Serbia: No delays in China financed construction of new TPP Kostolac B EPS power utility

6. June 2016. / News Serbia Energy

The project is carried out in accordance with the phase II of Package Projects TPP Kostolac B for which the contractor is Chinese company CMEC (China Machinery Engineering Corporation).

Regarding inaccurate information published in some media, Electric Power Industry of Serbia would like to inform the public that the project for the construction on new unit B3, 350 MW capacity, in Thermal Power Plant Kostolac B is fully progressing in accordance with the contract signed between this public enterprise and the Chinese partners, and that there is no delay.

The project is carried out in accordance with the phase II of Package Projects TPP Kostolac B for which the contractor is Chinese company CMEC (China Machinery Engineering Corporation). Planned deadline for completion of construction of unit B3 is 2020, and the commencement of works is planned for 2016, therefore there is no delay for the commencement of works.

Implementation of the project that will bring Serbia new thermal power plant after three decades officially started on January 4, 2016, after advance payment to the contractor in accordance with the contract was made by EPS and not the Government of Serbia, as some media reported. The investor for the construction of the third unit in TPP Kostolac B is EPS; EPS took preferential loan from Chinese Exim Bank under very favorable conditions for the implementation of this project.

The commencement of the works for the construction of new unit B3 will follow the obtaining of construction permit. The public was confused that the commencement of the works was planned for Christmas 2016 since the term ”commencement of the works” was wrongly used instead of ‚Äúcommencement of project implementation‚Äú.

The necessary consents from the competent authorities and part of project documents were obtained and completed in the period 2013-2015. Basic Design was prepared in 2013 and Audit Committee of the Ministry of Construction approved it in 2014. New environmental impact assessment study will be developed since the consent for the previous one expired at the beginning of 2016 and this procedure has already been initiated. Location permit has also been obtained (2013/2015).

The necessary investment-technical documentation is being prepared for the construction permit and the request will be submitted to the competent ministry when legal prerequisites are met. Construction permit will be issued in phases and there will be 11 in total.

At the location of new unit B3, significant amount of waste and other material that were disposed there since the beginning of operation of TPP Kostolac B more than 20 years ago is being removed. There is also ongoing archaeological research, which is a legal obligation of PE EPS since TPP Kostolac B is located in the protected environment of the archaeological site Viminacium. PE EPS is implementing all current and future projects only with the necessary permits in accordance with the applicable legislation, as well as technical, environmental and other regulations and standards.

Phase II of Package Projects TPP Kostolac B, beside new thermal unit includes the extension of OCM Drmno for the purpose of increase of coal production from nine to 12 million tons annually. The project includes the construction of new ECS system (excavator-conveyor-spreader) and the construction of substation with overhead line. The necessary investment-technical documentation and permit for that part of the project are being prepared, ransmits Serbia-energy.eu

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