This Operational Procurement Report(OPR) provides an assessment of the public-sectorprocurement system in Kosovo, including that on thelegislative framework, the responsibilities and capacity ofthe institutions entrusted with regulatory and reviewpowers, the efficacy of current procurement practices, andon the environment. The report makes recommendations tobring about legislative, institutional and proceduralimprovements in the conduct of public procurement, and tobolster the capacity of public-sector institutions toconduct procurement. The report also examines theperformance of procurement in projects financed by the Bank,assesses the fiduciary risk to Bank funds from procurementoperations in Kosovo, and makes recommendations for thedesign of procurement arrangements on new Bank-financedprojects, and for future supervision of procurement tomitigate that risk. Among the various reportrecommendations, outlined are the enactment of atransitional legal instrument and completion of thelegislative framework for public procurement. Furthermore,greater transparency and accountability of public officialsconducting procurement transactions should be ensured, whiletechnical capacity for public procurement should be builtwithin the public sector. Most importantly, over the mediumterm, the new Law on Public Procurement should be amended.