KOSOVO'S WATER SYSTEM: INTERDEPENDENCE OF NORTH

C O N F I D E N T I A L SECTION 01 OF 04 PRISTINA 000829

SIPDIS

SIPDIS

DEPT FOR EUR, EUR/SCE, AND S/CRS, NSC FOR BRAUN, USUN FOR
DREW SCHUFLETOWSKI, USOSCE FOR STEVE STEGER, USAID/ENE FOR
RICHORD, USAID/ENE/ECA FOR RSORENSON

E.O. 12958: DECL: 12/17/2017
TAGS: PREL ETRD ECON EAID EAIR ETTC PTER KTFN UNMIK
KV, YI
SUBJECT: KOSOVO'S WATER SYSTEM: INTERDEPENDENCE OF NORTH
AND SOUTH MAKES SABOTAGE UNLIKELY

REF: A. PRISTINA 542

B. PRISTINA 757

C. PRISTINA 810

Classified By: COM TINA KAIDANOW FOR REASONS 1.4 (B) AND (D)


1. (C) SUMMARY: Gazivoda reservoir, located in the northern
Serb-majority municipality of Zubin Potok, is Kosovo's
largest body of water and a vital resource for both Kosovo
Albanian and Kosovo Serb communities. The lake supplies
drinking water to areas of northern Kosovo and essential
cooling water to major industries, including power and nickel
production, through a complex system of dam and canal
networks. Major economic development projects are also
dependent on Gazivoda remaining an accessible and viable
resource. In a worst case scenario, sabotage to these
delivery systems could reduce or completely disrupt the
supply of electricity to all of Kosovo, since Gazivoda is the
sole source of cooling water at present for the Kosovo B
energy plant located just outside of Pristina, but in our
view the interdependence of Kosovo Albanians and Serbs with
regard to this water system makes sabotage a fairly remote
possibility.


2. (C) Summary, cont. Gazivoda provides drinking water for
the northern municipality of Zvecan and for some Albanian
communities south of the Ibar river, about 15% of Kosovo's
population. Drinking water for the greater Pristina area,
about 33% of the population, is supplied from the Batllava
and Badovc reservoirs, located in Albanian-majority areas.
The remaining 52% of Kosovo's population derives potable
water from other independent sources located within Kosovo.
The Kosovo government and relevant international actors,
including KFOR, are aware of the importance of preserving and
protecting Gazivoda and its assets, and are closely
monitoring the situation. In the longer term, the
possibility of decoupling northern Kosovo's water system from
the rest of Kosovo does exist; we and our European partners
will want to ensure that such a decoupling is not used by
Belgrade as a means to impede the development and well-being
of an independent Kosovo. END SUMMARY.

Overview of Gazivoda and the Ibar Canal System


3. (SBU) Gazivoda reservoir, located in the northern
Serb-majority municipality of Zubin Potok, is contained by a
large earthen dam. Untreated water is released from the dam
through two electric turbines capable of generating 32
kilowatts of power, about 5 percent of Kosovo's total energy
production. The turbines handle excess power demand for the
Kosovo Electric Corporation's (KEK) power plants (Kosovo A
and B). Discharge water from the turbines is collected by
the smaller Pridvorica reservoir and dam, located below
Gazivoda. From Pridvorica, water can be released through
four controlled gates into the Ibar canal system or into the
Ibar river itself.


4. (SBU) The main canal is open and approximately 31 miles
long, with 472 miles of underground pipes. The canal
operates by gravity feed, making pumps unnecessary along the
canal itself. Pridvorica dam releases up to 4,000
liters/second into the canal during peak demand periods.
Normal release is 2,000 liters/second. The water travels
from Pridvorica to a pumping station in Lushta village, where
600-700 liters/second is pumped from the canal to the Shipol
water treatment plant, run by the Mitrovica Regional Water
Company based in south Mitrovica. Both the pumping station
and the water treatment plant are located just to the
southwest of Mitrovica city, thus in an Albanian-majority
area. Shipol provides drinking water to both Mitrovica north
and south, the latter including the Albanian area of Stari
Trg; to the northern Serb-majority municipality of Zvecan;
and to the Albanian-majority municipalities of Skenderaj and
Vushtrri. The remaining northern Serb-majority
municipalities of Leposavic and Zubin Potok rely on natural

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water resources independent of Gazivoda. The pump at Lushta
is one of three operative pumping stations along the canal,
and the only one in regular use.


5. (SBU) The Ibar canal continues south to Obilic, supplying
vital cooling water for the Kosovo B power plant at a rate of
800 liters/second. Just before Obilic, the canal splits and
supplies water to a treatment facility for potable
consumption by Drenas village and industrial water for the
Ferronikeli nickel factory at 200 liters/second. The canal
also irrigates approximately 2,470 acres of farmland en
route, using 300 liters/second. Overall, Gazivoda and the
Ibar canal system supply - at most - 15% of Kosovo with
drinking water. The rest of Kosovo obtains water from other
natural sources.


6. (SBU) Physically, the canal is antiquated and leaky. Tim
Westmoreland, Water Sector Head for UMMIK,s Water,
Irrigation and Waste Division, estimates the canal loses
about one third of the water released from Pridvorica en
route to final destinations. Illegal connections to the
system for irrigation, sewage and drinking needs further
exacerbate loss.

Industrial Reliance on Gazivoda


7. (C) Cooling water supplied by Gazivoda to the Ferronikeli
nickel factory and the KEK power plant is essential for the
continued operation of these facilities. Ferronikeli,
located west of Pristina in Gllogovc, has no alternate water
source at this time and would have to cease operations if
Gazivoda were no longer an option. According to local news
reports, the 1,000-employee nickel factory is expected to
substantially increase production to 10-12 thousand tons per
year in 2008, an important future source of revenue for
Kosovo industry.


8. (C) KEK,s Kosovo B power plant receives cooling water
exclusively from the Ibar canal. The Kosovo A plant draws
cooling water from the river Llap, replenished by natural
rainfall and the Batllava reservoir, located about 15 miles
northeast of Pristina, when needed. According to USAID
advisors at KEK, the Kosovo B plant could continue operating
for a maximum of six hours after being cut off from the canal
water supply, and for possibly 12 hours if the plant is run
at minimal load. KEK is currently working to install a water
supply pipe from the Llap river to Kosovo B as a short-term
emergency measure, an effort that could take up to several
months to complete; however, the river is not a suitable
year-round source for both the A and B plants. The Llap
usually runs low during the summer months and is supplemented
by releasing water from Batllava reservoir into the river.
Supplying both power plants long-term could drain the
reservoir too quickly and put Pristina,s drinking water at
risk. If the Kosovo B plant had to be shut down completely,
Kosovo would be forced to import energy from other sources --
assuming supplies were available -- at considerable expense.
(The possible impact of Kosovo A and/or B being taken
completely off-line is detailed in Ref B.)

Gazivoda as a Future Source of Drinking Water


9. (C) Batllava and Badovc reservoirs, the latter located
about 10 miles southeast of Pristina, supply drinking water
to the capital and surrounding areas, but Gazivoda is
considered a back-up water source if rainfall is inadequate
to replenish these reservoirs. The canal system to bring
this alternate water supply to the area is not presently
functional but the severe drought Kosovo experienced last
winter and summer (Ref A) has prompted an extensive clean-up
and repair of the back-up supply system. In the long-term,
this back-up water source has been identified for even larger
projects. The Pristina Regional Water Company (PRWC) is
planning to build another water treatment facility to meet
growing demand from Pristina and surrounding areas. Skender

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Bublaku, Managing Director of PRWC, predicted the new
facility would use 1,000-1,500 liters/second and fulfill
drinking water needs in the Pristina area for the next 25
years. Pristina currently uses 900 liters/second for two
water treatment facilities located near Batllava and Badovc,
reduced from 1,200 liters/second in order to allow the
reservoirs recovery time from the drought. Parts of Pristina
still do not have water 24 hours a day, mainly during the
night, due to this conservation effort. PRWC supplies about
33% of Kosovo's population with potable water.

Future Projects' Dependence on Gazivoda


10. (C) Other future projects dependent on Gazivoda include
the currently inactive Trepca mining complex at both
Mitrovica and Gracanica. Also of critical importance to the
stability of Kosovo,s future energy supply is KEK,s
proposed Kosovo "C" power plant project. Gazivoda is the
only sustainable and viable source of cooling water for these
facilities. Without access to this resource, these projects
will not be possible.

Gazivoda Security


11. (C) Gazivoda dam itself is operated by 43 Kosovo Serb
employees, recruited from Zubin Potok municipality and
directly employed by the Iber Lepenc canal company, a
publicly owned enterprise of the Kosovo Trust Agency.
Abdullah Nishori, Director of Iber Lepenc, told USOP that
relations between management and staff are good but pointed
out that 21 employees at Gazivoda are actually being paid by
the Serbian public utility company, Ibar, and have refused to
sign contracts with Iber Lepenc. The remaining 22 employees
have current contracts but Nishori anticipates they will
choose not to renew in spring 2008, to demonstrate solidarity
with Serbia. All Serb employees are nevertheless likely to
remain on the job, still pulling salaries from the Serbian
utility company, unless instructed otherwise by Belgrade.


12. (C) Iber Lepenc has guards stationed at the turbines and
the Pridvorica dam 24 hours a day. Nishori views the release
gates at Pridvorica dam as potentially vulnerable points,
suggesting that damage to these structures could flood the
surrounding area, including all of Mitrovica. However, the
control of the release gates could be even more critical.
Completely closing the gates would cut off water to all sites
along the Ibar canal. PRWC's Managing Director Bublaku
estimates 300,000 people, Serbs and Albanians, would be
without water in northern Kosovo and areas south of the Ibar
river, and the Ferronikeli factory and the Kosovo B power
plant would eventually be inoperative.


13. (C) Alternately, in a scenario outlined by UNMIK water
expert Westmoreland, water flow from the release gates could
be reduced from the standard 2,000 liters/second to 1,000
liters/second. The Shipol treatment plant could
theoretically continue to pump out the 700 liters/second
required for drinking water but there would be essentially no
water left for Kosovo B at the end of the canal, given rate
of water loss en route and other illegal connections. This
would also adversely affect Ferronikeli.


14. (C) Sabotage to the delivery canal itself is also a
possibility and would be a low-cost, low-effort option to
cause general problems and frustration. Even if not of a
permanent nature, such action could have multiplying effects,
for example, if repairs could not be performed in time to
avoid a complete shut down of the Kosovo B plant. The sheer
length of the canal makes permanently stationed guards
impractical, although the majority of the system runs through
Albanian-populated areas, substantially decreasing the
likelihood of sabotage. KFOR has already mounted regular
patrols around the lake, dam and canal (in close coordination
with UNMIK police) and if indicators warrant, will increase
its activities in the critical areas.

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Potential long-term threat


15. (C) Preserving access to Gazivoda will be critical for
Kosovo,s future development. While in our estimation the
likelihood of short-term sabotage is low given the
interdependence of the system, with water from Gazivoda
treated in Albanian-majority south Mitrovica and then pumped
back into the Serb north, Gazivoda could be used as a tool by
Belgrade in the longer term to cut off reservoir access to
the Albanian majority south of the Ibar river. Violete
Hoxha, Director of the Water Department for the Ministry of
Environment, told us that the Serbian public utility Ibar has
announced plans to build a large water treatment plant in
north Mitrovica to supply northern Kosovo and southern Serbia
from Gazivoda. Though probably many months away, this
development could effectively isolate the rest of Kosovo from
Gazivoda.


16. (C) Our European Commission counterparts noted in a
recent meeting that the current Serbian national investment
plan allocates some 15 million euro for water projects in
northern Kosovo. To counter this threat, acting EC Head of
Office Renzo Daviddi told USOP that the EC is offering
large-scale funding (up to 15 million euro) for a project to
dramatically increase capacity at the Shipol treatment plant
and build a completely new treatment facility in Vushtrri,
south of Mitrovica. Both facilities would increase supply to
northern Kosovo, encourage interdependence, and make the
proposed Serbian treatment plant in north Mitrovica
redundant. Daviddi was uncertain, however, whether Serb
authorities in northern Kosovo would agree to accept such
funding in lieu of the public expenditure from Belgrade,
though he said there had been some initial interest.

COMMENT


17. (C) The interdependent nature of the Kosovo's huge
Gazivoda reservoir and the existing water supply system --
which affects both the Serb and Albanian communities -- makes
it an unlikely target for serious sabotage. More, the system
is too extensive to protect fully, and the few key nodes are
already under patrol by KFOR to deter the potential for
low-level mischief. USOP will stay in close communication
with both local and international contacts monitoring the
situation at Gazivoda and along the Ibar canal. In the
longer term, we, along with our European partners, will want
to make certain this interdependence is strengthened or at
the very least not weakened; otherwise, a vital water
resource with enough potential to help develop all Kosovo,
north and south, could be used as a political tool by
Belgrade to seriously impede the future well-being of an
independent Kosovo.
KAIDANOW