AD MEPSO Ends Contract with the Contractor for the 400 kV Interconnection North Macedonia - Albania
AD MEPSO informs the public of the termination of the contract with Energoinvest DOO Saraevo, Bosnia and Herzegovina, a building contractor of the 400 kV transmission line from SS Bitola 2 to the Macedonia – Albania border.
Terminating the contract was inevitable due to the contractor’s unfulfillment of the obligations under the contract and their requirements for additional payments. All that led to a negotiation deadlock.
The Agreement with Energoinvest DOO Saraevo, Bosnia and Herzegovina, was concluded on February 7, 2020, with time for completion of 30 months. Therefore, the completion date was supposed to be May 30, 2023.
We want to point out that during the completion period, the contractor left the site several times, requiring additional payment, which AD MEPSO refused due to the contract’s turnkey type. Despite multiple efforts by AD MEPSO to achieve compliance and negotiate, the companies were unable to reach an agreement. Consequently, it was critical for AD MEPSO to decide to terminate the contract.
From the project’s commencement, the contractor built 24 foundations for towers out of 269 planned (8.9%), while 51,2% of the equipment was delivered.
Considering the emerging situation, slow dynamic, and site leaves, we consider the termination of this contract to be the beginning of the completion of the project, which is a peak priority for AD MEPSO and the Government of the Republic of North Macedonia.
AD MEPSO remains committed to completing the 400 kV interconnection with Albania and has already begun preparing for its restart. The company will initiate a new tender procedure following EBRD directions to choose a new contractor to resume construction.
The successful realization of this interconnection remains a priority for AD MEPSO as it will strengthen regional energy stability and integration, which will be significantly beneficial for North Macedonia, Albania, and the entire region.