Investor Presentaiton
Opportunities to Foreign Investment in Kosovo
and regulatory framework which investors in the energy sector and other sectors will find
conducive to doing business in Kosovo. According to KEDS project implementation unit,
KEK Electricity Distribution and Supply is an inefficient and costly operation. The
Government of Kosovo is not able to deliver the level of expertise, investment and
technical operating skills necessary for a world class operation. These inefficiencies,
coupled with collection deficiencies, theft, and outdated infrastructure, create an
enormous financial drain on the Consolidated Budget of Kosovo.
Government subsidies to KEK are not sustainable. The drain on the Government's budget
negatively impacts the Government's ability to address critical needs elsewhere.
Private sector investment in KEDS will improve infrastructure, operating efficiency,
collections, energy security, reliability and sustainability all critical to Kosovo's
economic future, and an improved quality of life for all citizens.
-
So far, four companies are pre-qualified in the process of privatization of KEDS:
"Limak", "Çalik”, “TAIB”, and “Ellsewedy".
Because of old equipment, poor management, low tariffs and high technical and
commercial losses, KEK received about €1.1 billion in subsidies during 2000-2009 (an
amount equal to total expenditure of the 2010 budget), of which about €0.5 billion came
from the Kosovo budget and €0.6 billion came from donors.
Privatization of distribution and supply network of KEK with strategic investor, for
improvement of management, increase of billing, reduce of technical losses and
enhancement of supply and quality of services, for private clients and for businesses.
Privatization of distribution and supply will enable increase of revenue collection to
100% and will enable reduce of losses as well as improve managment of energy
demands. The fiscal burden of the energy sector on the Kosovo budget has been running
at over €70 million in subsidies per year over the last four years, or 11 percent of the
budget on average. The main causes for KEK's negative fiscal impact are technical and
commercial losses; power imports requiring a subsidy of about €50 million in 2009, a
subsidy that will increase in the future as equipment ages and demand and power import
prices increase again; and urgently needed investments and maintenance in generation
48View entire presentation