1. Why is privatization necessary?
KEK Distribution and Supply is a costly and inefficient operation. Such inefficiencies, also related to poor collection, electricity theft, and obsolete infrastructure, create a large financial burden on the Kosovo Consolidated Budget.

Government subsidies for the energy sector are being reduced and are no longer sustainable. The burden on the Kosovo Budget has a negative impact.

Private sector investments in KEK Distribution and Supply will improve the infrastructure, enhance operational efficiency, collection rates, and ensure security of power supply. This is important not only for the sector under privatization, but also has a direct effect in Kosovo’s whole economic development.

2. What is currently not right?
Power cuts, weak infrastructure, inefficient operation, unsatisfactory collection rate, theft, commercial losses.

Private sector investments will ensure greater reliability, enhance infrastructure, create efficient operation systems and practices, improve collection rates with new infrastructure and improved billing, reduce commercial losses and eliminate government subsidies.

3. Will electricity prices increase?
The independent Energy Regulatory Office is competent to regulate cost-reflective tariffs of energy in line with the cost and investments. The market changes, as do tariff rates. However, KEK Distribution and Supply Privatization will have no impact in the tariff increase.

4. What will happen if I don’t pay my electricity bills?
Nonpayment will result with disconnection of services.

5. Will there be significant changes in the number of employees?
No. All employees of the Distribution and Supply sectors will be transferred to the privatized sector.

6. What will happen with the debts of consumers against KEK?
Debts will remain debts, will not be written off, and will have to be paid.

7. How many companies expressed interest to privatize distribution?Four companies have fulfilled the prequalification requirements for the distribution privatization process. They were Elsewedy Electric from Egypt, and Calik, Limak and Taib Bank from Turkey.

8. What was the sales’ price of Distribution?
Highest financial offer was received by the Calik and Limak consortium, with a value of €26.3 m.

9. Was is sold cheap?
We firstly have to mention that the price is objective and realistic, compared to the risks assumed by the privatized sector. We have to consider that the sector under privatization is operating on a loss, rather than a profit. Losses reach up to 39 percent. Hence, if 1 euro is invested, 39 cents will be lost for the investor, indicating considerable risks. In addition, we have to also consider issues such as the north of Kosovo, as its network continues to register losses. In addition, compared to regional countries, Kosovo government provides no guarantees for the investor for losses and risks which may occur; hence, we believe that €26.3 million is realistic and objective.


1. May Kosovo municipalities establish publicly-owned enterprises?Yes, after the adoption of Law No. 04/L-111 on amendment and supplementation of Law No. 03/L-087 on Publicly-Owned Enterprises, municipalities are entitled to establish local publicly-owned enterprises, in accordance with the criteria set in the sublegal act issued by the Government. The set criteria include reasonable requests for operational and financial sustainability.

2. How are members of the Boards of Directors of publicly-owned enterprises selected?Selection of the members of Boards of Directors is conducted in a transparent and public manner, through an open announcement and in compliance with Article 15 of the Law on Publicly-Owned Enterprises No. 03/L-087.

3. Who appoints members of the Boards of Directors of publicly-owned enterprises?In central publicly-owned enterprises, appointments are made by a special decision of the Government of Kosovo; whereas, in local publicly-owned enterprises, their appointment is made by the Shareholder’s Committee.

4. How many members do the Boards of Directors of publicly-owned enterprises have?Boards of Directors of central publicly-owned enterprises may have 5 or 7 members, while those of local publicly-owned enterprises have 5 members.

5. How are members of the Boards of Directors remunerated for their work?Directors will be remunerated a basic per diem. The basic per diem for POE directors will be determined:
(i) by means of a written decision of the Government of Kosovo for central POEs, and
(ii) by a decision of the respective Committee(s) of municipal shareholders for local POEs. The basic per diem for directors of local POEs shall not exceed the compensation set by the Government for directors of central POEs.

6. Who supervises the work of the Boards of Directors of central publicly-owned enterprises?Shareholder(s) of a POE exercise continuous and rigorous supervision over the activities of POE Boards of Directors and Audit Committees, through the Publicly-Owned Enterprises Policy and Monitoring Unit.

7. Is the efficiency of the Boards of Directors of publicly-owned enterprises evaluated?The POE Policy and Monitoring Unit evaluates the efficiency of directors of each POE on annual basis. All POE officials and directors ensure full cooperation with the POE Policy and Monitoring Unit in conducting any such evaluation.

8. What are the main responsibilities of the Boards of Directors of publicly-owned enterprises?The main responsibility of the Board of Directors is monitoring the implementation of the business plan, which is adopted by the Board itself.

9. Can the Government or Ministry elect or dismiss the executive-managing director of a publicly-owned enterprise?No. The election and dismissal of the senior officials in publicly-owned enterprises, including the managing director, is conducted by the Board of Directors of the respective enterprise.

10. Who is considered to be part of the senior management of publicly-owned enterprises, which operates under the responsibility of the Board of Directors and Audit Committee?Senior management of publicly-owned enterprises includes the Chief Executive Officer, Chief Financial Officer, POE Secretary and Internal Auditor.

11. Who establishes the Publicly-Owned Enterprises Policy and Monitoring Unit and where does this unit function?The POE Policy and Monitoring Unit (POE Unit) will be established from the Minister, under the auspices of the Ministry of Economic Development, with the aim of supporting the Minister and Government in discharging their responsibilities in relation to the POEs, as entitled by law.

12. How will the work of Boards of Directors be rigorously supervised?Obligations pertaining to supervision, as established by this Article, shall not be exercised in any manner that intervenes, or aims to intervene with the activities or independence of the given POE’s Board of Directors or Audit Committee.

13. Do Publicly-Owned Enterprises report about their work and who do they report to?Publicly-Owned Enterprises report through their Boards of Directors to the POE Policy and Monitoring Unit, within 60 days after the elapse of each quarter and within 75 days upon the elapse of each calendar year.

14. Do Publicly-Owned Enterprises report to the public-shareholders?The Government is accountable to the Assembly regarding the manner in which it, the Ministry and POE Policy and Monitoring Unit exercise their competencies and responsibilities granted through the respective law. The Government reports on annual basis on the performance of all respective authorizations and responsibilities, as well as on the accomplishment of objectives determined in the ownership policies, determined in Article 6.1 of this law. The Government will provide the public and Assembly with quantitative and reliable data on the manner in which the management of central POE’s served the interest of the Republic of Kosovo.

15. Can shares of publicly-owned enterprises be sold – privatized?Shares of a central POE can be sold freely, if the Government adopts a written decision which authorizes a Government Privatization Committee to proceed with the tendering and sale of shares, subject to the decision adopted by a simple majority of votes of the Assembly of Kosovo. Upon the adoption of this decision by the Government and its endorsement by the Assembly, the Government Privatization Committee is authorized to conduct a tendering procedure and sell the shares at stake.

16. Can a concession be granted over a publicly-owned enterprise?Yes. Publicly-owned enterprises can be granted through a concession, but the procedure has to be initiated through a Government Decision, monitored by an inter-ministerial committee and conducted in conformity with the Law on PPPs and Law on Public Procurement.



What are the total estimated coal (lignite) reserves in all of Kosovo?
According to the study on “Assessing and exploring geological coal reserves in Kosovo”, implemented by “Inkos” Institute in 2007, lignite coal reserves are:
Reserves in (t):
Balanced…… 10,892,888,000
Non-balanced…   1,319,000,000
Total…             12,442,461,000

Where are the locations of coal reserves in Kosovo?
Most significant coal basins are:
– Kosovo Basin (located in the central part of the Republic of Kosovo) ;
-Dukagjini Basin (located almost on the center of the Dukagjini Plain); and
– Drenica Basin (located between the Kosovo Basin and the Dukagjini Basin in the west).

What is the most important energy resource in Kosovo?
Coal is the most significant energy resource of Kosovo, supplying around 97% of the total energy generation in the country.

What zones are declared as zones of special interest?
According to the Decision No. 03/9 dated 27.02.2008 of the Government of Kosovo, initially, nine zones of special interest were declared (Decision No. 1071 dated 02.07.2008), whereas the Decision No. 125 of 26.01.2009 extended the number of zones two new zones were included, comprising a total of 11 zones of special interest, which are listed below:
1. Geological exploration zone – location Karaqë;
2. Geological exploration zone – location  Vllahi-Zjaçë;
3. Geological exploration zone – location Bushinc-Bolevc;
4. Geological exploration zone – location Zhegovc;
5. Explored geophysical and geochemical area –Bresalc;
6.Geological exploration zone –Golesh;
7. Nickel Exploration Zone – Baks;
8. Iron – Nickel Exploration – Tërstenik;
9. Geological exploration zone  -Debellde;
10.Geological exploration zone – location Gumnishtë;
11.Geological exploration zone – location Deva;
For Renewable Sources

What types of RES are available for Kosovo?
Republic of Kosovo has a significant potential of RES, including: hydro energy, wind energy, solar energy, biomass, thermal energy, etc.

Are there any studies on hydro potentials in Kosovo, and what is the energy generation capacity from hydro resources, through small hydropower plants?
Studies /feasibility projects:
Hydropower potential for HPPs was assessed in studies in 2006, 2009, and 2010. Total estimated capacity from smaller hydropower plants is 128MW

Is there any Action Plan on Renewable Energy Sources (APRES), and what the RES target in total energy consumption is?
Kosovo has a Draft Action Plan on Renewable Energy Sources (APRES), submitted to the Energy Community Treaty in Vienna. This plan is expected to be finalized by end 2012.
This plan will also include RES targets – which are expected to be fulfilled by 2020.

For Energy Efficiency

Does Kosovo have an Energy Efficiency plan and what is its target?
Kosovo has an Energy Efficiency Action Plan for the period 2010 -2018, with a target of 9%

Which sectors are involved in the National EE Plan implementation?
Sectors addressed in the National EE Plan are
1. transport,
2. households,
3. agriculture,
4. industry, and

Does Kosovo have an Energy Efficiency fund?
Kosovo has no Energy Efficiency Fund.