Bosnia, Romania, Serbia: Chinese contractors gets another new power plant contract

4. February 2016. / SEE Energy News

Chinese power generation contractors are realizing successfully its market development in Europe, thru South East Europe greenfield energy projects supported by Chinese export bank soft loans. Beside Romania and Serbia ongoing construction projects, Chinese contractors are being successful in Bosnia as well.

Chinese company Dongfang Electric Corporation signed the contracts for the construction of new coal fired power plant Banovici. For Donfang biggest European and Bosnian reference is the newly built TPP Stanari which is now being commissioned.

Contracts were signed between Banovici coal mine company and Dongfang, contracts include the project development and strategic cooperation agreement with Dongfang.

Dongfang also inked the contracts for engineering, procurement and construction EPC turn key for TPP Banovici unit 1 350MW. Financing agreements were also signed between Banovici project company, Dongfang and Chinese industrial and commercial bank ICBC.

Signed contracts indicates that construction could be started in 2016, strictly following all EU environment standards. According to EU relations, all newly built power plants follow under the rule of strict IED directive.

Chinese contractor Dongfang assures the quality and compliance of its works and equipment with EU quality and environment standards stated the Banovici director.

Chinese financed greenfield energy investments in SEE region could be a needed incentive for local outdated energy systems. With soft loans Chinese companies are penetrating successfully three major markets, Romania-Serbia-Bosnia. China investment framework for South East Europe, countries both members and non members of EU

Romania’s Rovinari power plant, a new 600 MW coal-burning power plant — ranks the most advanced. On Oct. 31, 2014,China Huadian Engineering Co. (CHEC) and Oltenia Energy Holding (OEH) of Romania signed an agreement on the construction of the power plant, with an investment of around 1 billion dollars. The project was believed to bring advantages to the country’s overall economy for approximately 25 years.

On Nov. 10, 2015, China General Nuclear (CGN) signed a MoU with the Romanian national nuclear company Nuclearelectrica for developing, constructing, and operating Units 3 and 4 of the Cernavoda nuclear power plant. According to Nuclearelectrica, the construction of the two units will double Romania’s nuclear power production capacity, while the emission of about 12 million tons of carbon dioxide will be reduced each year as a result.”Such a project could not be possible without extensive cooperation between the Chinese and the Romanian authorities,” said Razvan Paunescu, Coordinating Consultant for CGN on the project. He added that the 16+1 mechanism was an extraordinary platform, as it provides the framework for concrete and efficient partnership, based on a win-win cooperation principle.

Another example for energy cooperation is Serbia’s Project Kostolac, in which China Machinery and Engineering Corporation (CMEC) has helped revitalize two blocks (B1 and B2) of Serbia’s Kostolac thermal power plant, which will extend the plants’ lifetime for two more decades as the first phase of the project.

The second phase is the construction of a 350 MW new block B3, the first new energy facility in almost three decades. Power plant Kostolac is very important for the Serbian economy because nearly 3,000 people are employed in power plants and coal mines, which means that almost 15,000 people are living on power plants, according to Nebojsa Misic, project manager of Kostolac power. Serbia is very satisfied with the CMEC’s organization and works though it is the first Chinese company in Serbia’s power industry, he added.

Chinese energy investments in Bosnia and Hercegovina, specifically the case of construction of new 300MW TPP Stanari, could be a showcase for Chinese ambiotuous toward EU market and further SEE region expansion. UK EFT’s TPP Stanari is basically the only new built power generation facility in region of West Balkans/SEE, financed thru China Exim loan and contracted to Chinese company Dongfang. The same company is negotiating two new power plants project, new TPPs Gacko2 and Banovici, expected to be financed thru similar Exim loan mechanisms. Chinese financed greenfield energy investments in SEE region could be a needed incentive for local outdated energy systems. With soft loans Chinese companies are penetrating successfully three major markets, Romania-Serbia-Bosnia. China investment framework for South East Europe, countries both members and non members of EU

Romania’s Rovinari power plant, a new 600 MW coal-burning power plant — ranks the most advanced. On Oct. 31, 2014,China Huadian Engineering Co. (CHEC) and Oltenia Energy Holding (OEH) of Romania signed an agreement on the construction of the power plant, with an investment of around 1 billion dollars. The project was believed to bring advantages to the country’s overall economy for approximately 25 years.

On Nov. 10, 2015, China General Nuclear (CGN) signed a MoU with the Romanian national nuclear company Nuclearelectrica for developing, constructing, and operating Units 3 and 4 of the Cernavoda nuclear power plant. According to Nuclearelectrica, the construction of the two units will double Romania’s nuclear power production capacity, while the emission of about 12 million tons of carbon dioxide will be reduced each year as a result.”Such a project could not be possible without extensive cooperation between the Chinese and the Romanian authorities,” said Razvan Paunescu, Coordinating Consultant for CGN on the project. He added that the 16+1 mechanism was an extraordinary platform, as it provides the framework for concrete and efficient partnership, based on a win-win cooperation principle.

Another example for energy cooperation is Serbia’s Project Kostolac, in which China Machinery and Engineering Corporation (CMEC) has helped revitalize two blocks (B1 and B2) of Serbia’s Kostolac thermal power plant, which will extend the plants’ lifetime for two more decades as the first phase of the project.

The second phase is the construction of a 350 MW new block B3, the first new energy facility in almost three decades. Power plant Kostolac is very important for the Serbian economy because nearly 3,000 people are employed in power plants and coal mines, which means that almost 15,000 people are living on power plants, according to Nebojsa Misic, project manager of Kostolac power. Serbia is very satisfied with the CMEC’s organization and works though it is the first Chinese company in Serbia’s power industry, he added.

Chinese energy investments in Bosnia and Hercegovina, specifically the case of construction of new 300MW TPP Stanari, could be a showcase for Chinese ambitious toward EU market and further SEE region expansion. UK EFT’s TPP Stanari is basically the only new built power generation facility in region of West Balkans/SEE, financed thru China Exim loan and contracted to Chinese company Dongfang. The same company is negotiating two new power plants project, new TPPs Gacko2 and Banovici, expected to be financed thru similar Exim loan mechanisms, transmits Serbia-energy.eu

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