New Kosovo <x0 plant”, World Bank may not loan Kosovo

World Bank officials have not responded directly to their position on the thermal power plant, whose energy will be fully based on coal.

But in an answer to KTV, they have said they are doing analysis to see if there is potential for renewable energy in the country.

Our energy “Experts are analyzing a study through which a number of possibilities will be considered. The pace of technology change in the energy sector is moving rapidly, especially in renewable energy sources, such as solar, through wind, conservation, where prices continue to decline. Our analysis is taking into account these developments and we're informing the government”, said Carl Patrick Hanlon, the World Bank spokesman.

But through this agreement, the government is designed to be guarantor of the loan, providing state aid.

This is against the State Assistance Law, as this decision has not been adopted by the Commission for State Assistance, because such a commission is not yet established by the Assembly of Kosovo.

In the Ministry of Finance, they have said they have applied this year for the formation of this commission and are expected to propose names by the Parliament and their approval by MPs.

Days ago, the Energy Community Secretariat, the EU institution, asked the Kosovo Government to scrap the deal with Countour Global.

And if the government guarantees this loan, it will increase its external debt.

So far, external debt is close to 1 billion euros, or 16 percent of GDP, while it is allowed 40 percent.

With 70 per cent of the 1.3 billion euros expected to cost investment, it will approach the allowed border, unable state aid in other projects.

For this, civil society had also reacted, saying the new thermal power plant project would jeopardise the country's economy.