Main power utility PPC and China’s CMEC (China Machinery Engineering Corporation) signed a Memorandum of Understanding in Athens today for a joint plan to construct a second lignite-fired power station in Florina, northern Greece.

Besides leading officials representing the two companies, the signing ceremony was also attended by Greek energy minister Panos Skourletis and the Chinese ambassador to Greece Zou Xiaoli.

“The signing of the MOU comes as further proof that the Greek economy has overcome the worst and is now progressing from the stabilization to recovery stage,” Skourletis noted. “This partnership represents part of a new strategy for PPC, one of strategic partnerships with reliable partners able to provide new momentum against choices seeking the corporation’s contraction.”

The Chinese ambassador to Greece made reference to Prime Minister Alexis Tsipras’s recent official visit to China, noting it highlighted that cooperation between the two countries stands at a good level, while adding that the country possesses rich lignite, wind and solar energy capacity.

CMEC’s deputy chief Fang Yanshui noted that the level of cooperation between Greece and China rose to a new level following the Greek prime minister’s visit to China, while also taking the opportunity to offer a description of the corporation’s activities around the world.

PPC boss Manolis Panagiotakis expressed hope that Meliti II, the new power station to be developed with CMEC in the Florina area, represents just the beginning of a strategic partnership between the two sides.

Aktor, a Greek corporation whose portfolio includes mining, quarrying, construction, photovoltaics, facility and project management activities, and Italian power grid company Terna may also join the venture.

The plan for Meliti II entails development of a 450-MW power station at a cost of 750 million euros. Necessary work needed at the regional mines to feed the facility will raise the cost to one billion euros. PPC is believed to be open to the prospect of becoming a junior partner in this venture.

The PPC boss and CMEC’s deputy are scheduled to hold a meeting with the Greek prime minister tomorrow.