SARAJEVO (Bosnia and Herzegovina), December 1 (SeeNews) – Bosnian state-controlled brown coal miner Banovici [SAJ:RMUBR] said on Tuesday it expects China's Dongfang Electric Corporation to start works on the construction of a 350 MW thermal power plant (TPP) by the end of September 2016.
Banovici signed a strategic cooperation agreement and the contract on the engineering, procurement and construction of the power facility with China's Dongfang last week, the general director of the Bosnian company, Munever Cergic, told SeeNews over the phone.
Cergic added that the company has also concluded a framework contract for the project's funding with the Industrial and Commercial Bank of China (ICBC).
The company plans to conclude the final loan agreement with ICBC in March or April next year.
Last week, Bosnia's Council of Ministers said that the TPP construction project is valued at some 400 million euro ($424.6 million).
In July, Banovici said three Chinese companies had filed bids in the final stage of the tender for a potential partner that will finance and build the TPP. Along with Dongfang, bids were filed by Shanghai Electric Group Company and China Gezhouba Group Company.
RMU Banovici is one of the biggest coal mines in the Federation, one of the two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.
Dongfang is currently involved as contractor on the 300 MW Stanari thermal power plant in the Serb Republic.
($=0.94 euro)