3. Five major buildings have been identified for restoration work in 2000. They are the Eximkos Building, Dardania Building (largely completed and occupied by the Central Fiscal Authority), the Economics faculty of the University of Pristina, a part of the Boro e Ramiz Sports Centre and the Geodesy Institute building.

4. Departments are now virtually all headed by local and international Co-Heads and in some cases they have started to recruit key staff. The major external constraint on establishing departments on a more robust basis, however, is the lack of office space.

5. Departments have all been surveyed at least once to establish a basis for moving forward on both the short term and longer-term plans for accommodating the central public service. While the material submitted is necessarily incomplete it can be used to determine a short term plan. As the data improve they should provide a better basis for the longer-term program of co-location in the Bank Kosovo building. Progress has been slow and only the Dardania Building refurbishment has been achieved.

6. Donor financing is being pursued from a range of sources, although commitments have not yet been made. Ownership issues also are an inhibiting factor in making progress.

7. The Department’s highest capital priority is to accommodate the central administration of the JIAS departments in Pristina.

8. In the medium term the central administrations of the majority of Departments will be accommodated in the former Bank Kosovo building, which was badly damaged during the war. A central location should help to reduce administrative overheads and to permit provision of quality support services such as IT&T. Common service provision is an effective and efficient way of controlling many administrative overheads. Service delivery departments should therefore be able to concentrate much of their staffing and client services operations in the municipalities if that is where their main client interface is to be.

9. In the interim, however, agencies that have not already made provision for suitable accommodation, need to be accommodated in buildings around Pristina which can be renovated within reasonable time and where there is either reasonable prospect that the expenditure will be complementary to other programs of rehabilitation, or that the occupancy by the public service will be reasonably long term. There are some significant legal issues surrounding the ownership of property which could impact on the pace of rehabilitation and the extent to which it is undertaken in some buildings. This issue is being dealt with in co-operation with the UN legal service and in direct negotiation with rival claimants. Funding for this activity is not sought in this process.

10. DM 1.6 million is now sought for short-term rehabilitation of buildings that will be temporary locations for Administrative Departments. Some funding is sought also to permit full engineering assessment of the scope of the works required to rehabilitate the Bank Kosovo building as a longer-term option. At this stage it is considered more likely that the majority of the funds for rehabilitation of the Bank Kosovo building will be required in 2001. At the same time estimates are being developed for the Bank Kosovo building, consideration will be given to the impact on the operating budgets of departments. At this stage the operating costs budgets for 2000 should be adequate for most agencies.

11. The following table summarises the initial estimates of funds required for disbursement in 2000 and indicative estimates only for 2001.

Description	FY2000	FY2001	Total
Temporary Refurbishment of Buildings	1.6		1.6
Bank Kosovo Building	2.0	7.8	9.8
Technical Assistance	1.5	1.1	2.6
Total	5.1	8.9	14.0

12. The aggregate estimated requirement for capital refurbishment funds required for temporary accommodation for departments in four buildings is DM 1.6 million. It covers only the estimated costs to make good the buildings and includes a loading to bring services such as security, fire protection and lift services closer to international building codes standards including those applying to access for the handicapped.

13. Work has been virtually completed on the Dardania Bank building which is now occupied by the Central Fiscal Authority.

14. It is planned to house the full complement of central offices of the JIAS departments in this building in the long term, although there is some possibility that one or two agencies such as the CFA may remain in their current refurbished accommodation for some longer time. The total cost of the project, excluding specialist project management sought under technical assistance, is estimated to be DM 9.79 million of which it is estimated some DM 2 million in engineering and preliminary design work will be required in 2000. The cost includes a loading of 15% for bringing certain elements up to recognised international standards. Further costs are sought under technical assistance.

15. Funds are required for technical assistance in four areas summarised in the following table and commentary.

Description	2000	2001	Total
Design Unitary Price List for Construction Works.	0.12		0.12
Project design and supervision for Bank Kosovo	0.30	0.55	0.85
International Standards Compliance.	0.28		0.28
Engineering and Design services for DPS.	0.81	0.54	1.35
Total	1.51	1.09	2.60

16. Design Unitary Price List for Construction Works. Specialist external assistance is required to develop and produce a standard manual for estimating quantities for major construction projects in Kosovo for longer term application both project design and management. Some training of Kosovars in its application will need to be delivered as part of the project. It is estimated the project would take four months at DM30,000 per month.

17. Project Design and Supervision for Bank Kosovo Building Project. This is a provision for external professional project supervision of the Bank Kosovo project. It is anticipated that the operating budget of the department should meet the cost of providing appropriately qualified local staff to develop these skills under the supervision of the external expert. The cost is related to the estimated capital cost of the project.

18. International Standards Compliance. Office buildings in Kosovo do not comply with recognised international standards in such areas as security, lifts, fire safety and access for the handicapped. External expertise is required to evaluate each of the buildings against these standards and to develop a plan for their integration into the refurbished buildings. The estimate is based on 10% of the estimated base cost of the refurbishment of the Bank Kosovo building. The cost of bringing the building to standard is included in the capital project cost.

19. Engineering and Design Services for DPS. Some DM 808,000 are sought to provide a qualified engineering and design service in the Department and to develop a local staff capacity to provide longer-term building services management.