Republika Srpska: Dongfang China signs cooperation & financing memo for new TPP Gacko 2

, SEE Energy News

Minister of energy and mining in Republika Srpska government and the viceprecident of Chinese company Dongfang electric corporation signed the Memorandum of cooperation for the new TPP Gacko 2 project.

Djokic stated that Dongfang has positive experience in projects in Republika Srpska (RS), entity of Bosnia and Hercegovina. Dongfang is the main contractor in the project of construction of new power plant Stanari which is planned to start testing operation in December 2015 and in may 2016 TPP Stanari is expected to start the supply of electricity. TPP Stanari is owned by UK company EFT which is the leading electricity and investment company in South East Europe.

Djokic explained that this MoC expresses the interest of both sides for cooperation and next steps which will follow are legal procedures needed for selection of the main contractor. Djokic expressed the hope that Dongfang will be the main contractor for the construction of new power plant Gacko 2.

According to the Minister, the most important aspects of the MoC will be conditions for the financing. Chinese side already presented proposals and readiness for providing financing of this project under credit framework which may be very acceptable for power utility ERS which will be the main investor on behalf of RS government.

The new unit in TPP Gacko should have capacity of 300-350MW. There are existing and sufficient coal reserves which is the main precondition for the construction of new unit Gacko 2.

Government of Republika promoted earlier that it is decisive to realized capital energy projects with power utility ERS as the main investor on behalf of RS Gov which owns the ERS.

Minister Djokic added that RS has the space and potential to build new power plants and reminded on the success case story of TPP Stanari which will allow RS to become the only country with newly build energy facility after the war.

Dongfang vicepresident Han presented the experience of the company in the construction of new power generation facilities larger than 350MW capacity and added that company works currently in more than 40 countries.

Han stated that Dongfang had successful cooperation with RS Gov in the construction of new TPP Stanari and expressed gratidute to RS Gov and president of RS Milorad Dodik.

CEO of power utility ERS Mrs.Branislava Milekic also attended the signing of MoC which emphasized that the investor on this project will be ERS subsididary Mine and Plant Gacko which already started the process of selecting the consultant for the feasibility study. Milekic added that the investor request is that the construction of new unit would have to be with high efficiency and reliability factor and with highest environment standards applicable. , transmits