Government Commitment

• The Government of Kosovo has begun the privatization process for KEK Distribution Network and Supply.

• The privatization is being carried out in accordance with:
  o Law No. 03/L-087 on Publicly Owned Enterprises,
  o the procedures for tender in Law No. 03/L-090 on Public-Private-Partnerships And Concessions in Infrastructure,
  o Government decisions to date,
  o The Energy Strategy of the Republic of Kosovo for the period 2009-2018; and
  o the Medium Term Expenditure Framework (MTEF), relating to KEK unbundling and privatization.

• The Government has:
  o approved the unbundling of KEK (Decision No. 04/36),
  o approved the privatization by sale of shares of KEK Distribution and Supply (Decision No. 03/38), and
  o appointed the Privatization Committee (PC) to implement the privatization (Decision No. 08/39).
  

Role of the Privatization Committee

• To implement the privatization, Government has created and authorized the PC, which will establish policy and ensure inter-ministerial coordination during all phases of the project.

• The PC shall oversee the timely implementation of the project.

• The PC is supported by a Project Implementation Unit, which serves as the technical secretariat for the project.

Role of the Transaction Advisor

• In order to implement the project, the Government has engaged International Finance Corporation (IFC) to serve as Transaction Advisor.
• The Transaction Advisor will provide strategic, legal, technical, and financial advisory services regarding the structuring and implementation of all stages of the project, such that the project can be implemented in the best interest of Kosovo.
  
• The Transaction Advisor will prepare all required project documents and will also undertake options analyses, feasibility studies, design reviews/updates, and other activities that may be reasonably required to implement the project.
• The Transaction Advisor will provide policy and strategic advisory services to the PC, when requested, and will work directly with the Project Implementation Unit to implement the project in accordance with the PC’s stated policy directives.

The Transaction

• The Government is committed to attracting private sector participation through a completely transparent international best practice tender process that will be open and fair to all potential buyers.

• The entire process including access to information, control of the bids, contact with investors, data rooms, due diligence, and the rest of the tender process, will all be tightly controlled and monitored.

• All investors/bidders will be treated equally and in a non-discriminatory manner; all have equal access to information and people; all have equal time for all aspects of the tender; all have equal contact with the government and advisors; and all have exactly equal/identical conditions and criteria from which to prepare their bids.

• All bidders will bid against identical criteria and an identical, predetermined Sale and Purchase Agreement.

• We are committed to executing this process with full transparency.

• The final formula for determining the winner will be strictly quantitative and objective, based on price and investment, and there will be zero room for subjectivity, interpretation or ambiguity.

The Challenge and the Mandate

• Kosovo’s challenge is real!

• The Government will aggressively embrace this opportunity to:
  o Ensure security of supply of electricity
  o Maintain affordable tariffs for customers of electricity
  o Eliminate unsustainable Government subsidies,
  o Enhance performance and delivery of electricity throughout the country,
  o Address serious environmental issues, and
  o Generally improve the lives of all citizens of Kosovo thru a top-performing distribution and supply network in the country.

• Economic, reliable, environmentally sound provision of electricity on a sustainable commercial basis is the mandate.