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Reading: Three World Companies in Race for Construction of Block 7 of Power Plant ‘Tuzla’
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Sarajevo Times > Blog > BUSINESS > Three World Companies in Race for Construction of Block 7 of Power Plant ‘Tuzla’
BUSINESS

Three World Companies in Race for Construction of Block 7 of Power Plant ‘Tuzla’

Published: May 27, 2013
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Tuzla_panorama_1The company ‘Elektroprivreda BiH’ will officially open on 24 June offers for the most serious candidates that will enter the short list for the selection of project partners for a joint venture in the construction of Block 7 of the power plant ‘Tuzla’, according to portal Tip.ba.

This was confirmed to ‘Dnevni Avaz’ by the General Director of ‘Elektroprivreda BiH’ Elvedin Grabovica, who said that this involves world consortiums, but that he cannot reveal the names of the companies at this time.

“Before the opening of the offer, I cannot say anything, because I do not know who has met the requirements and which companies will enter into the final race. I only know that this is a serious consortium. We will know everything at the end of June. These are global well-known companies in this area’’, said Grabovica.

The construction of Block 7 is the biggest post-war investment project, which is worth 1,5 billion KM, and in which ‘Elektroprivreda BiH’ will participate with a primary capital of 25 percent.

“I think that three companies will pass the final phase, and after that these companies are required to submit a final offer, more specifically the price of the construction of Block 7. Here is where models and building technologies will be evaluated, as well as conditions for financing. They must provide evidence that there will be financing for the entire project’’, said Grabovica. He added that ‘Elektroprivreda BiH’ has the condition that companies that wish to build Block 7 cannot be majority owners.

According to Grabovica, the companies that want a majority stake cannot get into the short list, nor will they actually participate in the construction.

The criteria for pre-qualification of the first phase of the project partners was met by companies such as ‘Siemens’, ‘Hitachia’, ‘Cobra’ from Spain, followed by ‘Croatian Elektroprivreda’ in consortium with Japanese ‘Toshiba Corporation’, and the Polish company ‘Rafako’, ‘Cengiz Enerji Sanayii ve Ticaret’ from Turkey.

Grabovica told ‘Dnevni Avaz’ that ‘Elektroprivreda BiH’ has still not signed a tender for the sale of surplus energy.

“We are waiting to see how prices will move. I think that in August we will announce the tender. It would not be worth now to sell electricity, because it is cheap. We are waiting for prices to increase’’, he said.

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