Kosovo capital losses due to lingering institution creation

Some of the projects that have been under way are the construction of the “New Kosovo <x4x1>, then re-ilitation of the Nation “Trepca”, as well as the project of the tourist zone “Brezovica”.

The most pronounced problems have been demonstrated at the “Trepca” plant, as the Supervisory Board of this company, which has yet to begin with the process of carrying the complex from the Kosovo Privatisation Agency to the Government of Kosovo, has not been selected.

Subtitles: Ahmet Tmava, tells Radio Free Europe, that the non-election of the Supervisive and Managing Board by the Government of Kosovo is hindering implementation of the Trepca Law, which was adopted late last year.

“From the moment of approval of the Law for Trepca, that law produces obligations for implementation. So we're dealing with a long period that hasn't been implemented. So, development outlook” is projected, Tmawa says.

Due to Kosovo's non-compliance of the Assembly, a review of the budget has brought difficulties even in carrying out budgetary obligations.

Former Minister of Finance, currently deputy in the Kosovo Assembly, Avdullah Hoti, has said that “is 112m euros short of the state budget”.

One of the projects for which obligations have remained unfinished due to lack of budgetary means is reportedly the Pristina-Skopje highway project.

Ela Ruci, spokeswoman for the Turkish-American consortium “Bechtel Enka”, the consortium that is conducting the work on the highway, has not specified how much the government owes, but has said “work on the highway has been adopted with the terms of Kosovo budget”.

The moment the Government was unable to pay what was previously envisioned in the contract, we have changed the work plan and operations on the ground. And we adapted them to the government's budgetary capacity”, Ruci said.

On the other hand, experts on economic issues in Kosovo say the consequences will be great because of not realising projects that have been under way.

Former head of the Kosovo Economic Ode, Ismail Kastrati for Radio Free Europe, says any delay in the creation of the new government creates disorder in the short- and medium-term plan in economic development.

The” specifically projects that are in the phase of implementation or the start phase, such as Thermocentral, railway, problem of the Trepca plant. These create turmoil in the economy, namely infrastructure, which is directly related to the possibility of developing the economy, with the possibility of attracting investments from outside”, Kastrati says.

In addition to these projects, due to the lack of financial means that have had to be provided by the Government of Kosovo, the flow of all trains on the Pristina-Peje line and Elez's Hani Fushë Kosovo has been interrupted.

Because of the failure to establish institutions, Kosovo has also lost a 16m-euro loan from the International Monetary Fund, envisioned for development projects in the economic sector. Meanwhile, from the European Union, Kosovo risks losing 50m euros.