Public Power Corporation and CMEC move closer to 750-mln-euro power station project

A group of engineers from the Chinese construction company CMEC will visit Greece next week for a close inspection of the facilities of Public Power Corporation’s power station in Florina, the site on which the two companies have signed a memorandum of understanding to build a lignite electricity power station with a power of 450 MW, Manolis Panagiotakis, chairman and CEO of PPC told reporters on Wednesday.

He said that in the period since the signing of the agreement last September, the two companies were in close contact on strategy and technical issues.

The MoU signed envisages the construction of a lignite unit in the Florina power station with an initial budget of 750 million euros, which could be shrank by 100 million through flexibility offered by the participation of private sector investors in the project. The unit will be build by a joint company in which PPC will contribute its existing unit in Florina with a power of 330 MW, the infrastructure and the licence to build a second unit along with participations in lignite sites of the region. CMEC will offer the necessary funds, while private shareholders of the lignite sites in Vevi and Achlada will also contribute. Each side’s participation will be evaluated by an independent company.

Panagiotakis said that a business plan should be drafted for Larco – PPC’s largest debtor – allowing a private shareholder to enter the company and to fund all necessary investments. He said that PPC did not question a target set by a memorandum with the country’s creditors to reduce PPC’s market share, but noted that the company’s goal was this reduction to be made in a balanced way and added that in this framework PPC was promoting the creation and sale to private competitors of a customer portfolio based on consumption and payment.

Panagiotakis said PPC aimed to raise collection of arrears to 75-80 pct, from 70 pct currently, and noted that arrears worth 1.3 billion euros have been rescheduled, from an 1.5 billion euros target.