BANJA LUKA (Bosnia and Herzegovina), April 5 (SeeNews) - Russian-owned Comsar Energy said it plans to invest 800 million euro ($1.1 billion) to build two 300-megawatt thermal power units in Bosnia’s Serb Republic.
In a letter of intent carried by Bosnian news portal Capital.ba (www.capital.ba) Cyprus-registered Comsar Energy says it plans to invest 400 million euro within 30 months in the construction of Ugljevik II unit and in the opening of a new coal deposit at the Ugljevik mine.
If estimates show that there are enough coal reserves at the deposit, Comsar will launch the construction of the Ugljevik III unit, where investment also is seen at 400 million euro.
In order to implement this investment Comsar says it will need two concessions – one for coal exploration and another one for the construction of the power units. It therefore offers to set up a 90/10 joint venture firm with the Serb Republic’s RiTE Ugljevik coal mining and power generation complex that will be called Comsar Republika Srpska and would operate the concessions.
Comsar Energy, owned by Russian businessman Rashid Sardarov, said it will finance the investment from its own funds that have already been secured.
RiTE Ugljevik is operating one power generation unit with installed capacity of 300 MW that could reach an annual output of 1,601 gigawatthours.
Rashid Sardarov owns South Urals Industrial Company, which has an annual turnover of $1.5 billion and employs 1,500 people, the letter of intent said.