Representatives of Holding Slovenske elektrarne (HSE) and Republika srpska, the Serbian entity in Bosnia-Herzegovina, agreed on Friday that HSE and the Ugljevik thermal power plant would establish a joint venture with HSE as the majority owner.
HSE chief executive Joze Zagozen said that he reached an understanding with the Prime Minister of Republika srpska Milorad Dodik and Economy and Energy Minister Rajko Ubiparip that paved the way for HSE to participate in the renovation and expansion of the Ugljevik plant.
According to Zagozen, partners from Republika srbska will also invest in the project, there will however be no public tender, as participation in this project is part of the balancing out of investments made by Slovenia into the energy sector in Bosnia-Herzegovina during the times of the former Yugoslavia.
Zagozen assessed that the overhauling of the plant's 280MW block could already begin next year and would cost between EUR 60m and EUR 70m. The construction of a new 300MW or 400MW block could on the other hand begin in a few years time, costing between EUR 250m and EUR 300m.
He moreover explained that the deal divided all the main electricity potentials in Republika srbska between the Czech power company CEZ and HSE.
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