Czech and Bosnian Serb Companies to Build Power Plant

A cornerstone was laid Wednesday in the southeastern Bosnia-Herzegovina's town of Gacko for a new thermo-power plant to be run by Czech and Bosnian Serb electric companies.

Martin Roman and Pantelija Dakic, representatives of the Czech CEZ Electric Company and Elektroprivreda of the Bosnian Serb entity, the Srpska Republic, signed the deal before the cornerstone ceremony.

The contract, under which CEZ now owns 51% of the capital in the thermo-electric power plant Gacko, and the Bosnian Serb Elektroprivreda 49%, predicts reconstruction of the Gacko 1 power plant and construction of a new plant – Gacko 2.

The new plant would be the biggest thermo-electric power plant in the Southeastern Europe, with 660MW capacity, and would be constructed in accordance with the highest European environmental standards.

The deal with the CEZ company has been the best business deal of the Srpska Republic so far, reaching €1.4bn.