Kosovo | Growth and Fiscal Stability Initiative Quarterly Report

The report highlights the progress made by the initiative in achieving its objectives, which include supporting private sector participation through Public-Private-Partnerships (PPPs) and strengthening the ability and capacity of central and local institutions to identify, develop, and implement PPP projects. The report notes that the elections held in December 2010 influenced the political agenda throughout the first quarter of 2011, resulting in a delay in forming a new government. However, this delay had a minor impact on some project deliverables. The GFSI team continued to work on finalizing PEFA Reports for five municipalities, with 28 out of 31 indicators scored as of the end of the quarter. The report also highlights the submission of financial statements by all municipalities, including those in the north of Kosovo, as an outstanding outcome. This achievement is attributed to the GFSI project's commitment to full participation of minorities. The team also worked on revising legislation impacting on PPP to strengthen clarity and transparency. In terms of PPP, the report notes that the Pristina International Airport (PIA) has formally closed, securing debt and equity investment of Euro 106 million. The PPP Unit, with the support of the GFSI PPP Team, has 23 PPP projects in the pipeline, including four solid waste landfill projects expected to be awarded to one international private entity within the next six months. The report also highlights the progress made in strengthening the legal, institutional, and policy framework for PPP. The GFSI advisors have been drafting priority implementing regulations and secondary legislation for the PPP law, aiming to create greater procedural and legislative clarity for PPP. The team has also undertaken a legal "due diligence" of all laws that could affect the implementation and operation of a PPP, identifying potential problems and developing a strategy for rectifying the laws. The report concludes that the GFSI initiative has made significant progress in achieving its objectives, particularly in supporting private sector participation through PPPs and strengthening the ability and capacity of central and local institutions to identify, develop, and implement PPP projects. The initiative continues to work on revising legislation impacting on PPP and strengthening clarity and transparency. The report also notes that the GFSI team has been working on revising the PPP Law to make it consistent with EU policy. The team has also prepared one directive on Procedures for the Submission and Processing of PPP Project Proposals and one rule on Procedures of the Public-Private-Partnership inter-ministerial Steering Committee (PPP-ISC). Both documents are expected to be approved by the PPP-ISC early in the next quarter. The report highlights the importance of addressing cross-cutting themes, including youth integration, gender equality, full participation of minorities, and protection of Kosovo's environment. The GFSI initiative has taken these themes into account during the work planning phase and addresses them where possible in day-to-day activities and program design. Overall, the report provides an update on the progress made by the Kosovo | Growth and Fiscal Stability Initiative in achieving its objectives and highlights the challenges and opportunities faced by the initiative in supporting private sector participation through PPPs and strengthening the ability and capacity of central and local institutions to identify, develop, and implement PPP projects.