Investor Presentaiton

Opportunities to Foreign Investment in Kosovo and distribution. Investments for the opening of the Sibove SW mine have been supported through about €145 Million in Kosovo Consolidated Budget (KCB) loans. Kosovo is part of the regional energy market established between the EU and Southeast Europe. Conclusion (KEDS) Lack of steady supply of electricity continues to be the biggest impediment to firms from all sectors of the economy. Nevertheless, the power sector has significant potential. Abundant reserves of good quality lignite are Kosovo's main natural energy resource. Efficient and relatively low-cost production of lignite from a new mine and electricity from proposed new or rehabilitated power plants owned or managed by the private sector would vastly improve the reliability of supply in Kosovo. Instead of a drain on the budget, the sector could become a contributor, and instead of a constraint on growth, the sector could become a growth engine. From the analyses, the privatization of KEDS and the building of new power plant "Kosova e Re" has its PROS and CONTRAS. Those who support the idea of privatization argue that the situation with energy supply will improve after the process of privatization. Those who are against privatization argue that Government should defend the public property, especially to protect the Sibove mine which is considered to be worth about €8 Billion. Also, after the privatization the prices may rise and this would be problem for people with lowest incomes, i.e. they cannot enjoy the basic good. Recommendation (KEDS) • . • Use effectively the potentials of power sector. Abundant reserves of good quality lignite are Kosovo's main natural energy resource. Improve the quality of the electricity supply as one of the conditions to attract foreign investors. Contractual undertakings to be well defined between government and the private owner 49 49

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