Economy minister visits power plants in south Croatia

OMIS/DUGOPOLJE, Oct 15 (Hina) - First Deputy Prime Minister and Minister of the Economy Radimir Cacic on Monday visited the Zakucac hydro-electric power plant near the southern Croatian town of Omis. The government plans to invest about 1 bln kuna to reconstruct the plant. Cacic also today visited a windmill plant on the Pometeno Brdo Hill in Dugopolje in the vicinity of Split in which the Koncar company is investing 200 mln kuna.

The Zakucac plant is the largest power plant in Croatia with 486 megawatts (MW) power. The reconstruction will increase its power by 52 MW.

The equipment at the plant is outdated and cannot be used hence reconstruction is a must. We have come up with a financing plan which will require about 1 bln kuna for the reconstruction, Cacic said after touring the plant.

The deadline to reconstruct four production units is 2015. The first unit should be completed by the year's end.

The Croatian electricity company (HEP) said that of the total investment value of the reconstruction of around 1 bln kuna, 129.4 mln is planned for 2012.

Cacic pointed out that 21 companies would be engaged in the reconstruction project with 85 percent being domestic companies. "This is an example of a feasible way to engage Croatia's economy", he said.

In addition to the reconstruction of the Zakucac plant, Cacic referred to the simultaneous reconstruction of the hydro-electric power plant "HE Dubrovnik 1" and that preparations were underway for the reconstruction of the Senj hydroelectric power plant too.

He announced that HEP would be releasing debentures in the next few days which will serve as the basis for new investments into production capacities.

The HEP Board chairman Zlatko Koracevic pointed out that Croatia currently depended on electricity imports. "We do not have sufficient production capacities, while at the same time we dispose of 50 percent of hydropower potential which is not in use", he said.

Before visiting Zakucac, Cacic visited the Koncar windmill plant on Pometeno Brdo near Dugopolja, in the hinterland above Split which is expected to be completed by the end of the year. The total power capacity of this plant will be 17.5 MW (15 windmills with 1 MW power each and 2 with power of 2.5 MW).

"A project is underway on this site for a solar power plant that will have a capacity of 20 MW. The project will be feasible for the Koncar company particularly if it is backed by the guarantee fund we are currently setting up as part of the Environment Protection Fund", Cacic said, adding that the project could be completed within 18 months.

The Koncar windmill plant is a Croatian project resulting from the high-tech know-how in the company with over 80 percent domestic involvement, the Board's President Darinko Bago said. (Hina)