Report on Progress Made in Committing, Contracting and Spending Donor Pledges to Kosovo

Donor Pledges, Commitments and
Spending in Kosovo

Kosovo

See Statement on this Report Presented at the Kosovo Donors Meeting, Pristina, February 25-26, 2001

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Office for South East Europe
European Commission / The World Bank

Report on Progress Made in Committing, Contracting and Spending Donor Pledges to Kosovo ¹

March 2001

Commitments, Contracts and Spending as of December 31, 2000²

The European Commission / World Bank Joint Office has prepared updated summary tables on the status of donor pledges³ to Kosovo as of December 31, 2000 based on a new set of reports by donors. It should be noted that this report provides only a quantitative picture of the external financing situation as reported by donors. A qualitative review of progress made over the past year was recently published by the United Nations Interim Administration Mission in Kosovo (UNMIK), Partnership in Kosovo: Reconstruction 1999-2000 (58 pages, pdf, 304 KB), February 2001 found on the Joint European Commission / World Bank website on Economic Reconstruction and Development in South East Europe (www.SEErecon.org).

Over a year after the two donors conferences for Kosovo, donors have spent more than they pledged for fiscal support for Kosovo, and continue to make good progress in carrying out the reconstruction and recovery program.

As of December 31, 2000, the overall situation of donor pledges from both Donors’ conferences, was as follows:

As of December 31, 2000, in USD mn	Pledged	Committed	(%)	Spent	(%)
Budgetary Assistance	109	151	139%	150	138%
Reconstruction and Recovery	1281	1050	82%	646	50%
Peace Implementation	154	102	66%	78	51%
Grand Total:	1544	1303	84%	874	57%

This compares with the situation as of June 30, 2000 and at the end of 1999:

In USD mn	Pledged	Committed as of Dec-00	Committed as of Jun-00	Committed as of Dec-99	Spent as of Dec-00	Spent as of Jun-00	Spent as of Dec-99
Budgetary Assistance	109	151	137	136	150	117	45
Reconstruction and Recovery	1281	1050	873	587	646	366	218
Peace Implementation	154	102 ⁴	162	129	78	70	37
Grand Total:	1544	1303	1172	852	874	553	299

As mentioned in the Joint Office report of September 2000,⁵ the aggregate amounts that have been allocated to date for activities relating to reconstruction and recovery and budgetary support, compared to the needs set out in the original reconstruction and recovery program presented by the World Bank and the European Commission in November 1999 must be described as highly satisfactory. Specifically, the original target for commitment of funds by the end of 2000 of $1.1 bn has been fully met with the actual figure reported by donors to be $1.2 bn.⁶

Figures 1a and 1b show the increase of donor commitments and expenditure since December 1999 in USD and Euro. The recorded expenditure for overall donor assistance to Kosovo (reconstruction and recovery, peace implementation activities, and budget support) in the year 2000 was the equivalent of DM 1205 mn. Figure 2 shows similar information with the addition of the amount contracted for the reconstruction and recovery program alone (i.e. excluding peace implementation activities and budget support). Again, a healthy growth in commitments, contracting and expenditure has been recorded during 2000.

Figure 1a

Figure 1b

1999 and 2000 Budget

Budgetary assistance in the annexed tables have been separated to show the 1999 and 2000 budget contributions. There was sufficient funding from donors to support the 1999 and 2000 budgets.⁷

Reconstruction and Recovery and Peace Implementation Activities

For Reconstruction and Recovery and Peace Implementation Activities, about 80% of the pledged funds have been committed, 68% have been contracted, and 51% have been spent. About $288 mn has been spent for Reconstruction and Recovery and Peace Implementation Activities since the last update in June 2000.

Methodology and Next Steps

The commitment and expenditure figures will be updated as of the end of June 2001*, to capture further progress as of that date. The Joint Office will continue to cooperate closely with UNMIK to maintain and improve, as necessary the monitoring of donor assistance to Kosovo, in particular to ensure coherence between UNMIK’s project based database (Reconstruction Intervention Monitoring System) and the aggregated database kept by the Joint Office

Attachments (pdf, 48 KB):

Table No. 1  Kosovo: Results by Donor in USD
Table No. 2  Kosovo: Results by Donor in euro
Table No. 3  Kosovo: Results by original Sectors in USD
Table No. 4  Kosovo: Results by original Sectors in euro
Table No. 5  Kosovo: Results by PRIP Sectors in USD
Table No. 6  Kosovo: Results by PRIP Sectors in euro

^{¹
Kosovo, Federal Republic of Yugoslavia (Serbia / Montenegro)
("Kosovo")

² See
Annexed tables for figures.
³ Funds
for humanitarian assistance are not tracked by the Joint Office.
⁴ A
donor contribution of $68 mn included in the Kosovo Police Service
category was pledged towards International Police. Given that
contributions to international police fall outside the Kosovo budget
and reconstruction program, the commitments of 78.5 mn, contracts
and spending will not continue to be recorded in this report.
^{⁵ Report
on Progress Made in Committing, Contracting and Spending Donor
Pledges to Kosovo, September 2000, Commitments, Contracts and
Spending as of June 30, 2000
^{6
Reflects an increase in needs, and subsequent response from donors
for budget support.
⁷ An
amount of $10 mn has been reported as already committed and
disbursed for the 2001 budget by December 2000.}}

* Since
this report was written, the Department of Reconstruction of UNMIK
has begun producing quarterly reports which includes tables on
amounts committed, contracted, and spent. As the governmental
administration capacity increases, the Joint Office will begin to
phase down its monitoring and now expects to continue reporting on a
yearly rather than twice yearly basis.}