Čebren gets a new deadline, but not the agreed money: Government promises groundbreaking in 2027

The “Čebren” hydropower plant has again received a deadline for the start of construction, but there is still no closed and public financial structure, according to the Racin portal.

Prime Minister Hristijan Mickoski announced on September 29 that the state plans to build “Čebren” and “Galište” itself and that, if talks with international financial institutions end successfully, the groundbreaking could take place in 2027.

“If everything goes as it should, I expect that next year we will lay the groundbreaking,” Mickoski said after the promotion of ESM’s project for the revitalisation of existing hydropower plants.

According to the prime minister, several financial institutions have shown interest in the project, among them the U.S. International Development Finance Corporation — DFC.

The government claims calculations show a double-digit internal rate of return and a favourable net present value of the investment. But in the information made public so far there is no financing agreement, possible loan amount, interest rate, repayment term or data on possible state guarantees.

Mickoski presented DFC as an institution with a financial portfolio of over $220 billion, while on its official website the American institution reports a global investment portfolio of over $40 billion. The government should clarify whether the higher figure mentioned refers to legal investment capacity, mobilised capital or another financial category, Racin writes.

DFC confirmed in April this year its first project in Macedonia — five million dollars for development analyses and studies for reactivating the “Krstov Dol” antimony mine. The institution has published no agreement or decision on financing “Čebren” and “Galište”, so the announced interest at this stage remains information conveyed by the Macedonian prime minister.

The project’s history imposes additional caution: the idea of using the hydropower potential of the Crna River dates back to 1964, and 14 tender procedures have failed so far. The last attempt ended in January 2024, when the Greek consortium PPC-“Archirodon” did not extend its bank guarantee and the joint venture agreement with ESM was not signed.

In earlier government announcements, the value of the state project was estimated at around €1.5 billion including interest, with about seven years of construction — meaning the groundbreaking will be only the start of a multi-year investment that several governments will implement and repay.