Visitors:
To
Peter Reiniger
Energy and Telecommunications Business Group Director
European Bank for Reconstruction and Development
One Exchange Square, London EC2A 2JN
UK
Skopje, 18.08.2005
Subject: Skopje Thessaloniki crude oil pipeline
Dear Mr. Reiniger,
We are writing to you concerning the latest disturbing information for the Skopje- Thessaloniki Crude Oil Pipeline Project which the EBRD approved funding for in 2000.
Just recently there were press reports (please see attached press report) stating that there are certain problems concerning the collection of the dividend on the 20% stake in the pipeline by the Macedonian Government. The lack of information on the economic performance of the pipeline is also a great problem for the Government. According those reports, Helenikpetroleum, the Project Sponsor, has been withholding the annual balance sheets and showing negative business results before the Macedonian Government, in order to gain more profit from the oil transport.
As the EBRD has been involved in the financing of this project (approved 19 December 2000) and as the EBRD is committed to build transparent business environment (e.g. Extractive Industries Transparency Initiative) we would like to raise several questions.
Was the EBRD able to receive the annual balance sheets for the last three years that were withheld from the Macedonian Government?
Does the loan agreement contain any provision related to the protection of minority shareholders?
Does the loan agreement contain any provisions regarding minimum level of access to information related to business results?
Did the EBRD have any discussion with Helenikpetroleum about the participation on the Extractive Industries Transparency Initiative and if yes, then what were the results of such discussion?
Looking forward to hearing how the Bank will proceed with this case.
Best regards,
Ana Colovic
Eko-svest Macedonia
Greece Deny Profit from Joint Pipeline to Macedonian Government?
2005-06-29 13:17:12
The Macedonian Government has no insight into the balance of the Skopje - Thessalonica pipeline, as the Greeks hid the annual balance sheet. According to media from Skopje, the state cannot collect the dividend on its 20 % stake in the pipeline. It was cited that the Government does not even know how the oil pipeline performed economically in the last three years.
Balance presentation was let out of the first board meeting of the newly formed Macedonian-Greek company "Vardaks" which will manage the transportation system. The Macedonian Government justifies its inertness in resolving issues with the Greeks by the fact that the Solun - Thessalonica pipeline (launched in 2002) has transported just over 700,000 tons of oil, which means that the pipeline did not have large earnings.
The Macedonian media however, suspects that Greek company Helenikpetroleum, which owns Skopje's Okta refinery as well as the Greek pipeline's co-owners, intentionally showed negative business results in order to gain more profit.
Source: Energy Observer
www.seeurope.net