First IPP awarded for Croatia

Enron is to construct and operate Croatia`s first independent power project under a $175m contract signed in late March. The 240 MW plant will be located outside Zagreb and will take 15 months to construct.

Croatia`s government-owned utility, Hrvatska Elektroprivreda (HEP), has signed a contract with Houston-based Enron to build a natural gas-fired power plant that will sell electricity to HEP for a period of 20 years. Croatia is building two power plants, but this is the first one to be privately developed.

Financing for the project has not yet been secured, but could be finalized within six months. A final power purchase agreement for the project will be signed after Enron has secured a natural gas supplier.