EFT and Dongfang Electric Corporation in EPC deal for Stanari TPP

One of the world’s leading manufacturers of power plant technology, China’s Donfang Electric Corporation concluded a deal today with the EFT Group today to build the Stanari thermal electric power plant in Bosnia and Herzegovina. The deal is a first of its kind in Europe for Chinese manufacturers, and signals a major new development in the European energy sector.

“EFT negotiated with four manufacturers of power plant equipment for the Stanari project, but Dongfang’s offer was by far the most competitive. The Chinese manufacturer will build a 300 MW plant on a “turn-key” basis in a 45 month period. The plant will have a high level of efficiency and will operate in line with the EU emission directives. The total value of the project is EUR 500 million, of which EFT will finance 25% from own equity and the rest will be covered from credit by a consortium of Chinese and European banks”, said EFT Group Chairman, Vuk Hamovic.

Dongfang is one of the world’s leading producers of energy equipment. In 2009 it installed plants with the installed capacity of 30 000 MW, and achieved a turnover of EUR 3.7 billion. The company operates in 22 countries and employes 24 000 people.

Dongfang’s President Wen Shugang said the Stanari project was “an important step in establishing Dongfang’s presence in Europe, as it will be an important reference for the company’s future projects on the continent”.

The feasibility study for the Stanari TPP has been revised to set the following key parameters:

· The generation unit has an installed capacity of 300 MW
· Net Power Capacity 265 MW
· Gross efficiency 38.5 %
· Expected annual Power Plant Production is 2 000 000 MWh (at base-load operation)
· Complete flue gas treatment to meet EU directives
· Dry cooling system
· Ash and residue disposal within the excavated areas of the Stanari mine
· Connection to the existing 400 kV trasmission line Tuzla-Banja Luka

The Stanari TPP will be the first energy generation unit in Bosnia and Herzegovina to fully abide by the EU directives (2001/80/EC) on protection of the environment. The plant will set new standards in south east Europe not only for energy efficiency, but also for minimizing any harmful impact on the environment.

The plant is expected to enter commercial operation in the second half of 2014.