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Bosnia and Herzegovina: Five-company consortium wins €8.3 million contract for TPP Gacko cooling tower reconstruction

A consortium comprising four local firms and a recently established Hungarian company has secured an €8.3 million contract from RiTE Gacko, the coalmine and thermal power plant operator, for the reconstruction of its aging cooling tower.

The winning group includes Bosnian companies Elnar, Projekt, GP Gradip, and Montig Energetika, alongside 3g Energy, a relatively unknown firm based in Ujlengyel, Hungary. The consortium was the sole bidder in the recently concluded public tender, with the contract formally signed on April 11.

Under the agreement, all reconstruction work must be completed within 85 days from the project’s start date. Although the overhaul was initially scheduled to coincide with the plant’s upcoming maintenance period, local media report that the entire project has been postponed until 2026.

According to the tender terms, the consortium is required to finance the project upfront, with repayment—plus interest—scheduled for a later date. Notably, the Hungarian company 3g Energy, founded in 2023 and lacking a significant project portfolio, is responsible for providing the upfront financing.

The 42-year-old cooling tower is currently in poor condition, with the tender documentation highlighting issues such as inadequate and uneven airflow. These problems are particularly severe during summer and heatwaves, when the temperature of the cooled water rises and forces the power unit to operate at just 60% of its full capacity.

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