CMEC, following PPC agreement, to develop power station in Serbia

Following up on its recent agreement with the main power utility PPC to examine the prospect of constructing a new coal-fired power station, Melitis II, in the Florina area, northern Greece, CMEC (China Machinery Engineering Corporation) is proceeding with the development of a new power station in Serbia as part of the Chinese firm’s wider plan to expand its activities in the Balkan region.

CMEC has reached an agreement with Serbia’s EPS to construct of a new, state-of-the-art thermal electricity production station in Kostolac, eastern Serbia. This unit will utilize coal deposits in the Drmno area.

The plan includes using a new VI ECS coal-excavating unit worth 123 million dollars to help boost coal output at the Drmno deposit. The objective is to increase coal production from the present level of 9 million tons per year to 12 million tons.

The Serbian power station project is being developed by a consortium that is headed by CMEC and includes Germany’s Krupp, Austria’s Sandvik, as well as Serbian firms.

The total cost of the project, including the new power station and the coal deposit’s expansion, is worth 715.6 million dollars. A China Exim Bank loan will cover 608 million dollars of this amount, while the remainder will be provided by the EPS corporation.

The Serbian power station is scheduled to be completed in 2020.

As for the prospective Melitis II power station in northern Greece, a team of CMEC technical officials recently visited the area to assess the existing infrastructure – Melitis 1 and the mines – in order to prepare a report for the company’s administration. A CMEC decision on whether it will be interested in developing the Florina project is expected in spring.