Capital investments in Serbian energy sector
-Construction of new facilities-
The tender for selection of strategic partner for construction of new power plants TENT B3 and TE Kolubara B is being expected in the third quarter of 2007, while the signing of the contract with selected partner is planed for second quarter of 2008.
Management board of Electric power industry of Serbia EPS adopted the information on realization of joint investment of EPS and strategic partner in the construction of thermo power facilities TENT B3 (700mw) and Kolubara B (2x350 mw). Strategic partner will be selected in a tender procedure and project companies will be founded as Ltd companies which are the most appropriate model for planed joint investment. Assets ratio of EPS and strategic partners in the basic capital of project companies will be defined after tender procedures, decision making on the most important steps will be made with mutual consent of both sides regardless of their share in the companies.
Total estimated value of investment in the plant Kolubara B is 750 mill Euro. EPS will deposit in the new joint company non financial share in assets and objects, rights and investment which will cover various preparatory works and services, while the strategic partner would have both non deposits as well as money capital deposits. When it comes to the TENT B3 project company total estimated value of this investment is app. 900 mill. Euro and EPS will invest in this company, beside the non financial deposit, significant ammount of financial assets what represents that this investment is even more real.
Considering the importance of this planed capital investments it is logical to consider the active role of government of Serbia especially within the scope of providing of support to selected model of investment realization and regulation of relations with strategic partners and their rights protection.
For realization of this model of joint venture it is necessary to perform two separate tender procedures for selection of strategic partner, also it is crucially important to produce the appropriate model of contract for purchase of electrical energy which will be produced in these new companies and that will be purchased by EPS on a long time agreement base.
It is planed that EPS in the first five years takes 100% of produced electrical energy, what is usual credit condition, and for the time period between 6 and 15 year, the strategic partner will submit the proposal of, within the tender application, the structure of delivery of electrical energy to EPS and of course with the right of first buyer. Beside these elements of relations regulations with strategic partner, the tender documentation for TENT B3 will contain important elements of rules of joint usage of existing infrastructure of TENT
----Source TENT magazine----
Obrenovac as Serbian & Balkan energy center will host and be in the center of this planed capital investments and even more increase its strategic and business importance in Serbia. Strategic position of Obrenovac, closeness of Belgrade and its airport are the advantages already interesting and attractive for foreign companies interested in energy market entry but as well on other related sectors.
For sure we can say that Obrenovac is becoming the business centre beyond the energy capital, place that can meet any investor needs.
www.investinobrenovac.com
