Serbia: TENT TPP A 250MEUR Flue gas desulphurization tender expected to be announced, Pre-Qualification results announced

1. July 2013. / News Serbia Energy

Biggest environmental project in Serbia and South East Europe, 250MEUR worth tender is expected in 3rd quarter. Beneficiary and investor, TPP Nikola Tesla company (TENT) is expected to present the results of pre-qualification procedure which attracted 13 world known companies referenced in flue gas desulphurization *FGD* projects. Some big names, companies which submited the pre-q offer will be excluded from the process and not to be invited for the tender participation. According to the sources from EPS, some chinese and european companies will be excluded.

250MEUR budget for FGD project is based on the Japanese state loan which predicted involvement of JAICA as supervisor from the Japanese side. Consultant for the tender docs preparation are elected few months ago, lead by Japanese TEPSCO and German Fischtner.

Many of the pre-q bidders already located their local partners and subcontractors, some with bigger or less luck in this process. Wrong selection of local partners and bidders with combination of disputable references might result in the exclusion of this bidders.

Japanese bidders Hitachi and Mitsubishi are leading favorites for this project, according to the local media sources but European bidders have strongest references. The battle will be located in the arena of references and prices, important factor will be selection of reliable local subcontractors and partners.

According to the local energy project management consultant from Primus GBS Serbia company, both European and Japanese companies choose their local partners carefully as local economy and metal sector industry is in bad shape. Biggest challenge is the selection of qualified local engineering and project management staff as local companies lack this key assets. Primus GBS managed in the last 5 years more than 15 project management cycles in thermal power plants, modernization and environment projects.

Still the biggest fight is yet expected and who ever wins this huge project in value of 250MEUR will face a great number of unknown areas in realization of the contract. Not many did their local risk matrix says our spoke person from Primus GBS.

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