Export-Import Bank of China (EXIM Bank) has agreed 85 per cent of the financing for the development of the 3rd unit at the Kostolac B coal-fired power plant in Serbia.

State-owned power utility Elektroprivreda Srbije (EPS) announced it has commenced building the 350 MW unit.
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It will cost a total of $613m to develop and is part of the second phase of a project for the overhaul of Kostolac B at a total cost of $715.6m.

The second phase of the project is expected to be completed by 2020 and the Chinese institution’s loan will be repaid over 20 years, according to a statement.

Serbia has already completed the first phase of the overhaul project, having invested $300m in the upgrade of units 1 and 2 at Kostolac B, part of coal mining and energy complex TE-KO Kostolac, energy minister Aleksandar Antic said earlier this month.

In the second phase of the overhaul the government also aims to increase the output capacity of the Drmno open-pit coal mine to 12 million tonnes annually from 9 million tonnes.

TE-KO Kostolac operates two power plants, the 310 MW Kostolac A, and the 700 MW Kostolac B.