Following reports in international media about staff reductions in the Millennium Challenge Corporation, former Prime Minister Avdullah Hoti has warned that for Kosovo this will mean a loss of a grant of 200 million dollars. And, the Government has not indicated whether the decision will affect the energy storage battery project.
The Millennium Challenge Corporation (MCC), a US federal agency focused on the economic development of developing countries, is expected to see its staff significantly reduced as part of President Donald Trump’s administration’s plan to reduce government spending.
Kosovo has an agreement with this agency to support the energy battery project to reduce the cost of energy imports. The value of this agreement is 200 million euros.
As reported by US media, MCC employees received an email on Tuesday announcing “significant reductions” in staff and programs – just a week after the Department of Government Efficiency (DOGE) inspected the agency. According to CNN, the employees have been asked to leave as of May 5.
KOHA sent questions to the Ministry of Economy’s e-mail address regarding the impact the decision will have, but has not received a response.
And, former Prime Minister Avdullah Hoti wrote on Facebook about the reports about the MCC, accusing the Kurti Government.
“Kosovo is among the countries that will suffer the most. The rejection of the Washington Agreement of September 4, 2020 made it impossible to build a gas-fired power plant. Now that the MCC is also being closed as part of the reform of the American Administration by President Trump, Kosovo will also lose the amount of $ 220 million for the purchase of energy storage batteries. Along with these, many other related projects that directly affect the well-being of citizens. This is what happens when the breadwinners govern, who, ignoring the Washington Agreement, refused partnership with the US – the state that is primarily responsible for the existence of a free and independent Kosovo. They also refused to suspend import tariffs on American products. This government is working against our strategic interests,” wrote Hoti, who is an LDK MP.
In April 2024, MCC and the Government of Kosovo launched a project, under the Kompant program, to improve the energy situation in Kosovo. Of these, $202 million was from the United States. The aim was for Kosovo to have batteries for storing electricity.
In January of this year, a conference was organized on prequalification procedures for the design and construction of large-scale systems for storing electrical energy through these batteries.
The Minister of Economy, Artane Rizvanolli, said that the use of the battery system, which is planned to be installed in Ferizaj and Istog, will also help the Kosovo economy.
The MCC was established by the U.S. Congress in 2004 under the administration of President George W. Bush. It has served as an agency independent of the State Department. It currently has $5.4 billion in active grants in 20 countries with modest budgets.