Issue 13

The

Horizon Magazine of the American Chamber of Commerce in Kosovo • Issue 13

Privatization in Kosovo A key reform in 2010.

Pension System Reforms Providing long-term sustainability, financial stability, and economic growth.

Time to discover new sources of financing

AmCham Kosovo

AmCham Members American Alliance Language Services • Agani Ltd • Alcatel • Lucent • Albad • ARKING • ASGETO • ATLAS Electric Company. INC • AUK • Avokatura I. O. T. – L.L.C • Banka Ekonomike • Belleair • BONUS • BOGA & Associates • British Airways • Bucaj L.L.C. • BU & Partners • Booz Allen Hamilton Inc, Kosovo Branch • Capital Ring • Coca Cola HBC Kosovo L.L.C • COMPAKT GROUP • CONIN • Deloitte • Devolli Company • Dukagjini Group • DELFINI L.T.D • ECOTRADE • ELTING • Emerson Moore Drilling Ltd • L.T.I EXPIK L.L.C •FEKI • Fondi Slloveno Kosovar I Pensioneve • JahaCom • Gllareva • Gorenje Niti Tiki • Grant Thornton • IPKO Telecommunication L.L.C • Ilir Kosova • Linda Shala • Gail Warrander • Arber Sherifi • Safet Dorambari • Diamant Rrahmani INFORMATIKA Computers L.L.C • KALO & Associates Kosove L.L.C • Ogilvy Kosova • Kosova Motors • Kosova Steel • Kosovo Resource Company L.L.C • KPMG • KONET • Marigona Residence • Mimoza KusariLila • MDA • Meridian • Microsoft • New Kosovo Energy L.L.C • NewCo Ferronikeli Complex L.L.C • NewCo AROMATIK L.L.C • NLB PRishtina • ONIHERBA • Pallaska & Associates • Patroni • Pestova • PharmaSwiss SA L.L.C • Procredit Bank • PRONET • Pricewaterhouse Coopers • Raiffeisen Bank • Recura Financials • RIMA Eng. • Royal Iliria University • Santefarm L.L.C •Scan Color & Jysk • Sharr Beteiligungs GmbH • SCAAK • SIGURIA • SIGAL • Semitronix Center • SGS • SOLE KOSOVA • STONE CASTLE • Technetix Triangle General Contractors Inc • TEB • 3CIS L.L.C • UBT •UniProject •Unio Commerce-SILCAPOR • Valvis Company •Western Union • SPORT IN

Publisher American Chamber of Commerce in Kosovo St. Gustav Majer, No. 6 10000 Prishtina, Kosova Tel: +381 38 246 012 +381 38 248 012 e-mail: info@amchamksv.org www.amchamksv.org

Design: XHAD STUDIO THE HORIZON

Contents Note from the President of the AmCham Board of Directors....................... 3 General Assembly Meeting........................................................................... 4-7 Time to discover new sources of financing..................................................... 8 Businesses Explore Capital Market Options in Kosovo................................. 9 Pension System Reforms...........................................................................10-11 Matching Opportunities to Kosovan – Macedonian Businesses................ 12 President of the Republic of Kosovo meets with AmCham Members........ 13 Business Luncheon with Minister of Finance and Tax Director.................. 15 Privatization in Kosovo as a key reform in 2010 ......................................... 15 The Investment Promotion Agency of Kosovo (IPAK)................................. 16 Upcoming AmCham Events........................................................................... 17 The Time For Arbitration In Kosovo Is Now.............................................18-20 Focus on AmCham Patron Members........................................................22-23 Latest News on Business Environment in Kosovo........................................ 24 AmCham welcomes new members..........................................................25-27

THE HORIZON

AmCham Kosovo

Note from the President of the AmCham Board of Directors

I

am honored to have been elected to serve as this year’s Chair of the AmCham Board of Trustees. AmCham fulfills an important role in Kosovo, both as a respected voice of the leading firms in the country’s private sector, and also as a vehicle for closer ties between the United States and Kosovo.

There are some major challenges ahead of Kosovo, and strengthening the country’s business climate is a key to prosperity. AmCham has the independence and the credibility to be an important voice in dialog with the Government of Kosovo, and we will use that credibility, carefully, on key issues – to praise and thank the Government when it does the right thing, and to offer constructive criticism when it does not.

In the next two years we all hope that some major investments will get under way in Kosovo – the highway to the Albanian border; the New Kosovo power plant; privatization of parts of PTK and KEK, and others. It is likely that, in addition to the Bechtel-Enka highway contract, other U.S. firms will participate in these tenders and bids.

As a Chamber, we can assist U.S. firms in many ways, not least in ensuring they understand the range and quality of subcontractors and service providers available here in Kosovo.

I am pleased to be able to serve as Chair of AmCham’s Board with such a capable and enthusiastic group of Directors. I am also delighted that the outgoing Chairman, Luan Dalipi, has agreed to serve another term on the Board. Most of all, I am happy that Lekë Musa is serving as our new Executive Director. Our job as a Board is to set priorities, including the Budget; but mostly to support the Executive Director, who drives this organization. Lekë takes over from a dynamic leader, Mimoza Kusari-Lila, who built AmCham into a serious institution. I am sure than under Lekë’s leadership, AmCham will grow to new heights.

Thank you for your support of AmCham Kosovo.

Chris Hall.

Dr. Chris Hall is President of the American University in Kosovo. A former steel and mining industry executive and state Senator, he has served on the Board of AmCham since 2007.

THE HORIZON

3

General Assembly Meeting

T

he American Chamber of Commerce in Kosovo (AmCham) held this year’s annual General Assembly (GA) on February 18, 2010, in the auditorium of the American University in Kosovo. The GA is an annual meeting usually held at the beginning of each year, where members of AmCham gather to elect the Board of Directors and approve the business plan for the upcoming year. Apart from active members of AmCham, present in this year’s GA were officials from the United States Embassy in Kosovo, representatives of the Civil Liaison Office of Camp Bondsteel, the Director of the Investment Promotion Agency, Mr. Mustafë Hasani, UNDP in Kosovo representative, Ms. Lindita Daija, and representatives of local and international institutions.

During this GA Meeting a Memorandum of Under-

4

THE HORIZON

standing was signed, with the Investment Promotion Agency in Kosovo (IPAK), for the purpose of increasing cooperation between AmCham and this institution.

In addition, another Memorandum of Understanding was signed with the United Nations Development Program in Kosovo (UNDP), through which, AmCham and the UNDP in Kosovo will give out the annual corporate responsibility award to businesses which make community investments.

One of the most important points in this Assembly was the election of the new AmCham Board of Directors. As a result of these elections, the new President of the AmCham Board is now Mr. Christopher Hall, the current President of the American University in Kosovo. In the following pages you can find biographies of each Board member.

AmCham Kosovo

Dr. Christopher Hall - President, American University in Kosovo President of the AmCham Board of Directors Dr. Hall finished his education at Oxford University, England, where he received a Ph.D. in International Relations, and at Columbia University, New York, where he received a Masters in Business. From 1980 to 1995 he was an executive in the American steel and mining industries. Dr. Hall spent ten years in US politics (1995-2004) in the state of Maine, as Democratic Party Chairman, State Representative, State Senator and member of the Democratic National Committee. He has taught at AUK since 2005: teaches Public Policy courses to Bachelors and Masters students. Dr. Hall has been President of A.U.K. since July 2007 and a Board member of AmCham since September 2007.

Mr. Erolld Belegu - Chief Executive Officer, Marigona Residence and EBC Company Vice-President of the AmCham Board of Directors Mr. Belegu graduated in English Language and Literature from the University of Prishtina. He obtained a masters degree in Management from Iliria University. After working as a journalist in the Rilindja daily newspaper and later in Radio Television of Prishtina, he opened the first private enterprise and cosmetics store. Apart from working in the Cosmetics field, he is also engaged in many other businesses. In 1999 he became the marketing director of RTK and a year latter began a real estate development business with Marigona 1 and 2 neighborhoods which have been finalized, and in 2008 with the largest construction development project in Kosovo, the Marigona Residence near Prishtina. Mr. Belegu is an active member in many boards and cultural events. He is the organizer of Video-Fest (video music awards event) and he earlier organized the musical festival SHOW FEST for eight years. He is the president of the Basketball Federation of Kosovo, President of INKUS, and Institute for Culture and Sport, President Elect of Rotary Club Prishtina, and member of Foreign Policy Club.

Ms. Ardiana Bunjaku - Executive Director, Society of Certified Accountants and Auditors of Kosovo Treasurer of the AmCham Board of Directors In the past six years Ms. Bunjaku has built one of the most effective, sustainable and internationally recognized Non Governmental Organizations in Kosovo. SCAAK is a self-regulating organisation of professional accountants and auditors and under Ms. Bunjaku’s leadership SCAAK has achieved membership of the International Federation of Accountants, a twinning agreement with the Netherlands Institute of Chartered Accountants (Royal NIVRA), and membership of regional professional accounting and auditing bodies such as the Mediterranean Federation of Accounting Experts (FCM). In building SCAAK, Ms. Bunjaku has successfully championed the role of financial management in economic development in Kosovo, and has become a frequently requested national spokesperson on issues relating to business service provision, international standards, accounting and auditing and the development of Kosovo’s business environment. Ms. Bunjaku obtained a Bachelor Degree in Business Administration from the University of Prishtina. She is currently in the final stages of completing a Masters Degree in Insurance, from the University of St.Clement, Macedonia.

THE HORIZON

5

Mr. Dastid Pallaska – Pallaska and Associates Secretary General of the AmCham Board of Directors Mr. Pallaska is an attorney at law, specialized in banking and finance law, corporate law, and intellectual property law.

Presently Mr. Pallaska serves as a pro bono Of-Counsel at Pallaska&Associates. At the same time, Mr. Pallaska is the Executive Director of East West Management Institute’s Kosovo office.

Between 2008 and 2009 Mr. Pallaska was a Counsel for Wolf Theiss, a Vienna based international law firm with twelve offices throughout Central and Eastern Europe (CEE). Mr. Pallaska was stationed in Wolf Theiss’ Vienna office from where he oversaw the firm’s CEE dispute resolution practice group and served as the firm’s quality assurance attorney for the CEE offices. Prior to this, Mr. Pallaska worked for seven and a half years for the U.S. Department of Justice office in Prishtina as a Legal Specialist. His key accomplishments during his tenure were development of the policy paper on restructuring the Kosovo justice system, development of the laws on judicial system, prosecutorial service and police as well as drafting of the law against money laundering and the law on vetting procedures for the appointment of judges and prosecutors. Additionally, Mr. Pallaska was a member of expert working group that drafted the Commentary of the Kosovo Criminal Procedure Code and was instrumental in establishing Kosovo’s first legal clinic in the University of Prishtina. His aforementioned accomplishments were recognized by the U.S. Department of State through six prominent awards, the most prestigious being the Superior Honor Award, signed by the U.S. Assistant Secretary of State for Europe and Eurasia.

Mr. Pallaska is also an Assistant Professor of Criminal Procedure in the University of Prishtina. He is a graduate of University of Prishtina Law School and has completed his postgraduate studies (LLM) at Yale Law School in the United States.

Mr. David Cowles Chief of Party, Kosovo Private Enterprise Project (KPEP) Mr. Cowles has 30 years of broad-based international experience with the United States Agency for International Development (USAID) and Booz Allen Hamilton (Booz Allen). Mr. Cowles has held a number of senior management positions and demonstrated technical leadership on a wide range of economic growth issues, including economic policy, trade and investment, enterprise development, privatization, and financial sector reform. He has spent a significant portion of his professional career overseas, with assignments in Africa, the Middle East, and Central and Eastern Europe. He is currently serving as the Chief of Party for the Kosovo Private Enterprise Project (KPEP), a four year, $18.7 million USAID funded activity designed to improve the competitiveness of Kosovo’s economy.

Ms. Eriola Bibolli General Deputy Director, ProCredit Bank Kosovo Ms. Eriola Bibolli became part of the ProCredit team in 2001. In April of 2008, Ms. Bibolli was promoted to her current position. She graduated in Economics in the University of Korca, in Albania, and earned a Masters Degree in Business Administration, in 2005, in the Universty of Bradford in England, which was in partnership with the University of Nimba in Holand. She also graduated in the ProCredit Holding Academy in Germany.

Mr. Afrim Maloku - Chairman, Deloitte Kosovo Mr. Maloku is the Chairman of Deloitte Kosovo, and the co-founder of the Kosovo office.

Some of his association memberships include: Member of the Council of Economic Policies of Kosovo; General Inspector in Banking and Payments Authority of Kosovo in Prishtina; Cofounder and Secretary General of Bankers Association of Kosovo 2002 –2005; Board member of American Chamber of Commerce in Kosovo.

Mr. Maloku is a graduated economist. He holds a license in Audit from the Federal Ministry of Finance in former Yugoslavia since 1996 and he is a statutory auditor – member of SCAAK. He has over thirty years experience in audit, with a focus on Banks, Insurance Companies, and Public and Socially Owned Enterprises. He has developed great knowledge of the business environment in Kosovo which contributes to successful services.

6

THE HORIZON

AmCham Kosovo

Mr. Dennis Purdin- President, Atlas Electric Kosovo Mr. Purdin is a graduate of Columbia Basin College in Pasco, Washington where he obtained a degree in Engineering Technology. He also gained certification in legal research from the Paralegal Institute and has attended numerous training courses and seminars throughout his working career. He is presently the President of Atlas Electric Inc. - Kosovo Branch in Prizren. He began active work in Kosovo in July of 2009. He has lived and worked throughout the United States during his 30 year career in the Construction Industry. His working experience includes work on numerous large and complex projects, ranging from Nuclear Power Plants to Telecommunication Networks. Mr. Purdin has performed functional management roles in Engineering, Contracts/Subcontracts, Quality Assurance/Control as well as Site and Market Manager positions for direct hire and subcontracted work respectively. Twenty of his thirty years of experience was gained working for Bechtel, one of the largest Engineering/Construction companies in the world. While Mr. Purdin initially came to Kosovo for a business opportunity, he says he has come to thoroughly enjoy the country and its people and now considers it to be his second home.

Mr. Gëzim Pula - Managing Director, 3CIS Mr. Pula graduated as an electrical engineer in the Electrical Engineering Faculty of the University of Zagreb, Croatia, in 1977. He finished his postgraduate studies in this same University in 1982. He started his career in Post and Telecom of Kosovo (known previously as PTT) in 1986 as a Planner for Telephone Exchanges and also as a Deputy Director for Technical issues of PTT. In 1998 he held the position of the senior local staff of Communications Unit in OSCE – KVM. In 1999 he became the head of operations and maintenance of telecommunications system in PTK. From year 2000, for one year, he held the position of the General Director of PTK. In 2001 he held the position of the Deputy Head of Post and Communications department of UNMIK. In 2002 he became a Permanent Secretary in the Ministry of Transport and Communications. In 2006 he moved to the position of the Director of the Department for Strategy and Development, in the Ministry of Energy and Mining (until 2008). Currently, he is the Managing Director of 3 CIS J.S.C.

Mr. Luan Dalipi – Managing Partner, Management and Development Associates Mr. Dalipi is a strategic consultant, trainer and coach. He is the Managing Partner of Management & Development Associates, a leading Kosovo-based management consulting and training company specializing in public sector capacity building and private sector development. MDA is a certified ISO 9001:2008 company and a Registered Education Provider of Project Management Institute (US). In his capacity as strategic consultant, Luan has been instrumental in advising public and private organizations throughout complex restructuring initiatives and negotiations. He has a reputation to motivate Kosovo managers through his sheer passion for improving the overall livelihood of his fellow Kosovars. Luan shared in a US Department of Commerce Silver Medal award for his business advocacy efforts at the Economic / Commercial Section of the US Embassy Prishtina. A long term advocate of issues important to the Kosovo business community, he is one of the founders of the American Chamber of Commerce in Kosovo and was President of the Board during the 2006 and 20082010 terms. Luan is a graduate of Fisher International MBA Program of the Monterey Institute of International Studies (US), where he went as a recipient of the Kosovo American Education Fund, a graduate-level scholarship fund dedicated to the economic development of Kosovo.

He now serves as the Chairman of this Fund’s Kosovo Committee.

Mr. Valon Lluka Chief Executive Officer, Banka Ekonomike Mr. Lluka was born in Gjakova, on May 10, 1975. He has been working in the banking sector since 1999. Currently he is the Chief Exeutive Officer of Banka Ekonomike, performing this position since 2007. Prior to his current position, he worked for ProCredit Bank Kosovo and ProCredit Bank Albania for almost eight years. Mr. Lluka has participated in many different committees and organizations, project implementations and many workshops and activities. Mr. Lluka is an MBA graduate. He lives in Prishtina with his wife and two daughters.

Mr. Lluka currently sits on directing boards of Banka Ekonomike, and of the Kosovo Bankers’ Association where he serves as the Vice President of the Board.

THE HORIZON

7

Time to discover new sources of financing

E

nhancing financial stability and reducing the vulnerability of financial systems remains key challenge for Kosovo. The importance of meeting this challenge, both from the point of view of savers looking for a superior risk– return trade-off and from the point of view of domestic enterprises looking for external sources of finance, cannot be overemphasized.

The conference on Access to Capital organized by the American Chamber of Commerce in Kosovo on March 16, 2009, had an intention of bringing together users and providers of capital in Kosovo. I believe that the most important result of this conference is the need to explore additional forms of financing, which can be explored by liberalizing pension and insurance funds in Kosovo. Also, the other recommendation of the conference is the need to improve overall financial management and to upgrade the quality of projects that are presented to potential financial institutions or/and investors.

The level of bank intermediation between domestic savers and potential investors in the domestic real economy remains low. The choice of financial products and

8

THE HORIZON

services offered by the banking sector remains restricted.

Much more needs to be done in order to achieve a fully functioning and efficient banking sector. The relative underdevelopment of the banking should be compensated for by a strong non-bank financial sector or by thriving capital markets.

Due to gross and net cross-border capital flows, mainly as a result of large trade imbalance has to be compensated with other forms of financing. Complimentary to other forms of financing, most of the financing directly in equity will also increase know-how and financial discipline among local companies. AmCham will continuously try to work with its members from financial services sector and business to explore potential sources of capital and how these sources can contribute to increase the availability of capital. We see our role as a facilitator in bringing together interested parties from which we would be able to draw an agenda for financial services reform which will be a corner stone of economic development in Kosovo.

LekĂŤ Musa - Executive Director, AmCham Kosovo

AmCham Kosovo

Businesses Explore Capital Market Options in Kosovo

O

n March 16, 2010 AmCham organized a Conference on Access to Capital. The conference began with the presentation of results of a mini survey conducted by AmCham which aimed at learning looking at sources that are available to Kosovo businesses for businesses start-up as well as for implementation of their later plans and projects.

The conference continued with the presentations of keynote speakers representing various financial institutions, under the moderation of the President of AmCham Board of Directors, Dr. Christopher Hall.

The results of the Study on Access to Capital showed that Kosovo has limited sources of capital, specifically when it comes to business start up, and that bank loans are provided at very high interest rates. The Study was comprised of two parts, with the first part focusing on what the businesses say about sources to capital and the second part focusing on Kosovo commercial banks and their experience in providing business loans. The survey with AmCham member businesses showed that they have used three primary sources for starting up their businesses, i.e. personal savings, borrowings from family and friends and personal loans. The results of interviews conducted with Kosovo banks showed that the procedures for giving loans to businesses are simple and flexible but the interest rates are quite high ranging from 12.02% as the average minimum rate for businesses.

The second part of the Study also showed that Kosovo banks are not satisfied at all or are satisfied to a minimum extent with the quality of the business plans

they receive from Kosovo businesses. The overall key recommendations of the Study include immediate exploration of new alternative sources to capital, more active monetary policies by the Government which would ultimately help the cutting of interest rates, the need for banks to start giving business start-up loans, and the necessity that businesses be trained or hiring consultancy companies in drafting of business plans.

AmCham invited four keynote speakers for the conference: Valentin Toรงi - Chief Economist of the Central Bank of the Republic of Kosovo, Spirro Brumbulli Managing Director of Banka Kombetare Tregtare, Jank Trenkoski - KB Prvo Penzisko Drustvo AD Skopje, and Bersant Disha - Recura Financials. Their presentations were focused on various topics such as the views of the Central Bank of Kosovo as a regulatory body of the banking and insurance sector in Kosovo, the views of the banking sector with regards to access to capital, the regional experience on how other alternative sources could help the business development and lowering of interest rates, as well as other alternative sources of finance which are available currently in Kosovo, including donor assistance and loans from international finance institutions.

The conference concluded with recommendations that a competitive pension system and pension funds in general can be instrumental to the development of national economies via equity investments in local small and medium enterprises, financing of infrastructure projects, and providing funding/liquidity to regional/local stock exchanges.

THE HORIZON

9

P

ension reforms follow a tendency to ensure that some key intended purposes are met, i.e. the provision of a reliable source of retirement, the reduction of financial drainage on governments, the boost on local savings, the stability of domestic sources of development finance, and the promotion of the development of local capital markets.

So far, in Kosovo, the pension reforms have not yet come to an equivalent level with countries in the region or further, that have undergone this process. At the beginning the reform was a three pillar system; the first pillar being government sponsored for all retirees; the second being the mandatory scheme, while the third one being the voluntary. Tax incentives were in place although for the third pillar they were not as “aggressive� as one would like to see in the beginning of such a process, especially in terms of boosting savings.

The dose of skepticism some officials have in reforming the pension system in Kosovo can be overridden by looking at regional examples where this reform has

been ultimately successful. Croatia and Bulgaria liberalized the 2nd pillar in year 2002, Macedonia in 2005 with Romania following in 2008, all of which outperformed non-liberalized markets.

Looking at the case of Macedonia and Croatia with 250.000 and 1.5 million contributors respectively savings have soared up to 160 million and 4 billion Euros correspondingly. Investments in Macedonia have been split in local bank deposits 30%, local shares 10%, government bonds 50%, foreign high-quality shares and

Pension System

Reforms

10

THE HORIZON

AmCham Kosovo

bonds 10%. On the other hand, investments in Croatia were: local shares 14%, Government bonds 55%, foreign shares and bonds 10%, deposits 5%. Today in Macedonia, there is even a discussion about opening up the investments in the pension funds to local private equity funds, Mezzanine finance, real estate, infrastructure projects. We can clearly see from these examples that an open and competitive pension system and the pension funds operating within it are instrumental to the development of national economies, an issue so eminent in Kosovo.

If such reforms take place in Kosovo, they will provide for long-term sustainability, financial stability, and economic growth in general. As the number of contributors in Kosovo continues to grow, the need for purposeful investments in the national economy becomes apparent and opening a capital market through pension fund re-

sources is exactly the way to come to such endings. The need for the pension system to evolve and alongside it the idea to use these funds in development finance as well as in a local capital market becomes palpable, especially now as we see the first signs of recovery from the recession in developed economies.

The existence of options (pension funds and investment tools) should in time create a greater demand for securities and encourage issuance of new instruments by type and maturity. This is even more highlighted with the large infrastructure projects coming up. Kosovo has to create a capital market by liberalizing the pension system; ensuring better regulation of the pension fund-industry (if the development of investments through pension fund resources is the aim); and developing instruments that provide sufficient space for pension fund administrators to invest prudently in the local market. Undertaking such actions will provide better opportunities as for the individual saver so for the institutional investor.

Hana Sahatqija, Slovenian-Kosovo Pension Fund

THE HORIZON

11

AmCham Kosovo in cooperation with CEED Kosovo, the Association of Information and Communication Technology Companies of Kosovo (STIKK), American Chamber of Commerce in Macedonia, and CEED Macedonia, organized a one-day Business-to-Business event between Kosovo and Macedonian businesses. The B2B event took place on March 11, and it was financially supported by the Investment Promotion Agency of Kosovo (IPAK).

Matching Opportunities to Kosovan – Macedonian Businesses The event gathered more than 100 business people from 40 Macedonian companies and 30 Kosovo companies. The participants of the B2B event gathered at Hotel Gorenje in Veterrnik in Prishtina where they were welcomed and greeted by the hosts of the event, Chris Hall, President of AmCham Board of Governors, Leke Musa, Executive Director of AmCham Kosovo, Kreshnik Lleshi, Managing Director of CEED Kosovo, and Vjollca Çavolli, Executive Director of STIKK. They were also addressed by the co-organizers of this event from the Macedonian side, Sonja McGurk, Executive Director of AmCham Macedonia and Jovan Madzovski, Regional Manager of CEED Macedonia.

The head of Kosovo Investment Promotion Agency, Mustafe Hasani also welcomed the participants of the B2B event and delivered a presentation on investment opportunities that Kosovo provides for foreign investors.

12

THE HORIZON

The event continued with separate peer to peer meetings, which had been previously arranged by the organizers of the event, according to the sector similarities they shared.

After the peer to peer meetings in Hotel Gorenje, the B2B event continued with a group visit to the premises of Office Business Centre Kosovo (OBCK) and Dukagjini Corporation, where they followed a presentation on the project of this Corporation for the construction of World Trade Center Prishtina. The event was concluded with a group visit to the premises of one of the most successful Kosovar companies, Buçaj, where a special reception had been organized for them.

The B2B Kosovo-Macedonia event was an excellent tool to promote the business environment of Kosovo, encourage cooperation, and improve networking.

AmCham Kosovo

On January 16, 2010 AmCham organized a working lunch with His Excellency, the President of the Republic of Kosovo, Dr. Fatmir Sejdiu, and representatives of member companies of AmCham.

After the Presidents arrival, the Executive Director of Amcham Kosovo, Lekë Musa, welcomed the President and adressed to the members with a spontaneous sentence, by saying that AmCham will have the support of the President in important issues,

President of the Republic of Kosovo meets with AmCham Members

such as further reform of the Tax Administration, and also the reduction of some bureaucratic procedures that prohibitted the economic development of Kosovo.

Afterwards,the President of Kosovo, Dr. Fatmir Sejdiu, referred to the members of AmCham Kosovo, where among other issues, he stressed that “it is a debt of Kosovo’s institutions to further build the legislative corpus, and for the law to be implemented from all the links of the state powers, especially those of economy and rule of law, in building the genuine strategy of the place’s economic development, and approaching the implementation of all state’s politics in a common framework”. Dr. Sejdiu also added that a good business cannot be made if bad phenomena take place, and if there is no place for a right and lokall competition.

After the President speech, AmCham members had the opportunity to raise questions to the President, according to their worries and concerns. This discussion was evaluated as very useful by AmCham Kosovo members themselves, but also by the President.

THE HORIZON

13

NEWCO FERRONIKELI COMPLEX L.L.C Ferronikeli Street nn, 13000 Gllogoc, Republic of Kosova Phone: + 381 (0)38 585 000, Fax: + 381 (0) 38 585 109

N

ewco Ferronikeli is a part of Cunico Resources N.V, a multinational mining and metals company. Cunico Resources N.V is the largest manufacturer of ferronickel in Europe with production plants in FYR Macedonia and Kosovo.

The total investment in Kosovo plant exceeds EUR 100 million. NewCo Ferronikeli is the most successful story of the privatization in Kosovo and plays a crucial role in Kosovo’s economy. With the installation of the Venturi System – the most advanced system for the gas cleaning of Electrical Furnaces – NewCo Ferronikeli is setting a benchmark for all other companies in this field.

NewCo Ferronikeli represents more than 50% of Kosovo’s export. The product is exported to the European Union and Asia.

14

THE HORIZON

AmCham Kosovo

Business Luncheon with Minister of Finance and Tax Director The American Chamber of Commerce in Kosovo on April 16, 2010, organized a business luncheon with Minister of Finance and Economy, Ahmet Shala, and Kosovo Tax Administration General Director, Behxhet Haliti. Present at the luncheon were also representatives from the US Embassy in Prishtina and members of AmCham Kosovo.

Both, Minister Shala and TAK Director Haliti voiced support to the business community in Kosovo.

They assured members of AmCham Kosovo that business associations will always be included in the processes that impacts doing business in Kosovo. AmCham members had the opportunity of discussing on issues they face and the possibilities of overcoming them.

Privatization

in Kosovo as a key reform in

2010

O

n April 20th, AmCham organized a Forum on Privatization, which was held at the American University in Kosovo.

In this forum, AmCham presented the results of the study carried out with the business community regarding the privatization process.

The presentation was divided in two parts. During the first part, the results of the study were presented.

Based on the conclusions issued from the answers of the business community, AmCham recommends the acceleration of the privatization process, the privatization process to be made on absolute basis, excluding the possibility for the state to rule over them, and also the possibilities for corruption. AmCham argues its

support on privatization also for the achievement of social, political, economical, and fiscal objectives.

The second part of the report, realized with the help of the American Chamber of Commerce in Moldavia and the Agency of Investments in Estonia, brought the experience of the privatization process in two postcommunist states, Estonia and Moldavia, together with the comparison of data between these two states, which reflect their economical and social condition.

Having in mind the ambitious plan of the privatization implemented from the Privatization Agency in Estonia, AmCham recommends for Kosovo to lead the path of Estonia, which today is considered as one of the places with the highest level of GDP. After the presentation from the Team Project of AmCham, the panel consisting of four members presented their opinion on the privatization process.

Members of this panel were: Douglass Todd - expert from USAID, Berat Rukiqi - General Secretary in the Chamber of Commerce of Kosovo, Lorik Fejzullahu – Head of Unit in Kosovo Partnership (the Ministry of Economy and Finance), and Shani Mullabazi - General Manager of the winery Stonecastle, which is known as one of the successful stories of privatization in Kosovo.

A discussion took place right after the presentations, regarding the results of the study and the overall privatization process in Kosovo, where the majority of participants supported the privatization of Public Enterprises.

THE HORIZON

15

The Investment Promotion Agency of Kosovo (IPAK) The Investment Promotion Agency of Kosovo (IPAK) is the primary Government Institution supporting foreign investment in the Republic of Kosovo. IPAK support the economic development of Kosovo through foreign direct investments, which will have direct impact in reducing unemployment and increasing social welfare of our citizens. IPAK provides a wide range of support programmes to help international businesses achieve their relocation objectives and the Agency is also charged with the promotion of exports.

In addition, IPAK will:

• Research and identify good opportunities and recommend actions with the intention being to create a favorable business environment in Kosovo.

• Take actions in order for Kosovo to be perceived as an attractive location for investments through promotional materials and organization of fairs, forums, and seminars with investors.

• Support initiatives whose mission is to improve the business environment through market studies, sector studies, research and participation in governmental and non governmental working groups.

• Offer information to investors, establish business contacts and offer advisory services with the intention being to facilitate investment decision making.

• Undertake initiatives to support domestic producers and export potential in foreign markets through research and identification of the potential for export.

• Organize buy and sell missions within and outside of the country, support fairs and B2B programmes, support exporting companies, business associations and disseminate information about export potential.

• Engage in other activities in the field of supporting investments and exports in accordance with the Government’s development plan.

• IPAK is at your service to offer you all the information you need through all phases of investment: before investment, investment, and after investment.

Our Message:

• We will provide you with comprehensive advice and support from professionals who combine their local knowledge with an understanding of international business.

• We will help you to identify suitable property options to accommodate your operation in Kosovo.

• We will help you to obtain all necessary approvals from National and Municipal Authorities in Kosovo to enable a fast start-up of your facility in the country.

• Should you wish to partner with a local Kosovo company, we will provide you with introductions to potentially suitable partners with whom you can collaborate.

• We will provide you with an efficient and professional service and a timely response to your questions.

• We fully respect your need for confidentiality and any commercially sensitive information you provide will be treated with the strictest confidence by our staff.

For further information please contact: Investment Promotion Agency of Kosovo Rr. Muharrem Fejza, Lagja e Spitalit 10 000 Prishtina, Republic of Kosovo Tel: +381 38 200 36 542 Web: www.invest-ks.org Email: info@invest-ks.org

16

THE HORIZON

AmCham Kosovo

Upcoming AmCham Events AmCham organizes Trade Enhancement Mission to the United States

T

his spring AmCham in cooperation with the US Chamber of Commerce/Trade Roots and with the support of the US Embassy Prishtina, the USAID/Kosovo Private Enterprise Program (KPEP), and the Investment Promotion Agency of Kosovo (IPAK), is organizing a Trade Enhancement Mission to the United States. The mission will take place from May 17–23, 2010 in Washington D.C. and Chicago.

The mission will be comprised of two parts. In the first part, a delegation of seventeen participants will attend America’s Small Business Summit with over 400 U.S. companies present. Additionally, there will be business briefings in Washington D.C. and the Albanian American Chamber of Commerce (AACC) will be hosting a business lunch with the delegation. In addition, there will be B2B meetings with corresponding industries.

In the second part of the mission, the delegation will travel to Chicago and start off the visit with a tour of the Chicago Merchandise Mart. There will also be briefings on legal and regulatory issues. A number of business meeting will also take place in Chicago, among which, the delegation will also meet with the Mayor of Knoxville County and a delegation of businesses from the state of Tennessee. Last but certainly not least, the delegation will attend one of the world’s biggest events in the hotel and restaurant industry, the National Restaurant Association Show. This is the largest international foodservice marketplace. More than 1,800 exhibiting companies will showcase products and services from 900+ product categories covering restaurant, hotel and retail needs. Over 71,000 professionals from more than 100 countries will gather at the NRA Show 2010.

Check your email for upcoming AmCham events!

THE HORIZON

17

THE TIME FOR ARBITRATION IN

KOSOVO IS NOW

ADR is the commonly used acronym for the umbrella term “alternative dispute resolution.” ADR encompasses a broad spectrum of out-of-court conflict management and dispute resolution processes, ranging from direct negotiation between parties to mediation and arbitration. While arbitration is a wellestablished method for solving business disputes, the use of mediation has grown dramatically in recent decades. Nonetheless, this article will focus on commercial arbitration.

18

THE HORIZON

A

rbitration is an adjudicatory dispute resolution process in which one or more neutral persons (“arbitrators”) issue a judgment on the merits of a case after the presentation of proof and arguments by the disputants.

Arbitration is similar to court adjudication in as much as the arbitrator, like a judge, issues a binding decision.

However, arbitration is a less formal process that offers several advantages over court adjudication—it is less timely and less expensive; it is confidential; and parties may choose arbitrators with knowledge and experience in the subject matter of the dispute.

Kosovo is on the brink of developing an efficient and

AmCham Kosovo

effective arbitration system. The Arbitration Law that was passed in 2008 establishes a complete legal framework for commercial arbitration that is in line with international best practices—it is based on the United Nations Mission on International Trade (UNCITRAL) Model Law on International Commercial Arbitration. The Arbitration Law covers both international and domestic disputes.

Further, AmCham is poised to sponsor arbitration by organizing arbitration panels and administering the arbitration procedure.

What are the next steps for development of arbitration in Kosovo? Institutional sponsors must: • Develop standards for the selection and training of arbitrators.

• Develop rules of procedure and standard arbitration clauses.

• Adopt a competitive fee schedule.

• Develop the capacity to administer arbitrations.

• Inform potential users of the benefits of arbitration.

Selection and Training of Arbitrators. Selection of the appropriate neutral(s) is generally recognized as the single most important issue to the outcome of ADR. The most important characteristics are impartiality, independence, efficiency and professional experience. Sponsoring institutions must have a roster of neutrals with experience that is relevant to disputes that will be brought to the institution—for example, a construction dispute would benefit from someone with experience in construction. In addition, to appeal to both international and domestic users, consideration should be given to having

one roster of arbitrators for domestic disputes and another for international disputes. The latter might include international arbitrators. In addition, the neutrals must also have a thorough understanding of the arbitration procedure— too often, lawyers that serve as arbitrators, fall back on familiar local court procedures rather than using specialized, internationally accepted practices. There are several respected international arbitration institutions, such as the International Center for Dispute Resolution (the THE HORIZON

19

international branch of the American Arbitration Assn.) and the Chartered Institute of Certified Arbitrators in the UK that organize training for arbitrators.

In addition, even for parties located outside of Kosovo, expenses of attending an arbitration proceeding in Kosovo would be less than in Western Europe.

Procedural Rules and Standard Arbitration Clauses.

Arbitration must be based on a valid arbitration agreement. Although parties could agree to arbitrate after a dispute arises, as a practical matter, parties should include an alternative dispute resolution clause in their contracts to secure the commitment of all parties to binding arbitration before a dispute arises. A standard arbitration clause could provide for arbitration at AmCham, specify the number of arbitrators, and other matters.

Fees. Costs of arbitration include the administrative fee of the sponsoring institution, the arbitrator’s fee, and other out-ofpocket expenses (attorneys, experts and witnesses, travel, document production).

Administrative fees are typically a percentage of the value of the dispute, while arbitrator’s fees may be determined in the same way or based on an hourly fee.

While the sponsoring institution is unlikely to be selected solely on the basis of cost, a Kosovo institution will have to be competitive.

Case Administration. The institution must have the infrastructure to administer arbitration. Institutions play a critical role in the initial stages of the procedure—it must process the request for arbitration; notify the other party; and supervise the composition of the arbitral tribunal. The institution will also monitor the proceeding to assure that it is running smoothly and process payments to arbitrators. Obviously the resources dedicated to the administrative function will depend on the case load.

Challenges. It must be recognized that there are obstacles to developing arbitration in Kosovo. The courts present one of the main problems. While the role of the courts is very limited by the Arbitration Law, the arbitral tribunal may ask for the court’s assistance in matters such as obtaining information or witnesses or a party may request the court to review the arbitral tribunal’s decision on the validity of the arbitration agreement or to set aside an award under limited conditions, the reputation of the Kosovo courts for inefficiency and corruption may be a deterrent in the short-term. A second problem is conflict of laws—a legislative amendment to eliminate the conflict between the Arbitration Chapter in the Law on Contested Procedures and the Arbitration Law is needed.

Outreach. Modern methods of alternative dispute resolution are relatively unfamiliar concepts in Kosovo. Institutional sponsors will need to devote resources to marketing their services and presenting the advantages of arbitration in Kosovo rather than at an established international or regional arbitration body. For example, as a practical matter, arbitration in Kosovo may be more convenient because parties, attorneys, witnesses and experts might have difficulty traveling to another jurisdiction to participate in an arbitration proceeding. For parties in Kosovo, it would also eliminate the expenses of travel to another location.

20

THE HORIZON

Conclusion. It is time for Kosovo to implement the Arbitration Law and provide businesses with an efficient and effective method for resolving disputes.

Although no arbitral tribunal in Kosovo can be expected to compete with established international and regional tribunals at this time, institutions such as AmCham are well-positioned to offer the business community in Kosovo an alternative to the court system. In that regard, the SEAD Program is working with several institutions in Kosovo to promote the use alternative dispute resolution.

Marilyn Zelin, Senior Legal Advisor—Alternative Dispute Resolution, SEAD Program in Kosovo.

The USAID “Systems for Enforcing Agreements and Decisions” (SEAD) Program in Kosovo seeks to improve the rule of law foundational structures that provide the basis for increased foreign and domestic economic investment and generally lead to an improved business-friendly environment.

DISCLAIMER The author’s views expressed in this article do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

Tel: 0290 / 385 500 Fax: 0290 / 385 510 www.sharrcem.com

AmCham Kosovo

THE HORIZON

21

Focus on AmCham Patron Members Coca-Cola System The Coca-Cola Company and the Coca-Cola Hellenic Bottling Company comprise the integrated Coca-Cola System while being the world leader in the market of non-alcoholic beverages.

More than 120 years ago, The CocaCola Company produced only one type of beverage. Today, Coca-Cola is a world company that operates in more than 200 countries, offers about 3,000 different products and is the biggest

22

THE HORIZON

producer of non-alcoholic beverages in the world. Its wide, global range of products contains all types of nonalcoholic beverages: sparkling soft drinks, fruit juices, sports and energy drinks, waters, as well as coffees and teas, to fulfill every wish and need of a consumer. A wide portfolio of products contains more than 500 sparkling and still brands at a rate of nearly 1.6 billion servings a day. Each product is of the highest quality and adapted to the needs, wishes and tastes of consumers. Out of the five most successful soft drinks in the world, four belong to

the Coca-Cola family: Coca-Cola, Diet Coke/Coke light, Sprite and Fanta.

Since the production of its first bottle of Coca-Cola in 1969, Hellenic Bottling Company has become one of the key bottlers of the Coca-Cola Company in the world today owing to its expanding capacity, winning of new markets and adoption of new business trends.

Employing over 44,000 people, Coca-Cola Hellenic supplies soft drinks to more than 540 million consumers across 28 countries, covering a wide geographical range from Western Europe to Eastern Russia, Estonia to Nigeria. Twenty-five of these countries are in Europe, including 15 in the European Union.

Close connection between the two companies is seen in their mutually shared values, commitment to consumers, close cooperation concerning market investments and presentation of Coca-Cola products through a perfectly developed sales network, as well as powerful advertising reaching consumers via recognizable marketing activity.

To achieve its business strategy Coca-Cola System respects human rights and implements equal opportunity policies, attracting, motivating and

AmCham Kosovo

keeping talented employees in a safe, healthy, positive and inclusive workplace, free of discrimination, in which they are rewarded appropriately. Employees across the wide international network bring to the system a variety of intellectual, professional, ethnic and cultural perspectives.

Tax Administration, as well as Local and Central Government. The CocaCola Hellenic Kosovo received “The Most Meticulous And Large Tax Payer In Kosovo” award from the Kosovo Tax Administration and the American Chamber of Commerce in both 2005 and 2006.

Coca-Cola System works hard in order to satisfy the needs of business partners – suppliers, wholesalers and retailers, since they distribute the products to consumers, while constantly expanding the offer in order to suit specific needs and tastes of consumers.

With a wide distribution network the Coca-Cola portfolio is present in more than 80% of the outlet universe that provides a clear leading position within the soft drinks market.

Coca - Cola Hellenic Kosovo The Coca-Cola Hellenic Kosovo was established in June 2003. In the beginning, all Coca-Cola Hellenic Kosovo employees were few but this changed rapidly.

With the investments of over EUR 4 million mainly in marketing equipment and warehouse Coca-Cola Hellenic Kosovo was consolidated as a leader in the Kosovo marketplace, as it maintained the highest standards of quality in services, processes and relationships.

The Coca- Cola Hellenic Kosovo has been investing in market development, consumer care, training and development of its employees. Networking with the owners of small and big outlets in Kosovo, governmental institutions and media played an important role in building the Company’s reputation.

The Coca-Cola Hellenic Kosovo takes pride on being the first company to start a transparent accounting application of its [non-classified] company records, which has led to relationships that reflect and demonstrate mutual respect with the Customs Authority,

Dedication to the market The Coca-Cola Hellenic Kosovo is indisputably leader of the soft drinks marketplace with more than 200 business partners and on average double digit annual growth since 2006. The company premises are situated on the main road of Prishtina – Skopje route.

The Coca-Cola Kosovo soft drinks portfolio includes: Coca-Cola, Coca Cola Zero, Fanta Orange, Fanta Exotic, Fanta Shokata, Sprite, Schweppes Bitter Lemon, Schweppes Tonic Water In addition, the Coca-Cola Hellenic Kosovo distributes Rosa Water and Next Juices.

Every day, more than a billion people all over the world refresh themselves with Coca-Cola products. They do so because they have confidence in their quality. The quality and safety of the Coca Cola beverages is ensured through the Coca Cola Quality System, which is continuously reviewed so as to make sure it meets the most stringent and up-to-date global requirements related to food safety, as well as quality management methods, industry best practices and marketplace conditions, which in turn is in full compliance with all responsibility of the company. ISO 14001 and ISO 9001 are only two of the myriad of standards, compliance to which is rigidly monitored.

Social Responsibility The Coca-Cola Hellenic Kosovo contributes to economic success through its day-to-day business, by providing jobs in its own operations, as well as jobs in businesses it touches along

the way. This is called the multiplier effect, where not only those directly employed by the business are positively affected, but also the businesses that do business with it are recreated and expanded. Establishing a long-term cooperation with SOS Village, as well as a voluntary engagement in sports, health and social awareness programs is only one of many indicators of its commitment to contributing to the well-being, needs and aspirations of the Kosovo local community.

Coca-Cola Hellenic employs 57 local staff members in Kosovo. Coca-Cola Hellenic dedication to enhancing the leadership skills of its staff members includes training all of its employees and assessment at their workplace.

Local expertise and related management skills are viewed as an important company asset and professional and personal training and development of the local staff members have become a priority of the Company’s family in every country it operates.

The Coca-Cola Hellenic Kosovo has a presence in people’s lives not only as a simple moment of refreshment, but also as an employer, a business partner, a part of the community and a global citizen. We highly value these relationships and the trust and responsibility that come with them. That’s why every day the Coca-Cola Hellenic Kosovo strives to ensure that its actions in the workplace make a positive contribution to the marketplace, the environment and the communities.

The company’s commitment to social responsibility has been laid down in the Code of business conduct from which these rules are further translated into company’s policies and standards. Objectives of the socially responsible conduct are part of the business objectives of our company, as well as part of the objectives of all our managers and employees.

“Everything we do should enjoy the challenge of being done in a perfect manner– performed better, faster and more effectively and with our team of people being the key to it” are the words of our Managing Director Mr. Theodossis Kassapantoniou.

THE HORIZON

23

Latest News on Business Environment in Kosovo Law for Personal Income Tax Law for Corporate Income Tax, and Law for the Value Added Tax. •The Law for Personal Income Tax No. 03/L-161, was approved by the Parliament of the Republic of Kosovo on December 29, 2009, and enacted by the President of the Republic of Kosovo, by decree No. DL-001-2010, on January 8, 2010.

•The Law for Corporate Income Tax No. 03/L-162, was approved by the Parliament of the Republic of Kosovo on December 29, 2009, and enacted by the President of the Republic of Kosovo, by decree No. DL-003-2010, on January 8, 2010.

•The Law for the Value Added Tax No. 03/L-146, was approved by the Parliament of the Republic of Kosovo on December 29, 2009, and enacted by the President of the Republic of Kosovo, by decree No. DL-002-2010, on January 8, 2010.

24

THE HORIZON

AmCham would like to inform all its membership of the new laws that have been announced by the Tax Administration of Kosovo (TAK), and which have been approved by the Parliament of the Republic of Kosovo and enacted by the President.

•The Law for Personal Income Tax and Law for Corporate Income Tax, were published in the Official Gazette No. 64 on February 1, 2010, and therefore, based on the provisions of the Constitution of the Republic of Kosovo, these two laws are applicable from February 16, 2010, while the Law for the Value Added Tax, was published in the Official Gazette No. 65 on February 5, 2010, and as such is applicable from February 21, 2010.

•The legal effects for all three laws will be from January 1, 2010.

•For detailed information on these laws, visit the TAK website www.atk-ks.org

AmCham Kosovo

AmCham welcomes new members Marigona Residence UPGRADED TO PATRON MEMBER

MERIDIAN Corporation UPGRADED TO PATRON MEMBER

Marigona Residence is one of the largest and most modern residential neighborhood projects undertaken in Kosovo and the region. It is a neighborhood with a modern concept of living and it covers an area of 32 hectares. It is located near the Prishtina-Skopje highway, in the 8th kilometer southwest of Prishtina, the capital of Kosovo.

MERIDIAN Corporation is one of the largest distributing companies of food, beverages, organic fresh and frozen products in Kosovo. The vertically integrated organization includes:

Marigona Residence offers an advanced security system, with a sophisticated technology, with a very modern architecture, functional, attractive and aesthetic. All the apartments at Marigona Residence are built in that way that maximizes the utilization of the sun, and that facilities do not obstruct one another. Using the most modern infrastructure in Kosova, Marigona Residence has shown high deliberation toward environment presentation.

Green spaces cover Marigona Residence with more than 40% of the area provided for parks, game spaces for children and adults, as well as cultural, social and sports activities. One of the features of Marigona Residence is that it offers a sewage system divided for waste water and atmospheric rainfall, boulevards that cover areas of 17 meters, and also sufficient parking on-and-underground. The entire neighborhood is covered with electricity installations, internet, telephone and cable TV, as well as signaling and street lightning.

Marigona Residence, with 150 individual houses built in 5 different models, from houses for new couples to luxury residence – villas – and about 1,000 apartments, will be the first neighborhood in Kosova that offers high quality standards.

Marigona Residence will offer also other social, cultural, commercial and recreational facilities in order to make the living more enjoyable.

Ibrahimaga. Osmani. Tigani (I.O.T) SMALL BUSINESS MEMBER The I.O.T. Law Firm is the largest law firm in Kosovo with a strong focus on commercial, investment, and civil matters. Its expertise and area of practice covers Corporate, Mergers&Acquisitions, Real Estate, Contract and Tort law, Tax Law, Labor Law, Litigation and Arbitration, Privatization and Construction Law including EU- and Competition Law and other general civil matters.

• The largest warehouse capacity located at Meridian Corporation Headquarter in Prishtina, • Regional Distribution Centers in several parts of Kosovo, • Direct Sales Teams covering different market segments, • Transport systems serving the entire company • Dry, refrigerated and frozen warehousing capacities Meridian serves a wide range of customers, including: independent and mass market retail chains, supermarkets, drugstores, and HO.RE.CA segment (Hotels, Restaurants, Cafeteria). With access to over 4000 vendors, we deliver the most well-known quality products with quality services.

Many of our clients know us by the companies and the product brands that we have launched and promoted in Kosovo market.

Together with all our brands and our business services we are now known as MERIDIAN Corporation. We provide healthy and qualitative foods, beverages, meat products and other dairy while promoting environmental responsibility and the health and well-being of our communities.

I.O.T. is a full service law firm dedicated to professional excellence, personal and high quality support and effective solutionoriented advocacy. I.O.T. operates through its main office in Prishtina, Kosovo. As the largest law firm in Kosovo, I.O.T. possesses all necessary resources to prepare, structure and submit any transaction and legal action to the needs of local and international clients.

The attorneys of the firm are are involved in a number of business transactions, real property diputes, and other commercial and civil related legal proceedings and have managed to solve complex legal issues.

I.O.T consists of a tema of five lawyers with vast experience and an Associate.

THE HORIZON

25

Jaha Company SMALL BUSINESS MEMBER

Jaha

Jaha Company was founded in 2000 in Rahovec. Jaha is one of the leading tile production companies in Kosovo. Jaha produces concrete tiles with high quality Slovenian equipment.

Jaha distributes tiles throughout Kosovo and soon plans to start exporting them. The activity of this company also extends to hotel, restaurants, and gas stations. Jaha is also the owner of Restaurant and Hotel Ylli in Rahovec.

Company

Pallaska& Associates SMALL BUSINESS MEMBER

AVC – Group SMALL BUSINESS MEMBER

Pallaska& Associates is a legal consulting firm which specializes in commercial law, intellectual property law and regulatory public law. The firm serves a, carefully selected, clientele of local and international companies operating in Kosovo. This clientele also includes world-renowned law firms that represent the interests of their clients in Kosovo.

Pallaska& Associates, through its professional counsel, enables businesses to take advantage of new business opportunities by developing a robust legal and contractual structure for ventures, while allowing maintaining, at the same time, a level of flexibility that responds to the ever evolving needs of sectors.

RECURA Financials BUSINESS MEMBER RECURA Financials is a Kosovan based company providing services in the financial sector with a special focus on Kosovo, Albania and Macedonia. RECURA provides a wide range of services from corporate finance to portfolio and wealth management services by utilizing the most up-to-date internationally recognized financial and econometric models as well as advanced proprietary techniques. For our international clients, RECURA aims to be a one-stop shop, where all accessory needs of our clients including legal, logistical and translation services are met.

Despite the wide range of services, RECURA Financials is a small team of dedicated business people providing a service with a personal touch. With close contacts in the business community as well as the government, RECURA is an ideal partner in any investment endeavor in the Balkan region.

26

THE HORIZON

Siguria BUSINESS MEMBER Siguria insurance company was established on June 5, 2000 as a limited liability company. Initially the company started offering mandatory insurance and gradually brought innovation in the market through introducing voluntary insurance. The company offers diverse insurance services ranging from compulsory insurance, auto insurance, and personal insurance. Today, Siguria covers the whole of Kosovo and plans to expand outside of Kosovo. Siguria has a total of 80 employees and about 150 agents operating under this insurance company.

The AVC Group has become a leading company in the territory of Slovenia, Croatia, Serbia, Bosnia and Hercegovina, Kosovo, Macedonia and New Zealand for project making, equipment supply and system integration with a high level of support and service of the professional audio, video, lighting, measuring and control equipment.

As a result of constant growth the company expanded to a group of companies which are guided by mutual ideas. The power of the group is in mutual share of resources and “know how”, logistics and achievement of good relations with the partners, which the group has as such.

The AVC GROUP has its offices in Salzburg (Austria), Ljubljana (Slovenia), Zagreb (Croatia), Belgrade (Serbia), Sarajevo (Bosnia and Hercegovina), Prishtina (Kosovo), Skopje (Macedonia), Auckland (New Zealand) and Sydney (Australia).

Today AVC Group became a brand which represents the name for joint services, products and distribution, in a manner of work organization according to a principle of system integration (solution provider) the company established with attention of high quality services related to professional audio video equipment.

The AVC Group represents and distributes about 40 leading manufacturers in domain of professional audio video equipment, among which well known and respected companies such as Sony Professional Solutions, Harman Group, Canon, Sachtler, DIS, and Harris.

Our successful business results are evidenced by the performed projects in the following vertical markets: • Broadcast, Production and Telecommunications • Culture, Entertainment and Religion • Education, Sport and Health • Business • Catering and Tourism • Government, Public Institutions and Transport • Residential

AmCham Kosovo

Technetix Balkan L.L.C SMALL BUSINESS MEMBER Technetix Balkan L.L.C is sister company with Technetix Group Ltd based in Burgess Hill UK. Technetix Group, Ltd. engages in the manufacture and distribution of broadband, telecommunications, and cable television equipment. It offers various technical components, consumables, and tooling, including isolators, splitters, housing and cable management products, filters and equalizers, set top box accessories, data and telephony products, test equipment, hospitality components, and security solutions, as well as connectors, adaptors, and fly leads. The company also supplies VMI equipment. In addition, it provides business process outsourcing such as procurement, inventory management, and logistics services, as well as staffing services for implementing and managing supply chain business to the operators of networks. The additional offices of the company are based in the United States, Germany, Norway, Netherlands, Belgium, Poland, Austria, Denmark, France, Hong Kong and Spain.

Publisher American Chamber of Commerce in Kosovo St. Gustav Majer, No. 6 10000 Prishtina, Kosova Tel: +381 38 246 012 +381 38 248 012 e-mail: info@amchamksv.org www.amchamksv.org

Technetix Balkan L.L.C is operating in Kosovo since October 25th, 2006, and covers the regional market from Pristina in countries such as: Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Macedonia, Albania, Montenegro and Bulgaria .

Center for Entrepreneurship and Executive Development SMALL BUSINESS MEMBER CEED is a community of high expectation entrepreneurs providing the know-how and networks they need to drive their business forward. CEED is for entrepreneurs who want sophisticated, yet practical training and connections to finance and new markets. CEED offers an exclusive program providing relevant information, an interactive and creative environment, access to finance and new markets, and quick impact on clients. Program is led by successful entrepreneurs or experts with day to day experiences. CEED activities include: • Networking Learning Events to broaden perspective and provide business connections.

• Mentorship Program, and • Networking Events Kosovo is part of an international network operating in Southeastern Europe, with regional offices in Bulgaria, Macedonia, Slovenia, Poland, Romania, Montenegro and Serbia.

THE HORIZON

27

AMERICAN CHAMBER OF COMMERCE IN KOSOVO

ODA EKONOMIKE AMERIKANE NË KOSOVË | AMERIČKA PRIVREDNA KOMORA NA KOSOVU

The American Chamber of Commerce in Kosovo (AmCham Kosovo) is a leading business association in Kosovo officially accredited by the US Chamber of Commerce. Initially established in 2004, AmCham Kosovo has been fully operative since 2006. It is a business association through which business leaders cooperate to strengthen the country’s business climate and economic growth towards prosperity and Euro Atlantic integration, and an independent organization that influences the public agenda in Kosovo to promote economic opportunities and business interests.

The main goals and objectives of AmCham Kosovo are: • Awareness about good international business practices and values • Strong advocate for pro business and investment policies • Foster partnership between US and Kosovo companies • Foster spirit of entrepreneurship • Encourage youth leadership • Education workforce development The AmCham Kosovo membership is quite diverse in terms of the sectors it represents. Our member companies come from sectors such as: Banking, Insurance, Metal processing, Construction, Energy, Information Technology, Consulting, Education (Universities and Colleges), Law Firms, Audit and Revision Firms, Official distributors of Brand names, and Food & Beverages processing.

We represent more than a hundred medium and large businesses, which jointly employ over 10,000 Kosovar employees with more than a 100 million Euro annual turnover.

Services offered at AmCham fall under these categories: • Networking • Lobbying • Business Liaison • Investment promotion • Start-up business assistance • The Horizon- quarterly newsletter AmCham Daily Digest- daily media monitoring and information regarding the business environment in Kosovo Since its inception, AmCham Kosovo has been actively involved in trade investment conferences, trade enhancement visits to the United States, investment promotion activities, lobbying for a better and mixer fiscal policy system in Kosovo, promotion of better business practices and values for the business community, employment generation through bi annual Career Fairs for students as well as other trainings and seminars in business communication and consulting.

AmCham Kosovo is also a very strong advocate of Intellectual Property Rights in Kosovo, and has conducted projects and published work on this topic. In addition, through its very active Tax Committee, AmCham was the driving force behind the successful reduction of the corporate and income tax in Kosovo.

AmCham Kosovo actively organizes networking events such as direct meetings and working lunches with U.S. Embassy and luncheons with public figures and decision makers. AmCham Kosovo is the first organization in Kosovo to annually award the biggest and most successful taxpayers and exporters in Kosovo. Moreover, AmCham has organized Charity events with the business community for the Pediatric Clinic in Prishtina. In addition, AmCham organized the Business Ethics Week which aimed to introduce ethical and business practices to the Kosovo business community and to lobby with policy makers and representatives on enacting certain laws and regulations for the good of the business community. Last but not least, AmCham is the first organization in Kosovo to tackle the topic of capital markets and the possibility of creating one in Kosovo.

28

THE HORIZON

AmCham Kosovo

THE HORIZON

29

30

THE HORIZON