Kurti government's fight against foreign energy investments continues

The newspaper Infokus has provided documents proving that two hundreds of millions of projects in the field of energy and mining, which had received the status of Strategic Investator from the previous government and were waiting to launch investments in Kosovo, has decided to return to reassession.

“Cicavica Wind Farm 1 L.L.C.”, project of the French company “Akou Energy” that would invest over 100m euros in wind renewable energy production and “Moxico ) River Kosovo Mining L. L. C”, which would invest over 45m euros in underground wealth extraction, is not being seen with interest by the Kosovo government led by Albin Kurti.

Both projects were designed to take place in the Vushtrri municipality.

According to a corruption between Minister Hajdari and the ministers of the government-member cabinet of the Strategic Investment Commission, which has provided the Infocus newspaper, it is seen that both projects, even though they have passed all phases of the assessment and were waiting for the green light from the Kosovo Assembly, will not continue.

This seems to have major financial implications for the state and on the image of foreign investors.

Company representatives do not rule out the possibility of sending the case to arbitration and the country losing millions of euros from the process.

However, they are awaiting the final decision of the Government of Kosovo.

Based on documents owned by Infocus newspaper, the whole process has become re-evaluated at the request of the Prime Minister's Office, without a government decision, writes Infocus newspaper.

“After now confirming consultations with the ZKM's legal office we've been cleared and received sufficient clarifications then, after the subject returns to the proposal (Minister of the Ministry of Industry, Enterprise and Trade) for reconfirmation, we know that this investment has to do with energy promotional tariffs and, after all, clearly, no such benefits to the energy sector, we will return the subject once again for review and assessment to the Strategic Investment Commission <181), the Minister's going Minister Roseta Hajdez told the Minister for Investment Commission to send members of the Strategic Investment Commission.

Much the same is the reasoning about the other investor in the underground resource extraction project, which is said to be reevaluated because of its many influences but does not specify what they are.

Meanwhile, the minister has recommended to the government that the company “cost Foods” to obtain the status of the strategic investor, as according to it the obstacles this company had in the past with the Ministry of Agriculture have overcome.

Investors prepare to sue Kosovo

The whole situation has irritated investors waiting to pour millions into Kosovo.

Arbnor Kastrati, regional director of “Cicavica Wind Farm 1 L. L. C” has indicated to the Infocus Journal that since 2017 they have been wandering institutions to obtain the status of Strategic Investors.

Although he says they have been invited by the Kosovo government to invest in the country themselves, they are now facing unreasonable obstacles.

“We have come to Kosovo at the invitation of the country's government, as it has been promoted as law and good investment opportunity”, Kastrati shows.

Now, while officially not receiving notice that everything has returned to zero, it indicates that it was warned of this by Minister Roseta Hajdari.

At the last meeting he had had with Minister Hajdari, the issue of promotional tariffs has been discussed.

“We have applied with promotional tariffs and with the same application we have acquired Strategic Investors status and we have expected the Parliament to approve after the Kosovo government approved it. But, the minister has informed us that they cannot support with promotional tariffs, and we have been willing to negotiate, as the strategy investment law” envisions that, says Kastrati.

At a meeting with the minister, he said he was also the French deputy ambassador, as investors of this project are from this state.

The Minister told us to drop the rate. We are willing to give up the tariff, but at least the land is offered to us, as it does not prevent anyone from continuing with the previous investment”, he claims.

Now, however, even the property in which it will be invested is said to be in question, the paper writes.

It all depends on how the commission will decide again.

This is disturbing Kastrati and the company's investors he runs.

“We have also said in recent years that it is good that there is a law on strategic investment, but better communication needs to be built with investors”.

According to him, such approach to those who can develop important projects is damaging the country's image and is by no means a good mirror for potential investors.

His case, he says, has testified that foreign investors are not treated properly.

Therefore, even it does not rule out the possibility to sue the state of Kosovo for the damages it has caused.

“We will expect an official response from the inter-ministerial commission to see how to act in the future. If it is the goal of institutions to have strategic investments we will continue, if not we will see other forms of action and not exclude arbitration”, Kastrati says.

If the Strategic Investment and Foreign Investment Law is viewed, the terms for arbitration have been met, writes Infocus newspaper.

“Anyway, we are companies that want to realise projects and not benefit from such situations”.

Currently, this company has invested 1m euros in preparation only to obtain strategic investor status in Kosovo and has prepared capacities to make the previous investment.

But all of this could be wasted if the Kosovo government decides not to recognise the status of the Strategic Investors, which they won late last year.