Kosovo Power Plant Continues to Proceed as Planned

ContourGlobal PLC

Kosova e Re Power Plant Continues to Proceed as Planned

London, 11 October 2018

ContourGlobal plc ("ContourGlobal") notes a statement from World Bank President, Jim Yong Kim, concerning the Kosova e Re power plant project and reiterates its commitment to the project.

Joseph Brandt, Founder and CEO of ContourGlobal, said:

"The World Bank is irrelevant to the successful completion of the Kosovo e Re power plant, a project crucial to the future of Kosovo's energy supply and economic development. The Bank's role was never to provide financing to the project and its statements about the project have no impact on the process. We, together with the Government of Kosovo remain firmly committed to this important project which reached the critical milestone of commercial close last year. We remain confident of securing the necessary financing and a timetable which will see construction starting in early 2019."

ContourGlobal continues to make progress arranging the financing for the Kosova e Re plant, none of which rely on World Bank support, including a mix of financing from Development Finance Institutions, such as the Overseas Private Investment Corporation, and international Export Credit Agencies. These discussions are on track.

The selection process for the Engineering, Procurement and Construction (EPC) providers remains on schedule. Following announcement of the Initial Selection process in June, four highly experienced international applicants were pre-qualified in September. An RFP process is now underway.

Background on Kosova e Re

ContourGlobal continues to believe that Kosova e Re is of critical importance to the people and economy of Kosovo. The Government of Kosovo has recognised the need for additional power plant capacity to meet the long-term security-of-supply concerns present in Kosovo and to provide the country's necessary baseload electricity. As part of this strategy, the Kosovo e Re Power Plant will replace the current inefficient and highly polluting units of the Kosovo A Power Plant.

Lignite coal is the only natural resource for large scale energy generation in the country. Coal will remain a key source of fuel for electricity generation for years to come and will provide necessary baseload electricity to complement intermittent renewable generation. Kosovo's economy and people suffer from a lack of reliable electricity and incredibly poor air quality associated with the old existing units. The new Kosova e Re Power Plant will be constructed to the highest efficiency standards and will comply with the latest applicable EU emission requirements. The power plant will bring a stable energy supply, significantly lower pollution and provide economic growth.

The plant will represent the biggest foreign direct investment in the country and help to create approximately 10,000 jobs during the construction phase. It will improve the stability of power supply, putting an end to the €300 million loss per year caused by the current unreliable power supply in Kosovo.

The new plant will result in greatly improved air quality by reducing the emissions of main polluters and will contribute to the improved health of people living and working in the region. Dust emissions will be reduced by 93%, while SOx and NOx will be reduced by 84% and 93% respectively, with CO2 being cut by 37%.

Enquiries:

Investor Relations - ContourGlobal

Gregory Johnson

Tel: +44 0207 355 7321

gregory.[email protected] 

Media - Brunswick

Charles Pretzlik/Simon Maine

Tel: +44 (0) 207 404 5959

[email protected]

About ContourGlobal

ContourGlobal is listed on the premium segment of the London Stock Exchange (TKR: GLO). ContourGlobal is an international owner and operator of contracted wholesale power generation businesses with approximately 4,312 MW in operation in 18 countries and three continents. ContourGlobal operates a portfolio of 101 thermal and renewable power plants across Europe, Latin America, and Africa utilizing a wide range of technologies.