China’s National Machinery and Equipment Import and Export Corporation (CMEC) will upgrade two power plants of 350MW each in Kostolac, eastern Serbia.

The overhaul will increase each plant’s capacity by 100MW to 450MW, reports AFP.

Under the contract with Electric Power Industry of Serbia (EPS), CMEC will also build a third plant in Kostolac and increase the coal mine capacity to 12 million tons per year.

Serbian Energy minister Petar Skundric said the upgrade is one of the most important steps in the development of EPS, reports AFP.

The overhaul is scheduled for completion in two and a half years, while the new power plant is expected to become operational by 2015.