HomeWorld RegionsEuropeSwedpower consortium to assist Kosovo power industry

Swedpower consortium to assist Kosovo power industry

22 April 2002 – A consortium led by SwedPower International, a Vattenfall subsidiary, has just won a major contract to provide “Management and Technical
Assistance” to KEK, the power utility in Kosovo, to help reshape the power industry in Kosovo, which is in much need of support.

The Consortium also comprises German members VEAG (Berlin), LAUBAG, and Veag PowerConsult (Vetschau) – all of them companies in the Vattenfall Group – as well as DECON and MVV Consultants.

The two-year contract worth over €9m was awarded by the European Agency for Reconstruction (EAR) against strong competition from a number of rivals across Europe. The contract was signed over the Easter break and work commenced immediately thereafter. The European Agency for Reconstruction is responsible for the management of the main EU assistance programmes in Kosovo.

The aim is to stabilise power production and distribution in Kosovo and to help local management put the local power company KEK on a sound technical and economic footing for its own future development. The region is served by KEK’s two brown coal-based power plants in Pristina but today their total output of 800 MW is used ineffectively. The main task is to develop management and technical skills and to address technical and non-technical losses by, inter alia, establishing proper billing and payment systems.

The consortium will have a team of ten residents (“secondees”) covering power stations, mining, transmission and distribution, finances, personnel and restructuring, working alongside key KEK management in Pristina supported by a number of short-term experts as may be required.

The consortium brings together vast experience from restructuring of utilities and home energy markets of the participating companies themselves, specific experience from the region, and, in the case of Laubag, experience from operating similar type of mining equipment in Germany.

Both SwedPower and VEAG have been working in Kosovo since the cease-fire and have thorough knowledge from working in Kosovo and also with KEK, the EAR, the international donor community and with UNMIK, the interim government in Kosovo.