Alstom is threatening to pull out of a controversial $1.6bn coal power project in Slovenia if the state does not give financing guarantees.

According to television reports the French utility is ready to depart if the Slovenian parliament does not back its financing by June 16.

The European Bank for Reconstruction and Development in 2010 approved a 200-million-euro loan for the modernisation of the 600 MW Termoelektrana Sostanj coal plant, which accounts for a third of Slovenia’s electric output.

The European Investment Bank (EIB) has also agreed to give a loan of 550 million euros backed by Slovenian state guarantees, which have not yet been approved by parliament.

Last month a parliamentary commission removed from May’s parliament agenda the debate on a bill giving the guarantees saying there were uncertainties over the final price.

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