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Chineese company to built power plant in RS

Chineese company to built power plant in RS
RS minister of industry, energy and mining, Petar Djokic, signed on Monday in Banja Luka an agreement with China Investment & Development Company and China Machinery Engineering Corporation, related to construction of the Thermal Power Plant Gacko 2, in the southern part of Republic of Srpska.

Djokic also signed a framework agreement on long-term business cooperation with China Investment & Development Company regarding the implementation of strategic investment projects.

After the signing ceremony, Djokic said to the media that the plan of developments in energy sector include, among other things, the construction of the Thermal Power Plant Gacko 2 with minimum installed capacity of around 300 megawatts. The total worth of this project is estimated on about one billion BAM (500 million Euro). Djokic emphasized that a coordination body, which will be established in accordance with the agreement, will continue to analyse all parameters necessary for making investment decisions, such as assessment of previously estimated coal reserves in the area, value of the equipment necessary for the construction of projects and construction of a new building.

RS Prime Minister, Zeljka Cvijanovic, who attended the ceremony, said that she is pleased with the signing of two agreements with Chinese partners, one on strategic cooperation and the other on the construction of the Thermal Power Plant Gacko 2. She told reporters that the agreement on strategic cooperation is long-term agreement and his mail goal is establishment of the basis for cooperation in various fields.

"I believe we will foster the relations between RS and China through our future cooperation in various fields. Our development opportunity is tied to the interest of Chinese investors", Cvijanovic said.

General manager of China Investment & Development Company, Lingdz Zhao, said that the company is one of the largest companies among the China state-owned companies and is  presented globally in more than 100 countries where, in different ways, collaborate with local partners.

"With the RS delegation we discussed various forms of cooperation, which includes investment and trade", Zhao said.

He said that the company is present in Serbia where he wants to work on the project of wastewater treatment.

Vice President of the China Machinery Engineering Corporation corporation, Zigang Tong, said that the RS made the first step in cooperation with China relating to the project for construction of power plant "Gacko 2".

"Today's signing of the agreement means that our work has already started. We already formed a team and we want to end the year and start with construction job. I hope that the project Gacko 2 brings great benefit to the RS and its citizens", Tong told reporters.

The ceremony comes just a few days after the Energy Community sanctioned BiH, because state institutions failed to adapt laws necessary for membership in Community. Minister Djokic said that sanctions should not prevent RS to develop its energetic system.

"The introduction of sanctions to BiH comes at a bad time as it represents a very bad message to the Energy Community. It is not the fault of RS but it is the fact that RS is paying the price for irresponsible attitude of the Federation and BiH institutions and practically becomes subject to penalties, although it acts responsibly and conscientiously doing its job", Djokic told to reporters.

The signing ceremony was also attended by other officials including the General Manager of “Elektroprivreda RS”, Zeljko Kovacevic, executive director of Gacko Coal Mine and Thermal Power Plant, Srdjan Milovic, and representatives of the two Chinese companies./IBNA

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