Serbia exclusive: Gov talks with investors from Canada, China and Japan for new TPP TENT B3 and HPPs, PPP Model as option

8. January 2014. / News Serbia Energy

Construction of at least two energy facilities will begin in Serbia in 2014, which will with the work on South Stream and negotiations on investment, revive energy sector. Serbia is finally moving in the investment phase in the energy sector after thirty years, said Minister of Energy, Development and Environment Zorana Mihajlovic. German RWE abandoned plans to build a TENT B3, the minister said that the protocol was signed, but that negotiations about the project lost intensity. As for the thermal power plant “Nikola Tesla” (TENT) B3, there are several interested investors, among which there are companies from China and Japan.

The basis for this energy breakthrough, as he pointed out, is necessary legislative framework, adopted in the previous year and a half.

Construction of the South Stream pipeline through Serbia is practically already begun before the end of this year, and the first new thermoblock whose construction will begin in 2014, will be a new power plant in Kostolac with power of 300 MW for which a contract has been signed.

As Mihajlovic announced, the protocol for power plant – Thermal plant Novi Sad will be signed by the end of this year or in the first 15 days of January next year.

Interviews must be completed in the next month and a half to two months for the power plant Stavalj, said the Minister and reminded that the agreement with the Canadians on the construction of hydro electric power plant Bistrica has already been ratified, for which a working group of the Serbian government was formed. Signing of contract for Bistrica is expected in the next few months.

During the next year and one wind farm will be completed, and there will be announcement of another public invitation to investors for the construction of small hydro power plants, said Mihajlovic.

As for the thermal power plant “Nikola Tesla” (TENT) B3, there are several interested investors, among which there are companies from China and Japan. There are nogotiations, but so far no concrete proposal that would specify how much the project would cost and by which schedule the works would go.

“We are open for discussions”, said Mihajlovic.

When asked whether the German RWE abandoned plans to build a TENT B3, the minister said that the protocol was signed, but that negotiations about the project lost intensity.

“As soon as there are no intense discussions, we can say that they have not been officially canceled, but it’s like that it does not work.”

Negotiations on the project Central Drina, on contrary, go in the other direction. As Mihajlovic said, Serbian Electric Power Industry working group has been formed, which is active in these negotiations.

Energy Minister said at the end that her ministry turns to public-private partnerships, and leaves the current practice of giving state guarantees for the implementation of energy infrastructure projects, as Serbia has sufficiently high deficit and public debt.

“Wherever we can have a private – public partnership and concessions, that is how we will work, but of course to fully protect the interests of the Serbia, to employ people, and to get investors who want to build here as soon as possible” said Mihajlovic.

Source; Serbia Energy/MERZ

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