USAID KOSOVO PRIVATE ENTERPRISE PROGRAM (KPEP) Quarterly Report April - June 2012

The program aims to increase the competitiveness of key sectors in Kosovo, including agriculture, forestry, construction, information communication technology (ICT), tourism, and recycling. KPEP also provides business support services, focuses on the business enabling environment, and develops the workforce. The program has achieved significant results in its fourth year, with a 103.0 million Euro increase in sales, surpassing the life of project target of 50 million Euros. The agriculture sector dominates the increase in sales figure, representing 46.1 percent of the total. In terms of investment growth, the program has also surpassed the life of project target of 20 million Euros, with a cumulative increase of 31.7 million Euros. The agriculture and construction sectors are the largest contributors to this investment figure, with shares of 46.1 percent and 21.5 percent, respectively. The program has also met and surpassed its job creation target, with a current increase of 5,573 full-time equivalent (FTE) jobs, exceeding the life of project target of 5,036 jobs. The agriculture sector dominates the job figures, with a significant increase in employment opportunities. Additionally, the program has seen an increase in exports, with a figure of 28.0 million Euros, with the construction sector having the largest share of the exports figure at 39.5 percent. KPEP has leveraged funding from other donors, including the European Union, the Swiss government, the Norwegian government, and the Government of Kosovo. The program has also received funding from the University of Pristina for activities in the construction sector. The contract modification, which extended the period of performance by three months without increasing funding, had a significant impact on the program's implementation, resulting in decreased activity levels. However, the program's management made a strategic decision to increase spending in Year Three, which led to a significant increase in activities and results. This approach was taken to increase visibility and gain the trust of beneficiaries, the Government of Kosovo, and the donor community. The program's predictions were true, and it has exceeded expectations in terms of performance metrics and its ability to spark the interest of other donors in the community.