1. Kosova - Aid management in a transition country
Key challenges and opportunities
Ms. Rozeta Hajdari
Donor Coordination Crentre, OPM

2. Aid characteristics
Aid is project based – almost no direct budget support or SWAPs
Sectorial allocation un-managed (e.g. health and education only 5%)
Balance between TA (80%) and capital investments (15%) unmanaged

3. Aid characteristics Aid not reflected in government budgets
Aid non harmonised – each donor using individual procedures
Bottom line : Aid most likely relatively ineffective and with high transaction costs

4. Aid management progress
Government increasingly ready to take on leadership
Key ministries are being established and have rapidly enhanced capacity from scratch
KDSP, MTEF, Sector plans are being made
Some sectorial coordination effective, but ad hoc and informal

5. Aid management progress
DCC and coordinative representatives per sector are being established in line Ministries.
Steering Council on Aid Coordination led by Senior Governmental Authorities
Agency for European Integration is in place

6. Aid management challenges
Donors and Government in Kosova seem relatively unaware of Paris declaration principles
Donor community (40 agencies) relatively fragmented and dis-organised
Political interests on donor side might make cooperation difficult
Weak capacity for aid coordination in line ministries
Existing aid management database not interfacing with Financial Management Syst.

7. Possible steps forward
Make aid policy for Kosova
Make MoU/Action plan for aid management agreed between donors and government
Make Paris declaration baseline survey
Enhance capacity in line ministries
Do aid survey 2006 and install web-based data base

8. On-going support to DCC
Capacity Building for European Integration Project (CBEI), EAR funded, implemented by UNDP Kosovo
Danish Ministry for Foreign Affairs
Other potential donor on AIMS