EBRD adopts strategy for Kosovo, focusing on infrastructure and energy

By bne IntelliNews May 10, 2013

The EBRD said it has adopted its first full strategy for Kosovo, pledging support to the country's private sector, energy and mining projects and infrastructure. Kosovo became an EBRD member at the end of 2012.

The three-year strategy starts by acknowledging the key growth-hindering aspects of Kosovo's economy and the institutional set-up and then outlines the activities the bank plans to carry out, aiming to promote the country's sustainable economic development.

  • Private sector assistance

Though Kosovo is largely committed to applying free-market principles, its private sector is still relatively small. Unfavourable business environment, lack of investment and management shortcomings hinder the sector's progress. Accordingly, the EBRD plans to increase its support for the privatisation of state-owned enterprises, provide financing to existing private companies and assist financially the small and medium-sized companies, with focus on the processing industry, services, trade and the agribusiness. The bank's general goal is to increase Kosovo's competitiveness.

  • Infrastructure improvement

Kosovo suffers from underdeveloped infrastructure, which limits commerce and manufacturing in the country. The transportation network is relatively small and water supply outages are frequent. The EBRD plans to promote bigger involvement of the private sector in infrastructure projects, thus decentralising the municipal management of relevant services. The bank pledges to provide loan financing for the expansion and upgrade of roads, motorways and the railways network. It says it will support the commercialisation of water supply and wastewater utilities.

  • Sustainable energy and mining sectors

At the moment Kosovo's energy sector is highly inefficient. Electricity production in the country is characterised by huge technical and commercial losses, while at the same time much of the electricity is used by households for heating purposes. In addition, almost all of it is generated by two highly polluting lignite-fired power plants. On top of that, power outages occur regularly. The EBRD will help ensure security of energy supply by engaging in the rehabilitation of the Kosova e Re (Kosovo C) project. The bank will also assist renewable energy projects through loan financing. Technical and financial help to Kosovo's transmission company, KOSTT, is also part of the EBRD's strategy.

Moreover, the EBRD will support the restructuring of the mining sector by assisting the country's privatisation agency in the marketing of state-owned mining enterprises.

The Bank's priorities in the energy sector will comply with its Environmental and Social Policy (ESP). Thus, they are to be in line with the EU environmental legislation, which is in the process of adoption by Kosovo.

Related Articles

Hungarian PM's "proxy" moves into the nuclear industry as Paks tenders approach

Firms controlled by Hungarian oligarch Lorinc Meszaros have purchased a 51% stake in the Hungarian subsidiary of Czech nuclear ... more

CEZ set to place Czech nuclear assets in new unit

Czech state-controlled energy group CEZ is set to place all nuclear-related activities into a new division, local media reported on May 17. The move raises speculation that the company is ... more

TAP suspends work on Albania pipeline after uncovering ancient settlement

Trans Adriatic Pipeline (TAP) AG company, which is in charge of the construction of the TAP gas project, has temporarily suspended works on the pipeline near the Turan village in Korca in the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss