Investor Presentaiton
Opportunities to Foreign Investment in Kosovo
Government of Kosovo and the winning company. Currently 4 international consortiums
have expressed their interest. The winner of the project will also have the rights for coal
exploitation in Kosovo.
Problem identification (KEDS)
The main issues surrounding the privatization of KEDS are the following:
•
Ensure security of supply of electricity
. Eliminate unsustainable Government subsidies
•
•
Enhance performance and delivery of electricity throughout the country
KEK is a major fiscal burden
Analysis of the relevant facts (KEDS)
The existing power plants (Kosovo A and B) are aged, in poor condition and subject to
risk of major failure. Both plants burn lignite, the only fuel source available in Kosovo.
The Kosovo A power plant was built in the 1960s and is the largest point source of air
pollution in Europe. It is scheduled to close in 2017. The Kosovo B plant was built in the
1980s and is not functioning to its design capacity due to poor maintenance. Planned
rehabilitation and emission control upgrades will allow it to operate at least through 2024.
However these upgrades reduce generation capacity as units are taken out of service and
repaired. Both plants are located within a couple of miles of Pristina and air quality,
particularly in winter, is extremely poor and unhealthy.
Because of the continuing poor collection performance of KEK Distribution, the
Government has begun the process of separating and privatizing the distribution assets of
KEK through a separate transaction.
In 2008, the Government of Kosovo approved the unbundling of the country's electricity
distribution and supply network to form a new company for privatization through an open
and competitive international tender. Kosovo has made much progress in creating a legal
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