Tis series provides an overview of successful public-private partnerships in various infrastructure sectors,where IFC was the lead advisor.
IFC Advisory Services inPublic-Private Partnerships2121 Pennsylvania Ave. NWWashington D.C. 20433ifc.org/ppp
P h o t o © N u f k i n
The government of Kosovo faced serious problems in its powersector. The lack of a reliable supply of electricity was causinghardship to its population and was a major stumbling block toinvestment and economic growth. The state-owned distributioncompany, Kosovo Electricity Distribution and Supply (KEDS), waslosing over €20 million annually through technical losses andlow collection rates. It was then that the government of Kosovoturned to IFC to privatize KEDS, which would allow a privateinvestor to modernize its system.
Kosovo: Electricity Distribution
A Turkish consortium, Limak-Çalik, won the tender to purchase 100% o KEDS or
26.3 million in a transparent bidding process. The consortium has also committedto invest $390 million to modernize and operate KEDS. The transaction is expectedto signifcantly reduce power outages and government subsidies. Ensuring bettersecurity o supply, this transaction paves the way or new generation capacities to beprocured and improved access to power or Kosovo’s entire population o 1.7 million.The agreement was signed in October 2012. Limak-Çalik is expected to take over thecompany in May 2013.