Member Article

Recent news reports are informing us that an Anglo-Chinese consortium, consisting of British company Scarborough Group International and the Chinese owned China National Electric (CNEEC) company, has signed a contract to build a thermal power plant in Loznica, in the amount of EUR 230 million. The consortium received additional financial support from the China Development Bank, while the Chinese insurance company Sinosure also showed interest in participating in the project.

The construction of the plant – with a planned capacity of 240 megawatts (MW) – will be undertaken by CNEEC, as the first phase of the project (120 MW of the total capacity) is expected later this year with the estimated completion by the end of 2018. The second phase of the project (the remaining 120 MW) should start the following year.

According to the consortium, the aim of this project will be to convert the obsolete coal-fired plants into pure organic plants, at the same time bringing an array of different benefits to Serbia, including 150 work places, a boost to the local economy in Loznica, as well as a reduced national dependency on imported electricity and overall improved energy security.

This deal comes as another one in a growing line of Serbia's projects with China, further strengthening the relationship between the two countries after last month's visit of the Chinese president. However, in this particular case, it has been reported that there were no government guarantees required, considering the fact that the consortium is fully private and supported by the China Development Bank.

On the other hand, Scarborough – one of the most active private British corporations in the field of real estate – initially took over the project in Loznica as part of the privatisation process a few years ago. Kevin McCabe, Scarborough's President, thanked the Serbian and Chinese ministries and state-owned enterprises, as well as the mayor and municipality of Loznica, for ensuring the smooth process that led to the deal being signed.