Kosovo KEK

completed

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the necessary funds and expertise for solving the KEK operational failures (high overstaffing, inadequate management, outdated equipment) and financial problems (due in particular to low collection rates).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.