The Ministry of Economic Development of Kosovo and the Bid Evaluation Committee have opened the financial proposal for the 1st Phase of the Kosova e Re project.
The proposal for the project was submitted by the US-based bidder ContourGlobal.
Based on the criteria of the request for proposals (RFP), the bid of Contour Global includes an internal rate of return, which will be applied to the equity invested over the lifetime of the power purchase agreement (PPA), and the maximum cost of project development.
Through its offer, ContourGlobal has confirmed that it is willing and has the financial capacity to invest up to 30% of the total cost of the project, as well as has access to get loans for the remaining 70% of the investment cost.
The project involves the development of a new lignite-fired 2x300 MW power plant and the rehabilitation of the existing 2x340 MW Kosovo B power plant.
the project also includes the shut down of he Kosovo A power plant, which is considered the largest source of pollution in Kosovo. It also includes the development of a new lignite mine in order to meet the needs of the Kosovo B and the newly constructed power plant.
The power plants will be developed on a build, own and operate (BOO) basis, while the new lignite mine will be developed on a build, own, operate and transfer (BOOT) basis.
The total project investment for the first phase is estimated at €1 billion (US$1.14 billion).
The financial proposal of ContourGlobal will now be evaluated by the advisors and 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 will be subject of an international bidding process for engineering, procurement and construction (EPC) contracting and operation and maintenance (O&M).