General Information

The Government of Kosovo has identified the need for additional generation capacities to address long-term concerns about the country's power supply security. Government policy goals, also presented in all Kosovo Energy Strategies, apart from the plans for new generation electricity capacities, also aim at involving the private sector in the "Kosova e Re" Power Plant (KRPP) infrastructure project. It includes development, design, construction, financing, ownership, maintenance and operation in accordance with IED Best Available Techniques (BAT).

The "Kosova e Re" Power Plant will provide the country with reliable power supply, the bedrock of future investments that will foster economic development in Kosovo. The construction of the plant will create opportunities for new jobs, as well as long-term employment upon the start of plant operations.

The mission of the new unit is to replace the old generation units of the "Kosovo A" TPP and increase the security of supply, by creating a sustainable source of basic energy. Reliance on domestic resources, such as lignite and renewable energy sources (RES), avoids dependence on imports and price unpredictability on the regional market.

The KRPP will be a key asset in strategic terms, as it will cover almost half the power demand in the country, and will be the long-term source of thermal energy for municipal heating in the surrounding municipalities.

In 2015, the Government of Kosovo awarded ContourGlobal (CG) the status of the preferred provider for the development of the KRPP. The Government of Kosovo and ContourGlobal signed the Commercial Agreements for the construction of the "Kosova e Re" Power Plant in December 2017. CG is a US-based company specializing in securing and developing long-term energy production for different types of electricity generation and geographic locations.

The KRPP will be built in line with the EU Directive on Environmental Standards for Industrial Emissions and 2017 BATs, with a minimum of 40% efficiency with super-critical technology. The KRPP will be built with full financing from private investments. However, according to the signed Agreements, this power plant will be transferred to the Government of Kosovo after 20 years, at no cost.

The KRPP will simultaneously address the solution of a range of energy sector issues, but also wider issues for the country, such as the security of power supply, the direct impact on sustainability and economic development, as well as the significant improvement of social and environmental aspects.

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THE PROJECT STEERING COMMITEE

The Project Steering Committee (PSC) was originally established by Executive Decision no. 2006/6 issued by the Special Representative of the Secretary General (SRSG) on 17 March 2006 and subsequently updated by the decision of the Government of the Republic of Kosovo, no. 08/17 dated 1 June 2011, with the purpose of taking decisions and developing Transaction terms for the effective implementation of the project "Kosova e Re".

The PSC was established and operates in compliance with duties and responsibilities under the Terms of Reference.

The PSC is the managing authority, the overall responsibilities of which include: coordination and supervision of all operations of the project "Kosova e Re".

The representation in the PSC is defined in such a way as to ensure participation of all ministries and key independent agencies that have responsibility for one or more aspects of the project implementation.

The Project Steering Committee (PSC) chaired by the Minister of Economic Development (MED).

The Project Steering Committee consists of the following members:

- Minister of Economic Development (chair);
- Minister of Finance (member);
- Minister of Environment and Spatial Planning (member);
- Minister of Labour and Social Welfare (member);
- Minister of Trade and Industry (member);
- Chairman of the Energy Regulatory Office (member);
- Chairman of the Independent Commission for Mines and Minerals (member); and
- A representative appointed by the Prime Minister's Office (member).


The PSC meetings are attended by the following observers from the donor community and active institutions in Kosovo:

- The World Bank (WB);
- European Bank for Reconstruction and Development (EBRD)
- The United States Agency for International Development (USAID);
- US Embassy
- European Commission Office in Kosovo (CEO);
- Kreditanstalt für Wiederaufbau (KfW);
- Transmission System and Market Operator JSC (KOSTT);
- Kosovo Energy Corporation JSC (KEK);
- Experts and other observers as appropriate.


The make-up of the current PSC:

-Ministry of Economic Development
Valdrin Lluka, Minister of Economic Development
PSC Chairman

-Ministry of Finance
Bedri Hamza, Minister of Finance
PSC member

-Ministry of Environment and Spatial Planning
Albena Reshitaj, Minister of Environment and Spatial Planning
PSC member

-Ministry of Labour and Social Welfare
Skender Reçica, Minister of Labour and Social Welfare
PSC member

-Ministry of Trade and Industry
Bajram Hasani, Minister of Trade and Industry
PSC member

-Energy Regulatory Office,

-The Independent Commission for Mines and Minerals

-Representative appointed by the Prime Minister's Office

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PROJECT IMPLEMENTATION UNIT "KOSOVA E RE"

Project Implementation Unit (PIU) of the "Kosova e Re" power plant (KRPP), was at first established in the quality of Project Office for assistance to the Ministry of Energy and Mines to attract foreign private energy and mining sector with the executive order of SRSG (No.2006 / 6) dated 17 March 2006, subsequently updated by the decision of the Government of the Republic of Kosovo (No.08 / 17) dated 01.06.2011 (attached to this letter within the Ministry of Economic Development (MED), consists of qualified experts with the purpose of selecting private investors for financing, construction, operation, and maintenance of the Kosova e Re power plant.

The PIU - KRPP serves as a technical secretariat within the Project Steering Committee. The PIU is also responsible for the technical and administrative management of the process, and has the role of providing advice to the project as a whole.

The Project Implementation Unit "Kosova e Re" aims to help the Government of Kosovo (GoK) in building a favorable environment for investment that will attract private investors to build new capacities for the production of thermal energy from lignite on a socially and environmentally sustainable basis.

The aim of the PIU KRPP will be achieved through: (a) development and strengthening of the enabling policy, legal and regulatory frameworks in the energy sector, including mitigation of environmental impacts; (b) development of a framework and institutional capacity for implementing the broader sector strategy, including mobilizing funding and dealing with FDI in the energy sector; and (c) technical consultation to seek strategic investors for the plant.


DESCRIPTION OF DUTIES

Key Duties and Responsibilities of the PIU KRPP are:

• Daily management of the project Kosova e Re Power Plant and the preparation of annual work plans and detailed work plans,
• Supervision and monitoring of the work of the Transaction Advisors and other consultants who may be engaged in the project,
• Analysis, interpretation, and discussion of all reports, recommendations and documents produced by the Transaction Advisors or other consultants, in order to ensure that they are in compliance with the decisions and the objectives of the PSC.
• Data collection and analysis of information in order to implement the project,
• Monitoring, evaluation and reporting on the implementation of the Project.
• Coordination of project activities with international and local stakeholders
• Providing advice to the Project Steering Committee and preparation of documents and decisions
• Preparation of technical meetings of the PSC and record-keeping
• Arranging public consultations and public information,
• Organizing visits to energy facilities and other institutions to the needs of transaction advisors and investors;
• Providing and processing input for studies and needs of the Project, and;
• Serve as the focal point within the MED, in regards to the implementation of the project.


ABOUT THE "KOSOVA E RE" POWER PLANT

The basic purpose of KRPP is:

i. Security of electricity supply to Kosovo for a long-term period and on acceptable terms;

Other goals of high importance for the KRPP are:
i.    Development of a competitive energy market in Kosovo and support towards the development of a competitive energy market at a regional level;
ii.   Improvement and protection of environmental aspects of electricity production in Kosovo;
iii.  Further development of prospects and conditions of employment in the energy industry in Kosovo;
iv.  Demonstration of securing high levels of foreign capital and expertise in Kosovo;
v.  Transfer of benefits to local communities, where the plant operates.