I think I solved this issue with global compiler variables, but I still need a .cbp file to test against it.
Also, would it be possible to define the $(PROJECT_NAME) and $(TARGET_NAME)? For example, I have the following in my .cbp:
<Target title="Debug">
<Option output="$(#trak)\build\bin\$(TARGET_NAME)\TCF" prefix_auto="1" extension_auto="1" />
<Option object_output="$(#trak)\build\obj\$(TARGET_NAME)\$(PROJECT_NAME)\" />
...
Yes and no

A $(PROJECT_NAME) macro is simple, I can add this right now.
But $(TARGET_NAME) is a completely different thing - it should be different for every target in a makefile.
Hence, processing of $(TARGET_NAME) should be either
1) a dirty hack inside cbp2make which I would like to avoid;
2) a bunch of macros like "TARGET_NAME_DEBUG = Debug" which is easy to add and is not a hack but looks less nicely;
3) a generic feature to support some internal macros - but it is not clear to me what macros should be there.