Letter: EBRD and EIB should review involvement in Sostanj due to serious shortcomings in the project's management

On April 14 2011 the Minister of Economy of Slovenia, presented a report on the management of the Sostanj TES 6 project to the Government of Slovenia. In the report many shortcomings of the project are highlighted, which led the Government to state that it will only support a state guarantee for the EIB loan amounting to EUR 440 million if the economic efficiency of the project can be improved.

The Minister of Economy also declared that because of findings from the reports she will send them to the Commission for the Prevention of Corruption, the General Police Directorate and the public prosecutor.

In their letters to the European Bank for Reconstruction and Development and the European Investment Bank (available in pdf below), Bankwatch and Focus call on both banks to undertake a thorough review of its involvement in the Sostanj lignite power plant project, in light of the recent developments.

Letter to the EIB (pdf)

Letter to the EBRD (pdf)