Drenas Industrial Zone Infrastructure Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:




PSD disclosed:

23 May 2019

Project Description

Provision of a sovereign loan of up to EUR 10 million to the Republic of Kosovo to finance an extension of an existing industrial zone located in the municipality of Drenas.

The proposed project encompasses investments in main municipal infrastructure, including the construction of roads in the zone and their connection to the main road, the construction of a water supply network within the zone, the construction of electrical grids within the zone and their connection with the main existing electrical grid of the zone, the construction of a gas network, the construction of a sewage system for the treatment of waste and industrial waters and the construction of a wastewater treatment plant (the Project).

Project Objectives

Enable industrial and manufacturing companies to expand their operations and become more competitive. The industrial zone will address some of the main constraints faced by companies to increase or make new investments in Kosovo: land ownership, expensive land purchase price and lack of infrastructure such as electricity, water and access to transport corridors.

Transition Impact

Moderate Good

The transition impact of the proposed project will be achieved through:

  • The promotion of the country's industrial development through the provision of infrastructure and land to local manufacturing companies
  • The provision of technical assistance to the Kosovo authorities with the aim to improve the regulatory framework of industrial zones.

Client Information


EBRD Finance Summary

EUR 10,000,000.00

Total Project Cost

EUR 11,800,000.00

Environmental and Social Summary

The Project is categorised B in accordance with the Environmental and Social Policy 2014.

Environmental and social issues associated with financing the expansion of the existing industrial zone are associated with site specific environmental and social impacts which can be readily identified and addressed by appropriate mitigation measures.

The client will be required to complete the Bank's Environmental and Social Questionnaire for Property Development in the first instance so that the Environmental and Social Department can determine the scope of further due diligence. The Environmental and Social Due Diligence for the proposed expansion will examine: environmental and social baseline conditions; potential past contamination; hydrogeological conditions; official environmental permits; information disclosure and public consultation; land acquisition process (already completed by the Ministry of the Finance); infrastructure provisions related to the road links, national grid links and the existing WWTP (and its expansion or replacement), construction-related environmental and social issues, such as labour and Occupation Health and Safety issues and building life & fire safety issues. The ESDD will also examine environmental and social management issues during the operational phase. An Environmental and Social Action Plan will be developed based on the findings of the ESDD.

Technical Cooperation

  • Project preparation TC which will cover the following activities: : i) preparation of feasibility study; ii) financial and economic analysis of the Project; iii) environmental and social due diligence, iv) procurement assessment of MTI as well as preparation of comprehensive procurement schedule and implementation arrangements recommendations; v) preparation of a complete ESIA package in line with EBRD Environmental and Social Policy (2014) and vi) an analysis on the advantages and challenges relating to most appropriate operating agency of the zone.
  • Project Implementation Support for MTI, depending on the result of the due diligence and on the requirements of the Project, to ensure that the implementation of the Project is timely and cost effective and to ensure compliance with EBRD Procurement Rules and Procedures.
  • Preparation of a Public Service Contract ("PSC"). Depending on the selection of the implementing agency during due diligence, this TC will support preparation of the PSC between MTI and the operating agency.
  • Strengthened regulatory framework of industrial zones: The TC will support the Kosovar authorities in strengthening the framework that regulates industrial zones.

Company Contact Information

Nol Buzhala

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

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