The agreement reached today between the Government of Kosovo and Contour Global Company will block Kosovo for the next 40 years in lignite-based energy production. The only benefit from this project will be the smoke and dust produced, as well as the degradation of the environment and public health.
The Kosovo Civil Society Consortium for Sustainable Development (KOSID) has consistently opposed the construction of the ‘New Kosova’ power plant because this project will not secure energy supply independence and will undermine the country’s road to integration processes. Solving problems in the energy sector would only be done by addressing the problems by priorities such as technical and commercial losses, efficiency measures, diversification of energy sources and the liberalization of the functioning of the liberalized market.
This agreement is being done in the most non-transparent way possible, without any public consultation and without the assessment of environmental and social impact, which is a prerequisite by international financial institutions for such projects. Further, the signing of this agreement introduces Kosovo into contractual relations that in case of failure Kosovo will be damaged financially.
On this occasion, we would like to inform the public that with the signing of the commercial agreement, there is no end to the procedure for starting the construction of the power plant, but only deepens the problem and makes the process even more complex.
KOSID called on the Government of Kosovo to make public the signed commercial agreement for the Kosovo New Power plant. More specifically, we are asking for clear details on how: Will the price of energy produced by this power plant be? Are there arrangements for purchasing power from this power plant? How long is the return on investment and who will be billed for this burden? Will this project be sponsored by the Kosovo budget? What is Kosovo’s obligation after the deal, if this agreement fails?
We estimate that with a non-transparent and secret process, the only thing that can be guaranteed is the deepening of energy poverty, isolation and further degradation of the environment and public health, and the poverty of the family budget of Kosovo’s citizens.