Croatia: Marubeni Japan to start final talks for 800MEUR TPP Plomin C

, SEE Energy News

Japanese company Marubeni has been selected as a preferred bidder for the construction and management of a new unit within the existing thermal power complex in Plomin, Istria, executives of Croatia’s national power provider HEP said, explaining that negotiations with this Japanese corporation should be finalised by the end of this year.

During the process of selecting a strategic partner for the Plomin C block, three bids were submitted to HEP by the end of April. Marubeni was chosen as the preferred bidder, while the other two bidders — the Abeinsa-Daewoo consortium and Edison — were ranked second and third respectively, HEP executives said.

The 500MW coal-based thermal power plant “Plomin C” is to replace the existing 125MW power plant Plomin 1 in that Istrian town. The 800-million-euro plant is to be put into operation in 2019.

HEP said that technical and economic elements of Marubeni’s offer had tipped the balance in its favour.

The most important part of the process – negotiations during which a deal is to be hammered out – should now ensue. If no contract is awarded to the Japanese corporation in early 2015, and if its offer is scrapped at the end of talks, negotiations will be launched with the other two bidders.

Marubeni’s financial segment of the bid is covered by two Japanese development banks.

Performing due diligence of HEP is also required for this project.