Bosnian power utility Elektroprivreda BiH (EPBiH) has selected Skoda Power and Austrian Energy to modernise a 110MW block at its Kakanj power plant in Bosnia.

The contract, valued at $56m, includes the supply and installation of equipment for overhauling the turbine, generator and boiler.

The $72m modernisation programme, scheduled to start in 2011, will extend the life span of the unit by 15 years.

The 450MW Kakanj plant, with an average annual output of 2,300GW/h, is the second largest coal-fired plant in Bosnia, built in the former communist regime.

The modernisation scheme aims at upgrading the facilities to meet European Union environmental standards.

EPBiH has drawn up a $1.15bn investment plan to overhaul existing facilities and build new hydropower plants and renewable energy resources over the next three years.