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Overview

CDB pledges EUR 1.275 billion loan for Vardar Valley Hydropower Project

Commitments (Constant USD, 2023)$2,014,351,556
Commitment Year•2011Country of Activity•North MacedoniaDirect Recipient Country of Incorporation•North MacedoniaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Pledge

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 11, 2011

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Government Agencies

  • Government of North Macedonia

Implementing agencies

Government Agencies

  • Government of North Macedonia

State-owned companies

  • China International Water and Electrical Corporation (CWE)

Loan desecription

CDB pledges EUR 1.275 billion loan for Vardar Valley Hydropower Project

Interest type•Unknown

Narrative

Full Description

Project narrative

On April 11, 2011, China International Water and Electric Corporation, Government of Macedonia and China Development Bank signed an MOU of Vardar Valley Hydro-Power Project. The project is also be known as “Vardarska dolina." The goal of the project is to regulate the water potential regime and use, spatial planning, protection of goods, the social aspects and exploitation of water resources. The contracting of the project is supposed to be undertaken in four phases. The Vardar Valley Hydropower Project envisages the construction of 12 hydropower plants along a 200-kilometer stretch of the Vardar river from the capital of Skopje to the Greek border. The major power plants are: Veles HPP with a production of 300 million kWh and Gradec HPP with 257 million kWh. Other smaller hydro-power plants have been deployed in cascades down the river stream, with a production of 60 to 130 million kWh, depending on the location and flow. CDB is said that it planned to extend a loan worth EUR 1.275 billion (85% of the total amount) and the Macedonian would be responsible for the other 15% of the total cost (EUR 225 million). The expected borrowing terms of the CDB loan were not disclosed. As of early 2021, there was no evidence that a CDB loan had been finalized or that project implementation had begun.