May 22 (SeeNews) - Croatian state-owned power utility HEP is holding negotiations to purchase a 50% stake in Bosnia's 300 MW Stanari thermal power plant (TPP) from UK-based EFT Group, local media reported on Monday.
The deal is seen as a means to solve electricity shortages within HEP, news portal Vecernji List said, citing unnamed sources.
Late last week, Crotian news portal Jutarnji List reported that HEP is seeking to become a full owner of Stanari TPP.
EFT Group was awarded a concession contract to develop the Stanari TPP in 2008. The total value of the undertaking is estimated at over 560 million euro ($625.4 million).
The construction works on the power station, located near the Stanari coal mine in the area of the town of Doboj, began in 2012. The main building contractor was China's Dongfang.
The power station is planned to have an annual output of 2,000 GWh while the annual coal consumption is estimated at 2.3 million tonnes.
The Stanari coal basin is situated some 70 km east of Banja Luka, in central Bosnia and Herzegovina. EFT has been operating the mine since May 2005.
EFT Group is an energy trading and investment group, focused on Western, Central and Southeastern Europe.
($=0.8953 euro)