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All budget users and public entities, including public enterprises, state-owned joint-stock companies, and municipalities, must submit their initiatives for public infrastructure projects estimated at €5 million or more to the Ministry of Finance. The Ministry will then conduct an independent review and verification of the pre-investment studies.
This requirement is established by the new Regulation on Public Investment Management, aiming to improve the preparation process of infrastructure projects and thus enhance their readiness for financing and implementation.
According to the Regulation, the process applies to infrastructure projects valued at €5 million or above. A dedicated public investment management sector is assessed within the Ministry of Finance. This sector will independently review and verify the pre-investment studies, monitor the implementation of the public infrastructure portfolio at the central level for budget users, and report to the Government.
Project proposers must prepare a project concept and a feasibility study. The Ministry of Finance will assess these documents, focusing on fiscal impact, risks, and sustainability.
The Government will approve the final priority list to prioritize financing; the Government will form an inter-ministerial working group/committee to rank project proposals centrally. The Government will approve the final priority list according to its goals and priorities.
This structured and comprehensive approach aims to improve the efficiency and effectiveness of capital project realization by reducing delays caused by a lack of feasibility studies and inadequate risk assessment. This practice aligns with international best practices promoted by global financial institutions.
The Minister of Finance emphasized the importance of this change to avoid past situations where projects started but remained unfinished for years due to immaturity at project initiation.
The initiative is part of public finance reforms linked to the new Budget Law, the EU Growth Plan for the Western Balkans, and the public administration reform roadmap tied to EU accession negotiations.
Training for public sector employees involved in defining, assessing, implementing, and monitoring large infrastructure projects will be conducted to build capacity for better public investment management.
The first project list under this new system is expected by October 2025 and will be implemented with the 2026 Budget.
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