Project of Technical Assistance Energy from Lignite (PTAEL) aims to assist the Government of Kosovo (CC) in building of favorable environment for investment that will attract private investors to develop lignite Mining and building of new capacity for production of thermal energy from lignite on the basis of social and environmental sustainability.
The purpose of PTAEL it will be achieved through: (a) development and strengthening of favorable policy, legal and regulatory frameworks in the energy sector, including mitigating the environmental impacts and develop a framework for the expropriation and displacement ; (b) development of structure and institutional capacity for implementing the widen strategy of sector , including mobilization of finance and relations with IFN-in the energy sector, and (c) technical consultation to seek strategic investors for independent power plant and the proposed mine.
There are four project components:
Component 1: Advices on sectional policies, legal advice, regulatory and protective measures
o Subcomponent 1 - Councils of sectional policies, legal and regulatory advice
o Subcomponent 2 - Framework of safety measures
Component 2: Technical Studies
o Subcomponent 1 - Review of investment options
o Subcomponent 2 - Development of new plant and analysis of options
o Subcomponent 3 - Renewable energy options
Component 3: Capacity Building
Component 4: Transaction Advisor
Component 1 consists of two subcomponent that focus on sectional policies, as well as legal advice, regulatory and safety measures. Specifically, it supports the legislation, including changes necessary to enable the proposed transaction through the financial closure by preparing legal documents and contracting, legal opinions, etc.., and prepares a Strategic Environmental Assessment and Social specific for energy sector development; develops terms of reference for Environmental Impact Assessment, Social Assessment and Action Plan for relocation; prepare basic equipments to monitor and collect environmental data from the field, highlights the needs for institutional strengthening and building capacity for assessing, monitoring and regulation of environmental impacts of Mining and energy production, as well as providing training for staff of relevant ministries.
Component 2 supports the Analysis of the Mines and plants, and specifically, the review of investment options, as well as analysis of new power plant development and technical analysis. This fulfils previous studies on mining and power plants and collect adequate information and analysis for bidders; also develops a base knowledge for decision makers in Kosovo so that economically and effectively to be required evaluation and negotiations of proposals for private development of lignite resources of Sibovc. Subcomponent 3 provides technical assistance to help the Ministry of Energy and Mines (MEM) to develop policies and strategies for promoting of renewable energy, coproduction and Kosovo energy efficiency.
Component 3 funds building of capacity for ministries and key agencies including MEM and the Ministry of Environment and Spatial Planning (MESP), inter-ministerial coordination and Project Office, Implementing subject of Project, as well as assisting in MEM and MESP and QK in the development of communication and creating strategy for improving public relations and public consultation.
Component 4 provides technical assistance to support the QK-in the execution of the transaction process until the financial closure of selected investment package.
Project management structure consists of the following management bodies:
1. Inter-ministerial Project Steering Committee (PSC)
2. Project Office (PO) established by MEM
Project Steering Committee
The inter-ministerial Project Steering Committee (PSC) has been established for intervention at the level of policies, based on Executive Decision no. / 6 of the Special Representative of the Secretary General (SRSG) on 17 March to strengthen management and supervision, as well as to ensure effective implementation of the Project's PTAEL.
PSC- functions throughout the duration of the implementation of the Project with the same resources and duties and specific responsibilities.
The managing body of the Project is Project Steering Committee whose overall responsibility is coordination and supervision of PTAEL activity.
Representation in the PSC is supposed to ensure participation from all ministries and key agencies that have responsibility for one or more aspects of project implementation.
Project Steering Committee (PSC) chaired by the Minister of Energy and Mines (MEM).
Project Steering Committee consists of the following members:
Office of the Prime Minister (OPM)
Ministry of Energy Environment (MEM)
Ministry of Environment and Spatial Planning (MESP)
Ministry of Economy and Finance (MEF)
Ministry of Labor and Social Welfare (MLSW)
Energy Regulatory Office (ERO)
Independent Commission for Mines and Minerals (ICMM)
Kosovo Privatization Agency (AKP) that replaces the Kosovo Trust Agency (KTA)
Office of the SRSG (no longer a member - does not exist)
Head of Pillar IV of UNMIK (no longer a member - does not exist)
PSC meetings include observers from donors community and institutions active in Kosovo:
World Bank (WB)
U.S. Agency for International Development (USAID)
European Commission Liaison Office in Kosovo (ZNKE)
International Civilian Office (ICO)
Kreditanstalt für Wiederaufbau (KfW)
International Monetary Fund (IMF)
Ministry of Trade and Industry (MTI)
Experts and other observers on the basis of need
According to Financial Agreement MEM has established a Project Office (PO) responsible for managing of overall implementation of Project. PO is under PSC subordination.
Main duties and responsibilities of PO are as follows:
General Project Management
Collecting data and analyzing project information
Monitoring, evaluation and reporting
Administrative activities, reporting and financial
Activities of human resource development
PO has already employed Project Manager, Manager of Energy Component; Legal Manager, Environmental and Social Manager, Administrative and Financial Manager and a Procurement Specialist.
On Power Plant New Kosovo
Basic PPNK goals are:
i. Providing of electricity supply for Kosovo in acceptable conditions;
ii. Optimal development and realization of value for Kosovo for its lignite resources.
Other goals of high importance of PPNK are:
i. The development of competitive energy market in Kosovo and support the development of competitive energy market at regional level;
ii. Improvement and protection of environmental and safety aspects of the lignite mining and electricity production in Kosovo;
iii. Further development of perspective and conditions for employment in the Mining and energy industry in Kosovo;
iv. Demonstrating effect of successful securing at large of foreign capital and expertise in Kosovo;
v. Transfer of benefits to local communities where is placed lignite and plant activity.
Project for a New Kosovo plant has two key components:
1. Development of the lignite mine of Sibovc
2. Building of Power plant New Kosovo.