The Chinese consortium – China Gezhouba Group Company and China Energy Engineering Group Guangdong Electric Power Design Institute, which was awarded a contract for the construction of unit 7 at the coal-fired thermal power plant Tuzla, has received three warnings of contract termination to date, with the consent of the Government of the Federation of Bosnia and Herzegovina.
According to energy utility EPBiH the Gezhouba consortium has been called upon to fulfill its obligations and proceed with the contract’s implementation. In September 2020, the consortium informed EPBiH of its withdrawal from the contracted subcontractor for key equipment, and during 2021 and 2022, they proposed alternative subcontractors.
Taking into consideration the newly arisen circumstances, EPBiH, with the approval of the Federal Government, established an expert team for negotiations with the consortium to achieve a contract with new subcontractors for key equipment, ensuring the best conditions for the company.
Accepting the expert team’s assessment that the offered alternative subcontractors for key equipment do not possess the required references, knowledge, and experience for contract implementation, EPBiH decided to reject the alternative equipment providers and informed the consortium about it, requesting them to proceed with fulfilling their contractual obligations. Depending on the consortium’s future actions, EPBiH will take further steps to protect its interests.
