As part of the EU intervention in Kosovo, one of the areas of action under IPA 2015 is the improvement of the district heating systems in Pristina and Gjakova/Djakovica. It aims to: • decrease the heat losses in the district heating systems thus contributing to a more energy efficient system, • improve the quality of the heating supply for customers in order to substitute the use of electricity for heating purpose; • improve the environmental performance, i.e. reduce the GHG emissions of the two district heating systems by switching to renewable energy sources (biomass) in Gjakova/Djakovica and by reducing losses and improving energy efficiency in Pristina’s district heating system. The estimated total cost of the procedure is €24million and AETS consortium was selected to support the preparation of the project for the rehabilitation and extension of the district heating system in Pristina and for the construction of a new CHP plant in Gjakova/Djakovica. Regarding the work contracts, two lots have to be prepared under the PRAG rules and will include: Lot 1 Gjakova/Djakovica - construction of the new heating plant with cogeneration CHP production unit and its connection to the distribution network and Lot 2 - Rehabilitation of the distribution network in Pristina. A Service Contract is also foreseen to supervise the works for both previous lots and implement technical assistance for the Gjakova/Djakovica district heating company in regards to the operation of the new CHP plant.