Greece: Construction of Ptolemaida 5 power station set to begin, Investors
Conditions included in a letter of guarantee that needs to be provided by the consortium commissioned to construct main power utility PPC’s new lignite-fired power station, Ptolemaida 5, in northern Greece, have been agreed on and the document will be submitted today, according to energypress sources.
This boils down to meaning that work on the project, considered pivotal for PPC’s future plans, will commence in the immediate future, as long as the power utility provides a deposit demanded by the consortium.
Based on an agreement signed by the two sides, PPC will need to provide an advance payent of 200 million euros before any work begins and an additional 200 million euros in six months. This agreement is part of a wider deal ensuring favourable financing terms for PPC.
The project’s budget is valued at 1.4 billion euros. PPC and Terna, the consortium taking on the project, had signed an agreement in March, 2013. The new power station will have a 660-MW capacity for electricity production as well as a 140-MW capacity for thermal energy in Ptolemaida.