PPP Law Adopted by the Assembly of the Republic of Kosovo

Law On Infrastructure Public-Private-Partnerships And Concessions And The Procedures For Their Award adopted by the Assembly of Kosovo was adopted today by the Assembly.

As part of economic structural reform, the Public-Private Partnerships provide Kosovo an opportunity to modernize and expand its infrastructure and public services and will pave the way to its sustainable economic development by easing fiscal restraints.

Private- Public Partnerships as a modern policy tool will enable the Government of Kosovo reduce the gap between the available public funds and the cost of necessary infrastructure and public services.

Within the prism of the PPP options, there is an endless number of potential of PPP transaction structures such as management contracts, concessions, schemes of build-operation-transfer, etc.

Approval of this law, through infusion of capital and managerial expertise from the private sector, will provide an impetus to the efficiency, making Kosovo more competitive with other countries in the region.

Law on the PPPs is in full accordance with model UNCITRAL and EBRD legislative provisions, as well as EU directives regarding PPPs and concessions. The law is favourable to investors and will create a lenitive framework for the central government as well as municipal authorities in the implementation and expansion of infrastructure and public services.

The law creates two competent bodies within the public administration:

Inter-Ministerial Steering Committee (PPP ISC); and

the Centralized PPP Unit- Partnerships Kosovo.

PPP ISC consisting of 3 ministers and a representative appointed by the Prime Minister, chaired by the Minister of Economy and Finance, is established to control and coordinate PPP Projects in all economic and social sectors.

Approval of this law and the establishment of these two bodies, establish the institutional and legal framework to allow ministries, municipalities and other budgetary organizations to start with the implementation of PPP accros multiple economic sectors.

It should be noted that this law does not apply to privatization or the removal of the right of a public infrastructure or public enterprise, nor to the mines, minerals, underground rights or airspace rights.

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