Skopje, 11 January 2024 (MIA) - We have to analyse how much an investment into the construction of hydroplant "Chebren" and hydrogen-gas power plants in Negotino and Bitola would burden the country's public debt vis-a-vis a private investor, and a cost-benefit analysis is also needed in order to see how much the country is getting from electricity production, said Prime Minister Dimitar Kovachevski on Thursday.

"From a financial standpoint, it is always good to have a private investor, since you have the investment and you do not burden the public debt with further borrowing. I respect the opinion of the Association of Engineers that the plants should be built by using our own funds. These are people with experience, some have been involved in the field over the past 40 years. However, these capacities have not been built during those four decades," PM Kovachevski told reporters.

He added that the country managed the energy crisis with 45-year-old facilities.

"Bitola and Negotino were built in 1984 with a Russian-made technology, and they operated with full capacity only because of the skills of the people working in the facilities," said Kovachevski.

The PM added that the Ministry of Finance would carry out the analyses on the option for construction of the energy capacities with own funds, in cooperation with the IMF and World Bank.

"If you ask me, I believe that the hydrogen-gas power plants should be constructed by General Electric from the United States, our biggest partner, thus ensuring long-term stability and security of the energy sector. However, my opinion will be one of many when making the final decisions," said Kovachevski.

He added that the country's Budget amounts to EUR 5.6 billion, of which EUR 1.3 billion for pensions, EUR 900 million for healthcare, EUR 500 million for wages.

"Therefore, half of those EUR 5.6 billion are already allocated, and additionally for defense, police, culture etc. The Government's discretionary powers relate to capital investments, and we already have one in the amount of EUR 1.3 billion, so any further burden to the Budget must be done in consultation with the ones who finance the deficit - IMF, World Bank, through the Eurobond etc," noted Kovachevski.

Earlier in the day, the Association of Engineers submitted an initiative to the Government and the Parliament for adoption of a law on construction of Chebren with budget funds. The last tender for the construction of the hydropower plant fell through after the Greek company PPC Archirodon failed to extend the bank guarantee by Dec. 31.

Photo: MIA