4908 - Galeria_single | MMPH

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Pristina, 03.02.2015- The Ministry of Economic Development and the Bid Evaluation Committee, in the presence of the Project Steering Committee (PSC), the Transaction Advisor, Strategic Advisor and observer members, opened the Financial Proposal for the 1st Phase of the Kosova e Re Power Plant, submitted by the US-based bidder ‘Contour Global’.

Observers from the World Bank, EBRD, USAID, KfW, US Embassy, the European Union Office in Kosovo, as well as representatives of other local institutions working in the energy sector, KOSTT, KEK, were invited for the opening of the Financial Proposal.

Based on the criteria of the Request for Proposals, the bid of the investor Contour Global includes an Internal Rate of Return, which will be applied to the contributed equity over the lifetime of the Power Purchase Agreement, and the maximum cost of Project Development, which cannot be exceeded and only includes costs specifically allowed for the development of the project.

Through its offer, Contour Global has confirmed that it is willing and has the financial capacity to invest up to 30% of the total cost of investment in the Project, as well as has access to loans for the remaining 70% of investment cost in the Project. Based on various analysis and studies conducted by the technical Transaction Advisor, the total investment cost for the project will be amount to around 1 billion Euros.

The Project Steering Committee is committed to the development of a transparent process in accordance with Kosovo legislation and applying World Bank rules. The Contour Global Financial Proposal will be evaluated by the Transaction Advisors, Strategic Advisors and Evaluation Committee on this basis, and they will consult the World Bank to ensure that the bid complies with the requirements and criteria of the World Bank.

After the conclusion of this phase, for Phase 2 of the project an international bidding process for EPC contracting (Engineering, Procurement and Construction) and O&M (Operation and Maintenance) will take place and financing for the Project by creditors will be ensured. Only after completion of all these Phase can the final cost of investments in the Project be determined, as well as other indicators related to the project.

MDE will timely and duly inform the public on future developments in the Project.
 

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