A delegation of the Chinese Exim Bank visited Thermal Power Plants and Mines Kostolac, eastern Serbia, on Thursday and conferred with the company's leadership over the details regarding the first stage of the project aimed at modernisation of the Kostolac plant, the Kostolac plant released on Thursday.

Following the talks with representatives of the Chinese bank, which is funding the modernisation project, Director of Kostolac thermal power plant Dragan Jovanovic stated that the arrangement is very important for entire Serbia, the Electric

Power Industry of Serbia and the Kostolac plant itself, because it would contribute to technological development and enhancement of the plant's potentials.

Serbia and China nurture a tradition of friendly relations, Jovanovic recalled and expressed belief that both sides would like to see the project realised successfully. The arrangement should be implemented on the basis of the international agreement on cooperation between Serbia and China in the area of infrastructure, he recalled.

The value of the first stage of the arrangement totals USD 344 million and it will cover the revitalisation of blocks B1 and B2, as the latest system for flue-gas desulphurization and construction of infrastructure facilities.

Representatives of Serbia and China should sign the contract on the loan late in August, while the realisation of the first stage of the project should start by the end of the year.

The total value of the Kostolac project adds up to USD 1.3 billion, and the second stage of the arrangement should cover the construction of a new 350 megawatt thermal power block and increasing the capacity of the Drmno pit from 9 to 12 tons of coal per year.