Serbia: EPS TPP Kostolac, The analysis of both phases implementation of the project from the Chinese loan

Published on 25. February 2014., News Serbia Energy

At a meeting in Subsidiary “TE – Kostolac ” , which was attended by expert teams for projects implementation in both phases of the loan arrangement with the People’s Republic of China , representatives of the Ministry of Energy, Development and Environment Protection,Serbia Power Utility Company, Kostolac company and Chinese ” CMEC ” it was made ​​a cross-section of current conditions in the implementation of this large investments and announced further course work .

After several days of negotiations in China, as said Dragan Jovanovic, Director of Subsidiary “TE -Kostolac”,significant progress was made ​​. So far, from the first phase the revitalization of unitB2 in TPP “Kostolac B”was completed, and now follows the revitalization of the unitB1 in cooperation with Chinese partners , the construction of new desulphurization system which is in charge of the company CMEC with their subcontractors , as well as the construction of railways and ports that Serbian side will work. 64.6 million dollars was spent for revitalization of unit B2, while 111.6 million dollarsis provided for unit B1. The railway will cost 15.6 million dollars, while the port construction 21.9 million dollars. Since there is a significant deviation between the planned deadlines in the first phase, Jovanovic said that both sides – the Serbian and the Chinese,will engage all resources to accelerate the work. Therefore the operational meetings will be organizedin Kostolac weekly, and in the government of Serbia monthly. At this point it is important to start revitalization ofunitB1 by1^stMarch, although project documentation from Chinais delayed, which is expected to be completed by 10^thFebruary and to be finished by 30^thNovember. It will be also requested permission for preparatory works on building a new desulphurization system. It was obtained a location permit for railway building and now it has been waiting for the construction permit, while in the case of the pier is somewhat more complicated situation due to changes in legislation. After the visit of the Chinese delegation of “Exim Bank” in February, according to Dragan Jovanovic, it will be made a new timeline plans for the implementation of both phases, and everything will be done the first project phase to be completed by mid- 2015th.

Speaking that the revitalization of unit B1 must be completed on schedule and that the company CMEC do anything to be like this, Chang Yong, deputy of project manager at the site, said that the Chinese company invested a lot of effort to complete job successfully. Equipment is shipped, contracts were signed with companies in Serbia, and on the intention severity to fulfill obligations,Changalso said that 50 people from China stayed in Kostolac during great holidays in this country, the celebration of Chinese New Year, to prepare all for work starting on 1^stMarch.

Projects in Kostolac have the full support of the Government of Serbia, said Dejan Trifunovic, Deputy Minister of Energy, Development and the Environment Protection, and that he would chair the working group set up by the Government for the implementation of this major investment. Trifunovic said that three professional team staysin China was useful and that joint management teams for both project phases were agreed. It was also defined the Chinese partners work, respecting the norms, standards and laws of Serbia, and that all agreed deadlines for the work completion should be respected. The main goal of Serbia is to sign a loan contract with “Exim Bank”as soon as possible, and to begin construction of a new unit B3 in Kostolacby the end of this year.

Source; Serbia Energy