Balkans

Local development and investments in resource extraction rarely go together hand in hand. Bankwatch's Media coordinator David Hoffman reports back on a recent visit to the EBRD sponsored Patos Marinza oil field in Albania. The case provides valuable lessons for the current revision of the EBRD’s safeguard policies.

Pljevlja's 210 MW lignite power plant, operating since 1982 in northern Montenegro, has caused controversy since the beginning of its lifetime. Even back in late '70s Yugoslavia when the project was being planned, residents succeeded in pressing for the chimney to be taller than planned (250 metres instead of 200 metres) in an attempt to ensure that the plant's pollution rose above the hills surrounding Pljevlja and dispersed further away.

While governments in south-east Europe have been talking about building new lignite power plants for years, the only one under construction to date is Energy Financing Team's (EFT) 300 MW Stanari plant in the Republika Srpska entity of Bosnia and Herzegovina. Rather than serving as an inspiration to others in the region, the project is an example of what not to do, as borne out by an official complaint submitted in January by NGOs Center for Environment from Banja Luka and ClientEarth to the Vienna-based Energy Community Treaty secretariat.

Ideas about the construction of a new lignite power plant in Kosovo have existed since the end of the 1980s, and even the current Kosova e Re proposal – scaled down to 600 MW from the original 2100 MW – has been around since 2009. It is being touted by the Kosovo government, the World Bank, USAID and the European Commission among others as the only realistic option to replace the ageing and heavily polluting Kosovo A power plant.

Issue 58 of Bankwatch Mail, published as stakeholders meet in the European Parliament to discuss the future of the 'Energy Community'. Comprising the countries of the western Balkans, Moldova and Ukraine, the Energy Community aims primarily to extend EU internal energy policy to south east Europe and the Black Sea region. Its modus operandi and achievements are now being evaluated at high level, which - as this issue shows - is undoubtedly necessary given the stunning number of highly questionable coal and lignite fired power plants that are proceeding in various Energy Community members.

92 organisations prepared and submitted this joint statement on the opportunities for financing in Macedonia from the EU pre-accession instrument. The assessment was done for all sectors included in the Country Strategy Paper for Macedonia.

The EBRD loan for the Kolubara lignite mine project in Serbia was approved when the forced removal of the local graveyard of the Vreoci community was already initiated and in spite of protests and appeals to the EBRD and in spite of on-going corruption investigations of the company. This case offers important lessons learned for the Environmental and Social Policy of the EBRD with regards to human rights.