June 2 (SeeNews) - Chinese company CMEC is expected to break ground for a 350 MW unit at Serbian coal miner and power producer TE-KO Kostolac as soon as it obtains a building permit for the facility, with completion scheduled for 2020, state-owned energy utility EPS said on Thursday.
The implementation of the project officially began on January 4 when EPS made an advance payment to the contractor in accordance with the deal signed in November 2013, the power utility said in a statement refuting claims made by local media that the deadline for the start of construction has been breached.
EPS is currently preparing the documents needed to be issued a building permit, it noted.
Legally required archaeological research of the construction site is also underway as Unit B of Kostolac TPP is located on a protected area in the vicinity of the Viminacium site, EPS also said.
Serbia's government said earlier that the addition of a new unit will cost $715.6 million (641.2 million euro), while funds for its implementation are being provided under a preferential loan from Chinese bank Exim backed with guarantees extended by the government.
TE-KO Kostolac, located in eastern Serbia, has an installed power generation capacity of around 1,000 MW.
($=0.8936 euro)