TPP Kosova e Re Newsletter No.1 (ENG)

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No. 1 October, 2018

N E W S L E T T E R www.mzhe-ks.net Dear Sir / Madam, This is the first edition of the newsletter on “Kosova e Re” Power Plant (PP). We aim to keep all relevant decision-makers and the wider public well informed on all substantial terms of the “Kosova e Re” PP Project. Valdrin Lluka Minister of Economic Development

Content: General information on the “Kosova e Re” PP Project

Selection process for “Kosova e Re” PP construction and longterm maintenance contractors

Workshop with stakeholders for the “Kosova e Re” PP

I. GENERAL INFORMATION ON THE “KOSOVA E RE” PP PROJECT

Construction of new energy generation capacities, such as the “Kosova e Re” Power Plant (PP), stemming from the Energy Strategy of Kosovo, is a necessary prerequisite for the sustainable economic development of the country. “Kosova e Re” PP is developed in compliance with the highest technical international standards for industrial emissions (IED/BAT). On 20 December 2017, the Government of the Republic of Kosovo has signed Commercial Agreements with the investor ContourGlobal for the commencement of the construction of “Kosova e Re” PP. Today, we are approaching the final stages ahead of construction.

The decision to develop the “Kosova e Re” PP comes from a strong argument grounds, built upon several essential criteria: security of electricity supply, optimal environmental protection, establishing the Common Market and regional energy integration, economic growth and establishing preconditions for attracting foreign investments: as well as jobs creation. Considering all the criteria mentioned above, which are directly linked to the development agenda of the Republic of Kosovo institutions, the Project is vital for the future of the country.


II. SELECTION PROCESS FOR EPC & LTMA CONTRACTORS FOR THE “KOSOVA E RE” PP

The “Kosova e Re” PP process is moving towards the final stage for the Financial Closing. Investor ContourGlobal has completed the initial selection for the Turnkey Engineering, Procurement and Construction (EPC) contract of “Kosova e Re” PP following an open and transparent procedure based on best international practices. Four applicants have been pre-qualified in this process. Pre-qualified companies have submitted letters of intent for financing parts of the Project.

BROCHURE

Also, they have proved their ability to meet requirements for the construction of “Kosova e Re” PP, such as prior performance on projects similar in nature, technical abilities and financial support as requested. The international tender for final selection is being conducted under the supervision of the Government of Kosovo and consistent with the procurement rules and policies of the International Financing Institutions (IFIs).

KEY FACTS

FAQ

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PRE-QUALIFIED BIDDERS I. GENERAL ELECTRIC – CONSORTIUM 1. GE Boiler Deutschland GmbH, Germany 2. GE Power sp. z.o.o, Poland 3. Alstom Power Systems, France 4. ALSTOM Power Service, France /Alstom Power Representative office in Kosovo LTMA Applicant: Consortium between: 1. GE Power AG, Gjermany 2. ALSTOM Power Service, France /Alstom Power Service Representative office in Kosovo II. ENKA – MITSUBISHI HITACHI POWER SYSTEMS – MHPS Consortium between: 1. ENKA Insaat ve Sanayi A.S, Turkey 2. Mitsubishi Hitachi Power Systems Ltd., Japan 3. Mitsubishi Hitachi Power Systems Europe GmbH, Germany 4. Técnicas Reunidas S.A., Spain LTMA Applicant: ENKA - TR - MHPSE - MHPS Consortium 1. ENKA Insaat ve Sanayi A.S, Turkey 2. Mitsubishi Hitachi Power Systems Ltd., Japan 3. Mitsubishi Hitachi Power Systems Europe GmbH, Germany 4. Técnicas Reunidas S.A., Spain III. HYUNDAI ENGINEERING & CONSTRUCTION CO., LTD. (HDEC) LTMA Applicants: 1. KEPCO Plant Service & Engineering Co., Ltd., Republic of Korea 2. KEPS-HPS-OES JV, comprising Korea Engineering & Power Service Co., Ltd. (KEPS), Hankuk Plant Service Co., Ltd. (HPS) and Optimal Energy Service Co., Ltd. (OES), Republic of Korea Specialized OEM (steam generator): IHI Corporation, Japan Specialized OEMs (steam turbine): 1. Toshiba Energy Systems & Solutions Corporation, Japan 2. Siemens AG, Germany 3. GE Power sp. z.o.o., Poland 4. Doosan Heavy Industries & Construction Co., Ltd., Republic of Korea IV. CHINA MACHINERY ENGINEERING CORPORATION LTMA Applicant: GE Power AG, Germany and ALSTOM Power Service / Alstom Power Service Representation office Kosovo Specialized OEMs (steam generator): 1. Rafako S.A., Poland 2. GE Boiler Deutschland GmbH, Germany PPO të specializuara (turbinë të avullit): 1. GE Power sp. z.o.o, Poland 2. Siemens AG, Germany

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III. WORKSHOP ON THE ESHIA PROCESS FOR “KOSOVA E RE” PP

Investor ContourGlobal, as part of requirements prior to commencing construction of “Kosova e Re” PP, has held a three-day workshop from 9 to 11 July 2018 in Obiliq to present the process of the Environmental, Social and Health Impact Assessment (ESHIA). All stakeholders reiterated the importance of community consultations and have offered full support in completing the process, which ultimately will contribute to the design and implementation of the Project. The ESHIA is conducted as a legal requirement, and it is in harmony with the International Finance Corporation for Environmental and Social Sustainability. The Project Implementation Unit (PIU) within the Ministry of Economic Development (MED) presented the new stage that “Kosova e Re” PP finds itself following the signing of Commercial agreements between the Government and ContourGlobal. Also, it was announced that the result of the 24 community consultations as part of the ESHIA conducted by ContourGlobal

will be published in 2018. ContourGlobal representatives ensured delegates in the workshop that it is a requirement that the “Kosova e Re” PP, with all of its components, will be applying European Union standards on industrial emissions. A total of 40 participants attended the workshop, representing the Ministry of Environment and Spatial Planning, Kosovo Energy Corporation, New Kosovo Electric Company, Obiliq Municipality, and USAID representatives. The workshop included site visit and the planned associated facilities of the “Kosova e Re” PP, including the new KEK mining area, water supply and grid connection area. Considering a large number of stakeholders involved in the “Kosova e Re” PP, workshops of this nature are scheduled to take place regularly leading to construction of “Kosova e Re” powerplant in order to ensure timely implementation of the finalisation of the Project.

PROJECT DOCUMENTS To learn more about the Kosovo a Re Project, the following links and documents to Commercial Agreements, Brochure, FAQ and social media have been provided below. Power Purchase Agreement

Ash and Gypsum Disposal Agreement

Implementation Agreement

Lignite Supply Agreement

Sponsor Support Agreement

Connection Agreement

Site Transfer Agreement

Water Supply Agreement

LINKS

SOCIAL MEDIA

Ministry of Economic Development

Facebook

“Kosova e Re” PP

Linkedin

Kosovo Energy Strategy

Twitter DOCUMENTS

BROCHURE

GOVERNMENT OF KOSOVO MINISTRY OF ECONOMIC DEVELOPMENT Tel. 038 200 215 83 www.mzhe-ks.net

KEY FACTS

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ADDRESS: GOVERNMENT OF KOSOVO MINISTRY OF ECONOMIC DEVELOPMENT SQUARE “ZAHIR PAJAZITI”, NO.36 10000 PRISHTINA, REPUBLIC OF KOSOVO

FAQ


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