Extraordinary Meeting on Environmental Investment in SEE 23rd June 2006, Budapest, Hungary

Kosovo/aKosovo/a (territory under UN interim administration)

ChallengesChallenges andand successessuccesses inin relationrelation toto environmentalenvironmental investmentsinvestments Ministry of Environment and Spatial Planning of PriorityPriority EnvironmentalEnvironmental InvestmentInvestment ProjectsProjects submittedsubmitted fromfrom thethe MESPMESP toto thethe RERePREReP 1. Improvement of air quality, in Kosova “A” and “B” thermal power plants 2. Establishment of the national network for permanent air quality monitoring 3. Rehabilitation of ash landfills of the power plants Kosova “A” and “B” -- transport of ashes from the existing landfills to the mining sites Mirash and Bardh 4. Rehabilitation and Closure of Tailing Area in MIP-Trepça 5. Waste water treatment of Pb-Zn Artana Mine-Trepça 6. WWTP in 7. WWTP in Mitrovica 8. WWTP in Peja 9. WWTP in 10. WWTP in Gjakova 11. WWTP in Gjilan 12. WWTP in Ministry of Environment and Spatial Planning of Kosovo ImprovementImprovement ofof airair qualityquality inin KosovaKosova “A”“A” andand “B”“B” powerpower plantsplants o Impacts o Population affected: approx. 700,000; o Old technology; o Inappropriate function of electro filters of thermo power plant Kosovo “A”; o Main pollutants represent a considerable threat to the environment and public health, while causing pollution at the regional level; o Project status: some changes o Tender process is launched for electro filter for power plant Kosovo “A”- unit 4 which will cost 2-4 Mill. Euro; o Revitalisation of electro filter unit B1 is at the final stage. o On-line air emission monitoring system for Kosovo “A” and “B” Power Plant is necessary Ministry of Environment and Spatial Planning of Kosovo Rehabilitation of Ash dumps of the Power Plant (PP) Kosova A and B Within the project of WB for Social and Environment Support for Kosovo’s Lignite Initiative a Clean–up and Land Reclamation Project was developed, where the conducted pre-feasibility study determined the following priorities: o Preparation of Mirash OPM for ash and waste reception o Relocation of Kosovo A ash dump into Mirash OPM (circa 35-40 million m3) o Adoption of ash disposal system of Kosovo A TPP for direct discharge into Mirash OPM o Reshaping and grading of South and West Overburden dumps (circa 9 km2) Ministry of Environment and Spatial Planning of Kosovo Rehabilitation of Ash dumps of the Power Plant (PP) Kosova A and B Project Costs (approximate) o A. Preparation of Mirash OPM 1.10 Mill EURO o B. Relocation of Kosovo A Ash Dump 4.70 Mill EURO o C. Adoption of Kosovo A TPP ash Disposal System 0.65 Mill EUR0

o D. Reshaping and recultivation of overburden dumps 1.67 Mill EURO

o E. Project Management, EIA 0.75 Mill EURO

o TOTAL 8.87 Mill EURO

o Opt. removal of chemicals from chemical sep. facility 3.5 Mill EURO o o Opt. Relocation of Kosovo B Ash Dump post-project o Project – status 5.5 Mill. Euro donated for this project from WB Ministry of Environment and Spatial Planning of Kosovo

Rehabilitation of Ash dumps of the Power Plant (PP) Kosova A and B Impacts o Population affected: approx.700,000 o An area of 165 ha arable land is occupied by ash dumps o The ash dumps are main pollutants of air, soil and ground and surface waters possibly causing pollution at the regional level o Pollution of , causing a regional problem o Pollution of ground water, which is the main source of drinking water in the area o Significant air pollution due to wind spreading the ash many kilometres in all directions o Expected positive environmental effects - This project will fully comply with all relevant EU legislation on the land filling and disposal of waste Ministry of Environment and Spatial Planning of Kosovo

RehabilitationRehabilitation andand closureclosure ofof TailingTailing AreaArea inin MIPMIP -- TrepçaTrepça

o Within the MIP-Trepça is a large industrial waste storage area o The tailing area with hazardous industrial waste is in vicinity the river Sitnica o Waste of gypsum -10.42 ha o Waste of pyrite- 8.59 ha o Waste of zinc electrolyze process, acidic and neutral leaching and Jarosite -16 ha Ministry of Environment and Spatial Planning of Kosovo

TailingTailing AreaArea inin MIPMIP -- TrepçaTrepça

Impacts o Tailing Area with hazardous waste substances contaminates air, water and soil o During the strong winds, contamination is higher from surface of tailing area and causes air pollution in Mitrovica and surrounding area, which affects health of population o Children and pregnant women are especially at risk o Pollution of Sitnica river resulting in a regional problem Expected positive environmental effects Air protection near tailing area and in Mitrovica city as well as land protection and water protection in streams, wells and the river Sitnica. Ministry of Environment and Spatial Planning of Kosovo WasteWaste waterwater treatmenttreatment plantplant ofof LeadLead –– ZnZn ArtanaArtana minemine –– TrepçaTrepça

Impacts o Polluted waste waters – acidic water with toxic metal as Pb, Zn, Cd are discharged without any treatment in river Marec o Around 100,000 habitants are affected o Impact on cross-border pollution o Expected positive environmental effects: -The protection of water in the Marec, in wells and streams from acidity and toxicity of heavy metals - Improvement of health quality - Reduction of cross-border pollution of waters Ministry of Environment and Spatial Planning of Kosovo

STANSTAN TRGTRG ANDAND ARTANAARTANA MINESMINES

o Within Environmental and Security Initiative(EnvSec) in South Eastern the following project was proposed: o Project Title: Feasibility Study for Trepça Complex - Support to Industrial “Hot Spot” Remedation (SHIR) in Kosovo. o Project objectives: Environmental assesment and programme development for Stan Trg and Artana mines. To set the foundation for a larger remediation programme by conducting a comprehensive assessment to determine the impact of mine production and processing on the environment from two mine sites. o This project is partly funded by CIDA/ADA o Project budget: 94,946.45 Euro o Project status: Implementation started in May 2006 and will be finished in December 2006 Ministry of Environment and Spatial Planning of Kosovo RegionalRegional WasteWaste WaterWater TreatmentTreatment PlantsPlants There is a Study on waste water treatment Strategy for Kosovo and WD - MESP is working according to this Strategy Location Population Total cost Mil Euro Project status Comments affected 1.Pristina 760,000 142.1 Strategy for WWTP -No WWTP in for Pristine Kosovo 2. Mitrovica 452,000 104.104 Strategy for WWTP for Mitrrovica -Low river quality

3. Gjilan 204,000 50.314 Study on Strategy for WWT for Gjilan

4. Peja 323,000 68.963 Study on Strategy for WWT for Peja 5. Gjakova 236,500 63.105 Study on Strategy for WWT for Gjakova

6. Ferizaj 143,000 41.965 Study on Strategy for WWT for Ferizaj 7. Prizren 231,000 88.250 Study on Strategy for WWT for Prizren Ministry of Environment and Spatial Planning of Kosovo

Locations, costs and discharge flow of regional wastewater treatment plants and sewerage collectors Ministry of Environment and Spatial Planning of Kosovo RiverRiver dischargedischarge o DriniDrini ii BardhëBardhë --AlbaniaAlbania ,, AdriaticAdriatic seasea == 4,4004,400 (km(km2)) 2 o IbërIbër -- ,Serbia, Danub,Danub, BlBlaackck seasea == 4,7004,700 (km(km2)) o MoravaMorava ee BinçësBinçës,, Serbia,Serbia, Danub,Danub, BlBlaackck seasea == 1,6001,600 (km(km2)) o LepencLepenc,, formerformer YugoslavYugoslav RepublicRepublic ofof Macedonia,Macedonia, AegeanAegean seasea == 800800 (km(km2)) Ministry of Environment and Spatial Planning of Kosovo

Name of the Category of Pollution Recreation International river river potential pressure

Sitnica “Dead river” High Low High

Bistrica Class I and II Not so high High Low

Nerodimka “Dead river” Very high Low High

Morava e Binçës Class IV High Medium Low

Drini i Bardhë Class I Not so high Medium Low

Ibër Class II High Medium Low Ministry of Environment and Spatial Planning of Kosovo

WWTP projects - Positive environmental effects o Healthy environment for the population at the local, national and regional level; o Prevention rather than remediation of negative impacts; o Consideration of environmental impacts in the planning phase; o Rational and sustainable administration of water recourses; o Improved enforcement of environmental legislation; o Protection of ground water quality - 70% of population of these areas are supplied with water from wells as a source of drinking water; o Proper control of pollution and wastewater discharge; o Development of effective cross border cooperation. Ministry of Environment and Spatial Planning of Kosovo MainMain ConstrainsConstrains forfor FinancingFinancing thesethese projectsprojects o Kosovo Budget: KCB is very low 700 Mil Euro (capital investment for MESP in 2006 is 12,640,000 Euro) o Companies are limited with funds for environmental protection o The mechanisms for other financial sources are not properly established o Status of companies is not clear and privatisation process is slow o Donor support-grants, remain the main source of finance. Ministry of Environment and Spatial Planning of Kosovo Challenges,Challenges, successessuccesses andand expectationsexpectations forfor thethe futurefuture o A number of environmental priority projects are included in the Kosovo/a Environmental Action Plan; o A number of environmental priority projects are going to be included into the Kosovo Development Strategy of Kosovo; o Strengthen cooperation between the MESP and MEF and other relevant institutions in environmental sector; o The environmental investment projects are going to be the priorities of Kosovo government, not only MESP; o Finding the driving force for the investments; o Establishment of Eco-fund; o Developing the direct and indirect economic instruments; o Sustainable economic development; o Increasing revenues; o Donor interest; o Combination of grants and loans.