Kosovo: WB supports energy sector with €14 million

Prishtina, 14 December 2006 – The World Bank has allocated $14 million to UNMIK for the energy sector in Kosovo. The grant will assist the PISG in attracting qualified private investors to build new capacity for lignite thermal power generation guided by high standards of environmental and social sustainability. The project comprises funding for four main elements: advice on strengthening the policy, legal, and regulatory framework; technical studies; capacity building and a transaction advisor. The grant will also enhance the institutional development in the key ministries and agencies involved in the project including the Ministry for Energy and Mining, and the Ministry of Environment and Spatial Planning. The agreement was signed between the World Bank and UNMIK, UNMIK and KTA and KTA and KEK. $5.5 million of the money was given for a Clean-up and Land Reclamation project in the energy sector The ‘Clean-up’ part of the project includes the preparation of Mirash Mine for disposal of Kosovo A ashes. The ash stream from Kosovo A to the current dump will then be stopped and re-directed to the Mirash Mine. $8.5 million of the grant is to technically assist the transparency of the Steering Committee for selecting the company, which will construct the power plant Kosovo C and open a new open cast mine.

“I just wanted to say that we keep saying that energy sector is a good possibility for Kosovo. I am very happy that the World Bank is assisting this sector in two aspects: in legal issues on environmental protection and in technical aspects to ensure transparency,” said Kanthan Shankar, World Bank’s representative in Kosovo.

Acting DSRSG for Pillar IV, Paul Acda, said: “This substantial support of the World Bank for this project is a vital factor for delivering success. Minister of Energy and Mining, Ethem Ceku, said the Kosovo institutions would do their best for the construction of the new power plant and the opening of the +new mine in Sibovc to be as transparent as possible. Minister of Environment and Spatial Planning, Ardian Gjini, said the local institutions are determined to implement the energy project in accordance with environment protection. MEM officials promised that the construction of new power plants would be in line with EU standards on environmental protection.