IN THE FIELD
IMPROVING ROAD CONNECTIVITY IN KOSOVO Construction is underway in Kosovo on an upgrade of the main road linking Milloshevë and Mitrovica thanks to an international group of lenders including the OPEC Fund with a US$20 million loan
A recent mission to the country allowed MENA, Eastern Europe & Central Asia Country Manager Fatma Elzahra Elshhati to familiarize herself with the project’s progress and she underlines: “We were very encouraged by what we saw on the ground. The new road will in many ways be a game-changer, because improving connectivity is absolutely critical for the successful development of the country.” The 26.7-km section, financed by the OPEC Fund together with the Islamic Development Bank, the Saudi Fund for Development and the government of Kosovo is part of the road connecting Mitrovica with the capital Pristina. The modernization is vital for the economic development and regional and pan- European integration of this landlocked country in a strategic position in south- eastern Europe. The total project cost is US$112 million. Better roads will benefit Kosovo in many ways, Elshhati says. Shorter travel times will support the integration of the country. Better roads will facilitate exports and imports, offering new business and trade opportunities. They will provide local producers with faster, easier and better access to external markets. While road transport dominates over other modes in Kosovo, road density is among the lowest in Europe. Modern roads also improve safety and reduce the number of accidents. Kosovo is a small open economy and imports more goods and services than it exports. The development of a competitive private sector remains
a government priority. The provision of the necessary infrastructure and services has been recognized as a key condition for sustainable economic development. The construction of new and upgrading of existing road and rail connections are key pillars of the National Development Strategy 2030. Following a steep decline of output resulting from the outbreak of the COVID-19 pandemic in 2020, the Kosovar economy quickly recovered in 2021 thanks to a favorable external environment and a substantial inflow of remittances. Most recently, the authorities responded to the forth wave of the coronavirus in December 2021 with strict measures in order to protect the current low infection rates against the latest variant. The road financed by the OPEC Fund and its partners is part of the M2, one of the most important arterial routes of Kosovo’s 647 km core road network. Some sections have the highest average traffic in the country. The upgrade of the
and Hysen Durmishi, representatives of the Ministry of Finance, and other partners from the World Bank and the European Bank for Reconstruction and Development to discuss future cooperation and co-financing opportunities. She said: “I am very pleased with the good progress our project is making. But Kosovo needs more, as a modern transport infrastructure is key to its successful development. The OPEC Fund is committed to supporting this goal.” The OPEC Fund and Kosovo have been partners since February 2013, when the Fund decided to provide financial support to the country’s development priorities in accordance with its mandate. The Milloshevë- Mitrovica road is the OPEC Fund’s first engagement in the country.
“ Better roads [...] will provide local producers with faster, easier and
road from a single to a dual carriageway is a priority in the authorities’ economic development plans for the country. During her visit, Elshhati also met with government ministers including the Minister and Deputy Minister for Environment Spatial
better access to external markets.
Fatma Elzahra Elshhati, OPEC Fund, MENA, Eastern Europe & Central Asia Country Manager
Planning and Infrastructure, Liburn Aliu
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