Bosnia: New TPP Banovici tender, Abengoa lost race against the Chinese

3. February 2015. / SEE Energy News

By the end of this year it will be known who will be the partner of the Dark coal mine (RMU) Banovici for the construction of Thermal Power Plant (TPP) Banovici.

The tender procedure is in progress, the selection was reduced to four offers, three of which are Chinese companies and one European. New TPP Banovici will be the only modern thermal power plant in the region, whose construction will completely fulfill the EU standards.

Thetender for the construction of TPP Banovici was announced last year. Munever Čergić, the director of the coal mine, said that four very good offers have been already selected, out of which three are Chinese companies and one company from Europe.

“I can freely say that the price ranges between 400 and 500 million Euros. The repayment period would be 15 years, and the period of construction, respectively the period of withdrawal of funds would be 5 years, “explained Čergic.

According to his words, the most expensive among the received offers, is the offer of the European company. Therefore, it is very likely that the thermal power plant Banovic will be built by Chinese company.

“Out of all four offers, even the equipment offered by the European company Abengoa is the product of Chinese companies, so I don’t see a single reason why we should run away from Chinese companies. So far we have visited several Chinese companies and these days we go back to China to see the blocks they built, “adds the director of RMU Banovici.

One of the companies that applied for the tender is already building the TPP Stanari near Doboj, the property of EFT company. Čergić yet claims that if they accept the offer of a Chinese company, it won’t be the same model of building and financing.

“After the completion of entire procedure we take over the block and the block remains in state ownership, and RMU obligates that the Mine and TPP will repay the money for the construction of that facility, from sales of electricity, highlights Čergić.

The federal government adds Čergić, so far has given its full support to this project and even promised incredibly high bank guarantees. Aside of that, the plan is also the construction of the cement plant.

“We’ve already done the conceptual design. In the next two months, we expect that we can get the urban permission, which will allow us to provide the financing by using the same model, “concluded Čergić .

For RMU Banovici the last year was extremely successful. They finished it with around 4 million marks of profit and around 15 million marks of realized investments. The company employed over 200 new workers during last year.

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