Region: Europe and Central Asia
Topic: Legal Framework
This publication has been prepared as part of European PPP Expertise Centre’s work on “PPP Units and Related Institutional Frameworks” and contributes to the Western Balkans Investment Framework’s initiative on “PPP Institutional Strengthening in the Western Balkans”. It responds to the need to understand the institutional structures that support PPPs in the countries of the Western Balkans.
The history of PPPs in Kosovo is relatively recent. The first law to regulate private finance in public infrastructure was the Law on the Procedure for the Award of Concessions that came into force in October 2005. This law was mainly used by municipalities to implement concession projects that focused primarily on real estate and land concessions.
Given Kosovo’s need for substantial public infrastructure investment across various economic sectors to provide efficient and quality public services, the Government of Kosovo has sought to promote the development of PPPs. Government support for the implementation of PPP projects was evidenced through the PPP Policy Directive approved in July 2008.1 The Directive also required public authorities to implement PPP projects only through competitive, fair and transparent procedures.
This political support also prompted the Ministry of Finance to engage in the preparation of a new PPP law which was prepared in compliance with UNCITRAL2, EBRD guidelines as well as EU Directives and international best practice. This law was prepared with technical assistance provided by United States Agency for International Development (USAID). As a result, the Law on PPP and Concessions in Infrastructure and Procedures for their Award was voted and came into effect in August 2009 (No.03/L-090). The first PPP project to be implemented in accordance with this law was the design-build-finance- operate-transfer contract of the Pristina International Airport. This project is now in its operating phase.
The Government of Kosovo’s effort to further harmonise the country’s legislative framework with the European Union’s policies on public procurement prompted revisions of the PPP law in 2011. In December 2011, the Law on Public Private Partnership (No. 04/L-045) was voted and came into effect.
Updated: June 22, 2022