EPS Builds New Thermal Power Plant

EPS Builds New Thermal Power Plant

(Kostolac, November 20, 2017) Foundation stone laying next to TPP Kostolac B marked the beginning of the works for the construction of new 350 MW unit Kostolac B3, the first large thermal capacity Electric Power Industry of Serbia is building after almost three decades. EPS will thus get modern, efficient unit that will meet all domestic and European environmental criteria and it will contribute to a long-term increase of Serbian power system safety.

- Serbia will get new unit significant for the power system and the entire industry, construction and mechanical companies. Construction of B3 unit is just one of the projects we are implementing with partners from China, and its total value amounts to six billion dollars. I expect we will also sign the contract for construction of heat pipeline from TENT A in Obrenovac to Belgrade next week on the Summit of Southeast European Countries and China – said Ana Brnabic, Serbian Prime Minister, at the ceremony marking the start of unit construction in Kostolac.

Brnabic added that EPS will provide 15 percent of funds for project financing, while the remaining part will be financed from the Chinese Exim Bank loan. USD 613 million will be invested by EPS for the construction of new unit, and together with the project for increase of mine Drmno capacity, the investment will amount to 715.6 million dollars.

- This is a great day for EPS and Serbian economy because the last thermal power plant was built 26 years ago. The construction of Kostolac B3 unit is expected to be completed in the next four years, and it will increase total EPS production capacities by about five percent. We are also building a system in mine Drmno that will “feed“ new unit with coal and increase coal production capacities from nine to 12 million tons annually – said Milorad Grcic, PE EPS Acting Director.

Grcic pointed out that large number of domestic companies will be engaged for the construction works which will contribute to the development of Kostolac and Serbia. All necessary permits for the construction of new unit have been obtained also including Environmental Impact Assessment Study for which Romania gave its consent. Expected annual generation amounts to about 2.5 billion kilowatt-hours of electricity.

- By investing into power capacities Serbia continues to develop and create grounds for accelerated economic development. At the moment, on-going projects in energy sector amount to three billion euros. We are building 1000 MW capacities just in electricity sector. Besides EPS' 350 MW unit in Kostolac, combined heat and power plant in Pancevo and 500 MW wind farms are being built – said Aleksandar Antic, Minister of Mining and Energy in Serbia.

Kostolac project is implemented by the Chinese company China Machinery Engineering Corporation (CMEC).

- The project of such dimension is a great challenge for us in terms of organization and management. We have also been working on the first phase of the Kostolac project, and now we continue our cooperation with EPS. The best managers and the best operatives were selected for this challenging task. We will follow all contracted deadlines and deliver equipment in accordance with the highest standards – said Tong Zigang, CMEC Vice President.