Chinese investors to build HPP in Macedonia

The Ministry of Economy confirmed that government is holding talks with Chinese investors i.e. the Chinese State Energy Company and the Chinese Development Bank on constructing a giant hydro energy project in the Vardar valley.

The project envisages the construction of 12 hydroelectric power plants, generating a total of 325 MW, along Macedonia’s biggest river.

The tender was already issued in 2008, however it was annulled in 2010 after not one company applied. The announced revival of the two-decade-old project has the potential to cause controversy. Before starting construction of some of the plants, energy experts say the authorities will have to move large sections of existing highways and railway lines, some of which form part of Euro Corridor 10, which links the country to Serbia in the north and Greece in the south.

Some estimates say that moving this infrastructure alone could cost as much as € 1 B. The current annual budget of Macedonia is some € 2.5 B.

Source: www.balkaninsight.com

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