Medium Term Expenditures Framework 2015-2017

Republika e Kosovës

Republika Kosova-Republic of Kosovo

Qeveria –Vlada-Government

Ministria e Financave

Ministarstvo za Finansije

Ministry of Finance

MEDIUM TERM EXPENDITURES FRAMEWORK

2015-2017

April, 2014

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List of Abbreviations

CAA Civil Aviation Authority

ACA Anti Corruption Agency

PAK Privatisation Agency of Kosovo

KPA Kosovo Property Agency

KFA Kosovo Forestry Agency

PPA Public Procurement Agency

KAMMC Kosovo Agency for the Management of Memorial Complexes

LAA Legal Aid Agency

RAEPC Regulatory Authority of Electronic and Postal Communications

KASA Kosovo Academy of Sciences and Arts

TAK Tax Administration of Kosovo

BDMS Budget Development Management System

GDP Gross Domestic Product

HSP Construction of High Security Prison

CEER Council of European Energy Regulatory

DoJ Department of Justice

DMB Department of Municipal Budget

MPT Municipal Preparation Teams

RAER Regional Association of Energy Regulators

EU European Union

IMF International Monetary Fund

KSF Kosovo Security Force

CCK Constitutional Court of Kosovo

MOSR Municipal Own Source Revenues

ICO International Civilian Representative

KJI Kosovo Judicial Institute

KIPA Kosovo Institute for Public Administration

IPA Coordination Assistance Program

MTEF Medium Term Expenditure Framework

KEK Kosovo Energy Corporation

GC Grants Commission

KJC Kosovo Judicial Council

KCC Kosovo Competition Commission

KCCH Kosovo Council for Cultural Heritage

IMC Independent Media Commission

ICMM Independent Commission for Mines and Minerals

CEC Central Election Commission

PPRC Public Procurement Regulatory Commission

CAP Complaints and Appeals Panel

LLGF Law on Local Government Finance

LLSG Law on Local Self-Government

LPFMA Law on Public Financial Management and Accountability

MPA Ministry of Public Administration

MLGA Ministry of Local Government and Administration

MEST Ministry of Education , Science and Technology

MAFRD Ministry of Agriculture , Forestry and Rural Development

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MoF Ministry of Finance

MED Ministry of Economic Development

MKSF Ministry of Kosovo Security Force

MCR Ministry for Communities and Returns

MCYS Ministry of Culture , Youth and Sports

MESP Ministry of Environment and Spatial Planning

MIA Ministry of Internal Affairs

MFA Ministry of Foreign Affairs

MLSW Ministry of Labour and Social Welfare

MoH Ministry of Health

MTI Ministry of Trade and Industry

MI Ministry of Infrastructure

SOEs Socially owned Enterprises

PRB Procurement Review Body

PIP Public Investment Program

PTK Post and Telecommunications of Kosovo

EPAP European Partnership Action Plan

FIC Financial Intelligence Centre

UCCK University Clinical Centre of Kosova

RTK National Radio and Television of Kosovo

MYR Mid-year Review

GFS Government Financial Statistics

GCS Grants Commission Secretariat

IT Information Technology

VAT Value Added Tax

UP University of Prishtina

OAG Office of the Auditor General

OPM Office of the Prime Minister

KPCC Office of the KPC Coordinator

ECLO European Commission Liaison Office

OP Office of the President

ERO Energy Regulatory Office

WWRO Water and Waste Regulatory Office

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Content:

DECLARATION OF THE GOVERNMENT PRIORITIES FOR MEDIUM -TERM

EXPENDITURE FRAMEWORK 2015 – 2017 .......................................................................... 6

GENERAL FRAMEWORK ................................................................................................... 6

1. Sustainable Economic Growth ................................................................................. 7

2. Good Governance and strengthening of rule of law ................................................. 9

3. Development of Human Resources ........................................................................ 11

4. Enhancement of living standards and social welfare .............................................. 11

2. MACRO-FISCAL FRAMEWORK 2015-2017 ......................................................................... 13

2.2. REAL SECTOR ................................................................................................................... 14

2.2.1. PRICE FLUCTUATION AND ESTIMATIONS FOR 2013-2015 PERIOD ...................................... 15

2.3. EXTERNAL FACTOR ........................................................................................................... 16

2.4. FINANCIAL SECTOR ........................................................................................................... 19

2.5. FISCAL SECTOR 2015-2017 ............................................................................................... 20

2.5.1. BUDGET REVENUES 2015-2017 ........................................................................................ 20

2.5.1.1. REVENUES BY SOURCES OF COLLECTION ................................................................. 21

2.5.2. EXPENDITURES BY BUDGET CATEGORIES 2015-2017 ........................................................ 23

2.5.3. FISCAL RISKS FOR PERIOD 2015-2017 ............................................................................... 29

THE ASSEMBLY OF THE REPUBLIC OF KOSOVO ........................................................... 34

OFFICE OF THE PRESIDENT ................................................................................................ 37

OFFICE OF THE PRIME MINISTER ...................................................................................... 39

THE MINISTRY OF FINANCE ............................................................................................... 42

MINISTRY OF PUBLIC ADMINISTRATION ....................................................................... 49

MINISTRY OF AGRICULTURE, FORESTRY AND RURAL DEVELOPMENT ................ 52

MINISTRY OF TRADE AND INDUSTRY ............................................................................. 58

MINISTRY OF INFRASTRUCTURE ..................................................................................... 61

MINISTRY OF HEALTH ........................................................................................................ 65

MINISTRY OF CULTURE, YOUTH AND SPORTS ............................................................. 70

MINISTRY OF EDUCATION, SCIENCE AND TECHNOLOGY ......................................... 74

MINISTRY OF LABOUR AND SOCIAL WELFARE ............................................................ 80

MINISTRY OF ENVIRONMENT AND SPATIAL PLANNING ........................................... 86

MINISTRY OF COMMUNITIES AND RETURNS ................................................................ 90

MINISTRY OF LOCAL GOVERNMENT ADMINISTRATION ........................................... 93

MINISTRY OF ECONOMIC DEVELOPMENT ..................................................................... 95

MINISTRY OF INTERNAL AFFAIRS ................................................................................. 100

MINISTRY OF JUSTICE ....................................................................................................... 107

MINISTRY OF FOREIGN AFFAIRS .................................................................................... 113

MINISTRY OF KOSOVO SECURITY FORCE .................................................................... 117

THE MINISTRY OF EUROPEAN INTEGRATION ............................................................. 124

THE MINISTRY OF DIASPORA .......................................................................................... 128

REGULATORY COMMISSION OF PUBLIC PROCUREMENT ........................................ 131

THE ACADEMY OF SCIENCES AND ARTS OF KOSOVO .............................................. 134

REGULATORY AUTHORITY OF ELECTRONIC AND MAIL COMMUNICATION ...... 137

ANTI-CORRUPTION AGENCY ........................................................................................... 139

ENERGY REGULATORY OFFICE ...................................................................................... 141

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PRIVATIZATION AGENCY OF KOSOVO ........................................................................... 143

PROCUREMENT REVIEW BODY ...................................................................................... 146

AGENCY FOR FREE LEGAL AID ....................................................................................... 148

UNIVERSITY OF PRISHTINA ............................................................................................. 150

CONSTITUTIONAL COURT OF KOSOVO ........................................................................ 155

KOSOVO COMPETITION COMMITTEE ........................................................................... 157

KOSOVO INTELLIGENCE AGENCY ................................................................................. 158

KOSOVO COUNCIL FOR CULTURAL HERITAGE .......................................................... 160

ELECTION COMPLAINTS AND APPEALS PANEL ......................................................... 162

INDEPENDENT OVERSIGHT BOARD FOR CIVIL SERVICE OF KOSOVO .................. 164

STATE PROSECUTOR OFFICE ........................................................................................... 166

OFFICE OF THE AUDITOR GENERAL .............................................................................. 169

WATER AND WASTE REGULATORY OFFICE ................................................................ 171

RAILWAY REGULATORY AUTHORITY .......................................................................... 173

CIVIL AVIATION AUTHORITY ......................................................................................... 175

INDEPENDENT COMMISSION FOR MINES AND MINERALS ...................................... 178

THE INDEPENDENT MEDIA COMMISSION .................................................................... 180

THE CENTRAL ELECTION COMMISSION ....................................................................... 182

THE INSTITUTION OF OMBUDSPERSON ........................................................................ 184

KOSOVO JUDICIAL INSTITUTE ........................................................................................ 186

JUDICIAL COUNCIL OF KOSOVO ..................................................................................... 190

KOSOVO PROPERTY AGENCY ......................................................................................... 194

NATIONAL AGENCY FOR PERSONAL DATA PROTECTION ....................................... 198

RADIO TELEVISION OF KOSOVO .................................................................................... 200

THE AGENCY FOR THE MANAGEMENT OF MEMORIAL COMPLEXES OF KOSOVO ..

....................................................................................................................................... 202

MUNICIPAL MTEF 2015 – 2017 .............................................................................................. 203

1 MUNICIPAL FUNDING SOURCES FOR THE YEARS 2015-2017........................................... 204

COMMENT: UNDISTRIBUTED RESERVES IN THE AMOUNT OF 3,991,027 EUROS IN OPERATING

EXPENSES WILL BE ALLOCATED IN THE BUDGET PROCESS FOR FUNDING TO COVER SALARIES OR

OTHER OPERATING EXPENSES WILL BE DEVELOPED ACCORDING TO THE BUDGET PROCESS. ..... 207

1.1 THE GENERAL GRANT .......................................................................................................... 207

1.2 The specific grant for Education............................................................................... 210

1.3 SPECIFIC GRANT FOR PRIMARY HEALTHCARE ........................................................................ 212

1.4 Secondary Healthcare: hospitals in the municipalities with expanded competencies: 214

1.5 Funding for the residential services in the municipality of Skenderaj and Graçanicë . 215

1.6 MUNICIPAL OWN SOURCE REVENUES .................................................................................. 215

2. TRANSFER OF CARRIED FORWARD AND DELEGATED COMPETENCIES .............................. 217

3. NEW MUNICIPALITIES – DECENTRALIZATION .................................................................. 217

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DECLARATION OF THE GOVERNMENT PRIORITIES FOR

MEDIUM -TERM EXPENDITURE FRAMEWORK 2015 – 2017

GENERAL FRAMEWORK

The Medium Term Expenditures Framework represents coherence, coordination and a

functional link between the Government‟s priorities established in the strategic documents on

one hand and their specific incorporation in the budget projections for the medium terms. For

the purpose of a better orientation in appropriating budget funds during the next budget period,

the Declaration of Government‟s Priorities for 2015-2017 has been produced. It confirms the

Government‟s commitment to give effect to the key strategic priorities aiming at sustainable

economic growth, setting of high standards for good governance and rule of law, human

capital development and improvement of the living standards and welfare of the citizens of the

Republic of Kosovo. The Medium Term Expenditures Framework enables the development of

a sustainable budget for the 2015-2017 period, which includes the financing of key priorities

with available resources, as set forth in the Declaration on Priorities of Government Medium

Terms Policy (DPMP).

Priorities of the Government of the Republic of Kosovo, which are part of the Medium Term

Expenditures Framework 2015-2017, are oriented towards the country‟s sustainable economic,

social and institutional development. Medium Term priorities 2015-2017, are mainly based on

the Government‟s Program, Declaration on Medium Terms Priority Policies 2014-2016, and

the Action Plan on Negotiation of the Stabilisation and Association Agreement. In line with

the priorities defined in the DPMP, In line with the priorities defined by the DPPA, the 2015-

17 MTEF considers the Government‟s commitment in relation to international institutions. In

this context, MTEF is designed in accordance with fiscal/budget policy which the Government

has discussed with and agreed about with the International Monetary Fund (IMF). The budget

development process should therefore take into account respecting the fiscal rule where the

overall budget deficit should not exceed 2% of the Gross Domestic Product (GDP).

Budget sustainability and macro-fiscal projections in the medium term is of particular

importance to the meeting of Government's priorities. In this context, we will continue

keeping the pace of economic growth, maintaining of low budget deficits, the sustainable level

of the country‟s public debt, charging low business taxes and increasing the level of revenue

collection within country in relation to those collected at the border.

Besides the priorities established in key strategic documents, the 2015-17 medium term period

includes some important decisions taken by the Government. These policies include salary

increases for all civil servants, pensions of all categories, allocation of funds for social and

pension schemes, including new schemes for the ex-persecuted persons, the political prisoners

and war veterans. Moreover, in order to meet these priorities, the Government will continue to

provide funds for the agricultural sector, civil service reforms, investments in infrastructure,

including the construction of Route 6 and strengthening safety and security within the 2015-

2017 framework. All these will be integrated into a sustainable medium-term budget

framework. To this end, the Government will, during the next medium term period, reduce the

budget appropriations for Goods and Services compared to the appropriations for 2014.

Moreover, the fulfilment of the Government's priorities includes reforms needed in certain

sectors, wherewith the economic, social and institutional prerequisites of the Euro-Atlantic

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integration process and of other international mechanisms will be fulfilled. Based on the

Government‟s Program, the priorities are summarised in the following four pillars:

Sustainable economic growth and development;

Good Governance and security and protection policies;

Human capital development;

Improvement of living standard and social welfare

All of the above priorities will be financed while maintaining macro-fiscal stability. The

Government of Kosovo will continue to develop a simple and modern tax system that will focus

on expanding the tax base. To this end, The Government of Kosovo remains committed to

advance further in the fight against informal economy and money laundering, through the

implementation of the 2014-2018 Strategy Action Plan for the prevention and combating of

the informal economy, money laundering, terrorist financing and financial crimes. Successful

prevention and combating of informal economy will at the same time ensure the maintenance

of the fiscal balance between the public sector needs for funding and the need to develop the

private sector, creating equal preconditions for private sector development.

Aiming the continuous increase in the effectiveness, efficiency, responsibility and

accountability, in the management of public finances, the Government has set priorities for

funding. These priorities will be developed further within sectors in specific and measurable

objectives through the MTEF process. Objectives set out in the MTEF will be developed in

concrete activities and projects through the regular budget process.

1. Sustainable Economic Growth

The Government of the Republic of Kosovo will continue to focus on specific sectoral

priorities to ensure a sustainable economic development of the country. The Government of

the Republic of Kosovo will continue to focus on specific sectoral priorities to ensure a

sustainable economic development of the country. Implementation of these priorities, as

earlier, constitutes the largest part of capital investments that the government has taken in

recent years, and will continue to do so for following years. These sectoral priorities will be

implemented through funding within the budget framework and potentially additional sources

of financing (public-private partnerships, grants, etc.). Priorities which the government intends

to implement in the context of this pillar during the next term include: strengthening of

economic and trade relations with other countries; trade policies, investment promotion and

industry development; modernization and infrastructure development; energy, mining,

telecommunications and public utilities.

Strengthening of economic and trading relations with other countries will the Government‟s

key priority during the medium term period. In this context, besides the objective of the

Kosovo‟s membership to the international bodies, the Government is also aiming at

strengthening the economic and trading relations with regions countries and beyond, by taking

the cooperation with the Republic of Albania as an example. In addition, a special focus will

be given to the cooperation with EU member countries, and the EU itself, always taking into

account the Kosovo‟s obligations having signed the Stabilisation-Association Agreement. In

order to absorb and promote investments, we will continue entering into bilateral and

multilateral agreements for the promotion and protection of investments, eliminating double

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taxation, as well as into memorandums with homologue institutions for exchanging

experiences in terms of promoting investments and export.

The Government will continue its commitment to promote investments by establishing a

favourable environment to enhance the internal and external investments and to promote the

country‟s economic and industrial revitalisation. This priority will be met through the

completion of the legal infrastructure and its implementation, enhanced coordination and

inter-institutional cooperation, and by focusing on the project of specific importance to the

promotion of investments. Starting with the implementation of the project Construction of

Brezovica Touristic Complex, through a Public Private Partnership, is one of the biggest

projects having an impact on the economic development and growth of employment.

The job that has been done so far in improving the Doing Business environment will continue

further aiming at taking the Kosovo‟s progress at the top 40 reformers in 2015 according to

the World Banks assessments of doing business. Support for Small and Medium Enterprises

(SMEs) will focus on initiating loan guarantee scheme for new businesses and businesses that

have the potential to export. Such policy is also expected to be supported by development

partners.

Modernisation and development of the infrastructure constitutes an important element of the

Government's investment, the goal of which is the improvement of investment, development

and maintenance of transport aiming Kosovo's integration into pan-European corridors in

accordance with European standards. After the completion of the R7 Morinë-Merdar

Highway, the Government is concluding the procedures for starting the construction of R6

Prishtina-Hani i Elezit Highway, which is expected to be implemented during the mid-term

period. The expansion of national roads M2 and M9, according to priorities, will constitute

another aspect of financing during this period. It should be mentioned that the expansion of M2

Road is expected to receive other forms of financing. Moreover, the Government will during this

period give priority to the modernisation of the railway line 10 Hani i Elezit – Leshak.

The development of infrastructure for provision of air navigation services is foreseen in

accordance with Government‟s priorities with a focus on the project of opening high air space

in cooperation with NATO. This project will be implemented by the Air Navigation Services

Agency after its establishment. Development of public infrastructure is expected to have an

impact on the creation of new jobs, strengthening small and medium-businesses, integrated

rural development, etc.

Fulfilment of needs for energy by increasing the energy supply in accordance with

International and European standards will be made through the initiation of project

implementation Kosova e Re. In addition, an increase of transmission capacity required for the

exchange of energy is foreseen to take place through the construction of the line 400 KV with

Albania, in a total length of 241.5 km. The Government will continue to implement policies to

promote energy efficiency and capacity for energy production from renewable sources, in

accordance with the requirements of the Energy Community Treaty, i.e. achieving the

ambitious targets set by the European Union up to 2020. This includes the finalisation of the

co-generation project, i.e. connecting the District heating of Prishtina with Kosova B Thermo

Central. These and other projects will largely result in the fulfilment of citizens‟ needs for

energy, heating, economic development and the environment‟s improvement for investments.

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By amending the Law on Publicly Owned Enterprises, the Government of Kosovo aims to

support the further development of mineral resources and the expansion of mineral processing

industry. Thus, the regulation and clarification of ownership and legal status will facilitate the

attracting of investors and credit-issuers to the benefit of "Trepca JSC" and will create the

necessary preconditions for the involvement of private capital in Trepça, either through

public-private partnerships or through a partial privatization, depending on Trepca‟s public

interest and development needs. This will enable the creation of legal and institutional

conditions for the rapid growth of investments in the mining sector, sustainable economic

development, opening of new jobs and will increase citizens' welfare.

Continuous support for the rural development and agriculture will be given by increasing the

budget for this sector to the extent of 100%, aiming at upgrading the infrastructure for

agriculture and rural development, increasing productivity, reducing the import of agricultural

products and their replacement with local products, providing advisory services to farmers and

generating new jobs. By implementing the measures for agriculture and rural development, the

Government intends to support the revitalization of orcharding, vegetables gardening and

cowsheds, as well as to create new opportunities for the development of horticulture and

livestock farming sectors in households for the period 2015-2017.

Investments related to environmental management and supply with potable water, in

cooperation with donors supporting this sector, will continue when it comes to building,

rehabilitation and extension of capacities for providing potable water, collecting and treating

wastewater, improving waste management etc. Moreover, as far as the implementation of

water legislation is concerned, the Government will consider the options of building up the

groundwater monitoring system in addition to the existing surface waters‟ quality monitoring

system

The increase of employment rate will also be Kosovo's Government strategic goal of the

coming period, which it aims to achieve not only through this priority but also through the

overall development of human resources. The reforms in and modernisation of public service

employment will continue in terms of support to the employment policy by focusing on

building the physical and methodological capacities of state mechanisms, enhancing active

measures for labour market, fostering employment of youth, persons with disability, long-

being unemployed women and communities. As a sector that includes various stakeholders,

the Government will also support the operation of public services employment, capacity

building in vocational and education training, strengthening of public-private partnerships and

other areas.

2. Good Governance and strengthening of rule of law

Aiming at setting the highest standards of good governance and strengthening the rule of law,

the Government will, during the period 2015-2017, focus on the following sectors: the judicial

and prosecutorial system, strengthening of law enforcement, security policies, public

administration reform and local governance. Priorities which the government intends to

support under this pillar require great determination and commitment of all institutions taking

account their large intertwining within Kosovo's aspirations for membership in the Euro-

Atlantic institutions. Implementation of reforms in these sectors is of specific importance to

the future of Kosovo's integration into Euro-Atlantic structures.

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The Government will continue to support the reforms and capacity building in the judicial and

prosecutorial systems in order to ensure complete independence and increase results-based

operational efficiency. The Government will continue to support the ending of system‟s

restructuring and reforming in order to increase efficiency in the courts and to reduce the

number of outstanding cases.

The strengthening of the system for preventing and combating corruption and other negative

phenomena, including better coordination between relevant institutions, remains a

Government top priority. The Government will work to adapt the criminal law to the

international best practices in order to fight corruption and other negative phenomena. We will

keep preventing and fighting informal economy, money laundering and financing of terrorism.

When it comes to safety and security, the Government has, during the past year, been working

on reviewing this sector and has therefore adopted the Strategic Analysis Review of Security

Sector (SARSS) and related recommendations. It will, in the mid-term period, focus on

implementing the decisions and legislation to transform the KMSF and the KSF into the

Ministry of Defence and Kosovo Armed Forces respectively. In addition to the

implementation of SARSS recommendations, additional engagements are required for

reviewing the legal and institutional framework, drafting of strategic documents, and building

of institutional and human capacities reflecting on SARSS recommendations.

The Government will continue to support capacity building of law and order institutions,

including the advancement of Kosovo Police conditions by providing them with the necessary

technical and technological equipments for exchange of information, etc. It will also continue

to support the reforms already initiated in the sector and further strengthen police capacities,

particularly in areas dealing with investigation, detection and fight against organized crime

and with the prevention and fight against corruption. The Government will support the

establishment of inter-institutional cooperation between all government agencies regarding the

rule of law as well as further extension of the concepts for intelligence-based police and

community police. Work will also be done for advancing the bilateral cooperation and

integration to relevant regional and international organizations in the areas of border affairs,

Integrated Border Management, emigration, personal data protection, fight against organized

crime, etc.

Aiming at establishing a professional public administration the Government of Kosovo will

continue with the public administration reform process by implementing the Public

Administration Reform Strategy and Action Plan. Implementation of the legislation relevant to

the public administration reform constitutes the main element of Government's commitment in

this regard. In the medium term, no new recruitments are expected to take place unless

otherwise required by new legislation which is in line with the current budget framework

2013-2016. Work will continue for increasing the organization level and overall capacities in

terms of providing adequate coherence and institutional coordination in the design and

implementation of the country‟s sectoral policies. Moreover, we will, with the support of EU

assistance, work on improving strategic planning and management of public finances, namely

introducing system for integrated planning system by working on the development of the

National Development Strategy.

For the purpose of continuous improvement of local governance and the delivery of quality

services, the Government will continue to implement strategic and legislative framework in

the local governance area. The mid-term period will include the Government‟s increased

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commitment over the unification of local self-governance system in the country, namely the

creation of political, administrative and institutional conditions for integrating the country's

northern municipalities into the local self-governance system of the Republic of Kosovo.

3. Development of Human Resources

Policies planned within this strategic priority aim at the further development of human

capital in order to better fit to the requirements of the labour market. This sector has been

and continues to be given the same level of priority and will be similarly treated in budget

terms. However, concentration on the next mid-term stage will focus on the policies that will

affect the further improvement of quality of education, wherein orientation and planning in

terms of meeting the country‟s labour market needs will, inter alia, be the primary goal. At the

same time, the commitment to improve conditions for the development of education,

particularly at the university level, will be permanent. We also aim to develop a culture of

entrepreneurship, expand the entrepreneurship curriculum in primary schools, secondary

schools and higher education institutions as well as to enhance the cooperation between

schools and businesses.

In order to develop vocational training oriented towards the labour market needs, we aim at

increasing the number of vocational schools, upgrading and diversifying trainings and at the

same time ensuring the criteria and principles of institutions proving education and training for

accreditation and validation of qualifications. It is also envisaged to continue increasing the

capacities for vocational training for jobseekers and ensuring the quality of training in

Vocational Training Centres. In this regard, the Government of Kosovo is currently working

on drafting the Vision and Guideline for the Development of Human Resources in Kosovo

2014-2020 financed by the European Union with the help of the European Training

Framework (ETF) the main objective of which is the adaptation of education and training

system in a lifelong learning perspective covering: initiation and continuation of vocational

education and training (VET) and higher education, but with a special emphasis on adults

learning, on-the-job training, and training for the unemployed.

We will also continue to support the development of human resources in culture and sports,

fostering of the cultural creativity development, enhancement of sport quality and

performance, as well the further development and internationalization of sports and culture

inland and in the international arena. The Government will intensify its support in terms of

promotion and internationalization of sports, i.e. the Government, in med-term, intends to

invest on improving the infrastructure focusing on the construction of the Kosovo‟s National

Soccer Stadium according to the FIFA and UEFA standards.

Aiming to maintain its national and cultural identity, the Government will, under this pillar,

review the possibility of going further in the institutionalization of supplementary learning in

the Diaspora, the inclusion of a much larger number of children to participate in the process,

as well as the modernization of educational process according to modern standards. This

policy will be achieved through a unified educational curriculum and generally

supplementary teaching system with the Republic of Albania.

4. Enhancement of living standards and social welfare

Priority areas wherewith the Government of the Republic of Kosovo aims to strengthen social

cohesion and citizens equal participation in public life are: social policies (social schemes,

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pensions, support for the disabled, families of martyrs and other categories of war) and health

services. With the aim of providing financial support according to the beneficiaries‟ needs, the

Government aims to carry out an annual indexing of social schemes and pensions with

inflation. In this regard, the review of the legal infrastructure will enable a greater support for

these categories, and improved targeting of social schemes beneficiaries. Support for different

categories of pensioners remains a Government‟s priority. It will continue to strengthen the

three-pillar pension system, as a just, function system with sustainable financial resources

which meets the requirements of the social insurance law for all categories of pensions.

In order to strengthen the partnership and social dialogue, the Government of Kosovo has

signed the Collective Agreement with all social partners. This agreement regulates the

establishment of labor relations, hours, vacations, salaries, remunerations, and termination of

contract, rights, parties‟ obligations and ways of resolving disputes.

Kosovo Health System still faces considerable problems which pose a serious challenge in

providing necessary health services to all citizens. Improving the quality and effectiveness of

health services is one of the Government‟s key strategic priorities. The improvement of health

indicators aims at reducing infants and maternal mortality in line with the Millennium

projections approved by the UN and improving the health status of all citizens of Kosovo.

Improving the quality of health services implies going through significant reforms in the

health services‟ financing and management system. The Government will, during the mid-

term, enable inclusion in the health insurance system which will result in qualitative and equal

access to health services to all citizens of the Republic of Kosovo. Having this goal in mind,

the Government adopted the Law on Health Insurance, which stipulates the funding to take

place from the health sector budget and from the public fund of obligatory health insurance. In

this regard, the financing of the health sector will take place through the establishment of a

mixed model of funding from the budget and public fund of obligatory health insurance in

accordance with the Law on Health Insurance. Until the Health Insurance Fund starts to

operate, its functions will be discharged by Health Financing Agency, in accordance with the

Law of Health, as an executive agency under the Ministry of Health.

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2. MACRO-FISCAL FRAMEWORK 2015-2017

2.1. INTRODUCTION

The macro economic analysis supporting the three year fiscal plan, elaborated in this

document, foresees a growth of annual revenues per capita from €2,960 in 2014 to €3,276 in

2017. With a mid-term inflation average of 1.1% and real growth of GDP by 4.4%, the

macroeconomic performance is, the following years, expected to be a reflection of the

economy‟s overall generating potential other than just e reflection of cyclical fluctuations

movements of existing capacities. Consume and private investments are expected to lead the

economic growth, supported by export and public investments. These projections comply with

the expected developments in the foreign sector, i.e. expectations on acceleration of

economies of those countries which Kosovo has trading relations with or those where its

Diaspora is focused. Expectations for further economic development are also based on the

forecasts for further financial deepening of the economy of Kosovo, followed by more

favorable credit conditions, and a general expansion of the portfolio of deposits and loans.

The budget projections on revenues for the period 2015-2017 are based on this

macroeconomic performance. Revenues are expected to amount to 1,598 million in 2017,

from €1,458 million as budgeted in 2014. Under the estimations for low inflation rate (and

falling import prices), such growth, that is dominated by the growth of tax revenues, is

expected to occur by added volume of economic activity. Moreover, the increase is also as a

result of the impact of two free trade agreements and generally stimulating fiscal policies

supporting private business. The estimations also include the effects of Government of

Kosovo activities for improving the business environment by fighting against informal

economy. In line with the ongoing process of import substitution, the growth of revenues in

the mid-term is expected to be led by growth in domestic revenues as a result of increased

domestic production activity.

Revenues estimated in accordance with the deficit restrictions under the Law on Public

Financial Management and Accountability (fiscal rules) have determined the wider space for

public spending than in previous years, thus enabling the continuation of economic support

from the Government of the Republic of Kosovo. Budget expenditures elaborated below

reflect a variety of activities and new initiatives in view of the country‟s economic

development under the Statement of Priorities drafted for the 2015-2017 MTEF. As of 2017,

the total spending is expected to amount to €1,708 million, from 1,589 as budgeted in 2014.

Such increase in spending is of special importance because it can be ensured without having to

increase the tax burden on citizens and businesses. Moreover, such an increase is ensured

together with fiscal incentive policies for the private sector and by applying integration trade

agreements.

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2.2. REAL SECTOR

Macroeconomic stability is vital for the long term economic growth because it creates space

for structural transformation which determines productivity growth. Therefore, budget

spending and the way they are financed require compliance with macroeconomic objectives

which, by aiming to maintain macroeconomic stability, result in more favourable environment

for the private sector generating employment and growth for incomes per capita.

The analysis on the economy‟s real sector, or more accurately, the one regarding the

identification of key contributors to the economic growth, reveals so far that the accumulation

of public capital stock and fiscal policies formulated in accordance with macroeconomic

developments did not cause the public sector predominance over the private one. It has instead

resulted in incentives for the private sector. For this reason, private consumption, private

investment, and exports are expected to lead the economic growth in the medium term. On the

supply side, the economy structure is expected to be dominated by the growth of productivity

in agriculture, coupled with greater investment in light industry and manufacturing.

As a result, even though Kosovo's economic growth has slowed over the years, she has

remained positive at a time when most countries in the region have fallen into recession (see

chart 1)

Kosovo's economy has shown

considerable resistance against the

economy‟s turmoil in the euro zone.

This is due to the fact that the

Government has undertaken

successful steps towards improving

the economy's competitiveness

against countries in the region,

including improving the climate of

doing business and large public

investments in infrastructure, always

maintaining fiscal sustainability. As

a result, even though Kosovo's

economic growth has slowed down over the years, it has remained positive at a time when

most countries in the region have fallen into recession (see chart 1).

Although since the beginning of the financial and economic crisis in 2007, Kosovo's economy

has grown by an average of 4.7%, the increase in prices during this period (3.8% on average)

has led to the failure to fully transmit the benefit from such economy growth in the real

incomes citizens.

After the estimated growth of 3.2% in 2013, in line with expected developments in the

Eurozone economy, the growth in 2014 is expected to be higher, reaching 4.1%, whilst during

the 2014-2017 period it is expected to increase by 4.5% on average (see Chart 2).

In 2012 and 2013, the Kosovo‟s economic growth was estimated to be below the potential,

which is also reflected by low inflationary pressures on prices of goods and non-tradable

services. With a potential growth rate of 4%, estimated from 2004-2012 background, the

production gap is expected to narrow in the mid-term when the economy is expected to grow

-8

-6

-4

-2

0

2

4

6

8

10

2008 2009 2010 2011 2012 2013 2014

Shqiperia Kosova Maqedonia Kroacia Bosnia dhe Hercegovina Mali I Zi Serbia

Grafiku 1: Rritja e BPV-se në vendet e rajonit, ne %

Burimi: WEO, Prill 2014, FMN

15

in line with the growth potential level, which reflects the substitution of import and increase of

goods export.

The scenario of forecasts for the

mid-term provides a stable economic

climate, with the inflation rate under

1%, and accelerated economic

growth resulting from increased

private investment as a result of

credit expansion; local agricultural

production growth is expected to

rely on more subsidies; fiscal

incentives by changing the budget

structure (more current spending);

and increased consumption financed

by remittances.

Chart 2 shows that the consumption

growth‟s contribution to the real growth of GDP will be stable over the projection period,

mainly financed by remittances and increased salaries of employees in the public sector.

Membership in international financial institutions followed by the estimations for an

accelerated growth of lending by the financial sector, which is expected to come as a feedback

on the diminished uncertainty in the euro-zone economy, is expected to affect the growth of

private investments in general and in its positive contribution to real growth. The ongoing

contribution of exports of goods to the real growth of GDP and the relative decline in imports

serves to emphasize the expectations for greater substitution of imports.

Ultimately, the main factors expected to affect the acceleration of economic growth in the

medium term are: a) higher consumption supported by increased remittances and wage growth

in the public sector, b) increased investments as a result of increased lending and decline in the

construction cost as a result of general decline in prices of construction materials, c) increased

export of goods, excluding metals and, d) slowdown of imports of goods.

2.2.1. PRICE FLUCTUATION AND ESTIMATIONS FOR 2013-2015 PERIOD

Measured by annual changes in the consumer price index (CPI), the inflation rate has shown a

slow increase since the beginning of last year, thus turning negative by the mid-year

Moderation of inflationary pressures

reflects a number of factors, including

the high base effect from the previous

years and falling prices in food and oil.

The price decline was to some extent

offset by rising prices in the services

sector and tobacco and alcohol. The

rate of decline in prices of food and

petroleum products is expected to

accelerate in the coming months,

leading to a stabilisation of price

growth at 0.8% on average during 2014

and an average of 1% over the mid-

term. In other words, at this stage there

4.8%

2.5%

3.2% 4.1%

4.3% 4.4% 4.5%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2011 2012 2013 2014 2015 2016 2017Importi i mallrave dhe shërbimeve Eksporti i mallrave dhe shërbimeve

Investimet Konsumi

BPV reale

Grafiku 2: Rritja e BPV-së reale dhe kontributi i componentëve të tij

Burimi: ASK dhe kalkulimet e DPEP

-6.5

-4

-1.5

1

3.5

6

2012 2013 2014 2015 2016 2017

Ndryshimi I deflatorit Ndryshimi i cmim. nderkom. te ushiqimit Ndryshimi i ICK

Grafiku 3: Niveli i inflacionit dhe parashikimi për periudhën 2014-2017

Burimi: FMN, ASK dhe njesia e makroekonomisë, MF

%

16

should a sustainable period of falling prices. However, pressures to increase prices in the mid-

term are expected to come from the service sector and the price of alcohol and tobacco.

Increase of employees salaries in the public sector is expected to have limited impact on the

level of wages in the private sector for the fact that local merchants and manufacturers are

expected to recover their margins which had narrowed in recent years in response to the

slowdown of demand growth followed by inflationary pressures which were mainly due to

import prices. On the other hand, any increase in wages in the private sector would cause

increased costs which would be reflected in price increases or non-response to the anticipated

fall of international prices.

The GDP deflator is expected to be higher than the CPI during 2014 and 2015, which

primarily reflects the change in the structure of public spending and higher prices of export

services.

2.3. EXTERNAL FACTOR

In 2013, the current account of balance of payments recorded a deficit of 6.6% of GDP from

7.7% it was in 2012. Given that the current account position reflects the economy's

dependence on external financing its reduction would show a positive development. However,

the main factors that have contributed to reducing the current account have been decline in

import of goods, export growth and increase in transfers‟ account including remittances from

the Diaspora.

Capital and financial account increased to 3.2% of GDP from 2.9% it was in 2012. This

increase is mainly due to the reduction of investment in securities abroad that are supposed to

be re-oriented towards the securities of Kosovo Government. In addition, foreign direct

investment increased in relation to GDP from 4.3% to 4.7%. Regarding the external sector

accounts, it is worth mentioning that the level of errors and omissions is reduced by 1.5

percentage points compared to GDP, thus indicating increased data quality.

For the medium term, the value of goods imports is foreseen to grow at a slower pace,

reflecting to some extent the decline in prices of products which have the largest share in total

imports as well the decreasing demand for imports as a result the substitution with local

products. As a result, import of goods is expected to grow by 3.3 % on average over the period

of the survey. Imports of services, dominated by travel and transport services are expected to

continue to grow in line with historical trends.

Given that the structure of export of goods has significantly changed from previous years,

export growth in the coming years is expected occur mainly from goods, excluding metal.

Moreover, exports of goods are expected to rise at real rate of 8 % on average for four years.

Merchandise export growth is expected to contribute to the Stabilisation and Association

Agreement with the EU, which is expected to begin to be implemented by 2016, and the Free

Trade Agreement with Turkey. Dominated by travel services related to Diaspora visits to the

country, export of services is expected to grow at a real rate of about 4 % on average for the

next four years. Besides the growth in travel services, transport and construction services are

expected to contribute to the exports of services.

In line with historical trends and expected developments in those countries where the Diaspora

is focused, remittances are expected to grow at an average rate of about 4 %. Moreover, a

portion of revenues from the remittances are expected to be channelled into investment,

17

mainly in real estate.

As a result of these assumptions, the current balance of the balance of payments is expected to

improve compared to 2012 thus increasing from -6.6% to -5.1% of GDP at the end of the

forecast period.

As part of the financial account, foreign direct investments are expected to record 6.2 % of

GDP at the end of the period, reflecting the mitigation of uncertainty in the Euro Zone

economy and thus increased investors confidence. On the other hand, the trend of investments

in securities abroad is expected to continue to fall down as a result of the orientation of

investment by financial institutions towards securities of the Government of Kosovo.

Box 1: external economic environment

After a slow down in global economic growth during recent years, the global economy in the

second half of 2013 showed signs of economic recovery and these developments were more

positive than expected and anticipated. These positive developments were more pronounced

in developing countries. They were also encouraging developments when ti comes to

developed countries following numerous difficulties these countries faced during the

previous years. Moreover, the global economic activity is expected to improve even further

during the following years.

The increase in developed countries‟ domestic demand contributed to these positive

developments in global economic growth, resulting in the improvement of exports in the

developing countries and subsequently reflected an economic growth. The improved

financial environment after a turmoil manifested in this sector in previous years has also

played a substantial role in the improvement of economic activity in the developed countries.

This improvement of the financial sector was followed by soft crediting and increase of

investments. However, financial conditions in the developing economies continued to remain

tight and that the financial sector continues to be characterized by a low level of confidence,

which is slowing down the rapid economic development.

In terms of forecasts, global economic expansion during 2014 is expected to grow by about

3.7% from 3% it was recorded in 2013. During 2015, economic growth is expected to be

more pronounced, approximately 3.9%, and initial projections are that the global economy is

expected to grow by around

4.1% during 2016. Like in the

previous years, developing

economies were to push global

growth activity. In addition,

during the following years, the

economic growth in the

developed countries is

expected to support the

expansion of economic activity

in developing countries, given

that developed countries are

the main destination of exports

from developing economies. Source: International Monetary Fund, WEO April 2014.

Based on the International Monetary Fund (IMF) report, the risks of non-capitalizing these

forecasts are evident. In developed economies,particularly in the euro zone, risks from the

-6

-4

-2

0

2

4

6

8

10

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bota Ekonomite e zhvilluara Ekonomite ne zhvillim

Grafiku : Rritja ekonomike, ne %

18

low level of inflation and possibilities for deflation put public debt sustainability at risk,

though already being in high levels. Consequently, this would put pressure on the real

interest rates as a result of restrictions on monetary policy. Financial sector stability is

another risk the keeps following

these projections Source: International Monetary Fund,

WEO April 2014

Regarding developments in the

euro zone, they forwarded

similar shape to global

developments. Unlike the

increased global economic

activity, which began in the late

2013 following the turmoil

during 2008-2012, the growth

of economic activity in the euro

zone was negative during 2013.

Moreover, the current data and

forecasts for the year 2014 point to a modest economic growth this year, starting with a

pronounced increase as of 2015 (1.4 %). Gradual improvement of domestic demand and the

increase in the demand from abroad as a result of improving global economic activity are

estimated to be the main drivers of this economic growth. In addition, domestic demand is

expected to benefit from the relaxation of fiscal policies (following spending cuts as a result

of high public debts) as well as from lending by the banking sector.

During the last two years 2012 and 2013, the Euro zone economies were facing shrinkage of

economic activity and relatively stable level of inflation. As it can be seen from the graph,

the economy continued to decline in 2012 reaching its lowest level of around -0.6 % from the

average annual growth of around 1.5 % it was in 2011. As of mid-year 2012, the situation in

the financial sector was stabilized, but it was not sufficiently transmitted in the real sector. As

a result, the economic growth in the second half of the year was quite low. During 2013, the

recovery of economic activity continues to be negative of around -0.4 %. Based on the IMF

forecasts, the euro zone is expected to have, as a whole, a respective increase of 1 % and 1.4

% for 2014 and 2015, and by around 1.5 % during 2016 and 2017.

These developments in the euro zone were to a considerable extent reflected in the regional

countries. In countries about to join the euro zone, economic growth was higher than

expected, except for Albania. According to the data published by the respective institutions,

economic growth accelerated visibly accelerated in the fourth quarter in Macedonia,

Montenegro and Turkey, while GDP growth slowed in Serbia and Island. Albania was the

only country where economic growth during 2013 declined. Development prospects of

countries aiming to be EU members are very positive, where accelerated growth will be

marked in Kosovo and Serbia in 2015, followed by Turkey (4%) and Albania (3.3%).

-3

-2

-1

0

1

2

3

4

5

6

2012 2013 2014 2015 2016 2017 2018 2019

Albania Bosnia and HerzegovinaFYR Macedonia Montenegro

Grafiku : Rritja ekonomike, ne %

19

Source: International Monetary

Fund, WEO April 2014

2.4. FINANCIAL SECTOR

Composition of the financial sector in Kosovo continues to be dominated by commercial

banks, followed by the insurance companies and micro-financial sector. The financial sector in

Kosovo continues to remain quite stable and profitable despite economic turmoil manifested

in the international financial market during last years. One of the key factors of having a stable

banking situation was the limited investment in the international financial market.

The structure of the banks composition has continued to remain the same in terms of market

share, where international banks continue to dominate the market in Kosovo. During the last

two years, it was observed an increase in inter-bank competitive activities in terms of

providing attractive products and services with the aim of enhancing services to retain and

gincrease the number of clients. During 2013, the crediting of the Kosovo economy has

continued with a slight increase, where loans amounted to 1,806 million euros, with an

increase of 2% compared with 2012 and 2,449 billion euro deposits with an increase of 7%.

During the period 2010-2013 loans

increased by an average of 9%, whilst

deposits increased by an average of

8.9%. Such increases are park the

increasing trend of nominal GDP.

Graph 4 illustrates trends in growth

rates of nominal GDP, loans and

deposits. Assessment of parameters

illustrated in the graph is based on

historical data from 2008. The graph

shows that all three indicators are

positive and projections show a

positive movement between them

even during the years 2014 to 2017,

where loans and deposits are expected to grow at an average rate of 7.6%, 7.2% respectively,

which is consistent with expectations for growth in terms of nominal average of 6.2% over the

period 2014-2017.

-5

-4

-3

-2

-1

0

1

2

3

4

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Bruto Prodhimi Vendor Inflacioni

Grafiku : Rritja ekonomike dhe inflacioni ne euro zone, ne %

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2010 2011 2012 2013 2014 2015 2016 2017

BPV nominale Depozitat Kreditë

Grafiku 4. Rritja e kredive, depozitave dhe BPV-së nominale, në përqindje

Burimi: Banka qendrore e Kosovës dhe kalkulimet e Dep. per politika ekon-publike

20

During 2013, the interest rate on

loans was 11%, marking a decline of

1.7% from 2012. On the other hand,

interest rate on deposits recorded

2.4%, declining 1.3% compared with

2012. As shown in the graph, the

interest rate on loans and deposits

during 2014 is expected to record a

slight decline, whilst in the following

years they are expected to be on

average of 10% (2014-2016). Recent

initiatives undertaken by

international financial institutions for

providing funds for low-cost loan for

agricultural enterprises in Kosovo are expected to have an impact on the gradual reduction of

interest rates on loans, but also in setting up bank liquidity, which could have an impact on the

reduction of deposit rates.

2.5. FISCAL SECTOR 2015-2017

2.5.1. Budget revenues 2015-2017

Budget revenue forecast for the period 2015-2017 is characterized by two main assumptions:

Additional revenue collection as a result of the increased volume of real economic activity, as

well as increased revenues through combating the informal economy. Unlike previous forecast

periods, the first assumption is based on the CAGR forecast lower prices within the next three

years. More precisely , the macroeconomic framework upon which income planning requires

that the average increase in consumer prices of 0.9 % , ndrërsa import prices are expected to

fall by an average of 0.7 % ( for the period 2015-2017 ) . Such an environment with low

inflationary pressures will continue to increase revenues by increasing economic activity as a

result of reduced real consumption and investment costs. Moreover, changes in the structure of

public expenditure characterized by wage increases and transfers are expected to be an

additional stimuls consumption, and hence for the collection of budget revenues. The second

assumption is based on the planning of additional revenue generation from activities

envisaged by the "Strategy for the Prevention and Combating of Non- Formal Economy,

Money Laundering, Terrorist Financing and Financial Crimes" from 2014 to 2018. Successful

implementation of the action plan of this strategy will enable the reduction of the tax gap

through continuous formalization of economic activities, which will ensure steady revenue

budget for the coming years

0%

2%

4%

6%

8%

10%

12%

14%

16%

2009 2010 2011 2012 2013 2014 2015 2016

Norma e interesit në depozita Norma e interesit në kredi

Grafiku 5. Normat e interesit në depozita dhe kreditë, në përqindje

21

Table 1: Budget revenues and their share in GDP

In total, for the period 2015-2017, provided that the cumulative collection of budget revenues

reach a value of 4.74 billion Euros, with 1:58 billion euros in annual average. The share of

revenues in GDP over the medium term is expected to be on average 27%, with an average

share of income tax to 23%. The share of tax revenue to GDP is expected to decrease

gradually to 21% by 2017, as the medium-term fiscal policy is expected to accommodate two

free trade agreements (with Turkey and the European Union), and provide tax relief to

stimulate the private sector including customs approved exemptions for inputs in production,

tax incentives for economic free zones, as well as incentives to attract foreign direct

investment. As a result, it is expected that as a percentage of overall economic activity (GDP)

of the tax burden is lower.

2.5.1.1. Revenues by sources of collection

Budget revenues are expected to have similar structure along the mid-term forecast period,

with a gradual increase in the participation of local revenue. Due to the joint collection of

Value Added Tax by Customs and Tax Administration in Kosovo, the structure of revenues is

still expected to be dominated by customs revenues, with an average participation of 59%.

While in 2010 the share of local revenues in total revenues was 18.5%, thanks to increased

efficiency in revenue collection from Tax Administration of Kosovo, along the medium term

this share is expected to reach 27%, which demonstrates a commitment continuing to

implement reforms to ensure the collection of taxes shift from the border inside the country, to

provide a stable funding over the medium term.

- Domestic revenues are expected

to grow by 367 million Euros, as are

provided by Budget 2014, to 430

million Euros in 2015. This increase

of 17% based on increasing

revenues from VAT and income

through taxation generated as a

result of accelerated economic

growth in 2014 (in particular the

increased consumption as a result of

the fiscal stimulus and credit

expansion and import substitution),

and as a result of activities to

combat the informal economy in the

country. Because of the effect of broadening the tax base in 2015, in the following years

(2016-2017) is expected modest growth in domestic revenues, in line with the performance

and macroeconomic forecasts for the provision of fiscal incentives for private sector.

2010 2011 2012 2013 2014 Budget

2015 Proj.

2016 Proj.

2017 Proj.

Total revenues : 1,166.0 1,309.2 1,321.7 1,316.2 1,458.0 1,571.8 1,572.5 1,598.2

as % of GDP 29% 31% 28% 26% 27% 27% 26% 25%

Tax revenues 893.6 1,058.0 1,094.3 1,104.8 1,264.1 1,346.4 1,342.1 1,365.6

as % of GDP

21% 22% 22% 22% 23% 23% 22% 21%

Non-tax own source revenues 147.9 162.6 145.4 168.4 192.5 195.0 200.4 202.6

as % of GDP

3% 3% 3% 3% 4% 3% 3% 3%

In milions Euro

Description

0%

10%

20%

30%

40%

50%

60%

70%

2015Proj.

2016Proj.

2017Proj.

Të hyrat tatimore vendore Të hyrat tatimore doganore Të hyrat jo-tatimore dhe vetanake

Grafiku 5: Struktura e te hyrave sipas kategorive, në % te te hyrave te pergjithshme

22

- Customs revenues are expected to grow by about 3 % in 2015 compared to 2014 budgeted

forecast. Despite the projected decline of import prices by 0.6 % in 2015 , revenue growth is

expected to come from increased demand for imports as a result the CAGR of consumption

and investment , although the trend is slower than historical evident due to import substitution

. Customs revenues in 2016 are expected to be 15 million higher than in 2014, but for the 9

million lower than in 2015. This is because the implementation of the free trade agreement

with the EU and with Turkey is expected to have a simultaneous effect, which will then be

compensated for by increasing the volume of imports in 2017, resulting in projected revenues

of 969 million euros, or about 4 % more than budgeted for the year forecast 2014. however be

noted that the effect of the decline in customs revenue from the beginning of the

implementation of free trade agreements (EU and Turkey) , in the first year of its

implementation ( 2016 ) is not expected to be in the amount of 10 % of nominal value of

imports from these countries, because the gradual liberalization will occur as part of the

relevant agreements negotiated.

Table 2: Structure of budget revenues, projections 2015-2017

- Non-tax revenues, own source revenues and other revenues, although having the a large

potential to, especially at the municipal level, are projected conservatively, preserving their

participation in constant average 3 % of GDP (annual average of 199 million euros) . It should

be noted that in anticipation of this category of revenues is not taken into account the potential

stock of the revenue that can be generated by the legalization of facilities at the municipal

level in the medium term, or capacity building for property tax collection by Municipalities.

The decrease in the level of revenues reflects the central level decision to release the payment

level for students as well as the trend of revenues from issuance. On the other hand the growth

of revenues from royalties payment does not reflect the change, but the growth of revenues as

a result of higher production of energy, in accordance with the trend of improving energy

balance in Kosovo. Similarly, the additional access is also provided by public dividend in the

amount of 30 million Euros.

2011 2012 2013 2014

Budget 2015 Proj.

2016 Proj.

2017 Proj.

Tax revenues 1,058 1,094 1,105 1,264 1,346 1,342 1,366

Domestic tax revenues 261 284 305 367 430 436 443

Customs tax revenues 828 845 837 934 958 949 969

Refunds -31 -35 -38 -37 -41 -42 -46

Non-tax and own source revenues 163 145 168 193 195 200 203

Dividend 60 45 43 0 30 30 30 Projects grants 0.1 - - 1 0.3 - 0.0

Trust fund 9 - - - - - - Total revenues 1,309 1,322 1,316 1,458 1,572 1,572 1,598

Description

In millions euros

23

Table 3: Structure of budget revenues and projections 2015-2017

2.5.2. Expenditures by budget categories 2015-2017

The 2014 budget and medium-term fiscal framework are prepared by adhering to the

parameters allowed by the Law on Public Financial Management and Accountability for the

overall deficit. Therefore, based on the forecast to the trend of the overall budget hyravetë,

overheads are planned to grow at an average rate of 2% over the medium term. Despite this,

the level and structure of costs may vary depending on the approval and implementation of

new legislative initiatives and revenue realization.

During the observed period, current expenditure is expected to account for about 71% of total

expenditure while capital expenditures represent 27% of them. The rest of the expenses

comprise costs for servicing debt and other expenditures.

Table 4: Structure of expenditures as % of GDP

Wages and salaries - constitutes the largest share of current expenditure. During this period,

this category will represent approximately 45.7 % of current expenditures or about 9 % of

GDP. Starting from April 2014, the Government of Kosovo has decided to increase the

salaries of civil servants to 25 %, the financing of which will be made from wages

contingencies planned 2014 budget and rationalization of expenditure categories different. In

addition, in the medium term, it is planned to include the increase within the planned budget

for this category for the coming years. However, increasing the level of spending for this

2010 2011 2012 2013 2014 Budget

2015 Proj.

2016 Proj.

2017 Proj.

Non-tax and own source revenues 131 148 163 145 168 193 195 200 203 Non-tax revenues 53 47 46 41 47 48 49 50 50 Own source revenues 78 101 115 104 95 117 114 117 119

Municipal level 48 52 56 59 56 67 74 76 77 Central level 30 49 59 45 39 50 40 41 42

Royalties - - - - 25 22 22 22 22 Concession tax - - 2 - 2 6 10 12 12

Dividend 200 85 60 45 43 0 30 30 30 Projects of grants - - 0.1 - - 1 0.3 - -

Description

In milions euros

Description 2013 2014 2015 2016 2017 2014-2017

Overall expenditures 28.7% 29.2% 29.0% 27.4% 26.3% 28.0%

Current 18.5% 19.3% 20.7% 19.7% 18.8% 19.6%

Wages and Salaries 8.1% 8.9% 9.5% 9.0% 8.5% 9.0%

Goods and Services 4.2% 4.6% 3.7% 3.5% 3.3% 3.8%

Subsidies and transfers 6.1% 5.8% 7.5% 7.2% 6.9% 6.8%

Capital expenditures 10.3% 9.7% 8.0% 7.4% 7.3% 8.1%

Primary deficit -3.0% -2.4% -1.8% -1.7% -1.7% -1.9%

Total deficit (by fiscal rule) -3.3% -2.0% -2.0% -2.0% -2.0% -2.0%

as % e BPV-së

24

category has to a certain extent contributed to the costs of implementing the law on health

insurance which is planned to amout to €18.5 million and expenses for new recruitments

planned 2014 budget. As a result, the level of expenditure on wages and salaries in 2015 will

reach 550 million euros, representing an increase of 14 % compared with the budgeted amount

for 2014

Goods and services - in order to maintain the overall budget deficit, and hence the inclusion

of new initiatives which carry additional costs to the budget, the Government of Kosovo has

taken a decision to reduce spending on goods and services by 15% over the period of the

planning. As a result, the costs for this category is expected to decline in participation in

current expenditures from 24% to 17.7% by staying in value of 215 million euros over the

period 2015 to 2017

Subsidies and Transfers - Along with decision to increase salaries, Kosovo Government has

also decided to increase pensions and other social categories adhere to the 25 % and pensions

of retirees from Trepca 50 %. In addition, this expense category reflects the natural growth of

the beneficiaries also started from 2014, this category also included the implementation of the

Law on War Veterans and the Law on political persecuted. This has resulted in increased

participation of the category of subsidies and transfers from the 29.9 % that was planned in

2014 to 36.7 % at the end of the planning period. In this category subsidies for the agricultural

sector are also included, which are planned to grow to about 38 million in 2015, increasing

manifold compared to the 2014 budget. This growth is expected to continue throughout the

planning period, which demonstrates commitment to treatment of the agriculture sector as one

of the priority sectors and the potential for development, job creation and import substitution.

Consequently, the category of subsidies was estimated at 434 million euros in 2015 and is

projected to rise to 440.6 million Euros as a result of natural growth of beneficiaries over the

years.

Capital Expenditures - this category will, even during the projected period, continue to

represent a significant part of total spending. Under the assumption of full execution of this

expenditure in this category is expected to account for nearly 27% of total spending or about

8.1% of GDP for the period 2015-2017.

Presented capital expenditures and fiscal framework are integrated in the construction project

for Route 6, Pristina-Skopje. What is worth mentioning is that the lion part of capital

investment during the next term will be funded from regular sources of revenues, although a

large number of projects in different sectors is planned to be financed by external borrowing

25

Table 5. Structure of expenditures 2014-2017, in milions euro

Source: MoF, Treasury and Macroeconomy Department’s projections

Financing – Having joined EBRD, EIB and other financial institutions, a part of the planned

expenditures will be financed by foreign borrowing.

As explained above, the assumptions for the early implementation of the fiscal rule from 2014

onwards has conditioned the planning of public expenditures measured by limiting the growth

of the budget deficit to 2% of GDP. Under the assumption of full execution of spending and

revenue collection in the average budget deficit is expected to reach 2.0% of GDP.

Table 6. Financing 2014-2017, in millions euro

Source: MoF, Treasury and Macroeconomy Department’s projections

Descritpion 2014

Budget 2015 Proj.

2016 Proj.

2017 Proj.

Total expenditures 1,589 1,678 1,679 1,706

Out of which KPA 7 7 5 4

Current 1,050 1,196 1,207 1,215

Wages and salaries 483 550 552 554

Goods and services 252 211 215 215

Subsidies and transfers 314 435 441 447

Social transfers 293 414 420 436

Subsidies to POEs 21 21 21 21

Capital expenditures 530 461 450 470

REserve 2 5 5 5

Unallocated reserve 16 16 16

Primary balance -131 -106 -106 -108

Interest payment -17 -17 -22 -23

Total balance (by fiscal rule) -111 -117 -122 -127

Total balance -148 -123 -128 -131

In million euro

Description 2014

Budget 2015 Proj.

2016 Proj.

2017 Proj.

Financing -148 -123 -128 -131

Foreign financing 34 55 -6 -23

Withdrawals 56 82 55 33

Payments of debts principals -22 -27 -61 -55

Domestic financing 114 68 134 154

Domestic borrowing 120 121 169 160

One-off financing 20 0 0 0

Difference in other financial means -19 -38 -19 -10

Diference in the OSR stock 4 12 12 7

Difference in the banking balance -10 -26 -29 -3

KKB Balance 170 196 225 228

Out of which : ELA 46 46 46 46

In milion euro

26

The projected budget deficit is expected to be financed from several sources including external

borrowing, domestic borrowing and one-off revenues from the liquidation funds. With the

adoption of the fiscal rule, the Government aims to save the public debt at a moderate level

while retaining its increase at the rate that leads to the stabilisation of the debt level, which is

below the level allowed by law. In this regard, the total value of foreign borrowings (including

loans to sub-loan) over the years 2015 to 2017 is planned to not exceed 169.6 million Euros.

In addition, by being a balancing point and in order to maintain an adequate level of bank

balance, domestic borrowing is expected to reach a value of 450 million Euros over the period

2015-2017. With this borrowing strategy, public debt is expected to reach 15.7 % of GDP by

the end of the planning period from 11.2 % as foreseen in 2014.

The one-off funding form the proceeds of liquidation of public enterprises, to be disbursed by

AKP, is expected to have an important role in financing the deficit in 2014. Therefore,

revenues in the amount of 20 million Euros are expected to be generated from this source

during 2014. As a result, at the end of the planning period, the final bank balance is expected

to reach 228.5 million Euros, which constitutes 3.5% of GDP. Similar to previous years, the

Emergency Liquidity Assistance worth 46 million Euros is also included within this balance.

The total value of the projected bank balance during this period is at an adequate level to

ensure sustainability of public finances in the event of emergency.

Box 2. Brief analysis on the public debt sustainability

The risk for the possibility of taking the public debt to an unsustainable situation in Kosovo

is still small. This is due to the fact that Kosovo still has a low debt level in relation to GDP,

and the Government of Kosovo already adopted fiscal rule limiting the overall budget

deficit to 2% of GDP. The aim of this rule is to stabilise the fiscal level of state debt under

the level allowed by law. Therefore, public debt sustainability analysis (DSA) assesses debt

based on sustainability of fiscal rule by comparing the indicators of debt and debt burden

ceilings in the baseline scenario with different scenarios for the period 2012-2050.

Kosovo‟s debt sustainability analysis uses the model of Ministry of Finance for DSA and

risk indicators compiled by the World Bank-IMF for countries with low revenues. Present

value (PV) Kosovo‟s public debt in 2013 was 12% of GDP. Inherited debt maturity is 23

years whilst remaining debt matures in 2031. Other existing debt has mainly long-term

maturity, which varies between 10 and 30 years.

Starting from 2014, the overall budget deficit is expected to be 2% of GDP. Project for road

7 is finalised in 2013 whilst fiscal framework is quite limited to cover fiscal pressures

expected to come from new social policies which relate to adoption of laws creating new

benefits, as well as new capital projects required for building up the infrastructure in

general.

The indicators of debt and debt‟s burden ceilings set by WB –IMF are:

The debt‟s current value in relation to the GDP - 40%

The debt‟s current value in relation to the export of goods and services - 150%

27

The debt‟s current value in relation to the budget revenues - 250%

Debt servicing in relation to the export of goods and services – 20%

Debt servicing in relation to the budget revenues – 30%

Basic Scenario: the main assumptions taken into consideration for developing basic

scenario are:

GDP nominal growth - 6.0%

Inflation rate – 2%

The participation of exports for goods and services in GDP from 18.8% of GDP in

2012 to 37.3% of GDP in 2050 (under the assumption that the contribution of

exports would increase by 0.5 percentage points for each year)

Budget Revenues 25.5% of GDP

The overall budget balance - 2%

The bank balance of General Government - 4.5% of GDP

By 2016, the participation of concessional debt is assumed to be 30% whilst the rest

is commercial debt

In the basic scenario, both solvency and liquidity indicators remain under the debt‟s burden

ceilings (see the graphs below). Therefore, as mentioned above, maintaining a deficit in a

level defined by fiscal rule drives the debt into a trajectory enabling to maintain its level

under the one allowed by law.

28

In the alternative scenarios we made an analysis of the sensitivity of these calculations

against changing of assumptions on economic growth and fiscal rule.

Alternative Scenario a: In this scenario, we changed the assumption of the GDP‟s nominal

growth from 6.0% to 4%. With this change, as a result, we have a lower level of revenues

and lower level of export. Therefore, the lower growth of the nominal GDP affects faster

achievement of maximal level of debt stock whilst debt indicators in relation to revenues

get close to the ceiling.

Alternative Scenario b.: This scenario assumes that significant fiscal pressures push

towards the breach of fiscal rule by increasing the overall deficit of 2% of GDP into 3% of

GDP. Even in this scenario, the solvency and liquidity indicators in relation to GDP and

export exceed the limits of debt burden whilst debt indicators in relation to revenues reach

the ceiling.

Of all these scenarios, including basic scenario, we can see that low export base allows

Government to have limited access to enter into debt. Therefore, this analysis suggests that

government policies should be oriented towards structural reforms that would affect

building up the private sector and increasing the export base.

0%

50%

100%

150%

200%

250%

300%

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050

b. PV of debt/Budget revenues

0% 20% 40% 60% 80%

100% 120% 140% 160%

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050

c. PV of debt/Export of goods and services

0% 5%

10% 15% 20% 25% 30% 35%

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050

d. Debt servicing/budget revenues

0%

5%

10%

15%

20%

25%

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050

e. Debt servicing/export of goods and services

Basic scenario Scenario a Scenario b

0%

10%

20%

30%

40%

50%

60%

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050

a. PV of debt/GDP

29

2.5.3. Fiscal risks for period 2015-2017

Planning period covering MTEF 2015-2017 is followed by lower macroeconomic risk than in

previous periods. This is because shocks that may come from external sector - mainly in form

of reduced remittances or decrease in the flow of foreign capital - have the lowest probability

to appear. In 2014, forecasts of international institutions (IMF, DG ECFIN) were revised to

reflect a more rapid economic recovery after the crisis, especially in advanced economies

where the Diaspora is located.

This higher assurance in the external sector is expected to affect the growth of confidence in

the banking sector, which in Kosovo is dominated by foreign-owned banks. Therefore, the risk

of limiting the supply of credit is lower for the projected mid-term period. As a result of lower

macroeconomic uncertainty, the budget revenue flow that have direct relation with the

economic performance is expected to be steady and in line with expectations.

Anticipated macroeconomic environment of low inflation and falling of import prices, in an

economy with high structural deficit of the current account, as Kosovo, is expected to be a

contributing factor in economic growth. However, such an environment also includes

systematic fiscal risk. More precisely, in the case of tightening the issue of crediting due to

internal factors (e.g. growth of non-performing loans as a result of not adopting supply and

demand in specific sectors with intensive investment) lower prices of imports may lead

towards a lower flow of revenues collected at the border.

Specific fiscal risks generally depend on adequate integration of fiscal incentives (on the

expenditure side) within the maximum allowable budget deficit parameters. Given that

macroeconomic risk following revenue collection is estimated to be low, and considering that

Kosovo included a fiscal rule (limiting the deficit) as part of its legislation on management of

public finance, then the specific fiscal risk for MTEF 2015-2017 is considered to be low.

30

Annexes:

Table 1 Key Macroeconomic Aggregates

Pershkrimi 20122013

Vler.

2014

Proj.

2015

Proj.

2016

Proj.

2017

Proj.

BPV 2.5% 3.2% 4.1% 4.3% 4.4% 4.5%

BPV per koke banori 0.9% 1.6% 2.5% 2.7% 2.8% 2.9%

Konsumi 1.9% 1.0% 3.9% 4.5% 2.7% 3.6%

Investimet -10.9% 5.0% 2.1% 1.8% 6.4% 5.6%

Eksporti -0.9% -1.1% 5.8% 4.8% 6.1% 4.9%

Importi -7.2% -1.7% 3.2% 3.6% 2.3% 3.3%

ICK 2.4% 1.8% 0.8% 1.0% 1.0% 1.2%

Deflatori 0.5% 1.1% 2.1% 1.8% 1.4% 1.4%

Cmimet e Importit 4.5% 0.4% -0.8% -0.6% -0.7% -0.3%

Te hyrat 26.9% 25.7% 26.8% 27.2% 25.7% 24.7%

Shpenzimet primare 29.3% 28.7% 29.2% 29.0% 27.5% 26.3%

Nga te cilat: shpenzimet kapitale 11.2% 10.3% 9.7% 7.4% 6.9% 6.9%

Bilanci rrjedhes 9.0% 7.2% 7.5% 6.4% 5.9% 5.8%

Bilanci primar -2.4% -3.0% -2.4% -1.8% -1.8% -1.7%

Pagesa e Interesit 0.2% 0.2% 0.3% 0.3% 0.4% 0.4%

Bilanci i pergjithshem (sipas rregulles fiskale) -2.6% -3.2% -2.0% -2.0% -2.0% -2.0%

Kursimet vendore -8.0% -5.5% -4.1% -3.8% -1.7% -0.3%

Dergesat nga diaspora 10.6% 10.8% 10.5% 10.2% 10.1% 9.9%

Te hyrat nga jashtë, neto 3.1% 2.4% 4.2% 1.7% 2.6% 2.2%

Kursimet kombetare 5.7% 7.6% 10.5% 8.1% 11.0% 11.8%

Investimet 28.2% 27.8% 26.9% 25.9% 26.1% 26.1%

Llogaria rrjedhese -7.7% -6.8% -4.8% -6.8% -4.3% -4.1%

BPV 4,916 5,125 5,446 5,778 6,117 6,481

BPV per koke banori (ne euro) 2,686 2,757 2,884 3,013 3,141 3,276

BAKD per koke banori (ne euro) 2,969 3,053 3,186 3,320 3,459 3,601

Dergesat nga diaspora, neto 519 552 570 590 620 642

Popullsia (ne mijera) 1,831 1,859 1,888 1,918 1,948 1,978

Normat reale te rritjes (ne perqind)

Ndyshimet e cmimeve (ne perqind)

Buxheti Qeveritar (ne perqindje te BPV-se)

Bilanci i kursimeve/investimeve (ne % te BPV-se)

Agregatët kryesor (ne miliona euro)

31

Table 2 Nominal GDP and its components

Description 2012 2013 Value

2014 Proj.

2015 Proj.

2016 Proj.

2017 Proj.

Consumption 5,256 5,390 5,675 5,999 6,217 6,506

Private consumption 4,448 4,522 4,759 5,020 5,247 5,524 Public Consumption 788 843 891 954 945 956

General Government 571 632 687 756 753 766 Donors Sector 217 211 204 198 192 190

IJPSHESH 20 25 25 25 25 26

Investments 1,387 1,427 1,467 1,499 1,595 1,691

Private investments 837 898 973 1,110 1,177 1,245 Public Investments 550 529 494 390 418 446

Net exports of goods and services -1,727 -1,692 -1,696 -1,721 -1,695 -1,717

Exports 922 927 997 1,064 1,143 1,213

Goods exports 287 305 329 361 396 422

Service exports 635 622 668 703 746 791

Imports 2,649 2,619 2,693 2,784 2,838 2,930

Goods imports 2,360 2,306 2,361 2,435 2,481 2,562

Service imports 289 314 332 350 356 368

GDP 4,916 5,125 5,446 5,778 6,117 6,481

Remittances, net 519 552 570 590 620 642 Revenues from abroad, net 154 122 227 99 158 144

GNDI 5,590 5,798 6,243 6,467 6,895 7,266

Other indicators:

Private sector available revenues (in million Euros) 4,999 5,232 5,753 5,798 6,243 6,582 Private consumption per capita (in Euros) 2,430 2,432 2,521 2,618 2,694 2,793 Private consumption in relacion to GDP 90% 88% 87% 87% 86% 85%

Private investments in relation to GDP 17% 18% 18% 19% 19% 19% Exports in relation to GDP 19% 18% 18% 18% 19% 19%

Imports in relation to GDP 54% 51% 49% 48% 46% 45%

In millions of Euros

32

Table 31 Government revenues and expenditures

1 For 2014, the value of revenues and expenditures are values approved under law on budget 2014, whilst the part of financing is changed in

line with current data on final bank balance for 2013 and distribution of external borrowing.

Description 2013 2014

Budget 2015 Proj.

2016 Proj.

2017 Proj.

1. Total revenues 1,316 1,458 1,572 1,572 1,598 Revenues from taxes 1,105 1,264 1,346 1,342 1,366

Domestic revenues 305.4 367.3 429.6 435.6 443.0 Customs revenues 837.3 934.1 958.2 948.7 968.6 Refunds -37.9 -37.3 -41.3 -42.3 -46.0

Non-tax revenues, OSR 168.4 192.5 195.0 200.4 202.6 Non-tax revenues 46.7 47.8 48.8 49.8 49.8 Own Source Revenues 95.0 117.2 114.2 116.6 118.8

Local level 55.9 67.2 74.2 75.6 76.8 Central level 39.1 50.0 40.0 41.0 42.0

Concessionary tax 2.0 5.5 10.0 12.0 12.0 Royalties 24.7 22.0 22.0 22.0 22.0 Dividends 43.0 0.0 30.0 30.0 30.0 Budget support from donors 0.0 0.0 0.0 0.0 0.0

European Commission 0.0 0.0 0.0 0.0 0.0 World Bank 0.0 0.0 0.0 0.0 0.0

Project Grants 0.0 1.3 0.3 0.0 0.0 Trust fund 0.0 0.0 0.0 0.0 0.0

2. Total expenditures 1,469 1,589 1,678 1,679 1,706 Out of which: expenditures from dedicated revenues, PAK 5.8 7.0 6.6 5.4 4.4

Recurrent 945.5 1,050 1,196 1,207 1,215 Wages and salaries 417.1 483.4 550.2 551.9 553.9 Goods and Services 215.5 252.0 211.4 214.8 214.8 Subsidies and Transfers 312.9 314.1 434.6 440.6 446.6

Social transfers 288.3 292.7 413.6 419.6 436.4 Subsidies for POEs 24.6 21.4 21.0 21.0 21.0

Reserves 0.0 2.2 5.0 5.0 5.0 Lending -6.0 0.0 0.0 0.0 0.0

Out of which: loans to POEs 0.0 0.0 0.0 0.0 0.0 Out of which: refunds from POEs -6.0 0.0 0.0 0.0 0.0

Capital expenditures 529.2 530.5 460.7 450.4 470.3 Undelivered Reserves 15.8 15.8 15.8

3. Primary Balance -152.5 -131.2 -106.0 -106.0 -108.2 Payment of interest -11.5 -16.5 -17.4 -21.6 -23.1

4. General Balance (as per fiscal rule) -163.9 -110.7 -116.8 -122.2 -126.9 5. General Balance -147.7 -123.4 -127.6 -131.3 6. Financing -163.9 -147.7 -123.4 -127.6 -131.3

Foreign Financing -9.4 33.6 55.2 -5.9 -22.7 Withdrawal 4.6 55.7 82.4 54.7 32.5

Out of which: IMF 0.0 0.0 0.0 0.0 0.0 Payment of debt principal -14.0 -22.1 -27.2 -60.6 -55.3

Domestic Financing 173.3 114.1 68.2 133.5 154.0 Internal Financing 78.0 120.0 120.6 169.2 160.0 One-off financing 26.3 20.0 0.0 0.0 0.0 Changes of other financial means -1.9 -19.5 -38.1 -19.1 -10.0 Changes in OSR stock 14.5 4.0 12.0 12.0 7.4

Changes in bank balance 56.4 -10.4 -26.3 -28.6 -3.4 7. KCB Balance 159.7 170.2 196.5 225.0 228.5

Out of which: ELA 46.0 46.0 46.0 46.0 46.0 GDP 5,125 5,446 5,778 6,117 6,481 General Deficit as % of GDP -3.2% -2.0% -2.0% -2.0% -2.0% Stock of debt as % of GDP 9.3% 11.2% 13.0% 14.6% 15.7%

Out of which: warranties - 0.2% 0.2% 0.2% 0.2%

In millions of Euros

33

Table 3a Financing

2014 2015 2016 2017

Inflows 362.4 385.1 432.3 425.0

Bank balance from previous year (t-1) 159.7 170.2 196.5 225.0 External borrowing 36.2 44.3 35.6 22.5

WB Project for modernising public sector 1.2 1.0 0.0 0.0 Out of which, beneficiaries: MF 0.2 0.3 0.0 0.0

PPRC 0.0 0.6 0.0 0.0 MPA 1.0 0.2 0.0 0.0

WB Project for registering immovable property and cadastre 1.5 1.1 0.0 0.0 Out of which, beneficiaries: MESP 1.5 1.1 0.0 0.0

WB Project for rural and agriculture development 4.5 1.2 1.0 1.0 Out of which, beneficiaries:: MAFRD 4.5 1.2 1.0 1.0

WB Project for cleaning and recuperation of land for energy sector 1.4 0.4 0.0 0.0 Out of which, beneficiaries: MESP 1.4 0.4 0.0 0.0

WB Applying efficiency energy measures in public buildings 1.0 2.2 3.9 3.9 Out of which, beneficiaries: MED 1.0 2.2 3.9 5.0 Road Projects (MI) 11.6 20.1 14.7 0.0

ISDB road Millosheve-Mitrovice 3.1 9.3 3.1 0.0 OFID road Millosheve-Mitrovice 5.4 5.4 4.6 0.0

SFD road Millosheve-Mitrovice 3.1 5.4 7.0 0.0 EBRD Railway FK-HE Rehabilitation 10.0 10.0 10.0 10.0

Out of which, beneficiaries: MI 10.0 10.0 10.0 10.0 WB Health system reform 1.0 1.4 4.5 5.4

MoH- Review f Health Sector and Health Insurance data centre 1.0 1.4 4.5 5.4 Rep. Austria Cardio surgery project 2.0 2.6 0.0 0.0

MoH- Cardio surgery 2.0 2.6 0.0 0.0 Rep. Austria e-education 2.0 2.9 0.0 0.0

Out of which, beneficiaries: MEST 2.0 2.9 0 0 WB Reform in education 0.0 1.5 1.5 2.2

Out of which, beneficiaries: MEST 0.0 1.5 1.5 2.2 Loans with under-loans 19.5 38.1 19.1 10.0

KFW Improvement of network-KOSTT 0.0 11.6 0.9 0.0 KFW Supply with water and handling waste waters, phase II - Prishtina 3.0 2.1 0.0 0.0 KFW Supply with water and handling of waste water, phase III - Prishtina 3.7 6.1 2.5 0.0

IDA-WB Strengthening of financial sector and market infrastructure II 0.8 0.1 0.0 0.0 KFW Improvement of central heating system 3.9 0.0 0.0 0.0 KFW 400kV Kosovo-Albania-KOSTT 8.1 8.2 0.7 0.0

WIB Railway FK-HE Rehabilitation 0.0 10.0 10.0 10.0 Austria Railway FK-HE Rehabilitation 0.0 0.0 5.0 0.0

Internal borrowing 120.0 120.6 169.2 160.0 Securities 120.0 120.6 169.2 160.0

One-off financing 20.0 0.0 0.0 0.0 Revenues from privatisation 0.0 0.0 0.0 0.0 Revenues from liquidation 20.0 0.0 0.0 0.0 Revenues from liquidation (dedicated) 0.0 0.0 0.0 0.0

Changes in stock of own source revenues 7.0 12.0 12.0 7.4 PAK 7.0 7.0 7.0 4.4 Municipalities 0.0 5.0 5.0 3.0

Outflow 192.2 188.7 207.3 196.5

Amortisation 22.1 27.2 60.6 55.3 For internal borrowing 0.0 0.0 0.0 0.0

Securities (net payment of principal) 0.0 0.0 0.0 0.0 For external borrowing 22.1 27.2 60.6 55.3

Changes in other financial means 19.5 38.1 19.1 10.0 Loans under borrowing 19.5 38.1 19.1 10.0

Changes in stocks of owns source revenues 3.0 0.0 0.0 0.0 PAK 0.0 0.0 0.0 0.0 Municipalities 3.0 0.0 0.0 0.0

Need for financing budget deficit 147.7 123.4 127.6 131.3

Final Annual Balance 170.2 196.5 225.0 228.5

Description

34

THE ASSEMBLY OF THE REPUBLIC OF KOSOVO

Mission

The Assembly of the Republic of Kosovo, as the highest representative and legislative body in

Kosovo, has a broad scope in accordance with the Constitution and Rules of Procedure. The

Assembly of the Republic of Kosovo adopts laws, resolutions and other general acts, ratifies

international treaties, selects and supervises the work of the Government and other public

institutions that report to the Assembly, oversees foreign policy and security, and performs

other work under its scope.

Current situation

The Assembly of the Republic of Kosovo as the highest representative and legislative body

adopted a considerable number of laws and other acts under its scope. Different inter-

parliamentary cooperation activities were held during this year.

Besides the procedural work of lawmakers, the Assembly also contributed to other important

issues related to the integration of the country into different international institutions.

The achievements of the Assembly of the Republic of Kosovo are as follows:

The Assembly reviewed and amended 61 laws, 6 of them were international

agreements, it proposed 1129 amendments, oversaw the implementation of 13

applicable laws, it reviewed 30 reports of independent agencies. During the year, the

Assembly reviewed 23 decisions and proposals of the Government. The Assembly

held 405 regular meetings and minutes of meetings were drafted, it held 251 meetings

of working groups and it maintained official records, it held 58 public hearings, it

reviewed 42 audited reports, it reviewed 20 petitions.

Assembly completely finalised renovation of the annex part of the building which is

now operational and several other long-term projects are in pipeline such as the project

of ICT updating and independence,

Since 2013, 26 draft laws were reviewed only in first reading and as such were carried forward

to 2014 to be reviewed, 95 Draft laws from Legislative Programme of the Government and the

parliamentary committees for 2014, it will be monitor the implementation of law with 17

activities, 30 reports of independent agencies will be reviewed, and other technical,

administrative and procedural work will be done in support of Assembly and its bodies.

Objectives

In order to fulfil its mission, the Assembly of Kosovo plans to meet five strategic objectives:

1. Development of an efficient and comprehensive legislative process;

2. Strengthening the oversight role of the Assembly on the institutions reporting to the

Assembly;

35

3. Creating conditions for holding regular Assembly meetings with its constituents;

4. Development of professional capacities of the Assembly‟s administration;

5. Creating required space and conditions for the work of MPs and Assembly bodies.

The first objective aims at developing an efficient and comprehensive legislative process.

Activities to meet this objective are:

Developing annual work plans of parliamentary committees;

Planning the dynamics of reviewing the draft laws;

Development and approval of (supplement/amendment) of the new Rule of the

Assembly.

The second objective aims at strengthening the oversight role of Assembly against

institutions reporting to the Assembly. Activities to meet this objective are:

Oversight of law enforcement;

Oversight of Government budget spending and other budget agencies;

Oversight of Independent Institutions.

The third objective aims at creating conditions for holding regular meetings of the Assembly

with his constituents. Activities to meet this objective are:

Building up communication in relation MP-citizen;

increasing the level of transparency in the Assembly;

institutionalising cooperation between Assembly and civil society;

Public Hearings.

The fourth objective aims at developing the professional capacities of the administration

within Assembly. Activities to meet this objective are:

Cooperation with Assemblies of other countries;

Training organised by other institutions within and outside the country.

The fifth objective aims at creating the required space and conditions for the work of MPs

and Assembly bodies. Activities to meet this objective are:

Interior renovation of the building;

Modernisation of the equipment in the plenary hall and Conference halls;

Establishing data centre in the Assembly of the Republic of Kosovo;

Maintenance of premises and equipment.

36

Table 1. Background and expenditures as per basic scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Estimation

2016

Estimation

2017

Estimation

The Assembly 7,564,021 7,540,342 9,388,157 8,922,383 7,802,383 7,802,383

Total of Programmes 3,891,390 3,793,701 4,925,536 4,849,786 3,849,786 3,849,786

Members of

Parliament 3,891,390 3,793,701 4,925,536 4,849,786 3,849,786 3,849,786

The Assembly’s

Administration 3,247,280 3,319,887 4,011,796 3,628,796 3,508,796 3,508,796

Political support staff 425,351 426,754 450,825 443,801 443,801 443,801

Total of Programmes

as per economic

categories

7,564,021 7,540,342 9,388,157 8,922,383 7,802,383 7,802,383

No. of employees 318 322 338 338 338 338

Wages and Salaries 5,300,710 5,096,023 6,556,332 6,556,332 5,556,332 5,556,332

Goods and Services 1,379,748 1,562,755 1,550,825 1,318,201 1,318,201 1,318,201

Utilities 176,393 183,972 221,000 187,850 187,850 187,850

Subsidies and

Transfers 15,000 59,900 30,000 30,000 30,000 30,000

Capital Expenditures 692,170 637,692 1,030,000 830,000 710,000 710,000

Sources of Financing 7,564,021 7,540,342 9,388,157 8,922,383 7,802,383 7,802,383

Government grants 7,564,021 7,540,342 9,388,157 8,922,383 7,802,383 7,802,383

Own source revenues - - - - - -

Financing from

borrowings - - - - - -

Donor grants - - - - - -

37

OFFICE OF THE PRESIDENT

Mission

Representing the unity of the people in the Republic of Kosovo. Ensuring constitutional

functioning of Kosovo‟s institutions, established under the Constitution of the Republic of

Kosovo.

The mission of the Office of the President is to provide accurate information and impartial

professional advice to the President of the Republic in order to ensure the fulfilment of the

mission of the President as provided in the Constitution of the Republic of Kosovo.

Current Situation

During 2013, agenda of the President of the Republic of Kosovo included a considerable

number of waiting of representatives and visits of world‟s highest representatives. During the

year, President of the Republic participated in important activities worldwide.

During the year, President decreed the laws approved by the Assembly.

President of the Republic of Kosovo, in the fifth anniversary of the independence of the

Republic of Kosovo, issued a decree pardoning remaining sentence to four persons who were

serving sentences in correctional centres in the Republic of Kosovo.

With the occasion of the 7th

and 8th

of March, President awarded women known for their work

in the field of education.

An agreement for the Peace Corps programme in Kosovo is signed with the U.S. Embassy.

Further on, a Bilateral Agreement for Meeting the Millennium Development is signed with the

U.S. Ambassador in Kosovo and the representative of the USAID mission in Kosovo.

President of the Republic of Kosovo received Progress Report for 2013 from the European

Union Special Representative for Kosovo.

Objectives

Office of the President for the medium-term 2015-2017 plans to achieve these objectives:

1. Implementation of the Law on the President of the Republic of Kosovo, as well as the

functioning of the Office of the President in line with the provisions of this law as a

separate institution within the civil service;

2. Implementation of non-discriminatory policies towards the office personnel, including

equal gender representation in all areas and levels, and ensuring that the personnel

structure reflects the multiethnic character of Kosovo;

3. Implementation of the Law on the Rights of Communities and their Members in

Kosovo - full functioning of the Consultative Council for Communities.

38

Table 1 Background and expenditures as per basic scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Estimatio

n

2016

Estimatio

n

2017

Estimation

Office of the President 1,422,994 1,474,314 1,900,000 1,744,676 1,744,676 1,744,676

Total of Programmes 1,354,185 1,393,803 1,812,615 1,744,676 1,744,676 1,744,676

Office of the President 1,354,185 1,393,803 1,812,615 1,666,291 1,666,291 1,666,291

Consultative Council for

Communities 68,809 80,511 87,385 78,385 78,385 78,385

Total of Programmes as

per economic categories 1,422,994 1,474,314 1,900,000 1,744,676 1,744,676 1,744,676

No. of employees 58 54 70 70 70 70

Wages and Salaries 511,192 547,820 694,504 694,504 694,504 694,504

Goods and Services 860,743 885,013 1,013,496 861,472 861,472 861,472

Utilities 11,061 12,206 22,000 18,700 18,700 18,700

Subsidies and Transfers 39,998 29,276 70,000 70,000 70,000 70,000

Capital Expenditures - - 100,000 100,000 100,000 100,000

Sources of Financing 1,422,994 1,474,314 1,900,000 1,744,676 1,744,676 1,744,676

Government grants 1,422,994 1,474,314 1,900,000 1,744,676 1,744,676 1,744,676

Own source revenues - - - - - -

Financing from borrowings - - - - - -

Donor grants - - - - - -

39

OFFICE OF THE PRIME MINISTER

Mission

The mission of the Office of the Prime Minister is to exercise executive power in fulfilling the

programme of the Government of Kosovo, according to the function and duties set forth by

the Constitution of the Republic of Kosovo. Office of the Prime Minister manages,

coordinates and monitors institutions within the Republic of Kosovo in meeting the criteria

stemming out from the processes Kosovo is going through, and the application of laws in

force.

Current Situation

Office of the Prime Minister (OPM) operates under the organizational scheme which is

divided into agencies and offices. Agencies and offices within OPM have a defined mandate,

work standards and concrete scope of operation. Executive agencies have specific mandates

and responsibilities including special functions established under legislation.

The mandate and functions of the OPM are defined in Regulation. 02/2011 on the areas of

administrative responsibility of the Office of the Prime Minister and ministries, Regulation

no. 09/2011 on the Work of the Government of the Republic of Kosovo.

Objectives

Office of the Prime Minister of the Republic of Kosovo for the mid-term 2015-2017 plans to

meet these objectives:

1. Improving the process for policy development and coordination, strategic planning and

government-wide coordination, capacity building in the Kosovo Government for

planning, design and supervision of the legislation;

2. Enhance the integrity of the executive in fighting corruption, creating an ethical,

transparent, accountable, and non-discriminatory public administration, radiation

protection and nuclear safety, promote, respect and monitor human rights according to

international standards;

3. Creating the legal framework in the field of safeguarding animal health, their welfare,

public health and food safety, animal health protection against infectious diseases,

which threaten animal health, public health, public health protection and the economy

of the country;

4. Upgrade and restructure Kosovo Archives, protection, inventorying, classification,

processing, use and preservation of archival documents of historical and scientific

value and organization and functioning of Archive Service of the Republic of Kosovo;

5. Improve the quality of statistical information for the needs of users and integration of

statistical system into the EU system, build the information technology capacity and

improve international cooperation.

40

The first objective aims to improve the process of policy development and coordination,

strategic planning and government-wide coordination, capacity building in Kosovo

Government for planning, drafting and supervision of the legislation.

The second objective aims to increase the integrity of the executive in fighting corruption,

creating an ethical, accountable and transparent and non- discriminatory public administration,

higher security and radiation protection and nuclear safety, promotion, respecting and

monitoring human rights according to international standards. Programmes in place to meet

this objective are: Cabinet, Office of the Prime Minister, Kosovo Security Council, Agency

for Radiation Protection and Nuclear Safety, Agency for Gender Equality, etc. The activities

of these programmes to meet this objective are:

Monitoring and implementation of the law on gender equality;

Implementation of Kosovo programme against domestic violence including action

plan;

Drafting an action plan for implementation of resolution 1325;

Establishing ongoing relationships with the security institutions, monitoring and

immediate and accurate notification on the security situation in the country;

Radiation Protection and Nuclear Safety – finalising the legal framework and

approximation with international guidelines and documents (EURATOM and IAEA

documents).

The third objective aims at creating the legal framework in the field of safeguarding animal

health, their welfare, public health and food safety, animal health protection from infectious

diseases threatening animal health, public health and economy of the country. The programme

in place to meet this objective is the Food and Veterinary Agency. The activities of this

program to meet this objective are:

Establishing legal infrastructure in the field of health protection and animal welfare ,

public health and food safety;

Protection of animal health from infectious diseases threatening animal health, public

health and economy of the country;

Protection of public and plant health;

Carrying out laboratory analysis ;

Continuing with construction of Recycling Factory.

The fourth objective aims at promoting and structuring the Archives of Kosovo, through

protection, identification, classification, processing, utilisation, preservation of archival

documentation with historical and scientific value and organisation and functioning of archival

services in the Republic of Kosovo. The programme in place to meet this objective is the State

Agency of Kosovo Archives. The activities of this programme to meet this objective are:

Professional capacity building for archive processing;

Identifying and fund raising and archival collections by fund-creators and bringing

them into the agency;

Digitisation of archival material and creating electronic archives (e- archives);

Enhancing the level of utilising archived material.

41

The fifth objective aims at improving the quality of statistical information for the needs of

users and integrating statistical system into the EU system, enhancing the capacity of

information technology and improving international cooperation. The programme, which is in

place for meeting this objective, is the Statistical Agency of Kosovo. The activities of this

programme to meet this objective are:

Data collection through coordination, harmonisation and quality assurance of

statistics produced from administrative sources in the Government,

Harmonising with internationally recognised methodologies, nomenclature and

classification.

Table 1 Background and expenditures as per basic scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Estimation

2016

Estimation

2017

Estimation

Office of the Prime

Minister 8,860,111 9,051,501 12,401,512 12,010,190 11,310,190 10,810,190

Total of Programmes 8,860,111 9,051,501 12,401,512 12,010,190 11,310,190 10,810,190

Office for Communities 999,745 1,037,211 1,284,237 1,277,186 1,277,186 1,277,186

State Agency for Kosovo

Archives 579,749 576,983 612,861 583,924 583,924 583,924

Office of the Prime

Minister 1,628,015 1,422,688 1,553,949 1,434,026 1,434,026 1,434,026

Cabinet of the Prime

Minister 1,366,726 1,769,446 1,916,399 1,719,151 1,719,151 1,719,151

Agency for Gender

Equality 170,636 176,962 185,770 176,320 176,320 176,320

Kosovo Security Council 234,987 215,201 334,595 306,031 306,031 306,031

Food and Veterinary

Agency 2,873,610 2,795,735 5,240,079 5,319,655 4,619,655 4,119,655

Statistical Agency of

Kosovo 875,992 875,706 1,023,299 961,124 961,124 961,124

Language Commissioner‟s

Office 125,332 83,841 182,523 169,473 169,473 169,473

Kosovo Agency for

Radiation Protection 5,320 97,727 67,800 63,300 63,300 63,300

Total of Programmes as

per economic categories 8,860,111 9,051,501 12,401,512 12,010,190 11,310,190 10,810,190

No. of employees 542 565 642 642 642 642

Wages and Salaries 3,006,973 3,192,556 3,600,744 3,600,743 3,600,743 3,600,743

Goods and Services 2,912,787 3,136,133 3,428,970 2,914,624 2,914,625 2,914,625

Utilities 128,649 119,896 239,798 203,828 203,828 203,828

Subsidies and Transfers 1,132,285 1,173,990 1,480,000 1,480,000 1,480,000 1,480,000

Capital Expenditures 1,679,417 1,428,927 3,652,000 3,810,994 3,110,994 2,610,994

Sources of Financing 8,860,111 9,051,501 12,401,512 12,010,190 11,310,190 10,810,190

Government grants 8,831,844 8,785,285 12,019,339 11,661,859 10,961,860 10,461,860

Own source revenues 28,267 266,216 382,173 348,330 348,330 348,330

Financing from borrowings - - - - - -

Donor grants 258,253 223,891 512,992 - - -

42

THE MINISTRY OF FINANCE

Mission The mission of the Ministry of Finance is to ensure a responsible, fair and transparent

management of public funds and advise the Government of Kosovo on responsible economic,

fiscal policies. Improving the living standard for all people in Kosovo will be achieved by

supporting a safe and sound investment environment, and sustainable economic growth.

Furthermore, the development and implementation of sound macroeconomic policies and

economic cooperation will continue in cooperation with the Assembly, Ministries,

International Financial Institutions and donors.

Current situation

The Ministry of Finance is analysing and providing forecasts of macroeconomic

developments, preparation of major budget documents, economic strategy and all economic

and fiscal policies of the Government of Kosovo.

the MoF reviews and provides comments on all international financial and economic

agreements and other activities in the financial sector of the Government of Kosovo.

The Ministry - the Government has successfully concluded 20-month Stand-By program with

the IMF. Fourteen bilateral negotiations with the German Government resulted in

commitments of over 27 million Euros for development projects.

The Minister of Finance on behalf of the Republic of Kosovo signed a cooperation framework

agreement with the European Investment Bank, at the same time the first project is

implemented by the EIB supporting financially the private sector.

The Republic of Kosovo is a member of Council of Europe Development Bank, whilst the

European Bank for Reconstruction and Development signed stand-by credit lines to support

DIFK (Deposit Insurance Fund of Kosovo), it also signed the partnership agreement with the

Islamic Development Bank.

The Ministry of Finance continued cooperation with the World Bank in implementing current

projects within the portfolio.

The implementation of the Framework of Soft Loan Agreement Programme with Austria

started, and the first agreement for e-education in MEST is finalised.

The Project of emission of Securities started has successfully continued which is characterised

with higher demand than supply in each auction, and with low interest rates.

In order to maintain macro-fiscal stability, the Ministry of Finance has a key role in

sustainable collection of budget revenues, also MoF supported all policies which are in favour

of economic development.

Fiscal policies are developed in terms of business support and production in the country and in

this regard we should especially emphasise the entry into force of the law on customs

exemptions and drafting AI for the removal of VAT on diary and other agricultural products.

The Ministry of Finance has been part of the team negotiating the Free Trade Agreement with

Turkey as well as preparations for the SAA with the European Union.

Agreements of eliminating double taxation are negotiated and finalised in technical terms with

Great Britain, and finalized and signed with Slovenia, Hungary, Czech Republic and Albania.

43

Further on, we are in process of continuing negotiation with a number of other countries like

Croatia, UAE, Austria, etc.

During this year, we will develop an integrated system of information technology that

improves and facilitates the analysis of various policies for a shorter time for the Management.

In this context, together with the European Commission we will modernise TAK IT systems,

we will also work in data integration within Aid Management Platform with the Ministry of

Finance systems and further enhancing transparency infrastructure.

The Government of Kosovo adopted a strategy for combating the informal economy,

preventing the financing of terrorism, money laundering and other financial crimes. The

combat against the informal economy is a high priority of the Ministry in this and future years.

Three-year Public Private Partnership strategy is also adopted representing the main directions

of economic developments and infrastructure building without burdening public finances

working closely with the private sector in financing capital projects in different sectors.

In the legislative aspect, the Ministry prepared 15 laws which regulate important areas within

the mandate of the Ministry, it designed 5 Administrative Instructions and 2 Regulation in the

area of management of public finances.

Objectives

The Ministry of Finance plans to achieve its mission for medium-term 2015-2017 through

objectives as given below:

1. Maintain of the Macro-Fiscal sustainability by developing Sustainable Policies.

2. Meeting the standards from European Integration process in the FM field and further

development of relationships with International Financial Institutions;

3. Reducing the Informal Economy by implementing Government Programme and

Action Plan for Prevention of Informal Economy in Kosovo.

4. Development and upgrading the system for collecting and administering tax and

customs revenues.

5. Improve the quality of public expenditure management through efficient and

transparent management of public finances.

The first objective aims to maintain macro - fiscal sustainability by developing sustainable

fiscal policy. Programs that are in place to meet this objective are: Macro Department, Budget

Department, the Department of Municipal Budget, Tax Administration, Kosovo Customs,

Audit Department, Central Harmonisation Unit and Treasury. Activities of these programmes

to meet this objective are:

Prepare a sound macro-fiscal framework as a basic element for drafting the

Government budget (MF),

Streamline priority policies, structural reforms and proposed legislation to sound

public spending planning and enhance fiscal policies to serve economic development

of the country and budgetary sustainability,

Implement criteria set out under the IMF agreement,

Manage public debt,

44

The project on assessing local fiscal system and apply new resources to enhance

financial sustainability of municipalities.

The second objective aims at meeting the standards of the European integration process in the

field of FM including further development of relations with international financial institutions.

Programmes in place to meet this objective are: the Department for European Integration and

Coordination, Department of Macro, Financial Intelligence Unit, Kosovo Customs and Tax

Administration. The activities of these programmes to meet this objective are:

Meeting the obligations arising from the agreement with the IMF and the International

Financial Institutions;

Addressing the challenges of the Feasibility Study, Visa Liberalisation Process and

sectoral meetings for Stabilisation and Association Process Dialogue (SAPD);

Implementation of the Action Plan for Negotiating SAA, obligations from the SAA

and standards in process of visa liberalisation;

Start drafting Economic and Fiscal Programme (EFP) as preparation for Pre-Accession

Economic Programme (PEP).

The third objective aims at reducing the informal economy by implementing the Government

Programme and Action Plan for Prevention of Informal Economy.

Programmes in place to meet this objective are: Department of Macro, Kosovo Customs, Tax

Administration, Financial Intelligence Unit, IT Department, Department of Administration,

Independent Review Board, Department of Budget and Treasury. The activities of these

programmes to meet this objective are:

Meet the planned revenue projections,

Decrease informal economy by promoting organisational structures, review of

legislation, coordination of activities, enhancement of cooperation between responsible

authorities, capacity building of human resources, awareness on informal economy,

upgrade IT systems and increase effectiveness of tax collection,

Building and develop systems to promote effectiveness and efficiency of revenues

collection from TAK and Customs,

End the review of all collected complains until the transformation of Independent

Review Board.

The fourth objective aims at developing and perfecting the system of collection and

administration of tax and customs revenues. Programmes in place to meet this objective are:

Department of Macro, Kosovo Customs, Tax Administration, Financial Intelligence Unit,

Department of Budget and Treasury.

The activities of these programmes to meet this objective are:

Meet revenue projections for revenues planned by MoF, aiming to ensure that by 2015

revenues are on level with expenditure and review areas for revenue increase, new

systems and procedures,

Supply of IT equipment,

Licensing and management of clients,

Call Centre (development and communication with the taxpayer) regarding the

settlement of tax obligations,

Development and application of filing (disclosure of tax returns electronically).

45

The fifth objective aims at enhancing the quality of public expenditure management through

efficient and transparent management of public finances. Programmes in place to meet this

objective are: Department of macro, Budget Department, Department of Municipal Budget,

Treasury, KBSFR Department of Internal Audit.

The activities of these programs to meet this objective are:

Preparation of annual budget proposal in accordance with applicable legislation and

best international practices

Budget execution in accordance with Treasury‟s financial rules and legislation,

Monitoring and reporting on functioning of Internal Audit System in Public Sector,

Capacity building and enhancing quality of internal audit in the Public Sector and

International Certification Programme,

Working towards the implementation of gender-responsive budgeting (GRB)

according to international practices making the effects of public spending visible on

the equality of women and men in order to contribute to the effectiveness and

transparency of public financial management. Regarding the preparations for 2015

budget, the work started on pilot projects will be further developed in coming years;

Harmonisation and updating Administrative Instructions (AI) based on International

Financial Reporting Standards ( IFRS), International Standards on Auditing (ISA) in

line with EU directives

Table 1. Background and expenditures as per basic scenario dhe politikave të reja 2015 – 2017

2012

actual

2013

actual

2014

budget

2015

Estimation

2016

Estimation

2017

Estimation

Ministry of Finance

(without new policies) 27,383,747 29,819,740 51,276,386 61,087,608 61,600,108 61,246,554

Total of Programmes 27,383,747 29,819,740 51,276,386 61,087,608 61,600,108 61,246,554

Budget Department 188,744 201,798 202,041 194,541 194,541 194,541

Department of Municipal

Budget 93,147 102,880 94,392 94,392 94,392 94,392

Department for European

Integration 30,316 30,762 30,443 30,443 30,443 30,443

Department of Economic

Policy 151,805 158,385 103,789 99,289 99,289 99,289

Internal Audit

Department 83,336 83,597 89,641 89,641 89,641 89,641

Central Harmonisation

Unit 82,692 89,414 94,504 91,995 91,995 91,995

Treasury 3,413,620 4,367,136 3,117,833 2,935,403 2,955,403 2,945,403

Administration

Services 1,631,412 4,450,979 2,155,961 2,454,661 2,279,161 2,114,161

Tax Administration 7,426,108 7,616,788 9,138,417 8,824,869 9,484,869 8,749,328

Tax collection

offices/Customs 8,130,890 8,143,509 9,781,070 8,891,243 8,899,243 9,456,230

Kosovo Reporting

Council 46,118 44,025 52,052 52,052 52,052 52,052

Independent tax review

board 78,288 156,519 155,266 155,266 155,266 155,266

Legal Office 31,265 35,820 37,521 37,521 37,521 37,521

46

Public Communication

Office 22,073 21,965 25,683 25,683 25,683 25,683

Human Rights Office 21,593 24,594 27,919 27,919 27,919 27,919

Property Tax office 83,559 97,108 98,779 98,779 98,779 98,779

PPP Department 143,917 146,731 70,226 64,075 64,075 64,075

Counselling services 732,100 179,510 300,000 255,000 255,000 255,000

Brain fund - - 1,000,000 1,000,000 1,000,000 1,000,000

IPA Co-financing 1,239,557 1,697,448 2,000,000 - - -

Deposit law 3,300,000 1,442,489 - - - -

Financial Information

Centre 330,476 334,360 351,250 330,687 330,687 330,687

Central Procurement

Agency 122,731 221,529 281,617 152,077 152,077 152,077

Energy contingence - - 6,880,000 - - -

IT Department - 102,942 112,312 108,997 108,997 108,997

Budget and Finance

Office - 51,209 54,812 52,217 52,217 52,217

Procurement Office - 18,244 20,858 20,858 20,858 20,858

Contingence for

financing former

political prisoners and

law veterans

-

15,000,000

35,000,000

35,000,000

35,000,000

Total of Programmes

as per economic

categories

27,383,747 29,819,740 51,276,386 61,087,608 61,600,108 61,246,554

No. of employees 1,597 1,602 1,704 1,704 1,704 1,704

Wages and Salaries 11,581,057 11,922,569 13,061,529 13,061,529 13,061,529 13,061,529

Goods and Services 7,629,946 7,930,388 8,285,269 7,245,819 6,970,319 6,970,319

Utilities 415,743 446,723 609,920 488,592 488,592 488,592

Subsidies and

Transfers 4,745,754 6,804,736 23,474,800 36,594,800 36,594,800 36,594,800

Capital Expenditures 3,011,247 2,715,324 5,844,868 3,696,868 4,484,868 4,131,314

Sources of Financing 27,383,747 29,819,740 51,276,386 61,087,608 61,600,108 61,246,554

Government grants 27,383,747 29,716,926 51,156,386 60,812,108 61,600,108 61,246,554

Own source revenues - - - - - -

Financing from

borrowings - 102,814 120,000 275,500 - -

Donor grants 201,427 2,545,503 199,349 199,349 199,349 199,349

Total of new policies - - 45,000,000 68,624,014 68,816,597 68,816,597

No. of employees

- - - -

Wages and Salaries

45,000,000 68,624,014 68,816,597 68,816,597

Goods and Services

- - - -

Utilities

- - - -

Subsidies and

Transfers - - - -

Capital Expenditures

- - - -

Sources of

Financing: - - 45,000,000 68,624,014 68,816,597 68,816,597

Government grants - - 45,000,000 68,624,014 68,816,597 68,816,597

Own source revenues

Financing from

borrowings

Donor grants

- -

47

Contingence for

salaries (from 2015-

contingence is planned

for central level

45,000,000

50,424,014

50,441,597

50,441,597

No. of employees

Wages and Salaries

45,000,000 50,424,014 50,441,597 50,441,597

Goods and Services

Utilities

Subsidies and

Transfers

Capital Expenditures

Sources of

Financing: - - 45,000,000 50,424,014 50,441,597 50,441,597

Government grants - - 45,000,000 50,424,014 50,441,597 50,441,597

Own source revenues

Financing from

borrowings

Donor grants

New policy:

Contingence for Health

Insurance Fund

- - - 18,200,000 18,375,000 18,375,000

No. of employees

Wages and Salaries

18,200,000 18,375,000 18,375,000

Goods and Services

Utilities

Subsidies and

Transfers

Capital Expenditures

Sources of

Financing: - - - 18,200,000 18,375,000 18,375,000

Government grants - - - 18,200,000 18,375,000 18,375,000

Own source revenues

Financing from

borrowings

Donor grants

Own source revenues

Financing from

borrowings

Donor grants

Total of basic scenario

and new policies 27,383,747 29,819,740 96,276,386 129,711,622 130,416,705 130,063,151

Number of employees 1,597 1,602 1,704 1,704 1,704 1,704

Wages and Salaries 11,581,057 11,922,569 58,061,529 81,685,543 81,878,126 81,878,126

Goods and Services 7,629,946 7,930,388 8,285,269 7,245,819 6,970,319 6,970,319

Utilities 415,743 446,723 609,920 488,592 488,592 488,592

Subsidies and Transfers 4,745,754 6,804,736 23,474,800 36,594,800 36,594,800 36,594,800

Capital Expenditures 3,011,247 2,715,324 5,844,868 3,696,868 4,484,868 4,131,314

Sources of Financing 27,383,747 29,819,740 96,276,386 129,711,622 130,416,705 130,063,151

Government grants 27,383,747 29,716,926 96,156,386 129,436,122 130,416,705 130,063,151

Own source revenues - - - - - -

Financing from

borrowings - 102,814 120,000 275,500 - -

Donor grants 201,427 2,545,503 199,349 199,349 199,349 199,349

Note: Salary Contingency concerning salary increases according to the decision of the

Government is planned in the Ministry of Finance for 2015-2017. These funds during budget

planning will be distributed through Budget organisations only for the Central level.

48

Additional funds for salary increases within Municipal Level are foreseen within

appropriations for Municipalities.

Contingency Fund for Health Insurance is planned in the Ministry of Finance for the years

2015-2017. These funds will be appropriated within budget process in Budget Organisations

paying obligations for the Fund as employers of public sector employees.

Table 2 Key Performance Indicators Program (functional

grouping of

programs)

Product

Planning, Monitoring,

Execution and

Reporting

Preparation of Budget Law for

Kosovo

Preparation of 4 financial reports

16 internal audits within the year

20 organised training for internal

auditors

Training of members of the Audit

Committee

Accurate and timely macro forecasts

52 budget organisations trained for

computerised treasury system

Budget approval within the required

timeframe according to LPFMA.

Reporting of the Minister of Finance on

revenues and expenditures of public money

before the Government and Assembly.

Improving Public Financial Management

Budget execution

Revenue collection

2,000 inspections to business

entities

270,000 customs clearance (SAD)

Collection of Tax Revenue under applicable

legislation, review of complaints in the area

of taxation

Number and timing of clearance as short as

possible

49

MINISTRY OF PUBLIC ADMINISTRATION

Mission

Public administration reform is and remains a key component of the mission of the Ministry of

Public Administration. Functionality of proper public administration, as important state

mechanism, is focused and visionary summarized in three commitments: providing effective

administrative services, execution of spending in the most economical way and administrative

organization and its work according to European standards.

Actual situation

Ministry of Public Administration (MPA) has influenced in the overall development of the

governmental institutions, continuing to work in order to provide a performance boost of

administration in serving the interests of citizens, as an ongoing goal, in order to meet the

criteria for European integration. To ensure efficient implementation of reforms, with a

medium-term view to raising system of EU funds, it has undertaken a series of actions to

implement the reform and has approved all bylaws deriving from the Law on Civil Service for

Civil Servants Salaries, and State Administration, public financial management, combating

corruption, ensuring transparency and efficient delivery of services to citizens.

During this period of time, it has become necessary provision of physical infrastructure and

electronics for efficient administration, creating the Agency for Information Society in order

to create the best possible prerequisites for an more efficient and transparent administration,

through e-Governance.

We are continuously making the accommodation of all institutions of government

administration in the respective facilities.

Activities that are underway include the development of laws and regulations set forth by

Legislative Strategy, capacity building of civil servants based on training plan for 2014, the

implementation of guide for the reform of public administration as a transitional stage and as

well the preparation strategy for Public Administration Reform, construction and renovation

of facilities, as well as advancing the state network.

Objectives

In order to accomplish its mission, the Ministry of Public Administration in the medium-term

plans to achieve these objectives:

1. The public administration reform and the creation of a non-political civil service, merit-

based, professional and well managed;

2. Creation and management of infrastructure to accommodate the Republic of Kosovo

Institutions (KRI);

3. Drafting, amendment of legislation in the field of public administration;

4. Increasing the quality of services utilizing information technology and communications;

5. Capacity building in the Civil Service to meet the tasks in the most efficient and

responsible way.

50

First objective aims to implement public administration reform and the creation of a non-

political and professional civil service. For the realization of this objective the following

activities are included:

Re-Organization of ministries and their subordinate bodies;

Finalizing the process of job classification;

Implementation of the new payment system and grading;

Implementation of the Action Plan for the Reform of Public Administration in Kosovo.

Second objective aims to create and manage the infrastructure to accommodate the

Institutions of the Republic of Kosovo. Activities for realization of this objectives are:

Renovation of government facilities;

Construction of facilities for KRI;

Hygienic and technical maintenance of KRI.

Third objective has to do with design, supplementing and amending the legislation in the

field of Public Administration. MAP plans to perform the following activities:

Re-processing of drafts that remain without approval from the subsequent year;

Amendment of 3 Laws in the field of Kosovo Civil Service and State Administration;

Drafting of the new laws (in the field of public administration);

Drafting the bylaws.

Fourth objective aims to raising the quality of services utilizing information technology and

communication (ICT). MAP plans to perform the following activities:

Revisions, additions and changes to the Strategy and Action Plan for e-Governance

2009-2017;

Project e-Governance;

Government telephone system (VOIP);

Establishment of IT resources and advancing the services;

Maintenance of ICT for KRI (Microsoft licenses, anti-virus, VPN, optical cable, etc.).

Fifth objective is aiming the training of civil servants in order to fulfill their duties

effectively. MAP plans to perform the following activities:

Coordination of trainings with partner, projects and institutions;

Production of mandatory training modules.

51

Table 1: History and expenditures according to baseline scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

evaluation

2016

evaluation

2017

evaluation

Ministry of Public

Administration 16,806,664 18,386,831 24,324,569 21,655,577 22,735,577 23,913,981

Total of programs 16,806,664 18,386,831 24,324,569 21,655,577 22,735,577 23,913,981

Department of Civil

Service

Administration

176,814 349,106 1,071,884 352,081 172,081 172,081

Department of Standards

and politics of IMNQ 10,982,678 11,919,150 15,942,577 14,186,734 15,446,734 16,675,138

Administration Services 927,874 840,717 940,133 873,539 873,539 823,539

The Information

Society Agency 4,371,373 4,927,828 5,536,255 5,412,352 5,412,352 5,412,352

Department for

registration of NGOs 108,053 84,047 107,286 106,628 106,628 106,628

Department for

Managing Public

Administration

52,205 64,876 555,189 552,999 552,999 552,999

Kosovo Institute for

Public Administration 187,667 201,107 171,245 171,244 171,244 171,244

Total of programs

according to economic

categories

16,806,664 18,386,831 24,324,569 21,655,577 22,735,577 23,913,981

No. of workers 260 254 266 266 266 266

Wages and salaries 1,670,642 1,685,434 1,782,249 1,782,249 1,782,249 1,782,249

Goods and services 3,782,904 5,274,499 5,755,449 4,892,132 4,892,132 4,892,132

Utilities 1,275,174 1,391,029 1,340,706 1,139,600 1,139,600 1,139,600

Subsidies and transfers 50,000 29,500 50,000 50,000 50,000 50,000

Capital expenditures 10,027,944 10,006,369 15,396,165 13,791,596 14,871,596 16,050,000

Sources of Financing 16,806,664 18,386,831 24,324,569 21,655,577 22,735,577 23,913,981

Government grants 16,806,664 17,962,163 23,431,569 21,475,577 22,735,577 23,913,981

OSR - - - - - -

Financing from

borrowings - 424,668 893,000 180,000 - -

Grants donors 43,776 153,526 - - - -

52

MINISTRY OF AGRICULTURE, FORESTRY AND RURAL

DEVELOPMENT

Mission

The mission of the Ministry of Agriculture, Forestry and Rural Development (MAFRD) is the

creation and implementation, actively, of policies and programs which have a quick impact on

the development of balanced economy, social and cultural environment and directly affect the

welfare of rural areas of Kosovo, also it contribute simultaneously with the acceleration of EU

integration.

Actual Situation

By Kosovo total area of 1.1 million hectares, 53% is agricultural land, while 41% is forest

land. Agriculture is an important economic sector which provides the bulk of employment in

postwar Kosovo. Kosovo's agriculture is characterized by small farms, low productivity and

insufficient level of advisory services, but despite this it contributes with 13% on GDP (gross

domestic product) of Kosovo, employs over 25% of total employment, mainly in the informal

sector and accounts for about 16% of total export value.

Approximately 62% of Kosovo's population lives in rural areas. The agricultural sector, as

such, will play an important role in providing opportunities for employment and income

generation for people living in rural areas.

Seeing the importance of development of the agricultural sector, the Kosovo Government gave

priority to increasing the funding of the sector through subsidies to farmers. This subsidy was

implemented and is being implemented by MAFRD.

From 2009 to 2013 these subsidies covered the following sectors: subsidy per head for dairy

cows and heifers, subsidies per head for sheep and goats, payments per area for wheat, fuel

subsidies for grain harvest, area payments for corn, area payments for wheat seed, payments

for sunflower surface, and subsidies for the hive bees.

In addition to these subsidies, MAFRD continued support of projects in horticulture,

greenhouses, in meat processing companies and dairy processing. Development of this sector

has helped the investment in irrigation system and construction of storage facilities for the

collection, sorting and storage of agricultural products.

All these investments have contributed to increase the interest of citizens, especially in rural

areas to be focused on the development of agriculture through cultivation of agricultural

products, which not only contributed to poverty alleviation, but also contributed to the growth

of the household income.

Priorities that the work of the Ministry is focused are in complete harmony with the strategic

planning of the Government of Kosovo and are focused on: (i) increase the ability of

competitiveness – through restructuring physical potential in the farm; (ii) advancement of

detailed economic analysis and strengthening of Advisory Services; (iii) rehabilitation of

existing irrigation systems and construction of new capacities in order to increase the yield

53

and quality of all the crops that are grown in our country; (iv) sustainable use of forest and

agricultural land; (v) support for the implementation of local development strategies, and

others. (vi) creation of a fund for natural disasters; (vii) creation of agricultural insurance.

Objectives

In order to accomplish its mission, MAFRD in the medium term plans to achieve these

objectives:

1. Increasing the sustainable development of agriculture and ensuring the appropriate level

of income of agricultural producers and sustainable production of quality food and

environmental protection,

2. Increased competitiveness in agriculture, food and forestry sector, the promotion of

development and employment opportunities and improving the quality of life in rural

areas,

3. Improving sustainable development of forests and to all of their ecological, economic and

social functions, including the conservation of biodiversity.

4. Quality management and development of the agricultural sector including policy

development, establishment of legislative and normative framework.

First objective aims sustainable development of agriculture, increase of income of

agricultural producers, sustainable production, food safety, preservation of human and animal

health, and environmental preservation.

The program 'Agricultural Policies' consists of measures which aim increased ability in

competitiveness, increased size of farms, increased production of healthy food, improving

socio-economic conditions, improvement of rural infrastructure, natural resource conservation

and biodiversity.

Ministry of Agriculture, Forestry and Rural Development through the Program for Agriculture

and Rural Development will continue to support, through direct payments, following sectors:

wheat, wheat for seed, corn, sunflower, existing vineyards, orchards, vegetables in the open

field, fruit saplings, dairy cows, sheep, goats, bees, breeding sows, laying hens.

It will also continue to expand irrigated areas through rehabilitation of primary and secondary

systems. And will continue with the consolidation of agricultural lands both these activities

will directly affect productivity growth and competitiveness in this sector.

MAFRD, in the planning period will also continue with financial support for the viticulture

sector through direct investments and payments. The primary activity in addition to growing

and expanding areas of vineyards will be cadastre management system of vineyards and wine

industry in Kosovo, Internal trade of grapes, wines and other grape and wine products, export

and import of grape, wine and other products of wine and grape and wine quality control in

two aspects: analytical and organoleptic.

Second objective aims to increase the competitiveness ability, creating new jobs, improving

living conditions in rural areas, improve standards and alignment with EU.

Rural Development Program aims at improving the quality of life in rural areas, creating a

higher level of environmental protection, conservation of biodiversity and overall wellbeing.

Third Objective aims to improve the sustainable development of forests and all of its

ecological, economic and social functions, including the conservation of biodiversity. The

program 'forestry' consists in activities providing the conditions for sustainable management

54

of forests and more functional, in accordance with the principles of protection of the

environment and functioning of forest ecosystems. All measures will be directed to the

cultivation, protection, sustainable use, conservation of forest genetic resources, infrastructure

maintenance of forests as well as protection and enforcement of fire prevention, forest pests

and diseases.

Fourth Objective aims to ensure the provision of quality management and development in the

agricultural sector including policy development, establishment of legislative and normative

framework, monitoring and evaluation of implementation of the various training programs.

Program funds 'administration and management' aim at performing professional duties,

supervisory, administrative and research in the MAFRD and its subordinate institutions.

It is also provided the management and operation of the legal records and data bases,

inspection of applications and realization of economic analysis and legislation in the field of

agriculture, rural development and forestry.

Funds for this program also aim to support communication, public information, and training of

farmers. One other important area of activity is international cooperation and implementation

of measures for adaptation of the acquis.

Table 1: History and expenditures as per basic scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Estimation

2016

Estimation

2017

Estimation

Ministry of

Agriculture, Forestry

and Rural

Development

22,423,823 22,471,367 27,170,487 60,000,000 60,000,000 60,000,000

Total of Programs 22,423,823 22,471,367 27,170,487 60,000,000 60,000,000 60,000,000

Department of Central

Administration 383,807 617,760 671,346 618,529 618,529 618,529

Department of Central

Administration - BB 1,604,658 5,028,234 4,549,622 1,221,100 1,025,100 1,025,100

Office of the Minister 159,306 158,488 184,301 184,301 184,301 184,301

Human Rights Office 20,210 25,050 26,521 24,937 24,937 24,937

Department of

Agricultural Policies

and Markets

7,743,506 7,158,241 16,346,501 32,591,212 32,787,212 32,787,212

Department of

Livestock 1,625,349 - - - - -

Forestry Agency of

Kosovo 1,845,546 1,897,002 2,341,683 2,248,597 2,248,597 2,248,597

Department of

Advisory - Technical

Services

8,231,230 554,167 780,967 590,175 590,175 590,175

Agriculture Institute of

Kosovo 280,204 513,978 933,065 917,202 917,202 917,202

Department of

Forestry 166,828 92,217 115,793 115,793 115,793 115,793

Department of Policies

and Rural

Development

262,178 88,942 109,050 20,918,693 20,918,693 20,918,693

Vine Entity of Kosovo 101,002 65,143 84,953 79,563 79,563 79,563

55

Department of

Economic Analysis

and Agricultural

Statistics

- 575,832 606,227 99,012 99,012 99,012

Agency for

Agricultural

Development

- 5,659,704 371,871 345,240 345,240 345,240

Legal Department - 36,609 48,587 45,647 45,647 45,647

Total of the Programs

based on economic

categories

22,423,823 22,471,367 27,170,487 60,000,000 60,000,000 60,000,000

Nr. Of employees 315 323 323 323 323 323

Wages and Salaries 1,607,325 1,599,359 1,939,278 1,939,278 1,939,278 1,939,279

Goods and services 2,248,485 2,678,125 3,303,554 2,808,033 2,808,033 2,808,022

Utility expenses 97,892 94,344 127,962 108,768 108,768 108,778

Subventions and

transfers 17,014,991 16,427,920 11,810,487 53,573,922 53,573,922 53,573,922

Capital expenditures 1,455,130 1,671,618 9,989,206 1,570,000 1,570,000 1,570,000

Sources of Finance: 22,423,823 22,471,367 27,188,487 60,000,000 60,000,000 60,000,000

Government grants 20,649,472 17,240,129 22,379,765 58,519,800 58,715,800 58,715,800

Own source revenues 169,693 203,004 259,100 259,100 259,100 259,100

Financing from loans 1,604,658 5,028,234 4,549,622 1,221,100 1,025,100 1,025,100

Donor grants - - - - - -

Table 2: Key Performance Indicators

Actual

2012

Actual

2013

Budget

2014

Plan

2015 Plan 2016 Plan 2017

Department of Agricultural Policies and Markets

Direct payments for wheat,

wheat seed, corn, sunflowers

(in ha)

60079 63083 66237 69,549 73026

Increase of direct payments

for cows, sheep, goats,

poultry, apiculture, saplings,

fruits

1,267,305 1,330,670 1,397,2

03 1,467,063 1,540,416

Increase of the number of

Licenses 497 500 504 529 555

Increase of the consolidated

areas (in ha) 2697 2831 2973 3122 3278

Department of Rural Development

Increase of number of jobs 0 302 604 900 1200

Increase of production 0 0 0 0 0

Increase of number of

farmers, beneficiaries of

grants

580 580 610 671 738

Increase of income per

family economy,

improvement of welfare.

18944 18944 19891 21880 24068

Increase of number of

projects in the food industry 29 30 31 35 38

56

Actual

2012

Actual

2013

Budget

2014

Plan

2015 Plan 2016 Plan 2017

Department of Forestry

Increase of drafting of legal

basis and administrative

instructions (harmonize with

acquis)

20% 25% 25%

Permanent monitoring of

surfaces 10% 10% 10%

Forestry Agency of Kosovo

Increase controls with aim to

prevent illegal woodcutting

and other illegal activities in

the Forestry Sector for 5 %

1064 1260 1323 1390 1460 1531

Increase the forested surfaces

of degraded forests,

(forestation and maintenance

of forest areas)

683 761 710 710 710 710

Annual increase of forests –

increase of quality wood

mass (in m3/ha)

3.3 3 3.3 3 3.3 3.3 3.3 3.3

Increase of sanitary cuts 34109 43,702 22,621 23,752 24,940 26,187

Impact of education on

protection of forests from fire

and illegal cuts.

Agency for Agriculture Development

Number of Applications for

Direct Payments –Subvention

(expected increase of

requests for 5 %)

19200 26000 27300 28665 30100 31600

Number of Applications for

Projects of Rural

Development - Grants

1450 3900 4100 4300 4515 4740

Number of field controls, for

Direct Payments and Projects

of Rural Development

12970 13765 14490 15252 16055 16900

Department of Economic Analysis and Agricultural Statistics

Increase of collection of

analysis of data, which serve

as basis for decisions.

designs of agricultural

policies

- - 5% 5% 5% 5%

Increase of the number of

researches - - 5% 10% 10% 10%

Increase of the number of

databases and registries 400 520 676 878 1142

Operational Registries–more

than 95 % of security of the

registries

Department of Advisory – Technical Services

Increase of the capacities of

the advisors 500 600 700 700 700

Training and advising of

farmers – education 9500 12000 20000 25000 25000

57

Actual

2012

Actual

2013

Budget

2014

Plan

2015 Plan 2016 Plan 2017

Preparation of the materials

for extension 50000 50000 60000 60000 60000

Number of advises in the

advisory centers has

increased

3500 3500 4000 5000 5000

Kosovo Agricultural Institute

Increase of the level of

laboratory services - - -

Increase of food quality -

Increase of researches in the

Institute

Kosovo Vine Entity

Increase of the control of the

vine quality - 10% 10% 10% 10%

Increase of vine export (basis

for 2014 is 8,000,000 Euro) 20% 20% 20%

Central Administration

Increase of legal basis aiming

to harmonize with the Acquis - 10% 15% 20% 25%

Increase of the number of

contracts, agreements,

projects with the aim of EU

integration

Increase of efficiency of

management and

development of the

agriculture sector, including

development of policies and

normative frameworks

Increase of maintenance of

registries as databases for

implementation of agriculture

policies and policies for rural

development

Timely implementation of

normative programs of the

Government

Professional and legal

improvement of the

implementing procedures for

human resources

management

58

MINISTRY OF TRADE AND INDUSTRY

Mission

The mission of the Ministry of Trade and Industry (MTI) is the creation of conditions for

development of systemic policy on trade and industry. In particular, the Ministry develops

policies, drafts legislation and programs in support of: investment promotion and export

potential; tourism promotion; advancement of quality infrastructure; market surveillance and

consumer protection as well as further development of trade policy.

Actual situation

MTI has made progress in all areas of responsibility, as in the implementation of existing

programs, as well as in the design of new programs. Progress has been made, starting from

improving the environment of doing business ranking in the top 10 most reformist countries in

the world, then it was worked in the investment and export promotion; supporting the

development of SMEs; advancing trade policies and coordination mechanisms; improvement

of quality infrastructure; protection of industrial and the consumer property; and advancement

in market surveillance.

Considering the importance of the preparation process of negotiating for Stabilization and

Association Agreement as one of the most important processes through which Kosovo is

passing, MTI has been willing to precede this agenda. During 2013, the negotiation structures

of SAA were created and were formed three working groups, where MTI is responsible for the

first group, that of negotiating trade issues. Negotiating trade issues is already completed, in

this regard, we have negotiated issues such as liberalization of industrial and agricultural

products, geographical indicators, the right of establishment of businesses, trade in services,

movement of capital, and transit traffic.

During 2013, MTI has continued with regular participation in meetings of CEFTA. It was sent

a request associated with various cases of violation of this agreement to the CEFTA

Secretariat, as the case of flour quota for Kosovo in Macedonia and as a result, the quotas are

removed by Macedonia side.

Objectives

In order to achieve its mission, the Ministry of Trade and Industry in the medium-term plans

to achieve these objectives:

1. Creating a favourable climate for private investment, both local and foreign to promote

the country‟s economic and industrial revitalization;

2. Investment and Export Promotion;

3. Further development of quality infrastructure, while Advancing Metrology

laboratories, improving accreditation and increasing the number of adopted standards

(transposed) as well as their implementation;

4. Safety of industrial non-food products, through increasing consumer awareness and

improve market surveillance;

59

5. Trade Policy Development in improving the country's trade balance.

First objective “Creating a favorable climate for private investment, both local and foreign, to

promote economic and industrial revitalization”, aims to create better conditions for doing

business to local businesses as well as those foreign. Activities which will be undertaken to

achieve this objective are:

Industrial and tourism capacity building,

Supporting businesses through the provision of physical infrastructure (Business

Parks, Incubators, innovative centers, economic zones),

Training and counseling to businesses, trade fairs at home and abroad, etc.

Developing new system for facilitating the provision of business services,

Creation of modern infrastructure for the registration of facilities in industrial

property and the promotion of industrial property.

Second objective ”Investment and Export Promotion", aims at promoting the export potential

of Kosovo that would affect the improvement of the trade balance in Kosovo, organizing

businesses with the most exporting potential and participation in various fairs. Activities to be

undertaken to achieve this objective are:

Promotion of Kosovo in international mechanisms with a view to attract foreign

capital (trade fairs, conferences, workshops, etc.),

Activities in promotion of investment and exports.

Third objective ”Further development of quality infrastructure, while advancing metrology

laboratories, improving accreditation and increasing the number of adopted standards

(transposed) and also their implementation", aims raising the level of quality of local products

by applying international standards. Activities to be undertaken to achieve this objective are:

Adoption of Standards (Transposition) and supervision of the implementation of

legislation in the field of industry (infrastructure quality, technical regulations, etc.),

Procedures of accreditation procedures, evaluation and supervision of conformity

assessment bodies,

Buying standards and awareness raising in the implementation of standards,

Sampling of oil and petroleum products in order to verify the conformity

Further development of metrology, completion of existing laboratories, establishment

of new laboratories for performing metrology services.

Fourth objective ” Safety of industrial non-food products, increasing consumer awareness

and improving market surveillance", aims to raise consumer awareness through public

information, direct contacts, conferences etc. Activities to be undertaken to achieve this

objective are:

Increased activities in the field of product safety and quality of their market and

product sampling,

Supplying with products of State Reserves,

Control of strategic goods in the market, during import, export, transfer and load

related services.

60

Fifth objective: ”Trade Policy Development in improving the trade balance of the country",

intends to be achieved through these activities:

Participation and implementation of policies and recommendations derived from

CEFTA,

Activities associated with the alignment of policies with those of the World Trade

Organization,

Activities about reducing trade barriers and protection industries with export

potential.

Table 1: History and expenditures as per basic scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Estimatio

n

2016

Estimatio

n

2017

Estimation

Ministry of Trade and

Industry 4,188,779 5,332,854 5,990,989 4,233,632 4,233,632 4,233,632

Total of the Programs

Program for Economic

Development 3,237,594 3,986,152 4,700,398 3,139,441 3,139,441 3,139,441

Business Registration 111,900 170,383 156,188 106,188 106,188 106,188

Department for

Integrations - 24,441 37,196 37,196 37,196 37,196

Program of Central

Administration 839,285 1,151,878 1,097,207 950,807 950,807 950,807

Total of the Programs

per economic categories 4,188,779 5,332,854 5,990,989 4,233,632 4,233,632 4,233,632

Nr. Of employees 195 202 207 207 207 207

Wages and Salaries 1,010,312 1,107,422 1,108,608 1,108,608 1,108,608 1,108,608

Goods and services 2,499,333 2,930,994 2,293,101 1,935,744 1,935,744 1,935,744

Utility expenses 38,685 93,668 89,280 89,280 89,280 89,280

Subventions and transfers 49,950 - 1,000,000 - - -

Capital expenditures 590,499 1,200,770 1,500,000 1,100,000 1,100,000 1,100,000

Sources of Finance: 4,188,779 5,332,854 5,990,989 4,233,632 4,233,632 4,233,632

Government grants 4,188,779 5,332,854 5,990,989 4,233,632 4,233,632 4,233,632

Own source revenues - - -

-

Financing from loans - - - - - -

Donor grants - - - - - -

Table 2: Key Performance Indicators

Key Performance Indicators 2012

actual

2013 2014 2015 2016 2017

actual budget plan plan plan

Working Spaces ha 0.6 Ha 1 Ha 10 Ha 15 Ha 15 Ha 18 Ha

Inspections 1400 1500 1600 1600 1600 1600

Licenses for market regulation 290 290 290 290 290 290

Conferences, fairs, workshops 133 150 180 180 190 190

Number of tested products 650 650 700 700 750 700

61

MINISTRY OF INFRASTRUCTURE

Mission

The mission of the Ministry of Infrastructure (MI) is a creation of environment for the safe,

qualitative and functional development of transportation systems and human resources in

order to ensure quality and sustainable services, ecological environment, economic growth and

international integration.

Actual situation

Over the past year, 78 km of the highway are released for use on the project of Morina –

Merdare Highway - segment to Besi village. Also, during the last year, 34 km of national and

regional roads and 125 km of local roads were paved.

Increasing the road traffic safety is one of the priority strategic objectives, the Ministry of

Infrastructure has undertaken a series of actions and measures to achieve this objective. As a

result of the implementation of the Law on Road Traffic Safety, and of building more

underpasses and sidewalks, improving horizontal and vertical signaling, implementation of

legal and sub-legal acts, the number of fatal accidents has decreased compared to last year.

The railway network consists of about 334 km of railway. Much of the track is in good

condition. However, this sector needs new investments, particularly in maintenance and

modernization of the existing network. Freight transport has increased in recent years and is

expected to grow even more.

Kosovo has its Pristina International Airport that operates with combined civil and military

services. In April 2010 came into force the PPP contract between the Government of the

Republic of Kosovo and Turkish Consortium - French Limak- Aeroport de Lyon for the

concession of Pristina International Airport, and this is one of the successful examples of

concession projects in Eastern Europe. The new terminal, which was inaugurated on 23

October 2013, is an investment of around 100 million euros and offers more convenience for

travelers, high-level services, as well as enough space and a relaxed social environment for

passengers. The new terminal has 44,000 m2 and capacity that enables the reception of around

4 million passengers annually, which makes PIA absolute leader in the region for the terminal

areas as well as from the control tower, while it transforms Pristina and Kosovo in the

connecting point and regional aviation center - the strategic purpose of the Kosovo

government.

Objectives

1. Integration into the pan European corridors, improvement, development and

maintenance of transport infrastructure and infrastructure in line with European

standards;

2. Creating a favorable and safe regulatory environment for maximizing and raising the

quality of services in the field of transport;

3. Improving traffic safety, and environmental protection.

These strategic objectives are realized through the accomplishment of specific objectives,

62

where each objective has action plan and measures to be executed. Below, each of these three

objectives is analyzed into specific activities.

First objective ” Integration into the pan European corridors, improvement, development and

maintenance of transport infrastructure and infrastructure in accordance with European

standards", aims to have faster and easier access to European corridors (corridor VIII and X)

that would allow circulation of people and goods with a lower financial cost.

Programs that are in function of the realization of this objective are the Road Infrastructure

Program and the Department of Railway Transport. The activities of these programs to

achieve this objective are:

Continuation Maintenance of segments (1-9) Morine - Merdar Highway (R7);

Construction of the priority segments of Pristina - Han Elezi highway (R6) in order to

connect to Corridor VIII of Southeastern Europe;

Quality summer and winter maintenance of all national and regional roads;

Continuing the expansion project of national roads Prishtina - Peja (M9) and Pristina -

Mitrovica (M2);

Construction and reconstruction of national and regional roads;

Railroad Rehabilitation of line 10 (Leshak – Elez han).

Second Objective “Creating a favorable and safe regulatory environment for maximizing and

raising the quality of services in the field of transport" aims raising the level of transport

services (road, rail) for travelers as well as for goods. Programs which are in function to meet

this objective are: Department of Road Transport and Vehicle Department. The activities of

these programs to achieve this objective are:

Subsidizing land transport of travelers;

Trainings for inspectors of road transport infrastructure, technical controls and driving

schools; Installation of cameras, creation of database for drivers licenses (connection of seven

centers in the database);

Kosovo‟s Membership in international organizations dealing with transport sector.

Third objective “Improving traffic safety and environmental protection" aims raising the

level of safety for all traffic participants.

Programs which are in function to meet this objective are: Road Infrastructure, Directorate of

Security Council of Road Traffic, Department of Vehicle, Inspectorate Department. The

activities of these programs in order to achieve this objective are:

Providing railroad crossings through the installation of horizontal and vertical

signalization;

Improved horizontal and vertical signalization and elimination of black spots on

national and regional roads of Kosovo;

Design brochures, campaign development;

Mobile technical controls;

Implementation of the law on traffic safety.

63

Table 1: History and expenditures as per basic scenario 2015-2017

2012 actual 2013 actual 2014 budget

2015

Estimation

2016

Estimation

2017

Estimation

Ministry of

Road

Infrastructure

280,049,596 265,158,775 200,860,500 179,990,862 177,860,862 170,435,690

Total of

Programs

Program Road

Infrastructure 276,381,655 261,549,452 186,758,703 166,039,065 163,909,065 156,483,893

Program of the

Vehicles 606,495 659,167 788,070 638,070 638,070 638,070

Program of

RAS

Transport

29,264 32,011 36,768 36,768 36,768 36,768

Program of

Inspectorate 153,241 147,818 212,317 212,317 212,317 212,317

Program of

Road

Transport

1,932,052 1,729,491 11,931,226 11,931,226 11,931,226 11,931,226

Program of

Central

Administration

946,889 1,040,836 1,133,416 1,133,416 1,133,416 1,133,416

Total of

Programs as

per economic

categories

280,049,596 265,158,775 200,860,500 179,990,862 177,860,862 170,435,690

Nr. Of

employees 266 266 266 266 266 266

Wages and

Salaries 1,238,082 1,239,499 1,283,930 1,283,930 1,283,930 1,283,930

Goods and

services 7,356,934 6,775,635 7,792,394 6,592,756 6,592,756 6,592,756

Utility expenses 180,959 146,920 205,190 205,190 205,190 205,190

Subventions

and transfers 1,865,828 1,655,570 1,853,814 1,853,814 1,853,814 1,853,814

Capital

expenditures 269,407,793 255,341,151 189,725,172 170,055,172 167,925,172 160,500,000

Sources of

Finance: 280,049,596 265,158,775 200,860,500 179,990,862 177,860,862 170,435,690

Government

grants 280,049,596 265,158,775 179,260,500 149,890,862 153,160,862 160,435,690

Own source

revenues

Financing from

loans - - 21,600,000 30,100,000 24,700,000 10,000,000

Donor grants - - - - - -

64

Table 2: Key Performance Indicators

Key Performance Indicators 2012

actual

2013 2014 2015 2016 2017

actual budget plan plan plan

Road Infrastructure

Products

Kilometer of Road – maintained

and with signalization 1,925 1,925 1,925 1,925 1,925 1,925

Kilometer of asphalted Road – local

and regional 23 34 25 64 65 48

Kilometer – Construction of the

Motorway 38 22 8 10 10 10

Program of the inspectorate

Products

Inspections 2,400 2,500 2,700 2,800 3,000 3,000

Program of the Road Transport

Products

Licensing of the transport of

passengers and goods

400 410 400 450 500 500

Results

Increase of the road safety 10% 11% 13% 14% 15% 15%

Increase of the road life 4 years 4 years 5 years 5 years 6 years 6 years

Decrease of the travelling time 30‟ 45‟ 1 h 1h 1h 1h

Decrease of the fuel expenditures 10% 12% 14% 14% 14% 14

Decrease of the number of

accidents 5 % 6 % 8% 9 % 9% 10%

65

MINISTRY OF HEALTH

Mission

The mission of the Ministry of Health (MH) is to improve the health status of the population

through: promotion of healthy ways of living; increased accountability of citizens, health

professionals and society in general, for health; improved management of available

professional resources; and providing quality services with easy access, effective - cost and

equitable.

Actual situation

The current situation in the health sector is characterized by significant achievements in

various fields but also considerable difficulties in providing adequate volume and quality of

health services.

The health sector has entered the initial stage of reform changes based on legal infrastructure

resulting from the health law. Kosovo Chamber of Doctors was established and started

functioning, and the constitution of Chambers of Pharmacists, Dentists and Nurses is in the

process.

With Health Law is established as well Health Financing Agency (HFA) as the forerunner of

the Health Insurance Fund, which is building its operational capacities with the help of World

Bank support project which is expected to be strengthened with the next five-year project of

World Bank, to support health sector reform.

With the law on tobacco control it was given an extremely important contribution to public

health.

With the law on health insurance in the following years, it is foreseen to establish the

envisaged compulsory public health insurance scheme for the employee and employer.

The productivity within the health services is low, efficiency needs to be improved, especially

related to the introduction of modern methods of treatment such as day outpatient and home

care, especially regarding hospital infections, the use of clinical guidelines and protocols as

well as the way of treatment, where the patient should be in the spotlight by providing warmer

therapeutic relationship and long enough time for clinical examinations.

There are positive features of healthy living styles with low risk factors regarding alcohol use,

risk factors for HIV / AIDS and Tuberculosis, as well as with the high degree of

immunization. In general, the population is satisfied with the services offered to them through

the network of public and private health institutions.

Kosovo Health system has at disposal, with relatively sufficient infrastructure capacities to

provide services to the public, except for emergency services in the UCC, which are below the

necessary minimum conditions.

Unfavorable socio-economic factors (poverty and unemployment), environmental factors

(high prevalence of respiratory diseases), and the high rate of accidents and traffic accidents

are conditioning specific difficulties in terms of longevity. Still high rates of diseases related

to perinatal conditions are worrying, considering the fact that most women are of reproductive

age.

66

Objectives

Based on the Strategy for the Health Sector 2014-2020, three strategic objectives have been

defined for the MEF period 2015-2017, further defined in the document.

1. Prevention of diseases, disorders and injuries;

2. Universal access to quality health services and equality in their use;

3. Integrated efficient and effective health service.

First Objective: Prevention of diseases, disorders and injuries through the promotion of

healthy ways of living and increasing the responsibility of citizens, health professionals, and

society in general related to health. Main activities for achieving this objective are:

Campaigns of early detection of: breast cancer, cervical cancer and colon-rectal

cancer; and fetal genetic malformations;

Cross-sectors and inter-disciplinary coordination;

Implementation of existing legal provisions and international standards of quality and

safety of health services.

The second objective: "Universal access to quality health services and equality in their use."

To achieve this objective, the following activities will be undertaken:

Full functioning health financing Agency (heat) and the establishment of the Health

Insurance Fund (HIF) in 2016, with a gradual increase its capacity by 2020;

Putting into function the Health Information System (HIS) with the support of key

development partners (e.g. Government of Luxembourg);

Development of a List of primary health care services in accordance with the health

needs of the population and available budget options;

Establishment of a payment system that will promote innovation and reward

performance, quality and effectiveness, and that will ensure the purchase of health care

services in accordance with the needs of the population, while supporting health care

providers in all forms of ownership.

The third objective: "Integrated efficient and effective health service". To achieve this

objective, the following activities will be undertaken:

Strengthen professional lines of services with new powers;

Implement projects of public - private partnership in HCUKS.

Table 1: History and expenditures as per basic scenario 2015-2017

2012 actual 2013 actual 2014 budget 2015

Estimate

2016

Estimate

2017

Estimate

Ministry of Health 87,276,484 99,059,787 114,707,482 104,663,996 104,663,996 106,543,996

Secondary and

Tertiary health care

(HCUKS)

56,196,192 57,481,937 88,040,043 80,806,343 79,006,343 79,006,343

Primary care

services 60,000 145,062 553,044 486,482 686,482 686,482

Central

Pharmaceutical

Program

18,213,118 21,153,118 4,318,232 3,670,798 3,670,798 3,670,798

Public Health 2,158,749 3,418,987 2,398,240 2,294,218 2,294,218 2,294,218

67

Program

Contracting and

monitoring of the

quality of the health

services

2,061,498 7,639,560 6,279,386 2,798,411 2,798,411 2,798,411

Central Support for

the Health Care

Program

6,931,838 6,541,539 8,693,722 7,122,004 8,322,004 8,322,004

Regulation of the

Pharmaceutical

market

666,526 1,398,967 1,328,574 1,207,002 1,207,002 1,207,002

Central

Administration

Services

988,563 1,280,617 3,096,241 6,278,738 6,678,738 8,558,738

Total of the

Program as per

economic

categories

87,276,484 99,059,787 114,707,482 104,663,996 104,663,996 106,543,996

Nr. Of employees 7,265 7,587 7,758 7,758 7,758 7,758

Wages and Salaries 42,519,529 44,374,244 45,033,969 45,033,969 45,033,969 45,033,969

Goods and services 29,157,115 38,073,042 42,463,572 36,094,338 36,094,338 36,094,338

Utility expenses 3,871,062 3,388,643 4,506,216 3,831,964 3,831,964 3,831,964

Subventions and

transfers 2,841,184 4,763,603 4,703,725 1,703,725 1,703,725 1,703,725

Capital

expenditures 8,887,594 8,460,255 18,000,000 18,000,000 18,000,000 19,880,000

Sources of

Finance: 87,276,486 99,059,787 114,707,482 104,663,996 104,663,996 106,543,996

Government grants 82,583,113 95,373,804 107,757,383 96,713,897 96,,213,897 97,193,897

Own source

revenues 4,693,373 3,685,983 3,950,099 3,950,099 3,950,099 3,950,099

Financing from

loans - - 3,000,000 4,000,000 4,500,000 5,400,000

Donor grants - - - - -

Table 2: Key Performance Indicators

2012 2013 2014 2015 2016 2017

actual actual budget Estimate Estimate Estimate

Secondary and Tertiary health care services (program code 206085)

Number of staff

Average hospitalization time

(AHT) 18 19 19 19 19 20

Total number of beds 1,097 3,089 3,208 3,258 3,248 3,248

Total number of days with beds 981,603 956,996 1,012,975 1,038,43

7 1,038,844 1,038,844

Scale of use of beds (%) 62 63 68 74 76 207

Number of released patients 136,471 141,784 147,938 159,033 170,127 170,127

Ratio patient / staff 95 100 99 102 105 71

Total cost for released patient

(EUR)

Primary health care services (program code 206086)

Number of staff

68

Number of offered trainings related

to PHC

30 33 12 7

Number of drafted methodological

materials

Number of drafted regulative acts /

legislation 30 25 3 3

Number of activities for

monitoring and reporting of the

health care system

Number of analytical monitoring

and drafted reports for the MH per

annum

Indicator 6

Central Support for the health care programs (program code 206087)

Number of staff

5361 5390 5412 5470

Progress of placement of the

Health Information System (in %

for every year, 100% = HIS

established and in function)

Number of health inspection

activities per annum

Average cost of one health

inspection (in EUR)

General number of prisoners

treated in prisons

Average cost of one patient in a

prison (in EUR) 38278 44,056 45,000 46,000 47,000 50,000

Number of offered professional

development programs / % of

health staff covered by the general

health staff in the sector

0.5 E/d 0.5 E/d 0.5 E/d 0.5 E/d 0.5 E/d 0.5 E/d

Indicator 5

Contracting and monitoring of the quality of health care services (program code 206088)

Number of staff 7 7 7 24 50 75

Number of patients financed as

part of the program for treatment

out of public health institutions

583 627 650 650 650 650

Number of patients financed as

part of the program for treatment

out of public health institutions

100 100 100

Average cost for one patient within

the program for treatment out of

country (in EUR)

4758.58 6708.67 Depends from the funds at disposal (Special Program

for treatment of children with leukemia and cancer)

Number of signed and managed

hospital contracts 9 9 9 9 9

Number of hospital monitoring

activities finalized within a year 9 18 18 32 32

Number of drafted regulations and

normative acts 6 5 5 5 5 5

Centralized Pharmaceutical Program (program code 206089)

Supply with medicaments for the

Institutions of Primary Health level 2,100,000

2,100,00

0 2,100,000 2,100,000

Supply with consumables for the

Institutions of Primary Health level 620,232 620,232 620,232 620,232

Treatment of hemorrhagic fever

200,000 200,000 200,000 200,000

Vaccines based on indications

500,000 500,000 500,000 500,000

UNICEF Vaccines

100,000 100,000 100,000 100,000

Multiple Sclerosis

500,000 500,000 500,000 500,000

69

Treatment of Gaucher Syndrome

290,000 290,000 290,000 290,000

ARV Therapy

8,000 8,000 8,000 8,000

Public Health Programs (program code 206090)

Number of staff 292 292 302 306 308 310

Number of finished sanitary

inspections 13,618 13,640 14,600 14,900 15,000 15,550

Average cost of one sanitary

inspection 16 16 16 16 16 16

Number of drafted regulations and

normative acts 5 5 5 5 5 5

Number of aimed vaccine

population 65,654 69,800 70,000 70,000 70,000 70,000

Number of campaigns / raising of

public awareness for prophylactic

health care that are organized

7 7 7 7 7 7

Regulation of the Pharmaceutical Market (program code 206091)

Number of staff

Number of issued licenses per

annum 1,440 1,440 1,440 1,440 1,440 1,440

Number of inspection cases per

annum 200 200 200 200 200 200

Level (efficiency) of inspections /

employees 4,056 4,056 4,056 4,056 4,056 4,056

Pharmaceutical licenses issued per

annum 75 75 75 75 75 75

Average expenditure for inspection

(Euro)

Support of the Central Administration (program code 206092)

Number of staff in the MH /

Number of staff in the Ministers‟

Cabinet

122 155 155 155

Number of drafted regulations and

normative acts 37 37 37 37

Number of PIP-projects managed

through the year 1 2 2 2 2

70

MINISTRY OF CULTURE, YOUTH AND SPORTS

Mission

The mission of Ministry of Culture, Youth and Sports (MCYS) is to create and develop

policies, environment and appropriate mechanisms for promotion of cultural activities,

promotion, preservation and protection of cultural heritage, empowerment and participation of

youth in governance and creativity, development and promotion of Kosovo sports in the

country and in the international arena, as well as to promote and protect copyright and related

rights.

Current situation

The Ministry of Culture, Youth and Sports, has been and is highly committed in meeting its

objectives. Within each respective policy departments in MCYS, the following achievements

were noticed:

In the field of culture we managed to promote legal infrastructure, promotion of our

cultural scene in the major cultural events in the world such as: the Venice Biennale,

the exhibition of Contemporary Art at the Cannes Film Festival, Berlinale Film

Festival and we managed to sign various cooperation agreements.

In the field of cultural heritage we continued with preservation, protection and

promotion of cultural heritage, investing in preventive interventions of 32 assets,

implementation of 21 projects for digging, including rescue character, design

feasibility study for natural and cultural tourism, valorisation and inventorying

Provisional List of cultural Heritage of 1,181assets.

In sports, we continued with the construction of sports halls in Drenas, Istog ,

Rahovec, Obiliq, Shtime, Decan, Skenderaj, Dardane, Kline and Kacanik. Extension of

the project for multifunctional sports co-financed by the IPA in Mitrovica, renovation

of some existing facilities gyms and stadiums, construction of sports ranges in many

schools of Kosovo and completion of works in Stadium “Adem Jashari” in Mitrovica.

FIFA allowed Kosovo to play international friendly matches in football and basketball.

With the aim of empowering youth and strengthening of institutional mechanisms, we

managed to consolidate the Central Council of Action for Youth, continuing with

establishment of the Local Youth Action, networking support and cooperation of

young people in region and European youth activities and we started supporting young

entrepreneurs, by allocating grants.

In context of the developing copyright, we managed to finalise legal infrastructure and

adopt regulations in this area and the beginning of their implementation, we created the

Task Force for combating piracy and counterfeiting, etc.

Objectives

1. Supporting public institutions of culture, supporting independent culture and advance

cultural diplomacy;

2. Preserve, protect and promote cultural heritage;

3. Develop and enhance quality sports, massive adoption and internationalization of

sports, upgrade of sport infrastructure;

71

4. Empowerment and integration of young people in decision-making and policy-making;

5. Strengthening the system of copyright and related rights.

To achieve the first objective -Supporting public institutions of culture, supporting

independent culture and advance cultural diplomacy- the following actions will be undertaken:

Supporting cultural institutions in their cultural creativity such as: theatre,

music, film, visible-art, books

Encourage and support cultural works and creativity of public cultural

institutions, independent cultural organizations and advancing cultural

diplomacy.

To achieve the second objective -Preserve, protect and promote the cultural heritage- MCYS

plans undertake the following actions:

Preservation, protection, research and presentation of cultural heritage,

renovation, restoration, conservation of monument of cultural heritage and

establishment and functioning of the Cultural Heritage Inspectorate.

Subsidising scientific research and presentations in field of cultural heritage

To achieve the third objective Develop and enhance quality sports, massive adoption and

internationalization of sports, upgrade of sport infrastructure, the following actions will be

undertaken:

Improvement of sports infrastructure, construction and renovations of sports

halls, football stadiums school ranges, and construction of national stadium

Supporting the activities of the Kosovo Olympic Committee, the sports

federations, as well as massive adoption and internationalization of sports.

To achieve the fourth objective Empowerment and integration of young people in decision-

making and policy-making, the following actions will be undertaken:

Development of informal education program, entrepreneurship program,

implementation of traditional activities, subsidising youth organisations,

continue cooperation with international organizations, strengthening the role of

youth in public life and in decision-making

Improve of infrastructure for developing youth activities.

To achieve the fifth objective, strengthening the system of copyright and related rights, the

following actions will be undertaken

Implementation of the Anti-piracy and Counterfeiting Strategy,

Promotion of copyright and related rights,

Develop and adopt bylaws under the Law on Copyright and cooperation with local and

international intellectual property institutions and associations for collective

administration of rights;

Membership into World Intellectual Property Organisation and the signing of

international agreements.

72

Table1. Background and expenditures as per basic scenario and new policies 2015 – 2017

2012 actual

2013

actual

2014

budget 2015 plan 2016 plan 2017 plan

Ministry of

Culture, Youth and

Sports

16,319,669 14,369,183 20,115,174 21,597,075 22,547,075 22,547,075

Programme- Central

Administration 993,637 1,164,103 1,305,517 1,179,007 1,179,007 1,179,007

Sport Programme 8,411,160 6,020,761 8,584,174 10,328,295 11,278,295 11,278,295

Cultural Programme 3,762,291 4,028,944 6,333,570 6,271,563 6,271,563 6,271,563

Youth Programme 697,301 790,998 2,607,124 2,451,774 2,451,774 2,451,774

Cultural heritage

Programme 2,455,280 2,364,376 1,284,789 1,366,436 1,366,436 1,366,436

Total of

Programme as per

economic

categories

16,319,669 14,369,183 20,115,174 21,597,075 22,547,075 22,547,075

No. of employees 554 569 654 654 654 654

Wages and Salaries 2,270,495 2,359,967 2,800,112 2,800,112 2,800,112 2,800,112

Goods and Services 730,623 848,420 1,074,272 917,406 917,406 917,406

Utilities 186,854 177,662 381,557 324,323 324,323 324,323

Subsidies and

Transfers 4,716,739 5,207,632 5,356,550 5,356,550 5,356,550 5,356,550

Capital expenditures 8,414,958 5,775,502 10,502,683 12,198,684 13,148,684 13,148,684

Sources of

financing 16,319,669 14,369,183 20,115,174 21,597,075 22,547,075 22,547,075

Government grants 16,297,684 14,356,009 20,072,274 21,554,175 22,504,175 22,504,175

Own source

revenues 21,985 14,036 42,900 42,900 42,900 42,900

Donors grants 566,766 1,145,248

Table 2. Key Performance Indicators

Key Performance Indicators 2012 2013 2014 2015 2016 2017

Actual Actual Budget plan plan plan

Cultural support and diplomaci

The number of domestic festivals -

theatre drama 3 4 5 6 6 7

Participation in the international

cultural arena 8 8 9 10 12 13

Playing philharmonic

performances, opera , ballet 3 3 4 5 5 5

Support the films in

cinematography 2 2 2 3 2 2

Number of exhibitions, art gallery 14 17 22 22 25 25

Cooperation within and outside

the country 10 10 12 15 20 20

73

Improving infrastructure, no. proj.

Supporting projects for book /

literary journals

3

30

4

78

4

82

5

88

5

100

6

100

Conservation, protection of

cultural heritage

Drafting development plans and

management plans

4 4 5 5 6 6

Execution of Preventive Measures

Programme projects - emergency

interventions

19 20 21 24 25 25

% of project implementation 100% 98% - - - -

Archaeological excavations and

research character - appropriate

rescue

3

4

4

3

5

5

Visits to historical monuments 10,500 11,500 15,200 16,000 16,600 20,000

Provisional list of sites under

protection

1,170 1,182 1,182 - - -

Development and promotion of

sport and its

internationalization

Construction of sports halls from

2004-2014, a total of 10 gyms 6 8 10 12 13 14

Sports federations (total) 24 27 31 33 34 36

Internationally recognized

federations 4 5 6 8 10 12

International matches , football ,

basketball , judo , boxing , karate ,

wrestling , taekwondo , tennis,

skiing , handball , matches within

the year, volleyball

60 67 78 88 95 100

Number of sports teams ( clubs ) 267 312 226 231 233 240

existing stadiums 3 5 6 7

sports Ranges, elementary,

secondary schools, 6 7 8 10 11 12

Number of projects for support of

sports 512 515 520 530 540 540

Youth empowerment and

integration of non - formal

education

The number of projects to support

youth Number of beneficiaries for

entrepreneurship

230 210

200

250

200

250

200

260

250

300

300

Subsidizing start-up business (

initial ) 17 20 20 25 30

74

MINISTRY OF EDUCATION, SCIENCE AND TECHNOLOGY

Mission

Mission of the Ministry of Education, Science and Technology (MEST) is the development,

implementation and maintenance of an effective educational system that contributes to the

social welfare of the population and is oriented for the economic development of the state, by

providing quality and equal education for all citizens, as well as support for the scientific

research at the high level and innovation in accordance with international standards.

Actual situation

Ministry of Education, Science and Technology, while implementing its Strategic Education

Plan in Kosovo 2011-2016, has continued the reform process in all levels of education.

Among the main achievements that characterize the year of 2013 are:

The Program for Pre-university education covers the pre-school and pre-primary levels, the

primary and lower secondary level (grades 1-9), the upper secondary level (grades 10-12), as

well as education of children with special needs. During 2013, these activities were

performed: Core Curriculum Pilot in 10 pilot schools in three levels of pre-university

education, the textbooks for the third level Albanian students in the diaspora have been

compiled and published. Publication of textbooks in minority languages, such as: History for

9th grade, Civic and intercultural education for grade 6; in preparation process are the

textbooks of music education for grades 5 and 6, while the textbooks of music education for

grades 7 and 8 in Bosnian language are in the evaluation process. Also, we have republished

the Albanian language 1 textbook for students of non-Albanian communities of the 3rd

grade

of compulsory education, and we have also delivered scholarships for pupils and students

from Roma, Ashkali and Egyptian communities (30 scholarships for high school pupils, and

16 scholarships for students).

During 2013, MEST has licensed 20,530 teachers; in cooperation with UP 1900 teachers were

involved in various training programs, while in collaboration with various organizations /

development partners (European Commission through IPA 2009 projects, GIZ, USAID/BEP)

we have included more than 11,000 teachers; the Higher Council of the Ministry has

accredited 13 training programs and 5 local NGOs 5.

During 2013, 8 school buildings were built, of which 4 were primary and lower secondary

schools and 4 were secondary schools with a total of 42.560 m², with the investment value

totaling € 12,890,929. All these educational facilities are equipped with the necessary

inventory. Also, we are continuing to build additional 23 school buildings, while EU is

supporting construction of 7 additional annex buildings.

Strategy for the increase of comprehensive professional practice and Strategy for career

guidance have been finalized, we have developed curricula for 21 new profiles, based on labor

market demands, and we have reviewed all the existing curricula, and we have drafted the

standards of the profession for agricultural profiles. During this year, MEST has prepared

three draft-laws for Government approval, and has approved 31 administrative instructions.

In the Higher education and science program we have established three universities: the

University of Gjakova, the University of Gjilan and the University of Mitrovica; a joint

agreement between the Ministry and the University of Sheffield for the 2013-2014 academic

75

year has been signed, for distribution of 55 scholarships for Kosovar students at the bachelor,

master and doctorate (PhD) levels.

The literature of the Faculty of Medicine has been enriched with 22 titles of scientific books;

the amendments of the Law on Higher Education with administrative instructions have been

done.

11 new PhD programs have been opened at the University of Prishtina "Hasan Prishtina".

The Prishtina Summer University has been organized (mostly in English language) with an

international character ( with a total of 24 courses)

The database for the National Center for Academic Recognition and Information has been

installed, funded by the Austrian project "Higher Kos", in cooperation with MEST.

3 million Euro have been allocated for investment in the purchase of scientific books for

three years.

Funds for 18 small and large projects, 42 short-term mobility for investigations and

research, 38 scholarships for PhD, and 18 publications have been allocated.

This year, the complete package of EBSCOS has been paid (116000 book titles with full

access).

Strategy for Innovation and Transfer of Technology has been finalized.

The conference "Science Week 2013" has been held, with the participation of 500 authors

and co-authors from six different countries, as well as a book of papers presented at this

conference was published.

Objectives

Ministry of Education, Science and Technology has set the following objectives for the period

2015-2017:

1. Comprehensiveness and quality assurance in pre-university education;

2. Increase of participation and quality assurance in higher education, and the promotion of

scientific research;

3. Qualitative management and development of the education sector.

The first objective has to do with ensuring inclusive and equitable education for students in

preschool, elementary and secondary education, increase of quality for all students during the

compulsory education phase, ensuring that students who complete higher secondary education

have sufficient knowledge and skills to successfully enter the higher education, and succeed to

enter the labor market. The achieving of this objective in the program of pre-university

Education is planned to be accomplished through the following activities:

Development of curricula for all levels of pre-university education;

Further professional development of teachers, by developing appropriate accredited

programs for training of the teachers;

Implementation of the Information Management System, and its use for policy

development in education;

Improving the learning environment in schools through investments in infrastructure (such

as the elimination of three shifts, and reducing the number of students in overcrowded

classrooms);

Higher inclusion and continuous improvement of learning conditions for children with

special needs;

76

Continuous provision of equipment to professional schools with adequate resources and

learning materials.

The second objective is related to quality assurance and equal access, as well as full

involvement of all stakeholders in higher education, while ensuring that students who

complete higher education achieve necessary knowledge and skills, in line with the European

standards, in order to successfully enter the labor market. Also, this objective includes the

development of scientific research in accordance with the international standards. The

achievement of this objective of the Higher Education and Science program is planned to be

realized through the following activities:

Ongoing support of higher education and the development of capacities in new

universities;

Improving the quality of higher education;

Improving the overall educational environment in higher education institutions through

investment in physical infrastructure of the institutions;

Support of the scientific development and innovation as a support for economic

development,

Support of scientific institutes, the University Library, Accreditation Agency, and other

institutions of higher education;

To continue with the bilateral cooperation programs for benefitting from international

scholarship for bachelor, masters and doctoral (PhD) levels.

The third objective is related to the management of the education sector through

development and implementation of the legislative framework for monitoring and evaluating

different education programs. Meeting this objective of the Administration and Development

program is planned to be realized through the following activities:

Maintenance and development of the current educational system, development and

updating of educational policies, plans, programs and projects, and the development of

legal and information systems;

Development of capacities to monitor the quality of education;

Development of capacities of staff and use of ICT systems.

Table 1: History and expenditures as part of the basic scenario and new policies 2015-2017

2012

Actual

2013 2014 2015 2016 2017

Actual Budget Plan Plan Plan

Expenditures based on the MEST program

Total 45,999,309 43,388,754 50,296,252 46,618,750 40,027,228 41,329,921

Pre-University Education 3,903,591 3,824,645 4,542,976 3,516,517 3,958,472 4,730,164

High Education and

Science 7,696,662 11,101,516 15,475,463 16,556,690 18,357,853 16,988,854

Administration services 34,399,056 28,462,593 30,278,813 26,545,543 17,710,903 19,610,903

77

Expenditures based on the Economic categories

Total 45,999,309 43,388,754 50,297,252 46,618,750 40,027,228 41,329,921

Wages and salaries 5,359,362 6,615,583 10,089,035 10,260,333 10,478,333 10,502,333

Goods and services 6,811,899 8,466,437 9,956,656 9,435,232 9,511,810 10,343,503

Utility services 954,124 858,116 1,274,157 943,259 950,159 962,159

Subventions and

Transfers 2,180,504 4,635,860 3,977,404 4,189,926 3,736,926 3,771,926

Capital expenditures 30,693,420 22,812,758 25,000,000 21,790,000 15,350,000 15,750,000

Expenditures according to Source of Financing

Total 45,999,309 43,388,754 50,297,000 46,618,750 40,027,228 41,329,921

Government Grants 43,729,309 40,852,753 45,681,025 40,544,349 36,852,827 37,455,520

Own Source Revenues 2,270,000 2,536,001 2,616,227 1,674,401 1,674,401 1,674,401

Donor Grants 0 0 0 0 0 0

Loans 0 0 2,000,000 4,400,000 1,500,000 2,200,000

Number of Staff

Nr. of Staff 1,090 1,248 1,384 1,384 1,384 1,384

Proposal of new policy: Students Centre – Request for additional financing is foreseen for continuous

activities

Total

941,250 941,250 941,250

Number of employees

- - -

Wages and salaries

- - -

Goods and services

829,826 829,826 829,826

Utility expenditures

106,424 106,424 106,424

Subventions and transfers

5,000 5,000 5,000

Capital expenditures

Sources of Finance

941,250 941,250 941,250

Government grants

941,250 941,250 941,250

Own source revenues

Total of the basic

scenario and new

policies

47,560,000 40,968,478 42,271,171

Number of employees

1,384 1,384 1,384

78

Wages and salaries

10,260,333 10,478,333 10,502,333

Goods and services

10,265,058 10,341,636 11,173,329

Utility expenditures

1,049,683 1,056,583 1,068,583

Subventions and transfers

4,194,926 3,741,926 3,776,926

Capital expenditures

21,790,000 15,350,000 15,750,000

Sources of Finance

47,560,000 40,968,478 42,271,171

Government grants

41,485,599 37,794,077 38,396,770

Own source revenues

1,674,401 1,674,401 1,674,401

Loans

4,400,000 1,500,000 2,200,000

Justification: the requirement for additional funding is foreseen for ongoing activities since in

2014 and the following years, the budget is insufficient to meet the obligations towards

suppliers. Savings - as per the decision of the Government, the budget of the Student Center is

reduced for 15%, as well as the decision to reduce fees for students in amount of 50% on all

services provided by the UP, will create problems for MEST in further functions as such cuts

directly affect the revenue collection of the institutions mentioned above. There is an urgent

need for increase of funding as the space for student housing has increased. Construction of

two dormitories increase the expenditures on housing and feeding (over 800 beds), it also

creates financial implications in the amount of €941.250.

Table 2: Key performance indicators

(in 000' Euro) 2012

Actual

2013

Actual

2014

Budget

2015

Plan

2016

Plan

2017

Plan

MEST expenditures in percentage of

GDP 0.9% 0.9% 0.9% 0.8% 0.6% 0.6%

Pre-university education

Pre-school and primary education

Nr. Of children with special needs 515 515 515 515 515 515

Nr. Of teachers with special needs 130 130 130 130 130 130

Average of RNM in the education

with special needs 4.0 4.0 4.0 4.0 4.0 4.0

Average annual expenditure per child

with special needs (EUR) 3,050 3,165 3,196 3,126 3,192 3,192

Average annual operational

expenditure per student, shown in

percentage of GDP per capita

113.6% 114.9% 110.8% 103.7% 101.3% 96.9%

Other programs in pre-university education

Percentage of licensed teachers 60% 80% 90% 95% 100% 100%

Percentage of teachers that participate

in trainings 30% 20% 10% 20% 10% 10%

Presentation of curricula (levels) 3 levels per year

Nr. Of staff (EOP) inside the National

Qualifications Authority 0 0 24 24 24 24

Percentage of schools with more than

one shifts or overcrowded classes 6.7% 5.5% 4.3% 3.1% 2.5% 2.5%

Percentage of schools that need

renovation 7.6% 6.6% 6.5% 5.7% 4.7% 4.7%

79

High education and science

University

Average of annual expenditures per

student (EUR) 520 342 561 473 437 418

Average of annual operational

expenditures per student stated in

percentage of GDP per capita

19.4% 12.4% 19.5% 15.7% 13.9% 12.7%

Nr. Of students in the university 2,330 11,216 15,150 17,856 20,175 21,188

Nr. Staff 101 311 563 584 597 601

Ratio student – academic personnel 29.1 51.3 38.5 43.8 48.3 50.7

Science

Expenditures of science and

technology in percentage of GDP 0.027% 0.025% 0.034% 0.029% 0.027% 0.026%

Nr. Of science staff 115 115 115 115 115 115

Nr. Of scientific publications 0 23 20 20 20 20

Nr. Of research projects 0 100 100 100 100 100

Nr. Of short-term mobility 0 42 45 45 45 45

Nr. Of annual PhD grants 0 38 40 40 40 40

Other programs in high education

Nr. Of students in the Students Centre

on monthly accommodation 3,550 3,550 3,550 3,550 3,550 3,550

Nr. Of students in the Students Centre

on daily use of food 3,963 3,963 3,963 3,963 3,963 3,963

Nr. Of scholarships – bilateral

Agreements and USAID programs 54 69 75 110 110 110

Nr. Of staff – Accreditation Agency 4 9 9 9 9 9

Services of the administration

Nr. Of staff - Total 244 234 232 232 232 232

80

MINISTRY OF LABOUR AND SOCIAL WELFARE

Mission

Mission of the Ministry for Labour and Social Welfare (MLSW), is strengthening,

implementation and coordination of policies, laws and other instruments to provide protection

and social inclusion, creation of infrastructure for employment and vocational training, skills

and ability to provide services to all citizens in social need.

MLSW has a legal obligation to provide services through programs that are designed to help

the most vulnerable parts of the population: the elder people, poor people, and people with

disabilities, the unemployed and others who have greater need for assistance from the

government.

Current situation

Social welfare is one of the priority areas within the strategic priorities of the Government of

the Republic of Kosovo as proclaimed in the governmental program for period 2014-2016.

The government continues to support the social categories through social protection schemes

and pension. In view of this function, we have been reviewing the legal infrastructure that

enables greater support for these categories and improved targeting of beneficiaries of social

schemes. It is worthy to mention that from October 2012 we had started payment of the

children allowance to the beneficiary families in the Social Assistance Scheme, while we

increased the basic pension and disability rate for 33.3% in January 2013.

In this regard, we will work further and in all directions, including legal reform but also on the

methods and volume of support to employment and employment policies. Related to the labor

market, in order to increase the effectiveness and efficiency of training policy inputs we are

increasing our focus and work more closely with the Ministry of Education, Science and

Technology (MEST) in the context of the complete life learning strategy in form of overall

strategy within the 5 - year strategic plan for education. In addition, improving training

outcomes and inter-agency coordination is also part of the development of human capital as

part of the agenda Europe 2020.

Meanwhile, we invested efforts and will continue doing so in Economic and Social Council

(ESC), on schemes and services of social protection and pensions from the side of first pillar.

Government and MLSW are pledged to address issues of war categories, giving them the

support needed and deserved opportunities within our society.

Employment Offices (EO) have the responsibility to register the unemployed, to research

labor market and to provide information for job seekers in relation to labor market (including

labor migration opportunities), career counseling and training and to mediate for them in

relation to employment opportunities. Vocational training is provided through 8 Vocational

Training Centers (VTC) and 6 of their mobile units, but also by engaging other non-public

providers in specific cases.

MLSW trough VTC offers free trainings (based on classes and workshops) in over 30

different professions. Besides trainings offered by VTC, vocational schools offer trainings for

81

adults in various profiles offered to students. The maximum duration of the program is 3

months. Vocational schools are allowed to include participants for these programs in

accordance with the terms regulated by the MEST.

Objectives

1. The three pillar pension system, fair, functional with sustainable financial resources,

which meets the requirements of the social security rights for both men and women,

for all categories of pensions;

2. Raising the welfare and support of families, through the provision of social assistance

and social services to vulnerable categories and gender equality;

3. Increasing the employment rate for women and men and the strengthening of

vocational trainings according to labour market demand;

4. Strengthening the role of social partners in the development of socio-economic policy

of the country, improving the working conditions of workers and reduce informal

employment between women and men.

For realization of first objective “The three pillar pension system, fair, functional with

sustainable financial resources, which meets the requirements of the social security rights for

all categories of pensions”, MLSW plans to realise following activities:

Increasing the quality of services through reorganization of pension entities at the level

of Agency for implementation of pension schemes;

Harmonization of pension schemes and benefits for the realization of requirements and

benefits under the legislation and acquired rights;

Upgrading and coordinating social insurance through bilateral agreements for

achieving the realization of the rights of women and men pensioners and creating

opportunities for free movement of labour force;

Reform of the first pillar of the Pension system in Kosovo, with the aim of

consolidation, harmonization, unification and completion of pension schemes that are

funded from Budget, through the Draft Law on Pension Schemes financed by the state;

Creation of an integrated information system for all pension schemes.

For realisation of second objective “Raising the welfare and support of families, through the

provision of social assistance and social services to vulnerable categories”, MLSW plans to

realise following activities:

Financing of the social scheme and support to families who have children with

disabilities within 1-18 years old;

Payment of foster care for children without parental care and abandoned children;

Reducing poverty by providing advanced services for women and men and girls and

boys in need and particularly to the vulnerable groups;

Funding of shelters to protect victims of domestic violence and protect victims of

trafficking, through the purchase of services from NGOs in co-funding with donors;

Full functioning and strengthening of the capacities of several community shelters for

the elder population and persons with disabilities with regional coverage throughout

Kosovo;

Decentralization of social services and family services and the establishment of

mechanisms for sustainable financing;

82

Establishment and promotion of human capacities for public providers and licensed

non-governmental providers of social and family services.

For realisation of third objective “Increasing the employment rate for women and men and

the strengthening of vocational trainings according to labour market demand”, MLSW plans to

realise following activities:

Reform and modernization of Public Employment services (PES) responding to the

needs of the labour market;

Expansion of the active measures within the labour market by focusing on women and

men who have difficulties in the labour market;

Providing quality training services in accordance with labour market needs;

Providing quality trainings at vocational centres and the conditions for accreditation

until 2015 in several municipalities in Kosovo.

For realisation of fourth objective “Strengthening the role of social partners in the

development of socio-economic policy of the country, improving the working conditions of

workers and reduce informal employment”, MLSW plans to realise following activities:

Developing and strengthening the dialogue with social partners, in particular, dialogue

with organizations of employers and workers through capacity development of

structures and system of ESC functioning;

Improving the rights of workers and ensuring minimum standards of health and safety

at work, according to international standards through improvement of the legal

framework, awareness and better monitoring of the implementation of this legal

framework;

Strengthening the institutional and coordination mechanisms in order to reduce

informal employment for both women and men.

Table 1 History and expenditures as forecasted and new policies for period 2015-2017

2012

Current

2013

Current 2014 Budget

2015

Forecast

2016

Forecast

2017

Forecast

Ministry of labour and Social Welfare

Total of

programs 204,478,112 228,729,619 230,262,929 229,632,051 229,319,551 229,344,551

Pensions 160,389,305 187,857,559 188,080,211 187,830,211 187,830,211 187,933,711

Social welfare 35,355,600 35,125,306 34,559,069 34,742,069 34,367,069 34,343,569

Labour and

employment

issues

7,738,634 4,901,795 6,670,124 6,136,785 6,199,285 6,144,285

Office for

heritage issues

of TMK

86,445 87,434 92,741 71,741 71,741 71,741

Administrative

services 908,128 757,526 860,784 851,244 851,244 851,244

Total of

programs

based on

economic

categories

204,478,112

228,729,619

230,262,929

229,632,051

229,319,551

229,344,551

83

Number of

staff 930 945 944 944 944 944

Salaries and

wages 4,076,301 4,096,241 4,134,642 4,134,642 4,134,642 4,134,642

Goods and

services 2,922,866 2,633,961 2,886,932 2,468,892 2,478,892 2,498,892

Utilities costs 389,637 399,829 478,924 407,085 407,085 407,085

Subsidies and

transfers 194,828,592 219,486,687 220,262,431 220,262,431 220,262,431 220,262,431

Capital

investments 2,260,716 2,112,901 2,500,000 2,359,000 2,036,500 2,041,500

Expenditures

based on

funding

sources

204,478,112 228,729,619 230,262,929 229,632,051 229,319,551 229,344,551

Governmental

grant 204,478,112 228,729,619 230,262,929 229,632,051 229,319,551 229,344,551

Own source

revenues

Financing

from loans

Grants from

donors 135,119

158,153

Proposal of new policy: Implementing decision of government for increase of pensions for 25%.

Number of

staff - - - - - -

Salaries and

wages - - - - - -

Goods and

services - - - - - -

Utilities costs - - - - - -

Subsidies and

transfers - - - 68,500,000 73,500,000 78,500,000

Capital

investments - - - - - -

Total of new

policy 68,500,000 73,500,000 78,500,000

Governmental

grant 68,500,000 73,500,000 78,500,000

Own source

revenues

Financing

from loans

Grants from

donors -

-

Total of new

forecast and

new policy

298,132,051 302,819,551 307,844,551

Number of

staff

944

944

944

Salaries and

wages 4,134,642 4,134,642 4,134,642

Goods and

services 2,468,892 2,478,892 2,498,892

Utilities costs

407,085 407,085 407,085

Subsidies and

transfers 288,762,431 293,762,431 298,762,431

84

Capital

investments 2,359,000 2,036,500 2,041,500

Expenditures

based on

funding

sources

298,132,051 302,819,551 307,844,551

Total

298,132,051 302,819,551 307,844,551

Governmental

grant 298,132,051 302,819,552 305,844,552

Own source

revenues

Financing

from loans

Grants from

donors

Financial means in the table above includes: continuation of existing policies, the

implementation of the Government's decision to increase pensions and natural increase.

Summary of Key Performance Information

Social protection system in Kosovo, schemes, number of beneficiaries and expenditures in year 2012

# Social protection related to schemes Number of

beneficiaries in year

2012

The amount of benefits in

2012 (EUR million)

1 Basic pension contributions 147,765 111.25

2 Pensions and benefits for persons with

disabilities

21,965 15.72

3 Early retirement pensions for TMK and

TREPÇA

4,641 4.67

4 Benefits for war invalids 13,232 6.61

5 Social assistance 31,111 27.39

6 Labour Market and maternity 8,818 3.95

Main indicators on the labour market

Indicators 2009 2011

Participation in labour market (%) 48.1 36.9

Male 67.5 55.4

Female 28.8 17.8

Unemployment rate (%) 45.4 30.9

Male 40.7 28.1

Female 56.4 40

Employment rate (%) 26.4 25.6

Male 40.2 39.9

Female 12.6 10.7

Unemployment rate for youth (%) 73 55.3

Male 68.5 52

Female 81.7 63.8

Young not employed persons N/A 35.1

Male N/A 30.7

Female N/A 40.1

85

Kosovo benefits programs (pensions and social security schemes) according to MLSW

estimations cover over 300,000 persons, that means 15% of the population have access to one

of social payment schemes managed by MLSW.

86

MINISTRY OF ENVIRONMENT AND SPATIAL PLANNING

Mission

Ministry of Environment and Spatial Planning (MEST) mission is to protect environment,

waters, regulation and development of spatial planning, habitation and construction, cadastre

and expropriation at the national level. The execution of the mission shall be achieved through

the drafting and implementation of policies, strategies, programmes and projects, and the

execution of other activities in the function of a stable development.

Mission support to the stable development aims the improvement of the quality of life of

Kosovo citizens, and the generations to come. The execution of this development policy shall

be done through the integration of environment strategy with sectorial strategies and through

monitoring, information and environment reporting. All this will enable integrated

administration and stable environment; spatial planning, cadastre, as a coordination and

harmonisation mechanism of activities of different sectors in the spatial area; development of

safe and stable construction; improvement of habitation standards and quality of life.

Current situation

During 2013, Ministry of Environment and Spatial Planning continued to comply with the

legal framework through which the drafting of four (4) new draft laws and six (6) carried

forward from 2012 was planned. In this matter, during 2013, there were 6 draft laws approved.

During 2013, MEST approved 31 Administrative Instructions deriving from the Laws in

Force.

In the capacity of improvement of the situation in environment and for prevention of further

degradation, MEST has drafted and approved at the Assembly, the Strategy for the Quality of

Air 2013-2022, has drafted and approved at the Government, the Strategy on the Management

of waste 2013-2022, waste management plan 2013-2017, Environment Strategy 2013-2022

and Kosovo Environment Action Plan 2013-2017. During 2013, MEST drafted the Strategic

Document the Spatial Plan of National Park “Mali Sharr” which was approved at the

Government and was expanded for 20 more thousand hectares.

During 2013, the second Kosovo National Park was announced Park of “Bjeshkët e Nemuna”.

Decisions were issued for 16 potable water sources during 2013, in order to preserve public

healthcare and provide potable water pursuant to Law on Kosovo Waters, according to which

these sources are announced as Protected Areas.

Regarding the strengthening of the area of spatial planning, habitation and construction,

following the approval of Law no. 04/L-061 on the sale of apartments there were 1528

requests received, 31 commissions were established for the review of requests.

During 2013, six municipalities were equipped with a consent for Municipal Development

Plan (MDP) from MEST for the stable economic, social and environment development for all

Kosovo citizens.

87

During 2013, the Project Development of a unified system of addresses in the Republic of

Kosovo of the address register continued from the activities of Cadastre Agency of Kosovo.

By mean of this project, there were around 20,000 streets and 430,000 building entrances

digitalised in ARIS.

The expropriation process continued, and 37 expropriation requests of immovable properties

with national interest were received in 2013 and the compensation for 1251 properties in the

amount of €32,277,521 was executed.

During 2013, a considerable number of permits were given from the scope of activity of

environment, waters, planning and construction.

The inspectorate during inspections and monitoring of implementation of legislation has

issued 718 minutes, 59 violations and criminal offence, 62 decisions, 21 confiscation and the

implementation of the decision of the Minister for Prevallë for the destruction of buildings

without permit.

Objectives

In order to execute its mission, MEST has planned to execute the following objectives in the

midterm period:

1. Completion of the legal framework in the activity scope of MEST and its

implementation;

2. Improvement of environment situation;

3. Administration, management of water resources and functionality of Regional

Authorities of River ponds;

4. Establishment of administrative efficient system for spatial planning, habitation,

construction and cadastre in order to ensure their implementation;

5. Expropriation;

To execute the first objective “Completion of legal infrastructure of MEST activity scope”

the following activities are planned:

Drafting of laws;

Drafting of administrative instructions.

To execute second objective “ Improvement of the environment situation”, MEST has

planned the following activities:

Prevention, decrease of environment pollution and integrated access to the pollution

control;

Protection of biological diversity, natural heritage and stable use of natural resources.

To execute third objective “Administration, management of water resources and functionality

of Regional Authorities of River ponds, the following activities are planned:

Prohibition and removal of all operators from the river beds;

Prohibition of polluted water disposal and oils from commercial operators,

Treatment of sewage waters.

88

To execute fourth objective “Establishment of administrative efficient system for spatial

planning, habitation, construction and cadastre in order to ensure their implementation”,

MEST has planned the following activities:

Drafting of spatial plans and supporting documents;

Improvement of cadastre services for citizens;

Establishment of transparent system of non profitable habitation with rent in the fund

of construction of apartments with rent which are the property of state or

municipalities and to be constructed;

Drafting of technical construction rules in line with EU standards.

To execute fifth objective “Expropriation”, MEST should conduct:

Expropriation of properties for national needs.

Table 1. Background and expenditures according to basic scenario 2015 - 2017

2012

current

2013

current

2014

budget

2015

assessment

2016

assessment

2017

assessment

Ministry of

Environment and

Spatial Planning

50,338,480 45,487,230 47,785,027 27,951,847 41,652,290 41,652,290

Total of

Programmes 2,656,620 3,453,186 47,785,027 27,951,847 41,652,290 41,652,290

Human rights unit 21,619 23,672 26,101 24,300 24,300 24,300

The Environment

Department 977,181 1,090,436 2,466,197 2,443,847 2,165,847 2,443,847

Spatial Planning

Department 1,657,820 2,339,078 2,654,627 1,239,877 764,877 2,644,877

Water Source

Department 2,674,399 4,809,702 4,096,384 5,528,472 2,778,623 980,473

Habitation and

Construction

Department 481,761 382,763 1,145,243 1,135,343 1,135,343 1,135,343

Expropriation

Department 41,995,023 33,249,251 32,742,130 13,249,849 32,073,891 31,406,541

Hade village 361,101 135,058 300,000 300,000 300,000 300,000

Kosovo Agency for

Environment

Protection 566,778 534,550 875,758 1,011,358 1,011,358 831,358

Kosovo Cadastre

Agency 822,057 2,131,943 2,478,585 2,096,714 475,964 963,464

MNUNP

Department 161,561 149,560 149,560 149,560

Minister‟s Office 154,193 155,754 160,752 150,252 150,252 150,202

Central

Administration

Department 1,657,820 2,339,078 677,689 622,275 622,275 622,275

Total of

programmes per

economic

categories

50,338,480 45,487,230 47,785,026 27,951,847 41,652,289 41,652,290

No. of employees 303 293 293 293 293 293

89

Wages and

salaries 1,442,159 1,401,057 1,442,857 1,442,857 1,442,858 1,442,858

Goods and

services 1,227,113 1,260,690 1,287,008 1,093,957 1,093,957 1,093,957

Utilities 56,149 76,562 97,906 83,220 83,220 83,220

Subsidies and

transfers - -

0 0 0

Capital outlays 47,613,059 42,748,921 44,957,255 25,331,813 39,032,255 39,032,255

Sources of

financing 50,338,480 45,487,230 48,375,678 27,951,847 41,652,290 41,652,290

Government grants 50,007,529 44,236,542 44,870,026 26,453,974 41,652,289 41,652,290

Own source

revenues - -

0 0 0

Financing from

loans 330,951 1,250,688 2,915,000 1,497,873 0 0

Donators grants 793,633 592,024 590,652 456,750 0 0

Summary of key performance indicators

1. Monitoring of quality of air in Kosovo

Monitoring of quality of air in Kosovo possesses:

The monitoring network of quality of air with automatic measurement;

Laboratory of chemical analysis of air for the determination of inorganic and organic

polluters in air;

Laboratory for preparation of air samples for laboratory analysis;

Laboratory for calibration of air analysers.

The monitoring network of quality of air in Kosovo is done through 12 automatic stations

through which the 24/7 non-stop monitoring is done, and one mobile station, through which

monitoring is done as needed and required.

2. Environmental impact

116 requests for Environmental Consents were received in the period 03 January 2013 - 31

December 2013, in the sector for Assessment of Environmental Impact.

The total number of cases of AEI received during this period are 116, of them:

- 110 were reviewed,

- 06 are under the review procedure.

The total number of cases of AEI reviewed are 103, of them:

86 - Environmental consent given,

12 - Rejected,

12- additional information.

3. Protection of environment and expropriation

There were 583 inspections carried out in environment in 2013, and 233 buildings without

permit were destroyed.

2,449,124 m² are expropriated during the year 2013 .

90

MINISTRY OF COMMUNITIES AND RETURNS

Mission

Ministry of Communities and Returns (MCR) develops and runs programmes and mechanism

for equal implementation and integration with all communities and members of different

ethnicities who are currently living in Kosovo and provides for the stable return of the

displaced persons.

MCR enables the provision of better services to citizens on the issues of execution of rights

and return, be an active and a reliable partner of International community, and pays special

importance to interethnic dialogue and to activities of communities for a stable return from the

countries of the region.

Current situation

Having in mind that thousand of Kosovo citizens are displaced and are frequently living in

difficult conditions and the majority of them have found shelter in collective centres, MCR is

ensuring the economic and social stability for the returnees. MCR guarantees to all returnees

in Kosovo guarantee and free movement, access to public services, access to shelter, and

economic execution, equal education, health protection and employment possibilities through

fair access.

Objectives

To carry out its mission, MCR plans to execute the following objectives in the midterm

period:

1. Establishment of a legal basis for a democratic society, increase of confidence and

cooperation with local and international institutions;

2. Stabilization of communities through project implementation of MCR and the

increase of the number of stable returns;

3. Process of return, integration and stabilisation of communities.

First objective, ” Establishment of a legal basis for a democratic society, increase of

confidence and cooperation with local and international institutions”, is achieved through

these activities:

Strengthening of the rights of communities and ensuring the implementation of the

current law for the protection and promotion of laws on communities;

To ensure society participation and access of communities in all public services such

as; education, healthcare and social services;

Providing for equal representation of all communities in compliance with the values of

a multiethnic society.

Second objective “Stabilization of communities through project implementation of MCR and

the increase of the number of stable returns”, is achieved through these activities:

91

Provision for equal opportunities for the development of all communities;

Implementation of projects which meet the criteria for stabilisation and integration of

communities, construction of houses for the returnees, construction of apartments for

collective habitation, kindergartens and healthcare centres;

Improvement of economic conditions and integration of communities, including the

returned persons in order to promote a stable, prosperous and multi-ethnic society;

Providing for the agricultural machinery for the returnees, and material funds for

initiation of the self activity for the returnees.

Third objective “Process of return, integration and stabilisation of communities‟, is achieved

through the following activities:

Special attention is paid to the project implementation which aim at convenience of

communities both from MCR and from different donators, construction of roads, water

supply and sewage system, sports facilities and other activities, collective centres;

Ensures that the displaced persons and the potential returnees are provided with

adequate information on the conditions of return and their rights.

Table 1. Background and expenditures according to basic scenario for 2015-2017

2012

current

2013

current

2014

budget

2015

Assessment

2016

Assessment

2017

Assessment

Ministry for

Communities and

Returns

6,282,826 6,567,575 7,186,000 7,252,312 7,252,312 7,252,312

Total of programmes 6,282,826 6,567,575 7,186,000 7,252,312 7,252,312 7,252,312

Central administration

programme 1,129,211 1,337,887 1,556,000 1,252,312 1,252,312 1,252,312

The returnees

consolidated project 5,153,615 5,229,688 5,630,000 6,000,000 6,000,000 6,000,000

Total of programmes

according to economic

categories

6,282,826 6,367,575 7,186,000 7,252,312 7,252,312 7,252,312

No. of employees 104 99 99 99 99 99

Wages and salaries 490,503 506,521 526,158 526,158 526,158 526,158

Goods and services 305,224 302,921 675,544 380,000 380,000 380,000

Utilities 33,488 28,445 54,298 46,154 46,154 46,154

Subsidies and transfers 299,996 300,000 300,000 300,000 300,000 300,000

Capital outlays 5,153,615 5,229,688 5,630,000 6,000,000 6,000,000 6,000,000

Sources of financing 6,282,826 6,567,575 7,186,000 7,252,312 7,252,312 7,252,312

Government grants 6,282,826 6,567,575 7,186,000 7,252,312 7,252,312 7,252,312

Own source revenues

Donators grants 662,000 205,342 - - - -

92

Summary of key performance information

During 2012, 422 persons returned, 148 apartments and 76 houses financed by MCR were

constructed, the closure of the camp in Çesmin Llug and Camp Osterode was conducted. In

addition, during this period, MCR has supplied 301 families with construction material with

the financial amount of €1,959,042, the base of which is stabilization, reintegration of

communities and development of economic stability of minority communities.

During 2013, 102 returned families were supported with sheltering, of them, 58 were assisted

with construction of houses in different regions and 44 displaced families within the country

have been assisted with the allocation of apartments for shelter in the Municipality of

Graçanicë.

Aid with food packages and firewood is also one of the forms of aids dedicated to the

communities, the distribution of 250 m³ of firewood was made for 50 returned families and

families with difficult social conditions, as well as furniture and home appliances were

distributed for 49 families. In addition, the distribution of 198 food and hygiene packages was

made to the returned families and families with difficult social conditions.

93

MINISTRY OF LOCAL GOVERNMENT ADMINISTRATION

Mission

Mission of the Ministry of Local Government Administration is qualitative enhancing of the

local authority government in cooperation with the selected structures and municipal officers

in order to ensure responsible and effective services at the citizens‟ service.

Current situation

Ministry of Local Government Administration (MLGA) is engaged in the development of

primary and secondary legislation for the effective and efficient functioning of local self-

government. MLGA develops strategic, professional and administrative documents for the

functionality of the system, development of human and institutional capacities of human rights

and the successful and complete commitment of self competencies and competencies

delegated to municipalities.

Ministry of Local Government Administration is developing administrative mechanisms for

the monitoring of the implementation of legality, transparency, accountability and assessment

of quality of services provide by municipalities. In addition, it continues in the support of

municipalities in the construction of capacities and meeting of municipality obligations

relating to the process of European integration.

Objectives

In order to execute its mission, Ministry of Local Government Administration plans the

following objectives in the midterm period:

1. Local self government strategy 015-2025;

2. Organisation and functioning of local self-government in the municipalities in the north;

3. Promotion of local diversity in the function of socio-economic development of the

country.

First objective aims at development of local self-government strategy 2015-2025. This is to

be executed through the following activities:

Increase of economic and social stability and local structures to ensure that local policy

parameters and financial modalities will bring novelties to the development of

municipalities;

Establishment of a framework for good governance and effective regulation to ensure

democratic representation of citizens and efficient and professional administration of

municipalities;

Strengthening of institutional capacities of local self-government to achieve stable

improvement in the utilities for citizens;

Strengthening of the partnership between local government, civil society and businesses

to create an active, comprehensive and cohesive citizenship.

94

In order to execute second objective Organisation and functioning of local self-government in

the municipalities in the north, MLGA has planned to execute the following activities:

Inauguration of municipalities in accordance with election results and Kosovo laws;

Building of institutional and human capacities for the exercise of local government

competencies;

Support to municipalities in the implementation of legality during their work.

Third objective aims at promoting natural and cultural diversity in the function of

development of socio-economic development of the country. This is to be executed

through the following activities:

Use of natural and cultural inheritance for local economic development;

Inclusion of communities and civil society in the local economic development through

the use of natural and cultural inheritance.

Table 1. Background and expenditures according to basic scenario for 2015-2017

2012

current

2013

current

2014

budget

2015

assessment

2016

assessment

2017

assessment

Ministry of Local

Government

Administration 5,752,498 4,877,197 5,050,000 4,996,599 4,996,599 4,996,599

Total of Programmes 5,752,498 4,877,197 5,050,000 4,996,599 4,996,599 4,996,599

Central administration

services 5,168,957 4,877,197 5,050,000 4,996,599 4,996,599 4,996,599

Contingent expenses for

new municipalities 583,541

Total of programmes

according to economic

categories 5,752,498 4,877,197 5,050,000 4,996,599 4,996,599 4,996,599

No. of employees 118 125 141 141 141 141

Wages and salaries 696,535 666,931 756,746 756,746 756,746 756,746

Goods and services 609,059 348,159 326,005 277,104 277,104 277,104

Utilities 23,401 25,724 30,000 25,500 25,500 25,500

Subsidies and transfers 390,063 468,125 437,249 437,249 437,249 437,249

Capital outlays 4,033,440 3,368,258 3,500,000 3,500,000 3,500,000 3,500,000

Sources of financing 5,752,498 4,877,197 5,050,000 4,996,599 4,996,599 4,996,599

Government grants 5,752,498 4,877,197 5,050,000 4,996,599 4,996,599 4,996,599

Own source revenues - - - - - -

Financing from loans - - - - - -

Donators grants - - - - - -

95

MINISTRY OF ECONOMIC DEVELOPMENT

Mission

Mission of Ministry of Economic Development (MED) is to contribute to economic

development, living standard and citizens welfare, by promoting the stable development of the

energy sector with special emphasis in EE, BRE and coproduction, mine sector and electronic

communications in the Republic of Kosovo. MED will ensure stable, efficient and effective

use of energy, mineral and frequency resources in compliance with best European and

international practices. In addition, the increase of economy competition though the creation

of a favourable climate, for investment in the country, reconstruction of economy through

transformation of property, modernisation and increase of efficiency of publicly owned

enterprises in order to create a functional market economy.

Current situation

Despite the progress in the increase of capacity of transmission and distribution, supply with

electricity, increase of the efficiency in the use of mineral resources, increase of penetration of

internet which is over 52% and penetration of mobile telephony which is currently 98.4%, the

commencement of the provision of 3G technology telephony, it still remains to engage in the

improvement of current situation.

As regards to energy sector and new production capacities of energy from lignite, the activity

for identification, assessment and selection of potential investors continued for the project

implementation of TC Kosova e Re – 600 MW. The process of privatisation of Distribution

and Supply of KEK (KEDS) and the transferring of assets from KEK to Calik-Limak operator

was completed, while the monitoring of contract implementation of transaction is done by

Post Privatisation Unit within MED. In regard to the improvement of environmental

component, there were considerable investments made in the blocks of TC Kosova A units,

where the implementation of the filtering systems was done lately, hydraulic carrying over of

ash and commissioning of the compressors station in TC Kosova A.

Decommissioning process of TC Kosova A, Government of Kosovo through the decision no.

04/156 has clarified the approach relating to this process, upon which case the

decommissioning process and disassembling of nitrogenous, gasification, heating system and

accompanying facilities continued, which do not hinder the normal operation of active units

of TC Kosova A. The activity of decommission process will be based financially on European

Union funds through IPA 2014.

In addition, in the function of development of mine sector, now the work on the change of

status of Trepça has started to create all preconditions for the implementation of development

of respective programmes.

Kosovo Geology Agency has been established within MED to provide useful geo-scientific

information in the form of services, research and advices relating to national and local needs

for the development of mineral sector.

Respective developments plans have been approved in the area of BRE and EE. In the

meantime, there is an enhanced interest of private investors to invest in BRE projects, mainly

in small hydro-plants and air energy (windmills), for which the Energy Regulatory Office has

issued or is under the process of issuance of respective authorizations. In the function of

96

implementation of the EE plan, respective crediting lines have been built or are under the

function of being built supported by the donators community.

During 2013, the execution of first stage of the Project Integrated Informative System for

Economic Development has commenced, the purpose of which is to collect, maintain and

exchange the data among institutions. These data shall serve for planning, analyzing, decision-

making and creating of more qualitative reports within institutions of the Republic of Kosovo.

At the beginning of 2014, and second stage of project, the Government of Kosovo has issued a

decision for supplementing of GP with seven (7) other institutions.

Telecommunication industry comprises one of the most profitable sectors for macroeconomic

merchandisers and also serves as a catalyst of the so-called “knowledgeable economy”. This

industry serves and enables the businesses and individuals quick and global access. The

development of telecommunication serves to economic and social cohesion of our state, and to

the progress of informative society. The legal basis for the regulation of the sector has been set

forth in Law no. 04/L-109 Electronic Communications, Law no. 04/L-094 on Information

Society Services and the Document Policies of the Electronic Communications Sector –

Digital Agenda for Kosovo 2013-2020.

Regarding to the publicly owned enterprises, the focus has been on monitoring of the work of

Board of directors and the work of Central Publicly Owned enterprises (POE) in the function

of the increase of the level of public services to Kosovo citizens, the improvement of

corporative government and the increase of the asset value of POE as property of the Republic

of Kosovo and the possibility to include the private capital. MED supports POE financially for

subsidies and capital projects according to the given priorities.

Objectives

The Ministry has planned to execute its mission through the achievement of objectives given

below:

1. Creation of appropriate policies for stable economic development;

2. Creation of a legal and regulatory favourable environment for constant improvement of

the quality of services in the energy sectors, mines and telecommunications (TIK);

3. Instigation of research, stable use of mineral resources and frequency resources;

4. Secure supply with energy, by undertaking measures in the network system, in

revitalisation of current generation units in compliance with respective legislation and

construction of new capacities, services of telecommunications, through integrated

competitive market in regional systems and based on international standards;

5. Reformation and reconstruction of POEs and increase of the level of public services for

citizens.

First objective aims at creating preconditions for a stable economic development taking into

consideration the rational use of sectorial resources in order to address the challenges with

which MED is facing.

Second objective aims at creating the indispensable legal infrastructure for the stable

functioning and their services in the areas which are covered by MED.

Third objective aims at instigating investments in the area of research and use of mineral

resources closely related to harmonisation of primary and secondary legislation in this sector.

97

Whist frequency resources will be achieved with bigger penetration of these services for the

same frequencies available and the use of new innovative technologies.

Fourth objective aims at creating indispensable preconditions in the function of the increase

and development of sectors at the competency of MED with special emphasis in the area of

energy, mines and telecommunications.

Fifth objective aims at reforming and restructuring of publicly owned enterprises (POE) as

well as the involvement of private capital in public services.

The increase of the level of services is done through the increase of the operational

performance of POE and increase of supply services with potable water and other public

services.

Table 1. Background and expenditures according to scenario for 2015-2017

2012

current

2013

current

2014

budget

2015

Assessmen

t

2016

Assessmen

t

2017

Assessmen

t

Ministry of Economic

Development 41,956,042 36,780,567 30,079,640 28,075,226 29,645,373 29,645,673

Total of programmes 41,956,042 36,780,567 30,079,640 28,075,226 29,645,373 29,645,673

Central Administration 4,333,082 4,728,161 4,743,420 4,315,843 4,315,843 4,315,843

Minister‟s Office 162,849 182,075 198,536 198,536 198,536 198,536

Energy Department 596,251 489,089 509,289 375,289 325,289 325,289

Mines Department 453,257 - 70,000 80,000 150,000 150,000

Inspectorate 34,614 30,395 34,611 34,611 34,611 34,611

Energy programme

KEK-u 13,550,000 11,644,245 - - - -

Energy Import – Social

Cases 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

KOSTT Programme 3,491,100 1,677,755 - - - -

Kosovo Railways

Programme 3,261,087 - - - - -

District Heating

programme 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000 3,500,000

Water and Waste

Programme 2,538,562 3,981,959 4,657,959 1,900,000 1,650,000 1,650,000

Policy and Monitoring

Unit 889,325 521,266 523,307 223,307 223,307 223,307

Trainkos - 1,500,000 1,738,842 1,738,842 1,738,842 1,738,842

Infrakos - 2,461,087 2,400,000 2,400,000 2,400,000 2,400,000

Telecommunication 83,272 66,709 66,709 66,709 66,709 66,709

Trepça Mines 5,412,870 4,817,870 4,817,870 4,817,870 4,817,870 4,817,870

Policy Development of

ED - 330,665 336,785 76,785 326,785 326,785

Legal department - 24,012 28,092 28,092 28,092 28,092

Kosovo Geology

Institute - 556,209 861,695 1,533,207 1,388,354 1,388,654

Kosovo Agency for

Efficiency and Energy - 51,789 1,053,448 2,253,448 3,948,448 3,948,448

State Museum of

Crystals - 37,302 39,077 39,077 39,077 39,077

98

Total of Programmes

per economic categories

41,956,042

36,780,567

30,079,640

28,075,226

29,645,373

29,645,673

No. of employees 153 153 153 153 153 153

Wages and salaries 762,146 781,377 845,175 845,175 845,175 845,175

Goods and Services 5,006,574 4,229,474 5,141,246 4,363,669 4,363,669 4,363,669

Utilities 42,196 39,735 42,600 36,210 36,210 36,210

Subsidies and transfers 26,202,371 24,602,809 12,833,870 12,833,870 12,833,870 12,833,870

Capital outlays e 9,942,755 7,127,173 11,216,749 9,996,302 11,566,449 11,566,749

Sources of Financing: 41,956,042 36,780,567 30,079,640 28,075,226 29,645,373 29,645,673

Government Grants 41,956,042 36,780,567 29,079,640 25,875,226 25,750,373 25,750,673

Own Source revenues

Financing from loans - - 1,000,000 2,200,000 3,895,000 3,895,000

Donators grants - - - - - -

Table 2. Summary of Key Performance Information

Key performance

indicators

2012

current

2013

current

2014

budget 2015 plan 2016 plan

2017

plan

Energy sector

Identification of potentials

of savings of energy in the

central level and local level

buildings of Kosovo.

144,000 144,000 144,000 100,000 100,000 100,000

Identification and

promotion of possibilities

for the use of EE and BRE

110,000 90,000 1,123,000 2,470,000 320,000 320,000

Research – studies for the

new energy capacity

building in Kosovo

Mine sector

Capacity building for

research and analysis for

identification of respective

areas in the area of research

of mine resources –

building of analysis

laboratory

- 477,000 771,000 1,442,000 1,200,000 -

Development of mines of

Trepça 1,335,000 1,335,000 1,735,000 1,735,000 1,735,000 1,735,000

Studies for the

identification of possible

areas for the opening of

new mines.

173,000 50,000 70,000 50,000 200,000

Publicly owned

enterprises

The increase of the level of

public services for Kosovo

citizens from the railway

sector from Government

Investments is found in the

increase of the number of

passengers who are using

the railway transport for

travelling as has increased

the level of the use of

transport of goods through

railway.

2,761,000 2,861,000 3,039,000 3,039,000 3,039,000 3,039,000

99

Also the performance with

supply services in the

Water Sector has increased

in potable water by

reducing the water losses

from 61% to 59%, thus

increasing the percentage

of collection by 3% and by

increasing the number of

consumers by 5% as access

of population to the water

supply.

1,301,000 2,882,000 2,689,000 2,689,000 2,689,000 2,689,000

The waste sector has noted

increase in performance

from investments in

equipment and waste

transport means with w

bigger geographic

inclusion of the territory of

Kosovo for the collection

of waste.

638,000 500,000 1,369,000 1,369,000 1,369,000 1,369,000

100

MINISTRY OF INTERNAL AFFAIRS

Mission Mission of the Ministry of Internal Affairs (MIA) is building, keeping and increase of security

for all citizens, supervision and provision of rule of law, protection of life, assets and freedom

of movement for all citizens. MIA, being based on professional and human values, provides

modern access, professionalism, transparency, respect for human rights, by providing equal

opportunities for all citizens of the Republic of Kosovo.

Current situation

Ministry of Internal Affairs has developed its capacities for strengthening and rule of law by

building capacities of information technology, functionality of the department for protection

of witnesses, establishment of national centre for border management and functionality of the

data system CODIS in the DNA laboratory.

The European integration process has advanced with the commencement of negotiations of

stabilisation and association and with progress in the dialogue for the visa liberalisation. The

agreements achieved in Brussels have been implemented, whereby the return of basic registers

of civil status from Serbia took place, the involvement of about 100 former members of MUP

in the Kosovo Police, the establishment and functionality of the regional department for the

region of North Mitrovica, and implementation of border integrated management occurred.

The legal and strategic basis was supplemented according to EU legislation. Security of

documents and civil registers has increased through the electronic system of central register of

civil status, and biometric passports and IDs were issued.

Agreements in the area of re-acceptance of repatriated persons, regional and international

cooperation in the area of migration and the combating of organised crime have been signed.

It is constantly being worked on the increase of efficiency to successfully manage with

situation of emergency. In order to implement the applicable legislation, MIA has been

engaged intensively in systematisation of all regional and municipal units of emergencies in

the structure of MIA.

Objectives

1. Prevention and combat of crime and provision of public safety;

2. Implementation of recommendations from the review of safety sector;

3. Reforms in the Public Safety Agencies;

4. Expansion of the provision of civil documents.

First objective aims at preventing and combating crime and at providing public safety. The

execution of this objective will be achieved by the respective departments of Kosovo Police

through the following activities:

Creation of digital system of radio-communication – TETRA;

Operationalisation of the Department for the Protection of Witnesses;

Expansion of the areas of the expertise in the Forensic Agency;

101

Combating cyber crime;

Implementation of the policing strategy run by intelligence.

Second objective aims at implementation of recommendations deriving from the strategic

review of the safety sector. The activities through which this objective will be achieved are the

following:

Building of capacities of Kosovo Police in the management of crowds and violent

protests;

Establishment of the Operational Centre for the Management of Emergency

Situations, building of the acting capability and completion of the system of

emergencies in infrastructure and necessary equipment, for the prevention and

management of crises as well as building of capacities of AME for taking over

responsibilities from KSF;

Management of hazardous materials;

Operationalisation of Helicopters Unit.

Third objective is closely linked to reforms, capacity building as well as in implementation of

actions and different activities in the public security agencies. The execution of this objective

is aimed to be achieved through the following activities:

Draft law for early pensioning of police officers;

Uniforms according to new Kosovo Police design;

Kosovo Public Safety Agency – bachelor studies;

Human and professional capacity building in the Kosovo Police Inspectorate:

Continuation of negotiation and drafting of bilateral agreements for reacceptance;

Decentralisation of competencies in the new integration process;

Implementations of actions deriving from the road map for visa liberalisation.

Fourth objective deals with the provision of services of civil documents, while the execution

of this objective is aimed to be achieved through the following activities:

Digitalisation of civil registers;

Equipping citizens with personal documents of high quality of security (biometric)

according to EU standards.

Table 1. background and expenditures according to basic scenario 2015-2017

2012

current

2013

current 2014 budget

2015

assessment

2016

assessment

2017

assessment

Ministry of

Internal Affairs 89,204,437 92,173,665 107,062,880 102,922,413 101,262,413 102,195,207

Total of

Programmes 89,204,437 92,173,665 107,062,880 102,922,413 101,262,413 102,195,207

Central

Administration

Programme

Services

1,824,164 1,997,573 2,641,134 2,213,594 2,363,594 2,163,594

Civil Registration

Agency

programme

6,760,839

10,527,733

11,490,345

10,628,614

10,978,614

10,828,614

102

Reintegration

programme of

Repatriated

Persons

2,120,042 2,091,682 2,372,450 2,094,928 2,094,928 2,094,928

Kosovo Agency

Forensics

programme

761,329 1,128,741 1,124,741 1,537,860 1,274,741

Agency

programme for

Emergency

Management

929,788 994,164 4,022,843 4,244,373 1,234,373 1,734,373

Police

Inspectorate

Programme

795,845 908,804 1,140,677 1,056,597 1,060,844 1,107,357

Kosovo Police

programme 74,414,702 72,256,820 80,936,928 78,605,849 79,068,483 80,677,883

Kosovo Academy

Programme for

Public Security

2,359,057 2,635,561 3,329,762 2,953,717 2,923,717 2,313,717

Total of

programmes

according to

economic

categories

89,204,437 92,173,665 107,062,880 102,922,413 101,262,413 102,195,207

No. of employees 9,601 9,635 10,275 10,275 10,275 10,275

Wages and

salaries 54,316,965 5,462,157 59,304,289 59,304,289 59,304,289 59,304,289

Goods and

services 9,124,496 21,974,568 25,365,588 21,524,469 21,524,469 21,524,469

Utilities 1,418,377 1,539,043 2,167,528 1,878,180 1,878,180 1,878,180

Subsidies and

transfers 957,792 997,362 1,318,870 1,318,870 1,318,870 1,318,870

Capital outlays 13,386,807 12,200,535 18,906,605 18,896,605 17,236,605 18,169,399

Sources of

financing 89,204,437 92,173,665 107,062,880 102,922,413 101,262,413 102,195,207

Government

grants 88,450,552 91,966,784 106,171,751 102,031,284 100,371,284 101,304,078

Own source

revenues 482,357 54,127 891,129 891,129 891,129 891,129

Financings from

loans 271,528 152,753 - - - -

Donators grants -

- - - -

103

Table 2. Summary of key performance information

Department for the production of documents

Key performance

indicators 2012 2013 2014 2015 Plan 2016 Plan

2017

Plan

Number of passports

issued

153,7

16 159,725 300,000 300,000 300,000 200,000

Number of IDs issued 193,4

15 162,123 400,000 500,000 400,000 400,000

Number of driving licences

issued

79,81

2 63,165 70,000 80,000 70,000 70,000

Forensics

2012 2013 2014 2015 Plan 2016 Plan

2017

Plan

Total employees 42 53 62 72 72

Chief executive office (No.

of employees)

2

5

5

6

6

Department for forensic

traseology

(no. of employees)

25

30

34

37

37

Ballistic laboratory

Cases accepted /cases

examined

1613/1365

1558/1515

1620/1620

1750/1750

1850/1850

2100/2100

Laboratory of

Dactyloscopy and

Traseology

Cases accepted /cases

examined

1001/1011

1291/1279

1400/1400

1530/1530

1650/1650

1800/1800

Laboratory of documents

and manuscripts

Cases accepted /cases

examined

720/715

775/773

800/800

880/880

950/950

1150/1150

Department for Chemistry

and Forensic Biology

(No. of employees)

9

9

13

17

17

Laboratory for chemical

analyses of narcotics Cases

accepted /cases examined

282/285

340/327

600/600

850/850

950/950

1180/1180

Laboratory of serology and

DNA

Cases accepted /cases

examined

69/80

112/117

250/250

380/380

450/450

600/600

Laboratory for analyses of

arson and explosives

Cases accepted /cases

examined

00/00

00/00

100/100

150/150

200/200

280/280

Department for Forensics

Information Technology

(No. of employees)

6

9

10

12

12

Laboratory for computer

examination

Cases accepted /cases

examined

45/39

82/46

150/150

250/250

320/320

470/470

104

Laboratory for examination

of voices and audios

Cases accepted /cases

examined

00/00

00/00

50/50

100/100

180/180

320/320

Laboratory for examination

of photography

Cases accepted /cases

examined

00/00

00/00

50/50

100/100

150/150

270/270

TOTAL 3730/3495 4158/4057 5020/5020 5890/5890 6700/6700 8170/8170

Department of Reintegration

N

o

Key performance

indicators

Services

provided 2012 2013 2014

2015

Plan

2016

Plan

2017

Plan

Emergency assistance

1 Transport to the

municipality of origin Persons 361 316 320 320 320 320

2 7 day temporary

accommodation Persons 166 138 140 140 140 140

3 Food prepared

(served) Persons 166 138 140 140 140 140

Midterm assistance

4 Apartments with rent Apartment

s 232 322 200 200 200 200

5 Food and hygiene

packages Persons 2783 2536 2500 2500 2500 2500

6 Medicines and

medical treatment Persons 38 29 30 30 30 30

7 Winter packages

(firewood)

Family /

individual 509 297 200 200 200 200

Long-term assistance

8 House renovation Decisions 28 9 20 20 20 20

9 Reconstruction/

house construction Decisions 47 44 50 50 50 50

10 Home furniture Family/in

dividual 58 22 70 70 70 70

11 Business plans Persons 153 268 200 200 200 200

Proposed financing

12

Case Management

System financed by

the reintegration

programme for the

management of

reintegration process

Costs in € - 26,030 40,000 5,000 5,000 5,000

14

UNICEF project

financed by

reintegration

programme for

reintegration

assistance

Costs in € - 23,908 23,908 23,908 23,908 23,908

13

UNDP programme

financed by

Reintegration

programme for

employment training

and employment of

repatriated persons -

Persons 134 120 120 120 € 120 € 120 €

105

15

MEST project

financed by

reintegration

programme for the

provision of

additional teaching –

language courses for

repatriated persons

Repatriate

d students - 92 330 330 330 330

15 Other projects Costs in € - 92 50,000 50,000 50,000 50,000

Kosovo Academy for Public Safety

Key performance indicators 2012 2013 2014 2015

Plan

2016

Plan

2017

Plan

Training held in KAPS

Number of participants from Public

Safety Agencies

4660 4263 8583 8583 8583 8583

Number of training held 281 277 140 250 250 250

Number of instructors of KAPS 7 7 17 53 53 53

Number of instructors of Agencies in

KAPS

46 46 46 0 0 0

Higher education (Faculty of Public Safety)

Number of students - - 65 130 195 270

Number of professors - - 12 20 20 20

Administration services

Number of staff of KAPS 168 163 177 177 177 177

Kosovo Police

Key performance

indicators

2012 2013 2014 2015 Plan 2016 Plan 2017 Plan

Number of total cases 45,379 54,180 53,096 52,055 51,014 49,994

Number of criminal acts 35,585 36,642 35,909 35,205 34,501 33,811

Number of traffic accidents 19,754 19,998 19,398 18,834 18,269 17,721

Accidents with fatality 116 104 99 94 89 85

Dead persons in accidents

with fatality 121 119 113 108 102 97

Unauthorised border crossing 114 125 121 118 114 111

Migrant smuggling 28 42 40 39 37 36

106

Goods smuggling 206 154 146 139 132 125

Organised crime 3 7 7 6 6 6

Cyber crimes 11 19 18 17 16 15

Cultivation of narcotics 59 31 29 28 27 25

Possession of narcotics 348 428 407 386 367 349

Trafficking with narcotics 142 119 113 107 102 97

Human trafficking 34 38 36 34 32 30

Criminal acts against

economy 140 133 129 125 121 118

Criminal acts in official duty 159 170 165 160 155 150

Criminal acts – murders 55 39 36 33 30 28

Criminal acts – thefts 8,607 8,689 8,255 7,841 7,449 7,076

Arrests 19,491 18,189 18,371 18,555 18,740 18,928

Confiscated weapons 1,601 1,758 1,828 1,902 1,978 2,057

Confiscated ammunition of

all calibres 34,270 37,812 39,324 40,900 42,536 44,237

Criminal groups stricken 83 61 63 66 69 71

Training organised by

Training Division 180 210 212 214 216 219

Number of participants in

training 2,993 3,235 3,267 3,300 3,333 3,367

Training, conferences abroad 73 72 73 73 74 75

Number of participants in

these training 309 357 361 364 368 372

All types of training

(including also re-

certification)

685 741 748 756 764 771

Total number of participants

in training 8,249 8,667 8,840 9,021 9,201 9,385

Confiscated Dollars 1,172,513 73,505 74,975 76,505 78,035 79,595

Confiscated Euros 232,876 285,514 305,500 328,382 351,369 375,964

Counterfeited Euros 0 86,022

107

MINISTRY OF JUSTICE

Mission

Mission of the Ministry of Justice (MoD) is to develop and draft legislation and policies in the

area of justice, to establish an advanced legal system in compliance with international

standards and best European practices. Furthermore, mission of the Ministry is the

establishment of an independent and unique judiciary and prosecution to ensure the rule of

law, protection of rights, freedoms and property of the citizens of Kosovo.

Current situation

Ministry of Justice is committed to manage and implement reforms in the area of the rule of

law. Ministry has implemented numerous measures in order for it to become more effective,

accountable and comprehensive in response to the needs and priorities of citizens in the area

of the rule of law. The Ministry is committed to comply with all obligations deriving from

strategic and planning documents, including: Strategic Development plan for 2012-2016 of

the Ministry of Justice; the Action Plan on the Stabilisation – Association Agreement; the

Action Plan for the Road map for the Visa Liberalisation; and Legislative Programme for

2013.

Apart from the activities mentioned above, which are interrelated with and derive from

European Agency of this Ministry, with the direct coordination and in cooperation with

European Commission in May last year, there was a second meeting held on the Meeting of

the Structured Dialogue for the rule of law, between the Government of the Republic of

Kosovo and European Commission.

Key achievements of the Ministry of Justice are the following:

Ministry has prepared 19 draft laws, 14 sublegal acts and the Regulation on internal

organisation of the Ministry of Justice;

In order to combat the trans-national crime, there was an agreement signed for

international legal cooperation between the Republic of Kosovo and the Republic of Italy

for extradition and mutual aid relating to criminal matters;

In December 2013, the new high security prison was inaugurated. The facility will seat

about 390 prisoners and is expected to be functional during 2014. There are two new

regional centres of the Kosovo Probation Service (Ferizaj and Gjakovë).

Department for forensics has conducted 300 forensic autopsies and 100 physical clinical

examination regarding the domestic violence. 100 examinations are carried out on the

ground; the new database for the missing persons is made completely functional;

The Research Institute for war crimes continues with identification and documentation of

war crimes. The institute has gather and photocopied materials accepted as evidence of

war crimes in the region of Gjilan, Klina, Istog, Kaçanik and Kamenicë. Many visits are

carried out and statements were taken from the survivors of the massacre of Qyshk, Zahaq,

Pavlan in Peja. The Institute has opened an exhibition in Vienna with the title “Destruction

of the Cultural Heritage in Kosovo 1998-1999" and has published the summary of works

from the International Conference "Challenges of investigation of War crimes in Kosovo

1998-1999” (Albanian - English and Albanian – Serbian).

108

MoJ represented the Government of the Republic of Kosovo in total 1656 judicial

sessions, whilst it received 2579 cases of Contested, uncontested, execution and

administrative Procedures, and of these cases are: 303 judgements won and 156 judgments

lost, 17 judgements where the court was announced incompetent, 91 lawsuits, 8 revisions,

etc.

Objectives

To execute its mission, Ministry of Justice has planned to achieve these strategic objectives in

compliance with the Strategic Development Plan 2012-2016:

1. Establishment and promotion of legal and institutional framework in accordance with

priorities issued from the European integration process;

2. Further strengthening of the system for international legal aid and cooperation;

3. Provision of preconditions and more efficient management of the execution of criminal

penalties;

4. Development and capacity building of forensics, finding and identification of missing

persons during the war and the investigation of war crimes, and

5. Development of professional capacity for more efficient duties and operational

responsibilities of the Ministry.

First objective deals with the drafting need or the amendment of some laws in Kosovo so that

they are more oriented to implementation and/or harmonised with other laws in accordance

with international standards and EU legislation. The execution of this objective is achieved

through two programmes: Legal policy unit and European Integration Department.

Activities through which the execution of this objective are foreseen are:

Amending and supplementing of the exiting legal framework, including the aligning of

legislation with EU standards;

Strengthening of the capability of the Ministry for drafting laws and human capacity

building.

Second objective deals with enhancing of international legal aid and international legal

cooperation. The execution of this objective is done through the Legal Cooperation

Department programme.

Activities through which the execution of this objective is foreseen are:

Proposal of relevant legislation relating to the area of international legal cooperation;

Providing for and processing of all requests dealing with international legal aid.

6. Third objective aims at provision of preconditions and more efficient management of the

execution of criminal penalties. The execution of this objective is done through

programmes of Correction Service, Prisons, Service on Conditional Release and

Correction service Inspectorate.

To achieve this objective, MoJ has included the following activities:

109

New prison capacity building and rehabilitation of the existing facilities of KCS;

Implementation of measures for re-socialisation of prisoners;

Establishment of special institutions for minors, suffering educational institutional

measures for minors, as is foreseen under the Justice Code for Minors and training of

adequate staff;

Supervision of persons convicted with alternative measures and those conditionally

released;

Awareness raising of professional and public opinion relating to the implementation of

alternative measures and the role of KCS;

Conduct of regular and independent inspections from Correction Service inspectorate and

provision of advices to the management of the Ministry of Justice.

Fourth objective deals with forensic examination, collection of evidences on war crimes and

conduct of investigations. The execution of this objective is done through programmes from

the Office of Missing Persons and Medicine and the Institute for Investigation of War Crimes.

To achieve this objective, the following activities are included:

Provision of forensic examination based on internationally recognised standards;

Ensuring complete functioning of the institute for investigation of war crimes.

Fifth objective deals with professional capacity building of the Ministry in order to create

indispensable conditions for the enhancing of legal reforms and ensuring efficient functioning

of the Ministry of Justice.

Table 1. Background and expenditures according to basic scenario 2015-2017

2012

current

2013

current 2014 budget

2015

assessment

2016

assessment

2017

assessment

Ministry of Justice 16,230,248 16,514,390 18,115,335 17,029,545 17,029,545 16,767,045

Total of programmes 16,230,248 16,514,390 18,115,335 17,029,545 17,029,545 16,767,045

Central

Administration

Services programme

1,199,074 869,790 874,361 818,626 818,626 818,626

Legal Policy Unit

programme 149,117 156,277 105,992 99,617 99,617 99,617

The Service

programme for

Conditional Release

346,948 366,175 539,421 516,873 516,873 516,873

Correction Services

programme –

Prisons

13,275,540 13,877,786 14,581,313 13,832,117 13,832,117 13,569,617

Agency programme

for the Management

of Sequestrated

Assets

188,138 253,205 409,195 371,920 371,920 371,920

Unit programme

against Economic

Crimes

- - 62,146 59,836 59,836 59,836

110

Programme of the

Missing Persons

Office and Forensics

698,564 625,897 894,538 736,750 736,750 736,750

Programme of

International Legal

Cooperation

Department

106,151 141,049 149,505 139,973 139,973 139,973

Programme of

European

Integration

Department

- 40,889 54,634 50,266 50,266 50,266

Inspectorate

Programme of War

Crimes

Investigations

233,421 131,159 240,724 213,502 213,502 213,502

Inspectorate

Programme for

Correction Service

33,295 52,163 67,085 61,699 61,699 61,699

State Advocacy

programme - - 77,625 74,280 74,280 74,280

Department

Programme for free

Occupations

- - 58,796 54,086 54,086 54,086

Total of programmes

according to

economic categories

16,230,248 16,514,390 18,115,335 17,029,545 17,029,545 16,767,045

No. of employees 1,869 1,864 1,926 1,926 1,926 1,926

Wages and

salaries 9,494,958 9,510,257 9,870,908 9,870,908 9,870,908 9,870,908

Goods and

services 4,701,155 5,163,793 5,744,669 4,882,968 4,882,968 4,882,968

Utilities 858,186 889,912 827,258 703,169 703,169 703,169

Subsidies and

transfers 31,698 31,940 50,000 50,000 50,000 50,000

Capital outlays 1,144,252 918,488 1,622,500 1,522,500 1,522,500 1,260,000

Sources of financing 16,230,248 16,514,390 18,115,335 17,029,545 17,029,545 17,029,545

Government grants 16,227,098 16,478,391 18,067,135 16,981,345 16,981,345 16,718,845

Own source

revenues 3,150 35,998 48,200 48,200 48,200 48,200

Financing from

loans - - - - - -

Donators grants - - - - - -

111

Table 2. Summary of Key Performance Information

2012 2013 2014 2015 Plan

2016

Plan

2017

Plan

Programme Service for Alternative Penalties – Probation Services

Number of staff 65 65 73 73 73 73

Number of total measures

and alternative sanctioning

executed

1216 1000-

1200

1000-

1200

1000-

1200 1000-1200

Number of persons

conditionally released from

prisons under Kosovo

Probation Service

safeguarding

123 100-150 100-150 100-150 100-150

Programme Correction Service – Prisons

Number of staff 1605 1626 1626 1626 1626 1626

Number of prisoners

3733 3000-

4000

3000-

4000

3000-

4000

3000-

4000

Number of prisoners

released 3588

3000-

4000

3000-

4000

3000-

4000

3000-

4000

Number of prisoners

transferred 787 600-800 600-800 600-800 600-800

Programme Agency for Management of Sequestrated or Confiscated Assets

Number of staff 17 17 24 24 24 24

Total value of overall

confiscated incomes and

sequestered deposits in €

Income from

confiscated

assets in the

amount of

€992.30 and

confiscation

deposits are

in the

amount of

€86,004.84

Programme Forensics Department

Number of staff 65 59 63 63 63 63

Number of forensic

autopsies executed 300 200-300 200-300 200-300 200-300

Number of examinations

executed 100 100 100 100 100

Programme Department for International Legal Aid

Number of staff 16 14 24 24 24 24

Number of requests

processed relating to legal

assistance

7009 8778 7000-

8750

7000-

8750

7000-

8750

7000-

8750

Programme 369 State Advocacy

Number of staff

10 10 10 10

Representation of the

Government of the

Republic of Kosovo – total

sessions

1656

1250-

1650

1250-

1650

1250-

1650

1250-

1650

Programme 370 Department for Free Occupations

Number of staff

5 5 5 5

Number of bar exams held

2 2 2 2 2

Number of private

execution exams held 2 2 2 2 2

Number of exams of

3 3 3 3 3

112

2012 2013 2014 2015 Plan

2016

Plan

2017

Plan

bankruptcy administrator

held

Number of mediation cases

(service per request; an

approximate number to be

provided)

769 500-750 500-750 500-750 500-750

Note: it is the first time that non-financial information are presented in this format. Basic policies for

indicators / measurements should be still developed, which is not easy to be done in the field of justice. Further

improvements are expected to be done in the upcoming years. Some initiatives are being drafted. For example,

Agency for management of confiscated assets is improving its database. In addition the database of the missing

persons is functional, and the data are being inserted in it. For some areas, non-financial information are

comprised of non-qualitative descriptions instead of quantitative measurements.

113

MINISTRY OF FOREIGN AFFAIRS

Mission

Ministry of Foreign Affairs (MFA) mission is the formulation and implementation of the

foreign policy of the Republic of Kosovo, protection of the Kosovo interest in relation to other

countries and international organisations, representation of Kosovo in foreign countries,

retaining and protection of immunities and privileges of diplomatic missions and persons to

whom they belong to according to international conventions and customs, development and

coordination of policies in relation to other countries. Ministry of Foreign Affairs promotes

and protects national, cultural and economic policies of the Republic of Kosovo throughout

the world.

Current situation

MFA is under the process of consolidation of its institutional infrastructure. MFA is taking

measures and is creating necessary infrastructure for services of capacity building within it

and in diplomatic and consular missions abroad. MFA currently has a staff of 115 persons

working in the Ministry and 101 others in diplomatic consular missions. The Ministry is

currently having 25 diplomatic missions under its management, which have been established

since 2008, as well as eight consular representations thus providing for a diplomatic/consular

coverage extending to all continents.

Within MFA is functioning the Diplomatic Academy, whose mission is preparation and

professional formation of members of Foreign Service personnel for the needs of the Ministry

of Foreign Affairs.

Objectives

Key objectives of the Ministry of Foreign Affairs for the midterm plan are:

1. Membership of the Republic of Kosovo in International Organisations;

2. Institutional strengthening of MFA and diplomatic service of RKS;

3. Integration of the Republic of Kosovo in EU and NATO;

4. Consolidation of international subjectivity of the Republic of Kosovo;

5. Enhancing of regional bilateral cooperation and development of strategic partnership

with special countries.

First objective aims at progress of the process of integration of the Republic of Kosovo in the

international system, including political and economic and social-cultural international

organisations. This high political priority aims at gradual enhancement of the Kosovo position

in the multilateral area to the complete completion of the process. This objective is closely

linked to the priorities of divisions whose aim is membership / integration in international

mechanisms. To execute this objective, the following activities are needed:

Inter-institutional coordination;

Political coordination and lobbying with international partners;

Participation to multilateral meetings, and

114

Payment of membership which differs from the type and relevance of organisation,

participating quote which is defined by statutory policy if the organisation itself.

Second objective aims at strengthening MFA and diplomatic service of RKS. In this regard, it

is important that the mechanism of diplomatic service and MFA are at the appropriate level to

achieve the intended purposes.

Consequently, the further development of Diplomatic Academy is aimed, which is foreseen to

cover the section of capacity building for external service. Within the policy, one service one

Ministry, through the proposed policy the aim is to improve quality of the service and

international image and gradual enhancement of the position of Kosovo in the diplomatic

cooperation field with states and other mechanisms of international policy, whereby

foreseeing the opening of new diplomatic and consular missions. To execute this objective, the

following activities are necessary to be implemented:

Opening of new diplomatic and consular missions (Poland, Malaysia, Canada,

Senegal, Liaison offices in Romania and Greece);

Capacity building of external service (the increase of the number of diplomats in

Brussels, New York, Washington, Geneva);

Increase of capacities if human resources within MFA (recruitment of new staff for

political and administrative departments), and

Increase of human resources capacities within Diplomatic Academia.

Third objective aims at enhancement of the Republic of Kosovo towards the Euro - Atlantic

structures through signing and implementing of Stabilisation and Association Agreement and

enhancement through peace partnership with NATO is high priority of the Government of

Kosovo, MFA is responsible to coordinate activities ensuring fair implementation of this

objective.

Fourth objective interrelates to the strengthening of Kosovo citizenship in the international

field.

This policy is new priority in access, purpose and contents by always taking into account the

international policy actuality.

This priority is closely linked to the Strategy for Complete International Recognition of

Kosovo, Strategy for Public/Digital/Economic Diplomacy, Platform for Foreign Policy of

MFA. To execute this objective the following activities are needed to be implemented:

Providing new international recognitions;

Institutional coordination in international representation;

Coordinated initiation of bilateral state interest agreements;

Further expansion of diplomatic network in states with regional and global power;

Execution of official visits in non-recognition states, and

Instigation of activities the aim of which is the reflection of the real image of the

Republic of Kosovo.

Fifth objective presents enhancement of regional cooperation and building of strategic

partnership with special countries, whilst to execute this objective the following activities are

needed to be implemented:

Promotion of the Republic of Kosovo in the region;

Implementation of strategic partnership with the Republic of Albania, and

115

Strengthening of overall cooperation with the states of the region.

Table 1. Background and expenditures according to basic scenarios 2015-2017

2012

current

2013

current

2014

Budget

2015

Assessment

2016

Assessment

2017

Assessment

Ministry of

Foreign Affairs 14,589,691 16,331,077 21,426,629 19,511,133 19,511,132 19,510,968

Total of

programmes 14,589,691 16,331,077 21,426,629 19,511,133 19,511,132 19,510,968

Central

Administration

programme

1,598,878 1,471,645 2,169,735 1,974,810 1,537,810 1,957,646

Programme –

Minister‟s Office 521,555 891,574 713,313 620,837 620,837 620,837

Programme –

Directorate of

General

departments

392,025 399,973 453,897 416,202 416,202 416,202

Programme –

Embassies 12,077,233 13,288,438 17,670,015 16,175,615 16,612,614 16,175,614

Programme –

Diplomatic

Academy

- 279,447 419,669 323,669 323,669 340,669

Total of

Programmes

according to

economic

categories

14,589,691 16,331,077 21,426,629 19,511,133 19,511,132 19,510,968

Number of

employees 191 219 272 272 272 272

Wages and salaries 3,632,948 4,151,610 6,815,491 6,815,490 6,815,490 6,815,490

Goods and services 10,009,750 11,449,597 11,833,444 10,058,428 10,058,427 10,058,427

Utilities 360,894 350,560 936,530 796,051 796,051 796,051

Subsidies and

transfers 46,988 128,487 100,000 100,000 100,000 100,000

Capital outlays 539,111 250,823 1,741,164 1,741,164 1,741,164 1,741,000

Sources of

financing 14,589,691 16,331,077 21,426,629 19,511,133 19,511,132 19,510,968

Government grants 14,589,691 16,331,077 21,426,629 19,511,133 19,511,132 19,510,968

Own source

revenues - - - - - -

Financing from

loans - - - - - -

Donators grants - 483,425 834,468 - - -

116

Summary of key performance information

Within a time line of less than six years from the establishment and functionality of MFA

(2008), the Ministry of Foreign Affairs was accompanied by two fundamental objectives:

Consolidation of Kosovo citizenship in the international arena, and

Internal consolidation of MFA and its diplomatic and consular network.

a) Important results have been noted towards consolidation of the Republic of Kosovo

citizenship. While the international recognition of the independence of Kosovo was one of

the most important priorities for the country, now over 106 members states of UN from all

sides of the globe have recognised the Republic of Kosovo.

b) In addition, Republic of Kosovo has focused its international subjectivity by singing a big

number of international agreements (over 150 international agreements signed and ratified

and about 100 other agreements initiated which are under the negotiation stage and

pending to be signed).

c) Further enhancing of special ties with the United States of America, with which, apart

from coordination of actions for big and important issues, has also continued the

implementation of concrete initiatives of two partite cooperation from the point of view of

economy, education, culture, etc.

d) Now, Kosovo is at the completion of negotiations for Stabilisation and Association

Agreement and its signature is expected in the first part of 2014.

e) Regarding the membership of the Republic of Kosovo in international organisations,

Republic of Kosovo has managed to join in two main world financial organisations, IMF

and World Bank. Another big achievement is the membership of RKS in IBRD and

Development Bank of the Council of Europe. RKS has also joined to more than 16

organisations and regional initiatives.

MFA has actively been the host of organisation of many conferences and other diplomatic

activities, the aim of which was the reflection of the country‟s image, promotion of cultural

values and economic potential of Kosovo.

117

MINISTRY OF KOSOVO SECURITY FORCE

Mission

Ministry of Kosovo Securty Force (MKSF) mission is to drat and implement state policies at

the strategic level of the defence of the country as well as to exercise the functions and

competencies in accordance with Constitution and applicable legislation of the Republic of

Kosovo.

MKSF is responsible to exercise civil democratic control on the Kosovo Secured Forces,

including planning, management and administration.

Mission if the MKSF is to formulate, implement, assess and develop policies and activities of

the Kosovo Secured Forces within the framework of democratic government and in

compliance with Constitution and Laws of the Republic of Kosovo.

Current situation

Following the declaration of the capacities by the North Atlantic Council of NATO in 2013,

Ministry of KSF continued with the development of full operational capacities in order to

maximally use the existing capacities to guarantee security to the property and life of all

citizens in the Republic of Kosovo.

In this regard, the support of central institutions of the Republic of Kosovo and of the

community in general, was and it remains one of the strategic objectives and priorities of

MKSF.

Ministry of KSF has continued the progress of development in: personnel advancement

(schooling within the country and abroad, recruitment, promotions, advancement,

decorations); capacity building for real operations; creation of model companies; creation of

the centre for Excellency for Search and Rescue; establishment of two partite partnership and

the signature of Memoranda of Understanding with states with which we still do not have such

Memoranda (strengthening of two partite partnership with USA, countries of EU, countries in

the region and KFOR).

MKSF as an institution involved in the process RSSS has completed the analysis within RSSS

and has provided the recommendations for further development of upcoming forces.

Recommendations have drawn a conclusion that MKSF should be turned into Ministry of

Defence while KSF in Kosovo Armed Forces.

Objectives

Strategic objectives refer to all legal and sublegal acts of the Republic of Kosovo, to priorities

of the Government, Government programme – item 2.2 protection and security as well as

strategic documents of the Ministry of Defence.

RSSS analysis, National Security Strategy, White Defence Book, action plan for the execution

of the national Security Strategy, Long-term development plan, Midterm integrated plan, do

determine the way and manner as of how Kosovo Armed Forces should be developed and

trained to achieve real capacities of the Constitutional mission.

For the midterm period 2015 – 2017 the strategic objective of the Ministry of Defence are:

118

1. Implementation of recommendations from RSSS process;

2. Making AF of Kosovo the professional force;

3. Masking AF of Kosovo a reliable force;

4. Making AF of Kosovo a good force in the region.

First objective deals with implementation of recommendations deriving from the RSSS

process. In this regard, Ministry of defence shall draft the defence Strategy, the White Defence

Book, the Long-term Development Plan, the Midterm Integrated Plan. The development of

Armed Forces of Kosovo is presented through these documents with a role, mission and size

which will be stable, affordable and able to carry out new duties. Ministry of Defence plans

beyond the Midterm Expenditure Framework by drafting its strategic documents, which

foresee the development of the Armed Forces of Kosovo in the ten coming years until 2024.

Armed Forces of Kosovo will comprise of at most five thousand (5,000) members of active

military personnel and at most of three thousand (3,000) members of reserve military

personnel. The development of this force will be done through a transparent and detailed

process broken down in three stages:

I stage (2014-2016) – Development of necessary constitutional, legal, institutional and

doctrine framework for the new force. The focus will be n personnel staffing, doctrines,

training and infrastructure.

II Stage (2017- 2019) – Special emphasis is placed on the development of capacities of

command, control and communication; procurement of armament and of essential

equipment; achievement of additional skills and of operational capacities.

III stage (2010-2024) – Completion of the recruitment of personnel, training and

equipment for the force in meeting its new mission for the protection of the country.

The second objective which is making Armed Forces of Kosovo a professional force, the

Ministry of Defence has planned the following activities:

Increase of operational level of the Armed Forces, in particular of structures set forth

for engagement in the support of operations within the country and abroad;

Professionalism, modernisation and constant standardisation of AF of Kosovo;

Development of a Force with high readiness supported by integrated logistics, fully

equipped, completed with personnel, trained effectively, self sustainable and

interoperable with NATO structures;

Implementation of changes in the policies and structures of AF of Kosovo approved by

the institutions of the Government of the Republic of Kosovo which result from the

recommendations of Strategic Review of the Security Sector.

To execute the third objective making Armed Forces of Kosovo a reliable force, the Ministry

of Defence has planned the following activities:

A force with good image and ready to respond to the needs of citizens of the Republic

of Kosovo;

Perspective development of AF of Kosovo in accordance with the mission, policies

and government directives in the area of security and defence;

Increase of transparency and accountability towards institutions of the Government of

the Republic of Kosovo and its citizens;

A force with national identity and a committed partner of USA and NATO and EU.

119

To execute the fourth objective – making Armed Forces of Kosovo a good force in the

region, the Ministry of Defence has planned the following:

Force building to deploy abroad and its certification on relevant international

organisations (EU, NATO, UN, etc).

Increase of cooperation and trust in the military arena and defence with the states of

the region and wider;

Engaging AF of Kosovo for membership in organisations and regional security

initiatives;

Participation of AF of Kosovo in engagement, training and important security training

in the region, NATO and wider;

Functionality and certification of the centre of Excellence for Urban Search and

Rescue.

Table 1. Background and expenditures according to basic scenario and new policies 2015-2017

2012

current

2013

current 2014 budget

2015

Assessment

2016

Assessment

2017

Assessment

Ministry of

Kosovo Security

Force

33,008,268 32,351,160 42,038,070 38,045,497 37,985,997 31,752,997

Total of

programmes 33,008,268 32,351,160 42,038,070 38,045,497 37,985,997 31,752,997

Central

Administration

Service

programme

2,635,959 2,906,804 3,530,332 3,273,837 3,243,837 3,223,837

Kosovo Security

Force programme 30,372,309 29,444,356 38,507,738 34,771,660 34,742,160 28,529,160

Total of

programmes

according to

economic

categories

33,008,268 32,351,160 42,038,070 38,045,497 37,985,997 31,752,997

No of employees 3,008 3,008 3,024 3,024 3,024 3,024

Wages and

salaries 14,547,644 14,548,070 16,510,415 16,510,415 16,510,415 16,510,415

Goods and

services 7,922,013 8,115,829 9,296,155 7,901,732 7,901,732 7,901,732

Utilities 664,124 784,569 851,000 723,350 723,350 723,350

Subsidies and

transfers - - - - - -

Capital outlays 9,874,488 8,902,691 15,380,500 12,910,000 12,850,500 6,617,500

Sources of

financing 33,008,268 32,351,160 42,038,070 38,045,497 37,985,997 31,752,997

Government grants 33,008,268 32,351,160 42,038,070 38,045,497 37,985,997 31,752,997

Own source

revenues - - - - - -

Financing from

loans - - - - - -

Donators grants - - - - - -

120

Proposal of new policy: Strategic Review of Security Sector

Total

3,000,000 3,000,000 3,000,000

Number of

employees 300 500 700

Wages and

salaries 774,000 1,290,000 1,806,000

Goods and

services 520,000 600,000 650,000

Utilities

35,000 50,000 50,000

Subsidies and

transfers

Capital outlays

1,671,000 1,060,000 494,000

Sources of

financing 3,000,000 3,000,000 3,000,000

Government grants

3,000,000 3,000,000 3,000,000

Own source

revenues

Total of basic

scenario and new

policies

41,045,497 40,985,997 34,752,997

No of employees

3,324 3,524 3,724

Wages and

salaries 17,284,415 17,800,415 18,316,415

Goods and

services 8,421,732 8,501,732 8,551,732

Utilities

758,350 773,350 773,350

Subsidies and

transfers - - -

Capital outlays

14,581,000 13,910,500 7,111,500

Sources of

financing 41,045,497 40,985,997 34,752,997

Government grants

41,045,497 40,985,997 34,752,997

Own source

revenues - - -

New policy: Establishment of Ministry of Defence and Kosovo Armed Forces (Strategic Review of the

Security Sector).

This policy deals with the increase of level of security in the country‟s level, increase of

capacities by aligning it with standards of NATO countries, which opens path to Kosovo

Integration in the Euro – Atlantic structures so that Kosovo will be transferred from the

consumer of security to the contributor of security and peace.

121

Table 2. Key performance indicators

Key performance indicators 2012 2013 2014 2015 2016 2017

Actual Actual Budget Plan Plan Plan

Kosovo Security Force

Recruitment of personnel

1057 +

(1679 from

KPC)

30

182 +(27

transfer

from

reserve)

175

+(341

transfer

from

reserve)

546+

(134

transfer

from

reserve)

590

Reserve 540 3 / / / 10

Cadets /45 8 19 20 20 20

Civ. in

MKSF 115

5

2

20

20

20

Civ. in KSF

/86 8 6 10 10 10

Training of personnel within the

country and abroad 295 training

182

training 200-250 250-300 250-300

250-

300

Individual equipment (footwear,

armament, sleeping bags, field

beds, waist belts etc. (Million €)

2,9 2.6 4,4 3.8 4,2 3.1

Collective equipment (tactical

vehicles, trucks, minivans,

engineering equipment) (Million

€)

1.8 0.8 4 10.6 8.9 14

Infrastructure (facilities for

command, accommodation,

kitchen, sports, shooting ranges,

fuel pumps, garages, road

infrastructure, etc).

(Million €)

3 5 4.9 5.6 5.7 2.8

Combat tactical

radios (CNR) KSF 52%

KSF

65%

KSF

83% KAF

29%

KAF

35%

KAF

46%

Co

mm

an

d,

con

tro

l, c

om

mu

nic

ati

on

Implementation of

project in %

KAF

23%

IT network

infrastructure KSF 56%

KSF

66%

KSF

76% KAF

80%

KAF

90% KAF

50%

KAF

70%

IT network

services (e-mail,

internet, VoIP,

VTC, SharePoint,

Collaboration

Tool etc.)

10% 30% 50% 65% 78% 85%

Total budget 2.3 1.5 3 4.2 5.4 7

122

Demining operations (mined

fields) 163,567m

2

113,907

m2

2 mined

fields

135

fields not

cleared

yet

Per

priorities

Per

prioriti

es

EOD operations

360

intervention

s /433

explosive

devices

398

interventio

ns /547

explosive

devices

107

interventi

ons /170

explosive

devices

24/7 on

call

24/7 on

call

24/7

on call

Humanitarian operations within

the country and abroad

113

operations

155

operation

s

21

operation

s

24/7 on

call

24/7 on

call

24/7

on call

Humanitarian projects of

CIMIC cooperation 28 24 5

20

thousand

/€

25

thousand

/€

30

thousa

nd /€

Indicator 1.

The situation of civil and military personnel in MKSF and KSF was presented in the first

indicator for 2012,2013 2014 and planning for the upcoming years until 2017. In annex you

will find the table of personnel expressed in percentage.

Current situation of KSF personnel

Staffed % M % F % Min. %

Active 2294 91.76% 2080 91.94% 185 8.06% 202 8.97%

Reserve 449 56% 426 95.00% 23 5.00% 10 2.00%

Civil/MKSF 119 96.00% 82 68.91% 37 31.09% 6 6.50%

Civil/KSF 94 94.00% 79 84.04% 15 15.96% 1 1.06%

Indicator 2.

The training of personnel according to years was presented in indicator two as follows: in

2012, 208 training were executed abroad, whilst 87 within the country. In 2013 there were 87

training executed within the country, whilst 98 training abroad. In 2014-2017, 250 -300

training are foreseen every year including training within the country and abroad.

Indicator 3.

Third indicator reflects the completion with personal equipment of military personnel of KSF

according to Top Organisational Equipment Table, which have contributed to the increase of

image and in the professional increase of KSF members.

Indicator 4.

The fourth indicator has presented the project execution in collective equipment, which has

increased the efficiency and operationality of Force, both in field exercises and also in

demining operations and different humanitarian projects, both in Kosovo and abroad.

Indicator 5.

123

During 2012 – 2014 there were numerous projects executed in the area of infrastructure such

as; accommodation facilities, kitchens, fuel pumps, sports fields, road infrastructure, policlinic

facilities, security fencing, entrance gates, sports halls, teaching classrooms, vehicle services,

garages which have improved the standard and conditions for NATO standards.

For 2015-2017, we plan to execute infrastructure projects (accommodation facilities, Centre

for Excellency for training in search and rescue, helicopter runways, sports halls and

swimming pools, teaching classrooms, vehicle services, entrance gates, garages, etc.

Following the review of RSSS and the decision of the Government of Kosovo for the

establishment of Kosovo Armed Forces it is necessary to build additional facilities and

accompanying infrastructure.

Indicator 6.

Projects executed during 2012 -2014 and planned for 2015-2017 in the indicator command,

control, communication includes the following areas: tactical radios, information technology

network, local optical network, teleconference system (VTC), telephony system IP (VOIP),

strategic communication network, software and licences for IT network, project of DRS for IT

network, project of the crypto protection system (COMSEC&INFOSEC), project of supply

with mobile communications knots.

Indicator 7.

Demining operations for 2012-2014 were executed in the following locations: Harilaq, Ferizaj,

Belincë, Hajvali, Koshare, Doberqan, Parku i Lirisë in Ferizaj, Luzhnicë, Gorancë, Nivokaz,

Ferizaj, which have impacted to the increase of security of citizens of Kosovo. During the

upcoming years, the Armed Forces will be in a situation of readiness in all mined fields

determined by Kosovo AG experts.

Indicator 8.

EOD operations, KSF has conducted them in call from the citizens of Kosovo, the number of

whom is presented in the table above.

Indicator 9.

KSF humanitarian operations within the country and abroad have been conducted during

2012-2014 in the area of Search and rescue, fire extinguishing, chemical, atomic and

biological equipment, medicine, engineering operations in unblocking the roads, assessment of

risks as well as deployment abroad in Albanian in two operations of water search and rescue.

In the subsequent years, Kosovo AF will continue to execute humanitarian operations.

Indicator 10.

During 2012-2014, KSF has executed numerous humanitarian projects in the fooling areas:

medical assistance for communities in the locations they live, lecturing in the primary and

secondary schools on awareness raising on mines, support in road infrastructure regulation in

different parts of Kosovo, installing movable bridges, cleaning of rivers, organisations of

summer camps for the youth, support to NGOs, support with transport the people with

disabilities, support to central and local institutions with equipment and transport for the

execution of their humanitarian projects.

124

THE MINISTRY OF EUROPEAN INTEGRATION

Mission The mission of the Ministry of European Integration (MIE) is to direct, coordinate and

monitor the entire integration process of the Republic of Kosovo in the European Union,

ensuring the composition of local policies and legislation in accordance with the EU

legislation, dialogue and negotiation coordination for membership, financial help

coordination, public information and capacity building.

Current situation

During 2013 there has been marked a progress towards the fulfillment of the two main

objectives in relation to the European integration process of the Republic of Kosovo,

respectively the Stabilization Association Agreement (SAA) and visa liberalization.

The European Commission published the monitoring report for the application of short term

criteria and confirmed that Kosovo has fulfilled all short term criteria to initiate the

negotiations for the SAA, and the European Summit decided to initiate the negotiations of

SAA between Kosovo and EU.

The European Commission delivered the first progress report for fulfilling the guidelines for

visa liberalization. Based on the recommendations of this report, the Government of Kosovo

has approved the Action Plan for Visa Liberalization.

Kosovo has become a member of the Development Bank of the European Council; Kosovo

has signed the frame agreement with the European Bank for Investments.

The Ministry of European Integration, during 2013 has coordinated 8 meetings for

Stabilization Association Process Dialogue (SAPD) with the European Commission,

respectively SAPD for Justice, Freedom and Security, Agriculture, Fishing, Forestry and Food

Security, Transport, Environment, Energy and Regional Development, Trade, Industry,

Customs and Taxes, Internal Market, Competition, Health and Consumer Protection,

Innovation, Social Cohesion and Informative Society, Economy, Financial Issues and

Statistics, Regional Cooperation.

MEI has delivered the first input for Progress Report for the period September 2012 – May

2013 and has also delivered the second updated input which covers the period May-September

2013.

The Government of Kosovo has signed cooperation agreements for coordinating donations

with Luxemburg and the Development Program of the United Nations, and has also approved

the decision for initiating the membership procedures of Kosovo in the Open Government

Partnership.

During 2013 the necessary legislation has been approved to initiate the use of accordance

charts of Kosovo‟s legislation with the EU legislation, thus being the first step towards the

creation of a sustainable fundament of our legislation going in the same direction with acquis.

125

Aiming to integrate the Rom, Ashkali and Egyptian communities there has been held a high

level conference on this issue.

Objectives

1. Managing the European agenda;

2. Coordinating governmental structures for European integration;

3. Coordinating financial help;

4. Resemblance of legislation and the coordination of the translation.

The first objective aims to ensure an effective management of Stabilization-Association

Process Dialogue between Kosovo and the European Union, which includes all the sectors and

public policies fields and all the public institutions of the country. More precisely, this

objective consists of three components: Stabilization-Association Process Dialogue (SAPD)

with EU, the Coordination of objectives‟ fulfillment and agreed measures with EU in the

frame of SAPD and the visa liberalization Process. The activities which will be implemented

by the Ministry of the European Integration to achieve this objective are as follows:

Organizing an annual Plenary meeting (on political level) of Stabilization-Association

Process Dialogue between Kosovo and EU;

Compile and update the Action Plan for Stabilization-Association Agreement (APSAA)

and Monitor and report the application of APSAA;

Regular reporting to the European Commission regarding the application of APSAA,

conclusions of SADP and other relevant documents;

Organizing meetings for the Directing Committee for Visa Liberalization (DCVL) and

compiling conclusions from the meetings of this Committee and working subgroups for

via liberalizations in the frame of Working Group for Visa Liberalization (WGVL)

The second objective aims to ensure an effective coordination of inter-institutional structures

of the Government of the Republic of Kosovo which are responsible for the European

integration and monitoring of their work. Since these structures include all the public

institutions of the country, similar to the first one, this objective consists of only one

component, that of the responsible structures for European integration, which reflect those that

deal with Stabilization-Association Progress Dialogue (SAPD). The activities which will be

undertaken by the Ministry of European Integration for achieving this objective are as follows:

Organizing monthly meetings of seven Executive Commissions for European Integration

(ECEI): ECEI for Trade, Industry, Customs and Taxes; ECEI for Infrastructure, ECEI

for Internal Market, ECEI for Innovation and Social Cohesion, ECEI for Governing,

ECEI for Economy, Financial Control and Statistics and ECEI for Agriculture, Fishing;

Coordination of compiling the meeting conclusions of the Executive Commissions of

European Integration (ECEI) and monitoring of their application;

Compiling conclusions of the meetings of Working Committees for European

Integration (WCEU) and Ministry Council for European Integration (MCEI);

126

Monitoring and reporting on the work of the Executive Commissions of European

Integration, Working Committee for European Integration (WCEI), and Ministry

Council for European Integration (MCEI).

This objective aims to assure the effective coordination of the financial assistance of EU and

other donators which include all the sectors of public policies local institutions and all the

donators who are acting in this country. This objective consists of two components: The EU

Assistance and the Assistance from the bilateral donators.

The activities which will be implemented by the Ministry of European Integration to achieve

this objective are as follows:

Coordinating the composition of the Strategic National Document (SND) 2014-2020 for

the Instrument of Pre-adhere Assistance (IPA) and its review in annual bases;

Regular monitoring of National IPA project implementation and organizing regular

annual meetings with the Joint Monitoring Committee (JMC) for IPA;

Identifying needs and initiating and developing collaboration with institutions of

application line for the instrument of Technical Assistance and Information Exchange;

Inclusion in needs‟ identification, and the initiation and development of assistance

programs from sector sources and instruments and other sources;

Coordination and regular monitoring of foreign donations (through data update in the

Assistance Management Platform (AMP), compiling and publishing reports every three

months in relation to the donators expenses by the AMP, verifying/validating data in

AMP and organizing missions for AMP evaluation;

The fourth objective aims to ensure the coordination of the resemblance process of the local

legislation with the one of EU. This includes all the sectors and fields of public policies and all

the public institutions of the country. More precisely, this objective consists of two

components: The coordination of resemblance of the local legislation with the Acquis of EU

and the Coordination of the translation of Acquis of EU in all official languages of Kosovo.

The activities that the Ministry of European Integration will carry out to implement this

objective are as follows:

Controlling the accordance of all the project laws compiled by the institutions of Kosovo

with the EU Acquis by compiling Accordance Charts and Accordance Declarations for

each project law;

The coordination of the translation of Acquis of EU in the official languages of Kosovo

through the identification of the corresponding acts, evaluating needs and the volume of

work and planning this process;

Building capacities of the MEI and line institutions for the resemblance of the local

legislation with Acquis of EU and the translation of Acquis of EU in the official

languages of Kosovo.

127

Chart 1. Historic and Expenses according to the base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimation

2016

Estimatio

n

2017

Estimatio

n

The Ministry of European

Integration 1,468,342 1,670,397 1,896,430 1,703,856 1,572,140 1,572,140

The total of programs 1,468,342 1,670,397 1,896,430 1,703,856 1,572,140 1,572,140

Administrative services 1,468,342 1,670,397 1,896,430 1,703,856 1,572,140 1,572,140

The total of programs

according to economical

categories

1,468,342 1,670,397 1,896,430 1,703,856 1,572,140 1,572,140

Number of employees 76 77 85 85 85 85

Salaries and per diems 499,459 528,351 562,603 562,603 562,603 562,603

Goods and services 807,192 1,003,427 1,253,827 1,065,753 934,037 934,037

Municipality expenses 12,714 6,309 30,000 25,500 25,500 25,500

Subventions and transfers 148,978 132,310 50,000 50,000 50,000 50,000

Capital expenses

Financing resources 1,468,342 1,670,397 1,896,430 1,703,856 1,572,140 1,572,140

Governmental grants 1,468,342 1,670,397 1,896,430 1,703,856 1,572,140 1,572,140

Income

Financing from borrowing

Grants from donators

128

THE MINISTRY OF DIASPORA

Mission

The Ministry of Diaspora (MD) is responsible for creating, developing and maintaining

versatile institutional relations between Kosovo and Diaspora members and its emigrants, and

also with organizations and their associations. The mission of MD is to bring nearer Diaspora

to Kosovo, maintain close connections to it, give support for preserving and cultivating the

national, cultural and language identity, and increasing the participation of Diaspora and

emigrants in the socio-economical development of Kosovo.

Current situation

The Republic of Kosovo has a vast Diaspora and the presumption is that between 800

thousand up to 1 million inhabitants or 1/3 of its population lives abroad. Based on the data

from the Central Bank of Kosovo in T/4 for 2013 around 620.8 million euro were annual

remittances from Diaspora and emigrants.

The Government of the Republic of Kosovo has approved the Strategy and Action Plan for

Diaspora and Emigrants 2013-2018. The strategy for the Diaspora and Emigrants is the first

strategic document of Kosovo‟s Government, through which with concrete actions it is aimed

to ensure the advancement of political and social rights of Diaspora, preserve the cultural and

language identity of Diaspora, avoid assimilation, assistance for integration in the countries

where they live and maximal legal and administrative assistance for those who want to help

the economical development of their country.

This year concrete steps have been made in creating bridges between the Diaspora members

and the institutions of the Republic of Kosovo, but also in creating the empowering the

relations among Diaspora itself, i.e. creating the Network of Women in Business, Networking

the Businesses of Diaspora, the Network of Albanian Writers in Emigration, etc.

In Turkey, opened the first Cultural Center of Kosovo for Diaspora and Emigrants (CCKDE),

such centers have been established in Switzerland, Germany, France, Austria, Sweden and

USA. CCKDE in Turkey and Switzerland are functional, whereas in other countries it is

expected to be functional very soon.

The Rule for compiling the Register of Emigrants, associations and other forms of their

organizations has been approved. The MD has prepared all the corresponding material and has

prepared the process of compiling the Register of Diaspora and Emigrants and for associations

and other forms of organizations of emigrants.

The Ministry of Diaspora has equipped with the necessary literature the schools with

additional lessons and all the libraries in the countries where our emigrants live and work.

Like every other year, this year as well, the Ministry of Diaspora, in collaboration with the

municipalities of the Republic of Kosovo and other governing a non-governing institutions,

has organized “Diaspora Days”, a manifestation which aims to offer our fellow countrymen

(who are on holiday) a chance to learn more about the Albanian art, culture and education.

One of the priorities of the Ministry of Diaspora is the attraction of investments from Diaspora

in Kosovo. In this direction many conferences have been organized, aiming to inform our

fellow countrymen about the opportunities that Kosovo offers for investments and the benefits

that would come out of this investment. In this respect, we have been helped by international

organizations, precisely by IOM and UNDP, which have supported in various methods every

activity of the Ministry aiming to attract investments.

129

Objectives

For the short term period 2015-2017, MD plans to achieve these objectives:

1. Promoting and advancing political and social rights of Diaspora;

2. Preserving the identity and empowering the relations with Diaspora;

3. Support for the integration of Diaspora in the welcoming countries;

4. Inclusion of Diaspora in the socio-economical development.

The first objective aims to improve the position of the Diaspora members and emigrants

through the empowerment of their participation in the political and social process in Kosovo.

The activities to achieve this objective are:

Establishing a parliamentary commission for the Diaspora and emigrants within the

Assembly of the Republic of Kosovo;

Creating a General Assembly of Diaspora and Emigrants and assemblies in the

corresponding countries where the Diaspora and emigrants live and work;

The Register of Diaspora and Emigrants and other forms of organization of emigrants;

Facilitating the access in the administrative services of Kosovo for the Diaspora

members and emigrants.

The second objective aims the inclusion of as many students, whose origin is from Kosovo

and other Albanian territories, in the process of additional lessons in the countries where they

live. The emigrants should be aware of the importance of additional lessons in order to

preserve the language and cultural identity and because of the possibilities that it creates for

their integration in the societies where they live. The activities for achieving this objective are:

Approval and implementation of common project program for developing the additional

lessons in Diaspora;

Providing books and other learning materials, organizing summer and winter schools,

organizing knowledge quizzes, organizing educational excursions in their homeland,

publishing magazines and other publications for children, organizing trainings and

seminars for teachers of additional lessons;

Provide support for developing cultural, literary, artistic and other activities, aiming to

preserve and cultivate the culture and tradition of their origin, promoting cultural and

artistic values of Diaspora members and presenting in front of the cultural audience in

the country where they live, making our culture part of multiculturalism in the countries

where they live;

Collecting exponents with museum values and archived documents of Diaspora

members, which show the history and contribution of emigrants.

The third objective aims the support of MD for the integration of Diaspora members in the

countries where they live and work. The activities for achieving this objective are:

Establishing Cultural Centers of Kosovo for the Diaspora in the countries which are of

interest for the Diaspora and the Republic of Kosovo;

Supporting and organizing the members of Diaspora in associations or other

organizational forms;

130

Collaboration among them through networking of associations and other forms of

organizing;

Facilitating in presenting their needs before the state authorities where they live;

Promoting the Diaspora rights and obligations in the countries where they live and work,

raising the awareness through various campaigns, promoting the success examples of

known personalities from Diaspora.

The fourth objective aims to create the necessary facilitating methods for the investment of

Diaspora‟s capital in Kosovo, and the motivation of direct foreign investments, the

empowerment of their participation in the socio-economical development. The activities for

achieving this objective are:

Organizing conferences, forums, fairs and similar events to promote the investments of

Diaspora in Kosovo;

Functionalizing the Diaspora business networks;

Encouraging the Diaspora for participation in public-private partnership projects;

Inclusion of businesses from Diaspora in the economical zones, business parks,

technological parks and business incubators;

Identifying and engaging professionals from different profiles to be engaged in different

developing programs.

Chart 1.Historic and Expenses according to the base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimation

2016

Estimation

2017

Estimation

The Ministry of Diaspora 1,263,805 1,463,264 3,986,206 1,796,199 1,637,019 1,637,019

The total of programs 1,263,805 1,463,264 3,986,206 1,796,199 1,637,019 1,637,019

Administrative services 1,263,805 1,463,264 3,986,206 1,796,199 1,637,019 1,637,019

The total of programs

according to economical

categories

1,263,805 1,463,264 3,986,206 1,796,199 1,637,019 1,637,019

Number of employees 55 52 66 66 66 66

Salaries and per diems 297,569 307,060 413,460 413,460 413,460 413,460

Goods and services 679,007 988,135 3,412,746 1,227,239 1,068,059 1,068,059

Municipality expenses 10,397 8,106 30,000 25,500 25,500 25,500

Subventions and transfers 129,924 147,528 130,000 130,000 130,000 130,000

Capital expenses 146,908 12,435 - -

- -

Financing resources 1,263,805 1,463,264 3,986,206 1,796,199 1,637,019 1,637,019

Governmental grants 1,263,805 1,463,264 3,986,206 1,796,199 1,637,019 1,637,019

Income - - - - - -

Financing from borrowing - - - - - -

Grants from donators - - - - - -

131

REGULATORY COMMISSION OF PUBLIC PROCUREMENT

Mission

The mission of the Regulatory Commission of Public Procurement (RCPP), is the application

of Law for the Public Procurement (LPP), whose primary aim is to ensure the most effective,

transparent and right method to use the public funds, public resources and all the funds and

other resources of the contracting authorities in Kosovo, by determining the terms and

conditions that will be applied, the procedures that will be followed, the rights that will be

respected and the obligations that will be fulfilled by the people, economical operators,

enterprises, contracting authorities, and public entities which develop, are included, participate

or are interested in the procurement activities.

Current situation

The Regulatory Commission of Public Procurement continues to supervise the application of

the LPP dispositions and the rules drawn by the RCPP based on the law authorization.

Because of this, RCPP prepares and applies a suitable methodology and mechanism of

reporting supported by the electronic management of information.

The RCPP‟s website has been advanced and designed with new menus and the information

upload has been done in three languages as foreseen by the LPP, and the publication of all the

announcements and information dealing with public procurement.

RCPP has prepared the annual report which is required by the LPP, aiming to give a general

and accurate evaluation of the national procurement system and specific evaluation of the

accordance/discordance grade from the individual contractual authorities.

RCPP continues to support Kosovo‟s Institute for Public Administration and other authorities

of training and education in order to ensure the rise of professionalism in the public

procurement. RCPP is preparing for the initiation of applying the electronic procurement and

the successful implementation of this project in 2015.

Objectives

To achieve its mission, RCPP in the short term period plans to implement these objectives:

1. Increase the access on information in relation to public tenders and in general in relation to

the Public Procurement (PP);

2. Advancement of the existing system of the public procurement, in accordance with the

requirements that come forth by the Directives of the Public Procurement of the European

Commission,

3. Creating a modern and transparent institutional frame of LPP in accordance with EU

legislation,

4. Qualification of as many procurement officials of contracting authorities and the personnel

of RCPP as trainers for the field of public procurement.

The first objective aims to increase the access on information regarding public tenders and in

general in relation to the public procurement. The activities to complete this objective are:

132

Initiation of applying the electronic procurement, and the successful implementation of

this project;

Advancement and designing of the RCPP webpage with new menus and incorporation of

the information in the three languages as foreseen by the LPP;

Publication of all the announcements and information regarding the public procurement;

Collecting annual reports of signed public contracts from all the contracting authorities

in Kosovo, and the composition of the annual consolidated summary report;

Independence of the network and hosting of the RCPP webpage.

The second objective aims towards the advancement of the existing system of the public

procurement, in accordance with the needs put forward by the Directives of the Public

Procurement of the European Commission. The activities to complete this objective are:

The advancement of public procurement system in Kosovo through the supervision of

the LPP application, via supervising and monitoring activities;

Measuring of the Compatibility and Monitoring of the Performance of Procurement

Entities as Staff in accordance with the Public Procurement System in Kosovo;

Identification of advantages and weaknesses in applying LPP and the procurement rules

approved by RCPP;

Raising the awareness and responsibilities of procurement officials and those whore are

involved in the procurement process through direct meetings, consulting and giving

recommendations supporting on the ascertained findings from the supervision and

monitoring activities;

Giving recommendations and suggestions to the contracting authorities regarding the

right application of LPP and the secondary legislation over the procurement;

Identification of difficulties with which the contracting authorities are faced during the

implementation of procurement activities.

The third objective aims to create a modern and transparent institutional frame of LPP in

accordance with EU legislation. The activities for implementing this objective are:

Compiling of rules and the entire secondary legislation over the public procurement

according to the law enquiries;

Changing and completing the secondary legislation approved according to the needs, and

composing Administrative Guidelines regarding issues which are not précised by law;

Following the application of law, and giving recommendation for improving the public

procurement system and/or enhancement of law;

Giving professional assistance to contracting authorities in the local and central

jurisdiction level aiming the efficiency and adjournment of the procurement system in

general;

Further advancement of the helping table within the Rule Department of RCPP

The fourth objective aims to qualify of as many procurement officials of contracting

authorities and the RCPP personnel as trainers on the field of public procurement. The

activities to achieve this objective are:

Supporting the Kosovo‟s Institute for Public Administration and other training and

educative authorities to ensure the rise of professionalism in the public procurement;

133

Adjournment and continuous perfection of training modules in the field of public

procurement;

Qualification of as many procurement officials of contracting authorities and RCPP

personnel as trainers in the field of public procurement;

The inclusion of as many procurement officials, internal auditors and financial officials

in trainings;

Raise of competences for trainers and quality improvement of the training program;

Raise the awareness of the public regarding the public procurement through seminars,

communications, public debates, brochures, etc.

Chart 1. The historic and expenses according to the base scenario 2015-2017 2012

Current

2013

Current

2014

Budget

2015

Estimation

2016

Estimation

2017

Estimation

Regulative Commission

of Public Procurement 310,197 287,550 1,426,367 878,021 328,021 328,021

The total of programs 310,197 287,550 1,426,367 878,021 328,021 328,021

Administrative services 310,197 287,550 1,426,367 878,021 328,021 328,021

The total of programs

according to economical

categories

310,197 287,550 1,426,367 878,021 328,021 328,021

Number of employees 27 29 33 33 33 33

Salaries and per diems 166,771 168,673 202,611 202,611 202,611 202,611

Goods and services 129,549 109,411 1,203,556 667,210 117,210 117,210

Municipality expenses 13,877 9,466 20,200 8,200 8,200 8,200

Subventions and transfers - - - - - -

Capital expenses - - - - - -

Financing resources 310,197 287,550 1,426,367 878,021 328,021 328,021

Governmental grants 310,197 287,550 350,482 328,021 328,021 328,021

Income - - - - - -

Financing from

borrowing - - 1,075,885 550,000 - -

Grants from donators - - 68,500 33,262 - -

Summary of Key Performance Information

Key Performance Information of

RCPP

2012 2013 2014 2015 2016 2017

Current Current Budge Plan Plan Plan

Number of procurement of AK

monitoring.

Number of monitoring of AK

contract management

24 35 42 45 58 64

11 20 25 35 42 50

Number of publications and written

interpretations, and technical

assistance and consulting for

applying LPP provisions

1,400 1,475 1,500 1,600 1,800 1,880

Number of publications of

procurement activities; 13,300 14,200 15,500 16,200 17,800 18,600

The number of trained officials in PP 489 560 620 660 730 750

134

THE ACADEMY OF SCIENCES AND ARTS OF KOSOVO

Mission

The mission of the Academy of Sciences and Arts of Kosovo (ASAK) is the organization,

development, encouragement and coordination of the science activity and artistic creation in

sections, in study cores, in science and artistic units and in study and research centers.

Current situation

The Academy of Sciences and Arts of Kosovo during 2013 has worked on these projects:

Encyclopedic Dictionary of Kosovo (short term project), the foreseen meetings of the Inter-

academic Council for the Albanian language have been held (long term project), the long term

project The Albanian written in Kosovo in the XX century has been worked on, the

preparation of the entire work of Norbert Joklit has been completed and during 2014 it is

expected to happen its publication. The Projects Climate and projecting parameters for the

main cities of Kosovo and Albania and the Influence of atmospheric over-tensions in the

electro-energetic systems of Kosovo are continuing their work, whereas the project of

Identifying effluent contaminants of urban waters and industry and their treatment has

completed its first phase. In regards to the project Stocktaking of virosus and the sanitarily of

materials of fruit-bearing species and vineyards in Kosovo and Albania has been completed.

Furthermore this work has been published: Monograph Kosovo – English version, the

complete work of Ali Podrimja, and the influence of English in Albanian Language, Literary

Utopia, Juristic Thinking and Writing, Presheva Valley, Solemn Overture, Tahir Emra –

Monograph, Magazines Studies 19, Research 20 and Annual 2012.

Numerous foreseen activities by the work program have been organized, such as: Science

Conference Energy and Environment for Sustainable Development, and science round tables:

Albanian Literature and Encyclopedically Writings, Infiltration and Adaptation of English

Borrowings in the Albanian Language, Employment in the developing and integrating context

of Kosovo.

At the same time during the year there have been inauguration Lectures for the new members

of the Academy.

During the first part of 2014 until now it has been published the Vocabulary of Sounds of

Encyclopedic Dictionary of Kosovo and the following work has been prepared for publication:

Administrative-Territorial Separation of Kosovo 1944-2010, Archaeological research and

studies 2000-2012, Choral Work and the magazine Studies no. 20. Until the end of this year it

is foreseen the publication of the work which are part of the work program for 2014.

Academy‟s budget has marked an increase, and thanks to this all the planned work has been

successfully accomplished regarding the Encyclopedic Dictionary of Kosovo, within the

project the Encyclopedia of Kosovo.

135

Objectives

Within its mission the Academy of Sciences and Arts of Kosovo in the short term period plans

to achieve these objectives:

1. Implementation of the project Encyclopedic Dictionary within the project

Encyclopedia of Kosovo, (long term project);

2. Publishing activity of the Academy (publishing the results of science research);

3. Long term activity of the Inter-academic Council for the Albanian language (in

cooperation with the Academy of Sciences of Albania).

The first objective aims to develop the project Encyclopedic Dictionary within the project the

Encyclopedia of Kosovo (long term project). During 2013 the Vocabulary of Sounds has been

completed and the first phase of this project was finalized. The final vocabulary of

Encyclopedic Dictionary of Kosovo includes around 5900 sounds. The achievement of this

objective in the program of the Academy is foreseen to happen through these activities:

Compiling the sounds of the Encyclopedic Dictionary (around 5900 sounds);

The continuous equipment with working materials for the Lexicographic Encyclopedic

Center (though which the Encyclopedia Project s being implemented).

The second objective aims the implementation of the publishing activity foreseen with the

program of the Academy. In the following years there is an increased number of science and

artistic publications, since the number of the Academy members has been increasing. The

achievement of this objective will be done through the publication of the science studies

results.

The third objective aims the implementation of the project of Inter-academic Council for

Albanian Language (long term activity). This objective is expected to be achieved through

these activities:

Science conferences;

Continuous meetings among Council members;

Science symposiums.

136

Chart 1. The historic and expenses according to the base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimation

2016

Estimation

2017

Estimation

ASAK

Total 774,174 1,044,677 1,146,500 1052500 1052500 1052500

Staff number 55 55 55 55 55 55

Program total 774,174 1,044,677 1,146,500 1,052,500 1,052,500 1,052,500

Salaries and per diems 459,392 613,281 636,000 636,000 636,000 636,000

Goods and services 284,964 423,049 480,000 411,500 411,500 411,500

Municipality expenses 6,837 4,369 10,000 5,000 5,000 5,000

Subventions and transfers 0 0 0 0 0 0

Capital expenses 22,980 0 0 0 0 0

Donation 0 3,978 20,500 0 0 0

Staff number 55 55 55 55 55 55

Financing resources:

Total 774,174 1,044,677 1,146,500 1,052,500 1,052,500 1052500

Government grants 774,174 1,040,700 11,126,000 1,052,500 1,052,500 1,052,500

Income 0 0 0 0 0 0

Borrowing 0 0 0 0 0 0

Donations 0 3,978 20,500 0 0 0

.

137

REGULATORY AUTHORITY OF ELECTRONIC AND MAIL

COMMUNICATION

Mission

The mission of the Regulatory Authority of Electronic and Mail Communication (RAEMC) is

the implementation and drawing of regulations and standards for the further liberalization of

the marked based on the foundation of technological neutrality and regulatory frame of EU for

electronic communication, promoting the competition and the efficient infrastructure and also

guaranteeing services which are right and suitable for the entire territory of the Republic of

Kosovo.

Objectives

The main objectives of RAEMC will be achieved through:

1. The creation and providing legislative preconditions and the regulation for the further

development of infrastructure of informative and communication technology through

the achievement of security and integrity of networks and services for electronic

communication;

2. Stimulation of competitions offers of communicative and mail services;

3. Stimulation of investment through the adaptation and implementation of the modern

communicative technology which will contribute in the development of informative

technology infrastructure;

4. Further liberalization of bandwidth services;

5. Useful and transparent governing and optimal usage of limited resources.

138

Chart 1. The historic and expenses according to the base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimation

2016

Estimation

2017

Estimation

Regulatory Authority

of Electronic and Mail

Communications

632,279 683,253 1,209,200 724,183 749,183 649,183

The total of the

program according to

economical categories

632,279 683,253 1,209,200 724,183 749,183 649,183

Number of employees 33 37 39 39 39 39

Salaries and per diems 266,487 289,557 309,088 309,088 309,088 309,088

Goods and services 251,088 259,370 387,412 327,395 327,395 327,395

Municipality expenses 11,034 12,930 12,700 12,700 12,700 12,700

Subventions and

transfers - - - - - -

Capital expenses 103,670 121,396 500,000 75,000 100,000 -

Financing resources 632,279 683,253 1,209,200 724,183 749,183 649,183

Governmental grants 632,279 683,253 1,209,200 724,183 749,183 649,183

Income - - -

-

Financing from

borrowing - - - - - -

Grants from donators - - - - - -

139

ANTI-CORRUPTION AGENCY

Mission

The Anti-Corruption Agency (ACA) as an independent established entity by law is

responsible for applying the state policies to prevent and fight the corruption in Kosovo. The

agency practices the responsibilities set forward by the Law for the Anti-Corruption Agency.

The Agency‟s field of activity is concentrated in investigating and discovering cases with

penal activity of corruption, presenting tentative to prevent the phenomenon of corruption and

raising the awareness of the public in progressive steps towards the creation of a society were

law and order rule.

Current situation

The Anti-Corruption Agency is developing preliminary investigations in all the cases which

were suspicious of committing penal acts of corruption and follows the penal informing of

State Procurement of the EULEX one.

Furthermore the Agency is monitoring the application of the Anti-Corruption Strategy and the

Action Plan, supervising and controlling the declaration, resource and origin of the wealth of

high level public officials, prevention of cases with conflicts of interests in exercising the

public function. Following the Agency is undertaking different activities aiming to educate

and raise the awareness of the public opinion regarding the consequences that corruption

causes and encouraging them regarding the necessity of being involved to prevent and fight

corruption.

Objectives

For the short term period 2015-2017, ACA plans to achieve these objectives:

1. Complete fulfillment of the legal mandate determined by the law in the field of prevention

and fighting against corruption;

2. The fulfillment and advancement of the legal frame for preventing and fighting corruption;

3. Building and developing internal professional capacities in different fields;

4. Empowerment and cultivation of a collaborative spirit with the responsible institutional

mechanisms to prevent and fight the corruption in Kosovo.

140

Chart 1. The historic and expenses according to the base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimatio

n

2016

Estimatio

n

2017

Estimation

Anti-Corruption Agency 370,000 447,939 485,000 456,306 456,306 456,306

The total of programs 370,000 447,939 485,000 456,306 456,306 456,306

370,000 447,939 485,000 456,306 456,306 456,306

The total of programs

according to economical

categories

370,000 447,939 485,000 456,306 456,306 456,306

Number of employees 35 39 40 40 40 40

Salaries and per diems 236,679 286,822 293,709 293,709 293,709 293,709

Goods and services 111,198 150,390 181,291 154,097 154,097 154,097

Municipality expenses 6,378 3,777 10,000 8,500 8,500 8,500

Subventions and transfers - - - - - -

Capital expenses 15,745 6,950 - - - -

Financing resources 370,000 447,939 485,000 456,306 456,306 456,306

Governmental grants 370,000 447,939 485,000 456,306 456,306 456,306

Income - - - - - -

Financing from borrowing - - - - - -

Grants from donators - - 86,317 86,317 - -

141

ENERGY REGULATORY OFFICE

Mission

The mission of the Energy Regulatory Office (ERO) is to create an efficient functioning,

transparent and non-discriminating energy market, determine the terms and criteria for giving

licenses n the field of electric energy, central heating and gas, monitoring and support for

improving the security of energy furnishing, determining fares and solving claims and contests

in this sector.

Current situation

The Energy Regulation office has paid special attention to the collaboration with the relevant

ministries in the Government of Kosovo, parliamentary commissions of the Kosovo‟s

Assembly and international institutions and organizations such as: The Council of Europe

Energy Regulators (CEER) and Energy Regulation Regional Association (ERRA) to

coordinate the activities that deal with the application of the strategy and politics in the energy

sector.

It has been worked in compiling an adequate legal frame for using the reusable resources of

the energy and cogeneration. AER, USAID and the World Bank have given technical

assistance for implementing this goal.

40 licenses have been issued, transferred and continued for the electrical energy and central

heating sector, whereas in regards to the reusable energy, ERO has issued 23 preliminary

authorizations, out of which 6 final ones

Special importance has been paid to the field of consumer protection, where 1080 consumer

complaints have been solved.

Objectives

1. Collaboration with parties in the energy sector and improvement of the legal frame;

2. Monitoring the energy marked and its development;

3. Protecting consumers and licensed companies in supporting with procedures for

solving contesting issues.

To achieve the first objective – collaboration with parties and the improvement of the legal

frame for years 2015-2017, ERO plans and will undertake these actions:

Creating a regulative frame, which ensures the transparent and non-discriminating

functionality of the energy market based on free market principles and in accordance

with „acquis communautaire‟;

Composition of sublegal acts and determining the energy rates.

To achieve the second objective – monitoring the energy market and its development for the

years 2015-2017, ERO will undertake these actions:

Monitoring of businesses of all the licensed companies;

Monitoring and attendance for improving the security of energy furnishing;

142

Creating favorable conditions for new investments and opening the market for new

heating companies.

To achieve the third objective – protecting consumers and licensed companies in supporting

during the procedures for solving the contests for years 2015-2017, ERO plans to undertake

these actions:

Public consulting on rates and fares;

Public consulting for consumer protection;

Public consulting for licensing.

Chart 1. Historic and expenses according to the base scenario 2015-2017

Energy Regulatory Office

2012

Current

2013

Current

2014

Budget 2015 plan 2016 plan 2017 plan

Programs total 643,501 587,620 674,456 635,156 635,156 635,156

Number of employees 33 33 33 33 33 33

Salaries and per diems 372,319 351,930 372,456 372,456 372,456 372,456

Goods and services 219,893 194,068 240,000 200,700 200,700 200,700

Municipality expenses 10,159 18,626 22,000 22,000 22,000 22,000

Capital expenses 41,130 22,996 40,000 40,000 40,000 40,000

Financing resources 643,501 587,520 674,456 635,156 635,156 635,156

Governmental grants 643,501 587,520 674,456 635,156 635,156 635,156

Chart 2. Key performance indicators

Key performance indicators 2012 2013 2014 2015 2016 2017

Energy Regulatory Office current current budget plan plan plan

Solving consumers‟ claims 182 253 42 - - -

Modified licenses 15 2 - - - -

Transferred licenses - 2 - - - -

Continued licenses 2 1 - - - -

Issued licenses 1 - - - - -

Preliminary authorizations to build new generating

capacities 4 14 - - - -

Final authorizations for building new generating

capacities 1 3 - - - -

143

PRIVATIZATION AGENCY OF KOSOVO

Mission

The Privatization Agency of Kosovo (PAK) was established as an independent public body

which exercises its functions and responsibility in a completely independent manner.

The agency is authorized for administration, including the authorization for the sale, transfer

and/or liquidation of socially owned enterprises and their assets.

Current Situation

At the end of year 2003 the Privatization Agency of Kosovo in its portfolio had 585 socially

owned enterprises. During the year 2013, PAK conducted three (3) privatization waves: Wave

57, Wave 58 and Wave 59, and five sales of the assets of socially owned enterprises under

liquidation (SHAL): SHAL 19, SHAL 20, SHAL 21, SHAL 22, SHAL 23.

During the period 01 January– 31 December 2013, the liquidation procedures for additional

161 Socially-Owned Enterprises were initiated and the respective Liquidation Authorities for

these Enterprises were appointed in respective Regional Offices (RO) of the Privatization

Agency of Kosovo.

During the year 2013 in total 12 initial lists and 36 closing lists were published and a partial

distribution for qualified workers of SOE was made in a total amount of €9,924,575.

A focus and continuous challenge of PAK remains the reorganization and finding of

opportunities for revitalizing Trepça, knowing that PAK exercises the administrative authority

in the capacity of Administrator since the entry into force of the Law on Reorganization, in

November 2011. Being aware of the complexity and difficulties in operating with this

enterprise, the number and approximate value of claims from it and the consequences faced by

the enterprise in the event of failure to approve the reorganization plan by the Special

Chamber, and taking into account that we as Administrators do not have appropriate human

and technical capacity for drafting such a plan, the Board decided to hire a Professional

Service Provider to draft and defend before the Special Chamber the reorganization plan.

Currently, PAK is in the process of hiring such Service Providers and is at the stage of

assessing the offers submitted by these Providers..

Objectives

In order to accomplish its mission, the Privatization Agency of Kosovo, during the mid-term

period is planning to fulfill these objectives:

1. Closing the privatization process by creating new enterprises;

2. Focusing on the sale of assets under liquidation and on the distribution of financial

means to the creditors after the conclusion of SOE liquidation/Distribution of

excessive means of SOE under liquidation;

144

3. Reorganizing and raising the level of cooperation with all stakeholders towards finding

opportunities for the revitalization of Trepca;

4. Sale of assets through public auction and direct negotiation;

5. Distribution of 20% of financial assets to the qualified employees.

Table 1. Background 2012-2014 and base expenses 2015-2017

(in 000' Euro) 2012

current

2013

current

2014

budget

2015

plan

2016

plan

2017

plan

Privatization Agency of Kosovo

Total 8,079,010 7,716,447 11,345,873 9,911,383 5,446,711 4,392,321

Central Administration 4,952,887 5,105,068 5,224,200 4,809,466 4,136,794 3,385,404

Auditing 205,736 50,000 180,000 160,000 100,000 50,000

Legal Department 80,000 50,000 30,000 30,000 30,000 30,000

Reorganization and

administration of SOE 1,214,105 1,169,676 4,300,000 3,690,000 210,000 120,000

Liquidation 955,026 736,447 976,417 816,917 619,917 506,917

Privatization 671,256 605,256 635,256 405,000 350,000 300,000

Total of programs by economic categories

Total 8,079,010 7,716,447 11,345,873 9,911,383 5,446,711 4,392,321

No. of employees 271 271 271 218 184 127

Salaries and Per diem 3,500,000 3,500,000 3,500,000 3,286,391 2,694,594 2,107,404

Goods and Services 4,201,010 3,976,447 7,507,873 6,366,992 2,564,117 2,116,917

Municipal Expenses 98,000 98,000 98,000 98,000 98,000 98,000

Subsidies and Transfers 100,000 80,000 80,000 80,000 60,000 40,000

Capital Expenses 180,000 62,000 160,000 80,000 30,000 30,000

Expenses by sources of financing

Total 8,079,010 7,716,447 11,345,873 9,911,383 5,446,711 4,392,321

Governmental grants - - 4,000,000 3,400,000 20,000 20,000

Own resources 8,079,010 7,716,447 7,345,873 6,511,383 5,426,711 4,372,321

Financing from loans - - -

Grants from donors - - -

Summary of key performance information

Privatization

In 2012, 3 Waves of Privatization through Spin-off; 8 Sales of Assets and 3 Individual Sales.

8 announcement of sale tenders x 5 publications x 7 national newspapers, TV and radio = 280

and 2 publications in international newspapers.

Publications in national and international newspapers about Liquidation process. The result of

publications is that the large number of potential buyers is notified. In total, 49 initial lists and

45 final lists were published

In 2013, 3 Waves of Privatization through Spin-off and 8 Sales of Assets.

7 announcements of sale tenders x 5 publications x 7 national newspapers, TV and Radio =

145

245.

In total 12 initial lists and 36 final lists were published.

In year 2014, 9 Sales of Assets. 9 sales x 5 publications x 7 national newspapers = 315 and

2 publications in international newspapers.

45 initial lists and 45 final lists are expected to be published.

During years 2015-2017 around 1000 assets are expected to get privatized.

146

PROCUREMENT REVIEW BODY

Mission

The mission of the Procurement Review Body (PRB) is to carry out the functions assigned by

the Law on Public Procurement in Kosovo (Law No. 04/L – 042) and Law on the procedure

for the award of concenssions (Law No. 02/L-44) related to complaints filed by different

economic operators.

Current situation

The Procurement Review Body, as an independent institution, has striven to ensure the

oversight of the law implementation and public procurement regulations, as well as the

compliance with legal procedures by the Contracting Authorities, in accordance with LPP and

secondary legislation, relying on the appeals and claims of economic operators, and PRB aims

at guaranteeing these rights.

The objectives for the year 2014 and the following years, include further efforts for the

consolidation of the institution, from the structural standpoing as well as the organization of

work in PRB, consolidation of cooperation with economic operators, contracting authorities

and implementation of communication strategy.

Objectives

In order to accomplish its mission, as per the planned budge and in a mid-term period, PRB

aims to fulfill these objectives:

1. Provide service to economic operators and protect the lawful rights from actions or non-

actions of Contracting Authorities. In reaching this objective a special attention will be

given to the professionalism, efficiency and right decision-making;

2. Increase transparency toward economic operators and general public in order that the

public procurements reach the effectiveness in spending public money;

3. Regular and transparent information about the activity of Procurement Review Body

(PRB), by creating a sustainable and readily monitored system by the business community

and wide public so that PRB could manage the complaints and render meritorious

decisions.

147

Table 1. Background and expenses by base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Assessment

2016

Assessment

2017

Assessment

PRB

Total 253,842 217,422 314,400 283,320 283,320 283,320

No. of employees 18 16 23 23 23 23

Salary and per diem 134,825 120,905 163,865 163,865 163,865 163,865

Goods and services 115,470 94,425 134,535 114,355 114,355 114,355

Municipal expenses 3,547 2,092 6,000 5,100 5,100 5,100

Subsidies and transfers

- - - -

Capital expenses - - 10,000 - - -

Financing sources: 253,842 217,422 314,400 283,299 283,299 283,299

Governmental grants 253,842 217,422 314,400 283,299 283,299 283,299

Own revenues - - - - - -

Financing from loans - - - - - -

Donor grants -

- - - -

Key performance indicators

2012

Current

2013

Current

2014

Budget

2015

Assessmen

t

2016

Assessmen

t

2017

Assessme

nt

Training of staff in public

procurement and in public-

private partnership

5% 10% 20% 20% 20%

Publication of official

documents (decisions)

10%

10% 10% 10% 10%

Review of filed complaints

85% 80% 70% 70% 70%

148

AGENCY FOR FREE LEGAL AID

Mission

The mission of the Agency for Free Legal Aid (AFLA) is to provide free legal aid to all

citizens of the Republic of Kosovo, who meet the prescribed legal requirements, by enabling

them an equal access to justice and compliance with the principle of non-discrimination

against nobody, regardless of ethnicity, race, political affiliation, gender or any other

difference.

Current Situation

Currently the provision of legal aid is extended throughout the territory of the Republic of

Kosovo, through regional offices for free legal aid, in 5 (five) regions: Prishtinë, Prizren, Pejë,

Mitrovicë and Gjilan, and 8 legal aid offices supported by the Project “Advancement of

Gender Justice” - UNDP, in: Graçanicë, Ferizaj, Dragash, Gjakovë, Mitrovicë, Kllokot,

Skenderaj and Klinë.

Based on the fact that free legal aid can not cover the needs of citizens, in the municipalities

where AFLA has not opened its offices for the provision of free legal aid services yes, through

the Project “Advancement of Gender Justice” supported by UNDP, this Agency has created

the mobile Clinic, an extremely important activity, precisely for the reasons mentioned above.

In ten municipalities of the Republic of Kosovo, such as: Prishtinë, Pejë, Gjilan, Mitrovicë,

Ferizaj, Gjakovë, Dragash, Skenderaj Kllokot, and Klinë, by the support of UNDP, AFLA

organized “The Week of Free Legal Aid” as an awareness raising campaign, whose purpose

was to inform and raise the awareness of citizens about the services provided by the Agency

for Free Legal Aid.

Objectives

1. The territorial expansion of legal aid provision and raising the awareness of citizens,

particularly those citizens who meet the requirements for getting free legal aid;

2. Increasing the number of beneficiaries of legal aid and providing free legal aid in

professional manner.

First objective – Territorial expansion of free legal aid is provided by Law no. 04/L -17 on

Free Legal Aid, therefore it is considered a very important objective of AFLA.

AFLA has faced a lack of citizen awareness about this institution, particularly citizens in need

of free legal aid. Therefore, awareness raising is considered a key objective.

Second objective of the Agency for Free Legal Aid is the rise in number of beneficiaries of

free legal aid and provision of qualitative and professional services, taking into account that

around 74 % of the citizens meet the requirements for the provision of free legal services.

149

Table 1. Background and expenses by base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Assessment

2016

Assessment

2017

Assessment

Agency for Free Legal

Aid 284,264 282,609 303,211 278,469 278,469 278,469

Total of Program 284,264 282,609 303,211 278,469 278,469 278,469

Agency for Free Legal Aid 284,264 282,609 303,211 278,469 278,469 278,469

Total of Program by

economic categories 284,264 282,609 303,211 278,469 278,469 278,469

No. of employees 20 21 22 22 22 22

Salary and per diem 122,585 123,782 138,266 138,266 138,266 138,266

Goods and services 148,608 146,869 150,925 128,286 128,286 128,286

Municipal expenses 13,071 11,958 14,020 11,917 11,917 11,917

Subsidies and transfers - - - - - -

Capital expenses 284,264 282,609 303,211 278,469 278,469 278,469

Financing Sources 284,264 282,609 303,211 278,469 278,469 278,469

Governmental grants - - - - - -

Own revenue - - - - - -

Financing from loans - - - - - -

Table 2. Summary of key performance information

Indikatorët Kyç të

Përformancës 2012 2013 2014

2015

Plan

2016

Plan

2017

Plan

Agency for Free Legal Aid

Number of cases 3,872 5,686 6,000 6,000 6,000 6,000

Number of administrative cases 2,103 3,164 3,300 3,300 3,300 3,300

Number of civil cases 1,518 2,215 2,400 2,400 2,400 2,400

Number of criminal cases 242 293 320 320 320 320

Number of minor offence cases 9 14 20 20 20 20

Generation of internal reports 2 8 10 10 10 10

Drafting of bylaws 0 6 3 3 3 3

Project implementation 2 4 2 2 2 2

Digitalization of services 10% 80% 90% 100% 100% 100%

Training organized for AFLA

staff 4 8 5 5 5 5

150

UNIVERSITY OF PRISHTINA

Mission

University of Prishtina “Hasan Prishtina” (UP) is a public autonomous institution of higher

education, which develops academic education, scientific research, artistic creation,

professional counseling and other fields of academic activities. The mission of UP is the

development of an effective educational system which will contribute to the rise in the social

welfare, by providing equal education to all citizens, high quality in the field of scientific

research, innovations and transfer of technology in accordance with the contemporary values

and standards and by respecting the diversity of a prosperous and democratic society.

Current situation

The University of Prishtina has 14 academic units distributed to seven administrative centers,

with approximately 53,363 students for training and preparing the students for the labor

market, who will have an impact on the development of domestic economy. As a public

university UP is the main bearer of the higher education in the Republic of Kosovo and the

main contributor to the accomplishment of national objectives towards increasing the

participation in higher education.

During this year there was an increase in number of students compared with previous years. In

2013 the investments were mainly made in the infrastructure such as: in the premises of

FSHTA in Ferizaj, the construction of the Faculty of Agriculture, completion of Amphitheater

in Economic Faculty, initiation of projection procedures in the Faculty of Medicine, plastering

of façade and thermo isolation of the premises of Philological department, as well as the

replacement of windows, and various renovations in all units of UP, supply with IT

equipment, investment in some labs and expendable material of academic units etc.

Some lesson plans were restructured on the basis of market needs in order to follow the trend

of regional universities and wide. In addition, the university expended the studies with new

programs in some academic units, particularly at the level of Phd studies; a number of

programs have also applied for accreditation and some of them were accredited and the Phd

studies have been initiated.

During 2013 UP prepared a number of regulations for the establishment of institutes under

academic units and different departments. These institutes are at the consolidation and

functioning stage and will serve to advance the research studies and will make special analysis

for third parties that contribute to the increase in UP revenues.

The education reform system, as an integral part also aims at promoting the civil democracy,,

the development of quality management system of higher education.

The major objective of the University remains the establishment and continuation of

cooperation with the regional and international institutions of higher education as well as the

harmonization of curricula with European standards. Since the last year, the objective of UP,

which is the inclusion in the European educational zone, is being accomplished.

Regardless of these results, UP faces these challenges:

151

Lack of study areas,

Large number of students,

Need for labs and IT equipment,

Renovations of old buildings,

Ensuring quality in teaching and learning,

Advancement and increase in number of academic staff.

Objectives

To realize its mission The University of Pristina “Hasan Prishtina” for a medium- term period

2015-2017, has these objectives:

1. Raising the quality in studying and teaching

2. Advancement of scientific researches in UP- transformation of University in an institution

of high education and scientific researches;

3. Extension and maintenance of high education facilities;

4. Improvement and advancement of informative system.

The first objective aims at raising the quality in studying, teaching and learning and also in

scientific researches according to the required rates. The realization of this objective is

arranged to be realized through these activities:

Organization of Summer University of Pristina;

Obtainment of larger involvement of young generation in high education, in

accordance with requirements of working trade;

Raising the capacity in all academic units as per Leading Council planning;

Teachers advancement and qualification, as an activity of UP that ruins from

agreement with MEST for teachers advancement and qualification, who attends extra

modules in Education Faculty and is organized for teachers who has finished high

school. For this program, in order to realize objectives in the appropriate level, UP

plans to give e a monetary measurement in the amount of €750,000 per year;

Students stimulation through scholarships.

The Second objective aims at Advancement of scientific researches, transformation of

University in an institution of high education and scientific researches. The realization

of this objective is arranged to be realized through these activities:

Integration and internationalization of UP in eurpoean and world development

processes of scientific researches for society problems solutions and in economy.

Raising the movability of teachers/researches and students;

Support and stimulation of stuff for participation in international scientific activities;

Raising the number of libraries with contemporary literature.

The third objective aims the space absence elimination in UP and also the achievement of

standards in level with regional universities and beyond. The realization of this objective is

arranged to be realized through these activities.

152

Greater involvement and also constant improvement of students learning conditions;

Advancement of scientific researches in UP- transformation of University in an

institution of high education and scientific researches.

Policy development to provide quality, certification, evaluation, standards and

qualifications;

Creating structures for internal evaluation.

The fourth objective aims at digitizing achievement of all services and eliminations of long

waitings in all academic units. UP for the next three years will invest on service digitizing of

university, some phases of project have already started to be applied. The realization of this

objective is arranged to be realized through these activities:

Digitizing of administrative services in UP;

Technology application of regional and world level;

Corporation for networking different universities with the University of

Pristina;

Training the staff for using all modules of SEMS program;

Supplying all units with modern informative technology.

The following table shows costs of basis policy of UP and doesn't include costs of any new

policy or any investment that starts in 2015 and further.

Table 1. Background and expenses by base scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Assessment

2016

Assessment

2017

Assessment

University of

Pristina 24,630,347 25,516,720 29,731,253 25,063,339 25,063,339 25,063,339

Total 24,630,347 25,516,720 28,238,590 25,063,339 25,063,339 25,063,339

No. of employees 2,142 2,142 2,155 2,230 2,230 2,230

Salary and per diem 18,258,818 18,877,488 19,283,075 16,175,632 16,175,632 16,175,632

Goods and services 3,132,575 2,729,461 3,130,862 3,256,233 3,256,233 3,256,233

Municipal expenses 930,500 884,842 1,061,191 868,012 868,012 868,012

Subsidies and

transfers 1,236,970 1,292,455 1,314,000 1,314,000 1,314,000 1,314,000

Capital expenses 1,071,485 1,732,474 3,449,462 3,449,462 3,449,462 3,449,462

Financing resources: 24,630,347 25,516,720 29,731,253 25,063,339 25,063,339 25,063,339

Government grants 15,225,493 16,138,418 19,644,053 20,019,739 20,019,739 20,019,739

Own revenue 9,404,854 9,378,302 10,087,200 5,043,600 5,043,600 5,043,600

Financing from loans 0 0 0 0 0 0

Donors grants 0 0 0 0 0 0

153

Proposal of new policy in the University of Pristina

Total

5,043,600 5,043,600 5,043,600

Number of employees

- - -

Salary and daily pay

3,940,107 3,940,107 3,940,107

Goods and services

446,493 446,493 446,493

Municipal expenses

- - -

Subsidies and

transfers 657,000 657,000 657,000

Capital expenses

- - -

Financing resources:

5,043,600 5,043,600 5,043,600

Government grants

5,043,600 5,043,600 5,043,600

Own revenue

- - -

Total by base

scenario and new

policies

30,106,939 30,106,939 30,106,939

Number of employees

2,230 2,230 2,230

Salary and per diem

20,115,739 20,115,739 20,115,739

Goods and services

3,702,726 3,702,726 3,702,726

Municipal costs

868,012 868,012 868,012

Subsidies and

transfers 1,971,000 1,971,000 1,971,000

Capital expenses

3,449,462 3,449,462 3,449,462

Financing resources:

30,106,939 30,106,939 30,106,939

Government grants

25,063,339 25,063,339 25,063,339

Own revenue

5,043,600 5,043,600 5,043,600

UP can not have a normal operation after the decision for savings from Government in the

financial measurement of 15% in the categories of goods services and municipal costs, since

only in january of 2014 three new facilities have been added, like : FSHTA in Ferizaj,

aphitheater of Economic Faculty and the University Library. Moreover the Government

decision for students tax cuts of 50% in all services offered by UP. In UP there will be

problems in further operations since this cut affects directly in incomes deduction, of

aforementioned institutions. So, we require to increase UP budgetary limits for year 2015-

2017, since the request for additional tools is not new policy for ongoing activities without

which UP can not operate.

154

Table 2. The key indicators of UP

University of Prishtina 2012

Actual

2013 2014 2015 2016 2017

Actual Budget Plan Plan Plan

Number of Professors 1722 1722 1735 1810 1810 1810

No. Administrative staff 420 420 420 420 420 420

The total staff number 2142 2142 2155 2230 2230 2230

Budget for profeesors

salaries 16,494,818 17,088,288 17,418,275 18,099,738 18,099,738 18,099,738

Budget for

administrations salaries 1,764,000 1,789,200 1,864,800 2,016,000 2,016,000 2,016,000

Avarage monthly salary

for a teacher 798 827 837 833 833 833

Avarage salary for

administrative

employees

350 355 370 400 400 400

Involvement of salaries

budget in total budget 74.13 73.98 64.86 69.04 64.04 64.04

Total number of

students at UP 46,460 52,896 57,750 59,084 52,597 52,601

Bachelor level 41,000 46,500 49,800 51,500 45,000 45,000

Master level 5,350 6,248 7,700 7,000 7,000 7,000

Doctoral level (PhD) 110 148 250 584 597 601

Avarage cost for a

student 530 482 515 493 554 554

Involvement of

investments at UP

budget

4.35 6.79 11.60 11.84 11.84 11.84

Laboratory for academic

units and benches 6 4 12 10 14 14

Stationary, didactic

material and other capital 14 14 14 14 14 14

Staff participation

number in scientific

publications

65 70 90 120 140 200

Scholarships for students

on financial aid 1,236,970 1,292,455 1,314,000 1,314,000 1,314,000 1,314,000

Involvement of

scholarships in % at UP

budget

5.02 5.07 4.42 4.51 4.51 4.51

Value of students’

scholarships 900 900 900 900 900 900

Number of students who

won scholarship 1,374 1,436 1,460 1,460 1,460 1,460

Students involved

in scientific research 0 0 10 35 70 100

Creation of instutions

according to foreseen

plan

0 0 2 4 6 4

Activities in order to

internationalize the

University of Pristina

10 25 35 40 30 60

Activities at raising the

quality in education and

science, organizing

scientific conferences

1 1 2 3 4 5

155

CONSTITUTIONAL COURT OF KOSOVO

Mission

Constitutional Court of Kosovo (CCK) as a professional institution, competent and

independent is the final authority for the interpretation of Constitution in Republic of Kosovo

and the compliance of laws in accordance with the Constitution.

Current situation

The Constitutional Court considers 15th of May 2009 as the date where this Court started to

work, respectively on the day of voting Judges of Constitutional Court in Assembly. It is in a

process of internal consolidation and it has employed 60 local employees and 6 national

employees, whereas the unfulfilled place of a local judge will be will be recruited by the

Assembly of Kosovo.

The Constitutional Court of Kosovo from its beginning of working until now has received 796

different requests from institutions, citizens or different interest groups, where 721 requests

are solved, whereas 75 requests are in review procedure. Otherwise Constitutional Court of

Kosovo during a year receives 230-250 requests to review.

Since the beginning of the year (3d of January till 18th of March 2014), the Constitutional

Court has recieved 49 requests. During this period, Constitutional Court has solved 77

reuquests, 72 of them from previous years, and 5 requests recieved during the quarterly

period of 2014.

Objectives

In order to fulfill its mission, the Constitutional Court of Kosovo plans to achieve these

objectives:

1.Obtainment and development of a qualitative personnel for court needs;

2. Advancement of legal framework for efective and efficient work of the court;

3. Functional infractucture and advanced informative technology for suitable work in the

court.

4.Development of an efficient and efective communication and public perceptation.

The first objective “Development and obtainment of qualitative personnel for court needs” is

aimed through these activities:

Analysis and planning of human resources,

Drafting and approval of new court organogram

Personnel further recruitment by identified needs,

Creating Unit for training and career development.

The second objective: “ Advanced legal framework for efective and efficient work of the

court” is aimed to be realized through these activities:

Legal framework application,

156

Drafting of regulations and important instructions conform to the Court needs;

Drafting of guide for legal terminology in working languages of the Court.

The third objective: “Functional infractucture and advanced informative technology for

suitable work in the court” is aimed to be realized through these activities:

Literature enrichment and library digitization,

Digitization system advancement and standardization of existing devices,

Advancement of CDMS system.

The fourth objective: “Development of an efficient and efective communication and public

perception” is aimed to be realized through these activities:

Establishment of communication office

Informing the public for court function

Availability improvement and access in official documents, and also the access of

parties in the court

Communication improvement between court and others

Table 1. Background and expenses by base scenario 2015-2017

2012

Aktuale

2013

Aktuale

2014

Buxheti

2015

Vlerësimi

2016

Vlerësimi

2017

Vlerësimi

Constitutional

Court of Kosovo 1,394,014 1,527,704 1,552,741 1,387,145 1,413,745 1,413,745

Total of Programs 1,394,014 1,527,704 1,552,741 1,387,145 1,413,745 1,413,745

Constitutional Court

of Kosovo 1,394,014 1,527,704 1,552,741 1,387,145 1,413,745 1,413,745

Total of Programs

by economic

categories

1,394,014 1,527,704 1,552,741 1,387,145 1,413,745 1,413,745

No. of employees 56 59 61 61 61 61

Salary and per diem 707,409 737,776 859,439 859,439 859,439 859,439

Goods and services 595,500 592,559 582,302 494,956 494,956 494,956

Municipal expenses 9,701 9,365 11,000 9,350 9,350 9,350

Subsidies and

transfers - 101,042 - - - -

Capital expenses 81,404 86,962 100,000 23,400 50,000 50,000

Financing sources 1,394,014 1,527,704 1,552,741 1,387,145 1,413,745 1,413,745

Governmental grants 1,394,014 1,527,704 1,552,741 1,387,145 1,413,745 1,413,745

Donor grants - 22,457 - - - -

157

KOSOVO COMPETITION COMMITTEE

Mission

The mission of Kosovo Competition Committee (KCC) is creation of free competition, its

protection as a vital segement for promoting a market economy. KCC operates in order to

ensure a free and effective competition in the market in compliance with the "Law on

Competition 2004/36", based on the key pillars that define the protection of competition.

Current situation

Kosovo Competition Committee during these years has identified fields where the free

competition may be violation and has taken measure to prevent that. Additionally, it prevented

dominating positions of some companies by not allowing them to act through internal

agreements but in compliance with trade rules.

Objectives

1. Preventing the abuse with dominating position and prohibited agreements in the form of

cartels through organizing and raising internal capacities;

2. Completing the secondary legislation in the field of competition in compliance with

European directives;

3. Monitoring and initiating investigative procedures for the violators of competition.

Creating free competition and protecting it are vital segments for ensuring a market economy,

and the competition has an important role in economic policies. This institution conceptualizes

its functioning as a catalyst of competition and customer and business interests, with a final

aim to ensure that market will generate a sustainable development.

Table 1. Background and expenses by base scenario 2015-2017

2012

current

2013

current

2014

budget

2015

Assessment

2016

Assessment

2017

Assessment

Kosovo Committee of

Competition 194,112 187,470 255,043 241,779 241,779 241,779

Total of Program by

economic categories 194,112 187,470 255,043 241,779 241,779 241,779

No. of employees 23 23 23 23 23 23

Salary and per diem 100,040 107,037 166,616 166,616 166,616 166,616

Goods and services 91,952 77,985 82,727 70,318 70,318 70,318

Municipal expenses 2,120 2,448 5,700 4,845 4,845 4,845

Subsidies and transfers - - - - - -

Capital expenses - - - - - -

Financing Sources 194,112 187,470 255,043 241,779 241,779 241,779

Governmental grants 194,112 187,470 255,043 241,779 241,779 241,779

Own revenue - - - - - -

Financing from loans - - - - - -

Donor grants

0 - - - -

158

KOSOVO INTELLIGENCE AGENCY

Mission

Based on the Constitutional mandate and the Law on Intelligence in the Republic of Kosovo,

Kosovo Intelligence Agency (KIA) detects, investigates and oversees the threats to security in

the Republic of Kosovo.

Current Situation

In Kosovo Intelligence Agency the following activities are in process:

- Since its establishment, KIA has made operational its basic structure by covering the

responsibilities provided in the applicable legal framework and it is in the stage of

accepting new responsibilities after the process of strategic review of security sector in the

Republic of Kosovo.

- KIA continues the process of making its organizational structure functional and complete,

based on its responsibilities, but also on the needs for larger structural expansion in order

to complete its investigative mandate inside and outside the country.

- KIA continues with its plans and programs for professional and operational advancement,

putting effort on interacting its human, technical and professional capacities in order to

accomplish its constitutional mission.

Objectives

The main objectives in the mid-term plan are:

1. Accomplishment of the mission of Intelligence Agency based on the Constitutional and

Legal mandate;

2. Raising the professional level of investigative structures and advancing of methods,

techniques and technological equipment, which will be used during operational

activities;

3. Extending activities and organization structure throughout the territory of the Republic

of Kosovo, by aiming to identify in a real time and verifying information that are in KIA

interest,

4. Implementing the recommendations of the Government of the Republic of Kosovo

arising from the process of strategic review of security sector in the Republic of

Kosovo.

159

Table 1. Background and expenses by base scenario 2015-2017

2012

current

2013

current

2014

budget

2015

Assessmen

t

2016

assessmen

t

2017

assessment

Kosovo Intelligence

Agency 4,875,285 5,487,896 5,930,000 5,783,000 5,783,000 5,783,000

KIA Program 4,875,285 5,487,896 5,930,000 5,783,000 5,783,000 4,283,000

Total of Program by

economic categories 4,875,285 5,487,896 5,930,000 5,783,000 5,783,000 5,783,000

No. of employees 90 90 90 90 90 90

Salary and per diem 2,696,206 2,974,187 3,000,000 3,000,000 3,000,000 3,000,000

Goods and services 842,488 859,194 900,000 765,000 765,000 765,000

Municipal expenses 10,752 17,796 80,000 68,000 68,000 68,000

Subsidies and transfers 390,000 198,700 450,000 450,000 450,000 450,000

Capital expenses 935,839 1,438,019 1,500,000 1,500,000 1,500,000 1,500,000

Financing sources 4,875,285 5,487,896 5,930,000 5,783,000 5,783,000 5,783,000

Governmental grants 4,875,285 5,487,896 5,930,000 5,783,000 5,783,000 5,783,000

160

KOSOVO COUNCIL FOR CULTURAL HERITAGE

Mission

The mission of Kosovo Council for Cultural Heritage (KCCH) is to assess and protect the

cultural heritage, as non-renewable resource of national value and importance by offering a

basis for building of future on sustainable social, economic and ecological values. The mission

is accomplished through impartial assessment of the rich mosaic of architectural,

archeological, movable, spiritual heritage and cultural landscapes in the Republic of Kosovo.

Current situation

The potential of cultural heritage of the Republic of Kosovo consists of a rich mosaic with

material and imaterial expressions that are created by living practices of humanity dating from

prehistorical times up to the present. This potential, significant for the identity and sustainable

contemporary development, is in unfavorable position. Based on the national legislation,

international policies, norms and practices, preservation, protection and rehabilitatioin of the

potential of cultural heritage belongs to the state. In this respect, the main duties of the Kosovo

Council for Cultural Heritage are: assessment and announcement of the potential of cultural

heritage under the state protection; defining the necessary financial measures in the field of

cultural heritage; assessment/monitoring of projects in the sector of cultural heritage, support

and development of cooperation with national and international specialized institutions, such

as UNESCO, CoE; etc. Kosovo Council for Cultural Heritage through the work with

professional commitment and rational spending, has achieved satisfactory results which are

evident. However, taking into account the unfavorable condition of cultural heritage and the

dedication to improve this situation, during the period 2015-2017, there is an inevitable need

to develop a wide sphere of activities.

Objectives

In order to accomplish its mission the Kosovo Council for Cultural Heritage in a mid-term

period 2015-2017 plans to fulfill these objectives:

1. Strengthening of legal protection of heritage;

2. Integrated preservation of cultural heritage, coordination of actions;

3. Consolidation of endangered cultural heritage;

4. Strategic development of Kosovo Council for Cultural Heritage.

161

Table 1. Background and expenses by base scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Assessme

nt

2016

Assessme

nt

2017

Assessmen

t

Kosovo Council for Cultural

Heritage 176,104 147,831 161,200 148,678 148,678 148,678

Total of Program 176,104 147,831 161,200 148,678 148,678 148,678

Program of Kosovo Council

for Cultural Heritage 176,104 147,831 161,200 148,678 148,678 148,678

Total of Program by

economic categories 176,104 147,831 161,200 148,678 148,678 148,678

No. of employees 9 8 16 16 16 16

Salary and per diem 77,718 65,339 77,718 77,718 77,718 77,718

Goods and services 80,685 80,267 80,482 68,410 68,410 68,410

Municipal expenses 2,418 2,225 3,000 2,550 2,550 2,550

Subsidies and transfers - - - - - -

Capital expenses 15,283 - - - - -

Financing Sources 176,104 147,831 161,200 148,678 148,678 148,678

Governmental grants 176,104 147,831 161,200 148,678 148,678 148,678

Own revenue - - - - - -

Financing from loans - - - - - -

Donor grants - - - - - -

162

ELECTION COMPLAINTS AND APPEALS PANEL

Mission

The Election Complaints and Appeals Panel (ECAP) is a permanent independent body

competent to adjudicate on complaints and appeals allowed, dealing with the electoral process

as stipulated by the Law on General Elections in the Republic of Kosovo and election rules.

ECAP mission is the protection of electoral rights, respectively free elections, fair and

democratic elections according to international standards, both for the central and local level.

The current situation

For regular Municipal Election held on November 3, 2013, ECAP has received 17.510

complaints reviewed, and from them, only for voters out of Kosovo 16.410 complaints. The

number of complaints received and reviewed, gives us to understand that the process of

complaints regarding municipal elections mentioned above, has been very difficult, taking into

account very short term for setting the complaints, and human capacity, respectively small

number of ECAP secretariat that have administered these complaints.

During the local elections of 2013, due to irregularities during the elections, ECAP, issued

fines in the amount of 190.550 euros, from them has realized 183.900 euros which are

transferred in the Budget of the Republic of Kosovo and 6,650 euros have remained

unrealized, which in the future ECAP will collect according to legal procedures.

During this time, ECAP had and has an important role in improving irregularities in the

election process, namely the protection of the right to vote.

Objectives

The main aims of the Election Complaints and Appeals Panel in the medium term are:

1. Settlement of complaints and appeals allowed dealing with the electoral process as

stipulated by the Law on General Elections and the Law on Local Elections and

electoral rules;

2. To continue with the professional capacity building of staff for full operation of the

organizational structure and decision-making of ECAP, in order to implement the

electoral laws in force;

3. Overcome of the appeals process for the Regular Parliamentary elections of the

Republic of Kosovo, which by law must be held in 2014.

163

Table1. History and expenditures under the baseline scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimate

2016

Estimate

2017

Estimate

Election Complaints and

Appeals Panel 187,743 210,855 269,000 252,678 252,678 252,678

Total Program 187,743 210,855 269,000 252,678 252,678 252,678

Election Complaints and

Appeals Panel Program 187,743 210,855 269,000 252,678 252,678 252,678

Total program by economic

categories 187,743 210,855 269,000 252,678 252,678 252,678

Number of employees 20 20 20 20 20 20

Wages and Salaries 125,902 132,688 160,184 160,184 160,184 160,184

Goods and Services 53,922 70,200 99,616 84,674 84,674 84,674

Utilities 7,920 7,968 9,200 7,820 7,820 7,820

Sources of Financing 187,743 210,855 269,000 252,678 252,678 252,678

Governmental grants 187,743 210,855 269,000 252,678 252,678 252,678

Summary of key performance information:

ECAP, according to its mandate as defined by law, is planning to split the monetary amount

needed to realize - meet its objectives, in the qualitative and quantitative manner and within

the time limit.

For the settlement of the allowed claims and appeals relating to the electoral process "for the

Municipal level, Parliamentary or Presidential, ECAP needs a range of actions and activities

Since in 2014 parliamentary elections should be in the Republic of Kosovo, based on

experiences from previous years, ECAP, approximately can review and decide up to 22,000

complaints about the electoral process whether municipal or parliamentary level. Taking into

account these activities, ECAP, will endeavor with this planned budget to achieve success to

fulfill the main objectives in the medium term plan.

ECAP, with current number of staff engaged aims to achieve a satisfactory performance in the

examination and settlement of claims for the period 2015-2017.

164

INDEPENDENT OVERSIGHT BOARD FOR CIVIL SERVICE

OF KOSOVO

Mission

The mission of the Independent Oversight Board for Civil Service of Kosovo (IOBCSK) is

reviewing and making decisions on appeals against decisions filed by the civil servants against

the decisions of the employing authority in accordance with the rules and principles laid down

in the Law on Civil Service of the Republic of Kosovo.

Current situation

According to the legislation in force during 2013 the Council has succeeded to perform the

following activities:

- During the abovementioned year the Council received 452 complaints and has reviewed and

decided on 440 complaints;

- There are 26 monitoring visits conducted in institutions of central and local level;

- There are 38 observations on recruitment of the management level positions in central and

local institutions;

- Has conducted 166 financial cases, showing good performance in the use of budget

Objectives

1. Oversight of the assessment of the respect and enforcement in practice of the rules and

principles of the Civil Service Law of Kosovo by the country's institutions, central,

local and diplomatic and consular representations of our country abroad;

2. Efficient, professional, impartial and balanced operation in terms of ethnicity and

gender terms;

3. Shall consider and make decisions on appeals of civil servants against the decisions of

the employing authority in all institutions of Civil Service in accordance with the rules

and principles laid down in the Law on Civil Service of the Republic of Kosovo;

4. Shall decide whether the appointments of civil servants at management level are made

in accordance with the rules and principles laid down in the Law on Civil Service of

the Republic of Kosovo.

165

Table1. History and expenditures under the baseline scenario2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimate

2016

Estimate

2017

Estimate

Independent Oversight

Board for Civil Service of

Kosovo

211,976 247,668 259,500 249,578 249,578 249,578

Total Program by economic

categories 211,976 247,668 259,500 249,578 249,578 249,578

Number of employees 23 25 26 26 26 26

Wages and Salaries 151,994 183,687 193,351 193,351 193,351 193,351

Goods and Services 55,701 60,159 61,649 52,402 52,402 52,402

Utilities 4,282 3,821 4,500 3,825 3,825 3,825

Sources of financing 211,976 247,668 259,500 249,578 249,578 249,578

Governmental grants 211,976 247,668 259,500 249,578 249,578 249,578

Table 2. Summary of key performance information

2012 2013 2014

2015

Plan

2016

Plan

2017

Plan

Program

IOBCSK

Indicator 1-

Review of

Complaints

Complaints

received

Complaints

received

Complaints

received

Expected

complaints

Excepted

complaints

Excepted

complaints

385 452 480 480 480 480

Decided Complaints

decided

Will be

decided 100% 100% 100%

385 440 100%

100% 97.35%

Indicator 2-

Monitoring

visits in the

Republic of

Kosovo

Institutions

Performed Performed Will be

performed

Will be

performed

Will be

performed

Will be

performed

112

monitoring

26

monitoring

120

monitoring

120-

monitoring

120-

monitoring

120-

monitoring

Indicator 3-

Monitoring

of

recruitment

of

management

level

positions in

the

institutions

of the

Republic of

Kosovo

Performed Performed Will be

performed

Will be

performed

Will be

performed

Will be

performed

46-

Observatio

n visits

38-

Observation

visits

80-

Observation

visits

80-

Observation

visits

80-

Observatio

n visits

80

Observation

visits

166

STATE PROSECUTOR OFFICE

Mission

State Prosecutor Office mission is successful crime fighting in the Republic of Kosovo and

contribution in ensuring the rule of law which will be based on respect for the Constitution of

the Republic of Kosovo, laws and international conventions. In the exercise of functions;

independence, impartiality, professionalism and the rights and fundamental human freedoms

will be followed.

Current situation

Kosovo Prosecutorial Council (KPC) and the State Prosecutor Office in accordance with the

powers and responsibilities defined by law, are undertaking all actions to build and develop a

prosecutorial system based on principles and values that correspond to the highest European

and best practices and international standards.

KPC and State Prosecutor Office work to ensure rule of law in Kosovo, where the State

Prosecutor is impartial institution, and operates under the Constitution and the law, as an

independent institution with authority and responsibility for the prosecution of persons that

conflict with the law. The state prosecutor in exercising his powers and responsibilities

ensures that the rights and freedoms of citizens guaranteed by the Constitution and

international conventions are respected.

From 1 January 2013 the State Prosecutor Office has started implementing in complete the

Law No.03/L-225 on State Prosecutor Office which has changed the organizational system of

prosecution, where the district and municipal prosecutor offices have become basic prosecutor

offices and the appeal prosecution has been established.

In order to implement the strategic plan for inter-institutional cooperation in combating

organized crime, KPC has issued an action plan for increasing the efficiency of the

prosecutorial system in fighting corruption.

Objectives

State Prosecutor aims that during the exercise of functions to strengthen its role by realizing

strategic objectives as listed below:

1. Combating and preventing crime, criminal acts and other acts prohibited by law;

2. Approval of internal regulations and acts in the KPC regarding establishment of

procedures, clear and objective criteria relating to the appointment, re-appointment,

dismissal, discipline and performance evaluation of prosecutors in accordance with

EU standards and practices;

3. Effective protection of the prosecutorial system from outside interference. Increase of

cooperation between KPC and the Kosovo Police for providing protection for

prosecutor`s in cases of threats or interference from outside;

167

4. Installation of new infrastructure of information technology including an advanced

network (WAN / LAN), Server Room according to standards and Cases Management

Information System (CMIS);

5. Completing the legal infrastructure of Kosovo prosecutorial system.

Table 1. History and expenditures under the baseline scenario2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimate

2016

Estimate

2017

Estimate

State Prosecutor Office 4,399,815 5,411,094 6,872,000 6,587,131 6,527,131 6,587,131

Total Program 4,399,815 5,411,094 6,872,000 6,587,131 6,527,131 6,587,131

Prosecutors and

Administration Program 3,727,176 4,611,047 6,059,054 5,814,034 5,754,034 5,814,034

Special Prosecutor

Program 672,639 594,968 593,650 563,821 563,821 563,821

Program for the Unit for

Protection and Assistance

to Victims

- 205,079 219,296 209,276 209,276 209,276

Total Program by

economic categories 4,399,815 5,411,094 6,872,000 6,587,131 6,587,131 6,587,131

Number of employees 479 510 641 641 641 641

Wages and Salaries 3,252,410 3,880,034 4,842,877 4,842,877 4,842,877 4,842,877

Goods and Services 882,720 1,310,512 1,664,264 1,414,624 1,414,624 1,414,624

Utilities 164,623 138,482 234,859 199,630 199,630 199,630

Capital expenditure 100,062 82,066 130,000 130,000 70,000 130,000

Sources of Financing 4,399,815 5,411,094 6,872,000 6,587,131 6,587,131 6,587,131

Governmental grants 4,359,863 5,411,094 6,631,970 6,347,101 6,28,101 6,347,101

Own source revenues 39,953 - 240,030 240,030 240,030 240,030

Summary of key performance information

During 2013, the prosecutor offices of the Republic of Kosovo had in work a total of 160.371

criminal charges-cases, of which 91.614 are criminal charges - cases remaining from the

previous year, while 68.757 were received during 2013. From them:

Criminal charges of adult perpetrators of criminal acts in total 39.452 of them 13,055

are carried over from 2012, while received in 2013 were 26,397. At the end of 2013

subjects 21.446 were solved.

Criminal charges of juvenile perpetrators of criminal acts a total of 3.295 from them

carried over from 2012 there were 1,565, while received in 2013 are 1,730. In late

2013, 1,426 cases were solved

Criminal charges of unknown perpetrators a total of 83.766 of them 69.461 are carried

over from 2012 and received in 2013 are 14.305. At the end of 2013, 17.843 were

solved.

168

Different criminal cases a total of 27.820 from them carried from 2012 are 7.424 and

received in 2013 were 20.396. At the end of 2013 were solved 11.358 cases.

International legal aid a total of 496, of them 89 carried since 2012 while received in

2013 were 407. At the end of 2013, 213 cases were solved

Cases of the Appeal Prosecutor a total of 4.674 of them are all accepted in 2013. At the

end of 2013, 4.674 were solved.

Cases of State Prosecutor of the Republic of Kosovo in total 868, of them 20 are

carried over from 2012, while 848 were received in 2013. At the end of 2013, 855

cases were solved

Office for Protection and Assistance to Victims in 2013 had a total of 1,128 cases

including: domestic violence, human trafficking, crimes against sexual integrity,

murder.

169

OFFICE OF THE AUDITOR GENERAL

Mission

The mission of the Office of the Auditor General (OAG) is to contribute to a sound financial

management in the public administration, performing quality audits in accordance with

auditing standards recognized internationally and creating confidence in the expenditure of

public funds, to ensure taxpayers' interest in enhancing public accountability.

Current situation

Currently the Office of the Auditor General is addressing the exit strategy of the Auditor

General aimed at securing independence, sustainability and accountability efforts and constant

change.

OAG continues with the publication of reports on time and with quality of the Regularity

audits based on a new approach to auditing. The planned number of audit reports for this

season is 115, i.e. a significantly greater coverage compared to previous years.

The use of non-statutory audit, as well as management audit, performance audit and audit

system helps in the development of good governance and oversight of public finances.

Creation of mechanisms to hold accountable audited entities and tracking them and

modernization of corporate governance.

Objectives

To accomplish its mission, the Office of the Auditor General in the medium term plans to

achieve these objectives:

1. Ensuring local ownership and institutional sustainability;

2. Contribution to the strengthening of good governance;

3. Developing and maintaining audit quality and joint development.

To achieve the first objective of ensuring local ownership and institutional sustainability,

OAG intends to implement the following activities:

Begin implementing the new law on AP and OAG;

Adoption of the new Strategy of Joint Development;

Ensure the implementation of a culture that is oriented toward results.

To achieve the second objective of contributing to strengthening good governance, OAG

intends to implement the following activities:

Consolidation of Regulatory Audit quality and strengthening the Performance Audit and

Management;

170

Addressing new fields of auditing and the introduction of a more focused approach to the

procurement system and on how public services are delivered in other forms (PPP, PE,

privatization);

Continuation of the AAR design on time, with increased quality, based on the greater

involvement of audit and readable reports;

Introduction of new approaches, methods and measures that aim to develop and improve

good governance;

Development of cooperation and communication with civil society in the field of Public

Administration Reform,

To achieve the third objective of developing and maintaining audit quality and joint

development, OAG plans to perform the following activities:

Strengthening the quality function;

Implementation of a new certification scheme compatible with ISSAI;

Increase the number of licensed and certified auditors alongside new auditors.

Table 1. History and expenditures under the baseline scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimate

2016

Estimate

2017

Estimate

Office of the Auditor

General 1,929,879 1,984,405 2,130,753 1,988,028 1,988,028 1,988,028

Total Program 1,929,879 1,984,405 2,130,753 1,988,028 1,988,028 1,988,028

Office of the Auditor

General Program 1,929,879 1,984,405 2,130,753 1,988,028 1,988,028 1,988,028

Total Program by economic

category 1,929,879 1,984,405 2,130,753 1,988,028 1,988,028 1,988,028

Number of employees 142 144 146 146 146 146

Wages and Salaries 1,214,853 1,268,385 1,349,253 1,349,253 1,349,253 1,349,253

Goods and Services 615,026 592,293 711,500 604,775 604,775 604,775

Utilities 40,000 28,846 40,000 34,000 34,000 34,000

Subsidies and Transfers

74,500 - - - -

Capital expenditure 60,000 20,381 30,000 - - -

Sources of financing 1,929,879 1,984,405 2,130,753 1,988,028 1,988,028 1,988,028

Governmental grants 1,929,879 1,984,405 2,130,753 1,988,028 1,988,028 1,988,028

Own source revenues - - - - - -

Financing from borrowings

-

Donor grants

- -

171

WATER AND WASTE REGULATORY OFFICE

Mission

Providing and regulating of standards of water supply, sewage and waste services effectively

and transparently in accordance with best European practices, which ensure that providers of

water and wastewater services to provide quality, durable, reliable and priced affordable

services for consumers, given the protection of the environment and public health.

Current Situation

In Kosovo there are seven regional companies providing water and wastewater services

licensed by the Water and Waste Regulatory Office (WWRO) and one company which

deals with the sale of bulk water.

The condition of the companies in the water and wastewater sector is not satisfactory and is

followed by:

Poor level of billing and collection by service providers of Water and Waste,

High level of fixed and operational costs of service providers and

Water losses on a large scale.

Objectives

1. Supply with water on 24 hours for customers according to international standards;

2. Establish service standards and raising collection rates and billing;

3. Protection of consumers' interests;

4. Billing based on meter reading;

5. Monitoring and reporting the performance of service providers.

172

Table 1: History and expenditures under the baseline scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimate

2016

Estimate

2017

Estimate

Water and Waste

Regulatory Office 318,024 313,222 359,000 334,318 334,318 334,318

Total Program

313,214 359,000 334,318 334,318 334,318

Total Program by

economic category 318,024 313,214 359,000 334,318 334,318 334,318

Number of employees 19 18 21 21 21 21

Wages and Salaries 161,376 163,818 194,450 194,450 194,450 194,450

Goods and Services 150,902 143,958 156,900 133,365 133,365 133,365

Utilities 5,746 5,438 7,650 6,503 6,503 6,503

Subsidies and Transfers

Capital expenditure

Sources of financing 318,024 313,214 359,000 334,318 334,318 334,318

Governmental grants 318,024 313,214 359,000 334,318 334,318 334,318

Own source revenues

Financing from borrowings - - - - - -

Donor grants - - - - - -

Table 2. Summary of key performance information

Key Performance

Indicators

2012

Current

2012

Current

2014

Budget

2015

plan

2016

plan

2017

plan

Water and Waste

Regulatory Office

Affordable and real fees 318,024 313,213 359,000 386,732 386,732 386,732

Standard water supply

service

Monitoring and Consumer

Protection

173

RAILWAY REGULATORY AUTHORITY

Mission

Railway Regulatory Authority (RRA) regulates and supervises the railway sector in

accordance with the legislation in force in Kosovo and the legislation of the EU, suitable for

Kosovo in this sector.

This law applies to the operation, maintenance and use of rail services and infrastructure and

operations for all trains that use this infrastructure. Railway Regulatory Authority regulates

and supervises the following areas: licensing, security, interoperability, market regulation and

issuance, renewal, amendment and revocation of certificates of safety and security

authorizations.

Current situation

Railway Regulatory Authority is committed to the implementation of the legislation on

railways, policies and supporting the development of this sector.

Creating the conditions for licensing of companies, Security Clearance and Special Permits, to

approximate the standards of participation in railway transport with regional countries.

Monitoring, Inspection of respect for rules and laws related to the railway sector (the

conditions of the license, certificate of security, creating conditions for the safe transport of

goods and passengers). Market opening and creating the legal infrastructure and non-

discriminatory competition.

Objectives

To accomplish its mission, RRA in the medium term plans to achieve these objectives:

Issuance of licenses and special licenses to railway undertakings conform to laws and

EU directives;

To develop the legal infrastructure in the rail sector;

To make the transparent and non-discriminatory market functioning in the railway

sector in accordance with the EU "acquis" rules and

Bringing border crossing arrangements with EU standards.

174

Table 1. History and expenditures under the baseline scenario 2015-2017

2012

Current

2013

Current

2014

Budget

2015

Estimate

2016

Estimate

2017

Estimate

Railway Regulatory

Authority 225,420 305,893 354,200 310,265 310,265 310,265

Total Program by

economic categories 225,420 305,893 354,200 310,265 310,265 310,265

Number of employees 12 20 20 20 20 20

Wages and Salaries 106,205 136,104 174,633 174,633 174,633 174,633

Goods and Services 95,500 145,383 145,567 123,732 123,732 123,732

Utilities 5,860 4,926 14,000 11,900 11,900 11,900

Subsidies and Transfers

Capital expenditure 17,855 19,480 20,000

Sources of financing 225,420 305,893 354,200 310,265 310,265 310,265

Governmental grants 225,420 305,893 354,200 310,265 310,265 310,265

Own source revenues

Financing from

borrowings

Donor grants

175

CIVIL AVIATION AUTHORITY

Mission

The mission of the Civil Aviation Authority (CAA) is to create an environment of civil

aviation in accordance with international standards, through constant monitoring, partnership

with industry and high level of professional competence of personnel.

Current situation Pursuant to the issued law and the regulations, the CAA has certified Prishtina International

Airport "Adem Jashari" to provide air and ground services. CAA has also licensed a provider

for fueling services at Prishtina Airport. Air traffic controllers to provide Air Navigation

Services are also licensed and have issued other certificates to the Aviation Company and staff

for aeronautical services, as defined by law and relevant regulations.

Within the responsibility for continuous supervision of civil aviation safety, CAA conducts a

large number of inspections and audits, which in this context; only during 2013, 43

inspections were conducted to foreign aircraft operating in Kosovo. The audit was conducted

with the organization for maintenance of aircrafts that operates in PIA "Adem Jashari". CAA

is also considering an application with request to issue a certificate for air operator from a

company and the former is assessing the expressed interest for helicopter operations by some

other companies in the Republic of Kosovo. CAA only in the past year has issued 45

certificates to air companies for carriage of dangerous goods.

The Republic of Kosovo, despite the ongoing efforts made by CAA, for reasons that are out of

the scope and responsibilities of the CAA, is not a member of the International Civil Aviation

Organization (ICAO), the European Civil Aviation Conference (ECAC) or the European

Organization for the Safety of Air Navigation (EUROCONTROL). The inability to be a

member in such organizations is damaging the development of the aviation industry in Kosovo

and makes it extremely difficult for CAA.

Objectives

Objectives of the CAA for the period 2015-2017 are the following:

1. Complete normalization of Kosovo airspace

2. Kosovo's membership in the International Aviation Organization

3. Entering into international and regional technical agreements

4. Successful implementation of regulatory responsibilities

5. Drafting and Implementation of Aviation Security State Plan

The first objective aims completion of normalization of Kosovo airspace which will enable to

manage space more efficiently and is expected to reduce aircraft operations costs in the

territory of the Republic of Kosovo. While the responsibility for the operation and supervision

of air space (higher than 7000 meters)is given by NATO to Hungary, the full normalization of

low air space and opening new routes for flights requires a very strong commitment of the

CAA‟s staff.

The second objective aims Kosovo's membership in the International Civil Aviation

Organization (ICAO) the European Civil Aviation Conference (ECAC) and the European

Organization for the Safety of Air Navigation (EUROCONTROL).

176

The third objective aims to link technical agreements with other countries, which is of

particular importance for our country, having in mind that Kosovo is not an equal member of

the international family of nations in the field of civil aviation.

The fourth objective - CAA works hard that through certain actions, every year, to fully

realize its regulatory responsibilities. Aviation is an area of ongoing technological changes and

regulatory, the implementation of this strategic objective requires special dedication each year.

The fifth objective aims at the development and implementation of State Safety Program,

which is a required by the International Civil Aviation Organization (ICAO).

Table 1 Background and Expenses under a baseline scenario 2015-2017

Table 2. Summary of Key Information of the Performance

2012

Actual

2013

Actual

2014

Budget

2015

Evaluation

2016

Evaluation

2017

Evaluation

Civil Aviation Authority

of Kosovo 731,568 729,460 783,000 739,426 739,426 739,426

Total programs 731,568 729,460 783,000 739,426 739,426 739,426

CAA 731,568 729,460 783,000 739,426 739,426 739,426 Program’s Total based on

economical category 789,558 729,460 783,000 739,426 739,426 739,426

Number of employees 27 27 27 27 27 27 Salaries and wages

379,386 459,035 492,508 492,508 492,508 492,508

Goods and services 339,108 258,700 274,330 233,181 233,181 233,181 Municipal expenses

16,043 11,725 16,162 13,738 13,738 13,738

Subsidies and transfers Capital expenses Financial sources 731,568 729,460 783,000 739,426 739,426 739,426

Government grants 731,568 729,460 783,000 739,426 739,426 739,426

Own source revenues

177

Key Indicators of the

Performance

2012

actual

2013

actual

2014

plan

2015

plan

2016

plan

2017

plan

Civil Aviation Authority of Kosovo

Regulations for Implementation of the

Law on Civil Aviation and the Agreement

on the European Common Air issued by

CAA.

Treatment and investigation of civil

aviation events in Kosovo, the number of

events.

Inspections of foreign aircraft operating in

Kosovo

7 9 22 15 17 19

89

129 140 150 160 170

40 43 50 60 66 67

Planned and ad-hoc inspections at the

Airport and to the ground service

providers.

10 6 7 9 10 11

Auditing of aircraft maintenance

organization that operates in PIA "Adem

Jashari".

1 2 3 3 3

Audit to service providers ofair control

PIA - Air Control "Adem Jashari". 2 2 3 4 5 5

Review of applications to be issued with

an air operator certificate and evaluation

of interest of companies for helicopter

operations in the Republic of Kosovo.

2 4 5 5 5 5

Audit to the AC "Adem Jashari" as

training organization 1 3 4 3

Approvals of changes in the provision of

air navigation services in Pristina

International Airport - Air Control "Adem

Jashari".

1 1 4 4 3 3

Giving certificates for transport of

dangerous goods. 34 48 50 52 55 57

178

INDEPENDENT COMMISSION FOR MINES AND MINERALS

Mission

The Independent Commission for Mines and Minerals‟ (ICMM) mission is issuance and

administration of all permits and licenses for mines exploitation, carrying out technical

supervision of mining installations and facilities and develop legal, safety and health

regulations in respective job positions. In order to advise investors, ICMM makes geological

resource assessments, advises investors on potential areas of interest and provides information

on services oriented to any matter relating to the mining sphere of interest.

Current situation

The importance and significance of mineral resources for our country is an irreplaceable

sphere, knowing that Kosovo has potential reserves, tradition and experience in the field of

mining. Independent Commission for Mines and Minerals - ICMM is committed to create a

healthy team and more professional staff, with intention to increase - the capacity and

professional equipment. Good cooperation with the institutions of the Republic of Kosovo,

safe environment in mining activities, transparent information policy based on public access

through the Internet, strong ties with the international community and local investors that will

give Kosovo an advantage in the field of global mining.

Objectives

Objectives that are planned to be realized are listed as below:

1. Licensing of mining companies in accordance with the plan for the management of

mineral resources and mineral Strategy;

2. Monitoring - Inspection and implementation of all laws related to the mining sector

(respecting the license conditions, safety and health at work, environmental protection,

protection of water etc.,) by licensed companies;

3. Attracting investors through promotion of mineral potential that Kosovo possess and

offers.

4. Research activities ( in particular the Metallic minerals and Energetic ones);

5. Sustainable Exploitation of Mineral Resources;

6. Increasing the level of transparency and communication.

179

Table 1 - Background and expenses under a baseline scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Evaluation

2016

Evaluation

2017

Evaluation

Independent

Commission for Mines

and Minerals

1,505,564 1,683,064 1,758,600 1,149,100 1,239,100 1,099,100

Total 1,505,564 1,683,064 1,758,600 1,149,100 1,239,100 1,099,100

No of employees 79 79 79 79 79 79

Salaries and wages 615,801 615,801 645,801 645,801 645,801 645,801

Goods and services 473,763 473,763 402,699 402,699 402,699 402,699

Municipal expenses 36,000 36,000 30,600 30,600 30,600 30,600

Subsidies and transfers - 20,000 20,000 20,000 20,000 20,000

Capital expenses 380,000 537,500 659,500 50,000 140,000 -

Sources of Finances: 1,505,564 1,683,064 1,758,600 1,149,100 1,239,100 1,099,100

Government grants 1,505,564 1,683,064 1,758,600 1,149,100 1,239,100 1,099,100

Table 2. Summary of Performance Key Information

Performance

Key Indicators

2012

Actual

2013

Actual

2014

Budget

2015

Plan

2016

Plan

2017

Plan

Regular

inspections to

the licensed

research

companies

79 96 108 100 100 100

Regular

inspections to

the licensed

exploitation

companies

232 265 251 250 250 250

Periodical

inspection

Exploitation 58 65 62 60 60 60

Inspections in

capital objects 4

180

THE INDEPENDENT MEDIA COMMISSION

Mission

Independent Media Commission (IMC) is an independent body which is responsible for the

regulation, management and supervision of broadcasting frequency spectrum. The IMC

governs the rights, obligations and responsibilities of natural and legal persons who provide

servicesto audio and audiovisual media.

Current situation

Independent Media Commission manages and monitors the transmission frequency band,

monitors programmatic issues and monitors compliance of licensees with IMC under the Law

on IMC. Independent Media Commission is preparing the strategy for transition to Digital

broadcasting in the Republic of Kosovo and other accompanying documents on audiovisual

media services.

Objectives

To accomplish its mission, IMC in mid-term plans to achieve these objectives:

1. Follow the digitalization process in all its complexity;

2. Development of pluralism in media that serves to all citizens of Kosovo;

3. Creation of the conditions for long-term archiving of monitored programs.

To achieve the first objective which is the monitoring of digitization process and the overall

complexity, IMC plans to achieve the following actions:

Establish policies for the digitization process;

Coordination with neighboring countries regarding the digital frequency plan.

To achieve the second objective it is important the development of media pluralism in service

to all citizens of Kosovo, IMC plans to perform the following actions:

Issuance of new licenses based on the decision of the IMC for local frequencies.

To achieve the third objective for creation of the conditions for long-term archiving of

monitored programs, IMC plans to implement the following actions:

Monitoring and archiving of licensed programs to ensure that they are working in

accordance with the Law on IMC and other bylaws.

181

Table 1 Background and expenses under a baseline scenario 2015-2017

2012

Actual

2013

Actual

2014

Budget

2015

Evaluation

2016

Evaluation

2017

Evaluation

Independent Media

Commission

668,403 752,987 1,483,539 1,127,174 727,174 727,174

Program’s Total 668,403 752,987 1,483,539 1,127,174 727,174 727,174

Independent Media

Commission

668,403 752,987 1,483,539 1,127,174 727,174 727,174

The total of the

Program based on

economic category

668,403 752,987 1,483,539 1,127,174 727,174 727,174

Number of employees 29 39 31 31 31 31

Salaries and wages 232,619 296,475 373,769 373,769 373,769 373,769

Goods and services 418,804 430,097 395,770 336,405 336,405 336,405

Municipal expenses 16,980 17,086 20,000 17,000 17,000 17,000

Subventions and transfers - - - - - -

Capital expenses - 9,329 694,000 400,000 - -

Financial Sources 668,403 752,987 1,483,539 1,127,174 727,174 727,174

Government grants 428,015 752,987 1,483,539 1,127,174 727,174 727,174

Own source revenues 240,388 - - - - -

Financing from loans

Grants donators

182

THE CENTRAL ELECTION COMMISSION

Mission

The Central Election Commission (CEC) is a permanent body that prepares, supervises,

directs, and verifies all actions related to the process of elections, referenda and announcement

of results.

Current situation

The Central Election Commission has organized the 2013 local elections for municipal

assemblies in all municipalities of the Republic of Kosovo. Since in 25 municipalities, no

candidate won more than 50 % plus one vote from the total number of votes, the CEC held a

second round of elections for mayors. The municipal elections were also held in three

municipalities in north of Kosovo in 2014.

Central Election Commission, within the constitutional and legal responsibilities and in

accordance with the decision of the President, has organized and administered these elections.

While parliamentary elections are scheduled to be organized this year.

Objectives

The main objectives in the medium term 2015-2017 of the CEC are:

1. Revision of electoral rules in accordance with electoral reform;

2. Maintain and update ballots, staff training and readiness for the organization of

elections;

3. Organization and holding of Local Elections in 2017.

To achieve the first objective “Review of election rules in accordance with electoral reform”

CEC has planned the following activities:

Organizing and holding of elections;

Preparation and approval of ballots and other election materials;

Keeping the Office for Political Parties Registration and Certification of Political

Parties as provided by this law.

To achieve the second objective "maintain and update ballots, training and readiness of staff

for organizing the elections" is provided this activity:

Establish and maintain a list of persons entitled to vote in particular elections.

To achieve the third objective "organization and holding of local elections in 2017" the

following activities are envisioned:

Preparation, publication and presentation of all results;

Certification of election results

183

Table 1 Background and expenses under baseline scenario 2015-2017

2012

actual

2013

actual

2014

budget

2015

Evaluation

2016

Evaluation

2017

Evaluation

CEC 5,450,939 10,386,190 11,534,930 5,204,632 5,204,632 11,488,041

Total Programs 5,450,939 10,386,190 11,534,930 5,204,632 5,204,632 11,488,041

Secretariat 741,462 961,197 1,017,517 888,325 888,325 888,325

Elections 562,931 5,309,514 6,317,413 116,307 116,307 6,399,716

Democratization fund 4,146,546 4,115,479 4,200,000 4,200,000 4,200,000 4,200,000

Totalof Programs based

on economical

categories

5,450,939 10,386,190 11,534,930 5,204,632 5,204,632 11,488,041

No. of employees 85 88 88 88 88 88

Salaries and wages 567,492 625,591 582,937 582,937 582,937 582,937

Goods and services 615,741 5,584,936 6,480,513 374,904 374,904 6,658,313

Municipal expenses 17,023 32,924 61,980 46,791 46,791 46,791

Subventions and transfers 4,146,546 4,115,479 4,200,000 4,200,000 4,200,000 4,200,000

Capital expenses 104,137 27,260 209,500 - - -

Financial Sources 5,450,939 10,386,190 11,534,930 5,204,632 5,204,632 11,488,041

Government grants 5,450,939 10,386,190 11,534,930 5,204,632 5,204,632 11,488,041

Own source revenues - - - - - -

Financing from loans - - - - - -

Grants donators 14,870 - - - - -

184

THE INSTITUTION OF OMBUDSPERSON

Mission

The Institution of Ombudsperson (IO) has the mission to protect, monitor and promote the

rights and freedoms of natural and legal persons from the illegal actions or inactions of public

authorities, other bodies and organizations exercising public authorizations in exchange to the

accountability.

Current situation

IO currently conducts its activity and operations with the Central Office in Pristina and

regional offices in Prizren, Peja, Gjilan, Ferizaj, Gjakova, Gracanica and in the south and

north of Mitrovica.

Based on the Constitution of the Republic of Kosovo, Law on Ombudsperson, as well as other

applicable laws in the Republic of Kosovo, some new and very special responsibilities have

been transferred to IO. Following the transfer of new responsibilities for IO expected to be

adopted through new laws in 2014 (Law against Discrimination, Gender Equality Law, etc.,) it

is expected further increase of the volume of tasks, activities and work intensity. As an

example, only in 2013 an increase of cases (complaints) was reported to be around 25 %

compared to 2012.

IO, for 2014, has approved 63 jobs positions, six officials were elected (appointed) and 57

officials are civil servants. Increasing the number of personnel with the IO, for 2014 compared

with the previous year has raised, with that opportunities for expansion and activity

development associated with the realization - fulfillment of the constitutional mission reached

at better level and better than in 2013.

IO basic restrictions, in the exercise of competences and effective, stable and long-term

function are directly dependent on the lack of offices for work at the Central Office in Pristina

also at the regional/municipal field offices.

Objectives

Based on the mandate and mission of the IO, the aim and the principal objective of IO work is

to take measures and undertake investigation regarding the complaints filed by citizens, in

order to protect and promote with responsibility and professionalism fundamental human

rights and freedoms.

The key objectives of the IO, which are intended to be achieved, are as follows:

1. Increasing the number of review and investigation of cases positively solved,

according to the lawful submissions filed by appellants from the level of 60 % as it

was in 2013 to 90 % during the years 2015-2017;

2. Increasing 100 % the efficiency and number of reviewed cases ex-officio (on its own

initiative) and various legal analyses as fundamental responsibility of work and

function of the IO;

3. Capacity building for professional associates working with the IO, in certain areas,

which would be followed with increased quality of case handling, which was

constantly followed by a quantitative increase between 15-25 % per year;

185

4. Regular membership in universal and regional networks of the Ombudsman Institution

of the Republic of Kosovo ", respectively the IO membership in the International

Ombudsman's institution (IOI), the European Ombudsman Institute (EOI) and

membership in the European Network of National Institutions for Human Rights

(ENNHRI) and waiting to join the International Coordinating Committee of National

Institutions for Human Rights (ICC).

Table 1 Background and expenses based on scenario 2015-2017

2012

Actual

2013

Actual

2014

Budget

2015

Evaluation

2016

Evaluation

2017

Evaluation

Institution of

Ombudsperson 623,318 738,988 1,095,610 1,012,224 1,012,224 1,012,224

Total Programs 623,318 738,988 1,095,610 1,012,224 1,012,224 1,012,224

Institution of

Ombudsperson 623,318 738,988 1,095,610 1,012,224 1,012,224 1,012,224

Total Programsbased on

economical category 623,318 738,988 1,095,610 1,012,224 1,012,224 1,012,224

No. of employees 46 51 63 63 63 63

Salaries and wages 369,772 450,248 596,371 596,371 596,371 596,371

Goods and services 234,832 256,900 459,239 390,353 390,353 390,353

Municipal expenses 18,714 17,410 30,000 25,500 25,500 25,500

Capital expenses - 14,430 10,000 - - -

Sources of Finance 623,318 738,988 1,095,610 1,012,224 1,012,224 1,012,224

Government grants 623,318 738,988 1,095,610 1,012,224 1,012,224 1,012,224

Summary of key performance information

The performance Ombudsperson is dependent and will be achieved through:

Increased quality of work with a growing number of handled cases ex officio and

special legal analysis of at least 30 % in 2015 compared to the year 2014.

After reforms and reorganization completed during 2013 with the IO, the increase of

efficacy, effectiveness and quality of work are proven to be increased by over 23% in

the number of cases received in comparison to 2012;

Shortening the handling time and increase the quality of individual case handling up

to 80 % compared with the year 2012;

Increase by 40% of the number of special reports, ex-officio and reports for special

occasions compared to 2012.

186

KOSOVO JUDICIAL INSTITUTE

Mission

The mission of the Kosovo Judicial Institute (KJI) is to promote the establishment and

continual professional development of judges and prosecutors, raise the quality of professional

and interdisciplinary competencies of candidates for judges and prosecutors; increase

capacities of professional staff of courts and prosecution offices; develop training plans and

professional research activities in order to increase the quality of training in support of the

judiciary and prosecution based on the highest international standards.

Current Situation

Pursuant to law, the main mandate of the KJI is to train judges, prosecutors, candidates for

judges and prosecutors training of other professionals in the field of justice identified by KJI

and implementation of research and publications. KJI realizes its mandate through specific

training programs which include different time periods.

During 2013, KJI drafted Training Framework Program for 2014-2015. Training Framework

Program, for the period of two years, is a summary of the main fields of work for judges,

prosecutors and other professionals identified by KJI which will orient curricula and organize

training through the Plan for the Implementation of the Framework Program for training. The

structure of training and the components of this program are determined through this

Framework Program.

Specific challenges for the Kosovo Judicial Institute in 2014 are as listed below:

Eventual transformation into a KJI into a Justice Academy. The Ministry of Justice

has started the initiative for reformation of legal education, part of which is said to be

this transformation;

Continuation of the trainings for the fifth generation candidates for judges and

prosecutors (for 29 candidates);

Initialization of implementation of distance learning platform (e-learning);

Conduct training for courts and prosecution offices administrative staff;

Coordination with independent institutions of judicial and prosecutorial system;

Coordination of various projects with donors who support KJI;

Increasing of the cooperation with international training institutions.

Objectives

In order to accomplish the mission, KJI plans in the med-term to achieve these objectives:

1. Development and implementation of training programs with high quality;

2. Implementation of the Program for Research and Publications;

3. Organizational structure and development plans.

The first objective aims the development and implementation of training programs of high

quality, and the realization of this objective is planned to be achieved through the following

activities:

187

Design and implementation of the Continuous Training Program for judges and

prosecutors;

Preparatory Organization of Exam for judges and prosecutors candidates for the

purpose of implementation of the original program for candidates for judges and

prosecutors, including their assessment process before and during training;

Design and implementation of initial training program for potential candidates for

judges and prosecutors;

Develop and Implement Training Program for Promotion of recently appointed judges

and prosecutors, and those who pass from one level to another;

Design and implementation of the training program to other professionals in the field

of justice identified by KJI.

The second objective deals with the implementation of the Program for Research and

Publications. Achievement of this objective will be done through these two units:

Unit for research and publication of works in the field of judiciary and prosecution

and

Unit for access to legal resources (library) where the functionality of library is, not

excluding the electronic library.

Through third objective is aimed to advance the organizational structure and development of

plans. In order to accomplish this objective KJI is scheduled to perform the following

activities:

Creating programs and new training methodologies,

Design development plans, laws and regulations of the KJI.

Develop the capacity of the KJI staff.

Table 1 Background and expenses under baseline scenario 2015-2017

2012

Actual

2013

Actual

2014

Budget

2015

Evaluation

2016

Evaluation

2017

Evaluation

Kosovo Judicial Institute 441,475 437,164 652,922 560,545 560,545 560,545

Total 441,475 437,164 652,922 560,545 560,545 560,545

Number of employees 21 25 25 25 25 25

Salaries and wages 143,293 151,568 161,745 161,745 161,745 161,745

Goods and services 281,704 272,098 459,177 390,300 390,300 390,300

Municipal expenses 16,478 13,498 10,000 8,500 8,500 8,500

Capital expenses - - 22,000 - - -

Sources of finances 441,475 437,164 652,922 560,545 560,545 560,545

Government grants 441,475 437,164 652,922 560,545 560,545 560,545

Total program of Kosovo

Judicial Institute 441,475 437,164 652,922 560,545 560,545 560,545

Number of employees 21 25 25 25 25 25

188

Salaries and wages 143,293 151,568 161,745 161,745 161,745 161,745

Goods and services 281,704 272,098 459,177 390,300 390,300 390,300

Municipal expenses 16,478 13,498 10,000 8,500 8,500 8,500

Capital expenses

22,000

Sources of Finance: 441,475 437,164 652,922 560,545 560,545 560,545

Government grants 441,475 437,164 652,922 560,545 560,545 560,545

Table 2 Background and expenses based on scenario 2015-2017

2012

2013

2014

2015

Plan

2016

Plan

2017

Plan

Kosovo Judicial Institute

Indicator 1

Continuous

training

142 training

activities

were

organized

and 1926

judges,

prosecutors

and other

professionals

have been

trained

112 training

activities

were

organized

and 1651

judges,

prosecutors

and other

professionals

have been

trained

KJI drafted

the

Framework

Program

2014-2015.

Based on

Framework

Program

80 training

activities are

planned for

this year in all

fields of

justice

Based on

Framework

Program

120 training

activities are

planned for

this year in

all fields of

justice

120 training

activities

are planned

for this year

in all fields

of justice

120 training

activities are

planned for

this year in

all fields of

justice

Indicator 2

Initial training

During 2012,

56

candidates

for judges

and

prosecutors

from the

fourth

generation of

ILEP

The fifth

generation

composed of

29

candidates

has started

the legal

education

29 candidates

will be

prepared

professionally

The sixth

generation

will start the

training

program (as

envisioned by

KJC and

KPC)

The sixth

generation

will

graduate

and the

seventh will

begin the

training (as

envisioned

by KJC and

KPC)

The seventh

generation

will

graduate and

the next

generation

will begin

training,

dependant

on needs

defined by

KJC and

KPC.

Indicator 3

Advanced

training

35 training

activities

were

organized

and 435

advanced

judges,

prosecutors

have been

trained

31 training

activities

were

organized

and 864

advanced

judges,

prosecutors

have been

trained

KJI drafted

Framework

Program

2014-2015.

Based on

Framework

Program

considerable

number

advanced

activities were

enabled

Based on

Framework

Program

10 training

are planned

for this year

Based on

orientation

program

Trainings

for

advanced

judges and

prosecutors

are planned

depending

on present

needs

Trainings

for advanced

judges and

prosecutors

are planned

depending

on present

needs

189

Indicator 4

Trainings for

judges and

prosecutors

9 training

activities

were

organized for

the

supporting

staff and 196

execution

officials and

professional

associates

have been

trained

5 training

activities

were

organized for

the

supporting

staff and 147

participants

execution

officials and

professional

associates

KJI drafted

Framework

Program

2014-2015.

Based on

Framework

Program

10 activities

for the

mentioned

group were

planned

Based on

Framework

Program

15 training

are planned

during this

year for the

staff of courts

and

prosecution

offices

For the staff

of courts

and

prosecution

offices 15

training

activities

are planned

For the staff

of courts

and

prosecution

offices 15

training

activities are

planned

190

JUDICIAL COUNCIL OF KOSOVO

Mission The mission of the Kosovo Judicial Council (KJC) is a development of an independent

judicial system which will provide impartial services to all citizens and which will be

functional in all aspects of the organization and its functioning. Kosovo Judicial System will be independent, with access for everyone, fair, efficient and

liable in its work and which will be functioning according to the highest standards of honesty,

integrity, professionalism and transparency.

Current situation

Kosovo Judicial System is facing challenges arising from the need to increase the performance

of the judiciary and enforcement of the laws in force that are: the Law on Courts, Law on the

Kosovo Judicial Council and the Law on the Special Chamber of the Supreme Court.

Kosovo Judicial Council has completed and is in the process of substantiation:

Restructuring of the courts in compliance with the law on court;

There are designed the main bylaws by a working group established by the

Implementation Legislation formed by the KJC for full implementation of the

Law on Courts;

There appointment of judges in the Supreme Court, Special Chamber, The

Court of Appeals, Basic Courtand their branch Offices based on the new structures

of the courts is completed;

the KJC has reviewed the implementation of the State Strategy for reducing the

number of old pending backlog cases (2011-2012) and a new Strategy is approved;

There is approved and has commenced the implementation of the Strategy for

Information Technology and Communication (ITC) 2012-2017;

There is made a revision to the internal structure of the Courts for all civil servants

in Court Administration pursuant to the Law on Court;

The investment has continued in Court infrastructure wherein the construction of

the building of Basic Court in Ferizaj and Basic Court in Mitrovica with its branch

in Vushtrri has begun and the consent from the municipality of Gjakova for

construction of the Basic Court in Gjakova has been granted;

The process of KJC budget allocation in specific programs for courts has begun.

Objectives

During the period 2015 -2017 the Kosovo Judicial Council is planning to fulfill its mission

by achieving following objectives:

1. Implementation of constitutional provisions for an independent and unbiased judiciary

and the appointing of Judges on the basis of objective criteria;

191

2. Delegating responsibilities (decentralization) from the KJC, respectively the KJC

Secretariat in Courts;

3. Building and improving the infrastructure in Courts aiming the fulfillment of the needs

arising from the Courts reform;

4. Implementation of the State Strategy for old cases and resolving in timely manner all

cases registered throughout courts.

The first objective aims the implementation of constitutional provisions for an independent

and impartial judiciary and the appointment of judges based on objectivecriteria. This

objective the KJC is planning to fulfill through these activities:

Assignment of judges in vacant positions;

Issuance of bylaws;

Proceeding with court cases in timely manner;

Publication of reports and court rulings;

The second objective aims at delegating responsibilities (decentralization) of the Kosovo

Judicial Council, KJC Secretariat respectively in Courts. In order to meet this objective

following activities are anticipated to be developed:

Budget allocation in special programs on courts;

Providing positions, recruitment and capacity building;

Control and monitoring of the courts.

The third objective aims at the establishing and improving the infrastructure of the courts in

order to meet the needs arising from judicial reform. This objective the Kosovo Judicial

Council has foreseen to developthrough following activities:

Building of new premises for Basic Courts in Ferizaj, Gjakova, Peja, Prizren

and other courts' branches;

Establish the new court branch in Fushe Kosova;

Functionalization of Information Systems in Case File Management (ISCFM) in the

implementation of strategy for KIT;

Provision of equipment for audio and video recording of

sessions in criminal procedures as prescribed in the Criminal Procedure Code (CPC).

The fourth objective concerns the implementation of a national strategy for old cases and

timely resolution of all identified cases in the courts. The issue of resolving the backlog

remains constant aim of the KJC, so for this purpose are provided the following activities:

Promulgation of action plans from the courts;

Monitoring the implementation of the action plan from the KJC;

Reporting on the implementation of the action plan achieved.

192

Table 1. Background and 2015-2017 expenditures under the baseline scenario

2012

Current 2013

Current 2014

Budget 2015

Assessment 2016Assess

ment 2017

Assessment

Kosovo Judicial

Council 16,281,092 16,760,413 20,833,483 19,987,449 19,987,449 18,557,449

Total Programs 16,281,092 16,760,413 20,833,483 19,987,449 19,987,449 18,557,449

The Program of the

Supreme Court

Special Chamber 344.517 458.633 550.930 517.929 517.929 517.929

The Program of the

Court and Secretariat 15,701,244 16,080,500 19,947,619 19,151,416 19,151,416 17,721,416

The Program of the

Unit for Judicial

Performance Review 75.867 63.979 99.755 94.955 94.955 94.955

The Program of the

Office of Disciplinary

Counsel (ODC) 159.465 157.300 235.179 223.149 223.149 223.149

Total Programs

based on economic

categories 16,281,092 16,760,413 20,833,483 19,987,449 19,987,449 18,557,449

Number of employees 1,831 1,844 2.118 2.118 2.118 2.118

Wages and Salaries 10,843,325 11,449,464 13,509,921 13,509,921 13,509,921 13,509,921

Commodities andserv

ices 3,582,897 3,472,471 4,366,587 3,711,599 3,711,599 3,711,599

Utilities 484.224 436.544 606.975 515.929 515.929 515.929

Subsidies and

Transfers 158.324 266.374 250,000 250,000 250,000 250,000

Capital Expenditures 1,212,322 1,135,560 2,100,000 2,000,000 2,000,000 570,000

Sources of

Financing 16,281,092 16,760,413 20,833,483 19,987,449 19,987,449 18,557,449

Government Grants 15,412,867 15,821,818 19,619,583 18,773,549 18,773,549 17,343,549

OSR 868.225 938.595 1,213,900 1,213,900 1,213,900 1,213,900

Financing from loans - - - - - -

Grants Donors - - - - - -

193

Table 2. Summary of Key Performance Information

Performance Key Indicators 2012 2013 2014 2015

Plan

2015

Plan

2015

Plan

Courts Program and Secretariat

Number of cases in court

419.422 456.980 528.334 528.334 528.334

Number of judges engaged

335 365 422 422 422

The average number of cases

per judge 1252 1252 1252 1252 1252

The number of administrative

staff in court 905 986 1139 1139 1139

Average number of

administrative staff per judge 2.7 2.7 2.7 2.7 2.7

Administrative/technical

service 505 505 505 505 505

The Program Office of Disciplinary Counsel (ODC)

The number of cases in the

ODC 511 455 455 650 650 650

The number of inspectors/

disciplinary Counsels engaged 7 7 7 10 10 10

The number of cases per

inspector 73 65 65 65 65 65

Number of professional staff/

administrative ODC 13 13 13 18 18 18

Average number of

administrative staff for an

inspector

1.8 1.8 1.8 1.8 1.8 1.8

The Program Unit for Judicial Performance Review

Number of officials in

performance reviewing 7 7 7 7 7 7

Number of performances per

annum 6 6 6 6 6 6

Number of subjects performed

in a performance 6 6 6 6 6 6

Total subjects performed within

one year 36 36 36 36 36 36

Program Special Chamber of the Supreme Court

The number of cases in SCSC

3819 3819 3819 3819 3819

Number of judges engaged

10 +8

staff

Internat

ional

12 +8

staff

Internati

onal

12 +8 staff

International

12 +8 staff

International

12 +8 staff

International

The average number of cases

per judge 381 381 381 381 381

The number of administrative

staff in SCSC 25 25 32 32 32

Average number of

administrative staff per judge 2.7 2.7 2.7 2.7 2.7

Administrative/technical

service 4 4 4 4 4

194

KOSOVO PROPERTY AGENCY

Mission The mandate of the Kosovo Property Agency (KPA) is to settle (resolve) the applications on

the right to appeal to the Supreme Court, property requirements and demands for the right on

use relating to private immovable property, including agricultural and commercial property,

resulting from the armed conflict that occurred between 27 February 1998 and 20 June 1999

as wall as part of the mandate inherited from the former Housing and Property Directorate

(HPD) such as the implementation of decisions of the Housing and Property Claims

Commission (HPCC) which were pending implementation, management of properties under

HPD administration, the implementation of the rental scheme and implementation of cases in

compensation.

Current situation

The total number of claims received is 42.696. The publication of 42.684 properties is

completed and notification (validation) of 42.514 properties has been made. There has been

completed the verification of the documentation submitted by the parties in the procedure for

42.541 cases, and 40.348 requirements are settled by the Kosovo Property Claims

Commission (KPCC). The distribution of 38.049 decisions of property claimants are carried

out and 23.700 decisions are implemented Currently there are 12.365 properties under administration, of which 1,074 properties are

leased. 791 complaints were filed against KPCC decisions in the Supreme Court of which 435

are settled (decided). Most of the work related tothe resolving of claims should be completed by the end of June

2014 with the possibility that a small number of requests remains to be resolved in August

2014. The implementation process will continue simultaneously with the process of decision-

making and there is planned that the implementation process should generally be completed in

December 2015. The KPA shall be operating even after 2015 in order to manage the properties under its

administration, to lead the voluntary scheme of leasing and other activities.

Objectives To achieve its medium-term mission the KPA plans to achieve following objectives:

1. Resolution of property applications regarding private immovable property, including

farmers' agriculture and commercial holdings and enforcement of decisions;

2. Administration of around 12,400 properties and in the event of agreement

fortransfer of the property/ applicants successful application. The agreement on their

incorporation in voluntary schemes of leasing managedby the KPA. The number of

properties in administration after resolution of all applicationsfrom KPCCisexpected to

grow significantly as the process of deciding on the applications and the distribution

195

and the implementationof these decisions continues as well as the implementation of

leasing scheme;

3. Verification of cadastral documents before 1999 which were taken away from

Kosovo by Serbia, if the draft law which is pending to processed in

Kosovo'sAssemblyisapproved.

First objective – aims at resolving claims relating to private immovable property, including

agricultural and commercial property and the implementation of decisions.Activities in

achieving this objective are:

Completion of document s verification presented in support to the applications from

the Applications and any other responsible party;

Preparation of cases to be presented to the KPCC for deciding;

Distribution of decisions of the Commission to the parties;

Implementation of the decisions of the KPCC or the Judgments of the

Kosovo Supreme Court, received based on the appeals throughevictions for

repossession and for nonpayment of the rent.

The second objective aims property management and in case the successful property right

holderclaimant's request, arrangements for their involvement in voluntary rental scheme

managed by the KPA. Numbers of properties under KPCC administration after decision-

making process are expected to rise significantly as the process of deciding and distribution

and enforcement of requirements continues. Activities to achieve this objective are:

Property management of successful applicants claimant, on their request

Inclusion of the property (if suitable) in the voluntary scheme of leasing with the

agreement of property right holder;

There will be undertaken regular activities in publishing the scheme of leasing to the

properties in order to increase thenumber renting seekers;

Removing of these properties under ex-officio administration, by returning the

properties to the property right holder;

The third objective aims receipt of Cadastral Documents from before 1999 which were taken

from Kosovo by Serbia. Activities in substantiating this objective are:

Comparison of cadastral documents and identification of differences;

Deciding-judging the differences identified between the cadastral documents;

Updating cadastral records under final effective

decisions Verification Commission and Deciding on Properties respectively The

Supreme Court. In case of challenging the Decision of the Commission.

196

Table 1.Background and 2015-2017 expenditures under the baseline scenario

PAK Current

2012 Current

2013 2014

budget 2015 plan 2016 plan 2017 plan

Total economic

categories Program 1,757,204 1,733,854 1,782,000 1,672,569 1,672,569 1,672,569

No. of employees 242 242 242 242 242 242

Wages and Salaries 898.925 905.258 956.462 956.462 956.462 956.462

Commodities and-

services 657.130 629.276 635.028 539.774 539.774 539.774

Utilities 131.794 119.969 96,510 82.333 82.333 82.333

Subsidies and Transfers

6,000

Capital Expenditures 69.355 73.351 94,000 94,000 94,000 94,000

Sources of Financing 1,757,204 1,733,854 1,782,000 1,672,569 1,672,569 1,672,569

Government Grants 1,746,045 1,733,854 1,782,000 1,672,569 1,672,569 1,672,569

The OSR 11,160

Donors' Grants 1,630,729 1,598,188 1,493,808 1,493,808 1,493,808 1,493,808

Table 2. Key performance indicators

Key indicator of the Performance 2012 2013 2014 2015 2016 2017

Current Curren

t budget plan plan plan

Receipt of applications and notifying

the parties Number of applicationsreceived 42.347 42.696 42.900 - - - Number of applicationspublished 41,096 41.146 42.900 - - - Number of the PAK gazette (the no. of

distributed bulletin) - 2 2 - - -

Number of distributed bulletin to - 10,000 10,000 - - - Number of distributed leaflets and

informational materials 22.100 400 500 500 17,000 17,000

Number of properties identified

(notified) 41.660 42.509 42.900 - - -

Number of documents verified 10.319 5,475 2,850 9,000 8,000 12,000

Processing of applications

Number of applications decided-tried 11.220 4,733 1,049 - - - Number of new applications 5.057 3,684 940 - - - Number flee applicationsrestored 6.163 1,049 109 - - - Percentage of applicationsbelonging to

the category-Agricultural land (%) 88% 72% 64% - - -

Percentage of applications belonging to

the category-Commercial property (%) 2% 8% 12% - - -

Percentage of applications belonging to

the category-Residential property (%) 10% 20% 24% - - -

Number of distributed decisions 14.822 7.964 8,123 4.874 - - Number of decisions implemented 7,357 7.838 7.995 6.556 5,330 - Number of appeals challenging the

distributed decisions 167 516 791 892 - -

Property Management

Number of properties in administration 8.186 12.138 16,000 20,000 21,000 21,500 Number of farm holding

properties underadministration 5,386 9.207 12,400 16,000 16.880 17,500

197

The number of commercial properties

inadministration 8 31 100 200 220 200

The number of residential properties

inadministration 2,792 2,900 3,500 3,800 3,900 3,800

Percentage of leased properties (%) 17% 18% 18% 20% 17% 17% The number of new properties included

in the rental scheme 200 253 250 250 200 200

The revenues collected from rented

properties 612.579 592.259 572.626 572.626 572.626 572.626

The revenues transferred to the

identified owners 531.773 494.770 478.372 478.372 478.372 478.372

Deposited revenues held as income to

the unidentified owners (EUR) 48.829 48.579 46.955 46.955 46.955 46.955

Revenuesheld as security deposits 30.416 15.857 15,289 15,289 15,289 15,289 Administrative costs of implementing

the voluntary lease scheme 20.504 27.616 23.919 23.919 23.919 23.919

Evicting Activities

Number of evictions 832 789 - - - -

Number of evictionsfor illegal

occupation 416 301 - - - -

Number of evictionsfor repossession 161 226 - - - - Number of evictionsfor rental non-

payment 120 93 - - - -

Number of evictionsfor refusal to enter

into lease agreement 135 169 - - - -

198

NATIONAL AGENCY FOR PERSONAL DATA PROTECTION

Mission The National Agency for Personal Data Protection (NAPDP) by having an independent status

has the legal responsibility for overseeing the implementation of the rules on protection of

personal data. Advisory services to public and private bodies, making decisions on complaints

filed, inspections and audits, public information and the support and promotion of

fundamental rights on the Personal Data Protection are part of the main activity area within the

mission of the Agency

Current situation

State Agency for Personal Data Protection is in the process of drafting necessary legislation

with bylaws of the Agency. In this way, the Agency wants to ensure that the rights of each

individual on privacy should be protected while processing personal data. The State Agency

for Personal Data Protection was established in June 2011 and during this time it managed to

consolidate professional staff, being in constant commitment to creating a structure with

competent and professionally prepared staff with the solely tendency of creating efficient and

professionally stable administration.

Objectives In order to fulfill its mission in the medium-term period, the NAPDP plans to achieve

following objectives:

1. Educating controllers;

2. Deepening the cooperation and coordination of the activities with other bodies and

institutions, as well as with the international mechanisms and institutions operating in

Kosovo;

3. Handling of complaints;

4. Capacity building and full operationalization;

In order to achieve the first objective in Controllers' Education, the NAPDP is planning to

perform following activities:

Organizing Workshops, Seminars;

Provision of advice on Data Processing.

In order to achieve the second objective of deepening the cooperation and coordination of

activities with other bodies and institutions and international mechanisms and institutions

operating in Kosovo, the NAPDP is planning to perform following activities:

199

Inspections based on annual plan of all public and private controllers who are

processing a great number of personal data.

In order to achieve the third objective of handling the complaints, the NAPDP is planning to

perform following activities:

Handling and consideration of complaints with highpriority within the institution.

In order to achieve the fourth objective of capacity building and the full functioning, the

NAPDP is planning to perform following activities:

Creating training curricula for the officials of Data Protection.

Table 1: Background and expenditures for 2015-2017 under the baseline scenario

2012 Current

2013 Current

2014 Budget

2015

Assessment

2016

Assessment 2017

Assessment

NAPDP

Total 281.001 361.811 396,000 321.700 321.700 321.700

No. of employees 17 19 23 23 23 23

Wages and Salaries 141.724 159.772 184,000 184,000 184,000 184,000

Commodities and-services 105.619 147.111 150,000 127,500 127,500 127,500

Utilities 7.960 11.569 12,000 10,200 10,200 10,200

Subsidies and Transfers - - - - - -

Capital Expenditures 25.698 43.359 50,000 - - -

Sources of Financing 281.001 361.811 396,000 321.700 321.700 321.700

Government Grants 281.001 361.811 396,000 321.700 321.700 321.700

The OSR - - - - - -

Financing from loans - - - - - -

Donors' Grants - 9.290 - - - -

200

RADIO TELEVISION OF KOSOVO

Mission Radio Television of Kosovo (RTK) is a public service broadcaster, offering its services in the

field of broadcasting and other activities, according to the Law on RTK. RTK mission is to provide the audience with balanced and objective information, good quality

educational program, cultural and entertainment as well as to encourage the harmonious

development of democracy and tolerance.

Current situation RTK is investing in transitory production digitalization, while technology and transmission

experts have done studies and outreach extension of digitalization network of RTK.

RTK is making investments in new spaces, new investments in the new studios in order to

make possible a greater efficiency at work.

In 2013 began the second broadcast television channel in Serbian with headquarters in

Pristina, where it started with a few hours and after three months the program has been

expanded to 24 hours of broadcasted program and about 10 hours of their program produced

with their own capacities.

To the informationas the strongest pillar, the RTK continues to give a great importance,

wherein two of television channels broadcast 20 editions of news a day.

The most watched shows around the globe are broadcasted in RTK.

Particular importance was given to the entertainment and sports' programs. During2013 RTK

broadcast Champions League, Europe League, in June the European Basketball Championship

for Women, Summer Athletics World Championships in September World Basketball

Championship for Men, in December the Cup of Football Federations.

RTK also gives importance to the promotion of local sports. RTK has signed an agreement

with the Basketball Club Sigal Prishtina and is transmitting Balkan's League in Basketball.

Also the agreement is made for transmission of Handball Club Pristina in Local and European

Championship.

Objectives

1. Transmission of Football Summer Championship to be held in Brazil and the

Basketball World Championship for men and women;

2. Archive Digitalization;

3. Digital broadcasting;

4. On channel RTK3 and RTK4 there shall be created new spaces for more attractive

informative programs but also entertaining educational and cultural ones.

201

Table 1. Background and basic policy costs in 2015-2017

2012

Current 2013

Current 2014

budget 2015

Assessment 2016

Assessment 2017

Assessment

Radio Television of

Kosovo 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

Total Programs 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

Radio Television of

Kosovo 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

Total Programs based

on

economiccategories 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

No. of workers - - - - - -

Wages and Salaries - - - - - -

Commodities and-

services - - - - - -

Utilities - - - - - -

Subsidies

and Transfers 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

Capital Expenditures - - - - - -

Sources of Financing 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

Government Grants 8,909,999 9,761,000 8,848,000 9,768,500 9,739,800 9,906,400

OSR - - - - - -

Financing from loans - - - - - -

Grant Donors - - - - - -

202

THE AGENCY FOR THE MANAGEMENT OF MEMORIAL

COMPLEXES OF KOSOVO

Mission The Agency For the Management of Memorial Complexes of Kosovo (AMMCK), has as

its mission the creation of opportunities for the functioning of the Agency in accordance with

the applicable law, based on the planning, design, construction and Management of Memorial

Complexes of Kosovo, and is responsible for all complexes and Memorialsof Kosovo and that

the management plan is in compliance with local and international standards.

Current situation So far we drafted the organizational structure of the Agency, which is defined under the

Regulation on Internal Organization and Systematization of Work Positions of AMMCK and

appropriate organogram, which is approved by the Director of AMMCK. The Agency shall function with internal staff that will be employed in the Agency and the

staff that will be employed in Complexes and Memorials.

Objectives:

1. Creating a compact system for Kosovo's Complexes and Memorials;

2. Planning and implementation of projects; Construction of Memorial Complex "Adem

Jashari";

3. Management of Complexes and Memorials;

4. Access and visits to the Complexes and Memorials;

Table 1. Background and expenses under a baseline scenario 2015-2017

2013

Current 2014

budget 2015

Assessment 2016

Assessment 2017

Assessment

The Agency For the Management

of Memorial Complexes of Kosovo Total 769.344 1,167,068 2,086,818 86.818 86.818

No. of workers 4 9 9 9 9

Wages and Salaries 13.413 57.068 57.068 57.068 57.068 Commodities and-services 10,000 30,000 25,500 25,500 25,500 Utilities - 5,000 4,250 4,250 4,250

Subsidies and Transfers - - - - -

Capital Expenditures 745.931 1,075,000 2,000,000 0 0 Sources of Financing 769.334 1,167,068 2,086,818 86.818 86.818 Government Grants 769.334 1,167,068 2,086,818 86.818 86.818 OSR - - - - -

Financing from loans - - - - -

Grants Donors - - - - -

203

Municipal MTEF 2015 – 2017

Municipal funding from government grants and municipal own source

revenues for the year 2015 and assessments for the period 2016-2017, as an

integral part of MTEF 2015-2017

Midterm Expenditure Framework is in principle providing the declaration of strategic

priorities of the Government in the area of governmental fiscal affairs and presents the total

proposal of government grants for municipal funding for the fiscal year 2015 and the midterm

forecast 2016-2017 in the Municipal Midterm Budgetary Framework as an integral part of

MTEF 2015-2017.

The municipal funding system as a new legal framework for the years 2009-2015 has

undergone through progressive reforms respectively major changes in the horizontal and

vertical line of funding. Principles, criteria, formulas applies for allocation of governmental

grants for funding of municipalities for 2015, and the participation of the municipal budget in

the Budget of the Republic of Kosovo have been structured in line with the Law on Local

Government Finance (LLGF) by respecting the budgetary calendar defined by the LPFMA.

On 22 April 2014, the Grants Commission approved the government grants and proposals of

own source revenues according to municipalities in the midterm period, based on specific

proposals- grants by line ministries of MEST and MoH, by taking into account the following

aspects:

Respecting and implementing general principles set forth under LLGF

Analyses of sectorial standards provided by respective ministries for education and

health

State formulas on pre-university education and primary health care, in order to

allocate the specific grants in education and health by municipalities

Macro fiscal framework as basis of the Midterm Expenditure Framework within the

priorities of the government.

Municipalities, from year to year out have had an increased rate of fiscal decentralization and

transparency of municipal budget in formulating, registering/executing and reporting the

budget.

On the level of inter- minister institutional arrangement, the Secretariat of the Grants

Committee on 29 January 2014 has submitted official documents to the line ministries MEST,

MoH, MLGA and MLSW for preparation of specific proposal-grants for pre-university

education and primary health care for 2015 and the assessments for year 2016-2017, including

the financing for the secondary health as an additional competency. Secretariat of Grants

Commission in the Ministry of Finance, in agreement with the Law on Local Government

Finance and the budgetary calendar defined by the Law on Public Financial Management and

Accountability (LPFMA) dated 31 March 2014 has had the first informative meeting with the

new members of the Committee of Grant with four mayors of municipalities: Fushë Kosovë,

Podujevë, Hani i Elezit and Leposaviq. During this meeting have been disclosed two

204

presentations: a) the role and the responsibilities of the members of the Grants Commission

with a one year mandate as well as b) the development of the budgetary process over the

budget planning for the following fiscal year, including the concept of the multi-year planning.

The Secretary of the Grants Commission has also conducted consultative meetings with the

municipal authorities for the previous budgetary assessments and with the department of

Macroeconomics, department of Central Budget, Public and Private Partnership (PPP),

Department of Tax on Property, European Integrations in MoF, office of Prime Minister and

in cooperation with the international partners, such as IMF, WB, EC, USAID, OSCE, etc.

The current system of municipal funding comprises of the advanced fiscal decentralization;

municipalities have considerable competencies for expenditures, competencies for the

provision of public services, authorization for collection of revenues, and an expanded

authority in the management of public finances.

The overall commitment in order to improve the key elements of the process for the

development of the municipal budget has required also some other changes in the format of

presentation of the municipal budget. Therefore, we were based on the main aspects of the

budget process below as follows:

Utilization of budgeting at the level of program and sub-programs in accordance

with the existing structures of the accounting register;

Improvements in the approach of result and performance oriented budgeting; and

Implementation of the concept on multiyear planning of budget/capital and

presentation of all items of budget for the previous year, current budget year and for

the two following years;

The entry into usage of multi-year capital budgeting, including the integration of information

for the planned results in the PIP system and budgeting on the basis of performance. During

this year, the municipalities will draft a strategy for each program with the respective aims

and objectives to achieve results and performance during the budgetary process.

Proposal of municipal budget for the years 2015 – 2017

Taking into account the experiences of previous years and with the purpose of continuing with

the budget process reforms, the municipal budget for 2015 will be constructed according to the

basic structures of programs and sub-programs. In order to improve the comprehensiveness,

transparency and credibility of drafting the municipal budget, it has been aimed that the

drafting of budget be constructed in accordance with the Law on Local Government Finance

and Law on Public Financial Management and Accountability (LPFMA).

1 Municipal Funding Sources for the years 2015-2017

Municipal funding includes: the General Grant, the Specific Grant for Education and the

Specific Grant for Health including funding for secondary health, grants for the additional

competencies, projections of the municipal own source revenues, transfers for the additional

and delegated responsibilities, the extraordinary grants, financial aid from abroad. Grants are

based on the correct, transparent and objective criteria by giving more independency to the

municipalities in their allocation and expenditures.

205

Meanwhile, the aspect of borrowing of municipalities will be as a possible funding option that

is foreseen on the respective law and within the fiscal rule defined in the LPFMA agreed with

the IMF mission.

All of the revenues from the following sources are municipal own source revenues: tax on

property, municipal taxes, fines, tariffs and payments in accordance with the authority granted

to municipalities by LLGF.

The municipal aggregate funding for the period 2015-2017 (million Euro)

Comment: The cost of the increase of salaries by 25%for municipalities in accordance with the Government Decision based

on the calculation of Payroll/ MPA is 42,597,672 euro, whilst the contingency from the Central Budget for funding the

increase of salaries at the municipal level is 10,000,000 euro.

2011 2012 2013 2014 2015 2016 2017

Current Current Current Current Budget Forecast Forecast

1. Government grants 295.90 298.83 309.92 319.52 332.07 335.17 338.80

General grant 114.20 118.70 128.30 137.57 145.76 145.59 147.94

Basic general grant 127.80

Implication from the census 2011,

pursuant to article 35 of LLGF 9.77

Specific grant on health 38.20 39.83 40.43 39.39 42.08 43.92 44.92

Specific grant on education 143.50 140.30 141.19 142.56 144.23 145.66 145.94

Basic funding 142.85 139.09 140.32 142.22 143.89 145.32 145.60

New and on-going policies: 0.65 1.21 0.87 0.34 0.34 0.34 0.34

Centres for excellency 0.04 0.43 0.87 0.34 0.34 0.34 0.34

English language 0.46 0.78

Overtime shift work

Teachers 0.15

Informal education

Cost of l icencing

2. Grants for additional competencies 2.85 2.60 2.60 1.85 2.60 2.60 2.60

Secodnary health care 2.85 2.60 2.60 1.85 2.60 2.60 2.60

3. Transfer of residental services from

MLSW to Skenderaj and Graçanicë

- 0.00 0.00 0.24 0.24 0.24 0.24

Residential Services 0.24 0.24 0.24 0.24

4. Municipal own source revenues 51.88 60.00 63.00 67.23 74.24 75.63 76.80

5. Contigent funding for decentralisation 1.50 - - - - - - MLGA (new municipalities) 1.50

6. TOTAL MUNICIPAL FUNDING 352.13 361.43 375.52 388.84 409.16 413.64 418.44

7. Contingency from the Centra l Budget for

funding the increase of sa laries 10

8. TOTAL MUNICIPAL FUNDING 352.13 361.43 375.52 388.84 419.16 413.64 418.44

Description

206

1 Deçan 3,197,970 2,335,075 946,169 636,892 7,116,106

2 Dragash 3,394,042 2,302,135 803,791 487,030 6,986,998

3 Ferizaj 8,184,958 10,151,546 2,567,866 4,204,689 25,109,059

4 Fushë Kosovë 2,823,176 2,377,659 823,415 1,822,756 7,847,006

5 Gjakovë 7,487,928 7,004,055 2,235,588 3,026,311 19,753,880

6 Gjilan 6,854,173 8,434,193 2,132,078 3,859,953 21,280,398

7 Gllogoc 4,458,511 4,776,086 1,383,848 1,200,874 11,819,319

8 Hani i Elezit 865,478 657,149 222,315 256,258 2,001,199

9 Istog 3,369,804 3,046,842 928,910 1,014,149 8,359,705

10 Junik 624,322 390,710 143,844 91,567 1,250,443

11 Kaçanik 2,647,217 2,543,525 789,889 695,757 6,676,387

12 Kamenicë 3,073,614 2,552,349 853,158 986,433 7,465,553

13 Klinë 3,127,917 3,235,182 910,161 857,767 8,131,028

14 Leposaviq 2,170,664 756,462 325,635 42,888 3,295,649

15 Lipjan 4,563,123 4,788,278 1,361,955 1,342,336 12,055,693

16 Malishevë 4,207,847 5,734,881 1,291,215 755,908 11,989,850

17 Mamusha 818,191 359,283 130,202 64,869 1,372,544

18 Mitrovicë 5,523,924 5,942,343 1,700,144 2,117,292 15,283,703

19 Novo Bërdë 897,591 673,459 159,094 204,672 1,934,815

20 Obiliq 1,797,298 1,786,246 509,483 811,716 4,904,743

21 Pejë 7,698,527 7,244,248 2,280,367 3,394,551 20,617,693

22 Podujevë 6,869,251 7,296,487 2,092,382 1,597,592 17,855,711

23 Prishtinë 14,699,843 15,042,433 4,702,522 27,162,609 61,607,406

24 Prizren 14,356,806 12,962,591 4,203,276 8,275,080 39,797,754

25 Rahovec 4,332,840 4,413,520 1,328,926 1,099,014 11,174,300

26 Shtërpcë 946,649 924,102 164,295 522,371 336,282 2,893,700

27 Shtime 2,193,109 2,438,510 646,021 445,503 5,723,143

28 Skenderaj 4,000,159 4,977,597 1,202,436 133,000 748,155 11,061,347

29 Suharekë 4,629,414 5,104,092 1,412,007 2,117,200 13,262,714

30 Viti 3,653,448 3,898,703 1,110,914 1,008,847 9,671,911

31 Vushtrri 5,343,079 5,596,231 1,651,936 1,675,327 14,266,573

32 Zubin Potok 1,206,609 379,176 156,422 42,888 1,785,096

33 Zveçan 1,118,441 323,938 176,873 42,888 1,662,140

34 Gracanicë 1,614,815 1,385,453 252,389 1,090,771 110,000 1,501,093 5,954,520

35 Kllokot 384,206 235,022 60,432 86,849 766,508

36

Mitrovica e

Veriut 1,606,553 1,450,219 291,424 989,935 90,066 4,428,196

37 Partesh 369,860 318,281 42,250 46,384 776,775

38 Ranillug 648,646 392,269 91,404 92,768 1,225,086

145,760,000 144,230,328 42,085,037 2,603,077 243,000 74,243,213 409,164,654

10,000,000

419,164,654

Contingency from the Central Budget for funding the increase of salaries

Total Municipal Financing

Secondary

Health

Specific Grant

for Education –

Pre-University

Financing

Residential

Services

Total Municipal Financing for 2015

TOTAL

Specific Grant

for Health

Municipal Own

Source

Revenues

Total

municipal

finacing for

2015

MunicipalityNo General grant

207

Comment: undistributed reserves in the amount of 3,991,027 euros in operating expenses will be allocated in the

budget process for funding to cover salaries or other operating expenses will be developed according to the

budget process.

1.1 The General Grant

Municipalities will receive the general grant, which is a grant of a closed system, and they will

use it for exercising the certain municipal competencies in accordance with the legal

framework.

The general grant enables a reasonable rate of sustainability in the municipal revenues, it is

also an adequate tool to settle reconciliation among municipalities, and it enables adequate

allocation of sources to the minority community in the respective municipalities.

Based on LLGF, the amount of the general grant is ten percent (10%) of total budgeted

revenues of the central government, excluding the revenues from the sale of assets, the other

special revenues, dedicated own source revenues and revenues from loans.

With the purpose of leveling the low capacity of own source revenues of the smaller

municipalities, each municipality will receive every year a general fixed amount (flat rate) of

140,000 €, minus 1 € per capita, or 0 € for municipalities that are equal or have a larger

population than 140,000 inhabitants. Indicators that have been used for allocation of the

general grant in municipalities are the following: Number of population is calculated with

eighty nine percent (89%); geographic measures of the municipality with six percent (6%);

number of the minority population in municipality (3%); municipalities where the majority of

population is comprised of the national minorities with two percent (2%).

The general grant in the amount of 145,760,000 euros for 2015 has been approved by the

Grants Commission on 22 April 2014, according to principles, criteria and basic formulae set

forth by LLGF.

Funding of social services as a transferred competency from MLSW to municipalities through

Memorandums of Understanding is included within the general grant of the municipality.

The employees in the Administration of the Municipal Directories of Pre-university Education

in line with the principles and criteria set forth under LLGF should be funded by the General

Grant in Municipalities.

The employees in the Administration of Municipal Directories for Primary Health and

Secondary Health (Graçanicë, Shtërpcë and North Mitrovica), in line with the principles and

criteria set forth under LLGF should be funded by the General Grant in Municipalities.

TOTAL 241,314,535 57,850,119 120,000,000 419,164,654

MUNICIPALITIES - The aggregate expenditure structure for 2015

Municipality

Total Wages and

Salaries (fund 10

and 21)

Operational expenditures from the fund

10 and 21 (Goods, Utitlities, Subsidies)

Capital

expenditures

(fund 10 and 21)

Total

208

In order to implement article 35 of the Law on Local Government Finance No. 03/L-049,

based on the census of population dated 2011 and officially published by KSA in December

2012, including the assessment of the Kosovo Statistics Agency (KSA) for four minority

municipalities which did not take part in the census process, such as; Leposaviq, Zubin Potok,

Zveçan and North Mitrovica. The Government of the Republic of Kosovo with the Decision

No. 09/121 dated 27.03.2013 approved the amendment to Appendix 1 of LLGF for the new

number of population, as well as paragraph 2 of this decision for the implementation of article

35, paragraph 3 of Law on Local Government Finance No. 03/L-049, year 2014 shall be a

transitory year. Meanwhile, with the decision of the Government No. 07/170 dated 14.02.2014

it has been approved the amendments/supplements of Appendix I of LLGF for the number of

the population for the four north municipalities such as Leposaviq, Zveçan, Zubin Potok and

North Mitrovica and according to point 1 of this decision it will be valid only for the year

2014 while there will be no effects for the following years, and decision taking by the Grants

Commission has been based on the statistics of Annex I approved by the Government with the

Decision no. 09/121 dated 27.03.2013.

Structure of General Grant for the period 2011-2017 (million Euro)

2011 2012 2013 2014 2015 2016 2017

Budget Budget Budget Current Buxhet Assessment Assessment

budget revenues (mil euro) 1,056.0 1,187.0 1,283.0 1,278.0 1,457.6 1,455.9 1,479.4

10% od budget revenues (mil euro)105.5 118.7 128.30 127.80 145.76 145.59 147.94

Additional cost

from Central level Implication from the census of population 2011,

pursuant to article 35 of LLGF 9.77

Fixed amount 3.40 3.40 3.40 3.63 3.63 3.63 3.63

Population 2,236,963 2,236,963 2,236,963 1,780,021 1,780,021 1,780,021 1,780,021

Parameters: 89% of the aggregate amount 90.91 102.6 111.2 110.5 118.06 121.4 122.5

Municipal area (km2) 10,901 10,901 10,901 10,901 10,901 10,901 10,901

Parameters: 6% of aggregate amount 6.13 6.9 7.5 7.45 7.9 8.2 8.3

Minority communities in the municipality 116,599 116,599 116,599 107,926 107,926 107,926 107,926

Parameters: 3% of aggregate amount 3.06 3.5 3.7 3.7 3.9 4.3 4.1

Population of minority municipalities 130,255 130,255 130,255 62,031 62,031 62,031 62,031

Parameters: 2% of aggregate amount 2.04 2.3 2.5 2.4 2.6 2.7 2.7

105.5 118.7 128.3 137.57 145.76 145.59 147.94

Ele

men

ts

Criteria Factors

Aggregate

amount

Total General Grant

209

(in m

il. €)

Year 2

015

Year 2

016

Year 2

017

Ye

ar 2

015

Ye

ar 2

016

Ye

ar 2

017

1,4

57.6

1,4

55.9

1,4

79.4

1,5

71.8

1,5

72.5

1,5

98.2

T

ota

l revenues (a

ccord

ing to

Macro

)

10%

145,7

60,0

00

145,5

90,0

00

147,9

40,0

00

(1

14.2

)

(116.6

)

(118.8

)

Ow

n S

ourc

e R

evenues (m

unic

ipal a

nd c

entra

l level)

Fix

ed

Am

ou

nt

140,0

00

3,6

36,6

57

3,6

36,6

57

3,6

36,6

57

1,4

57.6

1,4

55.9

1,4

79.4

142,1

23,3

43

141,9

53,3

43

144,3

03,3

43

89%

126,4

89,7

75

126,3

38,4

75

128,4

29,9

75

6%

8,5

27,4

01

8,5

17,2

01

8,6

58,2

01

3%

4,2

63,7

00

4,2

58,6

00

4,3

29,1

00

2%

2,8

42,4

67

2,8

39,0

67

2,8

86,0

67

142,1

23,3

43

141,9

53,3

43

144,3

03,3

43

Po

pu

latio

n8

9%

Ge

og

rap

hic

size

6%

Min

ority

Po

pu

latio

n in

Mu

nic

ipa

lities

3%

Mu

nic

ipa

lities

with

min

ority

po

pu

latio

n

2%

1D

eçan

40,0

19

2.2

5%

297

2.7

3%

551

0.5

1%

0.0

0%

99,9

81

2,8

43,7

83

232,4

37

21,7

68

-

3,1

97,9

70

3,1

94,2

64

3,2

45,4

89

2D

ragash

33,9

97

1.9

1%

430

3.9

5%

13,5

59

12.5

6%

0.0

0%

106,0

03

2,4

15,8

55

336,5

26

535,6

59

-

3,3

94,0

42

3,3

90,1

10

3,4

44,4

77

3F

eriz

aj

108,6

10

6.1

0%

345

3.1

7%

4,1

93

3.8

9%

0.0

0%

31,3

90

7,7

17,9

17

270,0

03

165,6

48

-

8,1

84,9

58

8,1

75,2

05

8,3

10,0

24

4F

ushë K

osovë

34

,82

7

1.9

6%

83

0.7

6%

4,5

11

4.1

8%

0.0

0%

105,1

73

2,4

74,8

36

64,9

57

178,2

11

-

2,8

23,1

76

2,8

19,9

25

2,8

64,8

67

5G

jakovë

94,5

56

5.3

1%

587

5.3

9%

6,6

79

6.1

9%

0.0

0%

45,4

44

6,7

19,2

28

459,3

96

263,8

59

-

7,4

87,9

28

7,4

79,0

25

7,6

02,0

86

6G

jilan

90,1

78

5.0

7%

392

3.6

0%

2,2

64

2.1

0%

0.0

0%

49,8

22

6,4

08,1

24

306,7

86

89,4

41

-

6,8

54,1

73

6,8

46,0

34

6,9

58,5

43

7G

llogoc

58,5

31

3.2

9%

276

2.5

3%

45

0.0

4%

0.0

0%

81,4

69

4,1

59,2

62

216,0

02

1,7

78

-

4,4

58,5

11

4,4

53,2

75

4,5

25,6

49

8H

ani i E

lezit

9,4

03

0.5

3%

83

0.7

6%

44

0.0

4%

0.0

0%

130,5

97

668,1

85

64,9

57

1,7

38

-

865,4

78

864,5

98

876,7

50

9Is

tog

39,2

89

2.2

1%

454

4.1

7%

3,0

85

2.8

6%

0.0

0%

100,7

11

2,7

91,9

09

355,3

08

121,8

75

-

3,3

69,8

04

3,3

65,8

93

3,4

19,9

48

10

Junik

6,0

84

0.3

4%

74

0.6

8%

4

0.0

0%

0.0

0%

133,9

16

432,3

34

57,9

14

158

-

624,3

22

623,7

35

631,8

44

11

Kaçanik

33

,40

9

1.8

8%

211

1.9

4%

36

0.0

3%

0.0

0%

106,5

91

2,3

74,0

71

165,1

32

1,4

22

-

2,6

47,2

17

2,6

44,1

78

2,6

86,1

87

12

Kam

enic

ë36,0

85

2.0

3%

424

3.8

9%

1,8

64

1.7

3%

0.0

0%

103,9

15

2,5

64,2

30

331,8

30

73,6

39

-

3,0

73,6

14

3,0

70,0

62

3,1

19,1

65

13

Klin

ë38,4

96

2.1

6%

309

2.8

4%

1,2

41

1.1

5%

0.0

0%

101,5

04

2,7

35,5

58

241,8

29

49,0

27

-

3,1

27,9

17

3,1

24,2

97

3,1

74,3

39

14

Leposaviq

13,7

73

0.7

7%

539

4.9

5%

323

0.3

0%

13,7

73

22.2

0%

126,2

27

978,7

21

421,8

31

12,7

60

631,1

25

2,1

70,6

64

2,1

68,2

18

2,2

02,0

23

15

Lip

jan

57,6

05

3.2

4%

338

3.1

0%

3,1

07

2.8

8%

0.0

0%

82,3

95

4,0

93,4

59

264,5

25

122,7

44

-

4,5

63,1

23

4,5

57,7

64

4,6

31,8

52

16

Malis

hevë

54

,61

3

3.0

7%

306

2.8

1%

54

0.0

5%

0.0

0%

85,3

87

3,8

80,8

45

239,4

81

2,1

33

-

4,2

07,8

47

4,2

02,9

15

4,2

71,0

80

17

Mam

usha

5,5

07

0.3

1%

32

0.2

9%

379

0.3

5%

5,5

07

8.8

8%

134,4

93

391,3

32

25,0

44

14,9

73

252,3

49

818,1

91

817,3

73

828,6

78

18

Mitro

vic

ë71,9

09

4.0

4%

331

3.0

4%

2,1

99

2.0

4%

0.0

0%

68,0

91

5,1

09,9

13

259,0

46

86,8

73

-

5,5

23,9

24

5,5

17,3

98

5,6

07,6

10

19

Novo B

ërd

ë6,7

29

0.3

8%

204

1.8

7%

3,2

02

2.9

7%

0.0

0%

133,2

71

478,1

68

159,6

54

126,4

97

-

897,5

91

896,6

77

909,3

15

20

Obiliq

21,5

49

1.2

1%

105

0.9

6%

1,6

55

1.5

3%

0.0

0%

118,4

51

1,5

31,2

90

82,1

75

65,3

82

-

1,7

97,2

98

1,7

95,2

90

1,8

23,0

49

21

Pejë

96,4

50

5.4

2%

603

5.5

3%

8,3

34

7.7

2%

0.0

0%

43,5

50

6,8

53,8

17

471,9

18

329,2

41

-

7,6

98,5

27

7,6

89,3

70

7,8

15,9

45

22

Poduje

vë

88,4

99

4.9

7%

633

5.8

1%

849

0.7

9%

0.0

0%

51,5

01

6,2

88,8

13

495,3

97

33,5

40

-

6,8

69,2

51

6,8

61,0

96

6,9

73,8

27

23

Pris

htin

ë198,8

97

11.1

7%

514

4.7

2%

4,1

46

3.8

4%

0.0

0%

14,1

33,7

87

402,2

65

163,7

91

-

14,6

99,8

43

14,6

82,2

60

14,9

25,3

21

24

Priz

ren

177,7

81

9.9

9%

603

5.5

3%

31,6

82

29.3

6%

0.0

0%

12,6

33,2

66

471,9

18

1,2

51,6

22

-

14,3

56,8

06

14,3

39,6

34

14,5

77,0

22

25

Rahovec

56,2

08

3.1

6%

278

2.5

5%

944

0.8

7%

0.0

0%

83,7

92

3,9

94,1

87

217,5

68

37,2

93

-

4,3

32,8

40

4,3

27,7

58

4,3

98,0

16

26

Shtë

rpcë

6,9

49

0.3

9%

248

2.2

8%

3,1

82

2.9

5%

0.0

0%

133,0

51

493,8

02

194,0

89

125,7

07

-

946,6

49

945,6

76

959,1

29

27

Shtim

e27,3

24

1.5

4%

134

1.2

3%

858

0.7

9%

0.0

0%

112,6

76

1,9

41,6

66

104,8

71

33,8

96

-

2,1

93,1

09

2,1

90,6

20

2,2

25,0

20

28

Skendera

j50,8

58

2.8

6%

374

3.4

3%

109

0.1

0%

0.0

0%

89,1

42

3,6

14,0

12

292,6

99

4,3

06

-

4,0

00,1

59

3,9

95,4

81

4,0

60,1

49

29

Suhare

kë

59,7

22

3.3

6%

361

3.3

1%

575

0.5

3%

0.0

0%

80,2

78

4,2

43,8

95

282,5

25

22,7

16

-

4,6

29,4

14

4,6

23,9

72

4,6

99,1

92

30

Viti

46

,98

7

2.6

4%

270

2.4

8%

258

0.2

4%

0.0

0%

93,0

13

3,3

38,9

35

211,3

07

10,1

92

-

3,6

53,4

48

3,6

49,1

89

3,7

08,0

60

31

Vushtrri

69,8

70

3.9

3%

345

3.1

7%

960

0.8

9%

0.0

0%

70,1

30

4,9

65,0

20

270,0

03

37,9

26

-

5,3

43,0

79

5,3

36,7

72

5,4

23,9

60

32

Zubin

Poto

k6,6

16

0.3

7%

333

3.0

6%

995

0.9

2%

6,6

16

10.6

7%

133,3

84

470,1

38

260,6

12

39,3

08

303,1

67

1,2

06,6

09

1,2

05,3

26

1,2

23,0

71

33

Zveçan

7,4

81

0.4

2%

123

1.1

3%

386

0.3

6%

7,4

81

12.0

6%

132,5

19

531,6

06

96,2

62

15,2

49

342,8

04

1,1

18,4

41

1,1

17,2

61

1,1

33,5

63

34

Gra

canic

ë10,6

75

0.6

0%

131

1.2

0%

3,4

23

3.1

7%

10,6

75

17.2

1%

129,3

25

758,5

74

102,5

23

135,2

28

489,1

64

1,6

14,8

15

1,6

13,0

38

1,6

37,6

00

35

Kllo

kot

2,5

56

0.1

4%

23

0.2

1%

1,1

93

1.1

1%

0.0

0%

137,4

44

181,6

31

18,0

00

47,1

30

-

384,2

06

383,9

11

387,9

91

36

Mitro

vic

a e

veriu

t 12,3

26

0.6

9%

50.0

5%

867

0.8

0%

12,3

26

19.8

7%

127,6

74

875,8

96

3,9

13

34,2

52

564,8

18

1,6

06,5

53

1,6

04,7

84

1,6

29,2

37

37

Parte

sh

1,7

87

0.1

0%

29

0.2

7%

2

0.0

0%

1,7

87

2.8

8%

138,2

13

126,9

86

22,6

96

79

81,8

86

369,8

60

369,5

83

373,4

13

38

Ranillu

g3,8

66

0.2

2%

69

0.6

3%

168

0.1

6%

3,8

66

6.2

3%

136,1

34

274,7

21

54,0

01

6,6

37

177,1

53

648,6

46

648,0

33

656,5

07

1,7

80,0

21

100%

10,8

96

100%

107,9

26

100%

62,0

31

100%

3,6

36,6

57

126,4

89,7

75

8,5

27,4

01

4,2

63,7

00

2,8

42,4

67

145,7

60,0

00

145,5

90,0

00

147,9

40,0

00

Fo

rms

for a

lloc

atio

n o

f the

Ge

ne

ral G

ran

t

Crite

ria

Bu

dg

eta

ry re

ve

nu

es

to th

e B

ud

ge

t of K

os

ov

o (m

€)

Gen

era

l Gra

nt(1

0%

)

To

tal

Po

pu

latio

n

Ge

og

rap

hic

Size

Min

ority

Po

pu

latio

n

Mu

nic

ipa

lities

with

Min

ority

Po

pu

latio

n

To

tal

Mu

nic

ipality

Crite

ria

for a

llocatio

n o

f the G

en

eral G

ran

t G

en

eral G

ran

t for y

ear 2

015

Gen

eral G

ran

t

for y

ear 2

016

Gen

eral G

ran

t for

year 2

017

Po

pu

latio

nG

eo

gra

ph

ic S

ize

Min

ority

Po

pu

latio

nM

un

icip

alitie

s w

ith m

ino

rity

po

pu

latio

n

Fixe

d

Am

ou

nt

(140,000-1€)

Am

ou

nt p

er

po

pu

latio

n

(89

%)

Am

ou

nt p

er

ge

og

rap

hic

size

(6%

)

Am

ou

nt fo

r

min

ority

po

pu

lua

tion

in

mu

nic

ipa

lities

(3%

)

Am

ou

nt fo

r

Mu

nic

ipa

lities

with

min

ority

po

pu

latio

n

(2%

)

To

tal G

en

era

l

Gra

nt 2

01

5 V

-I

To

tal G

en

era

l Gra

nt

20

17

TO

TA

L

To

tal G

en

era

l Gra

nt

20

16

210

1.2 The specific grant for Education

The specific grant for education is based on an approach with an open system of funding

according to LLGF, taking into account the criteria and parameters in the state formula of

education from MEST including the policies of pre-university education for the year 2015.

The Grants Commission has approved the specific grant of pre-university education for 2015

is in the amount of 144,230,328 euro, of which: 143,894,328 euro presents the basic grant of

pre-university education for 2015, while the amount of 0.34 million euros includes the on-

going education policies of MEST.

Funding of the specific grant of pre-university education for year 2015 approved by the Grants

Commission for the period of MTEF aims at supporting the objectives of MEST for the pre-

university education.

State formula of pre-university education, in particular, handles the level of kindergarten,

primary schools and high schools. Therefore, the focus of professional schools, schools in the

mountain regions, promotion of teachers, professional development of teachers, or training on

the job, basic personnel for new schools, reform of funding at the level of school and teachers

for each parent school.

State formula of education does not handle: the special schools and the large capital

investments.

Funding formula for the specific grant of education is as follows:

Municipal allocation = Salaries for teachers + salaries for the administrative and assistant

personnel + Goods and Services + Small capitals + Education policies.

Basic implications for the calculation of the grant of pre-university education from MEST are

as follows:

a) Number of students registered in the year 2013/2014;

b) Salaries for teachers according to the pay roll and the average of salary which needs to

include the increase from the licensing and the cost for the pay increase by 25% in accordance

with the decision of the Government No. 01/176 dated 10.03.2014(MEST proposal to be

reviewed);

c) Goods and services according to students, with same parameters;

d) Same student-teacher ratio for the primary and secondary level, excluding professional

schools (the report on the majority community 1:21.3 and the minority community 1:14.2).

211

Table: Specific grant of pre-university education from MEST for the year 2015

Number of

teachers in

Centers of

Competences

Cost of

Centers of

Competences

320,113 94,783 414,896 143,894,328 70 336,000 144,230,328 145,669,274 146,369,899

1 Deçan 5,231 1,916 7,147 2,335,075 - 2,335,075 2,358,371 2,369,714

2 Dragash 4,642 644 5,286 2,302,135 - 2,302,135 2,325,103 2,336,286

3 Ferizaj 20,848 6,700 27,548 9,983,546 35168,000 10,151,546 10,252,825 10,302,138

4

Fushë

Kosovë 6,122 1,431 7,553 2,377,659 - 2,377,659

2,401,380 2,412,930

5 Gjakovë 16,342 4,662 21,004 7,004,055 - 7,004,055 7,073,932 7,107,956

6 Gjilan 16,508 6,004 22,512 8,434,193 - 8,434,193 8,518,339 8,559,309

7 Gllogoc 10,945 2,964 13,909 4,776,086 - 4,776,086 4,823,735 4,846,936

8 Hani i Elezit 1,602 402 2,004 657,149 - 657,149 663,705 666,897

9 Istog 6,920 1,893 8,813 3,046,842 - 3,046,842 3,077,240 3,092,040

10 Junik 696 238 934 390,710 - 390,710 394,608 396,506

11 Kaçanik 5,833 1,597 7,430 2,543,525 - 2,543,525 2,568,901 2,581,256

12 Kamenicë 4,861 1,749 6,610 2,552,349 - 2,552,349 2,577,813 2,590,212

13 Klinë 7,405 1,872 9,277 3,235,182 - 3,235,182 3,267,459 3,283,174

14 Leposaviq 1,788 451 2,239 756,462 - 756,462 764,009 767,684

15 Lipjan 11,473 2,768 14,241 4,788,278 - 4,788,278 4,836,050 4,859,309

16 Malishevë 12,640 3,171 15,811 5,734,881 - 5,734,881 5,792,096 5,819,954

17 Mamusha 804 42 846 359,283 - 359,283 362,867 364,613

18 Mitrovicë 13,301 4,243 17,544 5,942,343 - 5,942,343 6,001,628 6,030,494

19 Novobërdë 1,158 210 1,368 673,459 - 673,459 680,178 683,449

20 Obiliq 4,466 740 5,206 1,786,246 - 1,786,246 1,804,067 1,812,744

21 Pejë 16,241 5,166 21,407 7,244,248 - 7,244,248 7,316,522 7,351,712

22 Podujevë 17,859 4,373 22,232 7,296,487 - 7,296,487 7,369,282 7,404,726

23 Prishtinë 35,809 11,385 47,194 15,042,433 - 15,042,433 15,192,507 15,265,578

24 Prizren 27,336 7,634 34,970 12,794,591 35168,000 12,962,591 13,091,916 13,154,884

25 Rahovec 10,282 2,589 12,871 4,413,520 - 4,413,520 4,457,552 4,478,992

26 Shtërpcë 1,826 695 2,521 924,102 - 924,102 933,322 937,811

27 Shtime 5,466 1,543 7,009 2,438,510 - 2,438,510 2,462,838 2,474,684

28 Skenderaj 9,932 2,936 12,868 4,977,597 - 4,977,597 5,027,257 5,051,436

29 Suharekë 11,019 3,091 14,110 5,104,092 - 5,104,092 5,155,014 5,179,809

30 Viti 8,902 2,655 11,557 3,898,703 - 3,898,703 3,937,599 3,956,538

31 Vushtrri 12,847 3,644 16,491 5,596,231 - 5,596,231 5,652,063 5,679,247

32 Zubin Potok 1,019 270 1,289 379,176 - 379,176 382,959 384,801

33 Zveçan 871 254 1,125 323,938 - 323,938 327,170 328,744

34 Kllokot 520 151 671 1,385,453 - 1,385,453 1,399,275 1,406,005

35

Mitrovica e

veriut 2,563 2,311 4,874 235,022 - 235,022

237,366 238,508

36 Partesh 467 331 798 1,450,219 - 1,450,219 1,464,688 1,471,732

37 Ranillug 890 380 1,270 318,281 - 318,281 321,457 323,003

38 Graçanice 2,679 1,678 4,357 392,269 - 392,269 396,182 398,088

Total specific

grant for

Education

for year 2015

Assessment

for year 2016

Assessment

for year 2017

TOTAL

Specific

grant for

Education

for year 2005-

base

Ongoing Policies

Specific Grant Proposal for Education for the period 2015-2017

No. Municipality

Number of

students in

kindergarten

and

elementery

school

Number of

students in

high school

TOTAL

NUMBER

OF

STUDENTS

212

Table: The specific grant for pre-university education for 2015 and the background for

2012-2014

ANALYSIS Year Year Year Year

Specific grant for pre university education 2012 2013 2014 2015

Total amount (€) Calculations 140,315,623 141,185,995 142,559,329 144,230,328

Total number of students 458,878 454,964 435,965 414,896 Stundets in primary schools, kindergarden 344,132 339,318 325,350 320,113

Majority 334,101 328,027 315,775 309,482 Minority 10,031 11,291 9,575 10,631

Students in high schools 114,746 115,646 110,615 94,783 Majority 111,811 112,326 108,110 92,131 Minority 2,935 3,320 2,505 2,652

Number of schools 1,303 1,300 1,303 1,326 Primary schools 1,170 1,137 1,131 1,166 High schools 133 163 172 160

Total of Teachers (primary, high) 24,835 24,929 24,972 24,083 Number of teachers for the primary level 17,922 17,790 17,137 16,926 Number of teachers for the high school level 6,412 6,472 6,192 5,327

Additional teachers for the mountain regions 501 667 1,338 1,525

Number of teachers of English language 305 305

Special education (transfers from the central Staff 76 76

Basic calculation 139,102,177 140,315,623 142,223,329 143,894,328 Wages and salaries 123,084,078 124,297,524 133,007,617

New and on-going policies from MEST 1,213,446 870,372 336,000 336,000

Cost of LicensingTeachers (222 additional teachers) 778,260 Centre of excellency 435,186 870,372 336,000 336,000

1.3 Specific grant for primary healthcare

Specific grant for Healthcare and definition of the amount of this grant is based on an open

system approach of funding in accordance with LLFG.

The Grants Commission has approved the specific grant for primary health care for 2015 in

the amount of 42,085,037 euro.

The proposal of the specific grant of primary healthcare for year 2015 from the MoH is based

on the formula per capita-number of health visits X average cost per visit and the number of

services X average cost for services.

The criteria approved by the Grants Commission are as in the following:

2.5 visits per capita at a cost of 4 € per visit and

3.5 services per capita at a cost of 3.9 € for the service.

213

Table: Specific grant for healthcare for the period 2015 - 2017

2,5 visits per

capita4 € for visiting

3,5 services per

capita3.9 € for service

1 Deçan 40,019 100,048 400,190 140,067 545,979 946,169 987,423 1,009,906

2 Dragash 33,997 84,993 339,970 118,990 463,821 803,791 838,837 857,937

3 Ferizaj 108,610 271,525 1,086,100 380,135 1,481,766 2,567,866 2,679,829 2,740,845

4 Fushë Kosovë 34,827 87,068 348,270 121,895 475,145 823,415 859,317 878,882

5 Gjakovë 94,556 236,390 945,560 330,946 1,290,028 2,235,588 2,333,062 2,386,183

6 Gjilan 90,178 225,445 901,780 315,623 1,230,298 2,132,078 2,225,040 2,275,701

7 Gllogovc 58,531 146,328 585,310 204,859 798,538 1,383,848 1,444,186 1,477,068

8 Hani i Elezit 9,403 23,508 94,030 32,911 128,285 222,315 232,008 237,291

9 Istog 39,289 98,223 392,890 137,512 536,020 928,910 969,412 991,484

10 Junik 6,084 15,210 60,840 21,294 83,004 143,844 150,116 153,534

11 Kaçanik 33,409 83,523 334,090 116,932 455,799 789,889 824,329 843,098

12 Kamenicë 36,085 90,213 360,850 126,298 492,308 853,158 890,356 910,629

13 Klinë 38,496 96,240 384,960 134,736 525,201 910,161 949,845 971,472

14 Leposavic 13,773 34,433 137,730 48,206 187,905 325,635 339,833 347,571

15 Lipjan 57,605 144,013 576,050 201,618 785,905 1,361,955 1,421,338 1,453,700

16 Malishevë 54,613 136,533 546,130 191,146 745,085 1,291,215 1,347,514 1,378,195

17 Mamushë 5,507 13,768 55,070 19,275 75,132 130,202 135,879 138,973

18 Mitrovicë 71,909 179,773 719,090 251,682 981,054 1,700,144 1,774,273 1,814,671

19 Novobërdë 6,729 16,823 67,290 23,552 91,804 159,094 166,030 169,811

20 Obiliq 21,549 53,873 215,490 75,422 293,993 509,483 531,697 543,803

21 Pejë 96,450 241,125 964,500 337,575 1,315,867 2,280,367 2,379,794 2,433,979

22 Podujevë 88,499 221,248 884,990 309,747 1,207,392 2,092,382 2,183,612 2,233,330

23 Prishtinë 198,897 497,243 1,988,970 696,140 2,713,552 4,702,522 4,907,558 5,019,297

24 Prizren 177,781 444,453 1,777,810 622,234 2,425,466 4,203,276 4,386,545 4,486,420

25 Rahovec 56,208 140,520 562,080 196,728 766,846 1,328,926 1,386,869 1,418,446

26 Shtërpcë 6,949 17,373 69,490 24,322 94,805 164,295 171,459 175,363

27 Shtime 27,324 68,310 273,240 95,634 372,781 646,021 674,189 689,539

28 Skenderaj 50,858 127,145 508,580 178,003 693,856 1,202,436 1,254,863 1,283,435

29 Suharekë 59,722 149,305 597,220 209,027 814,787 1,412,007 1,473,573 1,507,124

30 Viti 46,987 117,468 469,870 164,455 641,044 1,110,914 1,159,351 1,185,748

31 Vushtrri 69,870 174,675 698,700 244,545 953,236 1,651,936 1,723,963 1,763,215

32 Zubin Potok 6,616 16,540 66,160 23,156 90,262 156,422 163,242 166,959

33 Zveçan 7,481 18,703 74,810 26,184 102,063 176,873 184,585 188,788

34 Graçanicë 10,675 26,688 106,750 37,363 145,639 252,389 263,394 269,391

35 Kllokot 2,556 6,390 25,560 8,946 34,872 60,432 63,066 64,502

36 M.Veriut 12,326 30,815 123,260 43,141 168,164 291,424 304,130 311,055

37 Partesh 1,787 4,468 17,870 6,255 24,380 42,250 44,092 45,096

38 Ranillug 3,866 9,665 38,660 13,531 52,744 91,404 95,389 97,561

1,780,021 4,450,053 17,800,210 6,230,074 24,284,827 42,085,037 43,920,000 44,920,000

Services

Total 2015

Total

Specific grant for Primary Health for 2015-2017

No. Municipality Population

Year 2015

Total 2016 Total 2017Visits

214

1.4 Secondary Healthcare: hospitals in the municipalities with

expanded competencies:

The implementation of the sectorial strategy of the Ministry of Health aims at the achievement

of the defined strategic objectives.

Minority municipalities that have benefited from the expanded competencies for 2011 are the

following:

Municipality of Graçanicë, funding of 1,120, 771 euro

Municipality of Shtërpcë, funding of 522,371 euro, and

Municipality of North Mitrovica, funding of 989,935 euro.

Minority municipalities that have benefited from the expanded competencies for 2012 are the

following:

Municipality of Shtërpce, funding of 522,371 euro

Municipality of Northe Mitrovica, funding of 989,935 euro, and

Municipality of Graçanicë, funding of 1,090,771 euro.

Minority municipalities that have benefited from the expanded competencies for 2013 are the

following:

Municipality of Shtërpcë, funding of 522,371 euro

Municipality of North Mitrovica, funding of 989,935 euro, and

Municipality of Graçanicë, funding of 1,090,771 euro.

Minority municipalities that have benefited from the expanded competencies for 2014 are the

following:

Municipality of Shtërpcë, funding of 344,544 euro

Municipality of North Mitrovica, funding of 699,000 euro, and

Municipality of Graçanicë, funding of 801,801 euro.

Funding of secondary health care for 2015

On 22 April 2014, the Grants Commission approved the funding for expanded competencies /

secondary health care for 2015 in the amount of 2,603,077 euro.

Minority municipalities that have benefited from the expanded competencies for 2015 are the

following:

Municipality of Shtërpcë, funding of 522,371 euro

Municipality of North Mitrovica, funding of 989,935 euro, and

Municipality of Graçanicë, funding of 1,090,771 euro.

215

1.5 Funding for the residential services in the municipality of

Skenderaj and Graçanicë

The Grants Commission at the meeting of 22nd

April 2014 reviewed and approved the

proposal of MLSW for funding of residential services for both houses of the community in the

Skenderaj and Graçanica municipalities, as follows:

Table: budgetary funding for 2015

1.6 Municipal Own Source Revenues

The municipal funding from the municipal own source revenues for 2015, forecasted in the

Municipal MTEF 2015-2017, is based on the provisions of Law on Local Government

Finance.

Municipal own source revenues for 2015 include the planned revenues from the municipalities

themselves which have been approved by the Grants Commission in the amount of 74,243,213

euro.

Table – Municipal own source revenues for 2015

Municipalities Staff

Salaries

and

Wages

Goods

and

Services

Utilities Subsidies Capital Total

Skenderaj 13 60,000 50,000 10,000 3,000 10,000 133,000

Graçanicë 11 50,000 40,000 8,000 2,000 10,000 110,000

Projection ( mil €) Year

2011

Year

2012

Year

2013

Year

2014

Year

2015

Year

2016

Year

2017

Municipal own source

revenues 51.88 60.00 63.00 67.23 74.24 75.62 76.80

216

No. Municipality Projections 2015 Projections 2016 Projections 2017

1 Deçan 636,892 649,402 656,402

2 Dragash 487,030 473,800 496,115

3 Ferizaj 4,204,689 4,283,119 4,302,670

4 Fushë Kosovë 1,822,756 1,878,756 1,791,756

5 Gjakovë 3,026,311 2,977,911 3,035,911

6 Gjilan 3,859,953 3,959,953 4,059,953

7 Gllogoc 1,200,874 1,312,774 1,375,274

8 Hani i Elezit 256,258 259,678 263,808

9 Istog 1,014,149 1,020,249 1,023,299

10 Junik 91,567 91,767 92,367

11 Kaçanik 695,757 708,735 710,157

12 Kamenicë 986,433 966,433 966,433

13 Klinë 857,767 869,767 881,767

14 Leposaviq 42,888 42,888 42,888

15 Lipjan 1,342,336 1,345,575 1,359,375

16 Malishevë 755,908 803,908 825,908

17 Mamusha 64,869 64,869 64,869

18 Mitrovicë 2,117,292 2,267,582 2,358,772

19 Novobërdë 204,672 208,488 227,960

20 Obiliq 811,716 826,857 865,467

21 Pejë 3,394,551 3,427,687 3,553,918

22 Podujevë 1,597,592 1,632,592 1,643,592

23 Prishtinë 27,162,609 27,378,053 27,624,299

24 Prizren 8,275,080 8,274,961 8,382,028

25 Rahovec 1,099,014 1,158,014 1,207,014

26 Shtërpcë 336,282 342,555 345,055

27 Shtime 445,503 451,788 459,224

28 Skenderaj 748,155 680,510 721,385

29 Suharekë 2,117,200 2,601,692 2,741,085

30 Viti 1,008,847 1,027,665 1,027,665

31 Vushtrri 1,675,327 1,703,418 1,703,418

32 Zubin Potok 42,888 42,888 42,888

33 Zveçan 42,888 42,888 42,888

34 Gracanicë 1,501,093 1,501,093 1,501,093

35 Kllokot 86,849 87,849 88,849

36 Mitrovica veriore 90,066 120,166 170,716

37 Partesh 46,384 47,249 48,134

38 Ranillug 92,768 94,498 95,598

74,243,213 75,628,077 76,800,000

Municipality own source revenues 2015- 2017

Total

217

2. Transfer of carried forward and delegated competencies

The strategy of municipal funding in the Municipal MTEF provides for the following

principles:

Delegated competencies – central authorities in the Republic of Kosovo can delegate

additional competencies to the municipalities, if necessary, in accordance with the law.

Delegated competencies shall, in all cases, be accompanied by necessary funding in

accordance with objectives, standards and requirements set forth by the Government of the

Republic of Kosovo.

3. New municipalities – decentralization

Following the municipal elections in 2009 and 2010, there were created 4 new municipalities

of in total 5+1 municipality, including the expansion of the municipality of Novo Bërdë,

deriving from the package for the final resolution of the Kosovo status.

This process shall continue with the local elections for the municipality of North Mitrovica,

supported with the commitment of the Government of the Republic of Kosovo in order to

encourage and ensure the active participation in public life and to empower good governance

and effectiveness of public services in Kosovo.

New municipalities in Kosovo have full and exclusive competencies as much as they have to

do with local interest in agreement with the law, thus respecting standards set forth in the

legislation in force. In addition, the allocation of government grants for the new municipalities

was done for the years 2011, 2012, 2013, 2014 and 2015 in complete accordance with

principles, criteria and formulas set forth in the Law on Local Government Finance and the

legal framework in force. As a result of local elections process of 2013, resulted the

constitution of four north municipalities such as the: North Mitrovica, Leposavic, Zveçan and

Zubin Potok and at the request of the MLGA and the respective municipalities in focus will be

the financial impact within the budget structure respectively in the economic categories as

well as the additional staff members.