The country’s largest project, TPP Kosova e Re, with investments exceeding 1 billion and thousands of jobs gets under way

Prishtina, 20 Nov 2015 – Minister of Economic Development Blerand Stavileci informed that the TPP Kosova e Re Project Steering Committee decided to announce American company Contour Global as the preferred bidder for the development of new electricity generation capacities (500MW), with an investment in excess of 1 billion euro, thus finalizing the project initiated over a decade ago.

In a press conference organized for the occasion, Minister Stavileci said that upon successful conclusion of negotiations, the IRR diminished to 21.5% (from 30% of the project value), from 23-27% which was the initial request of the bidder, adding that the main components on which negotiations were focused were security of supply and affordability of electricity tariffs.

“The second issue we agreed on was to set the generation capacity at 500MW, and to add a number of other considerable advancements in order to ensure 0% budget impact, therefore we believe that upon final conclusion this project will bring the country about 1 billion euro in investments, of which 30% will derive from private investors, comprising the largest investment in our country,” said Stavileci.

The head of MED explained that the generation unit will have a 40% efficiency rate, which is by 3% higher than the initial plan and addresses in the best possible way all environmental problems, emphasizing the achievement of all objectives to have a project within acceptable standards, which will bring air to our country’s economy.

According to Stavileci, the negotiation of other agreements will continue until the conclusion of commercial agreements, which will take between 4 and 6 months, and will be followed by the bidding package preparation phase leading to the construction of the thermal power plant, which according to the plan should commence in end-2016 or beginning of 2017.

He further emphasized that said capacities will resolve the energy problem to a great extent, whereas their commissioning is envisaged in end-2021 or beginning of 2022, stressing that this date is also connected with the decommissioning of TPP Kosova A.

Minister Stavileci emphasized that the investment is expected to open thousands of new jobs and will sends a very good message to other investors and partner organizations, such as the World Bank and other international financial institutions, which have impatiently waited for this phase of this vital project for the country to be successfully concluded.

KOSOVO IN UNESCO