Contract to build power plant signed with Chinese company

A contract was signed at the Serbian government headquarters on Wednesday concerning the construction of a new power plant in Kostolac, eastern Serbia.

Source: Tanjug

The plant will have an output of 350 MW.

The deal also concerns the expansion of the strip mine Drmno, which will bring its production up from nine to 12 million tons of coal per year.

Acting Director of Serbia's power company EPS Aleksandar Obradović, Termoelektrane i Kopovi Kostolac Director Dragan Jovanović, and Director of CMEC from China Zhang Chun, signed the contract.

Serbia's Minister of Energy Zorana Mihajlović, Transport Minister Aleksandar Antić, and Chinese Ambassador to Serbia Zhang Wanxue were present.

"This is an important day for Serbia's energy sector, because the country has finally, after nearly 25 years, committed to building a new thermal power station," Mihajlović told a news conference after the ceremony.

She expects a loan contract to be signed by the end of the year, so construction could start in early 2014.

The new power station will provide energy stability to Serbia and once completed, in 2019, it will supply around 20 percent of the necessary power together with the nearby plants Kostolac B1 and B2, she pointed out.

The total value of the second stage of the arrangement with the Chinese partners in Kostolac is EUR 715.6 million.

Business & Economy

page 1 of 21 go to page