WASHINGTON, January 16, 2025—The Board of Executive Directors of the World Bank approved financial assistance today for two new projects in Kosovo aimed at strengthening the competitiveness of the private sector and improving connectivity.
Both the Financial Sector Development Project, worth $52 million (€49.1 million), and Trade and Transport Facilitation Project (TTFP) 2.0, worth $37.7 million (€34.7 million), are being funded through concessional credit from the International Development Association (IDA).
"Through these two projects, Kosovo demonstrates its commitment to enhancing competitiveness by supporting smaller firms that are essential to the economy," says Massimiliano Paolucci, World Bank Country Manager for Kosovo and North Macedonia. "Focusing on improving access to finance for firms and facilitating connectivity is a key factor for growth and job creation, and it will bring clear benefits to Kosovo and its citizens."
The Financial Sector Development Project aims to enhance financial stability and inclusion in Kosovo through strengthening capacity of the deposit insurance fund, financing underserved firms, and catalyzing faster payments. The project will enhance the capacity of the Deposit Insurance Fund of Kosovo to protect the savings of people and businesses in Kosovo and support the Central Bank of Kosovo to promote modern, digital payment systems. The project will also bolster the financial environment for micro, small, and medium enterprises by allocating capital for credit guarantees through the Kosovo Credit Guarantee Fund, potentially attracting nearly $200 million in private sector investments.
The project will also assist the Ministry of Finance, Labour, and Transfers in establishing a National Development Bank, which will finance development projects that align with government priorities.
The Trade and Transport Facilitation Project 2.0, which builds on the momentum created by TTFP 1 in reducing trade costs and increasing transport efficiency in the Western Balkans, will finance critical infrastructure and IT systems to expedite the movement of goods and facilitate trade between Kosovo and its neighboring countries.
This project will invest in software, hardware, communications equipment, and related infrastructure to implement e-tolling systems on key road segments in Kosovo, including Route 6, Route 7, and the Gjilan Motorway.
Additionally, to improve road and rail safety, the project will fund the enhancement of 21 railway level crossings along the main network and the high-risk road section between Fushe Kosove and Gjurgjice, spanning 28 kilometers.
