Kosovo mulls over Zhur hydropower plant construction

TIRANA, May 23 – A proposed new hydropower plant in the village of Zhur in Kosovo near the Albanian border, which last year sparked debates over the damage it could cause to concessions granted by Albania downstream, has little chance of being implemented. Kosovo’s daily Koha Ditore reported this week that the new Kosovo government has given indications that the future of the Zhur hydropower plant must be reviewed. Gezim Baxhaku, an advisor to Kosovo’s Minister for Economic Development said the power plant project is currently being reviewed and having its feasibility assessed. The limited time of using electricity produced from this hydropower plant and the high cost of electricity produced from it are the main two concerns. According to Baxhaku, Kosovo government officials are continuing necessary consultations with their Albanian counterparts to settle some issues regarding the exploitation of cross border waters. “If additional review confirms the necessity of continuing the project, then we can talk about a concrete deadline,” said the Kosovo advisor. Last September, Kosovo’s plans to build a new hydroelectric power plant in Zhur caused concern in Albania, which has several existing power plants and plans to build more downstream from Kosovo’s planned site. Kosovo authorities said the hydropower plant would not have significant negative effects on the territory of Albania, and that it was part of a study by the World Bank. However, once the project became public, there were negative initial reactions due to a number of issues that could pose potential problems. Former Albanian Energy Minister Dritan Prifti gave indications that the Albanian government couldn’t dismiss the project because doing so could damage 18 concession contracts already issued by Albania. Experts in the border area of Kukes say the Kosovo project will bring a series of legal, social, environmental and financial problems. They say a change in the river flow in Albania would have a harmful effect on the lives of residents in 11 northern municipalities of Kukes, for which the river is a vital economic lifeline in what is otherwise the poorest area of Albania. The 305 MW Kosovo project at Zhur would cost around 300 million Euros but is expected to have anther 150 million Euros in secondary costs, including compensation for displaced people. With such high costs, experts say the investment might not be worth it. The two countries’ governments, which enjoy a close partnership, say there will be appropriate negotiations between experts before the project goes ahead. Government officials said a second option could include having a smaller plant and less generated through free-flowing water– which would then not affect the flow downstream in Albania.