Development Fund

Introduction

The Development Fund for the northern Kosovo municipalities was established as a result of the EU facilitated Dialogue between Kosovo and Serbia.

Conclusions reached at the Customs Working Group meeting held on 17 January 2013 in Brussels, in the context of the implementation of the Dialogue, determined that revenues collected at the crossing points of Gate 1 Jarinje and Gate 31 Brnjak would form the basis of the Development Fund revenues.

The Fund was established with the aim to support the socio-economic development in the four northern municipalities, Leposavic, North Mitrovica, Zubin Potok and Zvecan. The money is public; its disbursement and expenditure follows Kosovo law.

The operation of the Fund is decided by the Management Board composing the EU Special Representative in Kosovo as the Chair, the Kosovo Minister of Finance on behalf of the Kosovo authorities, and a representative of the Serb community in the four municipalities.

Each municipality is encouraged to submit proposals for projects that will have a direct impact on improving the lives of its citizens. These can include the maintenance or construction of schools, hospitals or roads, but also business and social projects targeting specific sectors such as SMEs, agriculture producers, women, children or minorities.

Revenues

The revenues from both Crossing Points are transferred into an account established in a commercial bank in Pristina determined by the EU.

As of 23 August 2016, the Fund has collected in excess of 10 million EUR. To that date, the Management Board has approved 21 different projects amounting to 7.5 mil EUR. These projects are now in their implementation phase. A number of projects are being prepared for submission to the Management Board.

Funds collected by
23 March 2016

Number of projects approved

Total amount of money allocated until 1 March 2016

€10m

21

€7.7m

Overview of the Northern Development Fund as of 23 August 2016 pdf - 497 KB [497 KB]

 

Types of projects financed

The Fund favours public investment projects, which will have an impact on the socio-economic developments in the municipalities in the north.

Specifically, projects which are proposed should aim at improving the lives of the local population, should be financially viable, cost effective, environmentally responsible and sustainable.

They can be related to the construction and maintenance of public infrastructure including roads, hospitals, water supply, waste water treatment and waste management; support to business, farms and civil society; promotion of human rights, education, access to healthcare and transportation.

It has been agreed that the Fund may also co-finance projects funded by the EU or other donors with whom the Government of Kosovo has cooperation agreements.

Role of Management Board

The operation of the Fund is decided by the Management Board. It is composed of three members: the EU Special Representative in Kosovo as the Chair, the Kosovo Minister of Finance on behalf of the Kosovo authorities, and a representative of the Serb community from the four northern municipalities.

The Management Board held its first meeting in December 2013. Since then, it has been meeting on a regular basis to decide how to disburse funds following the submission of projects by the mayors from the northern municipalities.

Management Board composition

Nataliya Apostolova

EU Special Representative

Chair

Avdullah Hoti

Kosovo Minister of Finance

Member

Danijela Zubac

Representative of Serb Community

Member

Responsibility for project implementation

The implementation of the projects is undertaken by the four municipalities, who are obliged to respect the public procurement procedures for the implementation of projects in accordance with applicable rules and procedures. For each project the respective municipality shall submit a final report as well as an audit report to the Management Board.