The project involves the construction of 2,000MW coal-fired power plant and development of new lignite mine nearby. The first phase of the project starts with the construction of 1000MW power plant, with the rest 1000MW to be constructed in the next phase.

Quoting Hashim Thaci – prime minister of Kosovo, Reuters reported: The new plant will produce 2,000 MW and it will be divided in two phases. In the first phase the plant will produce 1,000 MW and will be built immediately. The new plant will be able to produce enough energy for our consumption and also for export.

For constructing the project, three foreign groups, Czech power firm Cez and AES of the US; Italy’s ENEL and Greece’s Public Power’s Sencap; and Germany’s EnBW and US-based WGI, are in the race. ECIKS reported that the German RWE group has withdrawn from the bidding process for construction of the new power plant, and the remaining three international consortiums are in the race.

Kosovo’s required power of 1,000MW cannot be generated by the existing older coal-fired plants, Kosovo A and Kosovo B, which are in poor condition. Since Kosovo A plant falls short of existing environmental standards, the government has decided to close Kosova A power plant by 2015, and will decide to sell the Kosova B power plant also.

In addition, the Sibovc Mine under the project would be allotted to the company that wins the tender for construction of the new power plant for a 40-year concession.