a very nice and flat path that will be used for hiking and the belt that will be made will serve as an obstacle in case of fires.
In addition, bringing gas in these regions will be an absolute replacement for the use of wood for heating and thus millions of cubic trees in this region will be saved and also in many other regions in the country that are now cut and used for heating.
Have non-governmental organizations agreed on the proposed changes to the route and the measures envisaged?
I was positively surprised by their creative ideas and suggestions and several changes were made precisely on the basis of their suggestions. But the prevailing opinion among them is that an alternative route should be sought.
Which alternative route is offered by the non-governmental organizations?
They think that a better variant is the route to be built along the northern ring road of Skopje or along Skopska Crna Gora. But at this stage such a radical change is not rational and is not possible. It is based on the extensive analysis we made and we sent it as information to the Government, which, unlike the non-governmental organizations, is responsible to the contracted authorities and financial institutions and is especially held responsible in case of high financial implications.
Why is it impossible to change the route?
First of all, that section is a better variant in environmental terms. Secondly, the project has an effective environmental decision, an effective building permit, a feasibility study has been made and all legal and formal procedures have been carried out.
The change is not rational because the project will be prolonged at best in 4 to 5 years and it has already been realized at the level of 23% of the entire section. The expropriation procedure is underway, the estimates have been made, proposals have been submitted to the Property and Legal Affairs Office and there are already paid parcels. According to our analysis, the changes will cost the citizens over EUR 20 million.
In addition, the change is not possible because in 2015 the state was indebted in Deutsche Bank and Erste Bank with very strictly defined rules and obligations and the repayment of the loan should begin next year. In 2016, construction and supervision contracts were also signed with strict rules and obligations.
The change is not rational because the project will be prolonged at best in 4 to 5 years and it has already been realized at the level of 23% of the entire section. The expropriation procedure is underway, the estimates have been made, proposals have been submitted to the Property and Legal Affairs Office and there are already paid parcels. According to our analysis, the changes will cost the citizens over EUR 20 million.
In addition, the change is not possible because in 2015 the state was indebted in Deutsche Bank and Erste Bank with very strictly defined rules and obligations and the repayment of the loan should begin next year. In 2016, construction and supervision contracts were also signed with strict rules and obligations.
The proposed changes to the route from NGOs will surely bear severe consequences both from financial aspect and from the aspect of the future development plan for gasification. But even if the Government ignores all these legal and contractual obligations and decide on that change and leave the whole Polog region and other regions to be heated on wood and the factories to work on expensive electricity, what is the certainty that after 5-6 years there will be no other non-governmental and civic associations that may have even stronger arguments and will oppose the newly proposed route.
What are your priorities in the upcoming period?
The route from Klechovce to Stip was built with the Russian debt and the section from Stip to Negotino is being built with the credit from Deutsche Bank and Erste Bank. At the moment, the section from Negotino to Bitola and the section from Skopje to Gostivar with a branch to Tetovo are being built. Currently, Macedonia has a gas interconnectiononly with Bulgaria at KrivaPalanka and that is a gas pipeline that is operated by GA-MA. Now we are working on the interconnection with Greece along the route of the oil pipeline and connections with Serbia, Kosovo and Albania are also planned. The gas interconnection with Greek DESFA is our top priority. This project is very important for the country because of the diversification of the supply sources, because we will have a direct connection with the TAP pipeline, which uses the sources of Shah Denis in Azerbaijan. In the past few months, we have had intensive negotiations with DESFA regarding the interconnection with Greece and a Memorandum of Understanding has already been signed. We expect to have a feasibility study by the end of September and to apply for a grant for a basic design. At the same time, we had intensive negotiations with international financial institutions to close the financial construction, one part of which will be financed with a grant and one partwith a soft loan.
The gas interconnection with Greece is planned to go along the route of the existing oil pipeline, from Negotino through Gevgelija and to join NeaMessimria on the Greek territory, which is directly connected to TAP. Our section will be about 78 km long.
Also, the negotiations regarding the gas interconnections with Serbia, Kosovo and Albania are near their end. The gas interconnection with Kosovo is very important to us, because we can use our gas pipeline for transit of gas to Kosovo. We have to do this quickly. With the connections toSerbia and Albania, the region will become very competitive and we will have alternative sources of gas supply.
How is the construction on Negotino-Bitola section and Skopje –Tetovo-Gostivar section going and is there any interest from the companies in the zones for their connection to the gas pipeline?
The realization in these sections is within the frames of 23-25%. Besides construction, funds for expropriation are also provided and we are working intensively to complete the expropriation procedure on time, which is extensive but it still goes well. There are several problems with the planning areas in the municipalities that have been adopted after the defining of the route. We are working intensively to remove these obstacles in order to continue work and complete the project on time.
According to our dynamic plan, the construction works on both sections should be completed by the end of 2019 and the beginning of 2020, followed by technical controls and testings. We expect these sections to be operational in the second half of 2020. This year about 40 km of this section are planned to be built.
The companies are certainly interested in connecting to the network, because with the construction of the gas pipeline the gas consumption will increase, which will mean a reduction in the gas price for the final consumers. The interconnection with Greece will also contribute to the price reduction, because Macedonia will be supplied with gas from two sides, that is, Russian gas from Gazprom through Bulgaria and Azerbaijani gas from DESFA through Greece, which means bigger competition and lower prices.