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The Government is prepared to enter 2.3 billion euro debt

Isa Mustafaa

The government of Kosovo within three years will take 2.3 billion euro debt. With the money provided for the realisation of 39 projects, mainly infrastructure.

Construction of the new highway Pristina-Gnjilane and rehabilitation of the railway line from the Serbian border to Prizren are two of the most costly projects to be financed with loans, writes Gazeta word.

 So decided the National Investment Council, which anticipated in the Medium Term Expenditure Framework 2017-2019.

“After reviewing proposals from relevant ministries, KKI (National Investment Council) in December 2015 approved list that includes 39 infrastructure projects, the total cost of which exceeds the amount of 2.3 billion euros,” said the newspaper possesses Word document.

Minister of Finance, Avdullah Hoti, has already announced that they agreed with the International Monetary Fund for about 450 million euros of investments that must occur through the investment clause.

“… Through loans from development banks and these are some of the significant projects in infrastructure. The railways have already finalized the agreement, the railway from Hani i Elezit to North Lesac, which is a project, which will cost 195 million euros, of which 80 million have credit. We have signed an agreement of another EUR 29 million for some regional roads in Kosovo. Are negotiated two major projects in the irrigation system, “Hoti said in interview for word.

He estimates that these will affect the projects in economic development despite not generate direct return on investment.

“It is complex projects that impact directly on economic development because they create jobs. Irrigation projects could double agricultural production in the country “, says Hoti arguing nevojnë for investment in these areas.

Currently, Kosovo has around 800 million euro public debt, which is krijuyar loans that Government has taken various projects.

Increasing the level of this debt, the head of finance of Kosovo does not see risk due to agreement with the IMF that could enter into obligations similar financial up to 10 percent of the gross domestic 2 percent as limit has been so far.

“Now we have changed the law on public finances with the International Monetary Fund, now we created additional space for investment through what we call clause. Which will enable us as a government to Hym in debt 10% in the bank to invest development capital projects only. ”

List of projects

From the total list of priority projects already eight projects are in the final stages of negotiation with funders and some have already been signed.

For the rehabilitation of the railway 10, Construction and modernization of the railway line Prishtina – Kosovo Polje – Airport of Prishtina “Adem Jashari”, and General rehabilitation of the railway line east and south (border with Serbia – Podujevë – Kosovo Polje, Kline – Prizren) already finalized funding arrangements.

Meanwhile, negotiations are expansion of the irrigation system of the Company “Radoniq” – Phase II WISDOM and rehabilitation of the Iber-Lepenc.

Rehabilitation of regional roads, construction of the N9 road Pristina – Peja (SEETO Route 6 A) portion of -Klinë Kijevë to Zahaq, is in the final stage.

Meanwhile, in 2017 the project will start construction of the new highway Pristina-Gnjilane – Bela Zemlja.

However, the list of projects is not yet complete.

“Depending on the progress that ministries make preparation of new projects, they will be reviewed by the National Council for Investment and potentially be included in the priority list, including projects in the social sector,” reads the document. /Gazeta Fjala /

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