Investments through Public-Private Partnerships (PPPs) in Kosovo and the way forward

05/07/2024

Today, GAP Institute published the analysis "Investments through Public-Private Partnerships (PPPs) in Kosovo and the way forward".

A Public-Private Partnership (PPP) is a contractual agreement between the public and private sectors to provide a public service. In Kosovo, there are currently only five active PPP projects (three in the operational phase), the planned investment value of which is a total of 133 million euros. This amount, if analyzed as a percentage of the Gross Domestic Product (GDP), is about 1.37%, which is much lower compared to the countries of the region. Of the active projects, Pristina International Airport Adem Jashari is the largest project, with a value of over 100 million euros in planned investments, and over 143 million euros in revenue up to 2023 for the state of Kosovo from the concession fee of this project.

Currently, in the Department for PPP within the Ministry of Finance, Labor and Transfers, there are 23 active requests to start public-private partnerships, where the majority are from municipalities. From a legal point of view, PPPs in Kosovo are regulated by the Law on Public-Private Partnerships approved in 2011. However, a new draft law on PPPs was finalized in 2019, but has not yet been sent to the Assembly of Kosovo. This draft law aims to ease the bureaucratic procedures for PPPs as well as to harmonize the legislation with that of the EU.

In Kosovo, the number of PPP projects is small, but there is a potential in certain sectors for the development of such partnerships. In the mining sector, investments would help in the research, development and exploitation of mineral resources, while in the renewable energy sector, they would contribute in the diversification of energy sources, thus improving security of supply and reducing dependence on traditional sources of production such as coal.

GAP Institute recommends the review and approval of the new draft law on PPPs in the Assembly, the identification of the countrys strategic assets that have potential for investment through PPPs, the orientation of PPPs towards renewable sources for energy production, etc. But, simultaneously with these, it would be necessary to strengthen the supervisory mechanisms of PPPs and increase transparency, in order to achieve the intended impact.

Click here to read the full analysis.