CMEC, fearing developments, places Meliti II plan on hold

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.