CMEC (China Machinery Engineering Corporation) appears to have decided to put on hold the prospect of developing and acquiring majority control of Meliti II, a second carbon-fired power station planned by the main power utility PPC in the Meliti area, close to Florina in the country’s north.

The Chinese company, which has deployed a technical team on a fact-finding mission over the past few months, is troubled by the prospect of a new tender for mining rights in Vevi, whose supply is crucial to the feasibility of Meliti II. Energy minister Giorgos Stathakis recently announced a new tender for Vevi would need to be staged.

Hestitancy has also set in at CMEC as a result of a bailout-required plan obligating Greece to sell a proportion of carbon-fired power stations operated by state-controlled PPC.

According to energypress sources, CMEC has requested an official update on the developments.

A Memorandum of Understanding (MOU) signed by PPC and CMEC last September was regarded as a move in the direction of new PPC partnerships sought by the energy ministry for the power utility.

The plan that had been announced entailed CMEC holding a majority stake in a partnership with PPC for Meliti II, whose construction would be fully funded by the Chinese company, as well as Meliti I, an existing unit.