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Mr. Keqiang: The door of the Chinese market is wide open

Mr. Li Keqiang, the Premier of the People’s Republic of China, said that Bosnia and Herzegovinabecame a good friend of PR China and a good partner in Central and Eastern Europe.

- Rapid development of our bilateral relations has set a firm basis for our pragmatic cooperation – said Mr. Keqiang in the interview for today’s edition of the newspaper “Oslobođenje”.

Tomorrow, the Premier will participate in the summit of prime ministers of 16 Central and Eastern-European countries and PR China in Belgrade, wherein the BH delegation will also participate.

- Thermal Power Plant Stanari is the first project in thecooperation between PR China and countries of Central and Eastern Europe, built within the frame of special credit line of 10 billion US dollars. This year, Chinese companies have won the tender for Block 7 Thermal Power Plant in Tuzla and the Combined Heat and Power Plant in Zenica. We are pleased with the existing cooperation and full of expectations for the future. Next year, weshall celebrate the 20th anniversary of establishment of diplomatic relations between our countries. The Chinese side is ready to take the chance and work with joint efforts with Bosnia and Herzegovina, to completely use the potentials of our pragmatic cooperation and expand areas of cooperation through close exchanges in order to put our bilateral relations on a higher level, in a more active and stable manner – said the Premier of PR China.

While speaking about the manner in which the cooperation between PR China and countries of Central and Eastern Europe can coordinatewith efforts of partnership establishment for peace, growth, reforms and civilization between PR China and the EU and Chinese initiative “Belt and Road”, the Premier said that PR China supported the countries of Central and Eastern Europe with concrete actions in accelerating their own development and promoting the overall development of the EU.

- PR China has always firmly supported the process of European integration with hopes to see Europe as more united and more prosperous. PR China understands the political will of countries of Central and Eastern Europe to join the EU and respects the independent choice thereof. PR China has supported the countries of Central and Eastern Europe with concrete actions in accelerating their own development and promoting the overall development of the EU. PR China and the EU, the biggest developing country and the biggest group of developed countries currently in the world, share the same growing interests and deepen the mutually beneficial cooperation thereof. We have full confidence in future development of relations between China and Europe – said Mr. Keqiang.

The special credit line of 10 billion US dollars and the Investment Fund for the cooperation between PR China and countries of Central and Eastern Europe, as stated by Mr. Keqiang, have offered effective solutions for financing of companies from the countries of Central and Eastern Europe. Several large projects such as Thermal Power Plant Stanari in Bosnia and Herzegovina, Mihajlo Pupin Bridge in Belgrade, Bar-Boljare highway in Montenegro and Belgrade-Budapest railway connection, according to Mr. Keqiang’s opinion, shall definitely strengthen local development and bring benefit tolocal people.

- The trade between PR China and the countries of Central and Eastern Europe is for the first time expected to exceed 60 billion of US dollars. Goods/Products from the countries of Central and Eastern Europe enter more and more average households in China. Preliminary statistics indicate that nearly 1000 of companies from Central and Eastern Europe do business in PR China.

Press:
17th of December 2014, Biznis.ba
Fena (Federal News Agency BIH)

KTG: Experts with Mr. Smajlović

The preparations for works on the Combined Heat and Power Plant KTG in Zenica, Bosnia, have intensified over the last seven days, during the visit from the German company STEAG and around 30 experts of the Chinese state owned company SEPCO III, working on coordination of technical issues related to this future large energy facility construction.

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The power plant construction project is of great importance for the town of Zenica and the region, as its completion shall strengthen the B&H energy sector, which has the plan to implement new capacity of total 1,500MW. The company ElektroprivredaBiH shall become a powerful economic segment upon the construction of the generating capacity Tuzla 7 of total 450 MW, thermal power plant Stanari near Doboj of 350 MW, Zenica gas fired combined heat and power plant of 350 MW and KakanjIV of 450 MW. The generating energy chain shall include the previously planned Vranduk and Janjići I hydropower plants along with several small hydropower plants which shall define the B&H energy product strategically.
After seven days of negotiating, the Chinese and German experts along with the KTG Zenica representatives have presented the achieved progress in the Zenica combined heat and power plant project development to the Zenica Municipality Mayor, Mr. HuseinSmajlović and his associates. The construction of this energy facility is of great importance for Zenica, because, in addition to electricity generation, this local community shall gain a new district heating source for the town and infrastructure facilities with extremely significant improvement in environmental protection of air and soil.
German Siemens is constructing a similar energy facility of total 400MW in the Austrian town of Melach, with additional thermal energy use for the heating of Graz and a good utilization of 76%, which proves that this should be an important segment in the future life of Zenica. The construction importance of Zenica energy facility shall have a triple utilization; generation of energy, thermal power and cleaner air. /FENA/

PRESS:
- 31st July 2014, FENA
(Source: Federal News Agency BIH)

 

COMBINED HEAT AND POWER PLANT – THE MOST IMPORTANT INFRASTRUCTURE PROJECT IN ZENICA

LONG TERM GAS SUPPLY AGREEMENT HAS BEEN SIGNED

ELECTRICAL POWER OF TOTAL 390 MW AND UP TO 170 MW OF THERMAL POWER FOR DISTRICT HEATING IN ZENICA

CHPP ZENICA WOULD BECOME THE FIRST INDEPENDENT POWER PRODUCER IN B&H

CHPP Zenica construction project, the most important infrastructure project in Zenica and one of the most important energy projects in this part of Europe, had been considered a failure by many people. Signing the long term gas supply agreement with the company MET International AG Zug Switzerland (on the 4th of July) for the period of fifteen years could lead to its soon realization. On behalf of the company MET International, the Agreement has been signed by the CEO, Mr. GergelySzabó and the CFO, Mr. Peter Pozsgai, while on behalf of the company KTG Zenica, the Agreement has been signed by the CEO, Mr. Rade Montenegro and the Secretary of the Board, Ms. KajaImširović. Signing of the Agreement has also been attended by Mr. Benjamin Lakatos, CEO/MET Holding AG Switzerland.
The project worth of half billion KM (250 million EUR) whereat electrical power of total 390 MW and up to 170 MW of thermal power for district heating requirements in the city of Zenica would be produced, would become a great thing for this area. Local companies working as subcontractors should gain a major piece of the pie. The new power station should also represent a reliable thermal power source for the district heating system inZenica.
For years Zenica residents have been waiting for an adequate solution to the district heating issues. Majority of residents do not simply trust the company ArcelorMittalZenica anymore, wherein old depleted boilers produce thermal power and consequently, cause a lack of trust in the Public Company “Grijanje” as distributor.

PRESS:
- 13th July 2014, OSLOBODENJE,
(Source: OSLOBODENJE)

 

Permits have been issued

CHPP Zenica would be the first independent power producer (IPP) in Bosnia and Herzegovina and it can significantly contribute to electrical power balance in our country and region. With regard to the old coal-fired thermal power plants’ state, a flexible gas-fired combined heat and power plant can contribute to pollution reduction and the system flexibility in B&H. It would have, as previously predicted, 80 employees. It has been estimated that the commercial operation could start in 2016. The arrival of the Chinese, the Chinese state-owned company SEPCOIII to be more precise, which shall be the contractor (they signed the Agreement on 15th of June 2013) has been met with skepticism in the public eye. We have found they have committed to finish the CHPP KTGconstruction project in 29 months-time, whereby the construction will last for 25 months while the tests will last for 4 months. They have also taken on the obligation that China finances 85 % of the project construction.
Many sources have confirmed for “Oslobođenje” that, when it comes to ownership i.e. co-ownership proportions in the company KTG Zenica, KTG AG (Lugano, Switzerland)has 65% share, the Municipality of Zenica has 25%, while HTG (HK) ENERGY INVESTMENT LIMITED has the remaining 10% share.
“Permits/Approvals for the beginning of construction have been obtained by the authorized/relevant institutions. The conditions for the connection of the CHPP Zenica to the transmission network have also been obtained by the company “ElektroprenosBiH”. The Phase I of the Mission G21 has been completed. Due to obtaining the Urban Permit, the construction preparation of the site office and living area for the SEPCOIII’s employees during the CHPP Zenica construction has been carried out.Deloitte &Touche Financial AdvisoryServices Limited (Peking, China) is the project company’s financial advisor. King&WoodMallesons Shanghai Office is the project company’s legal advisor.We have been informed that the remaining project participants are as follows: General Electric (USA), STEAG (Germany), Lahmeyer International, Alpiq and AIL SF Ltd from Switzerland, MOL (Hungary), ArcelorMittal (Luxemburg), Chinese companies SEPCO III, HTG, Deloitte &Touche and King&WoodMallesons, Croatian company EI HrvojePožar, B&H companies Geosonda and Energoinvestwth their partners DERK, FERK, ElektroprenosBiH, the Government of the Federation of Bosnia and Herzegovina, Zenica-Doboj Canton and the Municipality of Zenica.
Since 2010, CHPP KTG Zenica have been included in the B&H energy strategy and due to the project’s complexity, the project company has been obliged to obtain more than 50 permits/approvals to meet all prerequisites for the beginning of construction. Concerning the basic CHPP KTG Zenica’s configuration, there are:power grid connection of 220kW, BH Gas line Zvornik-Sarajevo-Zenica connection, 2 gas turbines of 127 MW each, 2 HRSGs, steam turbine of 137 MW– GE or Alstom, the town’s district heating –heat exchangers and 2 hot water boilers with 45 MW each, accessory facility, raw water supply from the river Bosnia’s intake, automated process and continuous control of emissions to air and water. The CHPP operating mode includes electric and thermal power generation in base load operation mode, variable electric power generation depending on the market demands and thermal power generation by using the combi-cogeneration cycle and hot water boilers’ assistance. The CHPP KTG Zenica expects base load operation mode with approximate time of 5.700 hours per year, possible scenarios assumed which may be imposed by the electricity market demands – operation with approximate time of 7000 hours per year and the operation with approximate time of 8000 hours per year and the feasibility study which includes the three above-mentioned operation mode options. CHPP KTG Zenica’s management would completely be automated from the DCC (Distribution Control Center).
According to the design/project, ecological and technical advantages of the CHPP KTG Zenica’s operation are ecologically clean electric power generation, emissions to air and water guaranteed to be under permissible limits, stable district heating in Zenica, significantly improved/better ecological conditions, increase of the B&H electric power system to voltage levels 110 kV and 220 kV and the new electric and thermal power producer in B&H.

PRESS:
- 13th July 2014, OSLOBODENJE,
(Source: OSLOBODENJE)

 

Quality source

The worst for foreign or local investors in B&H is to begin something and then withdrawn. A large number of approvals and permits, such as urban permits, construction permits and many others by all possible and necessary levels of authority, have been obtained, a lot of effort and political lobbying have been put, arranging all possible paperwork/documents, site, grid connections, solving the procurement of energy-generating product as raw material (gas) etc.. Has anyone earned money for the abovementioned? Someone probably has.But, what matters is that the project realization should bring the prosperity to all of us. In fact, the Municipality of Zenica is the KTG Zenica’s co-owner with 25% share. The Municipality has granted the CHPP Zenica’s construction site within the Business Zone “Zenica I” of 5 hectares.Zenica will get a quality thermal power source sufficient to meet the actual needs of district heating system along with the future increase consumption which will occur in the moment of extending the existing district heating network to suburbs. The amount of 25% of the profit which will improve the municipal budget has also been planned herein.
The Chinese, the Kazakhs, the Swiss, either local or foreign installers, investors, workers, it does not matter to Zenica’s residents who or how when it comes to the CHPP, as long as their homes will be warm. There is no need to mention the benefits for local companies which will be engaged in the capital project realization.

KTG ZenicaSupervisory Board and Management

The Supervisory Board KTG Zenicaincludes Mr. Rade Montenegro (Swiss citizenship) as the President, Mr. SelverKeleštura (B&H) as the Vice President and Mr. Albert Jaussi (Switzerland), Mr. MuhamedBegagić (B&H), Mr. Hani A. Z. Yamani (Saudi Arabia), Mr. Johannes Back (Germany), Ms. Liu Nai’e as the members of the Board.
The company’s management includes Mr. Branko Montenegro (Director), Mr. MirzaTopčić (Technical Director) and Ms. KajaImširović (Procurator).

PRESS:
- 13th July 2014, OSLOBODENJE,
(Source: OSLOBODENJE)

 

The Chinese have recognized the potential of Zenica

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The Mayor of Zenica, Mr. HusejinSmajlović, has welcomed the Ambassador of Bosnia and Herzegovina to the People’s Republic of China, Mr. BorislavMarić and the representatives of the company “KTG Zenica” with whom he has talked about the project realization of the gas fired Combined Heat and Power Plant Zenica(CHPP Zenica) wherein several major Chinese companies take part. The Mayor has informed the Ambassador about actual situation and with special reference to the situation in the areas affected by floods and landslides.

He has shortly presented the greatest achievements of the municipal administration in the past few years, pointing out that the Municipality of Zenica needs support by the Ministry of Foreign Affairs Bosnia and Herzegovina in this crucial CHPP Zenica construction project due to the increased number of Chinese experts coming to Zenica so visa procedures should be simplified in the interest of efficiency and better project implementation.

Ambassador Marićhas presented his positive observations regarding the evident progress achieved in the town’s infrastructure and expressed his full readiness to assist in promoting the investment in Bosnia and Herzegovina and Zenica by major Chinese companies. These projects are currently being carried out in the area of infrastructure and energy and in this respect, Zenica has made considerable progress by establishing a direct cooperation with the Chinese companies HTG and SEPCOIII. Upon the meeting at the Municipality, the Ambassador has visited the company KTG Zenica whereat he has also talked to the Chinese companies’ representatives, resident and working in Zenica for a long period of time.

PRESS:
- 15th August 2014, ZENICA.BA
(Source: Official Website of the ZenicaMunicipality)


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