UNMIK on Air

“KEK”

October 2004

(Valon A. Syla)

Hello and Welcome to UNMIK on Air,

When international observers come to Kosova, they cannot imagine Kosova still faces power cuts when there are such huge reserves of lignite coal. Many energy experts contend this paradox is in large part due to the inability to extract the coal.

European taxpayers managed to change this reality through the EAR, European Agency for Reconstruction.

Atmosphere: Machines working…

Although experts admit lignite coal produces the greatest CO2 emissions of any fuel, turning it into energy is of vital interest for the Kosova economy.

Today, modern mining equipment has increased the efficiency of work and production for Kosovo Electric Corporation by as much as 100 %, this according to Bodo Lehmann. Lehman works with Vattenfall Company, which is contracted by the EAR to improve KEK’S mining sector.

Actuality: Tr. 1 You are looking at the machine donated by the EAR. It can be loaded with up to 350 tons, which is very important for digging in the mines.

Local mining experts have valued the coal at around $ 300 billion €. The arrival of more modern mining equipment has also increased the coal production in the Mirash Mines near Obilic says the mine manager Shefqe Baca.

Actuality: Tr. 2 In 1999 we managed to dig up 3 million tons of coal. While in 2003, we are digging up 6.6 million tons of coal, which means that the production has doubled’.

Atmosphere: Working atmosphere, in mines

Working conditions at the KEK mine sector have also significantly improved over the last three years. Repairs and maintenance are done every year by KEK workers, under the supervision of the European Agency for Reconstruction engineers. Beqir Fazliu is a supervisor for KEK’s mine sector.

Actuality: Tr. 3 General assets donated by the EAR reach an amount of 74 million Euros. Out of that- 66 million have been spent thus far, while another 16 million Euros have been contracted and are in development. 4.3 million Euros are in the tendering phase, which is expected to be completed around the end of 2004.”

The EAR has contracted a group of experts from Germany to draft a more forward-looking mining plan. We can always increase the capacity of coal production in Kosovo says Ullirch Hohna, the team leader of the project.

Actuality: Tr. 4 ‘We are putting together a middle term plan and another long term one in order to offer Kosovo the possibility to feed the current power plants with coal, and also to attract enough foreign investors to build a new power plant.

But investment for the mine infrastructure is only part of the equation to boost power expectations in Kosovo. The biggest part of the foreign donations has been channelled into one of Kosovo’s energy plants, known as ‘Kosova B’.

Atmosphere: Kosovo B

The Kosovo B power plant was built in the early 1980’s, and out of 375 million Euros donated to the Kosovo Electric Company thus far, more than half has been used to restore the aging power plant. Agron Orana is an energy engineer hired by EAR.

Actuality: Tr. 5 ‘Donations in the amount of €174 million contributed to making Kosovo B power plant units comparable with power plants in other parts of Europe. The production capacities can be compared as well. You can notice from the command room that currently is producing 300 MW per hour.’

Balduan Zimmer an international energy expert from Germany agrees that the aims of EAR are largely being met in Kosovo. He says that today’s main challenge for KEK’s economic well-being is to insure more revenue collection from Kosovo’s residents.

Actuality: Tr. 6 “KEK can be sustainable only when it’s can collect the revenue from the consumers, because today they can only collect 30 percent for the produced energy. Another issue is that KEK has to insure from its budget 20 to 25 million € to maintain the power plant permanently.”

With continued improvement in the mining sector, KEK management is hoping to sweeten the potential benefits in the eyes of international investors hoping to tap into Kosovo’s energy sector.

This was all fro this edition of UNMIK on air thanks for listening, and stay tune.