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1 Obiliq, Kosovo March 29, 2012 Mr. Alf Morten Jerve Chairperson Mr. Peter Lallas Executive Secretary Inspection Panel World

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1 Obiliq, Kosovo March 29, 2012 Mr. Alf Morten Jerve Chairperson Mr. Peter Lallas Executive Secretary Inspection Panel World Obiliq, Kosovo March 29, 2012 Mr. Alf Morten Jerve Chairperson Mr. Peter Lallas Executive Secretary Inspection Panel World Bank 1818 H Street NW Washington DC, 20433 USA Complaint addressed to the World Bank Inspection Panel regarding the Kosovo Power Project Dear Alf Morten Jerve and Peter Lallas, We are writing to ask that the Inspection Panel investigate two World Bank projects: Kosovo Power Technical Assistance Project (LPTAP no. P097635) and Kosovo Power Project (KPP no. P118287). This complaint is signed by the representatives of the following villages: Darshishtë, Lajthishte/Sibofc, Cerna Vodica and Hade of Obiliq, and the town of Obiliq. The complaint is also filed by the KEK Independent Union – SPEK, signed by Izet Mustafa on its behalf. The complaint is also supported and filed by the Kosovo Civil Society, respectively Krenar Gashi on behalf of the Institute for Policy Development, Agron Demi from the Institute for Advanced Studies and Mexhide Spahija from the Forum for Civic Initiative. We are concerned about the very serious social, economical and environmental impacts related to KPP and LPTAP. We have already felt the impacts of these projects and are worried about what will happen after KPP has been built. We have raised these issues with the responsible WB staff,1 but were not satisfied by the response that we received. With regards to both abovementioned projects, we believe that the following WB Policies have been violated: OP 4.01 – Environmental assessment; OP 4.12 – Involuntary displacement OP 10.04 – Economic evaluation OMS 2.20 – Project evaluation 1 Community letter sent on 5th of March 2012; Regular communication of the civil society, respectively Nezir Sinani and his colleagues addressed to the World Bank; 1 Project summary Power Technical Assistance Project – LPTAP This project span was 2006 until present day, as far as we understand, and was implemented as preparation for the Kosovo Power Project – KPP. During implementation, the project has produced some important documents on KPP. Such documents include Strategic Environmental and Social Assessment in 2008 and framework policy on displacement in 2011. Another economic assessment of the project was performed by the World Bank, as a part of the project although it is unclear if it was implemented as a project component. During the implementation of the project, we faced increasing social, economic and environmental problems, since displacement of population continued from the certain area of the Kosovo Power Project (KPP), while due environmental protection measures were not taken. Kosovo Power Project – KPP World Bank has made it official to the Kosovo Government that it will consider a partial guarantee for the risk from construction of the new lignite-based power plant. The same project provides for expanding the current mining throughout Obiliq villages. Many of our neighbours have been displaced and we do not know how many more will be moved; it will not result in reducing power price for the affected inhabitants and shall negatively impact many aspects of social-economic and environmental life, as described hereunder. Social, economic and environmental problems Environmental pollution KPP is foreseen to be implemented in Obiliq, an area where ‘Kosova A’ and ‘Kosova B’ power plants already operate. Use of lignite for the needs of both existing power plants and technological treatment in this area turned Obiliq and surrounding villages into the most polluted area in Europe2. Pollution is comprehensive and also affected agricultural land, surface and ground waters, and air. This area is only 7 km from the Kosovo’s capital, Prishtina. Consequences of burning coal for power generation, directly affects our lives and those of the other 500.000 inhabitants of the capital. Increasing quantity of lignite burned for power generation through power plant “New Kosovo” will make things worse for the inhabitants of Obiliq and surrounding villages, as well as people living in Prishtina. We are facing health issues as a result of releasing various pollutants to the environment, resulting from coal combustion. Release of smoke, sulphide dioxide, iron, zinc, mercury and other pollutants, has direct impact on increasing incidence of cardio-vascular and neural diseases among our communities. Our children are especially vulnerable and their cognitive abilities will be affected from 2 http://www- wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/07/16/000333038_20080716012909/Rendered/PDF/E13670VOL 130Box327408B.pdf [SESA] 2 the release of mercury and iron to the environment, while release of hydrogen chloride will affect their lungs. The greatest impact comes as a result of water pollution. Water is polluted from the discharge of lignite ashes, airborne ash and other pollutants from the lignite discharge. Since 60% of the communities living in the polluted area are farmers, our flocks of animals are also affected by pollution, since they use the river and ground waters for their animals. Thus pollution affects the human health as a result of using domestic animal products. Water shortage KPP provides that current supply of power plants in Obiliq and supply to the new power plant is done using the Iber Lepenc canal, which supplies water from Iber Lake in the north of Kosovo. The same canal is used for irrigation of agricultural land in three municipalities of Kosovo: Obiliq, Vushtrri and Mitrovica. The same canal supplies water to the Badovc Lake, which supplies Prishtina with potable water. Prishtina and its suburbs constantly face potable water shortage. Increasing use of water from this canal as a result of increasing the generating capacity will necessarily result in water cuts for Prishtina. This may also leave agricultural land with no water resources for irrigation. We need water for our homes and our farms. But if the new plant is built there will be no water for us to use. Economic impact Around 70% of the Obiliq territory since 7 years has been declared a zone of national interest. This is because the area shall be used for lignite mining for the needs of power generation in the country. Upon declaration of the interest zone, local inhabitants of the zone did not enjoy the right of developing their households, and they were not allowed to develop new households in order to advance the social-economical situation of their families. Meanwhile when we were deprived of this right, we were not included in any special project for displacement, in an area where they would exercise such rights. This applies to Hade, Dardhishte and Lajthishte villages of Obiliq. During the deprivation of this right, we have not received any benefits, just like we did not enjoy any compensation for pollution of the water, air and land. We have enjoyed such a right during 70’ and 80’, but not since 90’. Moreover, we are subject to systematic power cuts and we were never spared by this corporation. This increases the risk of accidents for the population who live in the “backyard” of power plants and existing mines. Displacement of population Since the LPTAP initial implementation stage, KEK started expropriation of Hade inhabitants for KPP. The displacement started without developing any plan of activities for displacement of inhabitants and with no national displacement policy that would be in line with World Bank displacement policies. Thus the displacement was conducted in contradiction with such policy and resulted in unfair and low displacement compensation paid to inhabitants of such villages. 3 In order to open a new lignite mining field and start construction of the new power plant, the inhabitants living in the same villages should be displaced in order to make way for the KPP. National displacement policies provide that us and our neighbours in Obiliq shall be displaced within the territory of Obiliq. Knowing that around 70% of the Obiliq’s territory is of national interest, it means that the displacement shall be done in the remaining part of the territory. This no doubt creates a serious problem to the displacement process, because it hinders the proper displacement required by World Bank displacement policies. Displacement should be performed in line with these policies, while displacement of the population in the future shall no doubt require revision of current displacement policies and each criterion in this regard should be met. Absence of transparency and consultations Since the engagement of the World Bank in power projects in the country, Obiliq community, Union of KEK Workers and civil society have been excluded from the decision-making processes. Requests of the civil society for access to official documents, which is provided by the national legislation, have been constantly turned down by the Ministry of Economic Development, project leading agency, and also by the World Bank almost in all cases. Thus absence of authentic information and absence of access to official documents has deprived us the right to get involved in these projects. This is in contradiction with the World Bank policies on the right of information and data disclosure. Through the present complaint, we would like to refer once again to all requests filed to the World Bank and the Ministry of Economic Development, for access to information regarding LPTAP and KPP. Such requests were submitted mainly by Mr. Nezir Sinani on behalf of civil society, and the community of Obiliq and surrounding villages. Impact on employment Opening of new lignite mining area and construction of ‘New Kosovo’ power plant shall be accompanied with permanent decommissioning of “Kosova A” power plant in 2017 and revitalization of “Kosova B” power plant. This will be accompanied with privatization of supply and distribution grid. Combination of these projects will result in dismissing hundreds of current workers of the Energy Corporation. World Bank and the Kosovo Government have never consulted the Union of KEK Workers about the problem, and did not take any other activity to handle the problem.
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