Government of Serbia adopts agreemnet for construction of new block at Thermal power plant Kostolac

(Photo: te-ko.rs)

On Monday, December 15, 2014, the Government of Serbia adopted the Agreement for the second stage of modernization at Thermal power plants and pits (TE-KO) Kostolac, within which cooperation with Chinese partners new thermal block "Kostolac B3" of 350 MW will be built and the capacity of Drmno pit will increase from nine to 12 million tons of coal annually, it was said for Tanjug at TE-KO Kostolac.

The agreement will be signed, as they outlined, during the upcoming Summit of the head of the government of China and 16 CEE countries, by the prime ministers of Serbia and China, Aleksandar Vucic and Li Keqiang.

The Serbian Parliament will then ratify the agreement as well.

The construction of the new power plant in Kostolac which will be the first new thermal power plant after almost 30 years, as the company outlined, will start next year and will last five years and new block should be on the network in 2019.

The second stage of modernization at Kostolac totals EUR 715,6 m. The Chinese loan will total EUR 608 m and EPS and the state will provide the remaining part.

The first stage of modernization at Kostolcu implies revitalization of blocks B1 and B2 and the construction of the facility for desulphurizing with additional infrastructure facilities – railways and docks. The package for modernization of Kostolac is carried out with 85% from Chinese loan which is USD 1,06 billion and the rest is provided by EPS and TE-KO Kostolac.

The package for modernization of TE-KO Kostolac is based on the Agreement on economic and technical cooperation in infrastructure signed between governments of Serbia and China.