Kosovo's Interior minister Xhelal Svecla has said that police had arrested eight people after an explosion hit a canal that sends water to its two main power plants, an incident Pristina labelled a "terrorist act" by neighbouring Serbia.
Serbia's President Aleksandar Vucic denied what he said were "baseless accusations" about Belgrade's involvement in the incident, which occurred around 7pm local time. (6pm Irish time) yesterday.
"Somehow we managed to fix the damage, arrest the suspects and confiscate a huge arsenal of weapons," Mr Svecla said during alive-streamed press conference.
Police commander Gazmend Hoxha said those arrested "are suspected of inciting, organising and even executing these recent terrorist acts and in particular the one in the canal of Iber Lepenc."
Mr Hoxha said an initial investigation had shown that between15 and 20 kilos of explosives were used in the attack.
Police raided 10 locations, confiscating more than 200 military uniforms, six shoulder-fired rocket launchers, long weapons, pistols and ammunition, he added.
Police said most of the people arrested belong to local Serb organisation Civilna Zastita (Civil Protection), which the government in Kosovo has declared as a terrorist organisation.
Reuters was unable to contact the group.
The explosion has increased tensions between the two Balkan countries. Ethnic Albanian-majority Kosovo declared independence from Serbia in 2008 almost a decade after a guerrilla uprising against its rule, but Serbia has not recognised Kosovo as an independent state.
Relations remain especially frayed in the north of the country where the blast occurred, and where the Serb minority refuses to recognise Kosovo's statehood and still sees Belgrade as their capital.
Kosovo's Security Council, which held emergency talks early today, said it had activated armed forces to prevent similar attacks.
Security was already heightened after two recent attacks where hand grenades were hurled at a police station and municipality building in northern Kosovo where ethnic Serbians live.
"The Security Council has approved additional measures to strengthen security around critical facilities and services such as bridges, transformer stations, antennas, lakes, canals," the council said in a statement.
NATO, which has maintained a peacekeeping force in Kosovo since 1999, condemned the attack in a statement. Its personnel have provided security to the canal and the surrounding area since the blast, it said.
A Reuters reporter visited the site, where silt had poured through a hole in the canal's concrete wall. Workers had installed a series of large tubes to bypass the leak.
Power supplies appeared to be largely intact, but drinking water supply was disrupted to some areas.
Energy minister Artane Rizvanolli said Kosovo was coordinating with Albania's power company to provide more electricity. She said water will be trucked to affected areas.
