ContourGlobal partners with General Electric for Kosovo project

GE and Contour will now enter further negotiations to agree on final terms for the coal fired power plant project.

Karl Schnadt, executive vice-president and chief operating officer of Contour, said: "We are delighted to move forward with such a world-class company with the commitment and capabilities to build Kosova e Re on time and according to the highest technical, environmental and safety standards. We have been pleased with the rigorous tendering process and the positive response received from the overall market."

The FTSE 250 company said the plant will allow Kosovo to tackle its growing electricity demand self-sufficiently, will improve its citizens' quality of life by reducing emissions, and will end the €300m annual losses caused by the current unreliable power supply in the country.

ContourGlobal added that the plant will end years of unreliable power supply in the country and create an attractive environment for foreign direct investment and sustain growth in the economy, estimating that its own investment will increase the mid-term GDP of Kosovo by at least 2%.

Kosovo's minister of economic development, Valdrin Lluka said: "The government will participate in the negotiation process with the intent of further improving the terms for the benefit of the Kosovo people. Successful implementation of this project has the potential to reshape the overall economic perspective of the country."

At 1215 BST, the shares were down 3.3% at 205.00p.