A consortium of UK-based Scarborough Group International and state-owned China National Electric Engineering (CNEEC) have signed an agreement to develop a new €230m combined cycle natural gas-fuelled heat and power plant project in Serbia.
The scope of the deal involves engineering, procurement, and construction of the 240MW power project in the city of Loznica.
CNEEC will be responsible for the construction of the project, which will developed in two phases.
Work of the 120MW first phase is expected to commence by the end of this year. It is expected to become operational by the end of 2018.
The consortium plans to commission the 120MW second phase about one year later.
CNEEC's vice-president Liao Shengsong said: “These are milestone agreements, opening the doors for greater cooperation between Serbia and China especially with our partners, Scarborough.
“Furthermore, CNEEC will work to promote local economic growth and development of clean energy in Serbia.
“We will provide high-quality projects so as to pursue common development under the principle of reciprocity and enhance friendship between China and Serbia.”
The project will receive financing from China’s Export & Credit Insurance Corporation (Sinosure).
In addition to helping in improving strategic ties between China and Serbia, the new project is expected to reduce the European country’s dependency on imported electricity while improving energy security.
Image: Illustration of the planned 240MW combined cycle natural gas-fuelled heat and power plant project in Serbia. Photo: courtesy of Scarborough Group.