Bosnia's $1.1 bln deal for China-backed coal-fired plant under threat: Reuters

​​A Chinese-backed deal to help Bosnian utility EPBiH expand its Tuzla coal-fired power plant is facing issues after the withdrawal of General Electric's from the project, Nermin Dzindic, industry and energy minister in the government of Bosnia's autonomous Bosniak-Croat Federation told Reuters.

"In this way, the contractor was left without the nominated subcontractor for the boiler, turbine and generator," Dzindic told the agency.

In 2014,  EPBiH picked China Gezhouba Group and Guandong Electric Power Design to build a 450 megawatt (MW) unit in Tuzla at a cost of 1.8 billion Bosnian marka ($1.1 billion). The new project is to replace three old units at the 715 MW plant.

“The documents released by Klix said the Chinese partners had informed EPBiH in January that GE was dropping out and offered alternative subcontractors, but EPBiH rejected the proposed replacement companies,” wrote Reuters.

GE said it would stop making coal-fired power plants and focus more on renewable sources of power generation.

This contract is seen to be the biggest post-war energy investment in Bosnia.