Project Description
The project assists the government of Kosovo with possible privatization
of KEK, the country’s publicly owned utility, via private sector
participation (PSP). Phase 1 reviews the feasibility of introducing PSP in
the distribution network and supply functions of KEK. If Phase 1
determines that a PSP is viable from the market perspective and beneficial
for the country, Phase 2 will introduce a transparent tender process to
attract a private investor with the necessary funds and expertise for
solving the KEK operational failures (high overstaffing, inadequate
management, outdated equipment) and financial problems (due in particular
to low collection rates). The objective is successful completion of the
bidding process, with selection of a strategic reputable private operator.
Expected impacts include: 1) mobilization of foreign direct investment; 2)
unlocking of Kosovo's economic potential (an unreliable power supply is
often cited as the country’s single largest barrier to investment); and 3)
improved services for 370,000 KEK customers.