ContourGlobal Plc (LON:GLO) and Government of Kosovo jointly announce that a consortium of General Electric companies has been selected as the Preferred Bidder in the tender for the turn-key engineering, procurement and construction and Long-Term Maintenance contracts for ContourGlobal’s Kosova e Re Power Plant Project. As announced in September 2018, four pre-qualified companies were invited to submit their technical and financial proposals. GE and ContourGlobal expect to engage in further negotiations and to reach an agreement on final terms.
Karl Schnadt, Executive Vice-President and Chief Operating Officer of ContourGlobal said: “This marks a key milestone in the development of the Kosova e Re project. We are delighted to move forward with such a world-class company with the commitment and capabilities to build Kosova e Re on time and according to the highest technical, environmental and safety standards. We have been pleased with the rigorous tendering process and the positive response received from the overall market.”
Kosova e Re Power Plant Project
Kosovo’s Minister of Economic Development, Valdrin Lluka said: “The Government of Kosovo is pleased with the strong market interest in the Kosova e Re project. The project reflects the need for additional power plant capacity to meet the long term security of supply concerns in Kosovo. The selection of GE as Preferred Bidder puts Kosovo one step closer to achieving a successful outcome of the process that began long ago with the support of so many international institutions. The Government will participate in the negotiation process with the intent of further improving the terms for the benefit of the Kosovo people. Successful implementation of this project has the potential to reshape the overall economic perspective of the country.”
Background of the Kosovo e Re Power Plant
The project marks a milestone for the economy of the Republic of Kosovo and will represent the biggest foreign direct investment ever made in the country. It will supply much needed affordable and reliable base load to meet Kosovo’s growing electricity demand self-sufficiently, without having to rely on imports, which have amounted to over €500 million in additional costs in the last decade. Using the latest technology and abundant domestic fuel sources, Kosova e Re will be one of the world’s most modern coal fired power plants.
Kosova e Re will be instrumental for increasing people’s quality of life. The new plant will result in significantly improved air quality by reducing the emissions of main polluters and will contribute to the improved health of people living and working in the region. Dust emissions will be reduced by 93%, while SOx and NOx will be reduced by 85% and 93% respectively, with CO2 reduced by 38%.
The new plant will help boost and sustain economic development of Kosovo. By providing long-term security of supply, Kosova e Re will put an end to the €300 million annual losses caused by the current unreliable power supply in Kosovo. This will create an attractive environment for foreign direct investment and sustain growth in the economy. It is estimated that ContourGlobal’s significant investment will increase the mid-term gross domestic product (“GDP”) of the country by at least 2%, spurring domestic and regional growth.
ContourGlobal is listed on the premium segment of the London Stock Exchange (TKR: GLO). ContourGlobal is an international owner and operator of contracted wholesale power generation businesses with approximately 4,312 MW in operation in 18 countries and three continents. ContourGlobal operates a portfolio of 101 thermal and renewable power plants across Europe, Latin America, and Africa utilizing a wide range of technologies.