China's CNEEC to Build $255mn Gas Fueled Power Plant in Serbia

UK-based Scarborough Group International and state-owned China National Electric Engineering Co (CNEEC) have signed an EPC agreement for the development of a new €230 million ($255 million), 240 MW, combined cycle natural gas fueled heat and power plant project in the city of Loznica, Serbia.

Under the agreement CNEEC will undertake the construction of the entire project.

First phase of the project providing 120 MW, will start as early as the end of 2016, and become operational by the end of 2018 and second phase, for the remaining 120MW is expected to be delivered about one year later, Scarborough said in a statement on Tuesday.

The Scarborough-CNEEC consortium has also got the support from a Chinese state-owned bank, to finance the project. Sinosure (China’s Export & Credit Insurance Corporation), which could provide export credit insurance on the financing package, also expresses its interest in the project.

Scarborough acquired the Loznica project several years ago from the Serbian government under a privatisation scheme. The target of the project is to change the old-fashioned coal-fired power plant into a clean energy natural gas power plant.