The Weakest Link of Kosovo's Democracy - KFOS

Post Bulgarian Plan– Beware of the last minute deal!
Luan Shllaku and Lumir Abdixhiku
We all want electricity and a highway. We also wish profitable privatization.
But, we should accomplish all this without abusing with economic potential
of the country and the rule of law. These things should be done by heart, but
also in style!
The Government has started privatization of big publically owned enterprises and
started carrying out two big investment projects, in infrastructure and energy. This
marks a new period of development of the country when, on one side, there are plans
to sell our biggest and most profitable assets and, on the other hand, big investment
projects are initiated, which are to be paid by taxpayers money, such as the case of
the highway Morinë – Merdar, and with the money of foreign private investors, in
the case of investments in thermo-energy. This important development project should
be viewed from two aspects, the economic one: (1) what are benefits of Kosovo from
privatization and investment, and the rule of law (2) how transparent, responsible and
based on applicable legislation was this process.
Below have been provided 10 moments showing that this entire process, which is
characterized with unseen haste in privatization and great delays in investment in
energy, misuses our economic potential and democratic rules that should accompany
these big projects.
1
The thermo-energy project. Following the stubborn insistence of the past two governments,
on negative scenarios of building the Power Plant Kosova e re, with the capacity
of 2100 MW, as well as elimination of these scenarios, after the pressure of the
civil society and some of international organizations, this project continues to produce
negative modalities that do not suit Kosovo at all. Almost the same external actors,
with exception of European Union, present us with even more damaging scenarios for
the economy of Kosovo that violate relevant Kosovan, regional and European laws. It
is about the dangerous tendency to establish monopoly in the energy market. What
is going on?
Some international organizations that have been involved since the beginning in assisting
us to better prepare this investment, have, through their transaction advisors,
convinced (read: ordered!) the Government of Kosovo to give (read: give away!) the
PP Kosovo B to the future owner of the PP “Kosova e re”. The Parliament of Kosovo
was obedient and approved the request of the Government that the PP Kosova B be
included in the tendering package as future property of the new owner. For the wellinformed
in economy and energy, this scenario is unbelievable because it causes an
absolute monopoly in our electrical energy market and considerably reduces chances
of receiving appropriate compensation from this investment. It can easily be seen that
this monopoly is punishable by the Kosovo Law on Publicly Owned Enterprises, the
Energy Union Treaty (Article 2b,e, Chapter IV, Article 18, a, b, Annex III, Articles 82
c, and 86, paragraph 2), signed in Athens in 2005, and its observation is rooted in the
7
The Weakest Link of Kosovo’s Democracy
forum 2015