Electric Power Company of Serbia invites investors for new power supply capacities worth several hundreds of milliona of euros

At the beginning of May, in “Financial times”, Electric Power Company of Serbia announced the advertisement that should attract strategic partners. EPS invited potential strategic partners to consider continuation of construction of 700 MW on location of Steam Power Plant Kolubara B or optional and acceptable other solution, greenfield investment, also on the basis of the Kolubara coal.

EPS also seeks for a partner for reconstruction of TE-TO Novi Sad.

Public invitation for the strategic partners will be announced prior to the end of the year 2006, because the tender documentation, which will be elaborated with the help of the consulting company, should be ready until then. The selection of the strategic partner will take place during the year 2007.

In this way, EPS wants to solve two big problems. The first is Steam Power Plant «Kolubara B», the investment that is frozen for 15 years and it can not be realized solely by EPS. The second project concerns Panonian Steam Power Plant. The problem of Panonian Stean Power Plant could be solved if the City of Novi Sad joined its modernization and reconstruction as a buyer of heating energy and Refinery Novi Sad as the buyer of technological steam.

There are many possibilities for inclusion of strategic partners: from joint ventures with EPS, in which each party would valourized its share according to the investments, to direct investment of capital, additional capitalization and other forms of investment. The latter includes ownership transformation.

Strategic partners are offered construction of 700 MW power plant powered by the KOlubara coal. Another option is possibility of completion of construction of two times 350 MW in Steam Power Plant «Kolubara B» or Greenfield investment ( investment that creates completely new business infrastructure) of the same power. Also, there is an option for investment in adequate mining capacity.

Besides, in addition to already invested 350 million EUR, another 800 million EUR must be invested in «Kolubara» - about 550 million EUR in power plant and over 200 million EUR in the mine, which will provide coal for that power plant. Much more money has to be put the greenfield investment.

source E-info