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Progress made Project Team for Development of SEE CAO

Aleksandar Mijuskovic, PrenosChairman Project Team Steering Committee

15thAthens Forum, November 25th-26th, 2009

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Content

I PT SC SEE CAO Meetings

II Main developments

III Conclusions

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PT SC SEE CAO Meetings

1st PT SC CAO Meeting, Athens, May. 11th 2009

2nd PT SC CAO Meeting, Athens, June. 9th 2009

3rd PT SC CAO Meeting, Vienna, Sep. 17th - 18th 2009

4th PT SC CAO Meeting, Brussels, Oct. 28th 2009

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Main developments

Polit ical Support

Financing of the Project Team

Structure of the Project Team

Setting up Project Company ToR

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Main developments - Polit ical Support

Conclusions of the Ministerial Council

Conclusions of the Athens Forum

Memorandum of Understanding

Letter of EU Commissioner Piebalgs

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Main developments - Financing of the PT

70% of the overall project costs will be covered by

International Financial Institutions IFIs

30% of the project budget shall be financed by TSOs

based on equal contributions

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Main developments The structure of the PT

The Project Company shall be set up for the duration

of one year There shall be 4 experts (one Legal Expert, one

Economic Expert, 2 Grid Experts) and a Project Team

Manager leading the team and reporting to theSteering Committee.

PT members shall be seconded by TSOs/ISOs from

the 8th region

Nomination for Project Team Members Letter

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Main developments Project Company

The originally planned approach of PRENOS acting as

beneficiary for the Project Team funds (budget) cannot be followed (difficulties with splitting income in

the balance sheet/regulated asset base)

Alternatively a Project Company ( LIMITED LIABILITYCOMPANY ) shall be set up

PRENOS offered to prepare the setting up

Legal framework for establishment of ProjectCompany

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Main developments ToR

On 28 October 2009 the SEE CAO Project Team

Steering Committee agreed on the final version of theToR for the PT SEE CAO

After the agreement to go Rules of Association willhave to be finished

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Conclusions

Setting up a SEE CAO is following the legal

requirements of the Energy Community Treaty in themost efficient way

SPECIAL BENEFITS FOR SEE:

high number of borders and different allocation

mechanisms aim: implementing procedures that are

in line with the EU

integration of markets - one single market is

considered as the ultimate goal

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Conclusions

Establishment of a SEE CAO depends on the number

of the participating TSOs/ISOs and the transmissioncapacities offered at their borders

Participation of all TSOs would make the project more

efficient

The SEE CAO remains open to all TSOs in the Region

Start with an NTC approach in the first phase andmove to flow based allocations in a second step

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Conclusions

Message:

all the conditions were met and that PT can start work

Governments and ministries play a key role

Clear political signal on the way forward from theupcoming Ministerial Council (18 Dec 2009)