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Construction delays at Kostolac thermal power plant result in €200 million loss for Serbia

The construction of Block B3 at the “Kostolac” thermal power plant has been delayed by over 15 months due to issues with the Chinese partner, resulting in an estimated loss of nearly 200 million euros for Serbia, the Serbia Center party announced. According to their statement, “The delay in completing and commissioning Block B3, which should have been finished more than 15 months ago per the latest Annex 12 with the Chinese partner CMEC, has caused Serbia to miss the opportunity to produce 3,000 gigawatt-hours of electricity.”

Energy and Mining Minister Dubravka Đedović Handanović reportedly received only a thank-you note from the Chinese CMEC after meeting with its president, failing to address whether the Chinese company would take responsibility for the damages incurred by the state. The party has questioned the minister about the reasons for the delay and whether compensation will be provided for the project’s setbacks. “Why was the originally agreed three-year deadline disregarded, especially when construction began in November 2017, following a contract signed in March 2013? The equivalent block at the TE ‘Stanari’ power plant was completed in just three and a half years, while our block remains unfinished even after seven years,” the party stated.

They have called for transparency regarding the current state of the energy system as winter approaches, emphasizing that time is critical. “Considering the dire situation within EPS and the Electric Grid of Serbia, which the Center for Serbia’s Energy Committee has consistently highlighted, we believe the only rational step is the resignation of Minister Dubravka Đedović Handanović,” the party’s announcement concluded.

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