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Reading: The third Warning to the Chinese Consortium before the Termination of the Contract on the Construction of Block 7
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Sarajevo Times > Blog > WORLD NEWS > The third Warning to the Chinese Consortium before the Termination of the Contract on the Construction of Block 7
WORLD NEWS

The third Warning to the Chinese Consortium before the Termination of the Contract on the Construction of Block 7

Published October 10, 2023
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Chinese Consortium China Gezhouba Group Company Ltd. and China Energy Engineering Group Guangdong Electric Power Desing Institute Co. Ltd (EPC contractor), with whom the Contract for the construction of Block 7 in the Tuzla Thermal Power Plant was signed on August 27th, 2014, until now, with the consent of the Federation of Bosnia and Herzegovina (FBiH)Government, got three warnings before the termination of the Contract with an invitation to fulfill its obligations and approach the implementation of the Contract, it was announced fromPublic Utility Elektroprivreda BiH.

In September 2020, the consortium informed Elektroprivreda BiH about the withdrawal of the contracted subcontractor for key equipment and during 2021 and 2022 proposed alternative subcontractors for key equipment.

Taking into account the new circumstances, Elektroprivreda BiH, with the consent of the FBiH Government, formed an expert team for negotiations with the Consortium with the aim of realizing the Contract with new subcontractors of key equipment, while providing the best conditions for Elektroprivreda BiH and the FBiH.

Acknowledging the assessment of the expert team that the offered alternative subcontractors of key equipment do not have the required references, knowledge and experience for the realization of the Contract on the construction of Block 7, Elektroprivreda BiH, with the consent of the Government of FBiH, made a decision not to accept alternative suppliers of equipment and informed the Consortium about this, with a request to join the realization of its contractual obligations in accordance with the valid Agreement.

Depending on the further actions of the Consortium, Elektroprivreda BiH will take the next steps to protect its own interests and those of the FBiH, it was announced.

E.Dz.

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