CORRECTED - Bosnia, CEZ to sign 1.4 bln euro power JV in May

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BANJA LUKA, Bosnia, April 13 (Reuters) - The government of Bosnia's Serb Republic on Friday said it would sign a 1.4 billion euro ($1.9 billion) power-project joint venture with Czech power firm CEZ on May 16.

The deal includes the construction of coal-fired power plant of up to 700 megawatts, development of a mine and reconstruction of an existing power plant in the southeastern town of Gacko, said a spokeswoman for Prime Minister Milorad Dodik.

"According to estimates, the project, the largest-ever investment into the Serb Republic, would amount to 1.4 billion euros and the feasibility study will be prepared by Deloitte & Touche ," Biljana Bokic told Reuters.

CEZ, the largest central European power company, has been on an investment trail, but due to lack of acquisition opportunities in central and eastern Europe it seeks to expand via greenfield projects.

Under the deal, CEZ will hold 51 percent of the joint venture, called Nove Elektrane RS, while the reminder will be owned by regional power company Elektroprivreda RS.

Bokic said the first phase of the project would complete in three years.