UNMIK
United Nations Mission in Kosovo

EAR to Finance Municipal Infrastructure Rehabilitation Projects

UNMIK/PR/555

PRISTINA---On 29 March, the financing agreement for Municipal Local Investment Fund II (MLIF II) was signed between the European Agency for Reconstruction (EAR) and the Department of Local Administration (DLA) on UNMIK. The financing agreement provides for an EAR contribution of 2.6 million euro for small-scale municipal infrastructure rehabilitation projects in 2001-2002.

The objective of the Fund is to improve the quality of municipal services for the people of Kosovo through investment in infrastructure rehabilitation while building administrative and technical capacity of municipalities.

According to this agreement, DLA is responsible for the overall supervision and management of the MLIF II, while the municipalities are responsible for identifying and implementing small-scale municipal projects with the assistance of the technical team provided by EAR.

In 2000-2001, DLA and the municipalities in Kosovo had successfully implemented MLIF I, which provided for 7.3 million euros.