Preafisibility SHP 2006

Ministry of Energy and Mining Kosovo
___________________________________________________________

Prepared by: Albanian Association of Energy and Environment for Sustainable Development 1

Institutional Capacity Building in the Energy Sector

Project Funded by DANIDA

Final Raport

PREAFISIBILI TY STUDY FOR IDENTI FI CATION OF WATER
RESOURCES AND THEIR UTILISATION THROUGH SMALL
HYDRO POWER PLANT ON KOSOVO

Submitted to:

Ministry of Energy and Mining
Prishtina, Kosova

Submitted by:

Albanian Association of Energy and Environment for Sustainable Development
(AAEESD)

May 22, 2006
___________________________________________________________


Content
1. Introduction ............................................................................................................ 6
1.1.1 Urban Wastes Energy Reserves .................................................................. 6
1.2 Energy Reserves almost inexhaustible ................................................................ 7
1.2.1 Geothermal Sources of Energy ................................................................... 7
1.3 Renewable sources of energy ............................................................................ 7
1.3.1 Energy Reserves from bio-mass (including fire-woods) ...................................... 7
1.3.2 Hydro-energetic reserves ........................................................................... 7
3. Policy regarding the Renewable Energy Sources and Securing of Open Access in the
Transmission and Distribution networks ............................................................................ 9
3.1 Requirements for establishment of favorable legal environment for the development
of private HPP or IPP ................................................................................................... 9
3.2 Encouraging the absorption of investments through the electricity price structure .... 10
3.3 Some main points which should be included on the concessionare law reharding SHPP
................................................................................................................................ 11
3.3.1 What should be contain in the proposal of willingness of interest for Power
Generation Facility ................................................................................................. 11
3.3.2 Project idea supervisor and the approval in order to put it in fair competition
11
3.3.3 Competition Execution ............................................................................ 11
4. Methodology of study evaluation for Small Hydro Potential .......................... 13
4.1 Riconicion Study (identification of potential places) ................................................ 13
4.2 Hydro-energetic potential ..................................................................................... 13
4.3 Preliminary study of financial benefits ................................................................... 13
4.4 Preliminary Investigations (surveys) ...................................................................... 16
4.5 Recognition Study of the most important areas. ..................................................... 17
4.7 Objectives of the Study for the Assessment of Kosovo Hydro-energetic Potential 36
4.7.1 General Objectives ........................................................................................ 36
4.7.2 Immediate objectives .................................................................................... 36
5. Identification and evaluation of the Technical potential of profitability of small HPP in
Kosovo ......................................................................................................................... 37
6. Gathering of data on hydrology, geology, evaluation of HPP capacity and the evaluation
of initial cost of construction and machineries ................................................................. 47
6.1 Topographic maps ............................................................................................... 48
6.2 Other meteorological and hydrological data ........................................................... 49
6.3 Other data regarding the flows of the water .......................................................... 50
6.3.1 Lumbardhi of Peja River ............................................................................... 52
6.3.1.1 Kuqishta SHPP ................................................................................. 52
6.3.1.2 Drelajt SHPP ................................................................................... 52
6.3.1.3 Shtupeqi SHPP ................................................................................. 53
6.3.2 Deani SHPP ................................................................................................. 55
6.3.2.1 Bellaj SHPP ................................................................................... 55
6.3.2.2 Deani SHPP .................................................................................... 56
6.3.3 Lumbardhi of Lloani River ..................................................................... 57
6.3.3.1 Lloani SHPP ................................................................................... 57
6.3.4 Ereniku River .......................................................................................... 58
6.3.4.1 Erenik-Mal River .............................................................................. 58
6.3.4.2 Erenik SHPP ..................................................................................... 59
6.3.4.3 Jasiqi SHPP ...................................................................................... 60
6.3.5 Plava River ....................................................................................... 61
6.3.5.1 Dragashi SHPP ................................................................................. 61
6.3.5.2 Orusha SHPP .................................................................................. 62
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6.3.6 Lumbardhi of Prizreni River ................................................................... 63
6.3.6.1 Reani SHPP ................................................................................... 63
6.3.7 Lumi of Lepenci SHPP .................................................................................... 65
6.3.7.1 Shterpca (Brezovica) SHPP ............................................................... 65
6.3.7.2 Lepenci SHPP ................................................................................... 65
6.3.8 Bajska SHPP .................................................................................................. 67
6.3.8.1 Bajska SHPP .................................................................................... 67
6.3.9 Bistrica River ........................................................................................... 68
6.3.9.1 Batare SHPP .................................................................................... 68
6.3.10 Bistrica SHPP ....................................................................................... 69
6.3.10.1 Batare SHPP ................................................................................... 69
6.3.11 Kaandolli River ...................................................................................... 70
6.3.11.1 Majanci SHPP ....................................................................................... 70
6.3.12 Drini i Bardh River ................................................................................. 71
6.3.12.1 Mirusha (Kpuzit) SHPP .......................................................................... 71
6.4 Engineering geology data ..................................................................................... 74
6.4.1 Lumbardhi of Peja River ............................................................................... 76
6.4.1.1 Kuqishta Hydro Power Plant .............................................................. 76
6.4.1.2 Drelajt SHPP ................................................................................... 77
6.4.1.3 Shtupeqi SHPP ................................................................................. 79
6.4.2 Lumbardhi of Deani River ........................................................................... 79
6.4.2.1 Bellesa SHPP................................................................................... 79
6.4.2.2 Deani SHPP ................................................................................... 80
6.4.3 Lumbardhi of Lloani River ..................................................................... 81
6.4.3.1 Lloani SHPP ................................................................................... 81
6.4.4 Ereniku River .......................................................................................... 82
6.4.4.1 Erenik-Mal SHPP ............................................................................. 82
6.4.4.2 Erenik SHPP ..................................................................................... 84
6.4.4.3 Jasiqi SHPP ...................................................................................... 84
Geological formations ................................................................................................ 84
6.4.5 Plava River ............................................................................................. 85
6.4.5.1 Dragashi SHPP ................................................................................. 85
Geological formations .................................................................................................... 85
Engineering geology conditions ...................................................................................... 85
6.4.5.2 Orusha SHPP .................................................................................. 86
Geological formations .................................................................................................... 86
-Ordovician- Devonian low metamorphised pelite-psammite formations with rare quartzite
intercalations ................................................................................................................ 86
Engineering geology conditions ...................................................................................... 87
6.4.6 Lumbardhi of Prizreni River ................................................................... 87
6.4.6.1 Reani SHPP ................................................................................... 87
Geological formations ................................................................................................ 87
6.4.7 Lepnci River ................................................................................................ 87
6.4.7.1 Shterpcs (Brezovics) SHPP ............................................................ 87
6.4.7.2 Lepenci SHPP ................................................................................... 88
6. 4. 8 Dardana River .................................................................................. 89
6.4.8.1 Kamenics (Dardans) SHPP ............................................................. 89
6. 4. 9 Bajska River ........................................................................................ 90
6.4.9.1 Bajska SHPP .................................................................................... 90
6. 4. 10 Bistrica River ....................................................................................... 90
6. 4. 10.1 Batare SHPP ................................................................................. 90
6. 4. 11 Kaandolli River .................................................................................. 90
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6. 4. 11.1 Majanci SHPP ............................................................................... 90
6. 4. 12 Drini i Bardh River .............................................................................. 90
6. 4. 12.1 Mirusha SHPP .............................................................................. 90
6.5 Physical-Mechanical proprieties of the formations ............................................. 91
6.5.1 Volume weight () ......................................................................................... 92
6.5.2 Porosity (P) ............................................................................................. 92
6.5.3 Water absorption ..................................................................................... 92
6.5.4 Compression strength (stability) (Rsh) ...................................................... 93
6.5.5 Strength (F) ............................................................................................ 93
6.5.6 General deformation module (Ed) ............................................................. 93
6.5.7 Internal friction angle () ......................................................................... 93
6.5.8 Allowed load () ..................................................................................... 93
6.6 SEISMICITY ................................................................................................. 93
7.1 The Assessment of Preliminary Environmental Impact .............................................. 94
7.2 The effect in the environment from the use of waters for the generation of
electricity .................................................................................................................. 95
7.3 HPP construction plan and its implementation schedule .................................... 96
7.3.1 Timing schedule for the project preparation (First phase) ................................ 96
7.3.2 HPP Timing schedule for construction/rehabilitation ................................... 98
7.4 Possible effects in the environment during the HPP construction, rehabilitation or
empowering phase .................................................................................................... 99
7.4.1 Effects on the environment during the construction of the road to be used for
the construction of the derivation channel, turbines pipes, central building and the
electric line for the connection of the HPP with the respective substation .................. 99
7.4.2 Impact on the environment during the preparation of the Central buildings
site 99
7.4.3 Impact on the environment as a result of the collection of materials to be
moved from the sites where the centrals will be built ............................................... 99
7.4.4 Impact on the environment as a result of bringing the materials to the
construction site .................................................................................................... 99
7.4.5 Impact on employment as a result of HPP construction .............................. 99
7.4.6 Impact on the environment of dangerous materials to be used during the
construction of the HPP ......................................................................................... 100
7.5 Possible impacts to environment during HPP operating phase ........................... 100
7.5.1 Endogen flows and their risk ................................................................... 100
7.5.2 Reduction of gases that produce the greenhouse effect ............................ 101
7.5.3 Reduction of acid rain gases .................................................................. 106
7.6 Possible impacts from the HPP to be constructed or rehabilitated on the
environment and proposed measures for preventing and softening them ..................... 108
8. Carry out preliminary economical and financial analyses for all new/existing SHPPs .. 110
8.1 Preliminary economical analysis for each new Small HPP to be
constructed/rehabilitated .......................................................................................... 111
8.1.1 Methodological considerations regarding the preliminary economical analysis
for each Small Hydro Power Plant to be constructed/rehabilitated ............................ 111
8.1.2 Value of not supplied power unit in the Kosovo power market ................... 111
8.1.3 Comparison of different power generation alternatives for new small HPP to
be constructed/rehabilitated .................................................................................. 112
8.1.4 Technical losses and problems regarding the fall of voltage for each new small
HPP to be constructed/rehabilitated ....................................................................... 112
8.1.5 Economic costs for each new Small Hydro Power Plant to be
constructed/rehabilitated and their ranking upon this parameter .............................. 113
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8.2 Preliminary financial analysis of cost-benefits for each HPP, new or existing to be
rehabilitated/empowered .......................................................................................... 120
8.3 HEC-i i vogl i Dikancit ................................................................................... 128
8.4 HEC-i i vogl i Radavcit .................................................................................. 129
8.5 Burimi (Istog) SHPP ....................................................................................... 131
8.6 Prizreni SHPP ................................................................................................ 132
8.7 Shtime SHPP ................................................................................................. 134
8.8 Evaluation of initial investment for every SHPP new or existing to be
8.9 Operation & Maintenance costs for each HPP new, or existing to be
8.9 Financial methods for the realization of financial benefit analysis ..................... 137
8.10 The financial indicator for which the new or existing to be
rehabilitated/empowered HPP ................................................................................... 137
8.10.1 Analysis of financial sensitivity versus the main parameters for each new or
existing hydro power plant to be rehabilitated/empowered ...................................... 138
8.10.1.1 NPV, IRR, LDC and PBP versus the interest rate for all the new HPP and
those to be rehabilitated/empowered ................................................................. 138
8.10.1.2 NPV, IRR, LDC and PBP, versus the value of electricity produced ............ 139
8.10.1.3 NPV, IRR, LDC and PBP, versus the electricity price ................................ 139
8.10.1.4 NPV, IRR, LDC and PBP, versus the initial investment ............................. 140
8.10.1.5 NPV, IRR, LDC and PBP versus the HPP longevity .................................. 141
8.11 Preliminary Bussiness Plan for each new or rehabilitated SHPP ......................... 141
9. Preparation of a database for the most feasible areas for the construction/rehabilitation
of small HPP from private investors. .............................................................................. 147
10. Preparation of SHPP Concepts for their Construction/Rehabilitation Promotion to
Private Investors .......................................................................................................... 151
11. Support Program for SHPP, including fiscal and regulatory incentives, and financial
support mechanisms .................................................................................................... 154
11.1 Development of a SHPP Support Strategy ....................................................... 154
11.2 Comprehensive rehabilitation of power plants .................................................. 154
11.3 Establishment of a Supporting Fund regarding the Promotion of Renewable
Resources ................................................................................................................ 155
11.4 Design, Institutional Set-up and Operation of Renewable Energy Fund (RE Fund)
156
11.5 Institutional Set-up ........................................................................................ 157
11.5.2 Agent Bank ............................................................................................ 158
11.5.3 Bord of Trusties ..................................................................................... 158

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1. Introduction
There are different classifications for the primary energy sources in the literature,
but the best ones in terms of our understanding are the following classifications:
1. Non renewable sources are those sources that are exhaustible in
historical terms: some of them are organic fuels: coal, oil, gas, lignite, energy
taken from burning of urban wastes and nuclear energy coming from the
radioactivity interaction. Non renewable sources of energy have given and
shall give an important contribution for the fulfillment of every countrys need
for energy.
2. Sources almost inexhaustible are all those sources that human beings
use for their needs which are inexhaustible in the historical perspective.
Included here are: geothermal energy and the energy coming from the
reaction of thermo nuclear synthesis.
3. Renewable sources are considered those sources that continuously come
at the earth surface from the universe, practically all those coming from the
sun (a small percentage of marine tides). Renewable energy sources include:
hydro energy, solar energy, wind energy, biomass energy, energy of sea
waves and the energy of high-tide and low-tide.
4. Virtual energy source - include energy conservation.

A short description of the positive and negative side of energy sources to be used,
presenting the technical, economical point of view and at the same time the
minimumal environmental pollution, shall follow.
1.1.1 Urban Wastes Energy Reserves
To fulfill the vital, cultural, hygienic, etc. needs, human beings consume different
kinds of foods (which of course are kept in a covering that can be of paper,
pasteboard, glass, metal, plastics etc), clothes, paper etc. The problem of urban
solid wastes in the cities and communes is a common problem for the developed
countries and countries in the development path, their quantity in each country
continuously increases with the growth of the population. Currently, the saving of
raw materials through returning capacities and recycling as much as possible is very
important. The potentiality of solid wastes as fuel is given in the first row through
their components, calorific power, humidity component and not burning mass. Thats
why the knowledge of urban wastes is very important as it is the first step for
determining the implants for their treatment and is the basic data for the calculation
of calorific power. Solid wastes are composed by portions of many components (also
in it for comparison even the calorific power of the fuels are given) and should be
stressed that their calorific power increases with the increase in the standard of
living, as for the increase of paper and plastics. Hospital solid wastes have a typical
value of calorific power that is bigger than 19 [MJ/kg], a value that is bigger than
those of city solid wastes (10.6-11) [MJ/kg]), as in the hospital wastes the humidity
component is lower.

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1.2 Energy Reserves almost inexhaustible
1.2.1 Geothermal Sources of Energy
There is a wide variety of geothermic sources, which could be grouped into: hydro-
thermo sources, dry hot stones and melted stones. From these three groups, the
practical uses, up to now we have found only the hydro-thermo sources, can be
divided into: hydro-thermo sources from which dry steam can be produced; hydro-
thermo sources from which wet steam can be produced (the temperature of these
two sources is >150
0
C) and hydro-thermo sources from which hot water can be
produced, that in some places can be used for the direct heating of buildings.
1.3 Renewable sources of energy
For these reasons the interest of renewable sources of energy is increasing day by
day all over the world: oil, natural gas and coal are all limited reserves, fuel reserves
(especially oil) are concentrated (almost 75%) in the area of the Middle East, in a
highly unstable area and the constant increasing of environmental pollution currently
has a great impact.
1.3.1 Energy Reserves from bio-mass (including fire-woods)
Bio-mass energy is the energy gathered by different processes of organic materials
(mainly burning). This source is of different forms and could be grouped into four
main categories: wood and wood-wastes from different processings in the wood
industry; vegetal wastes (pedicle, seed etc) after the end of their cycle, which can
not be used anymore in any branch of the economy; energetic plants (woods) that
are imbedded to be burned as biomass, after reaching their maturity and the animal
wastes (manure, bones, leather), which can not be used anymore in any branch of
economy.

The estimations of agricultural wastes are based on the average report for each
main agricultural area, between the waste and the product for a unit of production.
The reports change widely from one area to the other and indirectly are connected
with the production quantity and other agriculture conditions. The production of
animal wastes is estimated based on the animals inventory and the daily average
manure production. As for agricultural waste there are no precise calculations in
Kosovo.
1.3.2 Hydro-energetic reserves
Kosovo is characterized by rivers and torrents with hydrologic potential to be taken
into account for the production of electricity. The western part of Kosovo has the
hydro-energetic potential of Drini Bardh, which includes more than half of the
Kosovo hydro-energetic potentiality. The useful hydro-energetic potentiality of
Kosovo is 0.7 TWh/year. The biggest HPP that could be constructed in Kosovo is that
one of Zhurri, in the stream of Drini Bardh, with a potential of 0.377 TWh/year. The
streams of Drini Bardh, Ibri, Morav, Lepenc, Llap, are characterized by an important
potentiality for the production of electricity. In table 2, based on the Doctorate Work
of Prof. Dr. Sabri Limari, the hydro-energetic potentiality of these rivers is given.

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Table 1.: Hydro potential evaluated by different publications
River Hydro potential possibe to
be utilised technically
Hydro potential economical feasible
Nr. GWh/year GWh/year
1 Drini i Bardh River 554.00 554.00
2 Ibri River 103.27 102.17
3 Morava e Bins River 8.75 8.75
4 Lepenc River 23.80 16.53
Total 689.64 681.27

Electro-energy produced from hydro is renewable and during its production there is
no emission of gas, as in the case of energy produced from the burning of fuel. The
benefits from using the hydro-energy resources are determined from the geological
and topological conditions for building the dike and especially from the topographic
conditions to lower the inundation of land, from the high initial investments and the
possibility of regulating the stream at a high scale through the accumulation
reservoir. HPP now are constructed with very advanced technology and developed
all over the world. However the use of hydro-energy for the production of electricity
brings many economical, social and environmental problems. The theoretical
potentiality of hydro-energy decreases sensibly if we consider all the problems rising
with their construction; where, in the first place, the huge initial investments stand.
-3
0
3
6
9
12
15
18
21
24
27
30
33
36
39
42
45
48
51
54
57
60
P J
Net Import
Produced

0
4
8
12
16
20
24
28
32
36
40
44
48
52
56
60
64
68
72
76
80
84
Total Energy in PJ - 2003
Solar
Hydro and el. imported
Fuel wood
Oil and derivatives
Natural gas
Lignit
Total Energy in PJ - 2003
Lignit
65.88%
Natural
gas
0.00%
Oil and
derivativ
es
25.07%
Solar
0.04% Fuel
wood
8.46%
Hydro
and el.
importe
d
0.54%
Figure 1.: Primary Energy
Source of Kosova for the
year 2003 (PJ )
Figure 2.: Total Primary
Energy Source of (year 2003
- PJ )
Figure 3.: Share of Primary
Energy Source (year 2003 -
PJ )

The analysis shows that from 82.3356 PJ, that of the total supply of primary energy
sources only 9.05 % are renewable sources. The main contribution in this direction
comes from the fire-wood 8.46%, second is hydro-energy 0.54 % and solar energy
with only 0.04 %. This percentage is very small and it will require a lot amount of
work to become a contribution in the years to come, as it is stressed even in the
Energy Strategy one of the most important sources to be used at the beginning is
the hydro-energy potentiality.
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3. Policy regarding the Renewable Energy Sources and Securing
of Open Access in the Transmission and Distribution networks
In Kosovo, as already mentioned in this study, there are hydro-energy resources
economically feasible for the production of electricity from Small Hydro Power Plants,
which are the objective of our study. Up to now only the Koznjer HPP, in the area
of Decan, is given under concession. Meanwhile there are signs of interests from the
private sector for investments in the small power plants for the production of
electricity. The Koznjer HPP practice, with some improvement, can be used even in
the case of the HPP at Burim (Istog), Dikanc e Radavc, as well as the reconstruction
of the HPP in Prizren and Shtime.

Private investments can be of different kinds. They might include even the
construction of new independent power resources as well as the use of existing
objects through privatization by increasing their generation capacity and efficacy.
The generation from these IPP (Independent power producers) could be
taken/bought from Kosovo Electricity Corporation (KEK) (and latter on from the
wholesale sellers after the establishment of the free functional power market. Here
we should stress that in the first steps this role shall be played from the distribution
company in the respective region) in the frame of power purchase long term
contracts.

In order to establish a more competitive environment for the participation of local
and foreign private sector in power generation, including here the construction of
small HPP, necessary steps need to be taken, which shall increase trust and interest
of private sector to invest in this vital sector for the economy of Kosovo.
3.1 Requirements for establishment of favorable legal environment for
the development of private HPP or IPP
Private investment in HPP face constrains coming from:
(i) nature of these projects that is closely connected with the area/site of their
construction,
(ii) constructing danger, in some case, because of heavy terrains and long
construction timing,
(iii) need for considerable capital investments for power unit, and their high
percentage, as local costs (construction) in comparison with the TPP,
(iv) forecasted productivity depends on river flows and other constrains regarding
the water management,
(v) problems regarding land propriety on the site where the channel, under pressure
basin and the centrals building will be constructed,
(v) complexity of concession process to achieve the transparency for the generation
price, and
(vi) environment sensibilities (considerations).

The international experience suggests that necessary are:
(i) longer term financings to be adapted with the characteristics of hydro-generation,
___________________________________________________________

(ii) regulatory frame and realistic agreements to share the risk between the state
and the private sector, which will cover the requirements of hydro-generation
projects, and
(iii) careful preparation of projects from the public sector to make possible the
formulation of a suitable technical and contractual base for their development as
private concessions.
The agreements for the development of the Hydro IPP have sensible differenties
from the ones used for the thermo-generation projects. The financing way of these
projects/objects is the first distinct characteristic. This, because the construction cost
of hydro-generation projects is subject of:
(i) great insecurity, and in the meantime
(ii) the cost for the construction of the object without including the machineries
(turbines, transformers etc) covers a bigger part than that of thermo-generation
objects (about 60% of the cost for hydro-generation projects goes for the
construction of the object meanwhile for the construction of thermo-generation
objects this cost is only 40%).

Under these conditions, the private investors on hydro-generation tend to show
special attention to some specific factors that could be included in:
existence and possibility of gathering the information relative to the specifics of
place where is situated or will be constructed the hydro-generation object, like those
regarding the flows or fall of the river in question;
possibility/facility in taking/securing the right for the use of land, water and the
right to transmit/transport the generated power into the national/regional electricity
distribution grid;
the need to repair the connection of the IPP with the distribution network through
securing of free access for the distribution of power; and
efficiency of hydro-generation in comparison with other alternatives.
3.2 Encouraging the absorption of investments through the electricity
price structure
The price structure with which KEK (or the future distribution company after the
unbundling) will purchase electricity from the private producers is the key that solve
the need of private investors for liquidities (cash money). With these liquidities they
can pay to the bank the loan taken for the construction of HPP and repay all the
investment. Meanwhile, this structure shall be so that it should satisfy the needs of
KEK for the quantity and quality of electricity as it would be agreed between the
parties in the respective power purchase agreement. This agreement is known as
PPA (Power Purchase Agreement).

___________________________________________________________

3.3 Some main points which should be included on the
concessionare law reharding SHPP
3.3.1 What should be contain in the proposal of willingness of interest for
Power Generation Facility
On the proposal for expression of the interest for the construction of SHPPs should
be included those studies and documents:
A request directed to the responsible authority expressing the interest
regarding the construction of a new SHPP. The request should be addressed
to: to the the Ministry responsible for the energy.
Preliminary hydrological study,
Preliminary geological study,
Preliminary technical study regarding the most significant parameters of the
project,
Preliminary power network connection study
Preliminary environmental impact assessment
3.3.2 Project idea supervisor and the approval in order to put it in fair
competition
Control and approval of the project idea will be done by Ministry responsible for
energy and in the State Authority Committe, which will be established, should be
included and Concessionare Directorate (Ministry of Finance), Ministry responsable
for water managment, Ministry of Environment and Spatial Planning, Ministry of
Agriculture and Respective Authority of Water Basin where the SHPP is going to be
built.
Koha e kryerjes s kontrollit 2-4 muaj (n funksion t fuqis s centralit).
Time frame for the project idea will be 2-4 months (in the function of the capacity of
the SHPP).

Approval of project idea by the responsible authority and notification of the applicant
within the above mentioned month.

Preparation of the competition documents should be made by the local authority
within 1 month from the day of the approval of the project idea.

3.3.3 Competition Execution
The subject that has express the interest has some points in advantage compared to
the other competitors.

The notification of all interested legal entities will be made through the respective
communication channels, for the respective competition, for the respective
generation capacity based on the respective project idea. The competition shall be
announced within two weeks from the time of the preparation of the documentation.

The announcement package will include these materials:
Preliminary hydrological study
___________________________________________________________

Preliminary geological study
Preliminary technical study regarding the most significant parameters of the
project
Preliminary electrical network connection study
Preliminary environmental impact assessment

The time frame for the interested to prepare the technical and financial project
proposals:
For the generation capacities than 1 MW will be 4 months.
For the generation capacities than 1 MW or smaller than or equal to 5 MW
will be 8 months.
For the generation capacities greater than 5 MW will be 12 months.

The technical and financial project proposal shall include:
Complete hydrological study
Complete geological study
Complete technical study regarding the most important parameters of the
project
Complete electrical network connection study
Business plan for the erection of the power plant
Complete environmental impact assessment
Legal documentation of the company
Demonstration of the financial capability of the company to build the power
plant
Letter of interest by a bank or group of banks to provide a loan for the
erection of the power plant
Time frame for the completion of the works and the beginning of power
generation.

Based on technical and financial project proposals are all conditions in order to claim
the winner selection. The selection is based on the multicriterea analyses. The first
applicant as it is mentioned and point out, above, has some more advantage points
versus other applicants.

Some of basis criteria concerning to the multicriteria are:
Long term generation cost of the power facilities,
Long term contract requirement for the power purchase, if it is to be asked
for the contract; is available a minimum points, if not asking for long term
contract will be available a maximum points regarding to this element (reason
of the amount of the electricity produced used for self consumption in the
position of eligible consumer or having a long term contract for buying-selling
with eligible big consumer),
Size of the investment,
Power and electricity produced,
Number of the employment in the power plant,
Agricultural land used for the power plant construction,
Clear management plan for the environmental protection and proposal ways
for the mitigation of possible environmental impact,
___________________________________________________________

Disposal collateral used for the bank loan guaranty ,
Initial negotiations with different banks for the lending.

4. Methodology of study evaluation for Small Hydro Potential
The consultant (SH.SH.E.M.ZH.Q.) followed the Frame of the Evaluation Process for
the Potentiality and Promotion of the Rehabilitation/Development of Small HPP in
Kosovo as it is shown in figure 5. The first part of this frame is mainly focused on
the actual project.
4.1 Riconicion Study (identification of potential places)
In order to estimate the potentiality the consultant undertook a scout study
(identification of potential places). The knowledge of the terrain was the first step
for which the topographic maps of the scale 1:25,000 up to 1:50,000 were used.
Based on the maps taken from MEM, it was possible first to work with them in order
to choose potential locations. During a 10 day period, March 2006 and 6 day period,
April 2006, it was possible to visit all the potential places with the support of MEM.
The potential places were studied and evaluated depending on these factors,
including (but not limited to): hydro capacity based on the river flows and dropping;
hydrology; meteorology; geology; required investments; demand and supply with
electricity; environmental issues.
4.2 Hydro-energetic potential
The hydro-energetic potential is the quantity of potential energy that exists in every
river or part of the river. The study of potential hydro-energy was realized by
investigating the most valuable potentials, based on the initial analysis of respective
maps. The study was realized focusing on:
The maximization of the availability of the river dropping, where possible,
taking into consideration the existing technology and other economical
development factors.
The choosing of a method for the generation of electricity, which is suitable
for the country conditions and could be determined from the river topography
and the average flows, and
The optimal positioning of the central, in a way to maximize as much as
possible the generation of electricity through the most effective use of the
flows.
4.3 Preliminary study of financial benefits
A financial benefit study for every potential place to be identified is done. At
this preliminary financial phase the potentiality to be used will be decided and
shall be given the best variant for the realization of the project from the
private investors. After gaining the right for the development of the project
from the private investors it is necessary to make a complete feasibility study
and gather all of the necessary documents (including the licenses and
permits) to assure the financing of the project and then the physical
implementation of the project will start.
___________________________________________________________

In the preliminary feasibility study all the topographic, meteorological,
geographical maps and those of economic and social development were used.
The planning process was done in three phases named: (i) Preparatory
Investigation at respective maps, (ii) knowing the terrain at all the potential
places where the future 20 centrals shall be constructed, and (iii) the
preliminary benefits.
In the preliminary feasibility study all the topographic, meteorological,
geographical maps and those of economic and social development were used.
The planning process was done in three phases named: (i) Preparatory
Investigation at respective maps, (ii) knowing the terrain at all the potential
places where the future 20 centrals shall be constructed, and (iii) the
preliminary benefits. In the preliminary phase the general information
collected from the maps was used, water flows, hydrology, meteorology,
geology, environmental considerations etc. This information was secured from
the responsible institutions and the Ministries, like i.e. Communes, Ministry of
Environment and Space Planning, Ministry of Energy and Mines, Institute of
Hydrology, KEK, Central Office of Statistics and other similar institutions. The
supporting groups established from the MEM, lead by the head of the
departments Strategy and Development, Energy, Renewable Resources
division were also included in finding and gathering the necessary
information. Also, all of the specialists of MEM nominated to take part in the
visits to the terrain participated in the visits, which had a double character:
knowing and taking of experience.

Table of inflow of the processes is shown in the first part of figure 4. This analyse,
as it is shown in the figure 4, will be part of the full feasibility study and technical
design of the SHPP.

___________________________________________________________

Figure 4.: Framework of the Process for Assessing the Potentials and Promoting the
Rehabilitation/ Development of Small Hydropower Plants in Kosovo

Part 2
Part 1
Part 3
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4.4 Preliminary Investigations (surveys)
Collected data Gathering of the necessary meteorological, hydro-technique,
geological and environmental data is the initial phase for every study estimating the
potentiality of small HPP. The minimum data used during the initial phase have been
the data of the topographic maps, rainfalls, and river flows in some measuring sites
secured by the Kosovo Hydro-meteorology Institute and dropping data. The other
data connected with hydrology, meteorology and geology were based on some other
sources. These data were collected from Mr. Nazir Myrtja, in collaboration with the
specialist of the Renewable Sources Division, and the two head of departments of
Energy, Mr. Salvador Elmazi and of the Strategy and Development, Mr. Gzim Pula.

Topographic maps The HPP dropping is determined from the valuable river flow
of that site or zone. The zone of the water basin is necessary for the calculation of
the river flow. The dropping is calculated as a difference of flows and outlets in the
spot of this site. The topographic maps were used for the calculation of the water
basin and the head at a scale from 1:25,000 up to 1:50,000. These maps were given
from Mr. Zenun Elezaj, Director of Seismic Office at MEM and Prof. Alaudin Kodra,
specialist experienced in designing the Kosovo Geological Map.

Dropping data The data from the topographic maps and the dropping data were
used, and a special importance was given to the projecting of the HPP development
plan and the data of the river dropping in some parts of it, which will be used for the
construction of the new HPP. In some cases, if the river flow was not registered at
the project site or near it, then it was necessary to prepare the data for the project
site dropping, using the necessary data of the nearby rivers within that area.

Other hydrologic and meteorological data Normally rain and snow falls
are surveyed even where the falls have not been registered. If the period of
registering the data is shorter and inappropriate for the study, the rainfall data will
be used for the preparation of long-term falling data. If the flow of the torrent outfall
is not installed near the projected zone, but in other basins, the falling data shall be
taken from the data of the other basins, taking into consideration the falls in all of
the basins. If the fall data is valid in the neighbor basin, the dropping data shall be
created from the falling data. All these methodologies are used in this study
depending on the case.

Some of the main parameters in projecting the HPP, despite its measure, are the
landscape and the waters. In a few words, the efficacy of a HPP depends on the
quantity of water used and the height from which the water is dropping. So, a
determined region is classified as potentially rich with hydro energy if there is a
combination of the two above mentioned factors. Problems coming during the
projecting of small HPP:
Constructed in far mountainous regions
Mountainous water streams are not monitored (how and like)
Meteorological network (mainly the falls) is weak
1. Optimal (ideal) case; when the water surveys exist in the axe where the HPP
shall be constructed
___________________________________________________________

2. The favorable case; when there are water measurements at the water stream
where it is thought the HPP will be constructed
1. The most disadvantageous case and the most common one; when no water
measurement exists, and even worse when there are no meteorological
measurements at the site.

Geological data The consultants know that there is a need in the planning phase
for all the basin geological conditions and the water-lane to be known. Although data
was collected regarding the seismic activity in this area based on special literature,
as it was needed.

Data on electric charge and the transmission and distribution lines. Maximal daily
load curves at the nearest supply zone and the sources of energy supply were also
investigated. In some cases the HPP are near the load center, so the percentage of
the transmission-distribution line, at the cost of HPP is relatively low.

Master plan of river basin development - A master plan will be prepared in cases
when the development of the entire river basin is required, so to ensure the most
effective and efficient manner of utilization of river small-scale hydropower potential.

Environmental regulations - Any small-scale hydropower development should comply
with the environmental legislation and guidelines in Kosova, hence the need arises
for Preliminary Environmental Impact Assessment (EIA).

Data concerning construction and equipment costs - Estimate of the construction
cost is necessary to evaluate the pre-financial and economic viability of the project.
The unit prices of the principal inputs such as concrete, excavation, labor, equipment
and interest rates are useful for the estimation of the construction cost. These data
will be collected.

Study of river profile - Small-scale hydro power plants generate electricity by using
the difference in elevation of a river. The rivers gradient will be studied by
topographic maps so that the topographic features will be used most effectively. The
maximum output is the power output the plant can generate, normally referred to as
installed capacity or rated capacity. The maximum plant discharge is the largest
discharge used by the power plant which is the value used to determine the installed
capacity.
4.5 Recognition Study of the most important areas.
For the compilation of this study many materials have been analyzed and visits in
those areas have been made. The study is spread on all the hydro sources and in all
the Kosovar territory.

The aim of the study was to highlight the hydrological potentiality existing in those
water resources, the possibility to use them for the production of electricity, without
harming other sectors of economy. The studying was more concentrated on the
possibility to construct small or medium HPP as objects that could be easily
___________________________________________________________

constructed, in a short time period and without harming the environment or other
fields.

By the construction of these HPP, the natural streams will remain unchanged, these
solutions are cheaper and do not try to regulate the flows and to fulfill other water
needs. Through these HPP, the production of electricity will depend on the natural
flows during the year.

At the beginning the study was spread at all the rivers or their main branches. At the
first and general comparisons those rivers that had small water quantities or not
enough geodesic potentiality were excluded. In these studies, at this phase were
excluded also the mountain torrents at high quotes, this for the difficulties in
constructing and using them especially during the winter freezing. These sources
remained as studying possibility at a latter phase.

Figure 5.: Site presentation of 18 new HPP, based on respective investigations.

At the beginning it was thought to include about 15 rivers, with 25 HPP variants in
the study. Through the first comparisons and visits to the terrain, a part of them was
excluded. At this stage in the study, 18 HPP have been analyzed up to a preliminary
scheme-idea. For the rivers presenting more hydro-energetic interest, the schemes
have been compiled for their entire or partial use. For these rivers, those parts of the
river that are hard to use or could result in high costs are excluded as well as in
order not to intervene in the environment, such as some of the areas of present
interest for mountain tourism. In figure 5 the presentation of the site of these 18
new HPP is given, based on respective investigations.

___________________________________________________________

In the study even those part of the river that are inhabited, where social or
environmental problems could be raised were excluded. From the analysis of the
topographic and hydrologic materials, the rivers and the HPP that might be
interesting to be studied further on were found.
The studies done at this stage could bring some concentration to some zones that
have approximate hydro-energetic parameters. 1. Area north-west Pej Junik; 2.
Area south east Dragash -Prizren; 3. area north of Mitrovica and 4. Area east of
Llapi.

Area 1, is a very interesting area. In this area the rivers have more flow and what is
more important, even the geodesic potential is considerable, so the hydro energetic
gradient (kWh/km2) is at maximum.

The Rivers Lumbardhi of Peja., Lumbardhi of Dean, Lumbardhi of Lloanit and
Erenik River are included in this area. From all the rivers of the area an average
production of about 194 million kWh/year could be gained, separated between the
rivers:
From the Lumbardhi of Peja a yearly production of 79 million kWh/year
could be attained.
From Lumbardhi of Dean about 64 million kWh/year could be attained.
From Lumbardhi of Lloan about 14 million kWh/year could be attained.
From Erenik river about 37 million kWh/year could be attained.

Area 2 is ranked second, based on the hydro energetic gradient. The rivers included
in this area are: Plava, Lumbardhi of Prizrenit and Lepenci. From all these rivers an
average yearly production of about 69 million kWh/year could be attained, separated
between the rivers:
From Plava River; about 36 million kWh/year could be attained.
From Lumbardhi of Prizren; about 7 million kWh/year could be attained.
From Lepenc River; about 26 million kWh/year could be attained.

For this area the hydro energetic gradient is about 4 times lower than that of area 1.

Area 3 is ranked third, regarding the hydro energetic gradient. The rivers Bajska and
Bistrica (Batare) are included in it. An average of about 7 million kWh/year could be
attained from these rivers. This area from the hydro energetic gradient point of view
is 9 times poorer than area 1.

Area 4 is the poorest area with regard to the hydro-energetic aspect, with a ranking
about 12 times lower. The river that presented some interest in this area is the river
Kaandoll. About 3 million kWh/year could be gained from this river.

The above indicators was necessary million kWh/year and area 1 especially has
satisfactory indicators.
4.6 The potential of Kosovo small HPP
The possibility of constructing Hydro Power Plants has been determined from the
studies done for every river. The composing of every HPP has been calculated; the
calculated flow of every power plant has been made. The hydraulic calculations for
___________________________________________________________

the HPP main works have been done and are estimated in the construction works.
All the evaluation, for this stage of the study, are done based on the map scaled 1:
25 000. At further stages, the special HPP topographic and geologic works in the
terrain should be done. Based on these data and other ones from the hydrologic
studies, the hydro-energetic parameters will be fixed, belonging to the project-idea.
By analyzing every river in detail, the real HPP will be given:

Lumbardhi of Peja River will be constructed 3 SHPPs:
Kuqishta SHPP, with 80 m head, calculated inflow 6 m3/sek, installed capacity 3900
kW dhe average yearly electricity generation 17 milion kwh/year (figurat 6&7).

Figure 6.: Lumbardhi of Peja; SHPP of Kuqishta. Intake of water site

___________________________________________________________


Figure 7.: Lumbardhi of Peja. Kuqishta SHPP: Upstream part

Drelaj SHPP, with 120 m head, calculated inflow 6.5 m3/sek, installed capacity 6200
kW dhe average yearly electricity generation 27 milion kwh/year.

Shtupeq SHPP, with 120 m head, calculated inflow 8 m3/sek, installed capacity 7600
kW dhe average yearly electricity generation 35milion kwh/year (figures 8-10).

Figure 8.: Lumbardhi of Peja. Shtupeqi SHPP: Site where will be allocated channel
___________________________________________________________


Figure 9.: Lumbardhi of Peja; Shtupeqi SHPP: Intake of water site

Figure 10.: Lumbardhi of Peja; Shtupeqi SHPP: Site where will be build the power house

LLumbardhi of Deani River - will be constructed 2 SHPPs:
___________________________________________________________

Bellaj SHPP, with 130 m head, calculated inflow 5 m3/sek, installed capacity 5200
kW dhe average yearly electricity generation 25 milion kwh/year (Figura 11).

Figure 11.: Lumbardhi of Deani; Bellaj SHPP

Deani SHPP, with 160 m head, calculated inflow 6.5 m3/sek, installed capacity 8300
kW dhe average yearly electricity generation 39 milion kwh/year (figurat 12-16).

Figure 12.: Lumbardhi of Deani. Deani SHPP

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Figure 13.: Lumbardhi of Deani. Deani SHPP: Site where will be build the power house

Figure 14.: Lumbardhi of Deani. Geological structures nearby to the river

___________________________________________________________


Figure 15.: Lumbardhi of Deani. Geological structures (terigjene) nearby to the river

Figure 16.: Lumbardhi of Decani. Geological structures (ranoro-alevrolitore) nearby

Lumbardhi of Lloani River - will be constructed 1 SHPP:
Lloan SHPP, with 250 m head, calculated inflow 1.5 m3/sek, installed capacity 3100

Erenik River - will be constructed 3 SHPPs:
___________________________________________________________

Mal SHPP, with 200 m head, calculated inflow 2.4 m3/sek, installed capacity 3000
kW dhe average yearly electricity generation 18 milion kwh/year (figura 17-18).

Figure 17.: Erenik. Mal SHPP: Site where will be build the power house

Figure 18.: Erenik SHPP

Erenik SHPP, with 100 m head, calculated inflow 2.4 m3/sek, installed capacity 2000
kW dhe average yearly electricity generation 9 milion kwh/year (Figurat 19-20).
___________________________________________________________


Figure 19.: Erenik SHPP: Site where will be build the power house

Figure 20.: Erenik SHPP

Jasiq SHPP, with 90 m head, calculated inflow 2.6 m3/sek, installed capacity 1900
kW dhe average yearly electricity generation 9.7 milion kwh/year.

Plav River - will be constructed 2 SHPPs:
Dragash SHPP, with 55 m head, calculated inflow 5 m3/sek, installed capacity 2200
kW dhe average yearly electricity generation 10 milion kwh/year (Figura 21).
___________________________________________________________


Figure 21.: River of Plava. Dragashi SHPP: Intake of water site

Orush SHPP, with 100 m head, calculated inflow 67 m3/sek, installed capacity 5600
kW dhe average yearly electricity generation 25.6 milion kwh/year (figura 22).

Figure 22.: Orusha SHPP

Lumbardhi of Prizreni River - will be constructed 1 SHPP:
Rean SHPP, 70 m head, calculated inflow 2.6 m3/sek, installed capacity 1500 kW
dhe average yearly electricity generation 6.7 milion kwh/year (figurat 23-24).
___________________________________________________________


Figure 23.: Reani SHPP

Figure 24.: Lumbardhi of Prizren

Lepenc River- will be constructed 2 SHPPs:
Brezovica SHPP, with 60 m head, calculated inflow 4.5 m3/sek, installed capacity
2100 kW dhe average yearly electricity generation 10 milion kwh/year.

Lepenci SHPP, with 60 m head, calculated inflow 7.6 m3/sek, installed capacity 3500
kW dhe average yearly electricity generation 16 milion kwh/year (figurat 25-29).
___________________________________________________________


Figure 25.: River of Lepenci. Lepenci SHPP: Intake of water site

Figure 26.: River of Lepenci. Lepenci SHPP: Intake of water site

___________________________________________________________


Figure 27.: River of Lepenci Down of intake of water site

Figure 28.: River of Lepenci. Shterpc SHPP: Intake of water site.

___________________________________________________________


Figure 29.: River of Lepenci. Shterpc SHPP: Site where will be build the power house .

Bajska River - will be constructed 1 SHPP:
Bajska SHPP, with 85 m head, calculated inflow 0.5 m3/sek, installed capacity 300
kW dhe average yearly electricity generation 1.4 milion kwh/year (figura 30).

Figure 30.: River of Bajsks

Bistrica (Batare) - will be constructed 1 SHPP:
___________________________________________________________

Batare SHPP, with 60 m head, calculated inflow 2.3 m3/sek, installed capacity 1100
kW dhe average yearly electricity generation 5.8 milion kwh/year (figurat 31-33).

Figure 31.: River of Bistrica. Batare SHPP: Site where will be build the power house

Figure 32.: River of Bajsks. Geological structures nearby to the river

___________________________________________________________


Figure 33.: River of Bistrics. Geological structures (peridotite) nearby to the river

Kaandoll River - will be constructed 1 SHPP:
Majanc SHPP, with 50 m head, calculated inflow 1.5 m3/sek, installed capacity 600

Drini i Bardh (Drini +Deani) River - will be constructed 1 SHPP:
Mirusha SHPP, with 15 m head, calculated inflow 45 m3/sek, installed capacity 4600

It should also be stressed that among the new HPP there are 5 existing HPP not
operating or in operation. The HPP still operating are: Kozhnjer and Ujman. Ujman
HPP, with a capacity of 2 x 17.5 MW at an average annual production of 76 GWh, it
is the only big HPP that is also used for other scopes. Ujman HPP is the propriety of
Ibr-Lepenc Hydro-system and operates in the frame of the Kosovo power system.
Beside the production of electricity, the accumulation of water is used for other
destinations (irrigations, drinking and for industry). In order to activate, modernize
and increase the power of Koznjer HPP, the Kosovo Energy Corporation, signed on
29.04.2004, with special procedure, two contracts with the company Triangle
General Constructors from New York::
Leasing contract, and
Power Purchase Agreement.

After the start of the operations, it is waited that:
The HPP annual production shall be: 20756 MWh/year,
Installed capacity 8 MW.

The project realization has finished and since November 18th, 2005 the central is
operating.
___________________________________________________________

In the table 2 the potential of new HPP, existing HPP to be rehabilitated and the HPP
already rehabilitated are given. As it can be seen from the table... and the figures
...., the total hydro-technique potential that can be used from the small HPP is 75.22
MW and the energy that can be produced is 344.6 GWh.
Existing
SHPP
rehabilitated,
8000, 10.6%
Existing
SHPP to be
rehabilitated,
3520, 4.7%
NewSHPP,
63700,
84.7%
NewSHPP,
294.1, 85.6%
Existing
SHPP to be
rehabilitated,
17.3, 5.0%
Existing
SHPP
rehabilitated,
32, 9.3%
Figure 34.: HPP potential upon the
categories [kW]
Figure 35.: HPP potential upon categories
[GWh]

Table 2.: The value of initial investment components for each HPP new/to be
rehabilitated
Name Power
capacity
[kW]
Electricity
generation
[Milion
kWh]
I nflow
m3/ sek
Head
[m]
River

New HPP which will be constructed
1: Kuqisht HPP 3900 17 6 80 Lumbardhi of
Peja 2: Drelaj HPP 6200 27 6.5 120
3: Shtupeq HPP 7600 35 8 120
4: Bellaj HPP 5200 25 5 130 Lumbardhi of
Deani 5: Dean HPP 8300 39 6.5 160
6: Lloan HPP 3100 14 1.5 250 Lumbardhi of
Lloani
7: Mal HPP 4000 18 2.4 200 Ereniku
8: Erenik HPP 2000 9 2.4 100
9: J asiq HPP 1900 9.7 2.6 90
10: Dragash HPP 2200 10 5 55 Plava
11: Orush HPP 5600 25.6 7 100
12: Rean HPP 1500 6.7 2.6 70 Lumbardhi of
Prizreni
13: Brezovic HPP 2100 10 4.5 60 Lepenc
14: Lepenc HPP 3500 16 7.6 60
15: Bajsk HPP 300 1.4 0.5 85 Banjsk
16: Batare HPP 1100 5.8 2.3 60 Bistrica
(Batare)
17: Majanc HPP 600 2.9 1.5 50 Kaandoll
18: Mirusha HPP 4600 22 45 15 Drini i Bardh
and Deani
All New HPPs 63700 294.1
___________________________________________________________

Exisiting HPP which will be rehabilitated/upgraded
19: Dikancit HPP 1900 10
20: Radavcit HPP 350 1.8
21: Burimit HPP 800 4.6
22: Prizrenit HPP 330 1.4
23: Shtimes HPP 140 0.7
All Existing HPP 3380 17.8
HEC-et ekzistues q punojn
24: Kozhnjerit SHPP 8000
SHPP which are working 8000
TOTAL of all SHPP 67080 311.9
4.7 Objectives of the Study for the Assessment of Kosovo Hydro-
energetic Potential
4.7.1 General Objectives
A key element of the study is the promotion of private sector initiatives, both HPP
operators, and investors from the private and banking sector. The availability of
financial means has been taken into account, even the programs of different donors
like programs or project funds, EU, EBRD, World Bank that can support or undertake
the investments for rehabilitation of HPP.
The principal objective is to support the promotion of private investments in the
development of new small HPP and the rehabilitation of the existing ones in Kosovo,
through the identification and estimation of sources that are technically and
economically feasible (possible). The identification and development of a supporting
program for the construction/rehabilitation of small HPP in Kosovo will push private
investments into this sector.
4.7.2 Immediate objectives
The projects immediate objectives and the principal components include:
1. The identification and evaluation of the sources which are technically and
economically feasible of the Kosovo small HPP.
2. Preparation of a data base for feasible sites for private investments.
3. Development of pre-financial and economical analysis for the identified small
HPP candidate for private investments.
4. Development of preliminary technical analysis and the preliminary financial and
economical benefit analysis for the existing HPP proprietary of KEK.
5. Preparation of documents, project for promotion of private investments for
development new and existing small HPP in Kosovo.
6. Preparation of a supporting program for the small HPP, including fiscal and
regulatory stimulation, and other financial supporting mechanisms.

To achieve these objectives SH.SH.E.M.ZH.Q. closely cooperated with the
homologue group established with MEM, led by Mr. Nezir Myrtaj. In order to
successfully deal with this project SH.SH.E.M.ZH.Q. mobilized a team of highly
qualified experts that has had a long experience in the Balkan.
___________________________________________________________

5. Identification and evaluation of the Technical potential of
profitability of small HPP in Kosovo
Based in the studies carried out for each river, was decided the possibilities for
construction of each SHPP in particular river. Analysing each river in the following
will be given all rivers masterplans and their SHPPs:

Lumbardhi of Peja River - can be constructed three SHPPs:
Kuqishta SHPP
Drelaj SHPP
Shtupeq SHPP
Based in the masterplan shown in the figure 36 are given the longitudinal profile for
three SHPP n this river, designed from working group for utilisation of its hydro
potential from technical and financial feasible point of view.
Figure 36.: Longitunal Profil of three SHPP according to Master Plan of Lumbardhi of
Peja River

Lumbardhi of Deanit River - can be constructed two SHPPs:
Bellaj SHPP
Deani SHPP
two SHPP in Decani River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 37.: Longitunal Profil of three SHPP according to Master Plan of Lumbardhi of
Deani River

Lumbardhi of Lloanit River - can be constructed one SHPP:
Lloan SHPP
three SHPP Llocani River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 38.: Longitunal Profil of one SHPP according to Master Plan of Lloani River

Erenik River - can be constructed three SHPPs:
Mal SHPP
Erenik SHPP
J asiq SHPP
three SHPP Erenik River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 39.: Longitunal Profil of three SHPP according to Master Plan of Erenik River

Plav River - can be constructed two SHPPs::
Dragash SHPP
Orush SHPP
two SHPP in Plava River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 40.: Longitunal Profil of two SHPP according to Master Plan of Plav River

Lumbardhi of Prizreni River - can be constructed one SHPPs:
Rean SHPP
two SHPP in Prizren River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 41.: Longitunal Profil of one SHPP according to Master Plan of Prizreni River

Lepenc River - can be constructed two SHPPs:
Brezovica SHPP
Lepenci SHPP
two SHPP in Lepenc River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 42.: Longitunal Profil of two SHPP according to Master Plan of Lepenc River

Bajska River - can be constructed one SHPP:
Bajska SHPP
one SHPP in Bajska River, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 43.: Longitunal Profil of one SHPP according to Master Plan of Peja Bajska River

Bistrica (Batare) River - can be constructed one SHPP:
Batare SHPP
one SHPP in Bistrica river, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 44.: Longitunal Profil of one SHPP according to Master Plan of Bistric River

Kaandoll River - can be constructed one SHPP:
Majanc SHPP
one SHPP in Kacandoll river, designed from working group for utilisation of its hydro
___________________________________________________________

Figure 45.: Longitunal Profil of one SHPP according to Master Plan of Kaandoll River

Drini i Bardh (Drini and Deani) Rivers - can be constructed one SHPP:
Mirusha SHPP
one SHPP in Drini and Decan rivers, designed from working group for utilisation of
its hydro potential from technical and financial feasible point of view.

___________________________________________________________

Figure 46.: Longitunal Profil of three one according to Master Plan of Drini i Bardh
River

Also, as it was mentioned in the above mentioned section, aside with evaluation of
new SHPP, it is very important to rehabilitate/upgrade the following existing SHPP:
Dikanci SHPP,
Radavci SHPP,
Burimi (Istogu) SHPP,
Prizreni SHPP (this SHPP is not working and actually the building is museum),
Shtimja (this SHPP does not exist eny more (please read more about it in the
proper section).

In the following section are given all their technical, hydrological and geological and
ingineering parameters.
6. Gathering of data on hydrology, geology, evaluation of HPP
capacity and the evaluation of initial cost of construction and
machineries
During the whole project, as it was stressed before, there was a close cooperation
with the MEM group and the necessary data for the respective analysis for the
preliminary technical and economical profitability has been collected.
___________________________________________________________

6.1 Topographic maps
The topographic maps on which the hydro-technique, hydrologic and geologic-
engineering data are presented are of the scale 1:25 000. Those presented in the
Gaus-Kruger projection the main contour lines are taken every 50 m, whereas the
simple contour line is every 10 m. In figure 3 the topographic papers are presented
where the small Hydro power plans are projected.

Table 3.: Nomeclature of topographic maps (1:25000 and 1:50000), which has been
used for study of SHPP on Kosovo
Nr. Name Nr. Name Nr. Name Nr. Name
1 K-34-41-C-
a
22 K-34-30-C-d 43 K-34-53-A-a 63 K-34-30-C
2 K-34-41-C-
b
23 K-34-30-D-a 44 K-34-53-A-b 64 K-34-30-D
3 K-34-41-C-
c
24 K-34-30-D-b 45 K-34-53-A-d 65 K-34-41-C
4 K-34-41-C-
d
25 K-34-30-D-c 46 K-34-53-B-a 66 K-34-42-B
5 K-34-41-D-
a
26 K-34-30-D-d 47 K-34-53-B-c 67 K-34-43-A
6 K-34-41-D-
c
27 K-34-41-C-a 48 K-34-53-C-b 68 K-34-43-B
7 K-34-53-A-
a
28 K-34-41-C-b 49 K-34-54-D-d 69 K-34-43-C
8 K-34-53-A-
b
29 K-34-41-C-c 50 K-34-55-C-c 70 K-34-43-D
9 K-34-53-A-
d
30 K-34-41-C-d 51 K-34-56-A-a 71 K-34-53-A
10 K-34-53-B-
a
31 K-34-41-D-a 52 K-34-56-A-c 72 K-34-53-B
11 K-34-53-B-
c
32 K-34-41-D-c 53 K-34-56-C-a 73 K-34-53-C
12 K-34-53-C-
b
33 K-34-42-B-a 54 K-34-56-C-c 74 K-34-54-D
13 K-34-55-C-
c
34 K-34-42-B-b 55 K-34-66-B-c 75 K-34-55-C
14 K-34-66-C-
a
35 K-34-42-B-d 56 K-34-66-B-d 76 K-34-56-A
15 K-34-66-C-
c
36 K-34-43-A-a 57 K-34-66-C-a 77 K-34-56-C
16 K-34-66-B-
c
37 K-34-43-A-c 58 K-34-66-C-c 78 K-34-66-B
17 K-34-66-B-
d
38 K-34-43-B-c 59 K-34-67-A-a 79 K-34-66-C
18 K-34-67-A-
a
39 K-34-43-C-b 59 K-34-67-A-b 80 K-34-67-A
19 K-34-30-C-
a
40 K-34-43-C-d 60 K-34-67-A-c 81 K-34-78-A
20 K-34-30-C- 41 K-34-43-D-a 61 K-34-67-A-d
___________________________________________________________

b
21 K-34-30-C-
c
42 K-34-43-C-b 62 K-34-78-A-a
6.2 Other meteorological and hydrological data
In the formation of Kosovo climate, an important role is played by its geographic
position and the landscape. On the geographic aspect Kosovo is situated from 430
51 and 430 16 north and 200 01 210 48 east. Kosovo territory has total surface
of 10.907 km2. Kosovos landscape is characterized by high mountain crests in its
surrounding, especially in the west (Bjeshkt e Namuna) and south, where the
maximal height is 2658 m above sea level in the Alps, and the lowest level is 273 m
above sea level in its central part. The Kosovo average elevation is about 700 m
above sea level, which could be considered low if we keep in mind that Kosovo is not
surrounded by the sea. Kosovos territory is part of hydrographic basins of three
different seas: Adriatic basin (Drini Bardh and Plava), which covers almost half of
Kosovos territory; Black Sea basin (Ibri and Morava e Bins), and the Aegean Sea
basin (Lepenc or Vardar).
Starting from what we said above, from the climatic point of view we have a very
heterogenic territory, where some type of the climates combine with each other.
Taking into consideration the geographical position, it is understood that the
continental climate prevailing in Kosovos territory sometimes has the effect of a
mountain Mediterranean climate. So, there we have a combination of a continental
climate with a Mediterranean one, depending on the different regions, where the
mountain areas have their influence. So the effects of the mountain Mediterranean
climate is felt in the west side of Kosovo through the Drini Bardh valley.
In this project, the one thing that interests us out of all the climatic elements are the
atmospheric falls. Since the beginning the fact was mentioned that in general the
territory of Kosovo lacks atmospheric falls, if we are talking about the hydro-energy
aspect. From the preliminary data about the 37 measurement sites, the results from
the annual average falls in the territory of Kosovo are about 760 mm, oscillating
from a minimum of 570 mm per year, on Kamenica and a maximum of 1408 mm, in
Junik. It is evident that the fact that the falls in the form of snow, during winter time
are present in all the territory, which is normal considering the characteristics of
Kosovo climate, which were mentioned before.
From the analysis of the data in disposition there are some worries about the
atmospheric precipitations. The first is the fact that some measurement sites work at
high altitudes (only 9% of the measurement sites are an altitude above 1000 m),
which do not reflect the real quantity of the precipitations (such worries are not only
in Kosovo) and second, there is a demarked disproportion in the distribution of
precipitation in the territory. Acceptable quantities of rain (always in the sense used
for hydro-energy) in the mountainous areas of the north-west, west and south-west
of Kosovo, where the effects of the Mediterrenean climate is sensed. The rest of
Kosovo could be considered poor from hydro-energy point of view.
___________________________________________________________

Regarding the Kosovo hydrographic network we could say that it is divided into three
main water basins: a) that of Drini Bardh River and respective branches, from which
the main comes from the mountain region of Bjeshkve e Nemuna, like Lumbardhi
Pejs, Lumbardhi Deanit, Erenik and the Sharri highlands (Lumbardhi Prizrenit),
b) in that of Vardar River, where the main branch in Kosovo territory is Lepenc that
from its side has its main branch Nerodima, c) that of Ibr, where its main branch,
Sitnica, pass all Kosovo.
6.3 Other data regarding the flows of the water
The data of daily flows in the entire Kosovo hydrographic network are secured from
27 main measurement sites and in general include the period from 1960 up to the
year 1986 (see table). The data states that in all the cases, the daily flows have
interruptions and for some measuring sites there are data only for one year! This
has made the hydrological analysis of the entire region difficult. However a view of
the Kosovo hydrologic map could be figured out. All the materials in disposition have
already been processed and all the main materials have been taken from every
measuring site, such as the annual average flows and the specific average flow
(module). These parameters about the sites with more than 10 years of data are
presented in table 2 (for presentation effect should be included only some
measuring sites with less data). As it was foreseen from Kosovos climatic
characteristics, it results that the river with high water flows belongs to the west
region of Kosovo, where precipitation is higher. The hydrologic parameter
characterizing the water flows is the specific flow (module) that expresses the water
contribution per square unit at the same time is the parameter that allows making
comparisons between the different flows. It is exactly this parameter that is used to
calculate the average flows for each ax, when there are no data, knowing the lowest
point of its change in relation to the basin size.
Table 4.: Main hydrologic parameters upon the measuring sites
Nr. Rivers
Measurment
Post
Distance km Area km Years with data
1 Morava e Bins Viti 313.0 111 4 vjet
2 Morava e Bins Kromijan 269.3 1017 17 vjet
3 Morava e Bins Konul 266.5 1639 10 vjet
4 Ibr Leposavi 131.0 4701 26 vjet
5 Ibr Prelez 182.0 1109 15 vjet
6 Sitnica Nedakovc 26.0 2590 25 vjet
7 Drenica Drenics 21.2 326 5 vjet
8 Llap Luzhan 26.6 694 3 vjet
9 Llap Milloshev 11.4 923 5 vjet
10 D. i Bardh Kpuz 59.0 2116 23 vjet
11 D. i Bardh Krajk 35.5 3916 3 vjet
12 D. i Bardh Verbnica 0.1 4360 13 vjet
13 Istogut Berkova 2.6 435 5 vjet
14 Klina Klin 0.9 423 14 vjet
___________________________________________________________

15 Lumbardhi i Pejs Drelaj 41.0 158 20 vjet
16 Lumbardhi i Pejs Pej 31.4 264 20 vjet
17 Mirusha Mirusha 18.5 127 5 vjet
18 Bistrica e Deanit Dean 29.8 114 24 vjet
19 Ereniku Gjakov 8.0 455 12 vjet
20 Topluha Piran 0.8 512 5 vjet
21 Lumbardhi i Prizrenit Prizren 18.0 158 16 vjet
22 Plava Orusha 0.5 252 17 vjet
23 Kamenic Kamenic 11.0 135 3 vjet
24 Kriva Reka Domorovc 2.1 609 11 vjet
25 Sitnica Dobri Dub 51.5 1314 4 vjet
26 Lepenci Hani i Elezit 21.0 622 11 vjet
27 Nerodimja Kaanik 0.8 214 1 vit

Tabela 5.: Main hydrologic parameters upon the measuring sites
Nr. Rivers
Measurment
Post
Siprfaqja e
pellgut km
Inflow of the
water m
3
/s
Modul l/s/km
1 Morava e Bins Kromijan 1017 5.78 6
2 Ibr Leposaviq 4701 30.85 7
3 Ibr Prelez 1109 13.4 12
4 Sitnica Nedakovc 2590 12.85 5
5 Drini i Bardh Kpuz 2116 24.6 12
6 Drini i Bardh Verbnica 4360 58.9 14
7 Istogu Berkova 435 3.75 9
8 Klina Klin 423 1.49 4
9 Lumbardhi i Pejs Drelaj 158 4.20 27
10 Lumbardhi i Pejs Pej 264 5.95 23
11 Mirusha Mirusha 127 0.96 8
12 Bistrica e Deanit Dean 114 4.28 38
13 Ereniku Gjakov 455 12.33 27
14 Lumbardhi i Prizrenit Prizren 158 4.47 28
15 Plava Orusha 252 4.74 19
16 Kriva Reka Domorovc 609 4.23 7
17 Lepenci Hani i Elezit 622 10.49 17

Based in the study carried out for each river it is defined the possibility of
construction allS HPPs whithin rivers. Based in this study is done also comosition of
each SHPP based in the calculated average water inflow. Also in this study are
carried out technical calculation of civil and machinery parts. All evaluations, in this
study phase are done on the 1:25 000 schale maps. In next phase, full feasibility
study, will be carried out all topographic and geological calculation including full
topografic survey on the terrene. Based in those data and other hydrological studies,
will be fix hydrological and all technical and investment parameters. By analysing in
detail each river at the following will be describe each of them and their SHPPs.
___________________________________________________________

6.3.1 Lumbardhi of Peja River
6.3.1.1 Kuqishta SHPP
Kuqishta SHPP Will be constructed in the Kuqishta area, about 17 km Northwest
of Peja, it uses a head of 80 m from the quota 1150 up to 1070 m above the sea
level. It uses the flow energy of Lumbardhi of Peja in its upper part by constructing
in its main flow and its left branch in the Adzhovica torrent. Two main works shall
be constructed, the main derivation channel with a length of 1.8 KM that shall be
constructed on the right side of the river. Under pressure basin, turbine pipes and
the central building are placed on the left side about 700 m below the joint of two
branches. Taking of the left branch shall be done with a derivation channel and
siphon that have a general length of about 2.1 km. In the central building are
foreseen to be placed two turbines, Frencis type, with 3900 kW capacity.

Kuqishta SHPP, with 80 m head, calculated inflow 6 m
3
/sek, installed capacity
The main hydrological parameter are average monthly inflow, which are shown in
table 6 and figure 47:
Average yearly inflow: Q = 4.0 m
3
/s

Table 6.: Monthly distribution of the water inflow
Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 2.54 2.31 3.65 9.10 12.30 4.93 1.72 1.07 1.31 2.17 3.74 3.13 4.00
Lumbardha e Pejes, Kuqishte
Kurba e qendrueshmerise
0
5
10
15
20
25
30
35
40
45
50
55
60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Shpeshtesia
Q

m
3
/
s

Figure 47.: Yearly water inflow stability curve for Kuqishta SHPP
6.3.1.2 Drelajt SHPP
Drelajt SHPP - Is the second HPP in the river scheme, it is situated about 13 km
Northwest of Peja. It uses a head of 120 m, from the quota 1070, up to 950 m
above the sea level. The HPP works are developed on the right side of the river in
from the Drelaj village. On the right side, the geological formations are stronger and
___________________________________________________________

landscape is less destroyed. The in taking work shall be placed 600 m below the
building of the upper HPP. The in coming channel have a length of 4.1 km, it has a
semi trapezium section, which partially immersed in the ground and the road on the
river side. The central building shall be placed on the river terrace on the right side
before the Afagina torrent. In the central building are foreseen to be installed 2
turbines, Frencis type, with a general capacity of 6200 kW.

Drelaj SHPP, with 120 m head, calculated inflow 6.5 m
3
Average yearly inflow Q = 4.2 m
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 2.66 2.43 3.84 9.55 12.92 5.18 1.81 1.12 1.38 2.28 3.93 3.28 4.20
Lumbardha e Pejes, Drelje
0
5
10
15
20
25
30
35
40
45
50
55
60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Shpeshtesia
Q

m
3
/
s

Figure 48.: Yearly water inflow stability curve for Drelajt SHPP
6.3.1.3 Shtupeqi SHPP
Shtupeqi SHPP - Is situated about 9 km Northwest of Peja. It uses a head of 120
m from the quota 950 m to 830 m. Below this quota the river valley is very damaged
and the construction of the central works will be very hard and costly. The
hydropower plant works are developed on the right side of the Lumbardhi of Peja.
The in taking is realized through a concrete work to be constructed after the Afagina
torrent. The in coming channel have a length of 3.8 km and continues up to before
entering in the neck where is developed the under pressure basin, turbine pipes and
the central building. In central building are foreseen to be installed 2 turbines,
Frencis type, with general capacity of 7600 kw.

___________________________________________________________

Shtupeq SHPP, with 120 m head, calculated inflow 8 m
3
7600 kW dhe average yearly electricity generation 35milion kwh/year.
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 3.36 3.06 4.84 12.06 16.3 6.54 2.28 1.41 1.74 2.87 4.96 4.15 5.30

Lumbardha e Pejes, Shtupel
0
10
20
30
40
50
60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesi a, %
Q

m
3
/
s

Figure 49.: Yearly water inflow stability curve for Shtupeqi SHPP

As result, on table 9 are shown the main design parameters for SHPPs, which are
going to be built on Lumbardhi of Peja River.

Table 9.: Main parameters for each SHPP of Lumbardhi of Peja River

Nr

HPP
H
m
Q
HC

m
3
/s
N
kW
E mil
kWh
Investment mil
civil machin
ery
sum
1 Kuqishta
(1150-1070)
80 6.0 3900 17 2.40 1.20 3.60
2 Drelaj
(1070-950)
120 6.5 6200 27 3.20 2.10 5.30
3 Shtupeq
(950-830)
120 8.00 7600 35 3.90 2.60 6.50
Sum (1150-830 ) 320 17700 79 9.50 5.90 15.40
Note: In the value of civil investment are included and study and disegn funds.
___________________________________________________________

6.3.2 Deani SHPP
6.3.2.1 Bellaj SHPP
Bellaj SHPP Is situated about ? km West-Northwest of Dean. Is the upper HPP
in the scheme of the River Lumbardhi Deanit. It shall be constructed after the
existing HPP, that of Kozhnjer. This HPP uses the river head of 130 m from the
quota 940, up to 700 m above the sea level. The hydropower plants works will be
developed on the rivers right side as the geological formations there are better
ones. The water will be taken directly after coming out from the existing hydropower
plant. The in coming channel have a length of about 4.6 km, it has a semi trapezoid
section, partially immersed in the ground and the road on river side. At the end of
the channel shall be placed the under pressure basin and the turbine pipes. The
centrals building shall be placed in the river terrace, on the right side in from the
place called Shpella e zez (Dark Cave). In the centrals building are foreseen to be
installed two turbines, Frencis type, with general capacity of 5200 kW.

Bellaj SHPP, with 130 m head, calculated inflow 5 m
3
/sek, installed capacity 5200
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 1.85 1.93 2.48 5.53 9.76 6.41 2.65 1.47 1.62 2.32 2.85 2.22 3.42
Lumbardha Decanit, Belaj
0
10
20
30
40
50
60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesia, %
Q

m
3
/
s

Figure 50.: Yearly water inflow stability curve for Bellaj SHPP
___________________________________________________________

6.3.2.2 Deani SHPP
Deani SHPP Is situated about 4 km West-Northwest of Dean. It is the second
hydropower plant on the scheme of River Lumbardhi Deanit, which together with
the existing one is third hydropower plant. The recipient work will be constructed
about 600 m down the upper hydropower plant. The hydropower plant uses the
head of 160 m from the quota 810 to 650 m, near the exit of the river valley, where
there is the possibility to exploit it. The hydropower plant work will be developed on
the rivers right side as the geological formations there are much better ones. The
carrying channel has a length of about 4.2 km, it has a semi trapezoid section
partially immersed in the ground and with road on the river side. The under pressure
basin and the turbine pipes are placed on the hill at the exit of the river valley. On
the centrals building are foreseen to be installed two turbines, Frencis type, with
general capacity of 8300 kW.

Deani SHPP, with 160 m head, calculated inflow 6.5 m
3
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 2.31 2.42 3.10 6.91 12.20 8.01 3.31 1.84 2.03 2.90 3.56 2.78 4.25
Lumbardha e Decanit, Decan
0
5
10
15
20
25
30
35
40
45
50
55
60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Shpeshtesia
Q m3/s

Figure 51.: Yearly water inflow stability curve for Decani SHPP

going to be built on Lumbardhi of Decani River.

Table 12.: Main parameters for each SHPP of Lumbardhi of Deani River

Nr

SHPP
H
m
Q
HC

m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin sum
___________________________________________________________

ery
1 Bellaj (940
700)
130 5.0 5200 25 3.10 1.90 5.00
2 Dean (810
650)
160 6.5 8300 39 3.30 3.00 6.30
Sum (940 - 650) 290 13500 64 6.40 4.90 11.30
Note: In the value of civil investment are included and study and disegn funds

As we mention above, the derivations of the hydropower plants at the Lumbardhi
Pejs and Lumbardhi Deanit, in this studying phase were mainly selected with
open derivation with channel. The closed variants with tunnels were studied too, but
they result to be more expensive. However in the further phases special part with
this kind of solution could be studied.
6.3.3 Lumbardhi of Lloani River
6.3.3.1 Lloani SHPP
Lloan SHPP Is situated about 3 km West of Deanit. It uses the river head of
250 m from the quota 950 up to 700 m from the sea level. The hydropower plants
are developed on the rivers right side. On the left side there is the automotive road
and the conditions are much better. The carrying channel has a length about 3.2
km, it has a semi trapezoid section. The under pressure basin, turbines pipes and
the centrals building are placed on the hill in its southern part, in the exit of the
torrent on the left side. At the centrals building are foreseen to be installed two
turbines, Frencis type with general capacity of 3100 kW.

Lloan SHPP, with 250 m head, calculated inflow 1.5 m
3
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 0.52 0.54 0.69 1.54 2.73 1.79 0.74 0.41 0.45 0.65 0.80 0.62 0.96
___________________________________________________________

Lumbardha Llocanit, Llocan
0
5
10
15
20
25
30
35
40
0.0000 0.2000 0.4000 0.6000 0.8000 1.0000 1.2000
Shpeshtesia %
Q

m
3
/
s

Figure 52.: Yearly water inflow stability curve for Lloani SHPP

going to be built on Lumbardhi of Lloani River.

Table 14.: Main parameters for each SHPP of Lumbardhi of Lloani River

Nr

SHPP
H
m
Q
HC

m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Lloan (950 700) 250 1.5 3100 14 1.70 1.90 3.20
Shuma (950 - 700 ) 250 3100 14 1.70 1.90 3.20
6.3.4 Ereniku River
6.3.4.1 Erenik-Mal River
Mal SHPP Is situated about 3.5 km Northwest of Juniku. It will be constructed in
the area of Gradina. It uses the head of 200 m from the quota 1000 up to 800 m
above the sea level. It uses the upper stream of the Rivers Ereniku i Madh and
Erenikut t Vogl, before their joint point. Two carrying and derivation works shall
be constructed for each branch. The derivations are selected to be without
pressures, with PVC, sideward immersed in the ground. The main channel has a
length about 1.3 km and diameter 1.2 m, meanwhile the second has a length of 1
km and diameter 0.8 m. The under pressure basin and in continuity the turbine
pipes will be constructed at their joint at Gradina hill, up to before their joint where
will be placed the centrals building. At the centrals building will be placed two
turbines, Frencis type, general installed capacity about 4000 kW.

Mal SHPP, with 200 m head, calculated inflow 2.4 m
3
___________________________________________________________

3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 0.84 0.88 1.13 2.52 4.45 2.92 1.21 0.67 0.74 1.06 1.30 1.01 1.56
Ereniku, Mal
0
5
10
15
20
25
30
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Shpeshtesia %
Q

m
3
/
s

Figure 53.: Yearly water inflow stability curve for Malit SHPP
6.3.4.2 Erenik SHPP
Erenik SHPP Is situated about 2.7 km northwest of Juniku. It is the second HPP in
the rivers scheme. It uses a head of 100 m from quota 800, up to 700 m above the
sea level. The HPP works will be developed on the river right side, in parallel with
the river and the auto route. The water is directly taken at the exit of the Mal HPP,
without building any carrying work. The hydro-technique solution consist on
building metallic turbine pipes, at a length of 1.2 km and diameter of 1.2 m. Near
the auto route at the right side shall be constructed the centrals building. In the
centrals building are foreseen to be installed 2 turbines, Frencis type, with general
capacity of 2000 kw.

Erenik SHPP, with 100 m head, calculated inflow 2.4 m
3
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 0.84 0.88 1.13 2.52 4.45 2.92 1.21 0.67 0.74 1.06 1.30 1.01 1.56
___________________________________________________________

Ereniku, Erenik
0
5
10
15
20
25
30
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Shpeshtesia %
Q

m
3
/
s

Figure 54.: Yearly water inflow stability curve for Erenik SHPP
6.3.4.3 J asiqi SHPP
J asiq SHPP Is situtated about 1.5 km West-Northwest of Junik. It uses a head of
90 m from the quota 700 m to 610 m. Nearby the bridge will be constructed the
carrying work. The carrying channel that will be placed on the right side along the
Jasiq village, has a length of 1.1 km. At its end will be placed the under pressure
basin. The Centrals building shall be constructed near a place called Kafja e
Jasiqit. At the centrals building are foreseen to be installed two aggregates, Frencis
type, with general capacity of 2200 kW.

J asiq SHPP, with 90 m head, calculated inflow 2.6 m
3
3
/s

Muaji 1 2 3 4 5 6 7 8 9 10 11 12 Vjetore
Q m
3
/s 1.00 1.05 1.35 3.01 5.31 3.49 1.44 0.80 0.88 1.26 1.55 1.21 1.86
___________________________________________________________

Ereniku, Jashice
0
5
10
15
20
25
30
35
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Shpeshtesia %
Q

m
3
/
s

Figure 55.: Yearly water inflow stability curve for J asiqi SHPP

going to be built on Ereniku River.

Table 18.: Main parameters for each SHPP of Erenik River

Nr

SHPP
H
M
Q
HC

m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Mal ( 1000 - 800 ) 200 2.40 4000 18.0 2.40 1.70 4.10
2 Erenik ( 800 700 ) 100 2.40 2000 9.0 1.60 0.70 2.30
3 J asiq ( 700 610 ) 90 2.60 1900 9.7 1.20 0.70 1.90
Sum (1000-610 ) 390 7900 36.7 5.20 3.10 8.30
6.3.5 Plava River
6.3.5.1 Dragashi SHPP
Dragash SHPP Is situated about 17.5 km Southwest of Prizren. It will be
constructed at the area of Plava and Dragash. It uses a head of 55 m from quota
940 to 885 m above the sea level, at the Plava River stream and Radeshka torrent.
There will be constructed two carrying works and two derivations for each branch.
The derivations are chosen to be without pressure with open channel. The main
channel has a length of 3.7 km, meanwhile the second one has a length of 1 km,
and their section is trapezoidal. The main channel starts near Plava and is developed
on the right side of Plava river up to the Strezna hills where will be constructed the
under pressure basin, turbines pipes and the centrals building. The second channel
starts with the carrying work near Dragash continuing at the torrent left side for
which at the end of the derivation will be constructed the basin without pressure and
___________________________________________________________

the turbines pipes what will bring the water on the other side of the Plava river, at
the same building as the main derivation as explained above. At the centrals
building will be placed two aggregates with Frencis type turbines general capacity of
2200kw.

Dragash SHPP, with 55 m head, calculated inflow 5 m
3
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 2.98 3.39 3.74 6.25 8.71 5.27 2.18 1.03 1.07 1.49 2.06 2.64 3.40
Plava, Dragash
0
5
10
15
20
25
30
35
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesia, %
Q

m
3
/
s

Figure 56.: Yearly water inflow stability curve for Dragashi SHPP
6.3.5.2 Orusha SHPP
Orush SHPP Is situated about 21 km south west of Prizren. It is the second HPP
in the rivers scheme. It uses a head of 100 m from the quota 850, to 750 m above
the sea level at the Plava River stream and the Brodi torrent, there will be
constructed to carrying work and two derivations for each branch. The derivations
are mainly chosen without pressure, with open channel and partly with pressurized
siphon. The main channel has a length of 2.2 km, meanwhile the second one has a
length of 0.7 km and their section is semi trapezoidal. The main channel begins near
Strekovina, it is developed on the rivers left side and with the siphon passes the
Brod torrent up to coming in front of Dubica, were is constructed the centrals
building. The second channel takes the water through a carrying work at the Brodi
torrent and is developed at the torrent left side up after the main siphon. The basin,
turbines pipes and the centrals building are constructed in front of the Dubica. At
the centrals building are foreseen to be installed two aggregates Frencis type with
___________________________________________________________


Orush SHPP, with 100 m head, calculated inflow 67 m
3
5600 kW dhe average yearly electricity generation 25.6 milion kwh/year.
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 4.15 4.73 5.22 8.72 12.15 7.34 3.04 1.44 1.49 2.07 2.88 3.69 4.74
Plava, Orcush
0
5
10
15
20
25
30
35
40
45
50
55
60
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Shpeshtesia
Q

m
3
/
s

Figure 57.: Yearly water inflow stability curve for Orusha SHPP

going to be built on Lumbardhi Plav River.

Table 21.: Main parameters for each SHPP of Plav River

Nr

SHPP
H
m
Q
HC

m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Dragash (940 885) 55 5.00 2200 10.0 1.65 0.65 2.30
2 Orush (850 750) 100 7.00 5600 25.6 2.40 1.90 4.30
Sum (940-750) 155 7800 35.6 4.05 2.55 6.60
6.3.6 Lumbardhi of Prizreni River
6.3.6.1 Reani SHPP
Reani SHPP Is situated about 9 km south east of Prizren. It shall be constructed
in the area of Recan. It uses a head of 70 m from quota 670 to 600 m, above the
___________________________________________________________

sea level on the upper stream of the River Lumbardhi Prizrenit. Carrying work shall
be constructed in the area of Stajkovca. The derivation without pressure is an open
channel, at a length of 1.7 km, with a semi trapezoidal section. The channel shall be
constructed on the Rivers left side. The centrals building shall be constructed near
Rean. At the centrals building will be installed two aggregates, Frencis type, with

Rean SHPP, 70 m head, calculated inflow 2.6 m
3
/sek, installed capacity 1500 kW
dhe average yearly electricity generation 6.7 milion kwh/year.
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 2.54 1.52 2.20 2.40 3.24 2.27 1.19 0.79 0.77 0.86 1.83 1.37 1.75
Kurba qendrueshmerise, Recan
0
5
10
15
20
25
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesia, %
Q

m
3
/
s

Figure 58.: Yearly water inflow stability curve for Rean SHPP

going to be built on Lumbardhi Prizreni River.

Table 23.: Main parameters for each SHPP of Lumbardhi of Prizreni

Nr

SHPP
H
m
Q
HC

m
3
/s
N
kw
E mil
kwh
Investimet mil
civil machi
nery
Sum
1 Rean (670 600) 70 2.60 1500 6.7 1.30 0.50 1.80
Sum (670 - 600) 70 1500 6.7 1.30 0.50 1.80
___________________________________________________________

6.3.7 Lumi of Lepenci SHPP
6.3.7.1 Shterpca (Brezovica) SHPP
Shterpca SHPP Is situated about 17 km south west of Ferizaj. It shall be
constructed in the area of Brezovica and Shterpca. It uses a head of 60 m from 890
to 830 m above the sea level. The carrying work will be constructed near the
Brezovica village after the joint with Lepenc of some other branches. The derivation
shall be constructed on the rivers left side. It is mainly with semi trapezoidal channel
and partly with a pipe type siphon, with a length of 2.6 km. The under pressure
basin, the turbines pipes and the centrals building shall be constructed in from of
Shterpca. At the centrals building will be installed two aggregates with Frencis type
turbines, general capacity of 2100 kW.

Brezovica SHPP, with 60 m head, calculated inflow 4.5 m
3
Parametrat kryesor hidrologjik (prurjet mujore n tabeln 24 dhe figuren 59):
Prurja mesatare shumvjeare Q = 3.05 m
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 3.91 3.45 4.15 4.30 4.98 4.49 2.60 1.23 1.10 1.38 1.95 3.04 3.05
Lepenci, Shtrepce
0
5
10
15
20
25
30
35
40
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesia, %
Q

m
3
/
s
Figure 59.: Yearly water inflow stability curve for Shterpca SHPP
6.3.7.2 Lepenci SHPP
Lepenci SHPP Is situated about 11.3 km south of Ferizajt. It is the second and
the last HPP in the rivers scheme. It uses a head of 60 m from quota 640 to 580 m,
above the sea level, in the rivers lower part. The river part between the quota 830
to 640 m, for the geodesic conditions and the high urban density, shows no interest
for the production of electricity. The carrying work shall be constructed near the Don
Madh village. The derivation shall be constructed on the rivers left side. It is
___________________________________________________________

foreseen to be in the shape of an open channel with semi trapezoidal section. The
first part of the channel, about 0.8 km, is almost in the rivers bed, meanwhile the
second part of 0.8 -1 km, passes nearby the auto route and in a inclined terrain. For
this part the channel can have a KK session. The third part passes on the torrent
side and is semi trapezoidal. The entire channel has a length of 3.7 km. The under
pressure basin, turbines pipes and the centrals building will be placed in from of the
Elez Mah village. At the centrals building are foreseen to be installed two Frencis
type aggregates with general capacity of 3500 kW.

Lepenci SHPP, with 60 m head, calculated inflow 7.6 m
3
3
/s

1 2 3 4 5 6 7 8 9 10 11 12 Vjetore
Q
m
3
/ s 6.54 5.77 6.94 7.19 8.33 7.51 4.35 2.05 1.84 2.31 3.26 5.09 5.1

Lepenci , Lepenc
0
10
20
30
40
50
60
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesi a, %
Q

m
3
/
s

Figure 60.: Yearly water inflow stability curve for Lepenci SHPP

going to be built on Lepenci River.
Table 26.: Main parameters for each SHPP of Lepenci River

Nr

SHPP
H
m
Q
HC

m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Shterpca
(890-830)
60 4.50 2100 10.0 2.00 0.70 2.70
2 Lepenci (640-580) 60 7.60 3500 16.0 2.90 1.00 3.90
___________________________________________________________

Sum (890-580 ) 120 5600 35.6 4.90 1.70 6.60
6.3.8 Bajska SHPP
6.3.8.1 Bajska SHPP
Bajska SHPP Is situated about 18 km north-northwest of Mitrovica. For the low
water stream and the geodesic conditions, in this river is foreseen to be constructed
only one HPP. The Bajska HPP will use a head of 85 m from quota 705, to 620 m,
above the sea level. The carrying work will be constructed about 2 km from the
Grubovic village. In order to increase the water quantity is foreseen to take also the
water from the Perka torrent. The derivation shall be constructed on the rivers
right side. It is foreseen to be in the shape of a open channel with semi trapezoidal
section, partly with pipe siphon. It is studied to be even with without pressure pipe
of PVC but it was more expensive. The final solution depends on the future phases.
The entire channel has a length of 3.8 km. The under pressure basin, turbines pipes
and the centrals building shall be constructed near the Bajstancka village. At the
centrals building is foreseen to be installed one Frencis type aggregate, with general
capacity of 300 kW.
Bajska SHPP, with 85 m head, calculated inflow 0.5 m
3
kW dhe average yearly electricity generation 1.4 milion kwh/year. The main
hydrological parameter are average monthly inflow, which are shown in table 27-28
and figure 61:
3
/s

Muaj 1 2 3 4 5 6 7 8 9 10 11 12 Vjetore
Q
m
3
/ s 0.37 0.56 0.73 0.42 0.55 0.16 0.09 0.06 0.05 0.06 0.14 0.40 0.3
Banjska
0
0.5
1
1.5
2
2.5
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesia %
Q

m
3
/
s

Figure 61.: Yearly water inflow stability curve for Bajska SHPP

Table 28.: Main parameters for each SHPP of Bajsk River
___________________________________________________________


Nr

Hidrocentrali
H
m
Q
HC

m
3
/ s
N
kw
E mil
kwh
Investimet mil
ndrti
more
pajisje shuma
1 Banjska ( 705-620 ) 85 0.50 300 1.4 0.95 0.15 1.10
Shuma (705-620 ) 85 300 1.4 0.95 0.15 1.10
6.3.9 Bistrica River
6.3.9.1 Batare SHPP
Batare SHPP Is situated about 15 km north of Mitrovica. Even for this river the
geodesic and hydrologic conditions are limited, thats why it is chosen to be
constructed only one HPP. The Batarta HPP will use a head of 60 m from quota 540
to 480 m above the sea level. This HPP is of the type with dam and derivation. The
conditions are favorable that without having any environmental problems could be
constructed a dam of 50 height by creating a lake with a volume of 10 million m
3
water. This dam shall be of concrete arch type. It shall be constructed about 700 m
before the joint with Iber River. From the creation of the lake about 50 ha of land,
mainly the river bed, will be inundated. The water shall be carried at the central by a
pressurized derivation about 700 long, from which 200m are with tunnel. The
centrals building will be constructed at the left side of Bistrica River near its delta. At
the centrals building is foreseen to be installed one Frencis type aggregate with

Batare SHPP, with 60 m head, calculated inflow 2.3 m
3
hydrological parameter are average monthly inflow, which are shown in table 29 and
figure 62:
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 1.86 2.78 3.67 2.10 2.74 0.79 0.47 0.29 0.27 0.31 0.69 2.01 1.5
___________________________________________________________

Bistrica e Batares
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Shpeshtesi a %
Q

m
3
/
s

Figure 62.: Yearly water inflow stability curve for Batares SHPP
6.3.10 Bistrica SHPP
6.3.10.1 Batare SHPP
Bistrica (Batare) River - can be build only one SHPPP:
Batare SHPP, with 60 m head, calculated inflow 2.3 m
3
hydrological parameter are average monthly inflow, which are shown in table 30 and
figure 62: Average yearly inflow Q = 1.5 m
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 1.86 2.78 3.67 2.10 2.74 0.79 0.47 0.29 0.27 0.31 0.69 2.01 1.5
___________________________________________________________

Bistrica e Batares
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.00 0.20 0.40 0.60 0.80 1.00 1.20
Shpeshtesia %
Q

m
3
/
s

Figure 62.: Yearly water inflow stability curve for Batare SHPP

going to be built on Bistrica River.

Table 31.: Main parameters for each SHPP of Bistrica ( Batare ) River

Nr

SHPP
H
m
Q
HC

m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Batare ( 540-480) 60 2.30 1100 5.8 1.80 0.40 2.20
Sum (540 480 ) ) 60 1100 5.8 1.80 0.40 2.20
6.3.11 Kaandolli River
6.3.11.1 Majanci SHPP
Majanci SHPP Is situated about 17 km north of Prishtina. In general the hydro-
technique conditions of this river are not very favorable. However from the study
made for the whole river it result that could be constructed one HPP by using a head
of 50 m from quota 610 and 560 m, above the sea level. The carrying work will be
constructed near the quota of 610 m at the Majanci valley. The carrying channel will
be developed on the right side of the Kaandoll River, at the end of the hills up to
the joint with Llap River. The channel has a length of 5.6 km. the under pressure
basin, centrals building and the turbines pipes shall be placed on the east part of
the Eljezi hill. At the centrals building is foreseen to be installed one Frencis type
aggregate with capacity of 600 kW.

Majanc SHPP, with 50 m head, calculated inflow 1.5 m
3
___________________________________________________________

3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/ s 1.24 1.85 2.45 1.40 1.83 0.53 0.31 0.19 0.18 0.21 0.46 1.34 1.0
Kacandov, Majance
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10
Shpeshtesia %
Q

m
3
/
s

Figure 63.: Yearly water inflow stability curve for Majanci SHPP

going to be built on Kacandoll River.

Table 33.: Main parameters for each SHPP of Kaandoll River

Nr

SHPP
H
m
Q
HC
m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Majanc ( 610 -560 ) 50 1.50 600 2.9 0.90 0.20 1.10
Sum (610-560 ) 50 600 2.9 0.90 0.20 1.10
6.3.12 Drini i Bardh River
6.3.12.1 Mirusha (Kpuzit) SHPP
Mirusha SHPP Is situated about 14 km south-southwest of Klina. In general the
area is almost field and the constructions for the HPP can raise problems especially
environmentally ones resulting from the inundations. For the above mentioned
reasons, inn the study are foreseen HPP with dams and lakes. The part that shows
more interest is the hilly area of Kepuza, Volijak up to the joint with LumBardhi
Deanit. This HPP uses a head of 15 m between the quota 365 and 350 m. In order
to increase the interest for this HPP is foreseen that after the joint to be used also
the Deans stream. The carrying channel will be developed on the rivers right side.
___________________________________________________________

After the joint, through a carrying work and a channel about 1 km long will be
carried the stream of LumBardhs Deanit. The Centrals building is foreseen to be
placed about 1 km below the joint at the Majli Ariar hillside. The carrying channel
together with the siphon that passes in the LumBardha Deanit has a general
length of 6.2 km. At the centrals building is foreseen to be placed two Propeler type
aggregates (with rotating paddles) with installed capacity of 4600 kW.

Mirusha SHPP, with 15 m head, calculated inflow 45 m
3
Average yearly inflow Q = 30 m
3
/s

Monthly 1 2 3 4 5 6 7 8 9 10 11 12 Yearly
Q m
3
/s 33.3 44.0 37.6 51.1 59.2 31.5 12.6 6.2 11.7 16.5 24.8 31.5 30.0
Drini, Mirushe
0
50
100
150
200
250
300
350
400
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Shpeshtesia, %
Q

m
3
/
s

Figura 64.: Kurba e qndrueshmris pr HEC-in e Mirushes
going to be built on Lumbardhi of Drini i Bardhe River.

Table 35.: Main parameters for each SHPP of Drini i Bardh River

Nr

SHPP
H
m
Q
HC
m
3
/s
N
kw
E mil
kwh
Investment mil
civil machin
ery
Sum
1 Mirusha ( 365-350) 15 45.0 4600 22 9.70 5.00 14.70
Shuma (365-350) 15 4600 22 9.70 5.00 14.70

If the plant doesnt work, the construction of flow unloading in all hydropower plants
and in the high pressure baseness is foreseen. Also the discharge of the water are
foreseen to be placed in the beginning of channels. Intake water will be constructed
___________________________________________________________

with concrete and also should be forecasted and discharge of water maximal intake.
In the rivers that have solid flow, is foreseen to construct the barriers, in order to
stop the solid flow.

In general, the lines for their construction are in the development location of hydro-
power plant units, or nearby. The assessment of construction works is a average
one, but it is differenced according the categorization of land for digging works on
wich analyzes are made. The differentiation also is made based on some other
processes of concrete works and some special difficulties of each object.

The investments assessment of technologic equipment is made according to the
legitimating made proper for this goal. The costs of studies and the projects is
included in the amount of construction works and it is calculated proportional to the
general investment according to Albanian regulations. The construction time is
calculated depending on investment costs of construction works..

Hydro energy parameters of each hydro power plant are calculated bazed on all
hydro geodesic data, flow norm and the curb of day flow resistance. The details are
calculated depending on classifications of the same kind of nature of rivers.

Attached final report are also provided layout of all new hydro pwer plants and they
are listed according to list on the table 36.

Table 36.: List of all layout of new SHPP

NR

Name of the layout
Number of
layout
1

Alocation of all new SHPP on Kosovos map (1:500 000) HC- E - 01
2 SHPP of Kuqisht and Drelaj (1:25000) HC- E - 02
3 SHPP of Shtupeq - (1:25000) HC- E - 03
4 SHPP of Bellaj - (1:25000) HC- E - 04
5 SHPP of Dean - (1:25000) HC- E - 05
6 SHPP of Mal, Erenik dhe J asiq - (1:25000) HC- E - 06
7 SHPP of Dragash dhe HC Orush - (1:25000) HC- E - 07
8 SHPP of Rean - (1:25000) HC- E - 08
9 SHPP of Shterpca - (1:25000) HC- E - 09
10 SHPP of Lepenci - (1:25000) HC- E - 10
11 SHPP of Bajska - (1:25000) HC- E - 11
12 SHPP of Batare - (1:25000) HC- E - 12
13 SHPP of Majanci - (1:25000) HC- E - 13
14 SHPP of Mirusha - (1:25000) HC- E - 14
15 Longitundal Profile of River: Lumbardhi of Pejs HC- E - 15
16 Longitundal Profile of River: Lumbardhi of Deanit HC- E - 16
17 Longitundal Profile of River: Lumbardhi of Lloanit HC- E - 17
18 Longitundal Profile of River: Erenik HC- E - 18
___________________________________________________________

19 Longitundal Profile of River: Plav HC- E - 19
20 Longitundal Profile of River: Lumbardhi of Prizrenit HC- E - 20
21 Longitundal Profile of River: Lepenc HC- E - 21
22 Longitundal Profile of River: Bajska HC- E - 22
23 Longitundal Profile of River: Bistrica ( Batare ) HC- E - 23
24 Longitundal Profile of River: Kaandoll HC- E - 24
25 Longitundal Profile of River: Drini of Bardh HC- E - 25
6.4 Engineering geology data
The geological formation in the regions where are foreseen the small HPP are
diversified, from the heavy ones to the soft. In most of cases we can se even
lodgments. In a more briefed way, the geological formations depend on the location
of the respective HPP. The figure 87 is given the Kosovo geological map prepared
from the author of the geological study in cooperation with Mr. Zenun Elezaj.

The hydrotechnic and engineering geology data are reflected into the topographic
maps of the scale 1:25. 000 published on 1979. The last ones are built in Gauss
Kruger projection. The main isoypses are delineated every 50 m, while the ordinary
isohypses are traced every 10 m.

In figure 36 are shown the topographic sheets, where are designated the small (low
capacity) Hydro Power Stations. The hydro energy exploitation schemes are
indicated at different proportional horizontal and vertical scales. This is made to
highlight the composing parts of the Hydro Power Stations. Album (graphics from
HC- S 02 to HC S 12).

Engineering data for the projected small Hydro power Stations summarize the
followed information:
Geological formation on the Hydro Power Station area
Tectonic features
Hydrogeology
Engineering geology conditions of each Hydro Power Station area,
emphasizing the most typical geodynamic phenomena: slides, dragging,
failure, karst etc.

The physical-mechanical proprieties and the seismic data for the designated Hydro
Power Stations areas are reflected in the common paragraphs.

The list of the geological maps and profiles is shown in the table No. 2.

___________________________________________________________


Figura 65.: Harta Gjeologjike e Kosovs se bashku me vendodhjen e HEC-eve te vegjel

Bashkngjitur Raportit Final jepet ne tabelen 37 lista e vizatimeve t skice-ideve t
hidrocentraleve t vegjl n Kosov (pr pjesn gjeollogjise inxhinjerike).

Tabela 37.: The list of the geological maps and profiles is shown in the table No. 2.
Nr
Denomination Index
___________________________________________________________

6.4.1 Lumbardhi of Peja River
6.4.1.1 Kuqishta Hydro Power Plant
Geological formations
- Lower Triassic and Middle Triassic- Middle J urassic carbonate formations: dolomite
limestones, limestones, platy limestones with cherts etc.
- Middle Upper J urassic shale formations: shales, clay- siliceous rocks etc.
- - Holocene friable alluvial, deluvial etc. sediments.

Engineering geology features
In Kuqishta Hydro Power Station several segments show dragging phenomena, and
limited possibility slides etc. The most problematic segments are the crest of Duvakaj
sector (photo) and the right side of Peja Lumbardhi (Lumbardhi River of Peja), in the
lower stream of the torrent running from Nexhinat e Dreshajve (in the west of el
Osmani Mountain - figura 66). The implementation of the simple engineering
geology measures may prevent the existing or the expected phenomena.
1 Geological Map of Kosova and the designated small Hydro Power Stations
(scale 1:25.000)
HC S 26
2 Explanatory of the Geological Maps and Profiles HC S 27
3 Geological Map of Kuqishte-Drelaj Hydro Power Station (HPS) area. Scale
1:25.000
HC S 28
4 Geological Map of Shtupec HPS area. Scale 1:25.000 HC S 29
5 Geological Map of Belaj HPS area. Scale 1:25.000 HC S 30
6 Geological Map of Deani and LLoani HPS area. Scale 1:25.000 HC S 31
7 Geological Map of Mal, Erenik and Jasiq HPS area. Scale 1:25.000 HC S 32
8 Geological Map of Dragashi and Orushe HPS area. Scale 1:25.000 HC S 33
9 Geological Map of Reani HPS area. Scale 1:25.000 HC S 34
10 Geological Map of Shterpce HPS area. Scale 1:25.000 HC S 35
11 Geological Map of Lepence HPS area. Scale 1:25.000 HC S 36
12 Geological Map of Banjske HPS area. Scale 1:25.000 HC S 37
13 Geological Map of Batere HPS area. Scale 1:25.000 HC S 38
14 Geological Map of Mujancke HPS area. Scale 1:25.000 HC S 399
15 Geological Map of Mirushe HPS area. Scale 1:25.000 HC S 40
16 Geological longitudinal and cross-section profiles of Peja Lumbardhi and
Deani.
HC S 41
17 Geological longitudinal and cross-section profiles of Lloani Lumbardhi and
Ereniku River
HC S 42
18 Geological longitudinal and cross-section profiles of Plava River, Prizreni
Lumbardhi and Lepence River
HC S 43
19 Geological longitudinal and cross-section profiles of Banjska River, Bistrica
stream, Drini Bardhe River and Kaandolli stream
HC S 44
___________________________________________________________


Figure 66.: Lumbardhi of Peja River; Kuqishta SHPP. Unstable geological structure
6.4.1.2 Drelajt SHPP
- Lower Triassic carbonate formations
- Middle-Upper J urassic schist formations, mainly shales and clay-siliceous shales.
- - Holocene friable deluvial, proluvial and alluvial sediments.

Engineering geology conditions
In the right side of Peja Lumbardhi (Lumbardhi River of Peja) where the derivation
channel is designated, in the western part (Laze sector of Drelaj and in the northeast
direction) low stability segments are identified. Dragging phenomena of schist and
young formations and limited size slides are observed (figurat 67-69).

In the order to avoid and mitigate such type phenomena it is necessary to undertake
several engineering geology measures. Jane te nevojshme masa gjeologo
inxhinjerike per shmangien e tyre.
___________________________________________________________


Figure 67.: Lumbardhi of Peja River; Drelaj SHPP. Unstable geological structure

Figure 68.: Lumbardhi of Peja; Drelaj SHPP. Unstable geological structure

___________________________________________________________


Figure 69.: Lumbardhi of Peja; Drelaj SHPP. Unstable geological structure
6.4.1.3 Shtupeqi SHPP
- Carbonate and siliceous formations: limestones, dolomite limestones, and platy
limestones with cherts, radiolarite cherts. The age of the mentioned formations is
Lower Triassic and Middle Triassic to Middle J urassic.

Engineering-geology conditions
In the Shtupeci Hydro Power Station area no negative geodynamic phenomena are
evidenced. Nevertheless the fact that the channel is placed across the carbonate
formation, no serious karst phenomena at surface leading to the eventual water lost
of the derivation channel are evidenced.
6.4.2 Lumbardhi of Deani River
6.4.2.1 Bellesa SHPP
- Paleozoic and J urassic formations represented of phylite schists, marbles, volcanic
intercalations etc.
- J urassic Granitoides and Monzonites
- Holocene friable deluvial, proluvial sediments etc.

In the right side of Deani Lumbardhe, in the East of Guret e Ragovecit or in
southeast of Livadhet e Kelimarkut low stability formations crop out. Limited size
slides, falling blocks (Photo), dragging rock masses etc. are observed.

___________________________________________________________

Its necessary that during the feasibility phase and the project implementation,
detailed engineering-geology studies must be made. They aim to determine the most
appropriate measures avoiding the risk phenomena. In all the Hydro Power Station
area no data for potential slides of considerable size putting in danger Hydro Power
Station objects are identified.

Figure 70.: Lumbardhi of Deani River; Bellesa SHPP

Figura 71.: Lumbardhi of Deani River; Bellesa SHPP. Unstable geological structure
6.4.2.2 Deani SHPP
- Paleozoic and J urassic phylite schists, sandstones, carbonates etc.
___________________________________________________________

- J urassic granitoides and monzonites.
- Pliocene molasses formations
- Holocene friable proluvion, deluvion sediments etc.

No serious problems in the Hydro Power Station area are evidenced. In the proximity
of Prapshtije sector the Triassic schists display some limited slides. It is necessary to
evaluate the potential possibility for the eventual slide of the limited size. This aspect
is probable due to the trend dipping of the different type schists.

As is concluded for the Belaj Hydro Power Station, in the Deani Hydro Power
Station area, no data on potential slides of considerable size putting into the danger
the Hydro Power Station Objects are evidenced (figura 72).

Figure 72.: Lumbardhi of Deani River
6.4.3 Lumbardhi of Lloani River
6.4.3.1 Lloani SHPP
Geological Formations
- Paleozoic and Triassic schist formations
- Middle Triassic carbonate formations etc.
- Pliocene molasses formations
- - Holocene friable deluvial, proluvial etc. sediments of scarce distribution

The Middle Upper J urassic tectonic-olistostromic formations, Triassic- J urassic
limestones, tectonic serpentinite fragments etc. and the friable fluvioglacial, deluvial,
proluvial etc. sediments create many problems in both derivation channels of Mali
Hydro Power Station. It is to emphasize that in the sectors where will be set the
intake objects of two derivation channels, the under pressure basin, the pressure
___________________________________________________________

tubes and station building no important engineering-geology problems are
evidenced.
6.4.4 Ereniku River
6.4.4.1 Erenik-Mal SHPP
The geological formations of Mali Hydro Power Station area and around it, and also
of Ereniku and J asiqi Hydro Power Stations areas are various and of different type.

In this study phase it is not possible to carry out geological mapping. There is
developed an intensive tectonic picture, while the deluvial and moraine cover render
more difficult the field observations.

- Triassic-J urassic carbonate sediments
- Triassic volcano-sedimentary formations
- Middle - Upper J urassic tectonic-olistostrome formations
- Serpentinite formations
- Pleistocene-Holocene friable deluvial, proluvial, alluvial sediments etc.

The Middle Upper J urassic tectonic-olistostromic formations, Triassic- J urassic
limestones, tectonic serpentinite fragments etc. and the friable fluvioglacial, deluvial,
proluvial etc. sediments create many problems in both derivation channels of Mali
Hydro Power Station.

The covered terrains do not allow assessing exactly all the problematic sectors. In
the bedrock outcrops, falling blocks (Photo), dragging phenomena and the week
tectonic zones are observed. The last one may incite potential massive slides, but it
is not excluded the development of the limited size slides.

During the feasibility study and the project implementation detailed engineering
geology investigations are necessary. They must be concentrated along two
derivation channels with the intention to determine the needed engineering-geology
measures.

It is to emphasize that in the sectors where will be set the intake objects of two
derivation channels, the under pressure basin, the pressure tubes and station
building no important engineering-geology problems are evidenced.
___________________________________________________________


Figure 73.: Erenik Mal SHPP. Unstable geological structure

Figure 74.: HC Erenik Mal SHPP: Unstable geological structure


___________________________________________________________________________
Prepared by: Albanian Association of Energy and Environment for Sustainable Development
84

Figure 75.: Ereniku River. Unstable geological structure
6.4.4.2 Erenik SHPP
- Triassic-J urassic carbonate formations
- Triassic basaltic formations
- Pleistocene-Holocene friable fluvioglacial, alluvial and proluvial sediments.

Nevertheless the unstable formations partially spread in the Ereniku area no
engineering geology problems are foreseen. It is designated that one turbine of Mali
Hydro Power Station will have water supply by the tubes of Ereniku Hydro Power
Station. The field observations in this one do not have any evidence of engineering-
geology problems.
6.4.4.3 J asiqi SHPP
- Triassic-J urassic carbonate formations
- Middle Upper J urassic tectonic-olistostromic formations
- J urassic porphyry granites
- - Pleistocene-Holocene fluvioglacial, deluvial, proluvial sediments

In the derivation channel of this Hydro Power Station many engineering geology problems
are foreseen. The majority of the geological formations in the right slope of Ereniku River is

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85
of low stability and highly faulted. The attached photos show limited size slides, dragging
formations and weak zones.

During the feasibility assessment study and J asiqi Hydro Power station construction
detailed engineering geology studies are necessary. It is need to determine the
appropriate measures for the derivation channel security. The crest sector in the
right side of Ereniku River where is planned the setting of the pressure basin,
pressure tubes and the Station building no stability problems are recognized.(figura
76).

Figure 76.: Erenik River. Area of J asiqi SHPP. Unstable geological structure
6.4.5 Plava River
6.4.5.1 Dragashi SHPP
- Ordovician-Devonian low metamorphised pelitic-psammitic
shales, rare quartzite intercalations
- Ignimbrite formations
- - Pleistocene-Holocene lake coarse, fluvioglacial, proluvial sediments

No important engineering geology problems are evidenced. Several limited problems
especially with stream proluvions, some time accumulated in the increased volume
are easy to resolve. (figurat 77-78).


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86

Figure 77: Dragash SHPP. Geological structure

Figure 78.: Plava River nearby Zymi. Unstable geological structure
6.4.5.2 Orusha SHPP
-Ordovician- Devonian low metamorphised pelite-psammite
formations with rare quartzite intercalations
- Ignimbrite formations

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87
- - Pleistocene-Holocene lake coarse, fluvioglacial, proluvial sediments.

No important engineering geology problems are recognized.
6.4.6 Lumbardhi of Prizreni River
6.4.6.1 Reani SHPP
-Ordovician- Devonian low metamorphised pelite-psammite formations
- - Holocene friable deluvial, proluvial etc. sediments

Kushtet gjeologo inxhinierike
Formacionet terrigjene te Paleozoikut te Poshtem mbi te cilat do te ndertohen veprat
e hidrocentralit te Reanit, paraqesin vetem probleme te vogla te qendrueshmerise.
E njejta gje mund te thuhet edhe per depozitimet e shkrifta qe takohen ne kete
zone. Me masa te thjeshta gjeologo inxhinierike mund te shmangen problemet e
vogla qe do te dalin ne kanalin e derivacionit te hidrocentralit.
6.4.7 Lepnci River
6.4.7.1 Shterpcs (Brezovics) SHPP
- Middle Triassic-Middle J urassic carbonate-chert formations
- Serpentinized peridotites
- Middle Upper J urassic tectonic olistostrome formations: shales with sandstone
and chert blocks
- -Holocene fluvioglacial sediments

Small engineering geology problems only in the derivation channel segment are
foreseen. They are due to the fluvioglacial sediments of very much mobile character.
These formations are found near Shterpca region. Simple engineering geology
measures easily may eliminate them.

In the intake gate of Shterpca Hydro Power station, near Brezovica village, at the
Gradishta hill bottom, very stable peridotite formations crop out. The crest formations
where is planned to build the pressure basin, to set the tubes and the Station object
the rock formations are of stable character as well as.


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88

Figure 79.: Lepenci River and Area of Shterpc SHPP

Figure 80.: Lepenci River. Shterpca SHPP. Unstable geological structure
6.4.7.2 Lepenci SHPP

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89
- Silurian-Devonian weakly metamorphised shales-sandstones with marbled
limestone intercalations.
-Lower Cretaceous and Upper Cretaceous flysch formations mainly made of
sandstones and mudstones.
-Pliocene molasse formations
- - Holocene friable proluvial, deluvial etc. formations.

Many engineering geology problems for the Lepenci Hydro Power Station derivation
channel are foreseen. This situation is due to the low stability formations and the
intensive fault tectonics. The schists and the friable sediments created numerous
weak segments characterized of dragging masses and limited slides.

Such type phenomena are observed in Brodi northeastern part in both sides of
Lepence River (Photo) and in the Banice St. sector. It is to emphasize that no
potential slides of considerable size are recognized, which may impede the Hydro
Power Station object building. However during the feasibility studies and Hydro
Power Station construction detailed engineering geology studies are recommended
(figura 81).

Figure 81.: Lepenci SHPP. Unstable geological structure
6. 4. 8 Dardana River
6.4.8.1 Kamenics (Dardans) SHPP
- Peridotite and serpentinite formations
- Middle-Upper J urassic tectonic-olistostrome shale formations
- Senonian flysch : marl, mudstone and quartz sandstone formations
- - Holocene friable alluvial, deluvial sediments

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90
No important engineering geology problems are recognized.
6. 4. 9 Bajska River
6.4.9.1 Bajska SHPP
- Peridotite and serpentinite formations
- Middle-Upper J urassic tectonic-olistostrome shale formations
- Senonian flysch : marl, mudstone and quartz sandstone formations
- Holocene friable alluvial, deluvial sediments

- No important engineering geology problems are recognized
6. 4. 10 Bistrica River
6. 4. 10.1 Batare SHPP
- Peridotite formations
- - Holocene friable alluvial, proluvial, deluvial sediments

Peridotite formations of the Batere Hydro Power Station area are stable and do not
present any engineering geology problems.
6. 4. 11 Kaandolli River
6. 4. 11.1 Majanci SHPP
-Middle - Upper J urassic tectonic-olistostrome formations: phylite schists with rare
sandstones, calcareous shales, marbles,
- Senonian flysch formations: marls, siltstones, basal conglomerates,
- - Pleistocene-Holocene friable alluvial, deluvial sediments.

Small engineering geology problems are evidenced in the friable alluvial, and
deluvial sediments. They are easily over passed by the implementation of simple
engineering geology measures.
6. 4. 12 Drini i Bardh River
6. 4. 12.1 Mirusha SHPP
- Peridotite formations
- Middle Upper J urassic tectonic-olistostrome formations: blocks in the matrix
- Upper J urassic up to J urassic-Cretaceous Volljaku flysch formation: sandstones,
clays, and siliceous rocks.

___________________________________________________________________________
91
- Pliocene molasse formations: clays, clay-marls, marls etc.
- - Holocene friable proluvial, deluvial etc. sediments.

Figure 82.: Area of Mirusha SHPP its geollogical structures

Figure 83.: Area of Mirusha SHPP Unstable geological structure
6.5 Physical-Mechanical proprieties of the formations
In this chapter are given several generalized physical-mechanical proprieties of the
main formations where the construction of the Hydro Power Station objects is

___________________________________________________________________________
92
designated. It is made use of the bibliographic data for the similar regions. For the
needs of feasibility study (project-idea phase) and the project implementation, there
are taken into the field the most representative samples with intention to determinate
in the laboratory the accurate physical-mechanical indices.

The most principal physical mechanical features of rocks influencing to their bearing
and stability capacity are the followed:

Volume weight in the natural state (), porosity (P), cohesion(c), water absorption,
strength, one axe (Rsh), section (Rp) and extensional (Rt) compression strength,
general deformation module (Ed), internal friction angle (), allowed load for the
surface unit () etc.

The principal formations found in the areas where is designated the construction of
the small Hydro Power Stations are grouped as follow:
Carbonate formations
Flysch formations
Schist, mainly clay-sericitic shale formations
Conglomerate and sandstone formations (Veruccano formation)
Ophiolite, mainly peridotite formations
Molasse formations
- Friable fluvioglacial, alluvial, deluvial, proluvial etc. sediments
6.5.1 Volume weight ()
In Peja Lumbardhe (Lumbardhi Pejes), in the areas of three Hydro Power Stations
(Kuqishte, Drelaj, Shtupec), are available these data (J eftiq etc. 1990):

In the limestones it ranges in large limits: 2,4 2, 74 gr/cm
3

Platy dolomitized limestone 2,677 gr/cm
3

Breccia limestone 2,678 gr/cm
3

Marl and marl limestone 2,679 gr/cm
3

Clay-sericitic shales 2,2-2,72 gr/cm
3

Veruccano conglomerates etc. 2,7 gr/cm
3
Peridotite 2,6 3 gr/cm
3

Molasse 2,4 gr/cm
3

Friable formations up to 2,0 gr/cm
3

6.5.2 Porosity (P)
Generally the porosity ranges not much 3-8 %. Maximum value belongs to breccia
limestone (8,5 %) and minimum value to different type shales (3-4 %). In the case
the porosity is below 5 % the rock is considered compact.
6.5.3 Water absorption
In the rare cases the humidity reaches 0,53 % (in micro grained limestone).
Generally it ranges 0,1-0,3 %. In the limestones of Peja Lumbardhi, the humidity is
0,3 % (J evtiq etc. 1990).

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93
6.5.4 Compression strength (stability) (Rsh)
Compression strength (the stability in compression) in the limestones ranges in wide
limits. Generally it is 600-800 kg/cm
2
, but in the micro breccia limestone it decreases
up to 480 kg/cm
2
, whereas in dolosparitic limestones it reaches up to 1036 kg/cm
2
. In
the shales, compression strength is about 400 kg/cm
2
, while in peridotites vary 600-
800 kg/cm
2
. In the J urassic-Cretaceous flysch it is very low: 200-300 kg/cm
2
.
6.5.5 Strength (F)
In the limestones the strength ranges from 5 to 10. It is in the function of structural
homogeneity of the rock and the carbonate matter purity. The clay content leads to
the rock softening.
6.5.6 General deformation module (Ed)
In the limestones the general deformation module ranges from 2 x 10
4
kg/cm
2
up to
7,7 x 10
4
kg/cm
2
. In the biomicrosparitic limestones etc. it may reach the values 6.6 x
10
5
kg/cm
2
. In the clay-sericitic shales, the general deformation module on average
is 2,15 x 10
4
kg/cm
2
, whereas the Veruccano sandstones have values 5,58 x 10
4

kg/cm
2
.
6.5.7 Internal friction angle ()
This index in the limestones is up to 60 and more, while in the terrace deposits it is
18 - 26 . In the friable sediments it is 16 - 20 .
6.5.8 Allowed load ()
Generally, in the terrace deposits it ranges 2-4 kg /cm
2
, while in friable sediments it is
around 1,8 kg cm
2
.
6.6 SEISMICI TY
Kosova is an active seismic region. There are known numerous seismic source
zones represented of faults or active faulted zones generating earthquakes.
Especially the knot zones where the faults cut each other are the most active spots
for the quakes (Elezaj 2003, 2006).

Kosova seismic model is issued by the combination of the seismologic and
geological data. In its framework is determined the seismic activity of the main
seismic sources (Elezaj 2003, 2006).

Generally, in the western and southern areas of Kosova where is designated the
construction of the majority of the small Hydro Power Stations, the known and the
expected seismic activity is not high. The dangerous zones characterized of the
active tectonic faults in the Rafshi Dukagjinit including Peja, Deani, and Shari etc.
tectonic units are outside of the projected Hydro Power Station areas. Thus, for
example Vrelle-Istog, Peje-Dean, Rubik etc. major faults do not cross the above
mentioned zones. In any way it to stress the most important are crossed fault zones
of different trends. Following this discussion, Peje-Gjakove-Prizren-Dragash zone is
one of the most powerful seismic zone of Kosova. In this area the strongest quakes
are registered. In Prizren (1456 year) is registered the earthquake with maximum

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94
magnitude 6,6 (Richter scale). Peja (1662 year) was hit by the quake with magnitude
6,0 (Richter scale) as well as.
7 The Assessment of Preliminary Environmental I mpact
Kosovo as a signatory of the Treaty for the Establishment of Energy Community is
obliged to follow the respective Directives (including Acquis for the Environment):
Lowering the past damages;
Reduction of activities following the energetic sector; and
Prevention of pollution from future activities

Water pollution from the different mining operations
The quantity of untreated water flowing in the Sitnica and Drenica Rivers is 18000
m3/year. In figure ....the water pollution of these rivers is given.

Figura 84.: Water pollution of Sitnica
River
Figura 85.: Water pollution of Drenica
River

In the table are given the characteristics of the polluted water from the Bardh and
Mirash mines.
Table 38.: The characteristics of the polluted water from the Bardh and Mirash
mines
Parametrs Bardhi Mine Mirashi Mine
pH 7.2-8.4 6.7-8.7
Suspens particulates (mg/ l) 350-900 400-750
Oxigen treated at water (mg/ l) 7.4-17.8 5.1-14.8
Cl (mg/ l) 50-330 30-220
NOx (mg/ l) 0.9-272 2.7-271
SO4 (mg/ l) 55-2304 534-2014
Fenole (mg/ l) 0.007-0.015 0.004-0.05

Based on European Standards.
Particles (mg/l) to have fish is 25 mg/l
Phenol content in potable water should be 0.02 mg/l.
The comparison of standard values with the real ones for the two above mentioned
rivers shows that we have much to do with the polluted waters.

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95
7.2 The effect in the environment from the use of waters for the
generation of electricity
The water is part of the general recycling, known as the hydrologic cycle, or water
cycle that operates without interruptions, day and night, it gathers, cleans up,
dissipates and serves for many scopes during its cycle. This cycle is the most
important cycle in nature and is led by the steaming and condensation processes. As
a result, around the world special attention is given to the better management of
water resources that have multiple uses in many fields of life:
The lack of water as a problem faced by many countries in the world (including some
areas of our country) derives from bad management of water resources including a
series of other factors where the most important are:
Pollution of surface and underground waters,
Degradation of potable water quality,
Decrease of level of underground waters,
Unsuitable ground surfaces for water reserves,
Inundations ,
Erosion and gathering of solid materials rivers and lakes beds,
Drainage together with the corrosion of humus from the cultivated lands,
Degradation of gulfs, bays, river-deltas and coast.

In order to fulfill the need for irrigation water, potable water, fishing, tourism and the
production of electricity, many countries have built dams to gather the rivers and
torrents waters during the seasons with high flow for using it during the seasons
when the precipitations are low and the demand is high. Artificial dams and
reservoirs in some cases could damage the surrounding water eco-systems. The
new dams that are constructed in some instances create conflicts in different areas
that depend upon the earnings from river tourism. Many times land owners, energy
companies, water supply companies have conflicts with diametrically opposing
interests for fulfillment of their needs.

Above we presented some general problems that imply pollution to the water and its
surrounding environment from the construction of dams for different scopes. Now let
us pass to a more detailed analysis of the environmental problems resulting from the
construction of HPP. A part of potential wastes mentioned above are valid for the
HPP especially when they have to do with HPP and big reservoirs. It should be
stressed from the beginning, that even the big HPP with accumulating reservoirs,
have a huge impact on the environment, which have led some scientists and
ecologists to classify this technology as a non-renewable source of energy (always
focusing on big HPP with big dams).

Table 39.: Advantages and Disadvantages to the environment from the construction of dams
for the production of electricity and other scopes
Advantages Disadvantages
Increase of surface reserves and prevention of
inundations.

Possibilities for growing fish and use of reservoir
for water sports.

Inundation of entire surfaces of land from the
construction of the reservoir and displacement of
population.

Loss of very rich seasonal fields created as result
of nutritive elements coming from the river
dredge.

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96
Dams created to prevent the inundation and to
irrigate the fields can be used for generation of
electricity through HPP.
Huge surfaces of reservoir water increase the
loss of water as result of intensive evaporation
and increase of salt concentration in it. This on
the other hand can bring to the salting of land if
the water is used for irrigation.

Increase of diseases, which are connected with
harmful microbes that multiply in the stagnant
waters as in the case of big reservoirs.

Catastrophic danger if the dam is destroyed.

Filling of the reservoir with sediments lowers its
longevity

HPP is an advanced technology that is used in almost all the countries of the world.
Norway, Brazil, Venezuela, Albania, Sri-Lanka and other countries fill their needs
with electricity from the HPP. As we mentioned above, the construction of big HPP
(with big reservoirs) in some cases brings serious problems to the environment.
Entire surfaces of land inundate, from the construction of the reservoir, people are
displaced to other areas causing this way many social conflicts. In table 39 are given
the advantages and disadvantages from the construction of HPP with big
accumulating reservoirs and high dams.
7.3 HPP construction plan and its implementation schedule
The construction/rehabilitation plan for the respective HPP is composed of two
phases:
First phase: project preparation;
Second phase: HPP construction/rehabilitation
7.3.1 Timing schedule for the project preparation (First phase)
In the table 40 the steps to be undertaken for the realization of the timing schedule
for the preparation of the entire project are given.

Table 40.: Timing schedule for the preparation of the project (First phase)
Nr Actions/ Month Year 2006
V VI VII VIII IX X XI XII
1 Completion of Hydrologic Study
2 Completion of Hydro-mechanic and Energetic
Study

3 Completion of Electric Study for connection of HPP
with Distrubution Network (Fiber Substation)

4 Completion of Geological Study
5 Completion of Financial Study
6 Completion of Business Plan
7 Completion of Environmental Impact Assessment
Study

8 Getting of permissions from the Commune and
Prefecture

9 Getting of permission for water basin

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97
10 Preparation of the whole file for requesting the
concession permission

11 Circulation of the file to all Ministries for approval
of concession permission

12 Approval fo Concession Permission for
construction of Gostima HPP by a Government
Decree

13 Preparation of the comprehensive ingineering
study for all HPP equipment

14 Definition of entire technical specifications for all
HPP equipment

15 Organization of International Tender for selection
of the contractor for completion of civil works

of contractor who will supply and installl electro-
mechanical equipment

of the contractor to perform the testing


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98
7.3.2 HPP Timing schedule for construction/rehabilitation
To make the construction of the respective HPP possible, the private investors should prepare a detailed plan given in table 41:
Table 41.: Time schedule for construction of each HPP
Nr. Items to be completed 2007 2008
1 2 3 4 5 6 7 8 9 1
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
1 Preparation of construction site
2 Construction of water in-take
3 Construction of derivation feeding channels
4 Construction of siphon
5 Construction of pressure basin
6 Construction of pressure pipe
7 Preparation of the Site and Building of the
Plant

8 Construction of plants building
9 Construction of spillage outlet
10 Purchasing and installation of turbines
11 Purchasing and installation of generators
12 Purchasing and installation of transformers
13 Construction of electric line connecting HPP
with Fiber substation

14 Installation of all electro-mechanical
equipment

15 Auxiliaries
16 Engineering works
17 Testing
18 Commissioning


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99
7.4 Possible effects in the environment during the HPP
construction, rehabilitation or empowering phase
7.4.1 Effects on the environment during the construction of the road to
be used for the construction of the derivation channel, turbines pipes,
central building and the electric line for the connection of the HPP with
the respective substation
From the preliminary studies made in the areas where the HPP will be constructed,
the results in most cases will be no damage to the forests.

The populations of these areas need not only the land but also the forest materials,
but in many cases they have deforested the area because of trade of the woods, as
they have no other source of living in this area. The local population has high
unemployment rate and a high pressure for employment thats why the construction
of the HPP shall have positive effects. Here we must stress that in these areas
different kinds of wild animals live.
7.4.2 Impact on the environment during the preparation of the Central
buildings site
An impact on the environment has the preparation of the construction site of the
electric centrals of the respective HPP. The opening the square (30X26 m) and
improvement of this short distance of the road will have an emission of dust in
atmosphere at low quantities as a result of different projects at the construction site.
Also, from the planners, the construction site of the electric central, during the
economical benefit estimation period should be chosen in a place with gravel in
order to avoid the occupation of land.
7.4.3 Impact on the environment as a result of the collection of materials
to be moved from the sites where the centrals will be built
Based on the unchanged quotas, where the centrals buildings will be built, it shows
that there are only few materials to be moved away from the respective sites.
7.4.4 Impact on the environment as a result of bringing the materials to
the construction site
As we have to do with an important implant with considerable volume of construction
materials they will be bring to the site through trucks of medium and small carrying
capacity. All these cars will increase the traffic in the respective area and at the
same time will increase the level of noise. It should be stressed here, that upon the
whole the level of traffic in these areas is very low. As result the traffic of the different
autos shall not bring anything new and shall not create problems with the noise.
7.4.5 Impact on employment as a result of HPP construction
Upon the occasion, for the realization of the project during the construction phase
70-200 workers will be required, depending upon the size of the HPP, the number of
specialists shall 10-15% of the workers; engineers, technicians and construction
specialists. This will have a positive impact for the reduction of unemployment that in
this area is at high levels, 40-50%. The employment of the workers shall be for 10
year period. The construction of a number of HPP, especially opening of derivation

___________________________________________________________________________
100
channels, decanting and other works of under pressure basins shall make possible
their employment and improvement of welfare of their families.
7.4.6 Impact on the environment of dangerous materials to be used
during the construction of the HPP
The materials used during the construction phase could be dangerous after their use
and as such we can mention: cleaning solvents, different paints, oils and fire
materials to be used for moving the portable electric generators. These generators
shall be used for supplying with electricity the mines to be used during the opening of
derivation channels, decanting, under-pressure basins, and pressured pipes and
centrals buildings.
7.5 Possible impacts to environment during HPP operating phase
Possible impacts to the environment during the operating phase for every HPP are
connected with the presence of electro-static fields, which shall be shown later to
have almost zero effect on the life of humans, animals and other ecosystems,
especially when we have voltage levels up to 35 kV. Other impacts to the
environment, which are very positive ones, are the reduction of gases which cause
the greenhouse effect, and gases causing acid rain, which shall be treated in the
respective sessions.
7.5.1 Endogen flows and their risk
One of the most discussed effects of a generation central (as is the case of the HPP
taken into analysis), a line, substation or group of lines of different voltages is the
effect of electric and magnetic fields on the humans and environment in general. As
a consequence, the following shall present in more detail the possible side effects to
human beings and the environment, the construction of the HPP and lines that it will
be connected to:
When the density of the current in the body is at the limits
2
) 10 1 (
m
mA
=
, we do not
have health problems, the densities of the currents are at the threshold of their
perceiving.
2
) 100 10 (
m
mA
=
, can be
seen clear occurrences that affect the visional system and the central nervous
system.
2
) 1000 100 (
m
mA
=
, can be
seen clear occurrences of stimulation of exiting tissues and could be health
consequences.
When the density of the current in the body is higher than the limit
2
) 1000 (
m
mA
=
,
ekstrasistola dhe fibrilacione ventrikulare can be seen.

It is known that the ions have preoccupying effects for the human health. The ions
are very active oxidants that can toxic for living beings. Among them we can mention
headaches, megrim, breathing problems and irritations to the eyes and ears,
stomachache and vomiting. In 1978, the Sanitary Commission of New York State

___________________________________________________________________________
101
brought attention to high voltage lines to determine the maximal voltage authorized
exposure and the safe distance, or the corridors around the line. It decided on a
voltage of 160 kV/m. It was the first time that a public commission determined rules
regarding the exposure to an electric field.

The conclusion deducted from the above norms is that based on the above
mentioned indicators, the electro-magnetic fields of the high voltage lines (110, 220,
400 kV and the substations (400/220/110 kV) of the transmission network are far
(and below) the above recommended limits, so there are no health problems. This is
true also for the low voltage line 10 kV, 20 kV and 35 kV that will connect the
respective HPP with the existing substation in that region
7.5.2 Reduction of gases that produce the greenhouse effect
The known method of the International Panel of Climate Changes recommend that
the reduction of the GHG (Green House Gas) resulting from the construction of small
HPP. The Global Warming Potential is expressed through the emissions of CO2,
N2O, CH4 expressed in CO2-equivalent. The determination of the CO2 effect in the
GWP is equal to 1. Meanwhile for the other gases is expressed through values given
in table 8 for a 100 year period taken into analysis.

Table 42.: Kontributi i tri gazeve kryesore n efektin e ngrohjes gobale
Gazet me efekt ser Periudha 20- vjeare Periudha 100 - vjeare
Dioksidi i Karbonit CO2 1 1
Metani CH4 123 21
Oksidi i Azotit N20 120 310

Let us analyze the emissions from an equivalent TPP working on coal (as is the case
of the actual situation in Kosovo and the same tendency is foreseen for the future) in
comparison with the new HPP or those to be rehabilitated together with the Dikans
HPP that will be rehabilitated. Based on the GACMO software, prepared from the
Danish Institute of Environment, are calculated the GHG (CO2, CH4, N2O) and CO2
eqv. are shown in the figure 86-89.
1983
8
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
15000
16000
17000
18000
19000
20000
CO2

29.2
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
N2O

2.14
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
2.3
2.4
2.5
CH4

19862
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
13000
14000
15000
16000
17000
18000
19000
20000
CO2 eqv.

Figure 86.: CO
2
Emission Reduction
(ton) from Dikanci
SHPP
Figure 87.: N
2
O
Emission Reduction
(ton) from Dikanci
SHPP
Figure 88.: CH
4
,
Emission Reduction
(ton) from Dikanci
SHPP
Figure 89.: CO
2

eqv.

Emission Reduction
(ton) from Dikanci
SHPP

___________________________________________________________________________
102
The conclusion of the above analysis is that as consequence of
construction/rehabilitation of the Dikans HPP, it will be possible for the reduction of
the GHG in total value for 25 year longevity of the HPP of ..... tons if we substitute a
TPP with steam cycle based on contemporary technology and with lignite as is the
case of Kosovo.

This conclusion is very important as it can be used for selling these emissions to the
countries that are obliged to fulfill the targets of Kyoto Protocol. Buying and using the
Clean Development Mechanism (CMD) of the Kyoto Protocol will make it possible to
secure grants foreseen to cover part of the initial investment and to increase further
more their financial and environmental benefit of the HPP.

In the figure 90 the net cash-flow is given discounted for the first case taking into
consideration the Dikans HPP that will not benefit from selling the reduction of
emissions. The analyze shows that the investment payback period is about 3.5
years, 7.7 years and 18.4 years for the electricity selling price of 32, 45 and 70
Euro/MWh.

Figure 90

In the figure 91-93 the net cash-flow is given discounted for the first case taking into
consideration the Dikans HPP that will not benefit from selling the reduction of
emissions. The analyze shows that the investment payback period is about 3.5
years, 7.7 years and 18.4 years for the electricity selling price of 32, 45 and 70
Euro/MWh 45 /MWh dhe mime t shitjes s emetimeve t reduktuara 5 /tCO2, 10
/tCO2 dhe 15 /tCO2.

___________________________________________________________________________
103

Figura 91

Figura 92


___________________________________________________________________________
104

Figura 93

Investment payback period is about 7.7 years for the electricity selling price of 45
Euro/MWh without taking into consideration the selling of CO2 emissions, reduced
as a consequence of the construction of the HPP. The analysis showed that taking
into consideration even the selling of reduced emissions the payback period in
reduced to 7.5 years, 5.5 years and 4.4 years for reduced emissions selling price of
5 /tCO2, 10 /tCO2 and 15 /tCO2. The advantage of using the CDM instrument is
important and from the Kosovos Ministry of Energy and Mines and the Ministry of
Environment should be taken measures to use this mechanism.

Also in the figure is given the cost of reduction for unit of a ton CO2 equivalent for
al the HPP. The analysis of the figure shows the minimal cost for the reduction of
Dikans HPP and further on Burmi HPP and the others. The analysis shows that for
all the HPP to be rehabilitated, they have a cost for emission reduction lower than
the new HPP. The selling price for reduced emissions have been taken from a
sensibility analysis at 5 /tCO2, 10 /tCO2 and 15 /tCO2 and the analysis shows
that we have sensible benefits (as we shall see in the next session of economic
analysis) even for a minimal price of 5 /tCO2.

___________________________________________________________________________
105
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Euro/ton CO2 eqv
CER Price [7.5 Euro/ton CO2 eqv.]
CER Price [10 Euro/ton CO2 eqv.]
CER Price [5 Euro/ton CO2 eqv.]

Figura 94.: Figure .: Cost for reducing the GHG emission for every HPP

In the table 43 the value for reducing the emissions for the main gases causing the
green house effect for each HPP new or to be rehabilitated is given.

Table 43.: Analys of GHG reduction from each HPP
Name Power
[kW]
Energy
[Milion
kWh]
CO2
Ton/ year
N2O
Ton/ year
CH4
Ton/ year
CO2 eqv.
Ton/ year
1: Kuqisht HPP 3900 17 19838 29.16 2.14 19862
2: Drelaj HPP 6200 27 31507 46.32 3.40 31545
3: Shtupeq HPP 7600 35 40843 60.04 4.41 40892
4: Bellaj HPP 5200 25 29173 42.88 3.15 29208
5: Dean HPP 8300 39 45510 66.90 4.91 45565
6: Lloan HPP 3100 14 16337 24.02 1.76 16357
7: Mal HPP 4000 18 21005 30.88 2.27 21030
8: Erenik HPP 2000 9 10502 15.44 1.13 10515
9: J asiq HPP 1900 9.7 11319 16.64 1.22 11333
10: Dragash HPP 2200 10 11669 17.15 1.26 11683
11: Orush HPP 5600 25.6 29873 43.91 3.23 29909
12: Rean HPP 1500 6.7 7818 11.49 0.84 7828
13: Brezovic HPP 2100 10 11669 17.15 1.26 11683
14: Lepenc HPP 3500 16 18671 27.45 2.02 18693
15: Bajsk HPP 300 1.4 1634 2.40 0.18 1636
16: Batare HPP 1100 5.8 6768 9.95 0.73 6776
17: Majanc HPP 600 2.9 3384 4.97 0.37 3388
18: Mirusha HPP 4600 22 25672 37.74 2.77 25703

___________________________________________________________________________
106
All New HPPs 63700 294.1 343194 504.49 37.06 343608
19: Dikancit HPP 1900 10 11669 17.15 1.26 11683
20: Radavcit HPP 350 1.8 1634 2.40 0.18 1636
21: Burimit HPP 800 4.6 4901 7.20 0.53 4907
22: Prizrenit HPP 330 1.4 1284 1.89 0.14 1285
23: Shtimes HPP 140 0.6 700 1.03 0.08 701
All Existing HPP 3520 17.3 20188 29.68 2.18 20212
7.5.3 Reduction of acid rain gases
Also, based on the LEAP (Long Energy Alternative Planning program, which is used
world wide for energetic and environmental calculations and calculation of energy
scenarios, it was possible to make the calculation of gas emissions causing the
effect of acid rains (SO2, CO, NOx and NMVOx) local pollution through the creation
of smog 30-37. In figure ...-... the reduction of emissions for the four gases causing
acid rain as result of the rehabilitation of the Dikans HPP are given versus the
construction of an equivalent TPP at the same capacity as the HPP.
5556
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
SO2

64.3
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
NOx

32.1
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
CO

4.3
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
NMVOX

Figure 95.: SO
2

Emission Reduction
(ton) from Dikanci
SHPP
Figure 96.: Emetimet
e NOx te reduktuara
(ton) nga HEC-i
Dikancit
Figure 97.: CO
Emission Reduction
(ton) from Dikanci
SHPP
Figure 98.: NMVOx
Emission Reduction
(ton) from Dikanci
SHPP

In figure 99 the cost for the reduction of SO2 emission from each HPP is given and
this cost is compared with the coal TPP (New TPP to be constructed in Kosovo
fulfilling the EU and International Financial Institutions norms), oil TPP (diesel
marine) and TPP with natural gas. As it is shown in the figure, the reduction of SO2
emissions at a cost almost five times lower than the TPP with coal and so one in
comparison with other TPP technologies. This is another very important advantage
that came out in quantitative way from this study.

___________________________________________________________________________
107
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
EURO/ton SO2
Kosto Miminale e Reduktimit ne TEC-e me Gaz [EURO/ton SO2]
Kosto Miminale e Reduktimit ne TEC-e me Nafte [EURO/ton SO2]
Kosto Miminale e Reduktimit ne TEC-e me Qymyr [EURO/ton SO2]

Figure 99.: Cost for reducing SO
2
Emissions for each HEC

Furthermore the calculated reduction of emissions from each HPP is given in the
table ... respectively for the gases: SO2, CO, NOx and NMVOx.

Tabele 44.: Analys of acid rain gases reduction from each HPP
Name Power
[kW]
Energy
[Milion
kWh]
SO2
Ton/ year
NOx
Ton/ year
CO
Ton/ year
NMVOX
Ton/ year
1: Kuqisht HPP 3900 17 5556 64.26 32.13 4.28
2: Drelaj HPP 6200 27 8824 102.06 51.03 6.80
3: Shtupeq HPP 7600 35 11438 132.30 66.15 8.82
4: Bellaj HPP 5200 25 8170 94.50 47.25 6.30
5: Dean HPP 8300 39 12745 147.42 73.71 9.83
6: Lloan HPP 3100 14 4575 52.92 26.46 3.53
7: Mal HPP 4000 18 5882 68.04 34.02 4.54
8: Erenik HPP 2000 9 2941 34.02 17.01 2.27
9: J asiq HPP 1900 9.7 3170 36.67 18.33 2.44
10: Dragash HPP 2200 10 3268 37.80 18.90 2.52
11: Orush HPP 5600 25.6 8366 96.77 48.38 6.45
12: Rean HPP 1500 6.7 2190 25.33 12.66 1.69
13: Brezovic HPP 2100 10 3268 37.80 18.90 2.52
14: Lepenc HPP 3500 16 5229 60.48 30.24 4.03
15: Bajsk HPP 300 1.4 458 5.29 2.65 0.35
16: Batare HPP 1100 5.8 1895 21.92 10.96 1.46

___________________________________________________________________________
108
17: Majanc HPP 600 2.9 948 10.96 5.48 0.73
18: Mirusha HPP 4600 22 7190 83.16 41.58 5.54
All New HPPs 63700 294.1 96113 1111.70 555.85 74.11
19: Dikancit HPP 1900 10 3268 37.80 18.90 2.52
20: Radavcit HPP 350 1.8 458 5.29 2.65 0.35
21: Burimit HPP 800 4.6 1373 15.88 7.94 1.06
22: Prizrenit HPP 330 1.4 359 4.16 2.08 0.28
23: Shtimes HPP 140 0.6 196 2.27 1.13 0.15
All Existing HPP 3520 17.3 5654 65.39 32.70 4.36

Conclusions of the above analysis is that because of the rehabilitation/construction
of new HPP, it will be possible for the reduction of gases causing acid rain and
smog.
7.6 Possible impacts from the HPP to be constructed or
rehabilitated on the environment and proposed measures for
preventing and softening them
The monitoring program will be used for verifying all the possible pollutions in the
environment due to the construction and operation of the respective HPP in the
Kosovo respective communes. This will make it possible to follow a program and
take corrective measures before any potential damage turn to reality. Monitoring
program for potential pollution that could harm the environment is given below in
general and after the complete Environment Assessment Study is done from each
private investor that will require taking of concessionary license should be
supervised from the Regional Environment Agency in the Respective Communes of
Kosovo.

Each of the identified parameters during the construction phase and also determined
in the mitigation plan should be monitored during the construction phase. In table 10
are given the parameters that should be monitored during the construction phase.

Tabela 45.: Monitoring Plan during construction
Responsibility Monitoring Plan Responsibility
EPC contractor

Practice of selecting the site of the central will be
realized in presence of the community. Meanwhile near
the central more fruit trees should be planted than those
that were cut.
EPC contractor

EPC contractor

Practice for selecting the derivation channel shall be
realized in presence of community and the respective
Commune Regional Environment Agency in order to
have the minimal impact on the ecosystem
EPC contractor

EPC contractor

Practice of selecting the site for decanting work will be
realized in the presence of the community and the
Regional Environmental agency of the respective
commune. Furthermore trees should be planted around
this work in order to avoid erosion.

EPC contractor

EPC contractor

The practice for selecting the pressured basin will be
realized in the presence of the community and the
EPC contractor


___________________________________________________________________________
109
Regional Environment Agency of respective commune
in order to control all the processes.
EPC contractor

Practice for placing the pressure pipes will be realized in
presence of the community and the Regional
Environment Agency of respective commune in order to
control all the processes.
EPC contractor

EPC contractor Practice for the preparation of the site should be
realized in presence of the community and the Regional
Environmental Agency of the respective commune.
EPC contractor
EPC contractor Minimization of erosion should be a primary duty during
the preparation of the Centrals site
EPC contractor
EPC contractor The monitoring of all the documentation of the tenant
from the community and the Regional Environment
Agency of respective commune that shall not take
agriculture land for this aim
EPC contractor
EPC contractor Renting and using the land for the specific aim EPC contractor
EPC contractor

Documentation of the final leasing conditions of the land
allowing all the necessary work to be done and to bring
the land back to the initial conditions.
EPC contractor

EPC contractor

Monitoring of materials used EPC contractor

EPC contractor

Maintenance and use of licenses taken for the scope EPC contractor

EPC contractor

Documentation of the land used only for the passing of
the line corridor and the agricultural land to be touched
as little as possible
EPC contractor

EPC contractor

Documentation of non-hazardous solid wastes that are
thrown in predefined places.
EPC contractor

EPC contractor A moving ambulance with the necessary tools of first aid
should be contracted for every possible accident that
could happen at the construction site.
EPC contractor
EPC contractor

Permanent inspection of the Regional Environment
Agency of respective Commune should be done in
relation with the emission of dust in atmosphere during
the transport of ground from the site on the main road.
EPC contractor

EPC contractor

Sending the non hazard solid wastes that will be thrown
in predefined sites should be done time after time in
relation to their quantity and composing.
EPC contractor

EPC contractor Monitoring of operational parameters should be done
with high accuracy.
EPC contractor

Each of the identified parameters during the operating phase that are also
determined in the mitigation plan should be monitored during the operating phase of
the respective HPP to be constructed / rehabilitated. In the table 11 the parameters
are given that should be monitored during the operating phase.

Tabela 46.: Monitoring plan during the operating
Activities Monitoring Plan Responsibility
Monitoring of the
water quantity
taken from the
river. Decrease of
The average water quantity that will be taken from the
implant shall be only 70-85% of the normal flows for
every season. This water quantity shall pass on the
derivation channel and back to the river after passing to
HPP operator

___________________________________________________________________________
110
the water quantity
remained on the
river bed.
the discharge work. The company that will realize the
operating of the HPP will in continuity monitor the water
quantity.
Operating of
equipments and
machineries
A basic scenario for the possible noise before and
during the construction phase and the operating one
should be realized. During all the operating process the
noise level should be monitored, making sure that it
does not pass the 70 decibel.
HPP operator

Treatment of
waste waters
The system for the waste waters should be monitored
based on the parameters given from the operator.
HPP operator
Storing and
treatment of
dangerous
materials
Sending solid non-dangerous materials in predefined
places should be done time after time depending on the
quantity and their composition.
HPP operator
Connection of the
central with
substation with the
10 kV network.
Monitoring of electric and magnetic field resulting from
the medium voltage lines that enter / leave the central
and the 10 kV voltage bus and their comparison with
the allowed values given in the full VNM, should be
prepared by the consulting group selected from the
contractor to take the respective concessionary license.
HPP operator

8. Carry out preliminary economical and financial analyses
for all new/ existing SHPPs
In the context of this study is not possible to make a complete assessment of
economical and environmental impact of the Small Hydro Power Plants. The
following analysis is a preliminary one and the construction of HPP offers number of
benefits like:
Use of internal economical resources: Experts and companies from Kosovo
can do a lot of planning, rehabilitating and constructing works. Only some
electro-mechanical equipments should be imported.
Use of local sources of renewable energy: Instead of imported energy, the
HPP use local renewable resources.
Creation of possibilities for the Albanian engineers and techniques: during the
construction but also the operation phase, the HPP offer employment
possibilities in Kosovo.
Supply of electricity with low environment impact and without green house
effect: Although the supply with imported electricity or with the domestic
thermo generation is guaranteed, HPP offer electricity with very less
environment impact.
Reduction of losses in transmission/distribution: Decentralized generation of
electricity near the consumers reduces the losses in the
transmission/distribution Albanian power network.
Improvement of electricity supply conditions for distant areas: Actually the
electricity supply for the distant areas is very deficient. Consumers have to
support shortages and low voltage. The HPP improve the supply with
electricity for these distant areas.


___________________________________________________________________________
111
Economical evaluation in this chapter shall consider only two aspects:
The cost for supplying Kosovo with alternative electricity: Cost of supplying
the electricity for different supplying options shall be discussed in the other
sections. The costs of not supplied energy and the last marginal costs for
supplying with electricity.
Reduction of distribution losses and improvement of electricity supply quality
in the distant areas.
8.1 Preliminary economical analysis for each new Small HPP to be
constructed/ rehabilitated
One of the first steps in planning the widening the power generation is placement of
objective security supply level that is expected for future of generation system. This
level determines the total value of generating capacity required to be installed. In
lack of many studies, the report of country GDP and the annual generation of
electricity are mostly used to calculate the cost of unused electricity. In the case of
Kosovo the calculated value for 2003 will be 2 USD/kWh.
8.1.1 Methodological considerations regarding the preliminary
economical analysis for each Small Hydro Power Plant to be
constructed/rehabilitated
In order to take the financial decision, different methods are used and continue to
be used, including that of Net Present Value-NPV, Internal Rate of Return-IRR;
Wealth-Maximizing Rate-WMR and Pay Back Period- PBP. All these techniques will be
shortly described and what is more important will be used for the preliminary
analysis of the 18 new HPP, based on the preliminary geographical, hydro-technique,
geological and environmental analysis. Also the same analysis has been done even
for the 5 existing HPP that are analyzed based on the preliminary economical
analysis. Based on the World Bank methodology, the electricity price for the
preliminary economical analysis will be used the cost of not supplying with electricity
evaluated in the following section. One additional factor that is taken into
consideration for the preliminary economical analysis is the selling of the reduction
of emission green house gases (it is discussed in a more detailed on chapter seven).
8.1.2 Value of not supplied power unit in the Kosovo power market
The value for the cost of not used energy that is used in different international
studies varies in significant way from 0.15 to 15 USD/kWh. A precise value can be
fixed through detailed economical studies (given in 47) by analyzing the capacity
cost at low quantities for different sectors of the national economy (heavy and light
industry, services and population).

Table 47.: Calculation of economic unit cost of unsupplied electricity
Parametrs Households Service Industry Total
Electricity consumption by sectors, % 73% 14% 12% 100%
Power [kW] 5 150 1000
Investment [EURO/ kW] 350 300 300
Life [years] 5 7 10
Fuel diesel diesel solar
Investment Unit Cost [EURO/ kWh] 0.039 0.024 0.017

___________________________________________________________________________
112
O&M Unit Cost [EURO/ kWh] 0.0023 0.0014 0.0010
Fuel Unit Cost [EURO/ kWh] 0.2437 0.2193 0.0800
Total Unit Cost [EURO/ kWh] 0.285 0.245 0.098 0.2539
Electrcity Price from Network [EURO/ kWh] 0.0288 0.045 0.048 0.0330
Levelised Discount Unit Cost of Unsupplied Elektricity [EURO/ kWh] 0.1435

All the preliminary economical analysis calculation is made based on this cost of not
supplied electricity of 14, 35 Euro cent/kWh.
8.1.3 Comparison of different power generation alternatives for new
small HPP to be constructed/rehabilitated
Each option will be analyzed based on the investment evaluated cost, cost of fuel
and cost of operating and maintenance. For this economical analysis all the costs are
based at price levels of January 2006 and the capital costs include the respective.
Fuel costs are representative of the conditions of prices for January 2006. For the
economical analysis the fuel price remain constant during the entire period of
analysis. In the analysis was used a discount rate of 15%. Capacity factors for all the
options are kept upon the respective value for each HPP.
8.1.4 Technical losses and problems regarding the fall of voltage for
each new small HPP to be constructed/rehabilitated
During the last 15 years, Kosovo power system is facing serious problems because of
the inadequate development of the transmission system and the actual need for
rehabilitation and improvement of the equipments. This has reduced in considerable
way the security of operating system and the power supply quality and has limited
the exchange capacity with neighboring countries. The main problems are:
Overload on some 220 kV transmission lines cause losses, lower voltage level than
the standard and the load in the region;
The system lack of flexibility and its operation not upon the n-1 criteria, reduction of
security and capacity of transmission system;
Lack of operating capacity in optimal way and non balancing of reactive power;
Many assets of 220/110 kV substations are old and during the last years few
maintenance work have been done on them;
Limiting of power exchange capacity with neighboring countries;
Old and inefficient ways of control system.

Based on the Distribution Master Plan, the network defined as rural have limited
number of components, that could be used once again at the new system and to be
fit in the rehabilitation process, conform the international technical standards. The
only meaningful strategy is the one that offers the possibility to keep the network in
operating conditions aiming its maximal amortization. By substituting all the existing
HV/MV transformers, with 110/20 kV, the rehabilitation of the HV and MV systems
will realize respective voltage levels of 110 kV and 20 kV, giving the priority to the
areas where the situation is more tensioned.

Also should stress that the construction/rehabilitation of small HPP near the
consumers in Kosovo has two great advantages:

___________________________________________________________________________
113
1) Reduces the transmission and distribution losses at the level of 18-22%
compared with the case when do not exist the small HPP. Keeping present the effect
of avoided looses, the economical cost of power supply with increase by 20%.
2) Increase the voltage and stabilizes it at the standards required at distant
villages by increasing so the productivity of different activities in these areas.
Keeping present the improvement in the quality of service, the economical cost for
power supply will increase by 10%.
8.1.5 Economic costs for each new Small Hydro Power Plant to be
constructed/rehabilitated and their ranking upon this parameter
The method used to calculate the economical cost for long term marginal unit of the
generation for power unit is that of ELDC (Economic Levelised Discount Cost-ELDC,
that is calculated based on the formula:
=
=
+
+
=
25
0
25
0
) 1 (
) 1 (
i
i
i economic
i
i
i
i economic
i
r
E
r
C
ELDC
[Euro cent/kWhelektric] (5)

= =
+
=
+
25
0
25
0
) 1 ( ) 1 (
i
i
i
i
i
i
EIRR
C
EIRR
B
[%] (6)

On table 48 are given marginal unt generation economic cost for electricity
generation calculated for all new SHPPs and those which are going to be
rehabilitated.

Table 48.: Economic analyse of GHG reduction for each HPP
Name Power
[kW]
Energy
[Milion
kWh]
ELDC
[Euro
cent/ kWh]
EIRR
[%]
Unsupplied
energy
Cost
Economic
Interest
rate
1: Kuqisht HPP 3900 17 0.05322 0.1435 44.31% 15%
2: Drelaj HPP 6200 27 0.04554 0.1435 48.42% 15%
3: Shtupeq HPP 7600 35 0.04375 0.1435 50.44% 15%
4: Bellaj HPP 5200 25 0.04617 0.1435 48.07% 15%
5: Dean HPP 8300 39 0.04462 0.1435 55.37% 15%
6: Lloan HPP 3100 14 0.05624 0.1435 41.92% 15%
7: Mal HPP 4000 18 0.05512 0.1435 41.43% 15%
8: Erenik HPP 2000 9 0.06444 0.1435 37.49% 15%
9: J asiq HPP 1900 9.7 0.05542 0.1435 45.99% 15%
10: Dragash HPP 2200 10 0.06088 0.1435 40.45% 15%
11: Orush HPP 5600 25.6 0.04048 0.1435 53.88% 15%
12: Rean HPP 1500 6.7 0.04604 0.1435 52.90% 15%
13: Brezovic HPP 2100 10 0.06472 0.1435 36.12% 15%
14: Lepenc HPP 3500 16 0.06214 0.1435 36.61% 15%
15: Bajsk HPP 300 1.4 0.17509 0.1435 13.08% 15%
16: Batare HPP 1100 5.8 0.08703 0.1435 26.90% 15%
17: Majanc HPP 600 2.9 0.09404 0.1435 26.40% 15%
18: Mirusha HPP 4600 22 0.14422 0.1435 15.51% 15%

___________________________________________________________________________
114
All New HPPs 63700 294.1 0.04538 0.1435 46.91% 15%
19: Dikancit HPP 1900 10 0.03924 0.1435 78.22% 15%
20: Radavcit HPP 350 1.8 0.05701 0.1435 65.83% 15%
21: Burimit HPP 800 4.6 0.04565 0.1435 60.42% 15%
22: Prizrenit HPP 330 1.4 0.06719 0.1435 47.17% 15%
23: Shtimes HPP 140 0.6 0.09411 0.1435 38.37% 15%
All Existing HPP 3520 17.3 0.04254 0.1435 56.53% 15%

Mean conclusion of above mentione analyse shows that all SHPPs have
marginal economic unit cost of electricity generation lower than unit cost
of unserved electricity and economic rate of return for all SHPPs is higher
than economic interest rate (15%). On the figures 126-129 is given the
comparision of all SHPPs based in economic analyse. On table 49 are given
all economic unit cost for all new and rehabilitated SHPPs taken into considerations
proffits, which will come also from reduction of GHG.

Table 49.: Economic analyse of GHG reduction from each HPP
Name Power
[kW]
Energy
[Milion
kWh]
ELDC
[Euro
cent/ kWh]
Reduction
of cost
EIRR
[%]
Increase
of EIRR
1: Kuqisht HPP 3900 17 0.05322 0.000764 78.22% 1.10%
2: Drelaj HPP 6200 27 0.04554 0.001975 65.83% 1.23%
3: Shtupeq HPP 7600 35 0.04375 0.000764 60.42% 1.21%
4: Bellaj HPP 5200 25 0.04617 0.001975 47.17% 1.22%
5: Dean HPP 8300 39 0.04462 0.000000 38.37% 2.30%
6: Lloan HPP 3100 14 0.05624 0.001975 56.53% 1.10%
7: Mal HPP 4000 18 0.05512 0.001975 78.22% 1.08%
8: Erenik HPP 2000 9 0.06444 0.004458 65.83% 1.34%
9: J asiq HPP 1900 9.7 0.05542 0.000764 60.42% 1.14%
10: Dragash HPP 2200 10 0.06088 0.001975 47.17% 1.08%
11: Orush HPP 5600 25.6 0.04048 0.001975 38.37% 1.33%
12: Rean HPP 1500 6.7 0.04604 0.001231 56.53% 0.35%
13: Brezovic HPP 2100 10 0.06472 0.001975 78.22% 0.97%
14: Lepenc HPP 3500 16 0.06214 0.004552 65.83% 1.46%
15: Bajsk HPP 300 1.4 0.17509 0.001975 60.42% 0.48%
16: Batare HPP 1100 5.8 0.08703 0.001975 47.17% 0.76%
17: Majanc HPP 600 2.9 0.09404 0.001975 38.37% 0.77%
18: Mirusha HPP 4600 22 0.14422 0.001975 56.53% 0.49%
All New HPPs 63700 294.1 0.04538 0.001661 78.22% 1.13%
19: Dikancit HPP 1900 10 0.03924 0.003559 78.22% 2.27%
20: Radavcit HPP 350 1.8 0.05701 0.002046 65.83% 1.15%
21: Burimit HPP 800 4.6 0.04565 0.001959 60.42% 1.44%
22: Prizrenit HPP 330 1.4 0.06719 0.001516 47.17% 0.65%
23: Shtimes HPP 140 0.6 0.09411 0.000606 38.37% 0.73%
All Existing HPP 3520 17.3 0.04254 0.001374 56.53% 1.38%


___________________________________________________________________________
115
Also, the conclusion of the above mentioned analyse is showing for all
SHPPs that economic marginal unit cost of generation is reduced by taking
into consideration and economic rate of return is increased. On figures
101-104 is given the comparision of all SHPPs taken into analyse, based in
the economic analyse, taken into consideration profits which will come by
selling reduction of GHG through CDM scheme.

___________________________________________________________________________
116
0.0000
0.0050
0.0100
0.0150
0.0200
0.0250
0.0300
0.0350
0.0400
0.0450
0.0500
0.0550
0.0600
0.0650
0.0700
0.0750
0.0800
0.0850
0.0900
0.0950
0.1000
0.1050
0.1100
0.1150
0.1200
0.1250
0.1300
0.1350
0.1400
0.1450
0.1500
0.1550
0.1600
0.1650
0.1700
0.1750
0.1800
0.1850
0.1900
ELDC - (Euro cent/kWh)
NewHPP: ELDC (Euro cent/kWh)
Levelised Discount Unit Cost of Unsupplied Electricity[EURO/kWh]
Existing HPP: ELDC (Euro cent/kWh)

Figure 101.: Ranking of all HPPs based in long run marginal economic cost (without considering the profits which will come from
selling GHG emission reduction)

___________________________________________________________________________
117
0.000
0.005
0.010
0.015
0.020
0.025
0.030
0.035
0.040
0.045
0.050
0.055
0.060
0.065
0.070
0.075
0.080
0.085
0.090
0.095
0.100
0.105
0.110
0.115
0.120
0.125
0.130
0.135
0.140
0.145
0.150
0.155
0.160
0.165
0.170
0.175
0.180
ELDC without CER (Euro cent/kWh)
ELDC with CER (Euro cent/kWh)
Levelised Unit Cost of Unsupplied Electricity[EURO/kWh]

Figure 102.: Ranking of all HPPs based in long run marginal economic cost (without/with considering the profits which will come
from selling GHG emission reduction)

___________________________________________________________________________
118
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
0.55
0.60
0.65
0.70
0.75
0.80
EIRR
NewHPP: EIRR
Economic Interest Rate
Existing HPP: EIRR

Figure 103.: Ranking of all HPPs based in Economic Internal Rate of Return (without considering the profits which will come from

___________________________________________________________________________
119
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
Increment of EIRR considering CER
EIRR without CER
EIRR

Figure 104.: Ranking of all HPPs based in Economic Internal Rate of Return (without/with considering the profits which will come

___________________________________________________________________________
120
8.2 Preliminary financial analysis of cost-benefits for each HPP,
new or existing to be rehabilitated/ empowered
Different methods are used and continue to be used for making financial decisions,
by including the Net Present Value (NPV), Internal Rate of Return (IRR); Wealth-
Maximizing Rate (WMR) and the investment Pay Back Period (PBP). All these
techniques are described here shortly, but most importantly is that they will be used
for the preliminary analysis of the 18 new HPP, based on preliminary hydrological,
hydro-technique, geological and environmental analysis. Also the same analysis is
done even for the 4 existing HPP, based on the preliminary financial analysis.

Figures 105-111 shows the ranking all new and rehabilitated SHPP based in the long
run marginal unit cost of electricity generation and internal rate of return for each of
them. The conclusion of preliminary financial analyse shows that only 8 SHPP have
unit cost higher than electricity price taken into consideration.

___________________________________________________________________________
121
0.000
0.005
0.010
0.015
0.020
0.025
0.030
0.035
0.040
0.045
0.050
0.055
0.060
0.065
0.070
0.075
0.080
0.085
0.090
0.095
0.100
0.105
0.110
0.115
0.120
LDC (Euro cent/kWh)
NewHPP (Euro cent/kWh)
ElectricityPrice (Euro cent/kWh)
Existing HPP (Euro cent/kWh)

Figure 105.: Ranking of all HPPs based in long run marginal finnacial cost (without considering the profits which will come from

___________________________________________________________________________
122
0.000
0.010
0.020
0.030
0.040
0.050
0.060
0.070
0.080
0.090
0.100
0.110
0.120
0.130
0.140
0.150
0.160
0.170
0.180
0.190
0.200
0.210
IRR
NewHPP (%)
Interest Rate
Existing HPP (%)

Figure 106.: Ranking of all HPPs based in Finnacial Internal Rate of Return (without considering the profits which will come from

___________________________________________________________________________
123
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Em. Reduction Cost (Euro/tons)
HEC-et Rinje: LDC (Euro/tons)
Em. Reduction Price (Euro/tons)
HEC-et Ekzistuese: (Euro/tons)

Figure 107.: Ranking of all HPPs based financial cost of ton CO2 eqv.

___________________________________________________________________________
124
0.000
0.004
0.008
0.012
0.016
0.020
0.024
0.028
0.032
0.036
0.040
0.044
0.048
0.052
0.056
0.060
0.064
0.068
0.072
0.076
0.080
0.084
0.088
0.092
0.096
0.100
0.104
0.108
0.112
0.116
0.120
LDC with CER (Euro cent/kWh)
HEC-et Rinje: LDC with CER (Euro cent/kWh)
Electricity Price (Euro cent/kWh)
HEC-et Ekzistuese: LDC with CER (Euro cent/kWh)

Figure 108.: Ranking of all HPPs based in long run marginal financial cost (with considering the profits which will come from selling
GHG emission reduction)

___________________________________________________________________________
125
0.000
0.004
0.008
0.012
0.016
0.020
0.024
0.028
0.032
0.036
0.040
0.044
0.048
0.052
0.056
0.060
0.064
0.068
0.072
0.076
0.080
0.084
0.088
0.092
0.096
0.100
0.104
0.108
0.112
0.116
0.120
LDC without CER [EURO/kWh]
LDC with CER [EURO/kWh]
ElectricityPrice [EURO/kWh]

Figure 109.: Ranking of all HPPs based in long run marginal finnacial cost (without/with considering the profits which will come

___________________________________________________________________________
126
-0.05
-0.04
-0.03
-0.02
-0.01
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
IRR
NewHPP: IRR with CER
Interest Rate
Existing HPP: IRR with CER

Figure 110.: Ranking of all HPPs based in Finnacial Internal Rate of Return (with considering the profits which will come from

___________________________________________________________________________
127
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
21%
22%
23%
24%
Incrementof IRR contributed byCER
IRR without CER
Interest Rate

Figure 111.: Ranking of all HPPs based in Finnacial Internal Rate of Return (without/with considering the profits which will come


___________________________________________________________________________
128
8.3 HEC-i i vogl i Dikancit
The Dikanc HPP is situated at the Dikanc village, in the Sharri (Dragash) commune,
10 km from the village. The HPP is constructed in the Stream of Brod River, of the
Drin River basin, and the production started in 1957; it was stopped in 2000. The
object is maintained, and has a site of 300 m2. The generation installed capacity for
the two generators is 900 kW, 2x950=1900 kW. In figures 112-113 are given the
plant positioning.

The turbines have mechanical damages in the pallets and their axis. At this hydro
power plant we are looking at the possibility to increase the capacity, by
constructing a barrier for the water collection. The same water quantity could be
used by constructing a hydro power plant in another location below. Some initial
data for the Dikanc HPP will be presented, some of the main parameters of this HPP
were:
Operations starting year 1957
Installed capacity 2X950 kW
Yearly average production 10 GWh.
Number of turbines 2
Turbine type Francis
Generation number 2
Generation type S1252 Rade Konar
Fall 115 m
Average flow 925 l/s
Excitation voltage 110 and 112 V

Figure 112.: Power House of Dikanci SHPP

___________________________________________________________________________
129

The building situation and maintenance are good. That is why its revitalization will
not require big investments and investing in it will be afeasible.

Figure 113.: Turbines of Dikanci SHPP
8.4 HEC-i i vogl i Radavcit
The hydro power plant of Radavec is located in the Peja municipality, in the Radavc
region, aboutrt 9 km in the west-nord of Peja. This plant is cunstructed near the
river Drini i Bardh, wich derive in the Rusoli mountain, around 700 m near the river
flow. The figurs 114-115 show the plant location.

___________________________________________________________________________
130

Figure 114.: Power House of Radavci SHPP

Figure 115.: Turbines and generator of Radavci SHPP

Radavc HPP has started to be constructed in 1928, from the former local
government with the financing of the Peja people. The construction works have

___________________________________________________________________________
131
been done with the basic materials of the time, mainly stone. All the generation
machineries, almost all Nish products, are of the 30s. Later on, some small
reparations have been done to these machineries but nothing essential.

The works ended in 1934, when the HPP began functioning. The generation capacity
was small but at the time it had great importance for the production of electricity.
The generation installed capacity for one generator is 180 kW, and for the other is
170 kW. The turbines have passed all the possible of operation or further repairing.
The same is for the generators. The object is in good condition and could be used.
The water quantity that could be used is acceptable, around 2 m3/s.
8.5 Burimi (Istog) SHPP
Burimi HPP is situated at Burimi city, near the rivers spring. It is constructed in a
valley from which the Burimi River is fed, 500m from the stream, where the HPP
building stands. The HPP building is damaged and out of function. The turbines have
surpassed all the norms for further use. The building is demolished but could
continue to work. In the figures 116-117 the central is presented.

Figure 116.: I nside power house of Burimi (Istog) SHPP

___________________________________________________________________________
132

Figure 117.: View of water spring where is alocated also intake of water for for Burimi

The Burimi (Istog) HPP building is completely demolished. It was constructed on
1948 at the north part of the Burim city. The average quantity of water flow at the
river spring is calculated around 5.6 m3/s. This study will analyze the possibility to
rehabilitate and increase its power. Some of the main figures of the HPP were;
Operations starting year 1948
Installed capacity 2X400 kW
Yearly average production 1 GWh.
Turbine number 2
Turbine type Francis
Generator number 2
Generator type S1252 Rade Konar
Fall 85 m
Average flow 925 l/s
Excitation voltage 110 and 112 V
8.6 Prizreni SHPP
The Prizren HPP is constructed at Lumbardhi Prizrenit and is actually out of
function. This site was declared a museum due to the fact that it was constructed a
long time ago and on an archeological site. However there are possibilities that this
HPP could be rehabilitated and preserve its heritage values. Its installed capacity
was 320 kW, with two turbines. In the figures 118-119 the positioning of the power
plant is given.

___________________________________________________________________________
133

Figure 118.: Power House of Prizreni SHPP

Figure 119.: Some equipment of turbine for Prizreni SHPP


___________________________________________________________________________
134
8.7 Shtime SHPP
Actualy, the HPP of Shtimes is out of function. Anyaway, ther are all possibilities that
this plant to be rehabilitated. In the framework of work visits in the terrain for
viziting the egsisting HPP in Kosova, wich are aut of function or are wayting for
rehabilitation, and also of location of small HPP, on march 23, 2006, the member of
expert group of SHSHEMZHQ and Mr. Nezir Myrtaj, (MEM), have vizited Shtime, the
location where is a small HPP. This HPP have beeen placed in the south part of the
region , in the Shtimja river. The location may be located through tracks still
egsisting , as may be the part of pipe that have transported the watter in the
turbine, with a diamter 50 cm.

To know better about location of this HPP and its egsistence, we have contacted
some people from Shtima. According to their opinion, this plant have operated up to
the begining of 70 of last century and after the total electrification of the region, it
has been out of function. Near the location of HPP have been 2 watter mill, wich
have functioned during periodic explotation of watter of the same channel that have
supplyed the HPP.

The SHPP object have been constructed on the left part of Shtimja flow, wich by its
part is composed by two branchs: Stream of Carralevs that comes from north side
and Petrova stream, that comes from south side. The Hpp has exploited the watter
of Petrova stream, source called Vrella e Zez. Watter of Vrells s Zez through a
channel pas up to in the hill of Shtimes that is lokated in the south-west part of the
region where has beeen located the HPP. Falling of 40-50m watter from this hill to
location of HPP, has a tough slope.

Regarding to the amount of exploited watter , that is a considerable one especially in
fall-winter-spring. According to some data gathered by hydrologjist result that this
amount on the average is 400 litra/sekond.

kW
H Q
N
mekanik hidraulik elektrik
140 83 . 0
102
40 400
102
=
=

vit GWh E / 6 . 0 4285 140 = =

Installed capacity for this SHPP will be around 140 kW with only one turbine. In
figures 120-121 is shown the alocation of ex-hydro power plant.


___________________________________________________________________________
135

Figure 120.: Ex-alocation of Shtime SHPP
8.8 Evaluation of initial investment for every SHPP new or existing
to be rehabilitated/ empowered
Initial investments for the different implants (including the energetic ones) include
the following reports: payments to all the studying and projecting offices; payments
to all the suppliers, transporters (including customs if there are any); payments to all
the industrial offices; a certain expense addressed to cover the enterprise risk during
the construction of the implant; all the expenses for different processes of
construction, assembly, releasing (up to the implant start working at full load);
infrastructure outside the implant (but are necessary for its normal operation, i.e.
roads, water etc); different extra expenses for the protection of the implant
environment., etc.

In the table 50 the initial investment values for the HP are given P, new, to be
constructed in the future, upon the results from a study of the expert group. In the
calculation of these initial investments not only the basic elements mentioned above
have been taken into account but also other factors like: funds for the land to be
bought for passage of the channel, pipes and construction of the central building.

Table 50.: Investment components for each HPP
Name Power
[kW]
Energy
[Milion
kWh]
I
civil part
[Milion
EURO]
I
machinery
[Milion
EURO]
I
power net.
[Milion
EURO]
I
study,
design

[Milion
EURO]
I
total

[Milion
EURO]
1: Kuqisht HPP 3900 17 2.200 1.200 0.100 0.123 3.623
2: Drelaj HPP 6200 27 2.900 2.100 0.100 0.179 5.279
In this site was alocated Shtimje
SHPP. Actually, there exists only
the trace of one ex-water pipeline

___________________________________________________________________________
136
3: Shtupeq HPP 7600 35 3.550 2.600 0.150 0.221 6.521
4: Bellaj HPP 5200 25 2.800 1.900 0.100 0.168 4.968
5: Dean HPP 8300 39 2.950 3.000 0.150 0.214 6.314
6: Lloan HPP 3100 14 1.500 1.500 0.100 0.109 3.209
7: Mal HPP 4000 18 2.150 1.700 0.150 0.140 4.140
8: Erenik HPP 2000 9 1.400 0.700 0.100 0.121 2.321
9: J asiq HPP 1900 9.7 1.050 0.700 0.100 0.102 1.952
10: Dragash HPP 2200 10 1.500 0.650 0.100 0.101 2.351
11: Orush HPP 5600 25.6 2.150 1.900 0.150 0.147 4.347
12: Rean HPP 1500 6.7 1.150 0.500 0.100 0.114 1.864
13: Brezovic HPP 2100 10 1.800 0.700 0.100 0.122 2.722
14: Lepenc HPP 3500 16 2.650 1.000 0.150 0.133 3.933
15: Bajsk HPP 300 1.4 0.850 0.150 0.100 0.050 1.150
16: Batare HPP 1100 5.8 1.660 0.390 0.150 0.099 2.299
17: Majanc HPP 600 2.9 0.870 0.200 0.030 0.083 1.183
18: Mirusha HPP 4600 22 9.200 5.000 0.100 0.358 14.658
All New HPPs 63700 294.1 42.330 25.890 2.030 2.580 72.830
19: Dikancit HPP 1900 10 0.2036 0.5262 0.1000 0.029 0.8588
20: Radavcit HPP 350 1.8 0.0375 0.1185 0.1000 0.009 0.2649
21: Burimit HPP 800 4.6 0.0857 0.3077 0.1000 0.017 0.5107
22: Prizrenit HPP 330 1.4 0.0354 0.1523 0.1000 0.010 0.2977
23: Shtimes HPP 140 0.6 0.0150 0.0732 0.1000 0.007 0.1948
All Existing HPP 3380 17.8 0.3773 1.1778 0.5000 0.0719 2.1270
TOTAL of both groups 67080 311.9 42.7073 27.0678 2.5300 2.6519 74.9570
8.9 Operation & Maintenance costs for each HPP new, or existing
to be rehabilitated/ empowered
During its activity the company foresees some expenses for operation &
maintenance:
Expenses for social contributions. As it can be seen from the following graphic, the
variable costs are the biggest part of the expenses for each company owning the
respective HPP. As mentioned above for each HPP, its staff shall average 10 and the
monthly salaries are given at table 51. It should be stressed that the staff number
do not depend upon the installed capacity and the minimum number oscillate from
7-10 specialist, oscillating in this way also the cost of labor force from 45.000-60.000
EURO/year.

Table 51.: Monthly and yearly salaries for each category of staff
STRUKTURA E
PERSONELIT
Numri i
Punonjsve
Pagat dhe Fondi Prkats
Paga mujore Fondi Vjetor
Director 1 900 10800
Engineer 1 700 8400
Economist 1 600 7200
Maintenance Specialist 2 800 9600
Turbinist 5 2,000 24000
TOTAL 10 5000 60000

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8.9 Financial methods for the realization of financial benefit
analysis
Different methods are used to make the financial decision, including the the Net
Present Value-NPV, Internal Rate of Return-IRR; Wealth-Maximizing Rate-WMR and
investment Pay Back Period - PBP. The most used financial methods are NPV, IRR,
LDC and PBP. In the following sessions these techniques shall be described shortly,
their advantages and disadvantages and techniques used for the preliminary
financial analysis.

In order to realize a HPP financial benefit analysis is used all the above
mentioned techniques: NPV, I RR, LDC and PBP.
8.10 The financial indicator for which the new or existing to be
rehabilitated/ empowered HPP
Up to now the initial investments are calculated, using costs, electricity prices and
the interest rate for the loan is accepted to be at 7% for the basic case. As a result
we need to have all the necessary data for the calculation of financial indicators,
based on the above formulas and the respective software made in Excel for this
scope. The analysis done for the 23 new HPP and those to be rehabilitated together
with the results for each of them are presented in Table 53.

Table 53.: Financial Analyse for each HPP
Name Power
[kW]
Energy
[Milion
kWh]
LDC
[EURO
cent/ kWh]
IRR
[%]
Electricity
price
[EURO
cent/ kWh]
Interest
rate
[%]
1: Kuqisht HPP 3900 17 0.0360 11.62% 0.04 10%
2: Drelaj HPP 6200 27 0.0317 13.47% 0.04 10%
3: Shtupeq HPP 7600 35 0.0297 14.45% 0.04 10%
4: Bellaj HPP 5200 25 0.0321 13.29% 0.04 10%
5: Dean HPP 8300 39 0.0260 18.74% 0.04 10%
6: Lloan HPP 3100 14 0.0388 10.51% 0.04 10%
7: Mal HPP 4000 18 0.0381 10.69% 0.04 10%
8: Erenik HPP 2000 9 0.0459 8.07% 0.04 10%
9: J asiq HPP 1900 9.7 0.0375 11.41% 0.04 10%
10: Dragash HPP 2200 10 0.0419 9.46% 0.04 10%
11: Orush HPP 5600 25.6 0.0283 15.55% 0.04 10%
12: Rean HPP 1500 6.7 0.0283 15.55% 0.04 10%
13: Brezovic HPP 2100 10 0.0445 8,43% 0.04 10%
14: Lepenc HPP 3500 16 0.0445 8.47% 0.04 10%
15: Bajsk HPP 300 1.4 0.1180 -4.44% 0.04 10%
16: Batare HPP 1100 5.8 0.0593 4.78% 0.04 10%
17: Majanc HPP 600 2.9 0.0640 3.50% 0.04 10%
18: Mirusha HPP 4600 22 0.0975 -0.14% 0.04 10%
All New HPPs 63700 294.1
0.0314
13.35%
0.04 10%
19: Dikancit HPP 1900 10 0.0285 20.38% 0.04 10%

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20: Radavcit HPP 350 1.8 0.0379 14.07% 0.04 10%
21: Burimit HPP 800 4.6 0.0317 16.01% 0.04 10%
22: Prizrenit HPP 330 1.4 0.0438 9.43% 0.04 10%
23: Shtimes HPP 140 0.6 0.0623 -1.24% 0.04 10%
All Existing HPP 3380 17.8 0.0293 16.00% 0.04 10%

The main conclusion of this analysis which is very important for Kosovos
water resources is that the construction of new HPP and the rehabilitation
of the existing HPP is advantageous as we have a high and positive NPV,
an I RR higher than the interest rate of 7%, we have a Pay Back Period of
3-9 years which is enviable in the power sector and have a marginal cost
for generation unit at the long term of 2.8-9.7 EURO cent/ kWh almost 1.5
lower than the electricity selling price.
8.10.1 Analysis of financial sensitivity versus the main parameters
for each new or existing hydro power plant to be
rehabilitated/empowered
The most important basic parameters waiting to be changed in the case of investing
in the new or existing HPP to be rehabilitated are: loan interest rate, electricity
generated during the year, electricity price, initial investment needed for the
construction of the type key on hand of this HPP and its longevity. In order to have
a stable financial advantageous analysis it is necessary to do the sensibility analysis.
In the sensibility analysis the change in the financial indicators should calculate NPV,
IRR, LDC and PBP versus the above mentioned parameters.

8.10.1.1 NPV, IRR, LDC and PBP versus the interest rate for all the new HPP and
those to be rehabilitated/empowered
One of the most important basic parameters waiting to be changed in the case of
investing in the HPP is the loan interest rate. To make possible a complete sensibility
of all the financial indicators versus this parameter, the variation of the interest rate
is taken at the interval (7-12%). In the table 54 is given the analysis versus the
interest rate.

Most important conclusions of the financial indicators sensibility analysis versus the
variation of interest rate are:
1. NPV decreases with the increase of the interest rate but during all the interval
it remain positive at a very high value even in the worst case (when the
interest rate is 12%). A negative NPV negative is only when the interest rate
is 12%;
2. IRR remain constant with the increase of interest rate, as based on its own
meaning, it does not depend on the interest rate. IRR is lower than the
interest rate, only in the case when the interest rate is 12%;
3. LDC increases with the increase of the interest rate even in the worst case
(when the interest rate is 12%), it arrives at least twice lower that the
electricity selling price. LDC is higher than the price only when the interest
rate is 12%;
4. PBP increases with the increase of the interest rate even in the worst case
(when the interest rate is 12%), it arrives at 7.15 years.

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Based on the above analysis, it could be stressed that the HPP to be built/rehabilited
has very positive financial indicators, even in the case when the interest rate is at
12%. This conclusion is very important for MEM, ZRrE, KEK, Private investors and
bank loaning these investments.

8.10.1.2 NPV, IRR, LDC and PBP, versus the value of electricity produced
One of most important basic parameters waiting to be changed in the case of the
HPP is the value of electricity produced in a year. Based on hydrologic study,
constancy of the flow will have an oscillation of 10% of flows (wet year +10% and
dry year -10%, versus the normal situation). On the other side is requested the
realization of a financial advantageous study to make possible the specification of
electricity production values.

To make a complete sensibility analysis of all the financial indicators possible against
this parameter, the variation of the value of electricity produced is taken in the
interval (70-130)%, against the base case with a production of 5.7468.000 kWh. In
the tables 58-61 is given the analysis versus the value of electricity produced. The
most important conclusions of this sensibility analysis of financial indicators versus
the variation in the production of electricity are:
1. NPV decreases with the production of electricity and for a production 70% of
normal value NPV still remains positive. Meanwhile with the increase of
produced electricity NPV sensibly increases.
2. IRR decreases with the decrease of production and for 70% of the normal
value IRR is higher than the interest rate (7%). Meanwhile with the increase
of produced electricity, IRR increases for a production value of 130%, against
the normal value.
3. LDC increases with the decrease of production and for 70% of the normal
value, LDC reach maximal value. Meanwhile with the increase of electricity
produced LDC decreases arriving at minimum, for a production value of
130%, against the nominal value.
4. PBP increases with the decrease of production and for 70% of the normal
value, PBP is 5-15 year (not to forget that HPP will life for 30 year).
Meanwhile, with the increase of produced electricity PBP decreases arriving at
3-11 year for a production value of 130%, versus the nominal value.

Based on the above analysis, it could be stressed that the SHPP have positive
financial indicators even in the cases when the produced electricity decreases at the
level of 70% of nominal value. Of course when the produced energy increases the
values of these indicators sensibly increase. This conclusion is very important for the
Company, MEM, KEK, ZRrE-n, Investors and the banks that will loan this
investment.

8.10.1.3 NPV, IRR, LDC and PBP, versus the electricity price
HPP is the electricity selling price. As it is stressed in the section of the electricity
selling price, the base value of this price is 4 Euro cent/kWh, but this can increase
sensibly in the future, especially by giving the status of qualified client and opening
of the electricity market in Kosovo. In order to make a complete sensibility analysis

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possible of all the financial indicators versus this parameter, the variation of
electricity selling price from the HPP to the Distribution Company 4-6 Euro cent/kWh
is given. In the tables 62-65 the analysis versus the electricity price is given.

Most important conclusions of these financial indicators sensibility analysis versus
the variation of electricity price are:
1. NPV decreases with the decrease of electricity selling price and for a price of
4 Euro cent/kWh, NPV still remains positive. Meanwhile with increasing of
electricity price, NPV increases arriving at maximum for the price of 6 Euro
cent/kWh.
2. IRR decrease with the decrease of electricity selling price and for the price of
4 Euro cent/kWh. Meanwhile with the increase of electricity price, IRR
increases arriving at at maximum value for the price of 6 Euro cent/kWh.
3. LDC remains constant and does not depend from the electricity selling price,
at in its own concept it depends only from the costs and not the benefits
(depending directly from the selling price).
4. PBP increases with the decreasing of selling price and for a price of 4 Euro
cent/kWh, we have a PBP=5.5-12.5 years. Meanwhile with increasing of price,
PBP decreases arriving at 3.2-11.3 years, for the price 6 Euro cent/kWh.

Based on the above analysis it could be stressed that the HPP has very positive
financial indicators even in the case when the electricity price decreases. This
conclusion is very important for the Company, MEM, KEK, ZRrE-n, Investors and
the banks loaning this investment.

8.10.1.4 NPV, IRR, LDC and PBP, versus the initial investment
One of the most important basic parameter waiting to be changed in the case of
HPP is the value of the initial investment. Even though based on the detailed
engineering study, already done, is accepted a value of 30% change in the
investment against the normal value (although we are at the preliminary analysis), in
order to have a complete sensibility analysis of financial indicators versus this
parameter the variation of the initial investment is taken at the interval (70-130)%.
In the table .-... is given the analysis versus the initial investment. Most important
conclusions of this financial indicators sensibility analysis versus the initial investment
are:
1. NPV decreases with the increase of the initial investment, but during the
entire interval it remains positive, at a higher value even in the worst case;
2. IRR decreases with the increase of the initial investment, but during the entire
interval the remains higher than the interest rate even when the initial
investment is 130% of the normal value IRR is at its minimum;
3. LDC increases with the increase of initial investment and in the worst case
(130% of the normal value), it arrives at the value maximum value, which still
is twice lower than the electricity selling price;
4. PBP increases with the increase of initial investment and in the worst case
(130% of nominal value), it arrives a value of 7-17.4 years;

Based on the above analysis it could be stressed that the HPP has very positive
financial indicators even in the cases when the norm of the initial investment

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141
increases at 130%, against the nominal value. This conclusion is very important for
the Company, MEM, KEK, ZRrE-n, Investors and the banks loaning this investment.

8.10.1.5 NPV, IRR, LDC and PBP versus the HPP longevity
the HPP is their longevity. The experience of the 84 existing small and medium HPP
in Albania and the 5 in Kosovo shows that their average longevity was 30 years (this
value will be used as nominal value). Also, it is important to mention that some small
and medium HPP had longevity of 60 years and continue to work without any
change in the turbines or electric generators, in Kosovo and Albania too. To make
possible a complete sensibility analysis of the financial indicators versus this
parameter, the HPP longevity variation is taken (70-130)%, against the nominal
value. In the tables 70-73 is given the analysis versus the HPP longevity.

The most important conclusions of these financial indicators sensibility analyze
versus the HPP longevity are:
1. NPV diminishes with the diminishing of longevity but during the entire interval
it remains positive at a very high value, even in the worst case (when
longevity is 70%). As it is showed in the picture (NPV values are given in
Million Euro), we do not have a big oscillation of NPV, even if we had a
demarked change in longevity;
2. IRR diminishes with the diminishing of longevity, but during the entire interval
it remains higher than the interest rate, even in the worst case (when
longevity is 70%), we have an minimum value. As it is showed in the picture
we have a slight oscillation of IRR, even if we have a demarked change in
longevity;
3. LDC diminishes with increasing longevity, but even this is very positive. As it
is shown in the picture, we do not have a huge oscillation of LDC even if we
have a demarked change in longevity;
4. PBP remains constant and do not depend from the change in longevity; i.e. in
all cases it maintains as the constant value.

Based on the above analyze could be stressed that the HPP have very positive
financial indicators even in the cases when its longevity is at its lower values (21
years). This conclusion is very important for the Company, MEM, KEK, ZRrE-n,
Investors and the banks that will give the loan for this investment.
8.11 Preliminary Bussiness Plan for each new or rehabilitated SHPP
Based in the technical problems for the construction of new/rehabilitated SHPP and
their operation are planned four main phases for each project:

Phase 0: Study phase is to complite all docummentation needed to get
concessionare agreement and as well as licence. In those studies are
included the following studies: hydrology study, geology study, hydro
technical design, power connection with distribution network,
preafisibility study, enviromental impact assessment study, bussines
plan and legal framework of the company already established. Also is
needed as well as to get water basin and local commune permission.

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142
This phase might continue from 6-8 months, but it is totally dipended
from capacity of the SHPP and the availability of data.

Phase 1: Full Front End-Enginnering Design together with all technical
specification for carry out the bid is part of the first phase. Based in the
technical specification will be selected all suppliers of machinery part
and as well as turn key contractor for civil enginerring part. This phase
might continue from 6-8 months, but it is totally dipended from
capacity of the SHPP and the availability of owner to get fast contract
with different suppliers.

Phase 2: This is real phase of implementation all civil enginnering tasks together
with Faza e realizimit praktik t t gjitha punimeve ndrtimore, s
bashku me instalimin e t gjitha pajisjeve elektro-mekanike nga ana e
t gjith kontraktorve. Gjat ksaj faze duhet q t gjitha punimet t
supervizohen pr t garantuar cilsin e punimeve ndrtimore, s
bashku installation of all machineries. Also, an important attention
shown be drawn during the implementation of civil and machinery
installation especially to be on line with Enviromental Managment
Plan. This phase might continue from 16-24 months, but it is totally
dipended from capacity of the SHPP and it continues from the first day
of construction up to the day of testing.

Phase 3: Testing phase of electro-mechanical equipment and command room
might continue from two to three months. Also in this time is included
phase of testing the work of SHPP in paralel with distribution network
(6/10/20 kV) at the closed substation.

Phase 4: Operation phase will start from the momentum of reaching agreement
and signing it with distribution company or with anyone elegible
consumers. An great importance should be given also to operation and
maintenance plan and that of course should be on line with
Enviromental Managment Plan already approved by the Local
Enviromental Authority.

Main objective to build/ rehabilitate each one of the SHPP are: sustainable
electricity supply for region by using renewable energy sources like hydro
potential. Also, construction/ rehabilitation of this SHPP will reduce
technical losses on transmission and distribution; improve quality of
electricity supply by securing normal level of voltage at end-users, create
jobs especially in remote areas (villages) which actually are with very high
rate of unemploiments.

8.11.1 Analize of advantagies of Small HPP to other Technologies
used for generation of electricity
The construction of Small HPP will bring a lot of positive impacts in the lokal
economy of Kosova. Some of these pozitive impacts are:

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1. Using of national economic resourses: professionlas and foerign
companies, together with albanian subcontracters may realise the
planification of rehabilitacion and construction of new HPP, as the case of the
HPP taken for analise. Most of investments (abort 50-60%) are the
investments on the construction objects, wich will make posssible employ of a
considerable number of pople in rural regions of Kosova, whwre the
imploiment is necessary. There is a need just for some imported electro-
mecanic and hydro-mecanic equipment.

2. Using of local renewble energy resorses; In spite of import of electricity,
or import of duel for function of TPP, for generation of electricity the HPP will
use a national renewble energy resurse, like hydroenergy.

3. Supplying electricity with limited negativ impacts on the atmosfere,
eliminiting green house gas. Small hydropower plants will provime
electricity with minimale environmental impacts. A detailed analyse for this is
shown in Chapter 7.

4. Reduction of transsmission and distribucion losses The generation of
electricity , near the consumers, reduct the transsmission and distribution
loshes in the electrical network in Kosova.

5. Improvement of electricity supply in remute areas (regions). Actually
most of zonave te largeta in Kosova have absences in electricity supplying.
Thare are a lot of interruption of electricity supplying in these regions,
because of nonefficent network, high cost of suppllying and out standarts
levels of pressure. HPP that will be constructed and rehabilitated will improve
dramatically the electricity suppllying in these regions.

There are some general impacts, because of construction of Small HPP in the
economy of Kosova.. It have to be mentioned that privat operaters (if will take with
concession egsisting Small HPP) in the begining will keep the responsibility of lerning
process related to participating in the electricity privat sector.

8.11.2 Structuring of Finacial Packet for construction of each new
small HPP, or egsisting one tha have to be rehabilitated
The company that will sponsor the HPP, for its construction or rehabilitacion will
posede the principal packet of aksioneve of this HPP. It is responsibility of the
company to show the interes and necessary experience to invest in the exploitation
e hydroenergy potencial in Kosova.

The comany that will ask to construct or rehabilitate te HPP have to show its
abilities to colaborate with well known companies, like lider companies that produce
the equipment of hidroenergy also the insured service companies for standarting
solutions and costumizing that fullfill all requirements for hydroenergy generation
and the rehabilitation of small, midlle HPP, that also present their interes for
implementing the Strategy of Energy.


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144
Above mentioned values will be used for covering all investments, including
constructing work, hydromecanic work and operating work of HPP.

Table 54.: Finnacial structure packing for the construction of Kuqishta SHPP
Share holders and
participating banks for
establishment of full financial
package
Equity Loan from Different Banks
Total
Investment
Value
Value in %
Interest
Rate Value in % Value
Share-holders for securing equities:
Company X 890171 24.57 890171
Other shareholders 196729 5.43 196729
Total Equity 1086900 30 1086900
Participating Banks for securing loans:
Bank Y1 7.50% 724600 20 724600
Bank Y2 8.50% 362300 10 362300
Bank Y3 7.00% 1449200 40 1449200
Total Loan 7.36% 2536100 70 2536100
Total Value of Investment 2210346 724600 3623000
Collateral secured by Share-holders:
Company X. 1557799 40.95
Other shareholders 344276 9.05
Goverment of Kosove/Foreign
Donors 1902075 50
Total Colateral 3804150 100
Colateral required by banks:
Bank Y1 1086900 28.6%
Bank Y2 543450 14.3%
Bank Y3 2173800 57.1%
Total Colateral required 3804150 100

8.11.3 Share-holders for insuring the equities for each new HPP or
for that neeeds to be rehabilitated.
The principal share holder of HPP will be x- Company. A litlle part of shares may be
provided also by their share holders, like is shown in table 75. The construction of
this HPP should be the strategic initiative for x Company, because it is a holding
company that posedes a big activity in their branch of economy.

8.11.4 Banks that will take place to loan the construction of new HPP
or rehabilitating egzisting ones.
Actually there are a lot of licence banks in Kosova. All banks are private one. Smaller
banks, on the other hand, tend to have a comparatively large equity base (paid-in
capital), with only a small portion of assets accounted for by loans. Most of the
banks are characterized by short maturity, high interest rate and total garancy. From
Mars 2004, abort 40% of loans are griven with matyrity 1 year or less. Depending on
maturity the interest rate varies from 7% up to 215%. Loan in foreign currency,
often specify a interest rate LIBOR+x. Long maturity loans ask a high leve of
garanci, so it is related with low interest rate. The max of maturity that is acepted by
banks up to now is 7 years. There is no any insecured loan. Every loan line ask to be

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145
insured. Banks are totally secured in the choise that approve. Prefered often are
mortgaged real property, but borrowers have solided the Money, invetiration and
other assets. Loans secured fromm cashing (or from flow cash of borrowers) are
unusal. In fact, denominated value of security of loan is 70% of value of garancy, or
less. Second resorses user for riturnig of loan often are an indispensable element for
aproval of loan.

Up to the begining of 2004, bigist borrowers have been businesmens (31%),
industry (17%), real property (13%), construction (10%), hotels and restaurants
(8%). Infrastructure, including the energy , is calculated just 1% of loan.

There is no detailed information to compile the loan portfolio. Only Credins Bank has
a complete list of its creditors: Loans in EURO from 18,000 to 4.0 million EURO, with
an average of 340,000 EURO: if we exclude the three big loans than the average is
reduced to 21,000 Euro.

The loans are mainly financed from the fund of creditors deposits. Most of the funds
are determined at the deposit time-schedule (1 12 month), which pays interest at
the market closing rate. Actually the interest rate for this kind of deposit is about
5%. So the relatively high interest rate given to the bank creditors reflect the risk of
the given loan above the lending costs.

For some banks long term lending are unusable. In most cases, banks use the low
cost and short term debits (creditors deposits) to finance the loans with long term
maturity, by having a wider cover of the loans risk. The incongruity of time structure
is considered as acceptable.

Long-term borrowing on the part of the banks is unusual. In most cases, banks also
use low-cost short-term debt (customer deposits) to finance loans with a longer
maturity, thus resulting in a large spread to cover credit risks. The resulting
mismatch of term structures is considered to be acceptable.

The following conclusions can be drawn with regard to the banking sectors position
on SHPP lending:
Banks would only provide fully secured loans with long maturity (say, up to
eight years). Even partial lending against receivables is considered too risky
for a new business applying for credit. SHPPs would have to build up a good
track record and reputation for creditworthiness before banks may accept
power sales/purchase agreements as a security covering some credit risk.
SHPP facilities will only have a low collateral value. Other highly rated
collaterals will be needed for acceptable security arrangements. Secondary
sources for loan repayment will also be instrumental in getting a loan
approved.
Currently, most banks are not interested in the refinancing of loans through
long-term borrowing, even if the funds were accessible on concessionary
terms. The banks are more concerned about credit risks than about their cost
of borrowing. Moreover, long-term debt offered to refinance SHPP loans

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146
would have to compete with extremely cheap short-term debt that is plentiful
in supply through foreign-currency time deposits.
The banks preferred form of financial support for SHPP lending is credit
enhancement. Their first choice are (partial) credit guarantees covering the
creditor in the case of default on the part of the borrower.

In fact, a partial credit guarantee would have several advantages for both the banks
and the SHPP borrowers: It reduces credit risks and, thus, increases the banks
willingness to lend to SHPPs and/or to extend loan maturity. It eases credit
constraints that the banks collateral requirements impose on SHPP borrowers,
notably those with a limited capacity to secure a loan. And it reduces the lending
costs of the banks and thus may result in improved credit terms offered to the
borrowers (e.g. lower interest rate, longer maturity). Therefore, financial support
provided to banks that are willing to consider SHPP lending should include the option
of partial credit guarantees.

8.11.5 The collateral provided by Share Holders in orden to construct
new HPP, or to rehabilitate those egzisting ones.
Since the Kozhnjer HPP is privatisied the experience of privatization is limited There
are a lot of issues that accelarate the rehabilitacion and the construction of new
HPP, but also there are a lot of barriers:
The hesitation of banking sector: The banking sektor is not so
predisposed to give loans to new Owners, to rehabilitate egsisting HPP or
construct new ones, because of folowing reasons:
- A prudent borroing behaivar and requirements for a large colletaral is
actually the atitude of most of the banks;
- Small private HPP are not well known yet;
- It is not possible cofinancing through the operators and equipment
furnitors;
- Inovative character of concession contracts;

Deficiency in the projects of existing plants and development of new
HPP: Technical-economic assessments show the deficiency in projects of
some small HPP (For very small capacity HPP the rehabilitation is very
expensive). The interest presents the appreciation of possibilities to improve
technical-economic efficiency of existing plants through increasing their
capacity and also the construction of HPP with bigger capacity than potential
of HPP evidenced in this study. Also it is necessary to review and to complete
the documentation of HPP that up to now arent proposed for buying by
private operators. For new HPP have to be prepared the appropriate
documentation in order to be possible the financing by banks.

The preparation of a project and the organization of transparent and
competitive privatization procedures: In this study is observed that
there are more than 23 identified location with a capacity around 75 MW,
from which only 1 has passed to private operators. Good preparation of
documented project requests detailed fulfillment of all respective projects

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147
(hydrologic, geologic, business-plan topographic, financial profit,
environmental, ecc);
Rehabilitation strategies of existing HPP: New owners and
concessionaires now are in a learning phase and have only one example of
Kozhnjerit. They have to affront a lot of problems like:
- To get concession new operators have to present rehabilitation plans and
they have to take all necessary steps to implement them.
- To get additional financial resources, business plans and investment studies
are required, in order to prepare bankable projects ready to be financed.

Ongoing process of Reform on Electricity sector: As is discussed in
above mentioned sections, Government of Kosova is making a active reform
in the electricity sector. According to plans a holding company (KEK Holding),
independent generation, transmission and distribution companies are going to
set-up. Actually the transmission Operator as a independent company is been
created. This reform also is disturbing the banks, wich have no idea wich from
new companies will responsible for PPA-t with operators of small HPP. These
reforms may cause delaying bills payments. So it is so important approval of
trade rules and other procedures, by Energy Regulation Office, that show
clearly the obligations of new operators to purchase electricity produced by
small HPP.

Creation and set-up of renewable Energy Fund: Following energy sector
development in general and Electricity sector development especially, The
Mining and Energy Ministry of Kosova have to ask different donators the
raising of scheme of financial support first oriented to small HPP and after to
other kind of renewable energies.

9. Preparation of a database for the most feasible areas for
the construction/ rehabilitation of small HPP from private
investors.
For the preparation of this study many materials at our disposition have been
analyzed, and visits have been made in those areas. The study was extended to all
the hydro resources in all Kosovo territory.

The aim of our study was evidencing the hydro energetic potential existing in these
water resources, the possibility to use them for the production of electricity, without
harming other sectors of the economy. The study was concentrated more on the
possibility of constructing small or medium HPP as objects that could be constructed
easily, in a short period of time and without harming the environment or other
areas. By the construction of these HPP the natural streams remain unchanged:
these solutions are cheap and do not need to deal with the adjustment of the
streams and fulfillment of other needs with water. Through these HPP the electricity
production will depend on the natural streams during the year.


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148
The studies done up to now in this field could be led to concentrate in some areas,
which have similar hydro energetic parameters. 1. North-west area Pej Junik; 2.
South-west area Dragash-Prizren; 3. The area north of Mitrovica and 4. East and
north-east area of Dardana and Llapi.

Area 1, is a very interesting area. In this area the rivers have more flow and what is
more important, even the geodesic potential is considerable, so the hydro energetic
gradient (kWh/km2) is at maximum.
The Rivers Lumbardhi of Peja., Lumbardhi of Dean, Lumbardhi of Lloanit and
Erenik River are included in this area. From all the rivers of the area an average
production of about 194 million kWh/year could be gained, separated between the
rivers:
From the Lumbardhi of Peja a yearly production of 79 million kWh/year
could be attained.
From Lumbardhi of Dean about 64 million kWh/year could be attained.
From Lumbardhi of Lloan about 14 million kWh/year could be attained.
From Erenik river about 37 million kWh/year could be attained.

Area 2 is ranked second, based on the hydro energetic gradient. The rivers included
in this area are: Plava, Lumbardhi of Prizrenit and Lepenci. From all these rivers an
average yearly production of about 69 million kWh/year could be attained, separated
between the rivers:
From Plava River; about 36 million kWh/year could be attained.
From Lumbardhi of Prizren; about 7 million kWh/year could be attained.
From Lepenc River; about 26 million kWh/year could be attained.

For this area the hydro energetic gradient is about 4 times lower than that of area 1.

Area 3 is ranked third, regarding the hydro energetic gradient. The rivers Bajska and
Bistrica (Batare) are included in it. An average of about 7 million kWh/year could be
attained from these rivers. This area from the hydro energetic gradient point of view
is 9 times poorer than area 1.

Area 4 is the poorest area with regard to the hydro-energetic aspect, with a ranking
about 12 times lower. The river that presented some interest in this area is the river
Kaandoll. About 3 million kWh/year could be gained from this river.

The above indicators show that the small HPP that do not have environmental
problems are those in the area 1 North-West and area 2 west; with a general
production of about 260 million kWh/year and area 1 especially has satisfactory
indicators.

From the studies done for every river, the possibility of constructing Hydro Power
Plants is determined within every river. The hydrotechnic calculation (for every
Hydro Power Plant are done. The hydraulic calculations for every main work, based
upon which the volume of the works are calculated and the estimation of
construction works are done. All the evaluations, for this phase of the study, are
done based on the maps scaled 1 : 25 000. For special HPP, at further phases,

___________________________________________________________________________
149
topographic and geologic measurements should be done on the ground. Based on
this data and other data coming from hydrologic studies the hydro-energetic
parameters would finally be fixed, belonging to the project idea phase.

The following analysis of every river will be presented:

Lumbardhi of Peja River - can be constructed three SHPPs:

- Kuqishta SHPP, with 80 m head, calculated inflow 6 m3/sek, installed
capacity 3900 kW dhe average yearly electricity generation 17 milion
kwh/year.

- Drelaj SHPP, with 120 m head, calculated inflow 6.5 m3/sek, installed
kwh/year.

- Shtupeq SHPP, with 120 m head, calculated inflow 8 m3/sek, installed
capacity 7600 kW dhe average yearly electricity generation 35milion
kwh/year.

Lumbardhi of Deanit River - can be constructed two SHPPs:

- Bellaj SHPP, with 130 m head, calculated inflow 5 m3/sek, installed
kwh/year.

- Deani SHPP, with 160 m head, calculated inflow 6.5 m3/sek, installed
kwh/year.

Lumbardhi of Lloanit River - can be constructed one SHPP:

- Lloan SHPP, with 250 m head, calculated inflow 1.5 m3/sek, installed
kwh/year.

Erenik River - can be constructed three SHPPs:

- Mal SHPP, with 200 m head, calculated inflow 2.4 m3/sek, installed capacity

- Erenik SHPP, with 100 m head, calculated inflow 2.4 m3/sek, installed
kwh/year.

- Jasiq SHPP, with 90 m head, calculated inflow 2.6 m3/sek, installed capacity

___________________________________________________________________________
150

Plav River - can be constructed two SHPPs::

- Dragash SHPP, with 55 m head, calculated inflow 5 m3/sek, installed
kwh/year.

- Orush SHPP, with 100 m head, calculated inflow 67 m3/sek, installed
capacity 5600 kW dhe average yearly electricity generation 25.6 milion
kwh/year.

Lumbardhi of Prizreni River - can be constructed one SHPPs:
- Rean SHPP, 70 m head, calculated inflow 2.6 m3/sek, installed capacity

Lepenc River - can be constructed two SHPPs:
- Brezovica SHPP, with 60 m head, calculated inflow 4.5 m3/sek, installed
kwh/year.

- Lepenci SHPP, with 60 m head, calculated inflow 7.6 m3/sek, installed
kwh/year.

Bajska River - can be constructed one SHPP:
- Bajska SHPP, with 85 m head, calculated inflow 0.5 m3/sek, installed
kwh/year.

Bistrica (Batare) River - can be constructed one SHPP:
Batare SHPP, with 60 m head, calculated inflow 2.3 m3/sek, installed capacity 1100

Kaandoll River - can be constructed one SHPP:
- Majanc SHPP, with 50 m head, calculated inflow 1.5 m3/sek, installed
kwh/year.

Drini i Bardh (Drini and Deani) Rivers - can be constructed one SHPP:

- Mirusha SHPP, with 15 m head, calculated inflow 45 m3/sek, installed
kwh/year.

___________________________________________________________________________
151
10. Preparation of SHPP Concepts for their
Construction/ Rehabilitation Promotion to Private I nvestors
In this section are presented main data for each new/rehabilitated project regarding
their technical, hydrological and investment values. Also, should be mentioned that
main parameters are related with each river as the following:

Lumbardhi of Peja River
1. KUQI SHT HPP (1150-1070)
Q
mes
= 4.00 m
3
/sek I
c =
2.20 milion
Q
HC
= 6.00 I
t
= 1.20
H = 76 ( 80 ) m I
st,pr
= 0.20
N = 3900 kw I
plot
= 3.60 milion
E = 17 milion kwh/ year

2. DRELAJ HPP ( 1070-950)
Q
mes
= 4.20 m
3
/sek I
c
= 2.90 milion
Q
HC
= 6.50 I
t
= 2.10
H = 112 ( 120 ) m I
st,pr
= 0.30
N = 6200 kw I
plot
= 5.30 milion

3. SHTUPEQ HPP ( 950-830)
Q
mes
= 5.30 m
3
/sek I
c
= 3.55 milion
Q
HC
= 8.00 I
t
= 2.60
H = 113 ( 120 ) m I
st,pr
= 0.35
N = 7600 kw I
plot
= 6.50 milion

L. Lumbardhi of Dean River
4. BELLAJ HPP ( 940-700)
Q
mes
= 3.40 m
3
/sek I
c
= 2.80 milion
Q
HC
= 5.00 I
t
= 1.90
H = 123 ( 130 ) m I
st,pr
= 0.30
N = 5200 kw I
plot
= 5.00 milion

5. DEAN HPP ( 810-650)
Q
mes
= 4.30 m
3
/sek I
c
= 2.95 milion
Q
HC
= 6.50 I
t
= 3.00
H = 152 ( 160 ) m I
st,pr
= 0.35
N = 8300 kw I
plot
= 6.30 milion
Lumbardhi of Lloan River
6. HI DROCENTRALI LLOAN ( 950-700)
Q
mes
= 0.95 m
3
/sek I
c
= 1.50 milion
Q
HC
= 1.50 I
t
= 1.50
H = 244 ( 250 ) m I
st,pr
= 0.20

___________________________________________________________________________
152
N = 3100 kw I
plot
= 3.20 milion

Lumbardhi of Erenik River
7. MAL ( 1000-800)
Q
mes
= 1.55 m
3
/sek I
c
= 2.15 milion
Q
HC
= 2.40 I
t
= 1.70
H = 197 ( 200 ) m I
st,pr
= 0.25
N = 4000 kw I
plot
= 4.10 milion

8. ERENIK HPP ( 800-700)
Q
mes
= 1.55 m
3
/sek I
c
= 1.40 milion
Q
HC
= 2.40 I
t
= 0.70
H = 100 ( 100 ) m I
st,pr
= 0.20
N = 2000 kw I
plot
= 2.30 milion

9. J ASIQ HPP (700-610)
Q
mes
= 1.85 m
3
/sek I
c
= 1.05 milion
Q
HC
= 2.60 I
t
= 0.70
H = 88 ( 90 ) m I
st,pr
= 0.135
N = 1900 kw I
plot
= 1.90 milion
E = 9.7 milion kwh/ vit

Lumbardhi of Plav River
10. DRAGASH HPP ( 940-885)
Q
mes
= 3.40 m
3
/sek I
c
= 1.50 milion
Q
HC
= 5.00 I
t
= 0.65
H = 52 ( 55 ) m I
st,pr
= 0.15
N = 2200 kw I
plot
= 2.30 milion

11. ORUSH HPP ( 850-750)
Q
mes
= 4.70 m
3
/sek I
c
= 2.15 milion
Q
HC
= 7.00 I
t
= 1.90
H = 95 ( 100 ) m I
st,pr
= 0.25
N = 5600 kw I
plot
= 4.30 milion
E = 25.6 milion kwh/ year

Lumbardhi of Prizren River
12. REAN HPP ( 670-600)
Q
mes
= 1.75 m
3
/sek I
c
= 1.15 milion
Q
HC
= 2.60 I
t
= 0.50
H = 67 ( 70 ) m I
st,pr
= 0.15
N = 1500 kw I
plot
= 1.80 milion
E = 6.7 milion kwh/ vit


___________________________________________________________________________
153
Lumbardhi of Lepenc River
13. SHTERPC HPP ( 890-830)
Q
mes
= 3.05 m
3
/sek I
c
= 1.80 milion
Q
HC
= 4.50 I
t
= 0.70
H = 57 ( 60 ) m I
st,pr
= 0.20
N = 2100 kw I
plot
= 2.70 milion

14. LEPENCI HPP ( 640-580)
Q
mes
= 5.10 m
3
/sek I
c
= 2.65 milion
Q
HC
= 7.60 I
t
= 1.00
H = 54 ( 60 ) m I
st,pr
= 0.25
N = 3500 kw I
plot
= 3.90 milion
E = 16 milion kwh/ vit

Bajska River
15. BAJ SKA SHPP ( 705-620)
Q
mes
= 0.30 m
3
/sek I
c
= 0.85 milion
Q
HC
= 0.50 I
t
= 0.15
H = 78 ( 85 ) m I
st,pr
= 0.10
N = 300 kw I
plot
= 1.10 milion

L. Batare
16. BATARE SHPP ( 540-480)
Q
mes
= 1.50 m
3
/sek I
c
= 1.66 milion
Q
HC
= 2.30 I
t
= 0.39
H = 60 ( 60 ) m I
st,pr
= 0.15
N = 1100 kw I
plot
= 2.20 milion

L. Kaandoll
17. MAJ ANC SHPP ( 610-560)
Q
mes
= 1.00 m
3
/sek I
c
= 0.87 milion
Q
HC
= 1.50 I
t
= 0.20
H = 47 ( 50 ) m I
st,pr
= 0.03
N = 600 kw I
plot
= 1.10 milion

Drini i Bardh (Drini i B. + Deani) Rivers
18. MI RUSH SHPP ( 465-450)
Q
mes
= 30.20 m
3
/sek I
c
= 9.20 milion
Q
HC
= 45.00 I
t
= 5.00
H = 12 ( 15 ) m I
st,pr
= 0.50
N = 4600 kw I
plot
= 14.70 milion


___________________________________________________________________________
154
11. Support Program for SHPP, including fiscal and regulatory
incentives, and financial support mechanisms
11.1 Development of a SHPP Support Strategy
In principle there are two strategies in developing the small hydropower sector and
to provide assistance to the new owners:
Comprehensive costruction/rehabilitation of a number of hydropower plants;
Gradual repair and modernisation of existing plants with the objective to get
the first units into operation as soon as possible by doing some small needed
rehabilitation in to cumulate the investment needed for their full
rehabilitation.

For methodological purposes, these two approaches are compared and the
advantages and disadvantages are assessed.

11.2 Comprehensive rehabilitation of power plants
This strategy would concentrate on those investors interested in the rehabilitation of
their power plants and which are able to contribute to the required amount with
their own means.

The advantages of this approach are: The shortcomings of this approach are:
With this strategy it would be secured that the
most efficient technology will be adopted and that
the plants operate without problems over the next
25 years.
Only a very limited number of new operators
would be able to raise the necessary funds
covering their contribution.

The Albanian banking sector is very reluctant to
offer the necessary financing for this new
business in Albania over the necessary duration
and with the necessary volume.

Lack of interest, the new operators more
interested in low-cost repair measures to start
operation as soon as possible to generate
revenue.

This strategy would concentrate on those urgent measures, which will enable the
new operators to put their SHPPs into operation, by concentrating on those SHPP
requiring less investment. Gradual repair and modernisation of existing plants with
the objective to get the first units into operation as soon as possible by doing some
small needed rehabilitation in to cumulate the investment needed for their full
rehabilitation.

The advantages of this approach are: The shortcomings of this approach are:
Each operator would start the repair according to
his possibilities to raise funds from other
operations
The highest number of power plants would
Non-optimal investments would be
undertaken leading to a loss in economic
resources due to a lack of a
comprehensive planning approach

___________________________________________________________________________
155
start to operate and revenues would be
generated very soon
Repair would be undertaken with available
material, equipment and know-how, a
learning process would be initiated
The operators would be confronted with
major operation risks due to insufficient
repair measures
Security and environmental protection
measures could be neglected

The strategy for the Donnors Support Scheme has to be structured in such a way
that both development strategies can be promoted. During the coming years, the fist
strategy will be of major importance for costruction of new SHPP and second
strategy will be important for rehabilitation of existing SHPP.
11.3 Establishment of a Supporting Fund regarding the Promotion of
Renewable Resources
The MEM Fund of Renewable Energies will be established based on the Law on
Energy Efficiency and as well as other donors and supporting programs that will
focus on the following issues:
Increase of loans:
- Partial loan guarantees can cover the lender in case of a failure from the
borrower.
Measures for financing of investments to use the hydro-sources through the
construction of small HPP:
- Presentation of SHPP as a feasible technical-economical solution for
Kosovo;
- Widening of financial resources based on loan financing.

Improvement of technical constructions of the SHPP centrals:
- Quality control for proposals to invest in the SHPP;
- Improvement of centrals efficiency and better usage of the water and
turbines positioning;
- Respecting of security aspects;
- Respecting of environmental aspects.

Intercession in the case of unsolved issues and lack of institutional barriers:
- Promotion of long term PPA for privileged producers as is the case of
SHPP;
- Offering of information about the experience of small HPP in the EU
member countries and the energy acquis communautaire based on the
support given by the Energy Green Card.
- Establishment of IPP Association in the field of Small HPP in Kosovo in
cooperation of this association with those of different EU countries.
- Contacts with the Office for the Regulation of Power Sector with the Power
Regulators at the European Union dealing with the small Hydro Power
Plants issues.
- Market analysis for the equipments of the SHPP, projecting companies and
their operators.

Promoting of further steps toward the privatization:

___________________________________________________________________________
156
- Preparation of detailed packages of respective projects, based on this
study;
- Elaboration of competitive tendering procedures.
11.4 Design, Institutional Set-up and Operation of Renewable
Energy Fund (RE Fund)
As requested by the Terms of Reference for this assignment, the Consultant
presents a strategy to MEM for Financing Support Scheme. Based on the analysis
and discussions with Kosovar energy experts, it is recommended that the support
scheme should have a credit and technical assistance component:

Legal Status: The legal status of the proposed Renewable Energy (RE) Fund
should be that of a non-governmental support fund established and
authorised by the project-executing agency (Ministry of Industry and Energy
in cooperation with the Ministry of Finance).
Objectives: In the initial phase, the objective of the fund is to provide
financial support and technical assistance to lending operations targeted at
SHPP. There should be the option to include other RE-technologies and
objectives at some later stage.

Set up and Utilisation of Financial Resources: The RE Fund shall be
composed of two facilities: Technical Assistance Facility and a Financing
Facility:
- The Technical Assistance Facility will be used to develop sound project
proposals and for a quality insurance.
The Financing Facility will provide to the participating banks the possibility for
re-financing and partial risk guarantee.

Duration of Fund Operation: The fund shall have an initial operating life of
twelve years. Upon project termination, the fund operator has to use its best
efforts to liquidate the assets of the fund and to return the proceeds to the
project-executing agency.

Eligibility: Review and approval of SHPP loans shall be at the
discretion of participating banks. A SHHP investor/borrower becomes
eligible for technical assistance upon the decision of a participating
bank to screen/review a loan application (investments proposal).

Diversification Criteria: The financial exposure of the RE Fund with respect
to any SHPP investment/loan should be limited to less than 20% (15%) of the
total contribution to the Financing Facility. In the event of defaults the limit
shall be reduced in direct proportion to the resulting loan losses (or the called
guarantees).

Credit Terms: The terms of the SHPP loans are at the discretion of the
participating banks. As per the implementation agreement, however,

___________________________________________________________________________
157
participating banks will be required to give due consideration to the mitigating
effects of the funds services when defining the terms of SHPP loans.

Fund Administration: Disbursements into the RE Fund (e.g. Financial
Cooperation contributions) should be deposited into two special accounts
(Technical Assistance Facility account and Financing Facility account) to be
administered by an Agent Bank recruited on the basis of competitive
bidding. The Agent Bank may also act as a trustee. Disbursements from the
technical assistance account are contingent on a participating banks decision
to review a loan application (pre-selection by banks). Security arrangements
using the financing facility account or disbursements from this account are
made upon the approval of a SHPP loan by a participating bank.

Fund Management: The responsibility for the operation of the RE fund
should rest with a Board of Trustees that is composed of independent experts
(energy, financial, etc.). The trustees will represent the RE Fund, monitor and
evaluate the funds performance and ensure compliance with the funds
objectives. The Board of Trustees will appoint a fund manager (or a
management team) responsible for all practical matters of fund operation
(liaison with participating banks, financial control and reporting, etc.).

Selection of Participating Banks: Interested banks licensed in Kosovo will
be notified about the objectives and operational rules of the RE Fund and may
apply for participation in the project. It is expected that 3-4 participating
banks can be recruited.

Prokurimi: Procurement: Procurement of equipment and services financed
by SHPP loans is the responsibility of the investors.

Coverage and Fee Structure of Partial Credit Guarantees: Participating
banks qualify for partial risk guarantees provided by the fund for approved
SHPP loans. The guarantee will be capped at an agreed-upon amount and
cover, within the agreed-upon limits, any debt-servicing shortfall irrespective
of the cause of default. The design of the guarantee arrangements will be
flexible. In particular, the guarantee amount may vary over the life of a loan.
(For instance, up to 50% of outstanding principal, minus amounts paid in
previous periods and not reinstated; or up to x% of the outstanding principal
for specific periods).

SHPP Loan Refinancing: In order to make refinancing of SHHP loans
through the RE Fund attractive, the terms offered must be competitive with
the costs of borrowed funds that the banks would use for SHPP loans.
11.5 Institutional Set-up
It is the Consultants recommendation that the RE Fund should be managed by the
banking sector, since the Fund resources can only complement the resources made
available by the banks themselves.


___________________________________________________________________________
158
11.5.1 Institutional Structure
The institutional structure proposed by the Consultant is:
Agent Bank: An Kosovar Bank would be selected by a competitive tender to
act as the Agent Bank and as Trustee..
Board of Trustee: This board supervises the operation of the fund. It is
suggested that independent energy experts, representatives of the banking
sector and Governmental institutions compose the Board.
Fund Manager: The Board of Trustee will assign a Fund Manager for the
day-to-day operations.
11.5.2 Agent Bank
It is proposed the Renewable Energy Fund, which will establiushed by MEM with the
help of different donors, will be used for two different intervention:
Technical Assistance Facility: Fund-financed technical assistance in the form
of engineering advice, project preparation, business planning and other
services of a technical nature will be provided to both eligible SHPP
investors/borrowers and participating commercial banks from Albania. The
recommended interventions of the Technical Assistance Facility are:
Assistance to operators in developing project proposals;
Assistance to banks to assess technical and economic aspects of hydropower
plants;
Assistance to the Ministry of Energy and Mining to prepare project
documentations for forth-coming privatisation calls for tender.

Financing Facility: The financing facility will be used to provide credit
enhancements (partial credit guarantees) for SHPP loans approved/granted by
participating banks or to refinance approved SHPP loans, subject to the
preferences of participating banks. The shares of the RE Fund allocated to
technical assistance and financing have to be determined when creating the
fund. The financing facility will be used for:
Refinancing of loans to hydropower plant operators;
Partial risk guarantees.
11.5.3 Bordi Drejtues (Mbykqyrs)
Goal of MEM is to establish financial supporting programs with the main objective to
promote energy efficiency and renewable energy sources. Contacts with MEM
experts shows that exists a great interest of different donors which has promise to
contribute in this fund.

Considering very important the preparatory phase for establishment of energy
efficiency and renewable source fund it is recommanded that financing of different
donors, to be managed by a independent structure, leaded by banking sector. This
will allow a fast implementation for this fund to be utilise from the
construction/rehabilitation of SHPPs.


___________________________________________________________________________
159
Example of restructuring and oeration of Energy Efficiency and Renewable Source
Fund will be demonstrate that Kosovo Goverment is promoting this part of Energy
Strategy through private investors.

Preafisibility SHP 2006

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