RWE To No Longer Pursue Cebren/Galiste Hydro Power Deal in Macedonia

SKOPJE (Macedonia), November 5 (SeeNews) – German utility group RWE will no longer pursue a 700 million euro ($991 million) deal for the construction of two hydro power plants in Macedonia, Skopje-based media reported on Friday.

“Financial burdens as a result of Germany's tax on nuclear fuel, payments into a special renewable energy fund, as well as the need to provide additional equipment will limit the room for new investments in 2011 and onwards,” news daily Dnevnik (www.dnevnik.com.mk) reported, quoting RWE spokesman Martin Pack.

Pack added that the Macedonian government has been duly notified about RWE’s decision, the article said.

RWE, which was the most serious contender to build the Cebren and Galiste hydro power plants, first announced its initial interest in the project five years ago.

Although several tenders for Cebren and Galiste have so far failed or have been canceled, the government has said it will announce a new one, Dnevnik said.

The very first tender was invited back in 2006 while the latest attempt to get the project going failed earlier this month.

The two power stations will be built on the river Crna and will have a combined capacity of 526 megawatts.

($=0.7065 euro)

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