Kosovan opposition slams government over €21mn payout to Contour Global

Kosovan opposition slams government over €21mn payout to Contour Global
ContourGlobal's cancelled Kosova e Re coal power project was intended to replace the ageing Kosova A and Kosova B, two of the most polluting power plants in Europe. / bne IntelliNews
By bne IntelliNews July 15, 2024

Kosovo's opposition Democratic Party of Kosovo (PDK) voiced strong opposition following the decision by PM Albin Kurti government to allocate €21mn to Contour Global as a result of an arbitration process concerning the failed construction of the Kosova e Re power plant, RTK reported on July 12.

Bernard Nikaj, a member of the PDK leadership, addressed the press, saying that the financial loss signifies more than just a monetary setback. He argued that the government's handling of the project demonstrates a broader failure to develop a clear and sustainable vision for meeting the energy needs of Kosovo’s citizens.

"The government of Kosovo decided to pay €21mn as a result of losing the arbitration process against Contour Global. This sum is equivalent to 42,000 average salaries in Kosovo," Nikaj was cited as saying.

Nikaj also said that the government has not completed any of the projects it inherited, nor has it initiated any new projects in the energy sector.

"In addition to the New Thermal Power Plant project, the government led by LVV (Vetevendosje) has also cancelled the natural gas project, which was initiated and supported by the MCC, as well as other donors such as the EBRD and the European Commission. The result of all these failures is the high energy prices today, which our citizens experience every day and every month in their bills, along with extreme uncertainty of supply, especially in the winter months," he stated.

In October 2023, Kosovo's Ministry of Economy received notification from the Arbitration Tribunal, mandating Kosovo to compensate the US company ContourGlobal for costs associated with the failed Kosova e Re thermal power plant project.

ContourGlobal cancelled the 500 MW coal-fired power plant project in March 2020 and subsequently sought resolution through the International Centre for Settlement of Investment Disputes (ICSID).

The project was estimated at €1.3bn. The decision followed a change in Kosovo's government leadership from Ramush Haradinaj to Kurti. 

 

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