World Bank Still Mulling Support for Kosovo Power Plant

A year after Kosovo government announced it had reached an agreement with the World Bank and the US company Contour Global to build a new power plant, the bank is still far from committing itself to the project.

"The World Bank will make a decision whether to support the Kosovo Power Project only when all relevant environmental, social, and technical analyses have been conducted, consultations have been held with the public, and the Bank's Board and its shareholders have given the project their due consideration," the bank told BIRN.

The bank further wrote that it is committed to helping Kosovo resolve its energy shortages through a comprehensive strategy that includes increased energy efficiency, development of renewable energy, Kosovo's integration into regional power markets, and supporting new power generation that is both reliable and affordable for citizens.

The government announced in November 2015 that it had reached an agreement with the US-based company Contour Global to build the Kosova e Re [New Kosovo] power plant.

It earlier said that Contour Global had proposed to invest a third of the cash needed for the project, estimated at 1.4 billion euros, while the rest would come from international financial institutions and other lenders.

The role of the World Bank in the agreement was related to a loan, but it remains unclear how much the bank was expected to invest.

Blerand Stavileci, Kosovo's Minister for Economic Development, told BIRN that Kosovo had secured the bank's support and that the final agreements would be signed within a month, while construction work would start next year.

"With their excellent cooperation, we have managed to obtain a positive answer in terms of support [from the bank] for this...