Prishtina, 13 November 2013 – The Project Steering Committee (PSC) of the Kosova e Re Power Plant Project, chaired by the Minister of Economic Development, Fadil Ismajli, convened today in a meeting to discuss certain aspects of the project and steps that are to be undertaken. Present in the meeting were also representatives of the World Bank, European Bank for Reconstruction and Development, USAID, European Commission, KEK, KOSTT and the Government Working Group on Energy Projects.

KRPP PSC was informed by the Transaction Advisor on the current state of the Project, status of prequalified bidders, other developments regarding the Project and presentation of steps to be undertaken in relation to its implementation.

The Transaction Advisor proposed options for continuing the Project with the prequalified bidders, while ensuring a transparent and competitive process. Moreover, PFC was informed on other matters related to the project, such as environmental and social considerations, mine development plans, contractual parties in project agreements, the applicable fiscal framework for the project, and reviewed various options regarding further implementation of the Project.

In this aspect, PFC addressed the principles of Project’s restructuring, with the aim of ensuring that the project is compliant with energy market developments, that the prices of the thermal power plant are affordable for Kosovo citizens, and that the selection of investors is made in a competitive manner. The main issues addressed in the meeting include the following:
•    The thermal power plant will be developed in compliance with the Industrial Emissions Directive, and best available technologies, as stipulated in the standards applicable in the European Union.
•    The Bidding Package will include only the development of the thermal power plant with two 300MW units. The mining company will continue to remain a publicly-owned.
•    The Bidding process will be conducted in two phases; initially the investor will be selected, followed by the selection of the facility’s developer.
•    Alleviation of certain fiscal obligations related to import and construction, bearing in mind that such alleviation will directly affect the provision of cheaper prices.

PSC communicated the said principles to prequalified investors, and it expects to receive additional feedback and comments to them in the following weeks.

With due consideration of such comments, PFC is expected to make its recommendation for the Government, while remaining determined to conduct a transparent process that will ensure competitive bidding.