Republika Srpska: New TPP Banovici deal with contractor expected to be sealed in 2015, Chinese bidders Shangai-Gezhouba-Dongfang & Abengoa Spain

7. May 2015. / SEE Energy News

Preliminary bids in the second stage of the tender were filed by Shanghai Electric Group Company, China Gezhouba Group Company and Dongfang Electric Corporation from China as well as by Spain’s Abengoa SA&Electric International.

Bosnian brown coal mine company RMU Banovici expects to sign this year a deal with a strategic partner for the construction and financing of the 350 MW Banovici thermal power plant (TPP) project.

The construction of the TPP could start in the middle of next year, RMU Banovici said in a statement.

During the next five years, RMU Banovici plans to invest 61.4 million euro in an increase in production and in initiatives related to the company’s TPP and cement plant projects, the statement said.

Last month, RMU Banovici said it expects to complete by the end of September the final ranking of the qualified bidders in the TPP tender. The talks with most of the potential investors were completed during March and once the tender documents are completed, which should happen by the end of April, all qualified bidders will be invited to file their final technical and financial offers, RMU Banovici said at the time.

Preliminary bids in the second stage of the tender were filed by Shanghai Electric Group Company, China Gezhouba Group Company and Dongfang Electric Corporation from China as well as by Spain’s Abengoa SA&Electric International.

The estimated cost of the Banovici 1 TPP project is 584 million euro ($639 million), the government of Bosnia’s Muslim-Croat Federation said earlier.

The company said in a separate statement that it plans to produce and sell this year 1.6 million t of coal and to post a profit of 480,000 EUR on revenues of 80MEUR.

The mining company plans to invest a total of 25MEUR this year alone.

RMU Banovici is one of the biggest coal mines in the Federation, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.

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