TPP Stanari does not meet the EU directives and laws on protection of the environment

Bearing in mind the frequent statements of EFT’s and Government of Republic of Srpska representatives how TPP Stanari is abiding the high standards of EU in the area of environment protection, Center for Environment has in communication with European organizations working on legal issues concerning the environment protection, received information that it is very likely that during the process of environmental permitting the EU[1] directive on environmental impact assessment and the EU directive on large combustion plants[2] were breached.

Miodrag Dakić, coordinator of the Energy and Climate Change Program adds:
“It is very disputable that EFT has after the environmental impact analysis was done and the environmental permit issued, changed the plan for TPP Stanari, in which the French technology with gross efficiency of 43% was swapped with Chinese technology with gross efficiency of only 38,5%. Such technology does not meet the demands of EU IPPC[3] directive. Adding to that, the power of the TPP was changed from 410MW to 300MW, which calls for a new environmental impact assessment to be made, which was never done”.

Concession for the coal in Stanari mines, as well as the TPP Stanari was given to the controversial EFT group, owned by Vuk Hamović. EFT group is the largest electricity trader in the region, and was the subject of multiple litigations and investigations due to indications on manipulation with the prices electricity. Until now, the courts have failed to prove the responsibility of the EFT group.

It is indicative that the European bank for research and development (EBRD) had backed out from financing the TPP Stanari, our doubts are that the reasons were the possible non–compliance with the EU directives. Instead of EBRD, a credit of €350 milion was arranged with the China development bank, which does not have a reputation of high environmental standards in their lending policies.

Even though BiH is still not obliged to abide by most of the EU directives, due to the fact that it is only in the process of becoming an EU member, by signing the Treaty establishing the Energy Community[4], the institutions in BiH, including those in RS have committed themselves on to follow a certain number of EU directives and international treaties. Among them is the EU directive on environmental impact assessment, EU large combustion plants directive (LCP directive). EU LCP directive demands that the environmental impact assessment also analyze the possible influence that the project could have on neighboring countries, and consults the relevant institutions in those countries. This demands was also not met.

“The concession contract for coal, for the exploitation on the coal beds of Raškovac, Dragalovci and Ostružnja, states that the total reserves of coal, with the exploitation dynamics of 3.5 millions of tons per year are sufficient for maximum 50 years of exploitation. The concession is valid for 30 years and can be prolonged as well for another 15 years. This means that there is a high possibility that after the concession period is finished, the authorities of Republic of Srpska in return receive a worn–out TPP and a mine with all of its economically viable coal stock used up. Such decisions of the governing bodies are very irresponsible towards the citizens and the future generations, especially when keeping in mind that the electricity it produces, EFT will not be obliged to sell in the home market, while the environmental damage and the obligations of BiH regarding  increased greenhouse gases emission will fall on the domestic institutions to bare.” Dakić added.

Coal is a non–renewable and extremely dirty source of energy. In their recently published study, HEAL (Health and Environment Alliance)[5] has estimated that burning of coal in TPP’s, only in Europe, causes 23 300 premature deaths each year, while costs of medical treatment, related time away from work and other reasons bring upon a loss of €54,7 billion. This external costs are not presented in the studies for TPP Stanari, nor are they mentioned in the statements of the politicians.

Dakić concludes: “Tomorrow, the representatives of the institutions and investors will talk only of the positive sides of the new TPP, most of the time based on utterly wrong and false assumptions. Unfortunately, not even from the Ministry of Spatial Planning, Civil Engineering and Ecology will we hear anything about the possible dangers and harm of this investment. In this manner, the citizens will once again be denied very important information on capital investments, which can significantly influence the quality of their and lives of future generations.”