The State as Chebren's Investor: €1.5 Billion in Courage or Fiscal Risk
After 14 failed tenders since 2006, the government is considering building the Chebren and Galiste hydropower plants entirely on its own — a roughly €1.5 billion investment financed directly from the state budget.
Prime Minister Christijan Mickoski has announced that the government is close to a decision to build the Chebren and Galiste hydropower plants on its own, without waiting for a new private investor — a move that comes after 14 failed tenders since 2006, the most recent of which collapsed in 2024 when a Greek company walked away from the deal.
The total investment is estimated at around €1.5 billion, including interest costs, with an internal rate of return estimated at over 10%. State-led construction would require roughly €150 million a year from the budget over a seven-year period, with officials saying unused capital investment funds become available each year for that purpose.
Government arguments highlight the benefits of water storage capacity — significant given regional climate concerns — irrigation for around 60,000 hectares of farmland, and energy storage to balance future renewable capacity. Still, a 2016 German study by Fichtner concluded the project was marginally profitable or unprofitable given the modest annual flow of the Crna River, though experts dispute whether the value of energy storage was properly assessed.
MKNews Hub · Macedonia · September 30, 2026
