PCC subsidiary receives construction permit for hydropower plant in Macedonia

Duisburg/Skopje, June 2012

On June 26, 2012, PCC's Macedonian project entity PCC HYDRO DOOEL Skopje received the last authority seal for construction of the small hydropower plant "Gradecka". Thereby the construction permit which has been issued on June 6, 2012, became legally valid after the official period of objection. The power plant will be located at river Gradecka about 90 kilometres east of the capital Skopje. The construction of the power plant will be started shortly. The construction period will - depending on weather conditions during the winter ahead - last about nine to eleven months.

PCC HYDRO is a subsidiary of the German PCC DEG Renewables GmbH (Duisburg). Besides power plant "Gradecka" it develops three other small hydropower plants in Macedonia. The overall investment volume will be about 11 Mill. €. With a total of 4.1 MW installed electrical capacity these power plants will mitigate CO₂ emissions of about 15,000 tonnes per year.

Already in April 2011 PCC HYDRO could secure financing for the projects. At that time PCC HYDRO signed a long-term loan of 6 Mill. € with the European Bank for Reconstruction and Development (EBRD) for the development of these four small hydropower plants.

Short profile of PCC DEG Renewables GmbH:

PCC is developing the above-mentioned projects within the framework of PCC DEG Renewables GmbH, a joint venture between PCC SE and DEG Deutsche Investitions- und Entwicklungsgesellschaft mbH (a member of the KfW Banking Group). Via project entities in Bosnia and Herzegovina, Macedonia, and Bulgaria, PCC DEG Renewables GmbH invests in hydropower projects entailing currently about €40 million in capital expenditures. These energy projects enhance energy security in the countries concerned, while at the same time increasing the share of energy production from renewable resources.