Region: Europe and Central Asia
Sector: Energy and Power
Brief on IFC's PPP advisory support to the government of Kosovo in the privatization of KEDS, the state-owned power distribution company.
The government of Kosovo faced serious problems in its power sector. The lack of a reliable supply of electricity was causing hardship to its population and was a major stumbling block to investment and economic growth. The state-owned distribution company, Kosovo Electricity Distribution and Supply (KEDS), was losing over €20 mil- lion annually through technical losses and low collection rates. It was then that the government of Kosovo turned to IFC to privatize KEDS, which would allow a private investor to modernize its system.
A Turkish consortium, Limak-Çalik, won the tender to purchase 100% of KEDS for €26.3 million in a transparent bidding process. The consortium has also committed to invest $390 million to modernize and operate KEDS. The transaction is expected to significantly reduce power outages and government subsidies. Ensuring better security of supply, this transaction paves the way for new generation capacities to be procured and improved access to power for Kosovo’s entire population of 1.7 million. The agreement was signed in October 2012. Limak-Çalik is expected to take over the company in May 2013.
Updated: June 22, 2022