A first look at UNMIK's planned expenditure for reconstruction and investment over the next three years foresees donor funding totalling DM 2.8 billion, nearly DM 1 billion a year. Presented by the Co-Heads of the Department of Reconstruction as a snapshot in the process of producing a coherent public investment and reconstruction programme (to be incorporated in the budget proposals later in the year), the figures serve as advance information for donors and the general public at the budget's general shape and scope.

The Co-Heads' report, "Kosovo 2001-2003 from Reconstruction to Growth", notes that at first sight the programme goes well beyond the likely resources available, particularly next year when almost two thirds (DM 1.72 billion) would be spent. Their own discussions with donors suggest a figure of DM 900 million would be a more realistic allocation from donors' budgets for each of the three years.

In the Co-Head's judgement, however, the spending agencies (JIAS departments and residual UNMIK responsibilities such as the Kosovo Police Service) are over-optimistic both about the absorptive capacity of their sectors and the pace at which donors can turn commitments into disbursements. In the next weeks, therefore, the agencies will be making more realistic assessments, spreading them over the triennium and considering expenditure cuts. If this is done, donor funding at a lower level, of the order of DM 700 million, would be needed in 2002 and 2003.

A second key concern is the extent to which donors' tentative sectoral allocations match the sectoral needs (education, health etc.) identified in the Co-Heads's report. Areas of concern are possible funding shortfalls for investment in the housing programme, the health sector and central administrative institutions such as the police, justice system, emergency services and the KPC.

The report expresses the shared ambition of the people of Kosovo, UNMIK and the international community to return Kosovo not merely to its state of early 1999, or even 1989, but rather to put Kosovo "on the path of sustainable economic and social development which gives the people of Kosovo a future in Europe as normal European citizens". In order to accomplish this, the report says that the people of Kosovo need to prove to donors that Kosovo is a place where people of all ethnic groups can pursue normal lives in a safe environment.

The assessment stresses that Kosovo needs to be helped out of its culture of dependency. In order to accomplish this, it calls for programmes that will "invigorate the economy: programmes to provide capital for enterprises, to educate and train Kosovo's workforce, to alleviate poverty and get people into work". It expresses the hope that basic infrastructure problems will be behind Kosovo by 2003 and that the territory will be well onto the road of sustainable economic and social development by that time.

The pressure on resources will only increase as international resources decrease and Kosovar resources are called upon to fill the vacuum. In order to do this, the report points to the need to implement a much broader taxation system. Currently, taxation is estimated at 5 per cent of GNP (compared with an OECD average of 37 per cent).

Because a key part of UNMIK's mandate is to shift governance of Kosovo to Kosovars, priority must be given to building the capacity of Kosovars to govern themselves, equipping them to deliver the highest standards of service in public administration, justice and policing, the report concludes.

The Head of UNMIK, Dr. Bernard Kouchner, on 28 November announced the establishment of a Joint Committee on Returns for the Ashkaljia/Roma people-a displaced community that is currently afraid to go home because of poor security conditions. The committee will identify villages where houses would be built and security conditions ensured before people are resettled. "We should plan returns carefully because the recent killings remind us that the confrontation between communities is unfortunately not over," Kouchner stated.

On the same day, the SRSG went to the camp for displaced Ashkaljia/Roma persons in Obilic, which houses 693 people. Camp leaders voiced their concern to Dr. Kouchner about the lack of security in Kosovo for them 18 months after the conflict, and asked to be relocated to a third country.

The SRSG explained to them that no country was offering that possibility. He assured the displaced people that with continuous international support, they will retrieve their homes and properties.

The 2001 inter-agency consolidated appeal for Kosovo, launched in Brussels as part of the Southeastern Europe regional appeal, seeks $120 million (c. DM 267 million). Although less than the $ 250 million in 2000, the amount sought showed the humanitarian needs still existed in Kosovo and should not be underestimated, the appeal said. The appeal foresees four areas for 2001: promotion of human rights and the establishment of a secure environment; phasing out of direct humanitarian assistance and transition to the interim administration; capacity building of the local population to ensure adequate public services; and the standardization of information, including reliable indicators for planning purposes.

A total of 20,000 houses in Kosovo have been rebuilt or constructed in 2000 with the support of the international community. Thus, the target figure, set by UNMIK Pillar IV, has been met. The Pillar will celebrate this event on Wednesday, 6 December, with the participation of the major donors, among them the European Agency for Reconstruction.

UNMIK and the Islamic Development Bank have signed a memorandum of understanding for a $40 million reconstruction programme for Kosovo. A total of $10 million of this have been given for the reconstruction of 17 schools.

All Kosovo hospitals and health houses can now dispose of their clinical waste in incinerators, built with the help of donors, particularly the European Agency for Reconstruction. Inadequate disposal of such waste poses a serious environmental and health hazard and has been of great concern to the Department of Health and Social Welfare. The WHO has also trained hospital staff in clinical waste management.

A Kosovo-wide assessment of municipal waste disposal sites has been completed by two teams of technical experts, commissioned by the European Agency for Reconstruction. The survey will define and propose concrete measures to ameliorate existing municipal dumpsites and, where possible, expand their life expectancy to two or more years. It will also identify sites suitable for the construction of new sanitary landfills that could serve for the next 10-20 years. In addition, the survey results will form the basis for the contracting of remedial works in 2001 to improve the existing sites.

The implementation of sustainable strategies for the Kosovo environmental protection in 2001 will require an estimated investment of DM 6.5 million. Of this amount, DM 3 million has been provided by the Italian Government for the improvement of the environment in urban areas, and DM 500,000 by UNICEF to increase public awareness and provide environmental education. The Department of Environmental Protection is preparing project proposals to mobilize the remaining DM 3 million from other donors.

The Department of Health and Social Welfare has signed a memorandum of understanding with Handicap International (HI) for the rehabilitation of war invalids and mine victims. The HI will provide technical assistance in the implementation of a physical medicine and rehabilitation programme, which will include information gathering and needs assessment, training and education, and material and equipment distribution.

Qualified nurses are invited to apply for a Training of Trainers Course scheduled to begin in January 2001. The invitation has been issued by the Department of Health and Social Welfare and the Nursing Education Project funded by the Government of Finland. After graduation, the trainees will run a series of courses expected to provide vital upgrading training for some 1,200 nurses in primary health care and family medicine. Together with the doctors already participating in family medicine training, these nurses will form the core of future family medicine teams.

All donations and purchases of medical equipment for any official health care institution in Kosovo will have to adhere to guidelines set up by the Department of Health and Social Welfare. Under its recently adopted instruction on the subject, the donor will also have to ensure proper installation, manuals, training, spare parts and consumables for at least one year, warranty and a three-year service contract.

Work on construction of the Temporary Faculty Facility in southern Mitrovica has started. Over 40 containers for lectures and accommodation are to be set up by mid-December. The Facility will open by the end of December and will host some 200 Kosovo Albanian University students of the Faculty of Mining and Metallurgy.

In a further step towards creation of a Veterinary Board, the Department of Agriculture, Forestry and Rural Development has completed selection of Senior Veterinary Inspectors. A meeting was held in Istog/Istok with a group of senior veterinarians to discuss privatization of veterinary stations and licensing of veterinarians, as well as the guiding principles of the future Board.

In six weeks, the Department of Judicial Affairs will take over the Pristina Detention Centre from the UNMIK Police. Meanwhile, playing an advisory role in the management of the facility, the Department has conducted its security review. At the end of December, it will also take the responsibility for the Detention Facility in Gjilan/Gnjilane.

A new international judge-Renata Winter of Austria-was sworn in on 27 November and will be assigned to the Mitrovica District Court. Efforts are ongoing to recruit the required number of international personnel, in order to have all regional district courts fully staffed by the beginning of 2001.