Kosovo | Growth and Fiscal Stability Initiative Quarterly Report

The report notes that the first municipal Public-Private Partnership (PPP) has been concluded, with the Peja Urban Bus project reaching financial close and awaiting formal approval by the PPP-Inter Ministerial Committee. This milestone marks the first PPP to close following the launch of several PPP initiatives in the first 18 months of the project. The report also mentions the completion of the second wave of PEFA municipal assessments, with a presentation ceremony planned for April. The assessments identified gaps and areas for reform, and work is underway on Action Planning to address these issues. A comprehensive outreach to municipalities with 'Qualified' audit reports was conducted during the quarter, with up to 20 municipalities expected to receive Unqualified Audits for the 2011 financial year. The Strategic Expenditure Review (SER) report was finalized and submitted to the Minister, with feedback indicating that the Minister is pleased with the recommendations. The Budget Director is working with GFSI advisors to incorporate the recommendations into the department structure and MTEF framework. The IMF concluded a successful mission to evaluate the outcome of the Staff Monitoring Program, with the Mission Team praising the Ministry of Finance's progress and recommending that Kosovo return to the Stand-by Arrangement (SBA) facility. The Route 6 motorway project is progressing well, with the RFP for Transaction Advisor waiting formal approval and the 'go' decision of the government. Key staff have been identified for the Project Implementation Unit, and work has begun on finalizing the feasibility study. The Brezovica transaction is also making progress, with good progress being made in identifying a clear memorandum from the municipality on their vision and contribution to the development of the Sharr Mountain. The report also highlights the development of a full suite of PPP guidelines and training material, which will aid transparency in PPP project development and implementation. Budget reforms identified in the SER report will lead to more transparency in the budget process, with greater accountability for results achieved from the allocation and use of public funds. PEFA self-assessment and Action plans will increase transparency and accountability in the use of public money. In terms of administration, the report notes that the legal advisor, Bill Klawonn, departed the project at the end of the quarter after a decade of service in Kosovo. The Public-Private-Partnership component team continued to make progress against the work plan, with GFSI advisors working on multiple fronts to strengthen the legal, institutional, and policy framework for PPPs. The team completed the Draft PPP Guidelines, which will be used by the MoF PPP Department, line ministries, municipalities, and private sector investors. The Guidelines include four sections that cover a PPP from project identification and feasibility studies to project management. The GFSI Team is also finalizing the development of formal curriculum and training modules based on the PPP Guidelines Manual, which are near completion. The team provided support to several municipalities and ministries in developing their PPP projects, including the Peja Urban Bus Project, Pristina International Airport, Pristina Public Underground Parking Projects, and Suhareka Waste Collection and Sorting Project.