U.S. COMPANY TO CONSTRUCT & EXTEND ZAGREB THERMAL POWER PLANT

( Editorial: --> 1729 ) ZAGREB, March 23 (Hina) - The head of the Croatian Power Industry (HEP) administrative board, Damir Begovic, and the president of the US corporation Parsons Power, William Hall, signed an agreement in Zagreb on Monday for the reconstruction and extension of a co- generation plant in Zagreb. The signing of the first American-Croatian agreement on the construction of a commercial project was also attended by Economy Minister Nenad Porges and United States Ambassador to Croatia, William Montgomery. They described the agreement as a very important step in the development of economic cooperation between the two states. Joint investments, Montgomery said, were the right way towards developing overall cooperation between Croatia and the United States. The value of investments in the reconstruction of the existing and construction of new sections in the gas-fired thermal power plant in Zagreb amounts to DM230 million. Out of that amount, DM179 million is in a loan secured from the US bank Exim with a very favourable annual interest rate of 3.75 per cent, with a repayment period of 15 years. The loan will be used after it is approved by the bank's committee, probably at the end of April. More than a year ago, bids were invited for this project and Parsons Power was chosen from the four best bidders. The completion of the thermal power plant is expected in the year 2000. Croatian companies will also participate in the project. Minister Porges recalled that the construction of the power plant was envisaged in a letter of intent on cooperation between Croatian and American companies, signed during a visit of US Secretary of Commerce Mickey Cantor to Croatia in June 1996. (hina) mm rm /mb 231754 MET mar 98