The Chinese hitchhiked millions for HPP "Dabar"
Construction work on the "Dabar" Hydroelectric Power Plant has been scaled back to minimal maintenance levels after China's Exim Bank halted disbursements last August, CAPITAL has learned.
According to our information, the root of the problem lies in the fact that Elektroprivreda RS failed to meet its obligation to complete the tunnel for the first phase of the project—"Dabar 1"—by the deadline; this completion was a direct condition for financing the remaining works.
"Work has been reduced to a minimum; a skeleton crew remains on-site solely to prevent a complete standstill or a total halt by the Chinese side. The issue is financing. Exim Bank stopped making payments back in August of last year because the 'Dabar 2' contract included a requirement for Elektroprivreda Republike Srpske to complete 'Dabar 1' by a specific deadline—a condition that was not met," our source explained.
He states that China’s "Exim" initially sought clarifications and guarantees that the work would be completed, as well as a set deadline for completion.
"Subsequently, funding was reduced to a minimum or halted entirely. Negotiations regarding this matter are currently underway," our source explains.
The "Dabar 1" project involves the construction of a 12-kilometer-long tunnel by the company "Integral Inženjering" from Laktaši.
The second phase, "Dabar 2," encompasses work at the tunnel entrance, the reservoir and lake, as well as downstream components such as the vertical intake shaft, the powerhouse and plant facilities, the discharge canal across the Dabar Field, and the tunnel connecting the Dabar and Fatnica fields.
It should be noted that the "Dabar 2" project is being built by the Chinese company "Gezhouba" (China Gezhouba Group Company Limited) alongside its subcontractors; "Integra Inženjering" is handling the civil engineering works, while "Elnos" is responsible for the mechanical works.
CAPITAL has learned that outstanding debts are owed to both "Integra Inženjering" and "Elnos," although a portion of the arrears has recently been settled.
“The work performed has not been paid for, and problems are now expected to arise due to price differentials resulting from the coronavirus pandemic. Payment arrangements for these projects are specific and tied to key milestones. Once a milestone is reached, a payment is made, and work proceeds to the next stage. These stages take 24 to 30 months to complete, after which payment is issued. We are certainly talking about multi-million-euro sums,” a CAPITAL source said.
Minister of Energy Petar Đokić also confirmed that the work has slowed down. He reiterated that “problems between the Chinese company and the subcontractors must be resolved.”
“We will hold another meeting by the end of this week to determine how to accelerate the work. Additionally, the ‘Dabar’ Hydropower Plant needs to resolve certain financial issues, which is also a contributing factor to the slowdown,” Đokić said.
Đokić did not specify the exact amount involved but confirmed that the financial obligations are substantial.
"The obligations are not small, but the project is also big. I am convinced that a solution will be found. Most of the work has been completed and part of the equipment has been delivered, while the other part is in the port of "Ploče" and requires specific transport and storage conditions," said Đokić.
By the way, more than a month ago, the Minister of Energy and Mining Petar Đokić confirmed for CAPITAL for the first time that there are problems and a standstill with the payments of funds by the Government of the RS and that the Chinese partners have stopped the works until the debts are settled.
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