Transcript Slide 1

HVDC Link Romania – Turkey
Short presentation
George VISAN
Director, Investment Projects Management Direction
March, 2007
Slide no. 1
A major and complex project
to be considered and developed
Pasakoy
March, 2007
Slide no. 2
Where we are now ?
• Scope of MOU -1 between Transelectrica and TEIAS for
the elaboration of the system study is achieved;
• System study was analysed and finished by signing the
Joint Position Paper of 26 december 2006 ;
• What to do next ?
March, 2007
Slide no. 3
Simplified Roadmap
MOU - 1
Opportunity ( system ) study
Preliminary Joint Position Paper
Political
Joint
Statement
Feasibility Study
MOU -2
Business Study
Final Joint Position paper
( corporate level )
Project Approvals
Project International Agreement
between Romania and Turkey
March, 2007
Slide no. 4
Project
Implementation
Roadmap – major phases and milestones
• Phase 1 – elaboration of the system study ( opportunity study )
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Corporate Level : Transelectrica and TEIAS
Cooperation instrument : MOU 1
Delivrable : Opportunity study – April 2006
Validation : Preliminary Joint Position Paper ( P-JPP ) to be included in
MOU 2
• Phase 2 – elaboration of the feasibility study and business
study
– Corporate Level : Transelectrica and TEIAS
– Cooperation instrument : MOU 2
– Delivrables :
• Feasibility study
• Business study
– Validation : Final Joint Position Paper ( F-JPP )
• Corporate approval of the business study and the feasibility study
March, 2007
Slide no. 5
Roadmap – major phases and milestones
• Phase 3 – Preparing implementation
– Project organization ( project company )
– Financing structure
– Project implementation plan
• Phase 4 – Project Approvals
– Approval of the feasibility study in Romania (by Governmental Decision)
– Approval of the feasibility study in Turkey
– International agreement between Romania and Turkey
•
Phase 5 – Implementation
– Transelectrica –TEIAS binding agreement to jointly build the HVDC link
• Phase 6 – Preparing technical and comercial operation of the
HVDC link
March, 2007
Slide no. 6
Preparing Phase 2
• Transelectrica’s proposal :
– To meet in May TEIAS for negotiating MOU -2 for the Feasibility
study and the Business study;
– Preliminary JPP to be included in MOU -2;
– Draft MOU-2 to be prepared by Transelectrica and send in
advance to TEIAS
March, 2007
Slide no. 7
Feasibility study -1
• Structure of the feasibility study :
– Part 1 – HVDC link – Conection to the Romanian Transmission grid
– Part 2 – HVDC link – Conection to the Turkish Transmission grid
– Part 3 – HVDC link – Undersea cable
• TOR :
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To be written;
To include prefeasibility needs
Needed technical assistance for TOR
Transelectrica intends to use :
• the expertise of Fichtner ( available in Romania and with previous expertise
in similar projects )
• To cooperate with sister TSO companies having direct experience in such
HVDC projects ( ex : Statnett /Norway );
– TEIAS position : TBD ( to be defined )
March, 2007
Slide no. 8
Feasibility Study - 2
• Financing engineering services for the feasibility study :
– Financing scenarios :
• Without grant ( 100 % financing by Transelectrica and TEIAS with
50/50 % split for part 3 ) :
– Advantage : supply independence of the engineering company;
– Superior bankability for the project financing;
• With grant for part 3/undersea cable :
– Advantage : reducing financing effort
– If grand to be taken, from where and when ?
• Recommended scenario : without grant (100% corporate financing );
• Contracting engineering services :
– Contracting procedure in accordance with legislation and type of
financing;
– To involve as much as possible local expertise
– Romania : Fichtner and ISPE
March, 2007
Slide no. 9
Business study
• Extremely important and sensitive;
• TOR to be written;
– Consultancy partialy needed
• To be done in parallel with the feasibility study;
• Contracting : with international technical assistance
• Financing : proposal - jointly by Transelectrica and
TEIAS ( 50/50% split )
• To explore and facilitate involvement of private investors
from Turkey and Romania in order to :
– Increase the commercial use of the HVDC link
– Reduce the cost of financing;
March, 2007
Slide no. 10
Business study – main chapters in TOR
• Marketing analysis
– Clients ( for transmission services );
– Volumes and periods
– Contracts and prices;
• Regulatory analysis
– Requirements of the national authorities;
• Acceptance in the RAB ( regulated asset base );
– EU requirements, including UCTE, ETSO
• Definition of the business model
• Definition of the ownership model
– Ownership structure; private investors;
• Definition of the business plan
– Compatibility cross-checkings
– Sensitivity analysis
March, 2007
Slide no. 11