The negotiating team of Thermal Power Plants and Mines (Te-Ko) of “Kostolac” met today with a delegation of Chinese companies CMEK and Exim Bank on the final details before approving the loan agreement for the second phase implementation of the credit arrangement with China.
According to “Serbia Power Utility Company”, in whose framework operates “Kostolac”, vice President of Chinese Company CMEK, Wang Hun said that this company gained a lot of experience in the first stage and now was preparing for the second phase of the project.
The second phase of the project package in Kostolac includes the construction of a new unit in the thermal power plant “Kostolac B” and the production capacities expansion of the open pit mine “Drmno”.
– We have started geo technical investigations at the site and it is expected to finish it in March, and then we officially begin the preliminary project design. At this point the main job for CMEK is to do the preparatory work as good as possible- said Wang Hu.
The Chinese company, according to her, is studying now the Serbian legislation and standards, in order to obtain licenses and permits necessary to start work as soon as possible.
– After signing the contractual agreement for the loan application we start with works in the second phase – said Wang Hu.
Visit of the “Exim Bank” representative, according to Dragan Jovanovic, Director of Subsidiary “TE-KO Kostolac”, makes part of the regular procedure. The bank visits the investment place and talks with investment partners at the stage of interstate loan approving.
-The second day in a row we take very detailed discussions with bank representatives and give them all the information that they still need to make a final decision on the loan approval on the board –he said.
Jovanovic said he hopes the proposal of the loan agreement will be made ”in a short period of time”, adding that it would be realistic the implementation of the contract “to be in the second half of this year.”
– We signed a commercial agreement with Chinese partners, which defines all technical, economic, commercial, legal elements and that contract will effectively come into force upon loan agreement signature and its ratification in the Serbian Parliament- said the director of Te-Ko “Kostolac”.
Revitalization of unit B1 in “Kostolac B”, as one of the projects of the first phase of China’s credit arrangement begins on 1st March, and as said Jovanovic, this major project would be done in cooperation with Chinese partners.
The plan is to complete work by the end of November and that the unit B1 starts in full force from December. This means that for the first time in its lifetime has a power of 350 megawatts, what has already been done with the unit B2.
Source; Serbia Energy
