Kosovo Opens Key 24.5 Mln Euro Power Substation

The 400/110 kilovolt (kV) Peja 3 substation will eliminate the existing bottlenecks in the transmission system and hence stabilise the grid in the entire western Kosovo, the German Embassy, a donor to the project, said in a statement after the inauguration ceremony.

The German government, through its development bank KfW, provided 13.5 million euro as a grant for the project and the Kosovo government put up the remainder.

The financing of the Peja 3 substation is part of an investment package of the German government aimed at ensuring lignite production in the long run and stabilising the transmission network. As part of the package, a coal excavator is to be refurbished at a total cost of 8.0 million euro. The project will precede the opening of the Sibovc mine which should feed Kosovo's lignite-fired power plants from 2010 on.

Kosovo has the world's fifth-largest proven coal reserves, estimated at 12 billion metric tonnes, but due to outdated facilities and lack of funds for extraction it continues to suffer power outages.

The commitments of the German government over the last 10 years for Kosovo amount to more than 200 million euro and focus on support for the energy,
financial and water sector. Over 100 million euro have been provided for energy projects.

($ = 0.6689 euro)