The LPTAP objective will be attained through: (a) developing and strengthening the enabling policy, legal and regulatory frameworks in the energy sector, including mitigating environmental impacts and developing a framework for expropriation and resettlement; (b) developing an institutional structure and capacity to implement the broader sector strategy, including mobilizing financing and dealing with FDI in the energy sector; and (c) technical consultancies to seek qualified strategic investors in the proposed independent power plant (IPP) and mine.
There are four project grant components:
• Component 1: Sector Policy, Legal, Regulatory and Safeguards Advice
• Component 2: Technical Studieso Subcomponent 1- Sector Policy, Legal and Regulatory Advice
o Subcomponent 2- Safeguards Framework
• Component 3: Capacity Buildingo Subcomponent 1- Investment Options Review
o Subcomponent 2- New Power Plant Development and Technical Analysis
o Subcomponent 3- Renewable Energy Options
• Component 4: Transaction Advisor
Component 1 consists of two subcomponents that focus on sector policy, and legal, regulatory and safeguards advice. Specifically, it supports legislation, including any required amendments, to facilitate the proposed transaction through to financial closing by preparing legal and contract documents, legal opinions, etc., and prepares a Strategic Environmental and Social Assessment specific to energy sector development; develop terms of reference for an Environmental Impact Assessment, Social Assessment and the Resettlement Action Plan; prepares an environmental baseline monitoring toolkit and collect field data; outlines the needs for institutional strengthening and capacity building to assess, monitors and regulates the environmental impacts of mining and power generation; and provides training to staff in relevant ministries.
Component 2 supports Mine and Power Plant Analyses, specifically, an investment options review; and second, a new power plant development and technical analysis. This will complement previous studies on mine and power plants and compile adequate information and analysis for bidders; it will also develop a knowledge base for decision makers in Kosovo to economically and efficiently solicit, evaluate, and negotiate proposals for private development of the Sibovc lignite resource. Subcomponent 3 provides technical assistance to help the Ministry of Energy and Mining (MEM) develop policies and strategies to promote renewable energy, cogeneration and energy efficiency in Kosovo.
Component 3 finances capacity building for key ministries and agencies including MEM and Ministry of Environment and Spatial Planning (MESP), for inter-ministerial coordination and for the Project Office, the implementing entity for the Project, and would also assist MEM, MESP and GoK to develop a communications and outreach strategy to improve public consultations.
Component 4 provides technical assistance to support the GoK in carrying out the transaction process to the financial close of the selected investment package.
The Project management structure is comprised of the following managing bodies:
1. The Inter-ministerial Project Steering Committee (PSC)
2. The Project Office (PO) set up under the MEM subordination
