This project tackles the development of public investment programmes in the context of Kosovo’s Development Strategy and the specific sector strategies that support the attainment of economic and social objectives. The project builds on Phase 1 by consolidating the capacities of the Provisional Institutions of Self Government to implement coherent Public Investment Programme (PIP) processes fully incorporated into the Medium Term Expenditure Framework (MTEF) and budgetary processes, thereby ensuring transparency, efficiency, and superior control of public spending.
By deepening the understanding and knowledge of management and personnel of the institutions concerned with public investment programming and with medium-term fiscal policies and budgeting processes, especially in the Ministry of Economy and Finance, public investments will become an effective tool for implementing socio- and macro-economic and sector strategies in Kosovo.
The project will help Kosovo to improve the effectiveness of public investment as important tools for implementing its development strategy and to become gradually independent of foreign assistance for financing public investment. The relevance and justification of the objectives and the approach will provide state-of-the art management and training methodologies, based on preceding capacity building efforts and already implemented PIP procedures and systems.
To this end, the project will:
• Enhance the integration of public investment programming into the overarching strategic and budgetary planning context of Kosovo with the aim of providing a consistent strategic and fiscal approach;
• Embed the PIP process, including its performance budgeting component, into the annual budget process in a sustainable way;
• Ensure that the Ministry of Economy and Finance (MEF) and other ministries and spending agencies have the capacity to provide effective PIP submissions through the formulation of investment proposals supported by cost-benefit analysis;
• Establish stronger links between sector strategies, as embodied in the MTEF, and project proposals.
• Adapt the PIP process to the specific needs of municipalities;
• Strengthen the institutional capacities of the MEF and other ministries and spending agencies to follow the integrated approach and implement the PIP processes accordingly.