Single Project Pipeline of Infrastructural Investments

Republika e Kosovës Republika Kosova - Republic of Kosovo Qeveria - Vlada - Government

Këshilli Kombëtar për Investime/Nacionalni Odbor za Investicije National Investment Committee

SINGLE PROJECT PIPELINE OF INFRASTRUCTURAL INVESTMENTS

TRANSPORT, ENVIRONMENT AND ENERGY

TABLE OF CONTENTS

List of Abbreviations ...... 5 Introduction ...... 6 Executive Summary ...... 7 TRANSPORT ...... 8 Description of Transport Sector ...... 10 A transport WBIF success story ...... 10 Railway sector ...... 10 Road sector ...... 11 Civil aviation sector ...... 12 Pristina Airport ...... 12 Gjakova Airport ...... 13 Transport Sector Single Projects Pipeline ...... 14

PIF 1 TRA: General Rehabilitation of Railway Route 10 (Border with Serbia - Leshak –Fushe Kosove – Hani i Elezit – Border with Macedonia) ...... 15 GRID 1 TRA: General Rehabilitation of Railway Route 10 (Border with Serbia - Leshak –Fushe Kosove – Hani i Elezit – Border with Macedonia) ...... 23 PIF 2 TRA: Construction of the Highway (SEETO Route 7) section E from Pristina to Merdare ...... 25 GRID 2 TRA: Construction of the Highway (SEETO Route 7) section E from Pristina to Merdare ...... 32 PIF 3 TRA: Construction and modernisation of a Railway Line Pristina - Fushe Kosove – Pristina Airport “Adem Jashari” ...... 34 GRID 3 TRA: Construction and modernisation of a Railway Line Pristina - Fushe Kosove – Pristina Airport “Adem Jashari” ...... 41 PIF 4 TRA: General Rehabilitation of the Eastern Railway line (Border with Serbia – Podujevo – Fushe Kosove) ...... 43 GRID 4 TRA: General Rehabilitation of the Eastern Railway line (Border with Serbia – Podujevo – Fushe Kosove) ...... 51 PIF 5 TRA: Construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) section from Kijevë -Klina to Zahaq (30 Km) ...... 53 GRID 5 TRA: Construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) section from Kijevë -Klina to Zahaq (30 Km) ...... 60 PIF 6 TRA: Construction of the new railway line Prizren (Kosovo) – Border with Albania – Durres (Albania) ...... 62 GRID 6 TRA: Construction of the new railway line Prizren (Kosovo) – Border with Albania – Durres (Albania) ...... 69 PIF 7 TRA: General Rehabilitation of the Western Railway Line (Fushe Kosove – Klina – Peja) ...... 71 GRID 7 TRA: General Rehabilitation of the Western Railway Line (Fushe Kosove – Klina – Peja) ...... 78 PIF 8 TRA: Rehabilitation of the National Road N25.3 from Shtime – Ferizaj - Gjilan (46.2 Km) ...... 80 GRID 8 TRA: Rehabilitation of the National Road N25.3 from Shtime – Ferizaj - Gjilan (46.2 Km) ...... 85 PIF 9 TRA: General Rehabilitation of the South/West Railway Line (Klina – Prizren) ...... 87 GRID 9 TRA: General Rehabilitation of the South/West Railway Line (Klina – Prizren) ...... 94 PIF 10 TRA: Upgrade of the Regional Road R107 from Pejë -Gjakova to Prizren (70.3 Km) ...... 96 GRID 10 TRA: Upgrade of the Regional Road R107 from Pejë -Gjakova to Prizren (70.3 Km) ...... 102 PIF 11 TRA: Construction of the new motorway from Prishtina – Gjilan - Dheu i Bardhë (border with Serbia) (68 Km) ...... 104 GRID 11 TRA: Construction of the new motorway from Prishtina – Gjilan - Dheu i Bardhë (border with Serbia) (68 Km) ...... 110

ENVIRONMENT ...... 112 Description of Environment Sector ...... 114 A WBIF success story in Kosovo: Water Supply Project for the Pristina Region ...... 114 Air pollution ...... 114 Waste management ...... 115 Water management ...... 115

Climate change ...... 116 Nature protection ...... 116 Environment Sector Single Projects Pipeline ...... 117

PIF 1 ENV: Building of acid mine Water Treatment Plant in Novo Brdo/ Artana Mine ...... 118 GRID 1 ENV: Building of acid mine Water Treatment Plant in Novo Brdo/ Artana Mine ...... 126 PIF 2 ENV: Second phase of the construction of hydro system “Ibër-Lepenc” ...... 128 GRID 2 ENV: Second phase of the construction of hydro system “Ibër-Lepenc” ...... 133 PIF 3 ENV: Construction of Waste Water Treatment Plant for the city of Gjilan (including sewerage network and tertiary treatment) ...... 135 GRID 3 ENV: Construction of Waste Water Treatment Plant for the city of Gjilan (including sewerage network and tertiary treatment) ...... 143 PIF 4 ENV: Construction of transfer station and centre for selection of waste. (Klinë, Istog, Skenderaj, Novobërd)...... 145 GRID 4 ENV: Construction of transfer station and centre for selection of waste. (Klinë, Istog, Skenderaj, Novobërd) ...... 151 PIF 5 ENV: Improvement of technical and operating state in the landfill of the region of Prishtina in Mirash -Obiliq ...... 153 GRID 5 ENV: Improvement of technical and operating state in the landfill of the region of Prishtina in Mirash -Obiliq ...... 160 PIF 6 ENV: Rehabilitation and construction of flood protection infrastructure along the river Drini i Bardhe and Sitnica ...... 162 GRID 6 ENV: Rehabilitation and construction of flood protection infrastructure along the river Drini i Bardhe and Sitnica ...... 168 PIF 7 ENV: Construction of wastewater treatment plant for the city of Mitrovica (including sewerage network and tertiary treatment) ...... 170 GRID 7 ENV: Construction of wastewater treatment plant for the city of Mitrovica (including sewerage network and tertiary treatment) ...... 176 PIF 8 ENV: Construction of the Waste Water Treatment Plant for the city of Prishtina (including sewerage network and tertiary treatment) ...... 178 GRID 8 ENV: Construction of the Waste Water Treatment Plant for the city of Prishtina (including sewerage network and tertiary treatment) ...... 186 PIF 9 ENV: Construction of facilities for storage of hazardous waste ...... 188 GRID 9 ENV: Construction of facilities for storage of hazardous waste ...... 194 PIF 10 ENV: Construction of the Waste Water Treatment Plant for the city of Peja (including sewerage network and tertiary treatment) ...... 196 GRID 10 ENV: Construction of the Waste Water Treatment Plant for the city of Peja (including sewerage network and tertiary treatment) ...... 202 PIF 11 ENV: Rehabilitation and construction of flood protective infrastructure along the Morava e Binces River ...... 204 GRID 11 ENV: Rehabilitation and construction of flood protective infrastructure along the Morava e Binces River ...... 212 PIF 12 ENV: Construction of wastewater treatment plant for the city of Ferizaj (including sewerage network and tertiary treatment) ...... 214 GRID 12 ENV: Construction of wastewater treatment plant for the city of Ferizaj (including sewerage network and tertiary treatment) ...... 222 PIF 13 ENV: Construction of centres for the treatment of construction and demolition waste of buildings (Gjilan, Ferizaj, Prizren, Shterpce, Rahovec, Gjakove, Shtime, Lipjan, Drenas, Suharekë, Kaçanik, Viti) ...... 224 GRID 13 ENV: Construction of centres for the treatment of construction and demolition waste of buildings (Gjilan, Ferizaj, Prizren, Shterpce, Rahovec, Gjakove, Shtime, Lipjan, Drenas, Suharekë, Kaçanik, Viti) ...... 230 PIF 14 ENV: Renovation and expansion of the drinking water supply network for the region of Prishtina, Gjilani and Mitrovica ...... 232 GRID 14 ENV: Renovation and expansion of the drinking water supply network for the region of Prishtina, Gjilani and Mitrovica ...... 237 PIF 15 ENV: Construction of the Hydro-technical System, Desivojcë - Kremenat - Gjyrishevc ...... 239 GRID 15 ENV: Construction of the Hydro-technical System, Desivojcë - Kremenat - Gjyrishevc ...... 244 ENERGY ...... 246 Description of Energy Sector ...... 248 A WBIF success story in Kosovo: Improvement of District Heating in Pristina, Kosovo ...... 248 Sector investment and development ...... 249 Energy Sector Single Projects Pipeline ...... 251

PIF 1 ENE: Detailed mining project for the development and the functionalization of the new exploitation field ...... 252 GRID 1 ENE: Detailed mining project for the development and the functionalization of the new exploitation field ...... 258 PIF 2 ENE: Improving District Heating in Kosovo by Implementation of District Heating System in Municipalities with heating potential ...... 260

GRID 2 ENE: Improving District Heating in Kosovo by Implementation of District Heating System in Municipalities with heating potential ...... 267 PIF 3 ENE: Reduction of Sulphur Dioxide (SO2) Emissions from TPP Kosovo B (B1&B2) ...... 269 GRID 3 ENE: Reduction of Sulphur Dioxide (SO2) Emissions from TPP Kosovo B (B1&B2)...... 275 PIF 4 ENE: Energy Efficiency Measures in Public Institution Buildings ...... 277 GRID 4 ENE: Energy Efficiency Measures in Public Institution Buildings ...... 284 PIF 5 ENE: Installation of electrostatic precipitators (ESP) for reduction of dust (particles) emissions from TPP Kosovo B (B1 & B2) ...... 286 GRID 5 ENE: Installation of electrostatic precipitators (ESP) for reduction of dust (particles) emissions from TPP Kosovo B (B1 & B2) ...... 292 PIF 6 ENE: Reduction of nitrogen oxides (NOx) Emissions from TPP Kosovo B (B1&B2) ...... 294 GRID 6 ENE: Reduction of nitrogen oxides (NOx) Emissions from TPP Kosovo B (B1&B2) ...... 301 PIF 7 ENE: Construction of gas distribution network in Kosovo and of its connection to Albanian and/or Macedonian gas network ...... 303 GRID 7 ENE: Construction of gas distribution network in Kosovo and of its connection to Albanian and/or Macedonian gas network ...... 308 PIF 8 ENE: Installation of the new infrastructure for supplying hot domestic water in Prishtina by Termokos ...... 310 GRID 8 ENE: Installation of the new infrastructure for supplying hot domestic water in Prishtina by Termokos ...... 316 PIF 9 ENE: Upgrade of 110 kV transmission lines ...... 318 GRID 9 ENE: Upgrade of 110 kV transmission lines ...... 324 PIF 10 ENE: Rehabilitation and re-cultivation of southern overburden dump area of 781 hectares ...... 326 GRID 10 ENE: Rehabilitation and re-cultivation of southern overburden dump area of 781 hectares ...... 330 PIF 11 ENE: Reduction of discharged wastewater from Thermo power plants and its monitoring ...... 338 GRID 11 ENE: Reduction of discharged wastewater from Thermo power plants and its monitoring ...... 329 PIF 12 ENE: Cleaning and new land re-cultivation of TPP Kosova A ash dumps ...... 340 GRID 12 ENE: Cleaning and new land re-cultivation of TPP Kosova A ash dumps ...... 345 PIF 13 ENE: Decommissioning of gasification, fertilizer and heat plant in location site of TPP Kosova A ...... 347 GRID 13 ENE: Decommissioning of gasification, fertilizer and heat plant in location site of TPP Kosova A ...... 354

LIST OF ABBREVIATIONS

EC European Commission

EU European Union

IPA Instrument for Pre accessions Assistance

MEI Ministry of European Integration

MoF Ministry of Finance

MED Ministry of Economic Development

MESP Ministry of Environment and Spatial Planning

MoI Ministry of Infrastructure

NAD Needs Assessment Document

SPD Sector Programming Document

NPAA National Plan for Adoption of Acquis

ISP Indicative Strategy Paper

PIF Project Identification Form

SPP Single Project Pipeline

SSPP Single Sector Project Pipeline

SRAC Strategic Relevance Assessment Criteria

WBIF Western Balkans Investment Framework

IFICO IFIs Coordination

IFIs International Financial Institutions

NIC National Investment Committee

NICTA National Investment Committee Technical Aparatus

NIPAC National IPA Coordinator

SWG Sector Working Group

INTRODUCTION

The Government of Kosovo has adopted the Government Programme 2015 – 2018 in which the policy priorities for the future years have been laid out.

The Programme has five main pillars: I. Sustainable economic development, employment and welfare; II. Rule of law; III. European agenda and foreign policy; IV. Education, science, culture, sports and youth development; and V. Modern healthcare.

Kosovo has been one of the very few countries in Europe and the region of South Eastern Europe that had positive growth rates in every single year in the period since the 2008 global financial crisis. This strong resilience to the external shock was a consequence of limited trade and financial linkages Kosovo had with the crisis countries, and of the country's rather specific development model. It is based on strong remittances and FDI inflows from diaspora that boost domestic demand through household consumption and investments channelled primarily into non-tradable sector, such as real estate and services. Another pillar of Kosovo's growth model in recent years has been a strong pro-growth oriented budget structure with the share of capital investments significantly higher than in any country of the region.

Nevertheless, one of the main challenges for economic and social development of Kosovo and Western Balkan remains the quality of infrastructure.

In this light, the European Union launched, what is now known as, Berlin process. Berlin process has recognized the importance of improving the infrastructural interconnectivity of the Western Balkans countries, among themselves and with the EU. Ultimate objective of the Berlin process is to agree on the list of key infrastructural investment in the Western Balkans and improve the overall Western Balkans state of infrastructure.

To this end, the EU has invited Western Balkan countries to establish National Investment Committees (NIC) and prepare a Single Project Pipeline of infrastructural investments.

This document constitutes Kosovo response to the Berlin process and represents key national infrastructural investments in transport, energy and environment.

EXECUTIVE SUMMARY

In view of the Berlin process requirements, on 8 July 2015, the Government established the National Investment Committee (NIC). NIC serves as political forum through which priority investment projects are prepared and financing plans for each of the steps related to the specific projects from the Single Project Pipeline are discussed and agreed.

First meeting of the NIC took place on 30 July, at which the NIC has mandated responsible ministries to develop Single Project Pipelines (SPP) for infrastructural investments in transport, energy and environment.

SPP was to be developed based on the Methodology for Selection and Prioritization of Infrastructure Projects. Methodology had foreseen preparation of the SPP in two phases. First phase (August-September) implied identification of key infrastructural projects and preparation of the Project Identification Forms (PIF) by the responsible state institutions. In the second stage, proposed infrastructural projects were screened for the Strategic Relevance Assessment and ultimately projects were ranked on the basis of their contribution to the economic development and investment maturity.

As a result, after months of work, SPP was finalized. Overall, there were 39 infrastructural projects identified in the amount of 2,352,821,380 EUR: - 13 projects in energy sector for an indicative total amount of 635,650,000 EUR. - 15 projects in environment sector for an indicative total amount of 526,771,380 EUR. - 11 projects in transport sector for an indicative total amount of 1,190,400,000 EUR.

SPP will serve as the main policy planning instrument for the coordination of infrastructural investments in transport, energy, and environment. The Government will continuously review and expand the SPP with other sectors.

TRANSPORT

DESCRIPTION OF TRANSPORT SECTOR

The overall goal of the Ministry of Infrastructure in the transport sector is to contribute to economic growth through the creation of an A transport WBIF success efficient transport system, an integrated story in Kosovo multimodal system, road transport, railway and air transport, with low price and a safe The Kosovo Railway network has been supported by environment. WBIF through 3 grants: the 1st WBIF grant for a The Ministry of Infrastructure is committed to feasibility study for general rehabilitation of railway create a fully integrated transport system for all route 10 (Leshak – Mitrovicë – Fushë Kosovë – Ferizaj citizens, which will enable them to choose the – Hani i Elezit) was delivered in 2010; the 2nd WBIF most efficient and advantageous transportation grant for for feasibility study for general rehabilitation that meets their needs and which guarantees the of the East West Railway Lines in Kosovo (Podujevë – preservation of the environment, which is in Fushë Kosovë – Klinë – Pejë and Klinë – Prizren) was accordance with the Government's program for delivered in 2013; the 3rd WBIF grant for cooperation with neighbor countries and implementation of the detailed project design for integration into regional and international general rehabilitation of the Southern part of Railway structure. Route 10 (Fushë Kosovë – Hani i Elezit) was delivered in 2014. The strategy of the transport development for the period 2014/2025 well defines the action plan All above mentioned grants for Technical Assistance for the development of Kosovo transport system through WBIF have enabled the Government of until 2025. Kosovo and Infrakos with EBRD to proceed with the rehabilitation of Railway Route 10 which has significant importance for the regional core network RAILWAY SECTOR developed by SEETO (South – East Europe Transport The first railway line in Kosovo was built in 1874 Observatory). in the south part of Kosovo, connecting Skopje in Currently, the detail technical design and tender Macedonia with Mitrovica in Kosovo. This was the dossier for this line are in the process of completion, beginning of the construction of the railway paving the way for construction works for network in Kosovo, important for passenger and rehabilitation of the line. Railway Route 10 is at freight transport, economic development and the present the only operational rail access in Kosovo to connection of Kosovo with other regions. In 1963 the neighbouring countries Serbia and the former the construction of other railway lines in Kosovo Yugoslav Republic of Macedonia. When completed the was completed. Therefore, today Kosovo line will play a major role in international freight and Railways are spread throughout the territory of passenger transport and will enable an interoperable Kosovo with a length of 335,079 km open railway railway infrastructure providing safe and more line, with length of 105,784 km in stations and effective railway transport. 103, 4 km industrial lines. Kosovo Railways is connected with Serbia through Leshak and It will open the railway market for domestic, regional Podujevë, in the North and East, and with and international train operators with direct impact on Macedonia through Hani i Elezit in the South. economic development and environment. Having in mind the regional importance of this project, the EU In 1999, Kosovo’s Railways network was in a very has granted additional grants for construction works bad situation. Due to lack of investments and for rehabilitation of this railway route. damages during the war, most of the infrastructure was out of function. The Kosovo

Government continued support from its small budget, insuring permanent support for capital projects of Kosovo Railways.

Therefore, we have achieved to repair and put in function all our railway tracks, except part of the south – west line (Xërxe – Prizren with a length of 27 km) and part of the east line (Prishtinë – Podujevë with a length of 37 km) which are out of function.

Considering the fact that the Railway Route 10 which connects Kosovo with Serbia and Macedonia is our priority, our development projects are focused mainly on the modernization of this line. However, we are very much interested in developing other lines of high importance for the Railway Sector.

The Ministry of Finance has signed a loan contract with EBRD and signature of the contract with EIB is expected till the end of this year for a general rehabilitation of Railway Route 10 (150 km) which connects Serbia, Kosovo and Macedonia. This project will start in 2016 and will be completed in 2020/2021.

Meanwhile, train operations in passenger transport and freight transport have developed significantly when Kosovo Railways Train Operator started working in commercial bases and even with old rolling stock we were able to achieve a constant yearly increase of the number of passengers and the net ton of transported goods.

Many activities happened during this time in the Railway Sector, but the most important activity was in 2011, particlularly starting 1st of September 2011 when Kosovo Railways JSC was separated into two new companies:

1. Infrastructure of Kosovo Railways JSC – INFRAKOS; and 2. Train Operations of Kosovo Railways JSC – TRAINKOS.

In 2010/2011 the Railway Regulatory Authority was established, an independent Body responsible for the regulation of the railway sector in Kosovo.

As a new entity, INFRAKOS is strongly interested in further developing existing railway lines and building new lines in order to offer the best possible services to all train operators and to have an interoperable network connected to the Regional and European Integrated Railway Network.

ROAD SECTOR

The road network in Kosovo is categorized into main roads (national) and regional roads on the one hand, which are under the administration of the Ministry of Infrastructure (MI) and local roads, including urban and rural roads on the other hand under the administration of municipalities.

The lenght of the main network (including national and regional roads) is 1962 km, of which 78 km are higways, 588 km are National Roads and 1296 km are regional roads.

The length of the local roads network is 4761 km of which 4308 are local roads and 453 km are urban roads.

The national network is well-organized; with Prishtina at the centre all regions of the country are well connected. It mainly includes: - Road M2, which runs from the northern border with Serbia through Prishtina to the southern border with the Republic of Macedonia. This road corresponds with the Road 6 of the SEETO road central network. Its southern part connects Prishtina with corridors VII and X of Europe.

- Road M25, coming from Nish (Serbia) from the north-eastern border with Serbia through Prishtina and Prizren to the southern border with Albania. This road corresponds to Road 6 of the SEETO road central network. This road is very important in its southern part because it links Kosovo with Albania. The Highway Rreshen - Blinisht - Kukes is currently under construction.

- Road M9, from the eastern border with Serbia, through Prishtina and Peja to the western border with Montenegro. Currently, this road has the highest national importance as it connects the two major cities of Kosovo. The part towards the Montenegro border is being reconstructured in order to further improve this route.

- Main additional roads are M9.1, M22.3, M25.2 and M25.3 composing branches of these main connections.

The regional network includes two types of connections:

. The Regional road, having the role of supplementing the network map and constituting connections between the main axis and regions or connecting important settlements in regional bases. . The rest of the regional roads have only limited national and even regional importance and connect small settlements with the central network. A part of this network is not fully built and, in general, is unpaved and there is no part between the two existing branches. The Ministry of Infrastructure has a rehabilitation program for the maintenance of roads in cooperation with municipalities, which has been implemented to a considerable degree from 2008 onwards. The Ministry of Infrastructure has invested in the entire Kosovo network, since it seems to justify the potential reclassification of the network, including more roads under the responsibility and national funds.

In the Road sector, the main priorities are the improvement of priority sections in Routes 6 and 7:

- Road 6 links Ribarevina (Montenegro) with Skopje (FYROM) through Zubin Potok, Mitrovica, Prishtina, Ferizaj and Hani Elezi (Kosovo). In Ribarevina, road 6 connects with road 4 linking the port of Bar (Montenegro) with Belgrade (Serbia) and Vat (Romanian border).

- Road 7 links Lezha (Albania) with Dolcevac (Serbia), through Vermica, Prizren, Prishtina and Podujeva (Kosovo). Dolcevac is in Corridor X.

CIVIL AVIATION SECTOR

Civil Aviation in Kosovo after 1999 has started from zero but has been growing very rapidly and successfully, so today this sector proudly can show its achievements in the development of civil aviation, connecting Kosovo with the world to the benefit of Kosovo’s citizens and beyond as well as implementing with high competence ICAO rules and regulations.

Kosovo has two airports which can serve for air traffic of passengers and goods:

1. Pristina International Airport “Adem Jashari”; and 2. Gjakova Airport

PRISTINA AIRPORT

The Prishtina International Airport “Adem Jashari “is located approximately 15 km southwest of Prishtina on a relatively flat area 545 m above sea level with mountain ranges to the west and south of the airport.

The closest summit to the aerodrome is Golesh Mountain to the west, which reaches the height of 1019 meters.

KFOR handed over the responsibility of the aerodrome operations to UNMIK on 1st of April 2004. In August 2010, the Kosovo Government signed the agreement for concession of Prishtina International Airport J.S.C – Adem Jashari assets and operations with “Limak Kosovo International Airport J.S.C.” for a period of 20 years.

The Airport is of strategic importance to Kosovo’s economy and as the country’s only International airport, it serves as the primary gateway to the rest of the world.

Prishtina International Airport currently has a single runway system with a parallel taxiway. The runway is 2501 m long, 45 m wide and oriented in the 17-35 direction.

At the end of 2013, a new passenger terminal was constructed in a modular basis to enable future expansion and improvements of passenger comfort. This terminal is sized to handle 900 to 1000 departing or arriving passengers with a level of service C (good). The annual handling capacity of the terminal building is 4 million passengers. A new car park area and land side road access together with a new apron, taxiway enlargement and connection to the apron were constructed. The new apron can accommodate 8 Code C or 4 Code C and 2 Code E aircrafts. There are 4 passenger boarding bridges.

A new control tower and ATC building has been recently built-up for operation together with the relocation and upgrade of some NAV-AID equipment.

In addition to being a vital component of Kosovo’s transport infrastructure, Prishtina International Airport is one of the busiest airports in the Balkans, having served more than 1,5 million passengers annually in recent years. The passenger growth in 2015 compared to 2014 is expected to be as high as 20%.

Currently over 35 air carriers operate at Prishtina International Airport, serving over 22 destinations and providing direct connections to many of Europe’s largest cities, including Zurich, Vienna and Istanbul.

GJAKOVA AIRPORT

Gjakova airport is located 5 km north from the city of Gjakova. It was reconstructed by Italian KFOR in order to support the military activity of aircrafts involved in the NATO Joint Guardian Operation. At the end of December 2013, an agreement between the Italian Government and the Government of the Republic of Kosovo was signed, which made it possible for Gjakova airport to be transferred to Kosovo authorities, including all of its operational equipment.

At the beginning of September 2015, the Government of the Republic of Kosovo has appointed the members of the board of Gjakova Airport. It is expected that the Board will soon select the CEO of the company and thus enable establishment of basic services at Gjakova Airport.

This airport has a single runway with a parallel taxiway. The runway is 1799 m long, 30 m wide and oriented in the 18-36 direction. Surface of the runway is in asphalt, shoulders in gravel, 7.5 m wide. Currently the airport is closed for operation.

TRANSPORT SECTOR SINGLE PROJECTS PIPELINE

Railway projects Road projects

Estimated Weighted No Projects Group costs (€) score General Rehabilitation of Railway Route 10 (Border with Serbia - Leshak –Fushe Kosove – 1 193,700,000.00 Group 1a 80 Hani i Elezit – Border with Macedonia)

Construction of the Highway (SEETO Route 7) 2 section E from Pristina to Merdare 150,000,000.00 Group 1a 70

Construction and modernisation of a Railway 3 Line Pristina - Fushe Kosove – Pristina Airport 40,200,000.00 Group 1b 68 “Adem Jashari” General Rehabilitation of the Eastern Railway 4 line (Border with Serbia – Podujevo – Fushe 67,300,000.00 Group 1a 66 Kosove) Construction of the road N9 Prishtinë - Pejë 5 (SEETO Route 6 A) section from Kijevë -Klina to 60,800,000.00 Group 1a 66 Zahaq (30 Km) Construction of the new railway line Prizren 6 (Kosovo) – Border with Albania – Durres 40,200,000.00 Group 2b 66 (Albania) General Rehabilitation of the Western Railway 7 Line (Fushe Kosove – Klina – Peja) 125,800,000.00 Group 1a 62

Rehabilitation of the National Road N25.3 from 8 Shtime – Ferizaj - Gjilan (46.2 Km) 9,200,000.00 Group 2b 58

General Rehabilitation of the South/West 9 Railway Line (Klina – Prizren) 91,200,000.00 Group 1a 56

Upgrade of the Regional Road R107 from Pejë - 10 Gjakova to Prizren (70.3 Km) 140,000,000.00 Group 2b 54

Construction of the new motorway from 11 Prishtina – Gjilan - Dheu i Bardhë (border with 272,000,000.00 Group 2b 46 Serbia) (68 Km)

PIF 1 TRA: General Rehabilitation of Railway Route 10 (Border with Serbia - Leshak –Fushë Kosovë – Hani i Elezit – Border with Macedonia)

Part One

1. GENERAL INFORMATION

General Rehabilitation of Railway Route 10 (Border with Project title: Serbia - Leshak –Fushe Kosove – Hani i Elezit – Border with Macedonia) Sector Transport / Infrastructure Subsector* (see list on the last page) Railway Kosovo Railways Infrastructure JSC – INFRAKOS Lead project Beneficiary/proponent: Ministry of Finance, and Ministry of Infrastructure Project ID/number Ministry of Infrastructure / Infrastructure of Kosovo Railways JSC – Institution that is the author of the project INFRAKOS proposal

Location/Map Kosovo Total investment estimated:  Preparatory activities (planning 193,700,000.00 € for documentation, technical preparatory activities : 2,2 ME documentation, land acquisition etc.) construction works: 182 ME  Construction works supervision of the project : 9,5 ME  Supervision Responsible or authorized person for Infrastructure of Kosovo Railways JSC – INFRAKOS contact: Agron Thaçi Name – Position: CEO of INFRAKOS [email protected] Email address - Telephone: Tel. +381 38 550 550 500

2. PROJECT DESCRIPTION

A feasibility study financed by WBIF and implemented by IPF Technical Assistance was undertaken during 2010. The most beneficial option for Railway Route 10 upgrade in Kosovo was proved to be general rehabilitation and electrification of the line.

The next step towards implementation is the preparation of the Purpose of the infrastructure project detailed design for the entire line.

Financed by WBIF and supported by EBRD there is an ongoing procedure for implementation of the Project Design for the Southern part of the Railway Route 10 (Fushe Kosove – Hani i Elezit – Border with Macedonia). There is a need to follow with project design for the northern part of the line in order to start with general rehabilitation.

The existing railway lines in Kosovo are in poor condition. The Governmental strategy is to develop railway transport, in this context especially Railway Route 10.

Therefore the specific objective of this project is to rehabilitate and modernize Railway Route 10 in order to increase safety, speed and fulfil requested criteria for interoperability. Implementation of this project will contribute to increasing capacity, safety, speed, and developing the railway market in Kosovo and beyond. Meanwhile, developing this project, INFRAKOS and the Ministry of Infrastructure will fulfil part of their development strategies. Developing this project INFRAKOS will achieve to realize needed general rehabilitation and modernization of this line in order to have interoperable railway infrastructure through which safe railway transport and railway market opening for domestic, regional and Results of the infrastructure project international train operators will be supported. The main stakeholders affected by this project are the state railway operator of Kosovo (TRAINKOS) and all other train operators (local, regional and EU) who would like to use this infrastructure in the future. The core regional transport network of South East Europe was established by the REBIS project (Regional Balkans Infrastructure Study) financed by the EU and adopted in 2003 by the governments of the region.

As a part of the SEETO Railway Corridors and Routes, Railway Route 10 connects Kosovo with Serbia and Macedonia.

One of the priority objectives stated in the National Multi Modal Transport Strategy approved by the Government of Kosovo in 2013 is to create links to the European transport network and - in line with this - to provide a priority railway network linking the transport gateways to the areas of potential economic growth. Railway Route 10 and the East West Railway Line (with future construction of a new railway line Prizren (Kosovo) – Durres (Albania)) are defined by the Government of Kosovo as part of this priority railway network.

Taking into consideration outcomes from the Feasibility Study for General Rehabilitation of Railway Route 10 which was financed by IPF and completed in 2010, WBIF has approved a budget for Project General description (max 2 pages) Design of the Southern part of Railway Route 10. The Kosovo Government and two International Financial Institutions (EBRD and EIB) have supported this project, and now there is an ongoing procedure in place for a financial contract between these institutions and the Kosovo Government for implementation, particularly General Rehabilitation of Railway Route 10. Knowing that the Kosovo Government has many other priorities and budget possibilities are very small, an additional request to WBIF for support with grant implementation of this project is crucial.

Rail Route 10 branches from Lapovo (Serbia) between Belgrade and Nis (Corridor X connects to Belgrade via Lapovo) and forms an alternative route to Skopje: Belgrade – Lapovo - Kraljevo-Fushe Kosove - Skopje.

This is a regional project connecting Kosovo and neighboring countries; it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. This is the main direct railway connection between Serbia, Kosovo and Macedonia.

Rail Route 10 sustained significant damages during the period 1990- 1999, some of which have been partially repaired. The level of regular maintenance over the same period was reduced to a minimum resulting in the current sub-standard condition of the line. Maximum speeds have been reduced to 60-70 km/h and in some specific cases the maximum speed is as low as 20 km/h due to safety reasons (sections with tunnels for instance).

In order to achieve projected speed and increase safety conditions, there is an immediate need for general rehabilitation and modernization of this line.

General rehabilitation of Railway Route 10 is a precondition for development of the railway sector in Kosovo, and implementation of this project will make possible:

. To increase safety and speed conditions of this line; . To have interoperable railway infrastructure as a linkage between neighboring countries and the wider region; . To have better conditions for development of the passenger and freight transport; . To increase economic growth and social development; . To facilitate trade and economic links with neighboring countries and EU member states; . To improve transport capacities; . To develop multimodal and intramodal transport in Kosovo and beyond; . To be part of the Regional and EU Integrated Railway Network.

Therefore, seeing the will of mentioned IFIs and our Government to finance rehabilitation of Railway Route 10, WBIF and other grants will contribute very much to the finalization of the project.

3. ELIGIBILITY

This project is in line with Part III of the Indicative Strategy Paper for Kosovo (2014/2020)

The integration of Kosovo into regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

Coherence with valid EU policies and The Indicative Country Strategy Paper (2014-2020) adopted by the EC strategies on 20th of August 2015 states that the integration of Kosovo into regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

In addition the Indicative Country Strategy Paper emphasizes that IPA II will support only the interventions aimed at connecting Kosovo with its neighbours. Assistance will be channelled through regional interventions, in particular in the railway sector, through WBIF coordination.

In general, economically feasible and bankable projects should be funded by loans provided by IFI or other donors. The fiscal space for taking up loans is limited following the impact of the economic crisis in recent years. Grant funding for investments is therefore important but at the same time inherently limited. Consequently, there is a need for a mechanism to agree on overall national and regional investment priorities between the government, the European Union, other donors, relevant regional organizations and the IFI, as well as for blending of grants and loans. This coordinating platform will be the Western Balkans Investment Framework (WBIF).

This project is in line with the Kosovo progress report (October 2014). Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritization of projects on the routes defined in the indicative extension of the TEN- T to the Western Balkans region.

The study for connection with these countries should be done according to the multi-modal transport strategy, with priority from the Secretariat of South East Europe, Transport Observatory (SEETO) and in cooperation with neighbouring states. After rehabilitation of the basement of existing lines and with the electrification of lines from neighbouring countries, the investment will be followed in the railway electrification.

This project is also in line with the joint statement WB 6 ministerial held in Pristina in March 2015.

We recognize that improving connectivity within our region as well as with the EU is a key factor for growth and jobs in the WB.

We have broadly agreed on the core transport network for the WB. It is based on the SEETO comprehensive network and reflects TENT guidelines. We were committed to overcome the few outstanding issues before the PM WB 6 in Brussels in April 2015. This project is also compliant with:

- Strategy for European Integration 2014 – 2020 - Declaration of Mid-Term Priority Policies 2014-2016 - Mid-Term Expenditure Framework (MTEF) 2014-2016.

Railway Route 10 is part of the SEETO Comprehensive Network, which based on EU strategic documents should be integrated in the Trans European Transport Network (TEN-T). This line serves as an alternative line of Pan-European Corridor X, connecting Lapovo (Serbia) – Fushe Kosove (Kosovo) – Skopje (Macedonia). It has an obvious strategic dimension from a regional aspect for the development of the railway transport.

The importance of the project is part of the:  SEETO Strategic Documents

This project is in line with the Government programme 2015/2018 Point 1.10.2.

The Government intends through development banks to finance the rehabilitation of the railway Line 10, which allows cheaper transportation of people and goods. Over four years, the Government will finance the rehabilitation of the East-West line, which enables a rail link with Albania and Montenegro; respectively a connection to the sea ports on the Adriatic will be created.

In the section dedicated to the further development of Kosovo’s transport infrastructure it is explicitly mentioned that in the medium and long term period focus should be on the key railway lines, where the key priority is railway route 10. This justifies Government commitment to implement this important railway project, which undoubtedly has a regional dimension and which is in line with the “connectivity” agenda of the EU Strategy for European Integration 2014 – 2020.

Modernization of the rail infrastructure by connecting to Pan-European corridors is considered as one of the objectives of the Strategy for European Integration. The importance of the project is linked with the Kosovo Multi Modal Coherence with national Transport Sector Transport Strategy 2012 – 2021. Strategic framework This project is recognized as key priority for railway infrastructure development in Kosovo.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: By implementing the general rehabilitation of this line Kosovo will improve and develop in highest level intermodal transport on a local, Improving inter-modality regional and international level. This will facilitate “door to door” transport using railway and road vehicles through the existing freight terminal in Fushe Kosove node. This is the main direct railway connection between Serbia, Kosovo and Macedonia. This line will facilitate connections for passengers and freight transport between the respective countries and at the same time Increasing international traffic (freight, improve conditions for transport. persons) Building a new railway link between Kosovo and Albania, Railway Route 10 will serve as a shorter possible connection between Corridor X and Corridor VIII. Being included in the latest Multi-annual It is included in the latest SEETO Multi-Annual Plan (MAP), plan (MAP) of SEETO http://www.seetoint.org/library/multi-annual-plans/ The line is connected with TEN-T Corridor through Lapovo in Serbia and Providing connection to TEN-T corridors Skopje in Macedonia Rehabilitation of this line will be done in accordance with the Its contribution to Improvement of safety contemporary railway safety standards. Having in mind the current conditions condition of the respective railway line, this project will have significant impact on the safety aspect. New, upgraded or rehabilitated By this project is foreseen general rehabilitation and modernization of infrastructure Railway Route 10. Meeting annual traffic demand growth The project meets the requested criteria for transport growth. Implementation of this project will lead to a significant reduction of Time reduction for journeys journey times. Realizing this project will lead to the predominant part of road freight Its effect on the reduction of CO and 2 transport being shifted to railways which would have significant impact noise emissions in respect to the reduction of CO2 and noise emission. The project would facilitate significant inter-regional economic growth and contribute to regional cohesion as well as assist in the development Its contribution to overall economic growth of seamless connections for passengers and freight in the Western Balkans, primarily by connecting Kosovo and the neighbouring countries. This project is in direct connection with the investments on railway Its integration with other projects infrastructure in the region. In terms of alignment, there was no need for alternative analyses having in mind that the project is related to rehabilitation of the The existence of alternatives existing line. However, alternative options were explored when it comes to telecommunication, signalling and electrification options.

Part Two 5. MATURITY

Available studies and documents Ready and approved Being worked on Not started yet

Conceptual idea X

Pre-feasibility study X

Conceptual design X

Feasibility study + CBA X

EIA study (if needed) X

Valid spatial planning documents X

Land property resolved X

Preliminary design X

Main design/detailed design X

Tender documentation X

Construction and other permits X

Construction contract signed X

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? X The realization of the project will have direct impact on the improvement of the railway connection within Kosovo, with regional countries and Integrated EU Network Does the project have cross-border impact or This railway line has cross-border impact with impact on other countries in the region? X Serbia and Macedonia and also will have impact on other neighbouring countries. Can the project in any other way be X Taking into consideration the SEETO earmarked as a regional project? Comprehensive Railway Network and linkage to TEN-T, this project can be considered as a regional project too.

7. SPENDING SCHEDULE

201 2 2 0- 0 0 202 202 20 2016 2018 2019 2020 2021 201 1 2 3 4 25 5 7 2 Costs (in 2,2 47,875,0 47,875,0 47,875,00 47,875,0

EUR) of: 00 00 0 00 Project preparation 2,2 (TA) 47,875,0 47,875,0 47,875,00 47,875,0 Investment 00 00 0 00

8. OTHER ASPECTS

Yes, EBRD and EIB are negotiating the terms of a financial contract for Have IFIs or other donors already been general rehabilitation of Railway Route 10 with the Kosovo Government, consulted on the project? When? What was so their judgment is to follow with investments for general their judgement? rehabilitation of the line. Existing EU or WBIF support (TA): amount, Ongoing purpose Has the Ministry of Finance already been The Ministry of Finance is informed concerning this project and will consulted on the project? Describe feedback. support this project. Does the project generate revenues from This project is as a precondition for future developments and will end users? generate revenues from train operators. Description of project team for INFRAKOS has established a PIU for this project. implementation

GRID 1 TRA: General Rehabilitation of Railway Route 10 (Border with Serbia - Leshak –Fushe Kosove – Hani i Elezit – Border with Macedonia)

WBIF Beneficiary: Kosovo Railways Infrastructure JSC - INFRAKOS Date: 25.08.2015

Sector: Transport

Sub-sector Railways

Line Ministry: Ministry of Infrastructure

Proposed infrastructure General Rehabilitation of Railway Route 10 (Border with Serbia - Leshak – project: Fushe Kosove – Hani i Elezit – Border with Macedonia)

Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: X Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritisation criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 5 Existing intermodal centers = 3 1 5 modality No inter-modality = 1

The project increases Significant increase = 5 S2 international traffic of 5 Moderate increase = 3 1 5 persons and freights Limited increase = 1

The project is included in the Priority List = 5 S3 latest Multi-annual plan 5 Preparation list = 3 2 10 (MAP) of SEETO Not included = 1

The project provides Yes = 5 S4 5 1 5 connection to TEN-T corridors No = 1

Significant safety problems = 5 The project addresses a Safety problems of moderate nature S5 5 1 5 significant safety problem = 3 No record of safety issues = 1

New infrastructure, with high standards = 5 Technical characteristics of S6 5 Improvement of characteristics= 3 1 5 the infrastructure Rehabilitation retaining the same characteristics= 1

Significant growth = 5 Annual traffic demand S7 5 Moderate growth = 3 1 5 growth No growth = 1

No effects = 5 S8 Environmental effects 5 Minimal effects = 3 2 10 Serious effects = 1

Inter-regional = 5 The project contributes to S9 3 Regional = 3 2 6 overall economic growth Country = 1

The project is part of a Finalizing an investment = 5 S10 programme, continuing an 1 Continuing running investment = 3 1 1 existing investment New project = 1

No other alternative solution = 5 The project is the main Other alternative solution, other type S11 transport solution in the 3 of transport = 3 1 3 same connection Other alternative solution, same type of transport = 1 The project provides improved transit /transport facilities, access to new Significant improvement = 5 S12 markets and jobs / education 5 Medium improvement = 3 2 10 and health services and Limited improvement = 1 stimulates mobility and new investments Well defined and confirmed by studies = 5 Total cost of the project was S13 5 Well defined but not confirmed by 1 5 defined studies = 3 Superficially defined = 1 The management Adequate capacity = 5 implementation/ operation/ Arrangements for strengthening the S14 maintenance capacity of the 5 1 5 capacity in place = 3 proponent is adequate for Insufficient capacity = 1 this type of the project

Final score for the project: 80

PIF 2 TRA: Construction of the Highway (SEETO Route 7) section E from Pristina to Merdare

Part One

1. GENERAL INFORMATION

Construction of the Highway (SEETO Route 7) section E from Project title: Pristina to Merdare Sector Transport/Infrastructure Subsector* (see list on the last page) Road Lead project Beneficiary/proponent: Ministry of Infrastructure Project ID/number Ministry of Infrastructure Institution that is the author of the project proposal

Location/Map

Total investment estimated: Total investment :150,000,000.00 € for  Preparatory activities preparatory activities : 15 ME (planning documentation, construction works: 130 ME technical documentation, land acquisition etc.) supervision of the construction works : 5 ME  Construction works The International Supervision will be nominated  Supervision Responsible or authorized person for Rame Qupeva contact: Rame Qupeva Name – Position: Director of Infrastructure Department

Email address - Telephone: [email protected], 038 211 494

2. PROJECT DESCRIPTION

Purpose of the infrastructure project

The construction of a highway from Pristina to Merdare creates the shortest connection between the Kosovo road transport network the European network of international roads. It is of great economic importance from the perspective of the transportation of goods and passengers within SEE countries, as well as being the shortest route to European and Mediterranean countries. By construction of the highway between Pristina and Merdare, Kosovo would ensure an efficient highway link with the Adriatic/Ionian coast in Albania.

The realization of the project will have direct impact on the improvement of the road connection with Serbia and will contribute to the integration of Kosovo into the transport system of the Region and entire Europe. Also, in the region of South East Europe, this project contributes to the significant increase of the volume of transit traffic between the SEETO network and the rest of Europe. This Project will also influence the following:  reduction of travel times,  reduction of the road infrastructure maintenance costs,  better connection in Western Balkan Region  cost efficiency regarding environmental protection, accidents and congestions at border crossing Merdare and urban area near the Results of the infrastructure project existing road in comparison to competitive roads,  fostering development of WB through improved connections

The current and urgent need in order to move towards construction the new road is the Update of the Feasibility Study as well update of the Preliminary Design for the Route 7 in Kosovo, from the border with Serbia (Merdare) up to Pristina (length of 23 km) in order to connect with existing highway Pristina – Albanian border (Vermice). The result of the updating of the feasibility study will be to establish spatial, environmental, social, financial and economic justification for the investment, create the basis for making the decision on investment justification and initiate the procedure for issuing the construction approval. It will also define the purpose, position, alignment, cross

section, capacity, technical, tehnological and functional characteristics of Route 7.

The construction of the highway between Pristina and Merdare is considered as regional project connecting Kosovo and neighbouring countries, it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. This is the main direct road connection between Serbia and Kosovo, which would ensure smooth flow of people and goods.

The core regional transport network of South East Europe was established by the REBIS project (Regional Balkans Infrastructure Study) financed by the EU and adopted in 2003 by the governments of the region. Two routes of this network pass through Kosovo, namely:

• Route 6 connecting Corridor VIII in the former Yugoslav Republic of Macedonia (Skopje) via Pristina to route 4 in the Eastern part of Montenegro.

• Route 7 connecting Corridor X in Serbia (Nis) via Pristina to the Adriatic/Ionian coast in Albania.

One of the prime objectives stated in the National Multi Modal Transport Strategy approved by Government of Kosovo in 2013 is to create links to the European transport network and - in line with this - to provide a priority road network linking the transport gateways to the areas of potential economic growth. Routes 6 and 7 are defined by the Government of Kosovo as part of this priority road network.

Against this background, two road axes through Kosovo are considered of prime importance to the Government of Kosovo:

General description (max 2 pages) • Route 6: the Pristina – Blace (border to fYRo Macedonia) road (approximately 75 km) and the Pristina – Airport - Pejë – Montenegro border road (approximately 120 km long).

• Route 7: the Vermice (border with Albania) – Pristina – Merdare ( border with Serbia) road (approximately 120 km).

Part of the route 7 is constructed from Vermice (border to Albania) up to Pristina and the road is open for transport since 2013. These routes constitute the main links to the neighbouring capital cities and to the regional transport network in South East Europe. At the same time, they connect some of the main cities and economic centres within Kosovo. In 2006 the preparation of a comprehensive feasibility study and environmental assessment of the two routes was commissioned by the Ministry of Transport and Communications in Kosovo (MTC). The study was undertaken by a consortium led by COWI A/S (Denmark).

The construction of the road connecting Pristina and Merdare (border with Serbia) represents logical continuation of the construction works on the route 7. The feasibility study of 2006 had proposed a Motorway close to Pristina, a new 2- lane road between Podujevë and Besi and upgrading of the existing road to the border to Serbia, with an estimated cost of 132.8 million EUR.

3. ELIGIBILITY This project is in line with Part 2, Chapter 2.1of the Indicative Multi Country Strategy Paper (2014/2020): Investing in improved transport and energy interconnections within the region and with the EU, to promote sustainable economic growth, jobs, trade and cultural exchange.

This project is in line with Part 3 of the Indicative Multi Country Strategy Paper (2014/2020). Regional investment support should be directed towards projects having a clear regional dimension which contribute to the socio- economic development of more than one IPA II beneficiary and address in particular investment needs related to the development of the competitiveness of businesses, the connectivity between the IPA II beneficiaries and the EU Member States, protection of the environment and mitigation of and adaptation to climate change.

This project is in line with the Kosovo progress report (October Coherence with valid EU policies and 2014): strategies Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritisation of projects on the routes defined in the indicative extension of the TEN-T to the Western Balkans region.

The Project is located on the extension of Pan-European Corridor X / branch X c/. It has an obvious strategic dimension from a regional aspect, which is actually the reason for being confirmed as one section of Route 7 in the comprehensive transport network defined by SEETO.

A strategic interest of Kosovo for the Project was confirmed by the Ministry of Infrastructure and has the support of Kosovo Government.

This project is in line with the Government programme Point 1.10.1. There was a high scale of investment in infrastructure, particularly in the construction of European corridors. The government will continue implementing the existing contracts for the construction of the highway Prishtina-Hani i Elezit - R6, which will be completed in the medium term. This highway and Highway R7 will cover approximately two-thirds of European routes which will enable better approach of foreign investors in Kosovo and better connection of Kosovo cities. With the completion of the highway Prishtina-Hani i Elezit and with the construction of the highway R7 connecting Kosovo and Serbia, Kosovo meets the requirements for the construction of European corridors defined by Contribution to valid national development South East Europe Transport Observatory (SEETO) and will enable objectives? Kosovo to have a central role in the Balkans.

This project is in line with the National Economic Reform Programe (NERP) 2015: Key measures (Flagship measures) in relation to transport infrastructure for the period 2015-17 are related to the road infrastructure construction and maintenance. Kosovo will continue construction and modernisation of road transport through domestic funding and funding from development partners. In line with this the main projects on the road network involve among others: Complete construction of R7 – Highway Merdare - Pristina - Vermnice, interconnecting Kosovo with Albania and Serbia. In respect

to the remaining part of the road to the border a feasibility study will be undertaken during 2015 to seek external financing opportunities.

The importance of the project is stated in:

 Multi Modal Transport Strategy 2012 – 2021 Construction of the Road Route 7 is considered as one of the operational objectives of the Kosovo Multi modal transport strategy. Namely, Coherence with national Transport Sector integration of the Kosovo transport network into the network of Pan- Strategic framework European corridors is considered as first operational objective of the Kosovo Multi modal transport strategy and the construction of the highway between Pristina and Merdare is directly contributing to achievement of that objective.  Action Plan 2013-2016 approved by Kosovo Government.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: There is a strong commitment from the Government of Kosovo to improve the inter-modality aspect of the transport system in Kosovo. Construction of the Route 7 should be considered in a wider sense when it comes to inter-modality, as a trigger for construction of Improving inter-modality intermodal centres. Namely, through the construction of the highway between Pristina and Merdare, the economically active zones in that part of Kosovo could become intermodal centers which would boost socio economic development. Construction of 22 km long Route 7, from Merdare to Pristina with connection to Corridor X E-75 will contribute to the development of Increasing international traffic (freight, the network capacity, resulting in faster integration of Route 7 into the persons) Pan-European and Regional system/ Comprehensive Network of SEE. It is justifiably expected that traffic of people and goods will be significantly increased. Being included in the latest Multi-annual It is included in the latest Multi-annual plan (MAP) of SEETO, plan (MAP) of SEETO http://www.seetoint.org/library/multi-annual-plans/ The Project is located on the extension of Pan-European Corridor X / branch Xc/. It has an obvious strategic dimension from a regional Providing connection to TEN-T corridors aspect, which is actually the reason for being confirmed as one section of Route 7 in the comprehensive transport network defined by SEETO. Construction of the highway between Pristina and Merdare will significantly improve safety conditions on this part of the road network of Kosovo. Namely, by construction of the highway with the Its contribution to Improvement of safety contemporary safety standards the number of accidents will be conditions significantly reduced, which is now caused by the road passing through the highly populated and economically active region of Kosovo. New, upgraded or rehabilitated New infrastructure will be constructed following the new alignment. infrastructure Meeting annual traffic demand growth Annual traffic growth is 6 % at the moment. Construction of the highway between Pristina and Merdare will create Time reduction for journeys significant journey time reduction. Its effect on the reduction of CO and 2 Yes, based on the previous/preliminary EISA done in 2006 by COWI. noise emissions The project would create significant economic growth potential, Its contribution to overall economic growth according to the SEETO website, EIRR is 8.25%, which is considered significant in the Western Balkans. The project is integrated with the recently completed section of the highway which connects Pristina with the Kukes and Durres in Albania. Its integration with other projects So, this project should be considered as a continuation of the investment in the modernization of the road transport network of Kosovo.

In the Feasibility Study possible alternative options are analysed and The existence of alternatives the selected option is proven as the most adequate and feasible one.

Part Two 5. MATURITY

Available studies and documents Ready and approved Being worked on Not started yet

Conceptual idea x

Pre-feasibility study x

Conceptual design x

Feasibility study + CBA x

EIA study (if needed) x

Valid spatial planning documents x

Land property resolved x

Preliminary design x

Main design/detailed design x

Tender documentation x

Construction and other permits x

Construction contract signed x

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? Yes This is a regional project connecting Kosovo and Serbia, it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. Does the project have cross-border impact Yes This is the one of the main direct road or impact on other countries in the region? connections between Serbia and Kosovo, mainly used for freight transport. Can the project in any other way be Yes The project connects to Regional countries earmarked as a regional project? Kosovo and Serbia and also provides a connection to Corridor X E-75.

7. SPENDING SCHEDULE

2010- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 Costs (in EUR)

of: Project 7,5 7,5

preparation (TA) ME ME 33,75 33,75 33,75 Investment 33,75ME ME ME ME

8. OTHER ASPECTS

Have IFIs or other donors already been EIB and EBRD are working closely with the Government to prepare consulted on the project? When? What was the needed studies and start the implementation their judgement? Existing EU or WBIF support (TA): amount, To start soon. purpose Has the Ministry of Finance already been Yes consulted on the project? Describe feedback. Does the project generate revenues from end No users? Description of project team for PIU should be established. implementation

GRID 2 TRA: Construction of the Highway (SEETO Route 7) section E from Pristina to Merdare

WBIF Beneficiary: Date: 25/08/2015

Sector: TRANSPORT

Sub-sector Road

Line Ministry: Ministry of Infrastructure

Proposed infrastructure Construction of the Highway (SEETO Route 7) section E from project: Pristina to Merdare

Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: YES Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritization criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 modality 3 Existing intermodal centers = 3 1 3 No inter-modality = 1

Significant increase = 5 The project increases S2 international traffic of persons 5 Moderate increase = 3 1 5 and freights Limited increase = 1

Priority List = 5 The project is included in the S3 latest Multi-annual plan (MAP) of 5 Preparation list = 3 2 10 SEETO Not included = 1

The project provides connection Yes = 5 S4 5 1 5 to TEN-T corridors No = 1

Significant safety problems = 5 The project addresses a S5 5 Safety problems of moderate nature = 3 1 5 significant safety problem No record of safety issues = 1

New infrastructure, with high standards = 5 Technical characteristics of the S6 5 Improvement of characteristics= 3 1 5 infrastructure Rehabilitation retaining the same characteristics= 1

Significant growth = 5 S7 Annual traffic demand growth 5 Moderate growth = 3 1 5 No growth = 1 No effects = 5 S8 Environmental effects 3 Minimal effects = 3 2 6 Serious effects = 1 Inter-regional = 5 The project contributes to overall S9 3 Regional = 3 2 6 economic growth Country = 1

Finalizing an investment = 5 The project is part of a S10 programme, continuing an 3 Continuing running investment = 3 1 3 existing investment New project = 1

No other alternative solution = 5 Other alternative solution, other type of The project is the main transport S11 3 transport = 3 1 3 solution in the same connection Other alternative solution, same type of transport = 1

The project provides improved transit /transport facilities, Significant improvement = 5 access to new markets and jobs / S12 3 Medium improvement = 3 2 6 education and health services and stimulates mobility and new Limited improvement = 1 investments

Well defined and confirmed by studies = 5 Total cost of the project was S13 3 Well defined but not confirmed by studies 1 3 defined = 3 Superficially defined = 1

The management Adequate capacity = 5 implementation/ operation/ Arrangements for strengthening the S14 maintenance capacity of the 5 capacity in place = 3 1 5 proponent is adequate for this type of the project Insufficient capacity = 1

Final score for the project: 70

PIF 3 TRA: Construction and modernisation of a Railway Line Pristina - Fushe Kosove – Pristina Airport “Adem Jashari”

Part One

1. GENERAL INFORMATION

Construction and modernisation of a Railway Line Pristina - Project title: Fushe Kosove – Pristina Airport “Adem Jashari” Sector Transport / Infrastructure Subsector* (see list on the last page) Railway Kosovo Railways Infrastructure JSC – INFRAKOS Lead project Beneficiary/proponent: Ministry of Finance, and Ministry of Infrastructure Project ID/number Ministry of Infrastructure / Infrastructure of Kosovo Railways JSC – Institution that is the author of the project INFRAKOS proposal

Location/Map Kosovo Total investment estimated:  Preparatory activities (planning Preparatory activities: 3.5 M € for detailed project design, of the Line documentation, technical with length of approximately 20 km documentation, land acquisition Construction works: 35 M€ etc.) Supervision of works: 1.7 M€  Construction works Total 40,200,000.00€  Supervision Responsible or authorized person for Infrastructure of Kosovo Railways JSC – INFRAKOS contact: Agron Thaçi Name – Position: CEO of INFRAKOS [email protected] Email address - Telephone: Tel. +381 38 550 550 500

2. PROJECT DESCRIPTION

A feasibility study financed by WBIF and implemented by IPF Technical Assistance was undertaken during 2012/2013. The most beneficial option for this line was proved to be general rehabilitation and electrification of the line.

The next step towards implementation of this project is the preparation of the detailed design in the first phase, and construction of missing Purpose of the infrastructure project part and general rehabilitation and modernization in the second phase of this line.

The existing railway lines in Kosovo are in poor conditions. The Governmental strategy is to develop railway transport, in this context especially Railway Route 10. Therefore the specific objective of this project is to construct and modernize the railway line between Pristina - Fushe Kosove – Pristina Airport “Adem Jashari”. Meanwhile, developing

this project, INFRAKOS and the Ministry of Infrastructure will fulfill part of their development strategies.

Through developing this project INFRAKOS will achieve to realize much needed documents for future general rehabilitation, construction of the missing part of the line and modernization of this line in order to have interoperable railway infrastructure through which multi modal Results of the infrastructure project transport to and from Pristina Airport will be established and developed. A main result of this project will be the establishment of a safe and non-polluting link between the Capital City Pristina and Pristina Airport.

One of our priority projects is the rehabilitation of the existing Railway line from Capital City Pristina to Pristina Airport, construction of the missing link from the existing line (which is around two kilometers near the airport entrance) to the terminal, and construction of the Railway Terminal within the Airport. This project is very important for the development of the future passenger transport and at the same time freight transport. The project is as a priority project within the Multi Modal Transport Strategy for Kosovo, the Sectoral strategy of the Ministry of Infrastructure and it is included in the European Partnership Action Plan of the European Commission for Kosovo.

This is a very important project for the future general rehabilitation and construction of the missing part of the airport line; it contributes to development of seamless connections for passengers and freight in the future. Except connection of Pristina and Pristina Airport, this will be as important project for economic development of Pristina Airport, railways and wider.

The concept for rail connection to the International Airport Prishtinë was initially based on the assumption to complete a missing link of some 1 km from the existing railway line Fushë Kosovë - Pejë. Upon completed analysis of the local situation in the area, we defined two possible solutions of this concept and both of them differ from the initial assumption. General description (max 2 pages) The concept for rail connection to the airport assumes the operation of shuttle trains from station Prishtinë over Fushë Kosovë to the airport by use of existing infrastructure as much as possible. This practically means that the shuttle trains would operate along the Prishtinë - Fushë Kosovë section on the Podujevë - Fushë Kosovë line and along the Fushë Kosovë-Bardh section on the Fushë Kosovë-Pejë line, which is a 13 km in total trip by train in one direction. However, the shuttle train is not reaching the terminal building of the airport yet. In order to do so, the shuttle train needs to operate along the industrial line Bardh - Magura of some 5 km in addition and then to use the possible 2 km siding to the terminal building of the airport.

In total, this link would be 20 kms long from the capital to the airport in one direction. The shuttle trains usually operate on a 15 or 30- minutes basis in peak hours of the airport and on a 60-minutes basis in off-peak hours. These requirements will hardly be reached if the train needs to reach Bardh station first and then to operate along the industrial line. This solution would require substantial improvements of the industrial line and major changes of train operations in Bardh station, including the adjustments of the timetables for other trains. We have analyzed another solution, which eliminates the major restrictions imposed by the previous solution. Instead of reaching Bardh station, the shuttle train will divert over siding to the airport, which is located some 2 kms south from the Fushë Kosovë station, near the bridge over the river Drenas. The new siding to the airport would be 6.6 kms long, which in total is the trip by train of some 15 kms from the

capital in one direction.

Having in mind rehabilitation works on the existing sections of this connection and elimination of the need to use Bardh station and the industrial line for regular operation of shuttle trains, including the additional investments, the proposal is to continue with detailed elaborations for this solution. The major advantages of this solution are:

 reduced distance for shuttle train operations by 5 kms in one direction,  no need to use Bardh station for running of shuttle train, which leads to reduction of total operation time of this train,  control of shuttle train can be handled from the CTC centre in Fushë Kosovë,  there is no conflict with freight trains that operate along Bardh-Magura line, and  no further investments are necessary for adjustments of the infrastructure on the part of Bardh-Magura line.

The major disadvantages of this solution are:

 higher investment costs for the new line, especially under option of double-track connection and electrification, and  higher land acquisition area requirements (13.2 ha compared to 2.8 ha), which will lead to higher investment costs again (agricultural land).

Therefore, seeing the will of the mentioned IFIs and our Government to finance rehabilitation of the Railway Network in Kosovo, WBIF and other grants will contribute very much to the finalization of this project.

3. ELIGIBILITY This project is in line with Part III of the Indicative Strategy Paper for Kosovo (2014/2020)

The integration of Kosovo into the regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

The Indicative Country Strategy Paper (2014-2020) adopted by the EC on 20th of August 2015 states that the integration of Kosovo into regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

In addition the Indicative Country Strategy Paper emphasizes that IPA II will support only the interventions aimed at connecting Kosovo with its neighbors. Assistance will be channeled through regional interventions, in particular in the railway sector, through WBIF coordination.

In general, economically feasible and bankable projects should be funded by loans provided by IFI or other donors. The fiscal space for taking up loans is limited following the impact of the economic crisis in Coherence with valid EU policies and recent years. Grant funding for investments is therefore important but strategies at the same time inherently limited. Consequently, there is a need for a mechanism to agree on overall national and regional investment priorities between the government, the European Union, other donors, relevant regional organizations and the IFI, as well as for blending of grants and loans. This coordinating platform will be the Western Balkans Investment Framework (WBIF).

This project is in line with the Kosovo progress report (October 2014) Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritisation of projects on the routes defined in the indicative extension of the TEN- T to the Western Balkans region.

The study for connection with these countries should be done according to the multi-modal transport strategy, with priority from the Secretariat of South East Europe Transport Observatory (SEETO) and in cooperation with neighboring states. After rehabilitation of the basement of existing lines and with the electrification of lines from neighboring countries, the investment will be followed in the railway electrification. This project is relevant for the implementation of the Government programme 2015/2018 Point 1.12.1. Contribution to valid national development objectives? Namely, implementation of this project would contribute to the development of the Pristina Airport which is recognized as important for the tourism development of Kosovo. . The importance of the project is linked with the Kosovo Multi Modal Transport Strategy 2012 – 2021.

According to the Multi Modal Transport Strategy, rail infrastructure exists near the airport and should be redeveloped on the route Coherence with national Transport Sector Podujevo-Pristine-Fushe Kosovo-Peje. Strategic framework This redevelopment could be used as an opportunity to create a branch to serve the airport and to organise good connections to offer reliable services for persons leaving on the route between Fushe Kosovo and Peje or Fushe Kosovo and Podujevo, but also Frizaj, Kacanik, and Mitrovica. This short branch line could be operated implementing the

concept of a short distance shuttle train between the airport and Fushe Kosovo and Pristina.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: Implementing construction general rehabilitation of this line in the future, Kosovo will improve and develop highest level intermodal transport on a local, regional and international level. This will facilitate Improving inter-modality “door to door” transport using railway and road vehicles through the existing freight terminal in Fushe Kosove node and the airport terminal in Pristina Airport. Increasing international traffic (freight, By implementing this project Kosovo will increase passenger and freight persons) transport and at the same time will improve conditions for transport. Being included in the latest Multi-annual No, this project is not included in the SEETO MAP 2015 plan (MAP) of SEETO The line will serve as a future connection line between Pristina Airport Providing connection to TEN-T corridors – Railway Route 10 and TEN-T Corridor X. Its contribution to Improvement of safety Yes, because such a railway line will decrease car traffic and therefore conditions accidents. New, upgraded or rehabilitated By this project is foreseen the construction and modernization of the infrastructure Airport Line in the future. Meeting annual traffic demand growth The project meets the requested criteria for transport growth. The rehabilitation of this line will facilitate shorter and safer travel Time reduction for journeys between Pristina – Fushe Kosove and Pristina Airport between the markets for more than one hour. Realizing this project will lead to the predominant part of road freight Its effect on the reduction of CO and 2 transport being shifted to railways, which would have significant impact noise emissions in respect to the reduction of the CO2 and noise emission. The project would facilitate significant inter-regional economic growth Its contribution to overall economic growth and contribute to regional cohesion. This project is in connection with the investments on railway route 10 Its integration with other projects in Kosovo. Alternative options are analyzed and will be further developed in the The existence of alternatives course of project preparation.

Part Two 5. MATURITY

Available studies and documents Ready and approved Being worked on Not started yet

Conceptual idea X

Pre-feasibility study X

Conceptual design X

Feasibility study + CBA X

EIA study (if needed) X

Valid spatial planning documents X

Land property resolved X

Preliminary design X

Main design/detailed design X

Tender documentation X

Construction and other permits X

Construction contract signed X

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? X The realization of the project will have direct impact on the connectivity due to direct link between this project and the Pristina International airport. Does the project have cross-border impact X or impact on other countries in the region? Can the project in any other way be X earmarked as a regional project?

7. SPENDING SCHEDULE

2 2010- 201 0 202 202 202 202 2017 2018 2019 2020 2015 6 2 2 3 4 5 1 Costs (in EUR) of: Project preparation (TA) 3.5 M€ Investment 15 M€ 15 M€ 6.7 M€

8. OTHER ASPECTS

Have IFIs or other donors already been EBRD and EIB are consulted concerning this project and so far there consulted on the project? When? What was hasn’t been any decision concerning the project. their judgement? Existing EU or WBIF support (TA): amount, No purpose Has the Ministry of Finance already been consulted on the project? Describe The Ministry of Finance is informed concerning this project. feedback. Does the project generate revenues from This project is as a precondition for future developments and will end users? generate revenues from train operators Description of project team for INFRAKOS will establish a PIU for this project. implementation

GRID 3 TRA: Construction and modernisation of a Railway Line Pristina - Fushe Kosove – Pristina Airport “Adem Jashari”

WBIF Beneficiary: Kosovo Railways Infrastructure JSC - INFRAKOS Date: 25.08.2015

Sector: Transport

Sub-sector Railways

Line Ministry: Ministry of Infrastructure

Proposed infrastructure Construction and modernisation of a Railway Line Pristina - Fushe Kosove project: – Pristina Airport “Adem Jashari”

Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: X Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritization criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 5 Existing intermodal centers = 3 1 modality 5 No inter-modality = 1

The project increases Significant increase = 5 S2 international traffic of 5 Moderate increase = 3 1 5 persons and freights Limited increase = 1

The project is included in the Priority List = 5 S3 latest Multi-annual plan 1 Preparation list = 3 2 2 (MAP) of SEETO Not included = 1

The project provides Yes = 5 S4 1 1 connection to TEN-T corridors No = 1 1

Significant safety problems = 5 The project addresses a Safety problems of moderate nature S5 5 1 significant safety problem = 3 5 No record of safety issues = 1

New infrastructure, with high standards = 5 Technical characteristics of S6 5 Improvement of characteristics= 3 1 the infrastructure 5 Rehabilitation retaining the same characteristics= 1

Significant growth = 5 Annual traffic demand S7 5 Moderate growth = 3 1 growth 5 No growth = 1

No effects = 5 S8 Environmental effects 5 Minimal effects = 3 2 10 Serious effects = 1

Inter-regional = 5 The project contributes to S9 3 Regional = 3 2 overall economic growth 6 Country = 1

The project is part of a Finalizing an investment = 5 S10 programme, continuing an 1 Continuing running investment = 3 1 1 existing investment New project = 1

No other alternative solution = 5 The project is the main Other alternative solution, other type S11 transport solution in the 3 of transport = 3 1 3 same connection Other alternative solution, same type of transport = 1 The project provides improved transit /transport facilities, access to new Significant improvement = 5 S12 markets and jobs / education 5 Medium improvement = 3 2 10 and health services and Limited improvement = 1 stimulates mobility and new investments Well defined and confirmed by studies = 5 Total cost of the project was S13 5 Well defined but not confirmed by 1 defined 5 studies = 3 Superficially defined = 1 The management Adequate capacity = 5 implementation/ operation/ Arrangements for strengthening the S14 maintenance capacity of the 5 1 capacity in place = 3 5 proponent is adequate for Insufficient capacity = 1 this type of the project

Final score for the project: 68

PIF 4 TRA: General Rehabilitation of the Eastern Railway line (Border with Serbia – Podujevo – Fushe Kosove)

Part One

1. GENERAL INFORMATION

General Rehabilitation of the Eastern Railway line (Border Project title: with Serbia – Podujevo – Fushe Kosove) Sector Transport / Infrastructure Subsector* (see list on the last page) Railway Kosovo Railways Infrastructure JSC – INFRAKOS Lead project Beneficiary/proponent: Ministry of Finance, and Ministry of Infrastructure Project ID/number Ministry of Infrastructure / Infrastructure of Kosovo Railways JSC – Institution that is the author of the project INFRAKOS proposal

Location/Map Kosovo Total investment estimated: Preparatory activities: 6,7 Million euro  Preparatory activities (planning Construction works: 57,3 Million euro documentation, technical documentation, land acquisition Supervision of works: 3,3 Million euro etc.) 67,300,000.00 € for project design, preparatory activities,  Construction works construction works and supervision of the project, for east railway Line with length of 45 km.  Supervision Responsible or authorized person for contact: Infrastructure of Kosovo Railways JSC – INFRAKOS Agron Thaçi Name – Position: CEO of INFRAKOS [email protected] Email address - Telephone: Tel. +381 38 550 550 500

2. PROJECT DESCRIPTION

A feasibility study financed by WBIF and implemented by IPF Technical Assistance was undertaken during 2012/2013. The most beneficial option for East Railway Line upgrade in Kosovo was proved to be general rehabilitation and electrification of the line.

The next step towards implementation of this project is the preparation of the detailed design in the first phase, and general rehabilitation and modernization in the second phase of this line. Purpose of the infrastructure project The existing railway lines in Kosovo are in poor condition. The Governmental strategy is to develop railway transport, in this context especially Railway Route 10. Therefore the specific objective of this project is to rehabilitate and modernize the Eastern Railway line (which because of damages is out of function) in order to establish railway transport, increase safety and speed and fulfill the requested criteria for interoperability. Implementation of this project will contribute to increasing capacity and develop the railway market in Kosovo and

beyond. Meanwhile, developing this project, INFRAKOS and the Ministry of Infrastructure will fulfill part of their development strategies. Through developing this project INFRAKOS will achieve to realize much needed general rehabilitation and modernization of this line in order to have interoperable railway infrastructure through which safe railway transport and railway market opening for domestic, regional and international train operators will be supported. The main stakeholders affected by this project are the state railway operator of Kosovo Results of the infrastructure project (TRAINKOS), and all other train operators (local, regional and EU) who would like to use this infrastructure in the future.

A main result of this project will be the establishment of the railway traffic between Kosovo and Serbia, particularly of the shortest railway connection of Corridor X (Nis in Serbia) and Railway Route 10 (Fushe Kosove in Kosovo). The core regional transport network of South East Europe was established by the REBIS project (Regional Balkans Infrastructure Study) financed by the EU and adopted in 2003 by the governments of the region.

One of the priority objectives stated in the National Multi Modal Transport Strategy approved by Government of Kosovo in 2013 is to create links to the European transport network and - in line with this - to provide a priority railway network linking the transport gateways to the areas of potential economic growth. Railway Route 10 and the East West Railway Line (with future construction of new railway line Prizren (Kosovo) – Durres (Albania)) are defined by the Government of Kosovo as part of this priority railway network. Taking into consideration outcomes from the Feasibility Study for General Rehabilitation of the East Railway line which was financed by WBIF and completed in 2013, we believe that WBIF and International Financial Institutions (EBRD and EIB) will support this project. Knowing that the Kosovo Government has many other priorities and budget possibilities are very small, an additional request to WBIF for support with grant for implementation of General description (max 2 pages) this project is crucial.

The East Railway Line (Border with Serbia – Podujevo – Fushe Kosove) branches from Corridor X in Nis (Serbia), between Belgrade and Skopje, and forms a shorter connection between Corridor X and Railway route 10. This is a regional project connecting Kosovo and a neighboring Country (Serbia), it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. This is the second direct railway connection between Serbia, Kosovo and Macedonia.

The East Railway Line sustained significant damages during the period 1990-1999, and because of high damages the line is out of function. Therefore, in order to establish railway traffic there is a need for general rehabilitation and modernization of the line in order to achieve projected speed (80 km/h up to 120 km/h).

In order to achieve projected speed and increase safety conditions, there is an immediate need for general rehabilitation and modernization of this line.

General rehabilitation of the East Railway Line is as precondition for development of the railway sector in Kosovo, and implementation of this project will make possible:

. To increase safety and speed conditions of this line; . To have interoperable railway infrastructure as a linkage between neighboring countries and the wider region; . To have better conditions for development of the passenger and freight transport; . To increase economic growth and social development; . To facilitate trade and economic links with neighboring countries and EU member states; . To improve transport capacities; . To develop multimodal and intra-modal transport in Kosovo and beyond; . To be part of the Regional and EU Integrated Railway Network.

2Therefore, seeing the will of mentioned IFIs and our Government to finance rehabilitation of the Railway Network in Kosovo, WBIF investment grants and other grants will contribute very much to the finalization of this project.

3. ELIGIBILITY This project is in line with Part III of the Indicative Strategy Paper for Kosovo (2014/2020).

The integration of Kosovo into regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

In addition, the Indicative Country Strategy Paper emphasizes that IPA II will support only the interventions aimed at connecting Kosovo with its neighbors. Assistance will be channeled through regional interventions, Coherence with valid EU policies and in particular in the railway sector, through WBIF coordination. strategies In general, economically feasible and bankable projects should be funded by loans provided by IFI or other donors. The fiscal space for taking up loans is limited following the impact of the economic crisis in recent years. Grant funding for investments is therefore important but at the same time inherently limited. Consequently, there is a need for a mechanism to agree on overall national and regional investment priorities between the government, the European Union, other donors, relevant regional organizations and the IFI, as well as for blending of grants and loans. This coordinating platform will be the Western Balkans Investment Framework (WBIF).

This project is in line with the Kosovo progress report (October 2014).

Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of

understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritization of projects on the routes defined in the indicative extension of the TEN- T to the Western Balkans region.

This project is also in line with the joint statement WB 6 ministerial held in Pristina in March 2015.

“We recognize that improving connectivity within our region as well as with the EU is a key factor for growth and jobs in the WB.

We have broadly agreed on the core transport network for the WB. It is based on the SEETO comprehensive network and reflects TENT guidelines”.

This project is also compliant with:

- Strategy for European Integration 2014 – 2020 - Declaration of Mid-Term Priority Policies 2014-2016 - Mid-Term Expenditure Framework (MTEF) 2014-2016.

The East Railway Line (Border with Serbia – Podujevo – Fushe Kosove) is a connection line of the SEETO Comprehensive Network, which based on EU strategic documents should be integrated in the Trans European Transport Network. (TEN-T). This line is very important for future connection of Corridor X – Railway route 10 and Corridor VIII. It has an obvious strategic dimension from a regional aspect, for the development of the railway transport. This project is in line with the Government programme 2015/2018 (Point 1.10.2.).

The Government intends through development banks to finance the rehabilitation of railway Line 10, which allows cheaper transportation of people and goods. Over four years, the Government will finance the rehabilitation of the East-West line, which enables a rail link with Albania and Montenegro; respectively a connection to the sea ports on the Adriatic will be created.

This project is compliant with point 1.10.2 of the government Contribution to valid national programme. development objectives?

The project is also in line with the National Economic Reform Program (NERP) 2015. In the section dedicated to the further development of Kosovo transport infrastructure it is explicitly mentioned that in the medium and long term period focus should be on the key railway lines and the rehabilitation of the East West Railway Lines Podujevë –Fushë Kosovë – Pejë is specifically mentioned. This justifies Government commitment to implement this important railway project, which undoubtly has regional dimension and which is in line with the “connectivity” agenda of the EU.

The project is compliant with the Strategy for European Integration 2014 – 2020, since modernization of the rail infrastructure by connecting to Pan-European corridors is considered as one of the objectives of this Strategy.

The importance of the project is linked with the Kosovo Multi Modal Transport Strategy 2012 – 2021. Coherence with national Transport Sector Strategic framework The Multi Modal Transport Strategy recognizes the reopening of the railway line between the Borders with Serbia-Podujevo-Pristina as one of the priorities which will contribute to increased multi modality.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: Rehabilitation of the Eastern Railway line (Border with Serbia – Podujevo – Fushe Kosove) will improve and develop highest level intermodal transport on a local, regional and international level. This will facilitate Improving inter-modality “door to door” transport using railway and road vehicles through the existing freight terminal in Fushe Kosove node. The respective project would have a significant inter modality effect. This is the second direct railway connection between Serbia, Kosovo and Macedonia. This line will facilitate connections for passengers and freight transport between the respective countries and at the same time will Increasing international traffic (freight, improve conditions for transport. persons) Building a new railway link between Kosovo and Albania, the East West Railway Line will serve as a shorter possible connection of Corridor X and Corridor VIII. Being included in the latest Multi-annual No plan (MAP) of SEETO Providing connection to TEN-T corridors The line is connected with TEN-T Corridor X through Nis in Serbia. Rehabilitation of this line will be done in accordance with the Its contribution to Improvement of safety contemporary railway safety standards. Having in mind the current conditions condition of the respective railway line, this project would have a significant impact on the safety aspect. New, upgraded or rehabilitated By this project is foreseen the general rehabilitation and modernization infrastructure of the East Railway Line. The project meets the requested criteria for transport growth and it is Meeting annual traffic demand growth expected that implementation would lead to significant growth of traffic demand. The rehabilitation of this line will facilitate shorter and safer travel Time reduction for journeys between Pristina – Podujeva and Nis in Serbia between the markets for more than one hour. Realizing this project would lead to the predominant part of road freight Its effect on the reduction of CO and 2 transport being shifted to railways, which would have significant impact noise emissions in respect to the reduction of CO2 and noise emission. The project would facilitate significant inter-regional economic growth and contribute to regional cohesion as well as assist in the Its contribution to overall economic development of seamless connections for passengers and freight in the growth Western Balkans since its connecting Kosovo and neighboring Countries. This project is directly integrated with the rehabilitation of route 10 in Kosovo, which is recognized as an important regional project, with the Its integration with other projects strong “connectivity” aspect. In addition, this project is in line with the projects related to railway infrastructure which is planned in Serbia. In terms of alignment, there was no need for alternative analyses having in mind that the project is related to rehabilitation of the The existence of alternatives existing line. However, alternative options were explored when it comes to telecommunication, signaling and electrification options.

Part Two 5. MATURITY

Ready and Being Not Available studies and documents approved worked on started yet Conceptual idea X

Pre-feasibility study X

Conceptual design X

Feasibility study + CBA X

EIA study (if needed) X

Valid spatial planning documents X

Land property resolved X

Preliminary design X

Main design/detailed design X

Tender documentation X

Construction and other permits X

Construction contract signed X

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? X The realization of the project will have direct impact on the improvement of the railway connection within Kosovo, with regional countries and Integrated EU Network Does the project have cross-border impact or Yes, this railway line has cross-border impact impact on other countries in the region? X with Serbia and also will have impact to other neighbouring countries. Can the project in any other way be earmarked as a X Taking into consideration the SEETO regional project? Comprehensive Railway Network and linkage to TEN-T, this project can be considered as regional project too.

7. SPENDING SCHEDULE

2010- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 Costs (in EUR) of: Project preparation 1,3 5,4

(TA) ME ME 15,6 15 15 15 Investment ME ME ME ME

8. OTHER ASPECTS

Have IFIs or other donors already been Yes, EBRD and EIB are consulted concerning this project, and till now consulted on the project? When? What was there isn’t any decision concerning the project. their judgement? Existing EU or WBIF support (TA): amount, No purpose

Has the Ministry of Finance already been consulted on the project? Describe Yes. Ministry of Finance is informed concerning this project. feedback. Does the project generate revenues from This project is as a precondition for future developments and will end users? generate revenues from train operators Description of project team for INFRAKOS will establish a PIU for this project. implementation

GRID 4 TRA: General Rehabilitation of the Eastern Railway line (Border with Serbia – Podujevo – Fushe Kosove)

WBIF Beneficiary: Kosovo Railways Infrastructure JSC - INFRAKOS Date: 25.08.2015

Sector: Transport

Sub-sector Railways

Line Ministry: Ministry of Infrastructure

Proposed infrastructure General Rehabilitation of the Eastern Railway line (Border with Serbia – project: Podujevo – Fushe Kosove)

Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: X Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritization criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 3 Existing intermodal centers = 3 1 modality 3 No inter-modality = 1

The project increases Significant increase = 5 S2 international traffic of 5 Moderate increase = 3 1 5 persons and freights Limited increase = 1

The project is included in the Priority List = 5 S3 latest Multi-annual plan 1 Preparation list = 3 2 2 (MAP) of SEETO Not included = 1

The project provides Yes = 5 S4 5 1 connection to TEN-T corridors No = 1 5

Significant safety problems = 5 The project addresses a Safety problems of moderate nature S5 5 1 significant safety problem = 3 5 No record of safety issues = 1

New infrastructure, with high standards = 5 Technical characteristics of S6 5 Improvement of characteristics= 3 1 the infrastructure 5 Rehabilitation retaining the same characteristics= 1

Significant growth = 5 Annual traffic demand S7 5 Moderate growth = 3 1 growth 5 No growth = 1

No effects = 5 S8 Environmental effects 5 Minimal effects = 3 2 10 Serious effects = 1

Inter-regional = 5 The project contributes to S9 3 Regional = 3 2 overall economic growth 6 Country = 1

The project is part of a Finalizing an investment = 5 S10 programme, continuing an 1 Continuing running investment = 3 1 1 existing investment New project = 1

No other alternative solution = 5 The project is the main Other alternative solution, other type S11 transport solution in the 3 of transport = 3 1 3 same connection Other alternative solution, same type of transport = 1 The project provides improved transit /transport facilities, access to new Significant improvement = 5 S12 markets and jobs / education 3 Medium improvement = 3 2 6 and health services and Limited improvement = 1 stimulates mobility and new investments Well defined and confirmed by studies = 5 Total cost of the project was S13 5 Well defined but not confirmed by 1 defined 5 studies = 3 Superficially defined = 1 The management Adequate capacity = 5 implementation/ operation/ Arrangements for strengthening the S14 maintenance capacity of the 5 1 capacity in place = 3 5 proponent is adequate for Insufficient capacity = 1 this type of the project

Final score for the project: 66

PIF 5 TRA: Construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) section from Kijevë -Klina to Zahaq (30 Km)

Part One

1. GENERAL INFORMATION

Construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) Project title: section from Kijevë -Klina to Zahaq (30 Km) Sector Transport/Infrastructure Subsector* (see list on the last page) Road Ministry of Finance Lead project Beneficiary/proponent: Ministry of Infrastructure Project ID/number Ministry of Infrastructure Institution that is the author of the project proposal

Location/Map

Total investment estimated:  Preparatory activities (planning preparatory activities : 6 ME documentation, technical construction works: 52,8 ME documentation, land acquisition supervision of the project : 2 ME etc.)  Construction works The International Supervision will be nominated  Supervision Responsible or authorized person for Ministry of Infrastructure contact: Rame Qupeva Name – Position: Director of Infrastructure Department

[email protected]; 038 211 494 Email address - Telephone:

2. PROJECT DESCRIPTION

Purpose of the infrastructure project

Route 6a connects Corridor VIII with Route 7 and Route 4 and has a vital role in the transport development of Kosovo. The route connects the Pristina region, the central part of Kosovo, with Skopje. The purpose of the project is to reduce journey times and delays, and improve road surface conditions which will result in vehicle operating cost savings, accident cost savings and travel time cost savings.

The realization of the project will have direct impact on the improvement of the road connection within Kosovo, Prishtina International Airport and Montenegro and will contribute to the integration of Kosovo into the transport system of the Region and the entire Europe.

This Project will also influence the following:  reduction of travel times,  reduction of the road infrastructure maintenance costs,  better connection in Western Balkan Region,  cost efficiency regarding environmental protection, accidents and urban area near the existing road in comparison to competitive Results of the infrastructure project roads,  fostering development of WB through improved connections

The current and urgent need in order to move towards improvement the new road is the Update of the Feasibility Study, ESIA as well update of the Detail Design for the Route 6A in Kosovo, from Prishtina up to Peja (road section length from Pejë – Klinë –Kijevë is 30 km) in order to connect the section with the existing highway Prishtina – Albanian border (Vermice).

The result of the updating of the feasibility study will be to establish spatial, environmental, social, financial and economic justification for

the investment in the construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) section from Kijevë -Klina to Zahaq (30 Km). On that basis the decision on investment will be made and procedure for issuing the construction approval will be initiated. The technical design documents will also define the purpose, position, alignment, cross section, capacity as well as technical, technological and functional characteristics of Route 6 A.

Three routes of this network pass through Kosovo, namely:

• Route 6 connecting Corridor VIII in the former Yugoslav Republic of Macedonia (Skopje) via Prishtina to route 4 in the Eastern part of Montenegro.

 Route 6A connecting Prishtina International Airport, with Route 7 and continuing to Peja and Route 4 in Montenegro.

• Route 7 connecting Corridor X in Serbia (Nis) via Prishtina to the Adriatic/Ionian coast in Albania.

One of the prime objectives stated in the National Multi Modal Transport Strategy approved by Government of Kosovo in 2013 is to create links to the European transport network and - in line with this - to provide a priority road network linking the transport gateways to the areas of potential economic growth. Routes 6, 6A and 7 are defined by the Government of Kosovo as part of this priority road network.

The total length of Route 6a is 259 km with a variety of road alignments General description (max 2 pages) and conditions. The roads are primarily two-lane roads, with the exception of a 47 km long section with motorway profile in the vicinity of Pristina.

Route 6 connects Ribarevina (Montenegro) to Skopje (FYROM) through Zubin Potok, Mitrovica, Pristina, Ferizaj and Hani i Elezit (Kosovo).At Ribarevina Route 6 connects to Route 4 connecting the port of Bar (Montenegro) to Belgrade (Serbia) and Vatin (Romanian border).

Proposed section is part of Main National RoadR6A, linking Prishtina to Pejë and further to Montenegro. The Project presents the extension of Pan-European Corridors X / branch Xc/ and VIII. It has an obvious strategic dimension from a regional aspect, which is actually the reason for being confirmed as one section of Route 6A in the comprehensive transport network defined by SEETO.

The Route 7 has been completed from the Border with Albania up to Prishtina and the Route 6, section from Prishtinë – Broder with Macedonia is on the contracting phase, works are expected to start in the second quarter of 2014.The remaining section of Route 6A from Peja-Klina-Kijevë is the last segment of the route which the Government intends to complete in the medium term.

The proposed section for funding is the remaining middle section of the link between Prishtina and Peja, which starts at Km 5 from Peja towards

Klina linking Kijevë where the road is widened from direct financing from the Government. The proposed section carries currently daily traffic between 9900 veh/day and 12200 veh/day depending on the sub-section as based on traffic counts.

The National Transport Model predicts a very high traffic growth (under stable network), to reach 14500 veh/day in 2015 and 18600 veh/day in 2025 on the section Pejë – Klina–Kijevë (30 Km).

The section is part of SEETO Route 6A, and therefore in the high priorities regarding network development in Kosovo. Furthermore it links the third largest city of Kosovo to the Capital. This will give access to Kosovo to the main corridors in the Western Balkans. Montenegro has contacted the first 41 km of the Bar-Boljare highway with the aim to connect Andrievica with the Kosovo Border, so the construction of this project will present continuation of the works which are taking place in Montenegro. In this respect interconnectivity aspect of the investment in road connection between Prishtina up to Peja further towards Montenegro is obvious.

In addition to the regional importance of this road, this section is linking two main cities in the country, Prishtina and Peja, and serves many commuters for daily access to work. The section is congested large parts of the days, with important queues at peak times. Without widening, the section will be under capacity after 2018. By construction of the respective road connection, it is expected that economic potential of this region will be strongly explored and boost economic growth of that part of Kosovo.

Objectives of the project:

. To contribute to economic growth and social development . To facilitate trade and economic links with its neighbouring countries and EU member states . To facilitate trade and travel between main cities in Kosovo . To improve safety on the road . Sustain the investment in the Transport Sector . To improve the road and travel conditions in accordance to the EU and SEETO priorities; . To provide safe and reliable trips and Road Capacity improved.  Reduction of travel times,  reduction of the road infrastructure maintenance costs

In 2006 the preparation of a comprehensive feasibility study and environmental assessment of the two routes was commissioned by the Ministry of Transport and Communications in Kosovo (MTC). The study was undertaken by a consortium led by COWI A/S (Denmark).

The feasibility study of 2006 had proposed improvement of the connection from Prishtinë - Pejë. Existing Feasibility Study recommendations are incorporated within SEETO Network, but they were not yet implemented through construction of the road because of the insufficient funds and lack of access to IFIs. In order to continue with the construction of the road and to have access to IFI funds the existing Feasibility Study and Detail Design should be updated.

3. ELIGIBILITY This project is in line with the Part 2, Chapter 2.1of the Indicative Multi Country Strategy Paper (2014/2020): Investing in improved transport and energy interconnections within the region and with the EU, to promote sustainable economic growth, jobs, trade and cultural exchange.

This project is in line with the Part 3 of the Indicative Multi Country Strategy Paper (2014/2020): Regional investment support should be directed towards projects having a clear regional dimension which contribute to the socio- economic development of more than one IPA II beneficiary and address Coherence with valid EU policies and in particular investment needs related to the development of the strategies competitiveness of businesses, the connectivity between the IPA II beneficiaries and the EU Member States, protection of the environment and mitigation of and adaptation to climate change.

This project is in line with the Kosovo progress report (October 2014): Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritisation of projects on the routes defined in the indicative extension of the TEN-T to the Western Balkans region. This project is in line with the Government programme Point 1.10.1.: There was a high scale of investment in infrastructure, particularly in the construction of European corridors. The government will continue implementing the existing contracts for the construction of the highway Prishtina-Hani i Elezit - R6, which will be completed in the medium term. This highway and Highway R7 will cover approximately two-thirds of European routes which will enable better approach of foreign investors in Kosovo and better connection of Kosovo cities. With the completion of the highway Prishtina-Hani i Elezit, Kosovo meets the requirements for the construction of European corridors defined by South East Europe Contribution to valid national development Transport Observatory (SEETO) and will enable Kosovo to have a central objectives? role in the Balkans.

This project is in line with the National Economic Reform Progrmme (NERP) 2015:

One of the Government policy commitments related to infrastructure is extension of the road from Pristina to Peja.

This is a regional project connecting Kosovo and neighbouring countries, it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. This is the main direct road connection between Montenegro and Kosovo. The importance of the project is stated in: Coherence with national Transport Sector Strategic framework  Multi Modal Transport Strategy 2012 – 2021

Within the transport strategy objective which is related to the Kosovo integration in the Pan European Corridors it is defined that priority sections on the Route 6 should be upgraded.

 Action Plan 2013-2016 approved by Kosovo Government.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: Construction of the road section between Pristina and Peja would contribute to the economic development of that area, which normally is Improving inter-modality the trigger for better inter-modality. Concretely, construction of this part of the road network will ensure connection with the railway station in Peja. This is the main direct road connection between Montenegro and Kosovo. This road will facilitate connections for passengers and freight Increasing international traffic (freight, to the Bari Port and Podgorica Airport in Montenegro and it links to the persons) Route 1 on the Adriatic coast, so it is expected that traffic of people and goods will be significantly increased. Being included in the latest Multi-annual It is included in the latest the latest Multi-annual plan (MAP) of SEETO, plan (MAP) of SEETO http://www.seetoint.org/library/multi-annual-plans/ The Project is located on the extension of Pan-European Corridors X / Providing connection to TEN-T corridors branch X c/ and VIII, so it directly contributes to the connection between TEN-T corridors Presently, the traffic congestion between Pristina and Peja is Its contribution to Improvement of safety significant. By construction of this section safety conditions will be conditions substantially improved. New, upgraded or rehabilitated This section will be consisted of new alignment between Klina-Kijevë infrastructure and upgrade/widening of segment between Peja and Klina. The proposed section carries currently daily traffic between 9900 Meeting annual traffic demand growth veh/day and 12200 veh/day and annual traffic growth is 4% at the moment. The construction of this section will significantly reduce journey times, Time reduction for journeys especially having in mind that the traffic congestions are characterizing this road connection between Pristina and Peja. Its effect on the reduction of CO and 2 Yes, based on the previous/preliminary EISA done in 2006 by COWI. noise emissions The project would create significant economic growth potential, Its contribution to overall economic growth according to the SEETO website, EIRR for the route 6a is 12%, which is considered significant in the Western Balkans. This project presents continuation of the road infrastructure projects in Its integration with other projects Kosovo, but also in the Montenegro and FYROM. The existence of alternatives Yes

Part Two 5. MATURITY

Ready and Being Not Available studies and documents approved worked on started yet Conceptual idea x

Pre-feasibility study x

Conceptual design x

Feasibility study + CBA x

EIA study (if needed) x

Valid spatial planning documents x

Land property resolved x

Preliminary design x

Main design/detailed design x

Tender documentation x

Construction and other permits x

Construction contract signed x

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? x The realization of the project will have direct impact on the improvement of the road connection within Kosovo, Prishtina International Airport and Montenegro and will contribute to the integration of Kosovo into the transport system of the Region and the entire Europe Does the project have cross-border impact or This is the main direct road connection between impact on other countries in the region? x Montenegro and Kosovo. Can the project in any other way be earmarked as a x The Project is located on the extension of Pan- regional project? European Corridors X / branch Xc/ and VIII. It has an obvious strategic dimension from a regional aspect, which is actually the reason for being confirmed as one section of Route 6A in the comprehensive transport network defined by SEETO

7. SPENDING SCHEDULE

2010- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 Costs (in EUR) of: Project preparation 3 ME 3 ME (TA) 18 18 18,8 Investment ME ME ME

8. OTHER ASPECTS

Have IFIs or other donors already been EIB and EBRD are working closely with the Government to prepare consulted on the project? When? What was the needed studies and start the implementation. their judgement? Existing EU or WBIF support (TA): amount, Ongoing purpose Has the Ministry of Finance already been Yes consulted on the project? Describe feedback. Does the project generate revenues from end No users? Description of project team for The PIU should be established. implementation

GRID 5 TRA: Construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) section from Kijevë -Klina to Zahaq (30 Km)

WBIF Beneficiary: Date: 25/08/2015

Sector: TRANSPORT

Sub-sector Road

Line Ministry: Ministry of Infrastructure

Proposed infrastructure Construction of the road N9 Prishtinë - Pejë (SEETO Route 6 A) project: section from Kijevë -Klina to Zahaq (30 km)

Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: YES Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritization criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 modality 3 Existing intermodal centers = 3 1 3 No inter-modality = 1

Significant increase = 5 The project increases S2 international traffic of persons 3 Moderate increase = 3 1 3 and freights Limited increase = 1

The project is included in the Priority List = 5 S3 latest Multi-annual plan (MAP) of 5 Preparation list = 3 2 10 SEETO Not included = 1

The project provides connection Yes = 5 S4 1 1 1 to TEN-T corridors No = 1

Significant safety problems = 5 The project addresses a S5 5 Safety problems of moderate nature = 3 1 5 significant safety problem No record of safety issues = 1

New infrastructure, with high standards = 5 Technical characteristics of the S6 3 Improvement of characteristics= 3 1 3 infrastructure Rehabilitation retaining the same characteristics= 1

Finalising an investment = 5 The project is part of a S10 programme, continuing an 3 Continuing running investment = 3 1 3 existing investment New project = 1

The project provides improved transit /transport facilities, Significant improvement = 5 access to new markets and jobs / S12 5 Medium improvement = 3 2 10 education and health services and stimulates mobility and new Limited improvement = 1 investments

Well defined and confirmed by studies = 5 Total cost of the project was S13 3 Well defined but not confirmed by studies 1 3 defined = 3 Superficially defined = 1

Final score for the project: 66

PIF 6 TRA: Construction of the new railway line Prizren (Kosovo) – Border with Albania – Durres (Albania)

Part One

1. GENERAL INFORMATION

Construction of the new railway line Prizren (Kosovo) – Border Project title: with Albania – Durres (Albania) Sector Transport / Infrastructure Subsector* (see list on the last page) Railway Kosovo Railways Infrastructure JSC – INFRAKOS Lead project Beneficiary/proponent: Ministry of Finance, and Ministry of Infrastructure Project ID/number Ministry of Infrastructure / Infrastructure of Kosovo Railways JSC – Institution that is the author of the project INFRAKOS proposal

Location/Map Kosovo – and Albania Total investment estimated: Preparatory activities: 3.5 M€ for feasibility study, of the Line with  Preparatory activities (planning length of approximately 20 km documentation, technical Construction works: 35 M€ documentation, land acquisition Supervision of works: 1.7 M€ etc.) Total 40,200,000.00  Construction works

 Supervision Responsible or authorized person for Infrastructure of Kosovo Railways JSC – INFRAKOS contact: Agron Thaçi Name – Position: CEO of INFRAKOS [email protected] Email address - Telephone: Tel. +381 38 550 550 500

2. PROJECT DESCRIPTION

The specific objective of this project is to create a new railway line between Kosovo and the port of Durres in Albania, in order to increase safety and speed and fulfill the requested criteria for interoperability. Implementation of this project will contribute to increase capacity and will develop the railway market in Kosovo and enhance regional cooperation.

Purpose of the infrastructure project This project will give access to the sea and will support exportations and economic development of the country.

Meanwhile, developing this project, INFRAKOS and the Ministry of Infrastructure will fulfill part of their development strategies.

This project will increase connectivity, which is one of the mile stones of the EU transport policy.

By developing this project INFRAKOS will achieve to realize the construction of this new line in order to link two cities of two neighboring countries and to have interoperable railway infrastructure through which safe railway transport and railway market opening for domestic, regional and international train operators will be supported.

Results of the infrastructure project The main stakeholders affected by this project are the state railway operator of Kosovo (TRAINKOS), Albanian railways and all other train operators (local, regional and EU) who would like to use this infrastructure in the future.

This project will support the economic development of these two countries and even development of other WB countries. This project is of high importance for the future socio economic development of the region, especially for Kosovo, Albania, Serbia and the wider region through the connection of Sea Port Durres in Albania (Railway Corridor VIII) with Railway Station Prizren in Kosovo. The Kosovo Railways Network enables the connection with Corridor X in Serbia and Macedonia.

In particular, this is a very important project for the future development of Kosovo Railways. It contributes to development of seamless connections for passengers and freight in the future. Except connection of Kosovo Railways Network with Sea Port Durres in Albania, this will be an important project for the economic development of Kosovo, Albania, Serbia and the wider region. Through implementing this project Kosovo, Albania and Serbia will benefit significantly in achievement of the following objectives:

 To have an interoperable railway network  To have good connection with Sea Port Durres  To open, develop and integrate the railway market  To increase transport capacities for passengers and freight  To increase traffic safety  To establish a save road infrastructure  To protect the environment from pollution General description (max 2 pages)  To develop multi modal transport

Construction of this line will facilitate a possible shorter connection of Railway Corridor X and Railway Corridor VIII.

Construction of this line will develop railway transport between Kosovo, Albania, Serbia, Macedonia and the wider region, especially freight transport, this way developing multi modal transport through Sea Port Durres and other land terminals in several countries.

Finally we can conclude that by investing in the feasibility study, in project design and ultimately in the construction of this line, we invest in the future economic, social, cultural and environmental development and also in the overall prosperity of all regional countries mentioned above. Investing in this line means investing in free movement of people and goods, in better a relationship between regional countries and, most importantly, the construction of this line will immediately bolster theS economic development of businesses in all mentioned countries.

Therefore, seeing the will of mentioned IFIs and our Government to finance rehabilitation of the Railway Network in Kosovo, WBIF and other grants will contribute very much to the finalization of this project

3. ELIGIBILITY This project is in line with Part III of the Indicative Strategy Paper for Kosovo (2014/2020).

The integration of Kosovo into regional (rail) transport networks will be Coherence with valid EU policies and facilitated via the Western Balkans Investment Framework WBIF and strategies relevant regional programmes.

The Indicative Country Strategy Paper (2014-2020) adopted by the EC on 20th of August 2015 states that the integration of Kosovo into the

regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

This project is in line with the Kosovo progress report (October 2014) Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritization of projects on the routes defined in the indicative extension of the TEN- T to the Western Balkans region.

The study for connection with these countries should be done according to the multi-modal transport strategy, with priority from the Secretariat of South East Europe

The project is in line with the Transport Observatory (SEETO) and in cooperation with neighboring states. After rehabilitation of the basement of existing lines and with the electrification of lines from neighboring countries, the investment will be followed in the railway electrification.

This project is also in line with the joint statement WB 6 ministerial held in Pristina in March 2015. “We recognize that improving connectivity within our region as well as with the EU is a key factor for growth and jobs in the WB. We have broadly agreed on the core transport network for the WB. It is based on the SEETO comprehensive network and reflects TENT guidelines”. This project is in line with the Government programme 2015/2018 (Pilar 1- Economic development, employment and welfare).

The construction of the new railway line Prizren (Kosovo) – Durres (Albania) is not mentioned explicitly in the Government programme. However, the Government programme refers to the promotion of investment which will reduce cost of business by building adequate infrastructure, including railway infrastructure. The construction of this Contribution to valid national development railway line is considered very important regarding business objectives? development and market economy principles. While the Government programme is covering the period 2015-2018, during which the construction of this line would not take place yet, preparatory activities should start nevertheless.

The project contributes to the National Economic Reform Program (NERP) 2015.

In the section dedicated to the further development of Kosovo’s transport infrastructure it is explicitly mentioned that in the medium and long term period focus should be on the key railway lines. In that context, the construction for the new railway line Prizren in Kosovo – Durres in Albania is mentioned as one of the key projects for development of the railway infrastructure in Kosovo.

The project further contributes to the Strategy for European Integration 2014 – 2020. Modernization of the rail infrastructure by connecting to Pan-European corridors is considered as one of the objectives of the Strategy for European Integration. The importance of the project is linked with the Kosovo Multi Modal Transport Strategy 2012 – 2021.

The Multi Modal Transport Strategy of Kosovo does not recognize the Coherence with national Transport Sector construction of the new railway line Prizren (Kosovo) – Durres (Albania) Strategic framework explicitly as a priority project for the period the strategy refers to. However, the strategy identifies as a weakness that Kosovo is not connected by railways with the Durres port in Albania. Without any doubt, the railway connection between Prizren and Durres would contribute substantially to the economic development of the region.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: Construction of the railway line between Prizren and the Border of Albania (Future connection with Durres in Albania) will improve and develop highest level intermodal transport on a local, regional and Improving inter-modality international level. The Multi modal Transport Strategy of Kosovo recognized the importance of Durres port and therefore considers the construction of the railway network between Kosovo and Durres as one of the key triggers for intermodal transport development. By implementing this project Kosovo and Albania will have needed Increasing international traffic (freight, documents for future construction in order to increase passengers and persons) freight transport capacity and it will ultimately improve conditions for transport. Being included in the latest Multi-annual No, this project is not explicitly mentioned on the SEETO map. plan (MAP) of SEETO The line will serve as a connection line in the future between Sea Port Providing connection to TEN-T corridors Durresi (Corridor VIII) – Railway Route 10 and TEN-T Corridor X. The construction of this line would contribute to the improvement of Its contribution to Improvement of safety safety conditions, seeing as railway transport is considered a conditions particularly safe transport mode, since all EU safety standards will be applied. New, upgraded or rehabilitated By this project is foreseen the construction of the line and the infrastructure connection with Corridor X. Meeting annual traffic demand growth The project meets the requested criteria for transport growth Rehabilitation of this line will facilitate shorter and safer travel between Time reduction for journeys Pristina – Prizren and Durres in Albania between the markets for more than two hour. Realizing this project will lead to the predominant part of road freight Its effect on the reduction of CO and 2 transport being shifted to railways, which would have significant impact noise emissions in respect to the reduction of CO2 and noise emission. The project would facilitate significant inter-regional economic growth since it’s connecting Kosovo and a neighboring country (Albania), Its contribution to overall economic growth contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans.

This project is in connection with the investments on railway route 10 Its integration with other projects in Kosovo as well as with investments in railway infrastructure in Albania. Alternative options will be analyzed in the course of preparation of The existence of alternatives technical documentation for the construction of the new railway connection.

Part Two 5. MATURITY

Ready and Being Not Available studies and documents approved worked on started yet Conceptual idea X

Pre-feasibility study X

Conceptual design X

Feasibility study + CBA X

EIA study (if needed) X

Valid spatial planning documents X

Land property resolved X

Preliminary design X

Main design/detailed design X

Tender documentation X

Construction and other permits X

Construction contract signed X

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? The realization of the project will have direct impact on the improvement of the railway X connection within Kosovo and beyond, and at the same time will establish new a connection with Albania and with the EU integrated network. Does the project have cross-border impact or impact on other countries in the region? X This railway line has cross-border impact with

Albania and will also have impact on other neighboring countries. Can the project in any other way be earmarked as a Taking into consideration the regional regional project? development, the link with the port of Durres X and the access to the sea, this project can be considered as a regional project too.

7. SPENDING SCHEDULE

2010- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 Costs (in EUR) of:

Project preparation 3.5

(TA) M€ 15 15 6.7 Investment M€ M€ M€

8. OTHER ASPECTS

Have IFIs or other donors already been EBRD, EIB and other IFIs are consulted concerning this project and so consulted on the project? When? What was far there hasn’t been any decision concerning the project. their judgement? Existing EU or WBIF support (TA): amount, No purpose Has the Ministry of Finance already been The Ministry of Finance is informed concerning this project. consulted on the project? Describe feedback. Does the project generate revenues from end This project is a precondition for future developments and will users? generate revenues from train operators. Description of project team for INFRAKOS will establish a PIU for this project. implementation

GRID 6 TRA: Construction of the new railway line Prizren (Kosovo) – Border with Albania – Durres (Albania)

WBIF Beneficiary: Kosovo Railways Infrastructure JSC - INFRAKOS Date: 25.08.2015

Sector: Transport

Sub-sector Railways

Line Ministry: Ministry of Infrastructure

Proposed infrastructure Construction of the new railway line Prizren (Kosovo) – Border with Albania project: – Durres (Albania)

Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: X Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritization criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 5 Existing intermodal centers = 3 1 modality 5 No inter-modality = 1

The project increases Significant increase = 5 S2 international traffic of 5 Moderate increase = 3 1 5 persons and freights Limited increase = 1

The project is included in the Priority List = 5 S3 latest Multi-annual plan 1 Preparation list = 3 2 2 (MAP) of SEETO Not included = 1

The project provides Yes = 5 S4 5 1 connection to TEN-T corridors No = 1 5

Significant safety problems = 5 The project addresses a Safety problems of moderate nature S5 3 1 significant safety problem = 3 3 No record of safety issues = 1

New infrastructure, with high standards = 5 Technical characteristics of S6 5 Improvement of characteristics= 3 1 the infrastructure 5 Rehabilitation retaining the same characteristics= 1

Significant growth = 5 Annual traffic demand S7 5 Moderate growth = 3 1 growth 5 No growth = 1

No effects = 5 S8 Environmental effects 5 Minimal effects = 3 2 10 Serious effects = 1

Inter-regional = 5 The project contributes to S9 3 Regional = 3 2 overall economic growth 6 Country = 1

The project is part of a Finalizing an investment = 5 S10 programme, continuing an 1 Continuing running investment = 3 1 1 existing investment New project = 1

No other alternative solution = 5 The project is the main Other alternative solution, other type S11 transport solution in the 3 of transport = 3 1 3 same connection Other alternative solution, same type of transport = 1 The project provides improved transit /transport facilities, access to new Significant improvement = 5 S12 markets and jobs / education 5 Medium improvement = 3 2 10 and health services and Limited improvement = 1 stimulates mobility and new investments Well defined and confirmed by studies = 5 Total cost of the project was S13 1 Well defined but not confirmed by 1 defined 1 studies = 3 Superficially defined = 1 The management Adequate capacity = 5 implementation/ operation/ Arrangements for strengthening the S14 maintenance capacity of the 5 1 capacity in place = 3 5 proponent is adequate for Insufficient capacity = 1 this type of the project

Final score for the project: 66

PIF 7 TRA: General Rehabilitation of the Western Railway Line (Fushe Kosove – Klina – Peja)

Part One

1. GENERAL INFORMATION

General Rehabilitation of the Western Railway Line (Fushe Project title: Kosove – Klina – Peja) Sector Transport / Infrastructure Subsector* (see list on the last page) Railway Kosovo Railways Infrastructure JSC – INFRAKOS Lead project Beneficiary/proponent: Ministry of Finance, and Ministry of Infrastructure Project ID/number Institution that is the author of the project Ministry of Infrastructure / Infrastructure of Kosovo Railways JSC – proposal INFRAKOS Location/Map Kosovo Total investment estimated: Preparatory activities: 12,5 Million euro  Preparatory activities (planning Construction works: 106,8 Million euro documentation, technical Supervision of works: 6,5 Million euro documentation, land acquisition etc.) 125,800,000.00 € for project design, preparatory activities,  Construction works construction works and supervision of the project, for west railway Line with length of 82 km.  Supervision Responsible or authorized person for Infrastructure of Kosovo Railways JSC – INFRAKOS contact: Agron Thaçi Name – Position: CEO of INFRAKOS [email protected] Email address - Telephone: Tel. +381 38 550 550 500

2. PROJECT DESCRIPTION

A feasibility study financed by WBIF and implemented by IPF Technical Assistance was undertaken during 2012/2013. The most beneficial option for West Railway Line upgrade in Kosovo was proved to be general rehabilitation and electrification of the line.

The next step towards implementation of this project is the preparation of the detailed design in the first phase, and general rehabilitation and modernization in the second phase of this line.

Purpose of the infrastructure project The existing railway lines in Kosovo are in poor condition. The Governmental strategy is to develop railway transport, in this context especially Railway Route 10. Therefore the specific objective of this project is to rehabilitate and modernize the Western Railway Line in order to increase safety and speed and fulfill the requested criteria for interoperability. Implementation of this project will contribute to increasing capacity and develop the railway market in Kosovo and beyond. Meanwhile, developing this project, INFRAKOS and the Ministry of Infrastructure will fulfill part of their development strategies.

Through developing this project INFRAKOS will achieve to realize much needed general rehabilitation and modernization of this line in order to have interoperable railway infrastructure through which safe railway transport and railway market opening for domestic, regional and international train operators will be supported. The main stakeholders affected by this project are the state railway operator of Kosovo Results of the infrastructure project (TRAINKOS), and all other train operators (local, regional and EU) who would like to use this infrastructure in the future.

As a main result of this project will be establishment of the railway traffic between Central Railway Node in Fushe Kosove and western part of Kosovo. The core regional transport network of South East Europe was established by the REBIS project (Regional Balkans Infrastructure Study) financed by the EU and adopted in 2003 by the governments of the region.

The West Railway Line (Fushe Kosove – Klina – Peja) is very important for the future connection of Corridor X – Railway route 10 and Corridor VIII. This line will connect Railway Route 10 and the Montenegro Railway Network in the future. It has an obvious strategic dimension from a regional perspective regarding the development of the railway transport.

This project is connecting Kosovo and a neighboring Country (Montenegro) and it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. Except connection for Western Kosovo, this will be as shortest direct railway connection of Sea Port Bari in Montenegro General description (max 2 pages) with the Core railway network of the Western Balkans.

Taking into consideration outcomes from the Feasibility Study for General Rehabilitation of the West Railway line which was financed by WBIF and completed in 2013, we believe that WBIF and International Financial Institutions (EBRD, EIB and other IFIs) will support this project. Knowing that the Kosovo Government has many other priorities and budget possibilities are very small, an additional request to WBIF for support with grant for implementation of this project is crucial.

The West Railway Line sustained significant damages during the period 1990-1999, and even though there were considerable repairs, the line is in poor condition and needs general rehabilitation. So, in order to fulfill projected conditions of the line there is a need for general rehabilitation and modernization in order to achieve projected speed (80 km/h up to 120 km/h).

In order to achieve projected speed and increase safety conditions, there is an immediate need for general rehabilitation and modernization of this line.

General rehabilitation of the West Railway Line is as precondition for development of the railway sector in Kosovo, and implementation of this project will make possible:

. To increase safety and speed conditions of this line;

. To have interoperable railway infrastructure as a linkage between neighbouring countries and the wider region; . To have better conditions for development of the passenger and freight transport; . To increase economic growth and social development; . To facilitate trade and economic links with neighboring countries and EU member states; . To improve transport capacities; . To develop multimodal and intra-modal transport in Kosovo and beyond; . To be part of the Regional and EU Integrated Railway Network

3. ELIGIBILITY This project is in line with the Part III of the Indicative Strategy Paper for Kosovo (2014/2020)

The integration of Kosovo into regional (rail) transport networks will be facilitated via the Western Balkans Investment Framework WBIF and relevant regional programmes.

In general, economically feasible and bankable projects should be funded by loans provided by IFI or other donors. The fiscal space for taking up loans is limited following the impact of the economic crisis in recent years. Grant funding for investments is therefore important but at the same time inherently limited. Consequently, there is a need for a mechanism to agree on overall national and regional investment Coherence with valid EU policies and priorities between the government, the European Union, other donors, strategies relevant regional organizations and the IFI, as well as for blending of grants and loans. This coordinating platform will be the Western Balkans Investment Framework (WBIF).

This project is in line with the Kosovo progress report (October 2014). Regarding trans-European transport networks, Kosovo has continued to participate actively in implementing the 2004 memorandum of understanding on the development of the South-East Europe Core Regional Transport Network and in the South-East Europe Transport Observatory. Kosovo should focus on the development and prioritisation of projects on the routes defined in the indicative extension of the TEN- T to the Western Balkans region.

The study for connection with these countries should be done according to the multi-modal transport strategy, with priority from the Secretariat of South East Europe

This project is also in line with the joint statement WB 6 ministerial held in Pristina in March 2015.

“We recognize that improving connectivity within our region as well as with the EU is a key factor for growth and jobs in the WB.”

We have broadly agreed on the core transport network for the WB. It is based on the SEETO comprehensive network and reflects TENT guidelines”. This project is in line with the Government programme 2015/2018 (Point 1.10.2).

The Government intends through development banks to finance the Contribution to valid national development rehabilitation of the railway Line 10, which allows cheaper objectives? transportation of people and goods. Over four years, the Government will finance the rehabilitation of the East-West line, which enables a rail link with Albania and Montenegro; respectively a connection to the sea ports on the Adriatic will be created.

This project is compliant with the point 1.10.2 of the government programme.

It is also in line with the National Economic Reform Program (NERP) 2015 In the section dedicated to the further development of Kosovo transport infrastructure it is explicitly mentioned that in the medium and long term period focus should be on the key railway lines. In that context, the rehabilitation of the western line Fushe Kosova – Peja is mentioned.

This project is compliant with the Strategy for European Integration 2014 – 2020, since modernization of the rail infrastructure by connecting to Pan-European corridors is considered as one of the objectives of this Strategy.

The importance of the project is linked with the Kosovo Multi Modal Transport Strategy 2012 – 2021 Coherence with national Transport Sector The Multi Modal Transport Strategy of Kosovo recognizes the reopening Strategic framework of the railway line between the Podujevo-Pristina-Fushe Kosovo-Peje as one of the priority projects which will also contribute to development of intermodality by facilitating air transport from Pristina airport.

4. STRATEGIC RELEVANCE

Explain the features of the project in terms of: General rehabilitation of this line Kosovo will improve and develop highest level intermodal transport on a local, regional and international Improving inter-modality level. This will facilitate “door to door” transport using railway and road vehicles through the existing freight terminal in Fushe Kosove node. The respective project would have significant inter modality effect. Increasing international traffic (freight, Implementing this project Kosovo will increase passenger and freight persons) transport and at the same time will improve conditions for transport. Being included in the latest Multi-annual No, this project is not included in the SEETO MAP 2015. plan (MAP) of SEETO The line is connected with TEN-T Corridor through Nis or Lapovo in Providing connection to TEN-T corridors Serbia. Rehabilitation of this line will be done in accordance with the Its contribution to Improvement of safety contemporary railway safety standards. Having in mind the current conditions condition of the respective railway line, this project would have significant impact on the safety aspect. New, upgraded or rehabilitated By this project is foreseen the general rehabilitation and modernization infrastructure of the West Railway Line. Meeting annual traffic demand growth The project meets the requested criteria for transport growth. The rehabilitation of this line will facilitate shorter and safer travel Time reduction for journeys between Pristina – Klina and Peja between the markets for more than one hour. Realizing this project would lead to the predominant part of road freight Its effect on the reduction of CO and 2 transport being shifted to railways, which would have significant impact noise emissions in respect to the reduction of the CO2 and noise emission. The project would facilitate significant inter-regional economic growth since it’s connecting Kosovo and a neighbouring Country (Montenegro) Its contribution to overall economic growth and it contributes to regional cohesion and will assist in the development of seamless connections for passengers and freight in the Western Balkans. Yes, this project is in connection with the investments on railway route Its integration with other projects 10 in Kosovo as well as with investments in railway infrastructure in Serbia and in Montenegro. In terms of alignment, there was no need for alternative analyses The existence of alternatives having in mind that the project is related to rehabilitation of the existing

line. However, alternative options were explored when it comes to telecommunication, signaling and electrification options.

Part Two 5. MATURITY

Ready and Being Not Available studies and documents approved worked on started yet Conceptual idea X

Pre-feasibility study X

Conceptual design X

Feasibility study + CBA X

EIA study (if needed) X

Valid spatial planning documents X

Land property resolved X

Preliminary design X

Main design/detailed design X

Tender documentation X

Construction and other permits X

Construction contract signed X

6. DETERMINATION OF SOURCE OF FUNDING

Yes Justification No

Does the project enhance connectivity? X The realization of the project will have direct impact on the improvement of the railway connection within Kosovo, with regional countries and Integrated EU Network Does the project have cross-border impact This railway line has cross-border impact with or impact on other countries in the region? X Montenegro and also will have impact on other neighboring countries. Can the project in any other way be X Taking into consideration the SEETO Comprehensive earmarked as a regional project? Railway Network, linkage to TEN-T, and future connection with Monte Negro, this project can be considered as a regional project too.

7. SPENDING SCHEDULE

2010- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 Costs (in EUR) of: Project preparation 12,5 (TA) 40 40 33,3 Investment ME ME ME

8. OTHER ASPECTS

Have IFIs or other donors already been EBRD and EIB are consulted concerning this project and so far there isn’t consulted on the project? When? What was any decision concerning the project. their judgement? Existing EU or WBIF support (TA): amount, No purpose Has the Ministry of Finance already been consulted on the project? Describe The Ministry of Finance is informed concerning this project. feedback. Does the project generate revenues from This project is as a precondition for future developments and will end users? generate revenues from train operators Description of project team for INFRAKOS will establish a PIU for this project. implementation

GRID 7 TRA: General Rehabilitation of the Western Railway Line (Fushe Kosove – Klina – Peja)

WBIF Beneficiary: Kosovo Railways Infrastructure JSC - INFRAKOS Date: 25.08.2015

Sector: Transport

Sub-sector Railways

Line Ministry: Ministry of Infrastructure

Proposed infrastructure General Rehabilitation of the Western Railway Line (Fushe Kosove – Klina – project: Peja) Eligibility Criteria

No. Eligibility criteria Yes No Comments

e1 Is the project in line with valid EU policies and strategies? X

Does the project contribute to valid national development e2 X objectives?

Is the project in line with national Transport Sector Strategic e3 X framework?

Conclusion: X Does the project meet the eligibility criteria?

IF NOT ELIGIBLE, THE ASSESSMENT BELOW IS NOT REQUIRED!

Criteria for Strategic Relevance

Prioritization criteria for Score Weighted No. Scoring guide Weight strategic relevance (1-5) score

New intermodal centers = 5 The project improves inter- S1 5 Existing intermodal centers = 3 1 modality 5 No inter-modality = 1

The project increases Significant increase = 5 S2 international traffic of 3 Moderate increase = 3 1 3 persons and freights Limited increase = 1