UK-based Scarborough Group International has signed an engineering, procurement, and construction (EPC) agreement with state-owned China National Electric Engineering (CNEEC) to develop a new €230m combined cycle natural gas-fuelled heat and power plant project in Serbia.

The 240MW power project is planned for the city of Loznica and will be entirely constructed by CNEEC in two phases.

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The Phase I is designed to provide 120MW of power and will commence construction by the end of this year. It is expected to be in operation by the end of 2018. Nearly one year later, Phase II will be able to produce the remaining 120MW of energy.

The new project will not only help improve strategic ties between China and Serbia, but will also boost the local economy with the country’s reduction in dependency on imported electricity.

The Loznica plant will also be able to generate more than 150 new highly-skilled job opportunities, as well as other jobs for local sub-contractors.

"The new project will help improve strategic ties between China and Serbia and boost the local economy."

CNEEC's vice-president Liao Shengsong said: “These are milestone agreements, opening the doors for greater cooperation between Serbia and China especially with our partners, Scarborough.

“Furthermore, CNEEC will work to promote local economic growth and development of clean energy in Serbia.

“We will provide high-quality projects so as to pursue common development under the principle of reciprocity and enhance friendship between China and Serbia.”

Scarborough Group acquired the 240MW Loznica project from the Serbian government under a privatisation scheme. It  aimed to replace existing conventional coal-fired power plant with a clean energy natural gas power plant.

Image: A rendering of the 240MW combined cycle natural gas-fuelled heat and power plant project in Serbia. Photo: courtesy of Scarborough Group.