[Kcc-News] Kosova: European Agency announces new Reconstruction Programmes (EAR, Pristina, May 3, 2000) (fwd)

[Mentor Cana]

http://www.seerecon.org/Kosovo/KosovoReconstruction/EAR/newprograms.htm

European Agency announces new Reconstruction Programmes
Pristina, May 3, 2000

The European Agency for Reconstruction (EAR) was established in February
2000. The Agency's responsibility is to manage longer-term, sustainable
reconstruction and development programs in the region. The EAR is
responsible for the identification, preparation and implementation of EU
reconstruction projects in Kosovo. The European Agency for
Reconstruction (EAR) has taken over the work of the European
Commission's Task Force for the Reconstruction of Kosovo (TAFKO). The
seat of the EAR is located in Thessaloniki, Greece, while its
operational center is based in Pristina.
     The European Commission and the World Bank made a comprehensive
assessment of the post-conflict situation in Kosovo and estimated an
external financing requirement of $1,100 million in 2000. The priorities
for intervention were discussed with the international community at the
second Donors' Conference on November 17, 1999, where the EU confirmed
its intention to continue to play a prominent role in the reconstruction
of Kosovo. The funds available for 2000 from the EU for Kosovo amount to
at least EUR 360 million.
     The EAR is responsible for the implementation of the reconstruction
program for Kosovo. It selects the contractors, signs all necessary
contracts with service providers and suppliers (done in conformity with
the 1628/96 Regulation), with maximum emphasis placed on local tendering
(to the extent permitted by the Regulation).
     The implementation of projects is carried out in close
co-ordination and consultation with KFOR, other international agencies
and donors which are active in the various fields of the programme and
especially with UNMIK - Pillar IV (the EU Pillar, responsible for
economic reconstruction) which develops the strategies on which the
decisions of the EAR are based.

Projects committed in 1999 by the EC Task Force and transferred to
European Agency for Reconstruction:

In EUR 1,000.0 (thousands)

Rehabilitation of dwellings and public buildings    925.7
Support to essential public utilities               189.5
Small scale operations                              265.2
ATA                                               5,477.4
Emergency road repairs                            1,700.0
Bridge construction                               1,200.0
Construction of platform Kosovo-Polje               440.0
Re-establishment of local authority                   2.7
Reserve                                             294.8
Municipal and local investment fund               8,000.0
Municipal administration                          4,823.4
Central administration                            1,803.0
Registration: ID cards                            2,690.3
Postal & Telecommunications                       8,000.0
Energy                                            7,950.3
Water (major towns)                               2,850.0
Micro credit scheme                               1,000.0
Rural credit scheme                                 796.2
Enterprise management                             3,904.0
Civil society                                       500.0
Kosovo Protection Corps                           5,000.0
Feasibility studies                               1,993.5
Reserve                                           5,000.0
Snow ploughs                                      1,099.5
Total:                                    EUR    65,905.5

An additional EUR 30 million of budgetary support was targeted for
energy and public utilities.

On May 3, 2000, the European Agency for Reconstruction announced
Programmes to be committed by the Agency in 2000:w
To date there are already four sectoral programmes approved for 2000,
covering the following sectors:

In EUR millions

Click on each sector for a programme description  [ attached below ]

Energy               60
Housing              55
Transport            15
Environment (Water)  10

In addition, the following programmes are being developed:

Economic Development              25
Health                            10
Customs                 between 4 and 5

TOTAL: EUR 180 million
_______________________________________________________________________
http://www.seerecon.org/Kosovo/KosovoReconstruction/EAR/energy.htm

Energy - Rehabilitation of the Power Sector in Kosovo
Pristina, May 3, 2000

Budget: EUR 60 million (about DM 120 million)

Objective:

The main objectives of this programme are to:

- ensure that Kosovo is able to generate enough power, in a stable and
reliable manner, to meet its mid-term energy needs
- devise a long-term strategy for the sector
- guarantee a minimum level of power over the coming months and in
particular during next winter.

UNMIK 's aim is to provide a stable supply of around 650 MW during the
period of peak demand. It is proposed, through the actions described
below, for EAR funding to provide support that will ensure at least 450
MW of this target.
     The EAR is co-ordinating with UNMIK and other donors to ensure that
other aspects of the sector not included under the EAR intervention -
like the rehabilitation of transmission and distribution networks - are
covered during 2000.

Description:

The programme will focus on three key areas:

a) Overhaul and repairs of Kosovo B Power Station

There are only two main power stations in Kosovo, which are largely
responsible for providing electricity to the totality of the Province.
These are Kosovo A (built in 1963) and Kosovo B (built in 1985). Kosovo
B will be the mainstay of electricity generation in Kosovo in the medium
term. Ultimately, an extensive overhaul of both its units is required.
In practical terms, however, 2000 will see the overhaul of only one of
the Units (boiler, turbines, water pipes, etc) requiring works, repairs,
the provision of spare parts and equipment on a massive scale.
     In parallel, the provision of spare parts and equipment for the
remaining unit will be provided so as to cover possible technical
deficiencies until an overhaul on this second Unit is possible (which is
currently planned for 2001). This programme will contribute to ensuring
the reliability of power generation in Kosovo.

b) Rehabilitation of the coal (lignite) mines of Mirash/Dobro Selo and
Bardh/ Belacevac

The Kosovo A and B power stations were designed and built to function on
the natural resources provided by two open cast mines, which currently
constitute the only source for the thermal power stations of Kosovo A
and Kosovo B. These mines are therefore an indispensable part of the
power generation system. Both mines are in a very poor condition due to
bad operating practices, lack of maintenance, lack of investment, and
looting. The rehabilitation of the mines is a pre-condition to investing
in the overhauling of the power stations as there are no economically
viable alternatives to provide fuel sources in the short- to mid-term.
In the longer-term, an assessment of the future viability of these mines
will have to be included in the development of a long-term energy
strategy for Kosovo.
     The programme for 2000 will provide a package of repairs, equipment
and training necessary for the rehabilitation of the coal mines. The aim
is to increase the quantity, and improve the quality and reliability of
the lignite supply to the power stations, as well as improve the safety
of the workers in the mines.
     All the necessary technical assistance, training and organisational
reforms required for this sector are currently catered for under an
international management contract being funded by the EC. A new
management contract will continue this type of work. The cost of both
contracts will be met from the 1999 EC budget. Funding for necessary
works to Kosovo A, so that it may continue to run as a vital back-up
power station, have been pledged by German bilateral funding.
     EAR support for the energy sector is contingent on UNMIK's
institutional reforms in the sector, which need to involve the
establishment of a suitable tariff policy and the raising of sufficient
revenue.
     The EAR contribution will complement the work of other donors in
the sector, in particular, German KfW support for power generation,
Swedish, Danish and Norwegian assistance with transmission and
distribution.
_______________________________________________________________________
http://www.seerecon.org/Kosovo/KosovoReconstruction/EAR/housing.htm

Reconstruction of Housing in Kosovo
Pristina, May 3, 2000

Budget: EUR 55 million (about DM 110 million)

Objective:

The main objectives of this programme is to assist the efforts of the
Kosovar population to reconstruct about 8,000 war-damaged houses in the
year 2000. This represents about 37% of the total number of houses that
need to be reconstructed. UNMIK estimates the need to reconstruct around
20,000 houses in 2000 at a total cost of around $150 million.
     The proposed EAR contribution is the reconstruction of the worst
damaged houses for a total cost of around EUR  55 million. This will
benefit approximately 78,000 people.
     Kosovar inputs at all stages of the programme will be optimised,
and there will be an equitable spread of assistance so as to include the
largest number of beneficiaries, and ensure a targeting of the most
vulnerable households.

- Destroyed houses will be given priority as well as houses without
roofs which did not benefit from the substantial 1999 TAFKO programme.
- Houses, which received shelter kits in 1999-2000, which will also
benefit if a household is clearly unable to carry out further works
without additional assistance.

As well as the main objective of providing improved housing, the
operation will also aim to:

- stimulate local private sector development
- make the most of local resources whilst not disturbing the local
markets to the detriment of local purchasing power.

Description

Grant assistance will be provided for the reconstruction of housing
through the provision of building materials and, where necessary,
labour, for the reconstruction of targeted houses. The variety of
materials will be more extensive than the previous housing
rehabilitation programme (of 1999) because of the level of structural
and additional interior works to be carried out.
     The geographic targeting of municipalities for assistance is
co-ordinated centrally with UNMIK, taking account of current areas of
operation of the EAR (under the 1999 programme) and the plans of other
donors.
     The targeting of villages and beneficiaries will be carried out
with NGO partners in accordance with a clearly defined process that will
involve UNMIK municipal administrations. The selection criteria for
beneficiaries are being developed by UNMIK in concert with all the main
donors with the aim of promoting a consistent approach to the selection
of beneficiaries as well as of construction standards within donors'
different programmes.
     Technical assessments and calculations of materials required for
houses of selected beneficiaries will be undertaken by the NGOs'
technical staff. The technical designs and material listings are to be
agreed with the beneficiary. Support which may be required for
transportation and labour, or works contractors for the most vulnerable,
will also be provided.
     In acquiring the materials, a number of options are being explored
to arrive at the most expedient implementation, the easiest management,
and as far as possible the development of the local private sector.
There are a number of possibilities, e.g. vouchers presented by the
beneficiary to approved and locally-based private suppliers, the use of
procurement specialists to control and monitor the suppliers - and
possibly to directly procure - for some items which need to be bought in
large quantities and which are not readily available in Kosovo.
     As regards the rehabilitation of public buildings, a degree of
flexibility is maintained to evaluate UNMIK's priorities as far as the
reconstruction of buildings of important public use. This will not apply
to buildings under municipal responsibility, as they will shortly
benefit from the Municipal and Local Investment Fund (MLIF) facility,
launched under the 1999 programme.
     EAR actions in this sector will be co-ordinated with other donors,
including a number of Member States, through the UNMIK Housing
department. The aim of the department is to ensure maximum coverage of
the most needy municipalities, consistency in the application of
criteria by which beneficiaries are selected and of the standards to
which houses are reconstructed.
_______________________________________________________________________
http://www.seerecon.org/Kosovo/KosovoReconstruction/EAR/transport.htm

Rehabilitation of Transport Infrastructure
Pristina, May 3, 2000

Budget: EUR 15 million (about DM 30 million)

Objective:

The objective of this programme is

- to upgrade in particular the road infrastructure of Kosovo, allowing
for a more free and safer circulation of goods and people around the
Province as well as to and from neighbouring countries.
- the repair of at least three main routes and the reconstruction of two
bridges.

The success of the project is contingent on logistical issues related to
the production and delivery of materials and good co-operation with
UNMIK and KFOR to manage traffic circulation around the area of the
works.

Description:

This programme aims to rehabilitate the main axes connecting Kosovo to
neighbouring countries and regions as well as between its main towns and
cities. There is a need to provide a comprehensive package of measures,
which will include feasibility studies, technical designs and actual
works and repairs on key road sections and bridges around the Province.
Close co-ordination with UNMIK and KFOR will be essential in the
selection of the road sections and bridges to be prioritised for this
assistance. To this end, the EAR is involved in detailed discussions
with UNMIK, KFOR and the main donors in the sector in establishing which
donors will cover which aspects of the rehabilitation of the transport
network in Kosovo. The EAR intervention will cover part of the overall
investment needs in the transport area as set out in the relevant
section of the UNMIK Public Sector Investment Programme.
     This package of measures will also include the upgrading of border
crossing points and transit facilities with particular emphasis on the
border crossing with FYROM (Blace).
     The principle donor involved in the roads sector apart from the EAR
is KfW, Germany, with whom discussions are underway to determine who
undertakes the rehabilitation of which routes. Other donors, including
EU Member States, are focusing support in the transport sector on the
airport and railway.
_______________________________________________________________________
http://www.seerecon.org/Kosovo/KosovoReconstruction/EAR/water.htm

Water Program in Kosovo
Pristina, May 3, 2000

Budget: EUR 10 million (about DM 20 million)

Objective:

The main objective in this sector is to

- finance short- and medium-term programmes in order to stabilise and
improve the supply, operation and maintenance of water supply systems in
Kosovo.
- carry out short-term actions and prepare studies on medium- and
longer-term measures in order to bring around a significant improvement
in the way wastewater is treated and in the quality of water supplies
around the Province.
- ensure the supply of reliable and adequate quantities of potable water
(defined by UNMIK as a minimum of 120 litres per day per person and
minimum of 8 hours supply per day) in the short- and medium-term to all
inhabitants currently connected to public water supply systems in the
Central and Northern areas of Kosovo.

The success of this objective is contingent on UNMIK and the water
companies providing the necessary legal and regulatory framework for the
sector and providing for all salaries and running costs.

Description:

The programme will provide technical assistance, equipment and materials
to water supply companies in Kosovo. Initially the emphasis will be on
identifying and carrying out the necessary emergency measures to ensure
continuous operation and maintenance of the water supply systems and
waste water systems.
     Once the situation is stabilised, the focus will be on the
preparation, prioritisation and the implementation, in co-operation with
the local water companies, of projects with regard to the rehabilitation
of the existing water production facilities and water distribution
systems. The EAR contribution to the sector will fit into the overall
plans to rehabilitate water systems throughout the Kosovo.
     UNMIK is providing co-ordination in this respect to ensure that
different donor actions result in full coverage of Kosovo's water supply
network. The EAR programme will also be consistent with the norms and
standards for the sector as developed by UNMIK. EAR interventions in the
sector must be within the context of UNMIK's plans to establish a
suitable tariff policy and increase revenue collection in the water
sector.
     The programme will thus involve the drafting and start-up of a
programme for institutional support. As a first step, priority will be
given to assistance for starting and improving revenue generation.
Carrying out of feasibility studies to revise future development and
extension of water systems will also be considered.
     For wastewater and water sanitation, this programme will provide a
package of measures for the immediate needs whilst putting together
necessary studies for the longer-term needs of the sector.
     The short-term needs will include vehicles, equipment, small-scale
infrastructure and emergency works, as well as some short-term technical
assistance. These will be complemented by assistance on planning the
future re-organisation of the relevant departments of the water boards,
putting in place a system of revenue generation, drafting and
implementing training programmes for local staff and providing a
long-term strategy for the sector, focusing on priority investment
needs.
     Other donors involved in the sector include KfW Germany (south-west
and part of the central region) and the Swiss Development Corporation
(south-east region). In co-ordination with these donors and with UNMIK,
the EAR contribution is likely to focus on the northern and part of the
central regions.

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