Kosovo

KfW Development Bank has been involved in sustainable urban development in Kosovo since 1999. Back then, immediately after the war, the focus was on emergency aid. Today, cooperation is aimed at helping Kosovo meet EU environmental standards. Much has already been achieved with the water supply: in Pristina, water is now available all-day long, and nationally more than 90% of the population is connected.

Progress can also be seen in wastewater treatment. Treatment plants in Prizren, Gjakova, Peja, and in the future also in Pristina, have been supported as part of German Financial Cooperation, and are able to treat wastewater from more than a third of the population.

Waste management is currently posing the greatest challenges. None of Kosovo's waste disposal sites meet EU standards. Illegal dumping is widespread, which is polluting the environment and posing potential hazards for the population. KfW Development Bank has launched the first waste management projects, with further large-scale programmes in the pipeline.

Project information Water supply (PDF, 169 KB, non-accessible)

The Kosovar energy sector is facing considerable challenges because of outdated facilities and inadequate maintenance. The country's rising demand for electricity has so far not been sufficiently met, resulting in major discontent among consumers. KfW is working on behalf of the German government to eliminate supply bottlenecks, contribute to climate protection and integrate Kosovo's power grid into the European electricity market.

Since 1999, KfW has committed funds totalling more than EUR 180 million to the energy sector on behalf of the German Federal Government, primarily to expand power transmission facilities and district heating but also to create a wind atlas. This makes it easier for investors to estimate the potential returns from wind energy projects. In this way, German Development Cooperation is promoting the share of renewable energies - which in Kosovo are the sole preserve of the private sector - in the Kosovar energy matrix. In future, support will be given especially to solar energy for generating climate-friendly electricity and district heating.

Core problems for sustainable economic development include the low levels of productivity, innovative strength and competitiveness of Kosovar companies. This is partly due to the structurally limited access to the formal financial sector, especially for micro, small and medium-sized enterprises (MSMEs). Another core problem is that Kosovo's economy lacks highly skilled workers, with training and employability being inadequate. This is resulting in high youth unemployment and an exodus of talented young people. KfW Development Bank is therefore focusing on improving employment for the Kosovar population and sustainably increasing the productivity and competitiveness of MSMEs. Measures include promoting sustainable, inclusive and environmentally compatible economic growth, e.g. by promoting access to advisory services and financing and insurance products, creating jobs, strengthening the vocational training system and labour market services, as well as measures to promote youth employment.