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Kosovo: Electricity Distribution

Kosovo: Electricity Distribution

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The government of Kosovo faced serious problems in its power
sector. The lack of a reliable supply of electricity was causing
hardship to its population and was a major stumbling block to
investment and economic growth. The state-owned distribution
company, Kosovo Electricity Distribution and Supply (KEDS), was
losing over €20 million annually through technical losses and
low collection rates. It was then that the government of Kosovo
turned to IFC to privatize KEDS, which would allow a private
investor to modernize its system.
The government of Kosovo faced serious problems in its power
sector. The lack of a reliable supply of electricity was causing
hardship to its population and was a major stumbling block to
investment and economic growth. The state-owned distribution
company, Kosovo Electricity Distribution and Supply (KEDS), was
losing over €20 million annually through technical losses and
low collection rates. It was then that the government of Kosovo
turned to IFC to privatize KEDS, which would allow a private
investor to modernize its system.

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Categories:Types, Brochures
Published by: World Bank Group Public-Private Partnerships on Jul 12, 2013
Copyright:Attribution Non-commercial

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01/09/2014

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Power
public
-
private
 
partnerships
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
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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.

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