SESA Brochure

Strategic Environmental and Social Assessment

KOSOVO C


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IntroductIonrevitalizing Energy Sector in Kosovo

Energy and mining have been mainstays of the Kosovo economy for over 40 years, providing direct and indi-rect employment, export earnings, and support for the growth of private industries. However the power sector has transformed from a contributor to economic growth to a drain on public resources due to outdated and pol-luting power plants, lack of funding for maintenance and investments due to electricity theft and inadequate bill collection, and therefore an increasing demand for power which is outpacing supply. the result has been rolling blackouts, which are especially painful during the heating season.

the situation is not only negatively impacting the daily lives of Kosovars now, but is impeding the economic growth needed to secure the future development of the country. Poverty and unemployment are critical chal-lenges which Kosovo still needs to overcome.

With foreign assistance grants declining rapidly, the Gov-ernment recognizes that it urgently needs to revitalize the economy, and that energy and mining are the devel-opment areas with the greatest potential to contribute to this goal in a relatively short time period.

the development of Kosovo’s power sector occurred primarily between 1962 and 1984, and included devel-opment of the Bardh and Mirash mines, with total coal reserves of 300 million tonnes, and construction of the power plants Kosovo A and Kosovo B, with a total in-stalled capacity of 1,478 MW.

the dedicated coal reserves of the Bardh and Mirash mines were known to be insufficient to supply both power plant units until the end of their operational lives; therefore, a new mine was planned to ensure supply for Kosovo B and possible expansion of its generation


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capacities, in a second phase (two additional units of 340MW each).

during the 1990s, due to the political and economic situa-tion, the power sector stagnated; there was no startup of a new mine and the second phase of Kosovo B was not built.

Since 1999 more than 50 technical studies, papers and reports have been prepared by consultants funded by the international donor community, focusing on min-ing, generation, power sector restructuring, and legal, environmental and social issues in the power sector. conclusions and recommendations of these studies were presented in the Kosovo Energy Strategy in 2005. to implement the recommendations of the Strategy within the framework of a competitive and liberalized energy market, adhering to European standards and internation-al best practice, the Lignite Power technical Assistance Project (LPtAP) was initiated in 2006.

Based on the recommendations of the Kosovo Energy Strategy and later studies, the Government proposed and LPtAP supported the “Kosovo c” energy and min-

ing project to be developed through foreign direct in-vestment. the project will have three components:

construction of a new power plant, “Kosovo c,” ●●with a capacity that would allow for phased re-placement of the old generation capacities and secure long term electricity supply at competitive prices while meeting domestic demand;

rehabilitation of certain units at the existing power ●●plants until the first units of Kosovo c are built, to meet domestic demand in the short to medium term, and

development of a new mine to supply Kosovo A and ●●B in the short to medium term as well as fueling Ko-sovo c for the duration of its 40-year operational life.

the pre-qualification process resulted in four highly qualified short-listed bidders that are ready to help de-velop the power sector in an environmentally and socially sustainable way to make it a business from which all Kosovars can benefit.


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Building an effective democratic government, securing energy supplies, supporting economic growth, reduc-ing poverty, and maintaining a healthy environment are fundamental to Kosovo’s independence and integration into Europe. the Kosovo c Project will make important contributions in all of these areas.

In addition to ensuring self-sufficiency in power supply, the Kosovo c power project will allow the country to become an energy exporter, generating revenues which could be used by the Government of Kosovo to support programs such as targeted social assistance for those in extreme poverty, support for education and job training, and improved health services. By improving the lives of the people of Kosovo, such initiatives will strengthen the country’s prospects for human development and future peace and prosperity.

the Government recognizes that Kosovo’s future is also likely to depend on greater European integration. As an energy exporter, Kosovo will increase its role in South-east Europe. At the same time, the project will increase the Government of Kosovo’s capacity to meet European

union social and environmental standards in the devel-opment of infrastructure, paving the way for Kosovo’s potential integration within the Eu.

on the environmental front, clean-up of previous pollu-tion, along with new, cleaner technology and better reg-ulation, which are all included in the Kosovo c project proposals, are expected to actually result in a cleaner environment for Kosovo. Anticipated environmental ben-efits from the project include:

Soil remediation;●●

reclamation of mining areas, ash dumps and over-●●burden (at the new mine as well as previously con-taminated areas);

Lower total atmospheric emissions (no●●x, So2, par-

ticulate);

Improvement/modification of existing infrastructure ●●(Iber Lepenc canal, electricity grid, roads, etc.);

ProjEct BEnEfItSIndependence, Integration and a cleaner Environment for Kosovo


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Sitn

ica

Drenica

Drenica

Sitni

ca

Drenica

Hade

Palaj

Obiliq

Mirash

SibovcMazgit

Hamidi

Kuzmin

Lismir

Bivolak

Plemetin

Nakaradë

Zhilivodë

Pomazotin

Shipitullë

Lajthishtë

Dardhishtë

Bardh i Madh

Graboc i Epërm

Graboc i Poshtëm

Area of interest and existing facilities

Settlements

Settlement area

Overburden dump

Ash dump

Forest

Water body

IL canal

Rivers

Streams

Main road

Railways

TPP Kosovo A

TPP Kosovo B

KEK mining license

KEK new mining license

New mining area

Coal belt conveyor

1,000 0 1,000500Meters

TPP Kosovo A

Overburdendump

TPP Kosovo AAsh dump

TPP Kosovo BAsh dump

TPP Kosovo B

Bardh mine

Mirash mine

Sitnica mine

Fushe Kosove

Pris

hti

na

Overburdendump

Overburdendump

Overburdendump

Overburdendump

Overburdendump

Sitn

ica

Drenica

Drenica

Sitni

ca

Drenica

Hade

Palaj

Obiliq

Mirash

SibovcMazgit

Hamidi

Kuzmin

Lismir

Bivolak

Plemetin

Nakaradë

Zhilivodë

Pomazotin

Shipitullë

Lajthishtë

Dardhishtë

Bardh i Madh

Graboc i Epërm

Graboc i Poshtëm

Area of interest and existing facilities

Settlements

Settlement area

Overburden dump

Ash dump

Forest

Water body

IL canal

Rivers

Streams

Main road

Railways

TPP Kosovo A

TPP Kosovo B

KEK mining license


New mining area

Coal belt conveyor

1,000 0 1,000500Meters

TPP Kosovo A

Overburdendump



TPP Kosovo B

Bardh mine

Mirash mine

Sitnica mine

Fushe Kosove

Pris

hti

na

Overburdendump

Overburdendump

Overburdendump

Overburdendump

Overburdendump


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StrAtEGIc EnvIronMEntAL And SocIAL ASSESSMEnt Meeting the highest possible standards

Kosovo is developing principles of good governance, transparency, and adherence to international environ-mental and social standards, which will support its inte-gration into the international community. the Govern-ment of Kosovo, in implementing the LPtAP, has com-mitted to building its capacity to meet such standards while expanding and improving its activities in energy and mining.

Its first major undertaking towards this end is the Strate-gic Environmental and Social Assessment (SESA) of the Kosovo c project. the SESA evaluates the effects of the proposed project, and uses the findings in a publicly ac-countable decision-making process. this SESA is in line with the European commission’s directive on Strategic Environmental Assessment of Plans and Programs and the World Bank’s Safeguards Policies and Procedures.

the SESA was prepared in two phases:

Phase I - Baseline Study, including:

Environmental and socio-economic baseline data;●●

detailed household surveys and establishment of ●●community development forums to fill socio-eco-nomic data gaps;

Local/regional power sector development strategies;●●

SESA legislative and regulatory review.●●

Phase II - Evaluation Process, including:

comparison of potential development scenarios;●●

Evaluation of environmental and socio-economic ●●impacts of the development scenarios;

Preparation of the Environmental Management ●●Plan, including mitigation measures and environ-mental monitoring plan.

the process of developing the SESA has also provided the Ministry of Environment and Spatial Planning with information needed for the preparation of a new Min-ing field development Plan (nMfdP). this information includes:

Lignite power sector development schemes;●●

Planned or anticipated regional developments in ●●other sectors, such as land-use and infrastructure;

Interactions and linkages among the various devel-●●opments in different sectors;

Measures and conditions to optimize sector devel-●●opment and minimize negative impacts; and

Administrative procedures and regulations and in-●●stitutional roles and responsibilities under which the nMfdP will be implemented.


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Environmental and socio-economic indicators include:

Environment: air, soil and groundwater, surface ●●water and wastewater, noise, waste, natural envi-ronment;

Socio-economic: demographics, economy, land use, ●●water use, infrastructure, health, education, com-munity attitudes.

the Environmental and Social Baseline section of the SESA report concludes that the environmental situation in the area of interest is very complex for various reasons:

the setting has been affected by historical mining ●●activities with significant land modifications;

Air quality is poor due to existing power plant emis-●●sions that are not compliant with Eu standards, and the spontaneous burning of lignite and dust emis-sions from ash dumps, which are the main sources of air pollution;

Water resources are stressed due to competing ●●demands, resulting in periodic shortages in potable water supply during summer months.

Soil and ground water quality have been harmed ●●by ash and other waste disposal and from former activities of fertilizer and gasification plants;

Surface water has been contaminated by untreated ●●wastewater discharges from power plants, mining activities and urban waste water;

noise emissions from mine activities disturb people ●●living around the mine border;

Environmental controls (for air or water) are absent ●●or insufficient in the area;

no formal waste management procedures are in ●●place at the industrial sites.

EnvIronMEntAL And SocIAL BASELInE


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conSuLtAtIon And IncLuSIon

the SESA process began with an extensive consultation process which identified key stakeholders, informed them about the project, and relayed their concerns and suggestions back to the government.

the Initial public hearing, followed by village consulta-tions, revealed that small focus discussions were the most effective. this lead to establishment of community development forums. these forums would represent vil-lage concerns and act as a point of contact between the project and the community.

during the period from january - May 2008, a total of 58 meeting in ten different settlements were held with over 920 participants. ten community development forums were successfully established with around 248 members. from 60 representatives elected in a transparent man-ner, 45 percent are youths, 16.7 percent are women and 1.6 percent are minorities. At the same time, a detailed Household Survey was carried out in the area of interest and some 1,580 households were interviewed. results of the HH Survey helped improve the socio-economic data gap, since the last census was carried out in 1981.

the consultation process found that the main commu-nity issues and concerns were the following:

community knowledge of the proposed project ●●was generally high, although the level of detailed knowledge varied;

there were a number of common concerns, with ●●the most frequent being: employment; lack of in-frastructure (roads, water supply, sewerage system); pollution of air, water and soil; irregular electricity supply; land expropriation and compensation for resettlement and maintaining village as whole when resettled;

Generally, communities were in favor of the project ●●and hoped that it would bring economic and em-ployment opportunities.

the Baseline section of the report also considered water supply as a potential limiting factor for the development project. Although the water supply has been clearly confirmed as sufficient to support the proposed project, the Iber-Lepenc system is increasingly under stress, and competing demands are likely to emerge in the medium to long term. this situation requires urgent development of a comprehensive policy, institutional and planning framework for water resource management in the Iber-Lepenc system.


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2033

2023

2017

2013

2017

Sitn

ica

Drenica

Llap

Sitn

ica

Drenica

Hade

Palaj

Obiliq

Mirash

SibovcMazgit

Hamidi

Lismir

Bivolak

Plemetin

Nakaradë

Zhilivodë

Shipitullë

Lajthishtë

Dardhishtë

Bardh i Madh

Graboc i Epërm

Graboc i Poshtëm

Alternative sites and mine development

Settlements

Main road

Railways

Rivers

Streams

IL canal

Settlement area

Overburden dump

Ash dump

Forest

TPP Kosovo A

TPP Kosovo B

KEK mining license


New TPP alternative sitting

New TPP area of impact

Downwind area

Receptors

New mining area

New mine development

1,000 0 1,000500Meters

TPP Kosovo A

Overburdendump



TPP Kosovo B

Bardh mine

Mirash mine

Sitnica mine

Fushe Kosove

Pris

hti

na

Overburdendump

Overburdendump

2033

2023

2017

2013

2017

Sitn

ica

Drenica

Llap

Sitn

ica

Drenica

Hade

Palaj

Obiliq

Mirash

SibovcMazgit

Hamidi

Lismir

Bivolak

Plemetin

Nakaradë

Zhilivodë

Shipitullë

Lajthishtë

Dardhishtë

Bardh i Madh

Graboc i Epërm

Graboc i Poshtëm

Alternative sites and mine development

Settlements

Main road

Railways

Rivers

Streams

IL canal

Settlement area

Overburden dump

Ash dump

Forest

TPP Kosovo A

TPP Kosovo B

KEK mining license


New TPP alternative sitting

New TPP area of impact

Downwind area

Receptors

New mining area

New mine development

1,000 0 1,000500Meters

TPP Kosovo A

Overburdendump



TPP Kosovo B

Bardh mine

Mirash mine

Sitnica mine

Fushe Kosove

Pris

hti

na

Overburdendump

Overburdendump


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While the final installed capacity has yet to be decided by the Government of Kosovo, the SESA report foresees development of a new lignite-fired thermal power plant with a total installed capacity of up to 2,000 MW and development of a new lignite mine in the new Min-ing field, an area previously known as “Sibovc Mining field”.

the main recommendations of the SESA and the analysis of the possible development scenarios are the following:

the power plant should be developed in a phased ●●approach, in which a first stage (1,000 MW) would allow for replacement of Kosovo A power plant, meet domestic demand with some export, and per-mit a major overhaul of the Kosovo B power plant to increase reliability and bring it in compliance with Eu environmental standards. the second stage (1,000 MW) would meet growing demand and al-low for a later retirement of Kosovo B.

Kosovo A is the preferred site for construction of ●●Kosovo c, although the score given to the alterna-

tive site close to Kosovo B was similar. choice of the final site will depend on which of the existing power plants are included in the final tender for the project, and the outcome of the SESA public hear-ing;

Both available technologies (pulverized fired ‘Pf’ ●●or circulating fluidized bed ‘cfB’) are acceptable and would comply fully with Eu standards. the limiting factor from a grid stability perspective is a maximum unit size of 500 MW. With regard to cfB technology, the largest unit size in operation is 300 MW. Smaller unit size translates to slightly higher co

2 emission due to lower efficiency (39% vs 42% using Pf) and higher space requirement (more units). the advantage of cfB technology is that it does not require the fdG (flue Gas desulphuriza-tion) and thus uses less water. In moving forward to a commercial transaction, the Government will want to consider the trade-offs between the en-vironmental benefits of larger units and the more flexible system operating characteristics of smaller units.

ALtErnAtIvE dEvELoPMEnt ScEnArIoS


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Environmental pollution, in particular as a result of mining and power generation, already represents a serious problem in Kosovo, which previously did not have environmental controls.

LPtAP will help Kosovo develop an environmental man-agement plan to improve air quality in Prishtina, clean up polluted soil, and mitigate impacts from mines and power plant operation. SESA is the first step in this di-rection

the SESA report identified and weighed two main impacts on local communities: land acquisition and re-settlement, and air and noise pollution. these impacts stem primarily from mining development rather than power plant location.

the major anticipated impacts of the project are the following:

Higher water consumption;●●

People/villages to be resettled;●●

Land use modification;●●

Higher total lignite consumption;●●

Higher total co●● 2 emissions (but lower specific co2/MWh emissions).

Proposed mitigation measures may include:

reducing water consumption through recycling of ●●industrial water;

developing a comprehensive policy and institutional ●●framework for water management and river basin planning

MAnAGInG EnvIronMEntAL And SocIAL IMPActS – Past, Present and future


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Public Hearing

the draft final SESA report will be the subject of a public hearing where the affected communities, civil society, nGos and other stakeholders are encouraged to raise questions and concerns relevant to the proposed project. the findings of the public hearing will be incorporated in the final SESA report.

the final SESA report will provide policymakers with in-formation and analysis to help them evaluate and deter-mine the optimal site for construction, size and number of power plant units; identify co2 mitigation alternatives; and ensure that the local community also benefits from the proposed project.

the SESA reports can be downloaded at:

www.lignitepower.com/sesa

Installing appropriate noise barriers to reduce noise ●●disturbances;

Supporting research on best methodology to re-●●duce co2 emissions;

reclaiming old mine areas;●●

urgently reducing dust emissions from mines, pow-●●er plants and ash disposal;

revamping Kosovo A and Kosovo B to bring them ●●in line with Eu standards;

construction of a wastewater treatment plant and ●●sewer system.

Establishing an adequate monitoring system;●●

Adoption of a resettlement policy framework●●

Adoption of a spatial development plan●●

Strategic Environmental and Social Assessment june 2008 Government of KosovoMinistry of Energy and MiningLignite Power technical Assistance Project (LPtAP)the World Bank grant: IdA H 254 KoS / H 318 KoS

Environmental and Social Safeguard Advisory Services for Private Sector Participation in the development of new Generation capacity, related transmission and the development of the Sibovc Lignite field

For inquiries contact:

the LPtAP Project officeMs. Ardiana Efendija Zhuri, Environmental and Social task ManagerE-mail: [email protected], Phone: + 381 (0)38 213 771

also

Municipal Project Information office, obiliq/Kastriot Municipality building, office no. 24Ms. Safete Grajqevci, chief of Information office and Public relationsE-mail: [email protected], Phone: + 381 (0)38 560 310 des

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ERM Italia S.p.A.riccardo corsi, Project team Leadervia San Gregorio, 38I-20124 Milanot: +39 02674401f: +39 0267078382E-mail: [email protected] urL: www.erm.com

The LPTAP Project OfficeLorik Haxhiu, Project Manager24 Maji Street no. 1510000 Prishtinë, republic of Kosovot: + 381 38 213 770f: + 381 38 213 772E-mail: [email protected] urL: www.lignitepower.com/sesa

SESA Brochure

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