The Weakest Link of Kosovo's Democracy - KFOS

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EU legislation demands a notification on integration of environmental problems
in the plan or program. Kosovar authorities have not conducted yet the Environmental
Strategic Impact Assessment, let alone to integrate such information in
the plan.
- Pretending Kosova will develop economically
It has been propagated that Kosova C will be the savior of Kosovar economy.
Almost entire profits of this project will belong to the investing company, which most
likely will be completely foreign although the Parliament’s Strategy requires joint investments.
Profits from coal sales are constantly being propagated. With this it is referred to the
closure of national energy production capacities, which would cause losses to Kosovar
economy. The estimated loss is approximate to the profit to be made from low royalties
the investing company is to pay. This sector has not been regulated by law yet.
Therefore we have no law and sufficient knowledge on concessions, and lignite price
determination.
It is propagated that employment will cause economic development. First
of all, employment will not reach the expected level since the modern technology
has minimized the necessity for human labor force. Secondly, from other investment
projects that employed Kosovar workers it has become clear that Kosovar institutions
have failed to oblige the investor on reasonable wages for their employees. As a result,
their wages have often been lower than the minimal wage as determined by law.
It has been claimed that Kosova budget will benefit from investors tax payment
which will impact country’s development. In fact, the losses incurred to
the Kosovar economy by this project will be for several times larger than the collected
taxes. Opening new coal mines will take away considerable arable land from farmers.
Due to the project’s geographical impact, the family farms will become smaller. Kosovar
economy will suffer from aggravated water supply and its further pollution to be
caused by massive energy production from low quality lignite. More on this problem
will be discussing the following:
- Documents prepared by previous and current government on energy
sector related to Kosova C 2100 project will cause severe damage to
Kosovar economy as they discriminate against national companies
and favor foreign investors:
a) Prioritizing the investor on Kosova C for water supply compared to
Kosova A/B, population, and agriculture 54 ; International principles
on usage of water resources determine the following prioritization
of water supply: population supply => agriculture supply => industry
supply. In Kosova C project Kosovar authorities have set priority
on supplying the power plant Kosova C, reversing the international
principle to Kosova C => population supply => agriculture supply
54 Carl Bro Group, Environmental Impact Assessment and Action Plan for Kosovo A and
B Power Plants and Coal Mines, Environmental Action Plan, June 2003., Also “Kosova CË A
Modern Tale”, pg. 28
The Weakest Link of Kosovo’s Democracy
forum 2015