German-Chinese consortium interested in construction of heating pipeline from TPP Kakanj to Sarajevo

The construction of heating pipeline from thermal power plant Kakanj would secure long-term reliable heating for Sarajevo and areas along its route from a domestic power source, it was said at a meeting organized by the Chamber of Economy of the Federation of Bosnia-Herzegovina (PKFBiH). The project, whose goal is to help solve the problem of pollution in the Bosnia-Herzegovina capital, attracted the attention of a German-Chinese consortium which presented its proposal for the pipeline.

The PKFBiH invited representatives of the Federation and Sarajevo and Zenica-Doboj cantonal governments, BiH electric power and Sarajevo heating companies, as well as the Environmental Protection fund and FBiH roads company to the working meeting on the project which it hosted.

German-Chinese consortium spokespersons made a presentation of their plans for the project and proposed two models to finance it. The consortium was formed by the German Engineering Dobersek GmbH and China CAMC Engineering Co.ltd. which is part of the SINOMACH group.

The experts at the meeting agreed that local power sources should be used which includes providing heating for the central parts of Sarajevo from the thermal power plant in Kakanj which is in the Zenica-Doboj canton. They said natural gas should not be used except as a secondary fuel because it does not come from domestic sources.

The meeting concluded that the project creates the framework needed to develop high-efficiency cogeneration a the Kakanj plant through savings of primary energy.

The project, which will be financed with 80 percent of funds from loans and 20 percent from own funds, will pay for itself through savings within a period of nine years, the PKFBIH said in a statement without specifying who would share the cost of contstruction or which financial institution would provide the loans.

The project will go ahead once the cantonal governments sign the required protocols with the state-owned power company, Elektroprivreda BiH.

The meeting participants added that it will help speed up economic development through lower heating prices and the opening of new jobs. The project will also help BiH meet the standards in European Union energy efficiency directives.

City of Belgrade has been working on a similar project to build a heating pipeline from TPP Nikola Tesla to service Serbian capital in the winter.  In June, the memorandum to build the pipeline to New Belgrade was signed with the Power Construction Corporation of China.