Demostat: Japanese Organizations to Replace Chinese Companies on Project of Construction of RHPP Bistrica

According to the initial plan, the Reversible Hydro Power Plant (RHPP) Bistrica was supposed to be built by Chinese companies, but the war in Ukraine, the often “unimpressive results of Chinese companies, the lack of transparency, the low environmental standards, as well as being late with the works and with paying the subcontractors,” have forced the Serbian authorities to change the decision and to select Japanese organizations as more reliable partners, writes Demostat.

The Japan International Cooperation Agency (JICA) should be in charge of the planning, whereas the Japan Bank for International Cooperation (JBIC) would secure the financing. The Chinese companies PowerChina and Avic (AVIC-ENG-China International Engineering Corp) were interested in Bistrica, as well as the HPP Djerdap, and according to Demostat, they practically got promises from the Serbian authorities. However, this has been abandoned.

Last month, the minister of mining and energy of Serbia, Dubravka Djedovic, met with a delegation of the JICA, whose representatives expressed an interest in taking part in the RHPP Bistrica project.

The JICA is a development organization which provides support to countries all over the world in projects which contribute to progress in local areas and fields which cover everything from urban development, energy and transport, to agriculture, food, education and environmental protection.

In Serbia, the JICA is already implementing several big projects, including the modernization of public transport in Belgrade, the desulfuring facility at the TPP Nikola Tesla and the development of the capacities for solid waste management.

– In that arrangement, the majority of the financing should be secured by the JBIC, which, among other things, lends money for projects worldwide which contribute to environmental protection and a reduction of harmful gas emissions – Demostat writes.

In the past five years, Serbia has practically promised Chinese companies that they will work on two projects important for the Serbian energy system, the RHPP Bistrica and Djerdap 3, so the Chinese were convinced that those projects would belong to them.

– However, due to the war in Ukraine, but also practical doubts about the reliability of Chinese companies, the projects of the construction of highways often being late and a worsening reputation, following a range of news about the poor treatment of the workers in companies such as Linglong and Zijin and their subcontractors, also Chinese companies, or the weak filtering of exhaust particles in their mining facilities, the Serbian authorities have decided that everyone will sleep more easily if a less “controversial” partner is chosen for this project – Demostat says.

Vlada Republike Srbije

Ministarstvo rudarstva i energetike Republike Srbije

Japan International Cooperation Agency - JICA Tokyo

Power Construction Corporation of China Limited Ogranak Beograd

Linglong International Europe d.o.o. Zrenjanin

Elektroprivreda Srbije ad Beograd

Government of Serbia

Ministry of Mining and Energy

Japan International Cooperation Agency

JICA

Japan Bank for International Cooperation

JBIC

Power China

Avic

AVIC ENG China International Engineering Corp

Linglong

EPS

Elektroprivreda Srbije

RHPP Bistrica

construction of RHPP Bistrica

HPP Đerdap

Dubravka Đedović

Aleksandar Vučić

desulfuring at TPP Nikola Tesla

TPP Nikola Tesla