OCCRP Partner CINS (Center for Investigative Reporting Serbia) has released a two-part series of articles showing how a Chinese financed and built coal plant is endangering both the country’s environment and its fiscal health.
The Kostolac B power plant, near the border with Romania, was expanded without consulting Bucharest. The loan to add to the lignite burning plant was signed in 2015, despite a government commitment to develop sustainable energy.
The expansion of the plant via US $608.2 million loan from the Export-Import Bank of China also raises the possibility of serious financial consequences for Serbia in the future. Among other commitments, the agreement obligates Serbia to put down its own national budget as collateral and to comply with Chinese laws in the event of a dispute.
“This agreement opens the door for China to make moves that don’t benefit Serbia”, CINS journalist Milica Saric said.
Source; OCCRP
