EU against the decision of the Kosovo Government to use funds from the Development Fund to pay off the electricity debt in the north

The European Union opposes the decision of the Kosovo Government to use funds collected in the Development Fund, designated by the Brussels Agreement to improve the lives of the Serbs in the four municipalities in northern Kosovo, to pay off the debt to the KOSTT company for electricity consumed in the north, Koha Ditore reports.

According to the EU, this decision is not in line with the agreement reached 11 years ago between Kosovo and Serbia.

Finance Minister Hekuran Murati stated at the Government session in December that the unpaid debt for electricity in the north, accumulated over more than two decades, would be paid using savings from the budgets of the four northern municipalities, including the Development Trust Fund, which had already been allocated to these municipalities.

"To pay a part of these debts, we asked the four northern municipalities to declare their budget as savings, including the Development Trust Fund, which has already been allocated to these municipalities," Murati said.

The EU Office in Kosovo stated that using these funds to pay for electricity in the north did not meet the criteria defined by the Brussels Agreement.

"The repayment of electricity debts does not meet the criteria for financing projects from the Development Fund outlined in the Brussels Agreement on the collection of customs revenues dated January 17, 2013," the EU Office stated.

In response to this EU stance, the Kosovo Government has not provided an answer, Koha Ditore reports.

It has been 11 years since the creation of the Development Trust Fund, funded by customs duties collected at the Jarinje and Brnjak crossings, with the aim of further investing in infrastructure, social services for the Serbs in the north, institutional capacity development, culture, sports, and agriculture.

According to EU data, since its establishment, over €14.5 million has been allocated for various projects, and there is currently €3.6 million available for the payment of new projects.

"A total of 36 projects have been financed by the Development Fund in the four northern municipalities, nine in North Mitrovica worth nearly €7 million, eleven in Zvecan over €3 million, nine in Zubin Potok over €2.5 million, and seven in Leposavic worth over €2 million. The projects have focused on the construction and rehabilitation of cultural and sports facilities, construction and repair of local roads, support for small and medium-sized enterprises, as well as civil society, repair of the sewerage network, construction of drinking water reservoirs, and the purchase of medical equipment," the EU Office stated.

From the savings of municipalities and funds received from the Development Fund, the government has so far paid €11.8 million of the debt to KOSTT for electricity in the north. An additional €18.9 million is still owed to this company.