Continuation of the realization of Chinese credit arrangement in PE “Thermal power plants and mines Kostolac”

, News Serbia Energy

The second stage is getting closer

The remaining projects of the first stage will be completed by the end of 2014. – Loan agreement with EXIM Bank is expected to be signed this year.

The first part of the credit arrangement between PE “Thermal power plants and mines Kostolac” and China has already been realized, funds were approved and the rehabilitation of unit “B2” in TPP “Kostolac B” was completed in December 2012. The remaining projects planned in the first phase – the rehabilitation of unit “B1”, the construction of desulphurization system, as well as the construction of a part of infrastructure – i.e. port and railway track, will be completed by the end of 2014.

The continuation of the implementation of this major project was the main reason for another visit of Zhang Wanxue, Ambassador of the People’s Republic of China, and his associates to “TPP-MB Kostolac” at the end of April. Soon after that, the Chinese delegation led by Wang Hong, vice president of the company CMEC, also visited Kostolac.

− The Serbian side is close to signing a protocol on the acceptance of the “conceptual” design of the project, which is very important. In cooperation with our colleagues from the CMEC, we pay particular attention to the respect of working procedures during the project implementation and the protection of facilities and people. Maybe some works could have been completed earlier, but we insist that all necessary conditions are met. We are about to finalize the preparatory works for the second stage and, to this end, we count again on the support of the People’s Republic of China, given that we are faced with tight deadlines − said Dragan Jovanovic, CEO of  “TPP-MB Kostolac” in his speech before the Ambassador Zhang Wanxue.

Jovanovic stressed that a loan agreement with EXIM Bank of China should be signed this year, and that a further focus of the negotiations will be on the harmonization of technical specifications. The third round of negotiations on the second should be launched. We are currently analyzing the sixth technical specification.

− China and the company CMEC in particular, have attached a great attention to this project. The company formed the best team to run negotiations and implementation of the project – said Zhang Wanxue, Ambassador of China.

According to him, the first stage was successfully agreed and launched, and further negotiations should ensure complying with all procedures.

During the last week, the Chinese delegation, for the first time led by Wang Hong, a vice president of the company CMEC, has started a new series of technical meetings. Serbian team consists of experts from PE “Kostolac” and PE EPS, while the Chinese negotiating team includes engineers from CMEC. For now, several priorities related to the continuation of the project have been defined. First, it is necessary to develop a new project schedule, which has to be the basis for determining dynamics of loan realization, and then to ensure compliance with legal requirements, especially in the field of occupational safety and health. At the meeting in Kostolac, it was also emphasized that the documentation for the temporary buildings accommodating Chinese workers would be completed the next month, but that they could already use them. The absolute priority at the moment is the completion of the major project.