Xinhua reported that as part of a 1.25 billion dollar agreement, Serbian and Chinese officials signed a 344 million dollar contract for the first phase of work to upgrade the outdated Kostolac thermal generating plant, on Wednesday in Belgrade.

Mr Dragomir Markovic general director of the Electrical Power Company of Serbia, Mr Dragan Jovanovic director of the Kostolac thermal generating plant and Mr Jin Chunsheng of China National Machinery and Equipment Import and Export Corporation signed the agreement at a ceremony before the Serbian Minister of Mining and Energy Mr Petar Skundric and the Chinese ambassador Mr Wei Jinghua.

Mr Markovic EPS director said the Kostolac B plant is located East of the capital Belgrade, near the Romanian border. The scheduled upgrades are expected to bring the plant to its full capacity of 700 megawatts to prolong its useful life by a decade, and to bring the coal-powered thermal generating plant in line with European environmental standards with the construction of a desulphurization facility.

Mr Markovic also said the project scope encompassed railway and port facilities on the Danube River, for the movement of limestone for the desulphurization system and transportation equipment. Approximately 220 million dollars is to be financed through China Eximbank with the remainder to be raised by EPS itself. Work is expected to begin in three months once funding comes available.

(Sourced from Xinhua)