Describes how major projects are secured and financed. Explains activities of the multilateral development banks in and other aid-funded projects.
Selling to the Government
Kosovo is not a WTO member and thus not a signatory of the Government Procurement Agreement. Similarly, Kosovo is not a party to a Free-Trade Agreement (FTA) with the United States, and, accordingly, is not bound by any U.S. FTA commitments on government procurement. The procurement process in Kosovo is based on the tendering procedures outlined in the Public Procurement Law, which apply to all procurement-related actions involving funds from the Kosovo consolidated budget. The law provides guarantees for equal treatment and non-discrimination, transparency, fair competition, and accountability. Foreign companies bid on an equal basis with local firms. Despite an absence of local-content requirements, the amended Public Procurement Law gives preference to local bidders when the quality and price are comparable to that of foreign bidders. Nevertheless, vendors routinely complain about irregular conduct in public tenders at the national and municipal levels and have generally found the official appeals system inadequate to redress grievances. The Public Procurement Regulatory Commission (PPRC) oversees and supervises all public procurement and ensures that the Law on Public Procurement is fully implemented. As of March 2022, an e-procurement platform is fully operational; all procurements are handled through it, which has greatly enhanced transparency. The PPRC publishes contract award information on its website.
Financing of Projects
Like many governments, Kosovo finances some public works projects through borrowing from Multilateral Development Banks.
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks (PDF). The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
U.S. International Development Finance Corporation (DFC)
The U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
U.S. International Development Finance Corporation
1100 New York Avenue, NW
Washington, DC 20527
Tel: +1 (202) 336-8400
U.S. Trade and Development Agency (USTDA)
USTDA is a U.S. Government agency that advances economic development and U.S. commercial interests in developing and middle-income countries. The Agency funds various forms of technical assistance, early investment analysis, training programs, orientation visits, and business workshops that support the development of modern infrastructure and a fair and open trading environment. Contracts funded by USTDA grants must be awarded to U.S. companies. USTDA has been active in Kosovo’s telecommunications and information technology sectors.
United States Trade and Development Agency
1000 Wilson Blvd., Suite 1600
Arlington, VA 22209
Export-Import Bank of the United States (EXIM):
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. EXIM is an independent Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services. When private sector lenders are unable or unwilling to provide financing, EXIM fills in the gap for American businesses by equipping them with the financing tools necessary to compete for global sales. In doing so, the agency levels the playing field for U.S. goods and services going up against foreign competition in overseas markets, so that American companies can create more well-paying American jobs. Because it is backed by the full faith and credit of the United States, EXIM assumes credit and country risks that the private sector is unable or unwilling to accept. The agency’s charter requires that all transactions it authorizes demonstrate a reasonable assurance of repayment; EXIM consistently maintains a low default rate and closely monitors credit and other risks in its portfolio.
811 Vermont Avenue, NW
Washington, DC 20571
The World Bank serves as a vital source of financial and technical assistance to developing countries around the world.
Mr. Massimiliano Paolucci is Country Manager for Kosovo and for North Macedonia.
Telephone: +383 38 224 454
European Investment Bank (EIB)
The EIB is the European Union’s bank. It is owned by and represents the interests of European Union Member States. It works closely with other EU institutions to implement EU policy. In June 2013, the EIB signed a Framework Agreement with Kosovo, allowing it to finance priority projects, particularly in the areas of the environment, transport, telecommunications, and energy infrastructure. EIB’s involvement facilitates the co-financing of projects with other donors and supports the implementation of the Western Balkans Investment Framework (WBIF) and the Western Balkans Enterprise Development and Innovation Facility. Kosovo has identified eight priority projects for potential EIB support, six of which are in the infrastructure sector, including the rehabilitation and modernization of railways.
European Investment Bank
98-100, boulevard Konrad Adenauer
Council of Europe Development Bank (CEB)
The CEB is a multilateral development bank with a social vocation. Established in 1956 to bring solutions to the problems of refugees, its scope of action has progressively widened to other sectors of action directly contributing to strengthening social cohesion in Europe.
Kosovo’s Representative to the CEB Governing Board:
Lulzim Hiseni, Consul General of Kosovo, Strasbourg
Kosovo’s Representative to the Administrative Council of the CEB:
Dije Rizvanolli, Acting Head of Division for International Financial Cooperation, Ministry of Finance, Pristina
European Bank for Reconstruction and Development (EBRD)
The EBRD is an international financial institution that supports projects in 30 countries from central Europe to central Asia. Investing primarily in private sector clients whose needs cannot be fully met by the market, the EBRD promotes entrepreneurship and fosters transition towards open and democratic market economies.
European Bank for Reconstruction and Development
Pristina-Fushe Kosove Main Road
PO Box 122
Tel: +383 (0)38 242 07000 Fax: +383 (0)38 242 07071