Rehabilitation of block in Steam Power Plant "Kostolac B" - contract worth 492m RSD

Public company Steam Power Plants and Strip Mines "Kostolac" signed 492m RSD worth of contract today (July 8, 2009) with Institute "Mihajlo Pupin" for rehabilitation of the second block in steam power plant "Kostolac B".

As it was explained following the signing of the contract, the Institute will deliver and install equipment that will be put in trial operation prior to December 2010 at the latest.

The CEO of Kostolac's steam power plants and strip mines, Dragan Jovanović, said to the press that the conditions would be created in that way for the life of the block to be extended by 150,000 hours.

He said that the contract would officially signify the beginning of comprehensive refurbishment of both blocks in steam power plant "Kostolac B".

- These are only the first projects within the scope of investments that we expect prior to year 2020. Two ongoing refurbishment projects and environment protection projects are worth over 300m EUR. The funds for that will be mainly provided by "Electric Power Company of Serbia" - said Jovanović.

The Minister of Energy and Mining of Serbia, Petar Škundrić, said that the contract with Institute "Mihajlo Pupin" was the result of the initiative of that ministry and EPS to engage as many local companies as possible in the realization of energy projects.

Škundrić said that the capital investment works on reconstruction of hydroelectric power plants "Đerdap 1" and "Bajina Bašta" were underway.

- The aim is that Serbia becomes the leader in production and significant exporter of electric energy in Southeast Europe within the next few years - said the Minister.