The Lignite Power Technical Assistance Project (LPTAP) aims to help the Government of Kosovo (Gok) build an enabling investment environment that will attract private investors to develop lignite mines and build new capacity for lignite thermal power generation on a socially and environmentally sustainable basis.
The LPTAP objective will be attained through: (a) developing and strengthening the enabling policy, legal and regulatory frameworks in the energy sector, including mitigating environmental impacts and developing a framework for expropriation and resettlement; (b) developing an institutional structure and capacity to implement the broader sector strategy, including mobilizing financing and dealing with FDI in the energy sector; and (c) technical consultancies to seek qualified strategic investors in the proposed independent power plant (IPP) and mine.
There are four project components:
• Component 1: Sector Policy, Legal, Regulatory and Safeguards Advice
o Subcomponent 1- Sector Policy, Legal and Regulatory Advice
o Subcomponent 2- Safeguards Framework
• Component 2: Technical Studies
o Subcomponent 1- Investment Options Review
o Subcomponent 2- New Power Plant Development and Technical Analysis
o Subcomponent 3- Renewable Energy Options
• Component 3: Capacity Building
• Component 4: Transaction Advisor
Component 1 consists of two subcomponents that focus on sector policy, and legal, regulatory and safeguards advice. Specifically, it supports legislation, including any required amendments, to facilitate the proposed transaction through to financial closing by preparing legal and contract documents, legal opinions, etc., and prepares a Strategic Environmental and Social Assessment specific to energy sector development; develop terms of reference for an Environmental Impact Assessment, Social Assessment and the Resettlement Action Plan; prepares an environmental baseline monitoring toolkit and collect field data; outlines the needs for institutional strengthening and capacity building to assess, monitors and regulates the environmental impacts of mining and power generation; and provides training to staff in relevant ministries.
Component 2 supports Mine and Power Plant Analyses, specifically, an investment options review; and second, a new power plant development and technical analysis. This will complement previous studies on mine and power plants and compile adequate information and analysis for bidders; it will also develop a knowledge base for decision makers in Kosovo to economically and efficiently solicit, evaluate, and negotiate proposals for private development of the Sibovc lignite resource. Subcomponent 3 provides technical assistance to help the Ministry of Energy and Mining (MEM) develop policies and strategies to promote renewable energy, cogeneration and energy efficiency in Kosovo.
Component 3 finances capacity building for key ministries and agencies including MEM and Ministry of Environment and Spatial Planning (MESP), for inter-ministerial coordination and for the Project Office, the implementing entity for the Project, and would also assist MEM, MESP and GoK to develop a communications and outreach strategy to improve public consultations.
Component 4 provides technical assistance to support the GoK in carrying out the transaction process to the financial close of the selected investment package.
The Project management structure is comprised of the following managing bodies:
1. The Inter-ministerial Project Steering Committee (PSC)
2. The Project Office (PO) set up under the MEM subordination.
Project Steering Committee
For policy level intervention, an inter-ministerial body Project Steering Committee (PSC) is established based on the Executive Decision no.2006/6 issued by the Special Representative of the Secretary-General (SRSG) at March 17th 2006 in order to support management and supervision and ensure effective implementation of the LPTAP project.
The PSC is set and functions during the entire duration of the Project implementation with the same resources and assigned tasks and responsibilities.
The managing body of the Project is the Project Steering Committee whose overall responsibility is to coordinate and supervise all LPTAP project operations.
The representation in the PSC is designed to ensure participation from all key ministries and agencies that have responsibility for one or more of the aspects of the Project implementation.
The Project Steering Committee (PSC) is chaired by the Minister of Energy and Mining (MEM).
The Project Steering Committee is comprised of the following members:
The PSC meetings also include observers from donor community and active institutions in Kosovo:
According to the Financing Agreement the MEM has established a Project Office (PO) that is responsible for managing and coordinating the overall project implementation. The PO is responsible to the PSC.
Key tasks and responsibilities of PO are as follows:
The PO is staffed with a Project Manager, Power Task Manager; Legal Task Manager, Environmental and Social Task Manager, Administrative and Financial Task Manager and Procurement Specialist.
About Kosovo New Power Plant
Fundamental objectives of KNPP are:
i. Security of supply of electricity for Kosovo on acceptable terms;
ii. Optimal development and value realisation for Kosovo of its lignite resources.
Highly important objectives of KNPP are:
i. Development of a competitive energy market in Kosovo and support to the development of a competitive energy market in the broader region;
ii. Improvement and protection of the environmental and safety aspects of lignite mining and electricity generation in Kosovo;
iii. Further development of prospects and conditions for employment in the mining and power industries in Kosovo;
iv. Demonstration effect of successfully securing large-scale foreign capital and expertise into Kosovo;
v. Transfer of benefit to the local communities in which the lignite and power plant operations reside.
Kosovo New Power Plant project has two key components:
1. Development of Sibovc lignite mine
2. Construction of New Kosovo Power Plant