The
Horizon Magazine of the American Chamber of Commerce in Kosovo • 14th Edition
Liquidation The privatization process and challenges ahead
Treasury bills
A new investment opportunity will be coming to Kosovo
Preparing for arbitration THE HORIZON
American Chamber of Commerce in Kosovo Fehmi Agani Street, No.36/3 10000 Prishtina, Republic of Kosovo
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THE HORIZON
Edition 14
Patron Members
Board of Directors of the American Chamber of Commerce in Kosovo President: Mr. Christopher Hall, American University in Kosovo (AUK) Vice President: Mr. Erolld Belegu, Marigona Residence Treasurer: Ms. Ardiana Bunjaku, Society of Certified Accountants and Auditors of Kosovo (SCAAK) Secretary General: Mr. Dastid Pallaska, Pallaska and Associates Members: Mr. Afrim Maloku, Deloitte Kosovo Ms. Eriola Bibolli, ProCredit Bank Kosovo Mr. Denis Purdin, Atlas Electric Kosovo Mr. Gëzim Pula, 3CIS Mr. Luan Dalipi, MDA Ms. Maury Ray Bridges, Booz Allen Hamilton Mr. Valon Lluka, Banka Ekonomike Executive Director: Mr. Lekë Musa
The Horizon is the official magazine of the American Chamber of Commerce in Kosovo (AmCham). Every publication of the Horizon contains a different theme with focus on economic perspectives in Kosovo. The Horizon is distributed to a broad audience including the AmCham membership, decision makers, diplomatic representations in Kosovo, the donor community, the US Chamber of Commerce in Washington D.C., and to AmChams in Europe. Published by: American Chamber of Commerce in Kosovo Fehmi Agani St. No. 36/3 Prishtinë, 10000 Republic of Kosovo +381 38 246 012 www.amchamksv.org info@amchamksv.org Editor-in-Chief: Ms. Zana Haxha Assistants: Mr. Gazmend Vukaj Ms. Rrona Randobrava Mr. Visar Hapçiu
A GREAT CORPORATE GIFT for your consultants, investors, clients or suppliers. The complete English language travel guide to Kosovo. 2nd edition (Aug 2010) – Just out! 336 pages, 20 maps and 16 pages of colour photos. Gheg and Serbian glossaries. Phone numbers and opening hours of more than 200 restaurants and more than 100 hotels. Available in Kosovo for Euro 20 or 10% discount for orders of 15 or more copies. For Kosovo delivery call 044 555 439; 044151180; 044233028; or email gailwarrander@hotmail.com (with any details for a fiscal invoice).
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Patron Members
Members 3CIS J.S.C • AGANI Ltd. • Albad • Alcatel Lucent • Arbër Sherifi • ARKING • ASGETO • Ambers • ATLAS Electric Company.INC • AUK • AVC • Banka Ekonomike • Bechtel- ENKA • BelleAir • Boga &Associates • BONUS • Booz Allen Hamilton Inc, Kosovo Branch • British Airways • BU &Partners • Buçaj • Capital Ring • Ceed Kosovo • Coca Cola HBC Kosovo • Compakt Group • CONIN • Crimson Finance Fund • DELFINI LTD • Deloitte • Devolli Company • Diamant Rrahmani • Dukagjini Group • ECOTRADE • ELTING • Emerson Moore Drilling Ltd • EVROPA TRADE • Fondi Slloveno-Kosovar i Pensioneve • Gail Warrander • Gllareva • Gorenje Niti Tiki • Grant Thornton • Ilir Kosova • INFORMATIKA Computers • Interlex Associates • Avokatura IOT • IPKO Telecommunications • Jaha Com • KAEF • Kalo &Associates Kosovë • KONET • Kosova Motors • Kosova Steel • Kosovo Resource Company Lydian International • KPMG • Linda Shala • L.T.I. EXPIK • Marigona Residence • Managament and Development Associates • Meridian Corporation • Microsoft • Mimoza Kusari Lila • New Kosovo Energy • NewCo AROMATIK • NewCo Ferronikeli Complex • NLB Prishtina • Ogilvy Kosova • ONIHERBA • Pallaska &Associates • Patroni • Pestova • PharmaSwiss SA • Posta dhe Telekomunikacioni i Kosovës • Price Waterhouse Coopers • Pro Credit Bank • PRONET • PR SOLUTIONS • Raiffeisen Bank • Recura Financials • RIMA Eng. • Safet Dorambari • SCAAK • Scan Color &Jysk • Semitronix Center • Sharr Beteiligungs GmbH • SIGAL • SIGURIA • SOLE KOSOVA • SPORT IN • STONE CASTLE • Technetix • Trokit • UniProject • Valvis Company • Western Union • International Real Estate Appraisal Services • USAID Business Enabling Environment Program in Kosovo-BEEP 4
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Design: XHAD STUDIO
AmCham Kosovo
Contents Note from the Editor....................................................................................................................7 2010 at AmCham..........................................................................................................................8 Preparing for Arbitration......................................................................................................9-11 Kosovo Economy: small, open and growing.......................................................................... 12 Liquidation............................................................................................................................13-14 Treasury Bills.............................................................................................................................. 15 Corporate Social Responsibility ensures business sustainability and easier access in the EU and global markets.....................................16-17 Focus on Dukagjini Group...................................................................................................18-21 Kosovo in the Eyes of Foreign Investors................................................................................. 22 Late Payments............................................................................................................................ 22 Privatization............................................................................................................................... 22 2010 and 2011 Kosovo Legislative Programme.................................................................... 23 Late Payments/Debt Collection..........................................................................................24-25 Privatization is a necessity....................................................................................................... 25 The Potential Delay in the Implementation of the New Law on Value Added Tax................................................................................................................... 26 7th Annual Job Fair................................................................................................................... 27 Trade Enhancement Mission in the United States................................................................ 27 Corporate Social Responsibility and Corporate Governance.............................................. 28 Best Taxpayers Award............................................................................................................... 28 Turning Disability into Productivity....................................................................................... 28 Business visit in Greece............................................................................................................. 29 Pension Funds and Capital Market Development................................................................ 29 Corporate Social Responsibility principles and the Labour Dimension of CSR................29 Trade Enhancement Mission in the Netherlands.................................................................. 30 Lydian International/ Kosovo Resource Company Business Club...................................... 30 Kosovo in the Eyes of Foreign Investors................................................................................. 30 MOU between AmCham and the USAID Kosovo Systems for Enforcing Agreements and Decisions...................................................................................................... 33 ADR in Kosovo: Resolving Business Disputes: A new Approach......................................... 33 New Year’s Charity Event.......................................................................................................... 34 New Members.......................................................................................................................35-37 AmCham 2010 in pictures ................................................................................................38-39
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Dear members and friends, The last issue of The Horizon, and the first one ever to be published, was a pilot project for us at AmCham. It all started as an idea in one of our staff meetings. In trying to improve the services we offer to our members, we thought it would be a good idea to start a bi-annual publication with an overview of current economic events and relevant topics of interest for our membership. As we strive to lobby for a better business climate in Kosovo, we also aim to constantly improve the services which we offer to our members. And, one of these services is also The Horizon. Due to the positive feedback from you, our respected members and readers, we have embraced the idea to continue on with the bi-annual publication of The Horizon. Each edition of The Horizon will contain an in depth focus on a specific topic. For instance, through this edition, you will familiarize yourselves with a new service of special importance, which will soon be introduced at AmCham, Alternative Dispute Resolutions also known as Arbitration. In each edition we will also have contributing articles from key decision makers and experts on different economic topics. In other words, The Horizon will be a key forum for economic analysis, news, and perspectives. We do hope that this edition and all upcoming ones will be an enjoyable read for you. If you would like to be a contributing author in one of our future editions, or if you would like us to focus on a specific topic of your interest, please write to us and we will do our best to address your suggestion. On another note, we are currently in the process of re-designing our official website www.amchamksv.org. This will be a very user-friendly and informational website, where you will be able to find information about upcoming events, economic news, member news, and Amcham position papers and studies. We hope that you will take full advantage of the new features that our website will provide. As we approach the end of the year, I would like to wish you all a Merry Christmas and a prosperous New Year! Zana Haxha Editor-in-Chief
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2010 at AmCham
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erving the interests of our members has been the theme of AmCham in 2010. Under the guidance of our Board of Directors, AmCham staff has tried to be creative in finding solutions to provide what our members mostly appreciate. We became a stronger voice for pro-business policies and against bureaucracy; we facilitated international and local business contacts, and supported individually those who needed our support. In terms of lobbying efforts, AmCham has brought together experts from our member companies to work together. Among different functional committees identified, two committees were most active, the Tax and Competiveness Committee. Bringing experts from the business community and the government together to dialogue on matters identified from these two committees was the center of our lobbying activities. In our efforts to help improve the legislation, we have produced a dozen position papers on issues identified by these two committees. The improvement of tax legislation, the introduction of legislation on late payments, views of private sector on privatization and reforms required to attract foreign investors, are just some of the issues we produced policy positions on. In regards to capital market reform, AmCham organized two business forums and issued a policy paper on pension reforms. For all these efforts, we are very thankful to Laura Qorlaze of PriceWaterhouseCoopers, and David Cowles and later Maury ‘Wray Bridges from Booz Allen Hamilton, for chairing the Tax and Competitiveness Committee respectively. In our networking activities we have worked together with the Investment Promotion Agency of Kosovo (IPAK) which proved to be a great partner. In this partnership, not have we only provided a platform for business contacts, but we also used these venues to promote business opportunities and call for more investments in Kosovo. Together with AmCham Macedonia we brought together businesspeople from both countries. Our members had excellent opportunities to meet with more than five hundred small and medium businesses in Washington D.C. in a trade mission organized in coop8
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eration with the US Chamber of Commerce. As a part of this trip the delegation also visited the National Restaurant Association Show in Chicago. In our meetings in Greece, we partnered with Hellenic AmCham and with the Greek International Business Association. In October of this year our members had great opportunities to meet with Dutch counterparts in Rotterdam and Amsterdam, as well as directly with many other businesses in Holland. AmCham has also been opened to serve individually to our members whenever we found that by serving an individual business, we were serving a greater number of communities. Hence, AmCham intervened and successfully lobbied with the Ministry of Transport and Telecommunications to change the decision on banning heavy transportation vehicles to carry goods during the summer season in Kosovo. On another effort, we brought together stakeholders of the mining sector to come to a joint agreement on the licensing for this sector. Given the need for better and improved dialogue between the business community and the government we have worked together with partner organizations to try to enhance the role of the Small and Medium Enterprise Agency as the existing mechanism for this dialogue. In addition, AmCham has also become one of the three partner entities to work with the Prime Minister of Kosovo in the National Economic Development Committee, whose role will primarily be improving the business enabling environment in Kosovo. We are very thankful to USAID/SEAD project in helping AmCham set up an Arbitration Panel. By doing this, AmCham becomes an active player in trying to address deficiencies of the justice system in Kosovo. The backlog of cases in the courts and the time span of resolving disputes have been identified as one of the main problems that businesses face in Kosovo. We are very enthusiastic and hope to start with first cases of arbitration in early 2011. In cooperation with the International Labor Organization (ILO) and the United Nations Development Program (UNDP) AmCham promoted the principles of Corporate Social Responsibility (CSR) and the Labor Dimension of CSR Global Compact Network Kosovo. AmCham encourages businesses to adopt, support, and implement, within their sphere of influence, some basic values in the field of human rights, labor standards, environment, and anti-corruption. AmCham hopes to continue being your voice for growth in 2011, and we very much look forward to working together in making Kosovo a better place for doing business. It has been a great pleasure to serve all of you in 2010, and we thank you for your support throughout the year. We very much look forward to even greater cooperation in 2011. I wish you all a Merry Christmas and Happy New Year! LekĂŤ Musa Executive Director
ADR in Kosovo
PREPARING FOR ARBITRATION Marilyn Zelin
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As AmCham moves ahead with its plans to establish commercial ADR services, businesses must start to plan ahead in order to avail themselves of the benefits of ADR.
s AmCham moves ahead with its plans to establish commercial ADR services, businesses must start to plan ahead in order to avail themselves of the benefits of ADR. Businesses can do two things. First, be a leader, be a champion of ADR. Like starting any new venture, establishing a commercial ADR Center is a huge undertaking. It requires identifying and training arbitrators and mediators that will gain the trust of domestic and international businesses in Kosovo; drafting procedural rules and ethics codes for arbitrators and mediators; establishing procedures and training staff to administer cases; and raising the awareness of the business and legal community. The USAID Systems for Enforcing Agreements and Decisions Program (SEAD) is providing critical support to AmCham for this endeavor, but that support will end when the SEAD Program closes in July 2012. As leaders in the business community, AmCham members can and must join the AmCham management and SEAD in the development of ADR in Kosovo. Second, businesses can prepare for ADR by using welldrafted contracts to document transactions and to ensure that all contracts contain well-drafted ADR clauses. Although you can still take advantage of ADR even if the original contract did not include an ADR clause by using a submission agreement, this should only be a last resort. The likelihood of parties agreeing on ADR after a dispute has arisen is significantly lower than at the beginning of their negotiations.
SEAD is working on a series of model contracts that will comply with the new Law on Obligations that is expected to be adopted during 2011. These model contracts will most certainly contain ADR clauses. Businesses in Kosovo should start to prepare now. As a first step, discuss the use of ADR with your legal advisors, whether they are in-house lawyers or private attorneys. Make clear that ADR provisions should be carefully considered and included in all contracts. If you are the lawyer, you should be proactive in discussing the use of ADR with your clients and take advantage of the training on the Laws on Arbitration and Mediation that SEAD will conduct at the Kosovo Chamber of Advocates and Kosovo
Judicial Institute. You and your lawyer might need to convince the party you are going to do business with that ADR has significant advantages over litigation and it is in the best interests of both parties to plan ahead, just in case a dispute should arise. The main advantages of ADR over litigation in state courts include: • Saving time and money by avoiding the backlog in the courts and using a more efficient procedure for submitting evidence and hearings • Retaining control over the dispute resolution process—selection of arbitrators and mediators; schedule
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arbitration hearings and mediation sessions at the convenience of the parties; tailor procedural rules to the needs of the parties Enforcement—the rate of voluntary enforcement of arbitration awards and mediated agreements far exceeds that of court judgments
Once you have made the critical decision to include an ADR clause in your contract, you need to consider the following: •
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What type of ADR to use—should it be arbitration, where a single arbitrator or panel of three arbitrators make a final and binding decision on the dispute, or mediation, where a neutral mediator will facilitate continued negotiation in order for the parties to reach a mutually satisfactory resolution of the dispute. Should I use a “sponsored” or adhoc ADR—in “sponsored” ADR, an institution such as AmCham administers the case and ensures that the procedure is moving forward. In contrast, in an adhoc procedure, the parties and neutrals must handle all administrative and logistic matters. There is widespread agreement that the small administrative fee is well worth it, particularly as one of the main reasons to use ADR in Kosovo is to avoid the delays that plague the overburdened court system. How should I choose the neutrals—should the parties choose the neutrals or leave that to an institutional sponsor of ADR, such as AmCham. Both options are commonly used. Keep in mind that appointment of the neutrals (arbitrators and mediators) is generally considered the most important issue in ADR.
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As mentioned above, these issues can, and should be, addressed in a written contract that the parties sign prior to the onset of a dispute. Putting this decision off until a dispute arises is only inviting disaster. Smart businesses use ADR in their risk assessment and include provisions for ADR—an ADR clause--in all their contracts. The following provisions are model clauses for arbitration and mediation. Simple arbitration clause: Any dispute, controversy or claim arising out of or in relation to this contract, including the validity, invalidity, breach or termination thereof, shall be resolved by arbitration administered by the American Chamber of Commerce in Kosovo in accordance with the Rules of Arbitration of the American Chamber of Commerce in Kosovo. Simple mediation clause: In the event of any dispute, controversy or claim arising out of or in relation to this contract, including the validity, invalidity, breach or termination thereof, the parties agree first to try to settle the dispute through mediation administered by the American Chamber of Commerce in Kosovo in accordance with the Rules of Mediation of the American Chamber of Commerce in Kosovo before resorting to arbitration, litigation or some other dispute resolution procedure. Regardless of whether you choose arbitration or mediation, it is advisable to add the following provisions: The number of arbitrators/mediators shall be ... (one or three for arbitration; one or two for mediation); The place of the arbitration/mediation shall be ... (city and or country); The arbitral/mediation proceedings shall be conducted in----(language).
ADR in Kosovo procedural rules, which will be based on international standards, such as the UNCITRAL model rules. If parties wish to modify certain provisions of the AmCham rules, they will be able to use the ADR clause to do so. In addition to providing fair procedural rules, AmCham will be able to assist parties with appointment of neutrals. During the coming months, AmCham will compile and publish a roster of neutrals (arbitrators and mediators). Parties will have the option to appoint the neutrals themselves, whether or not they are on the roster, or to ask AmCham to appoint neutrals from the roster for them. The qualifications to be on the AmCham roster will include; a minimum age of 30; a university diploma; a minimum of seven years of business or professional experience; and completion of an arbitration training or, in the case of mediation, certification by the Kosovo Mediation Commission; and no affiliation with a political party. In deciding who to include on its roster of neutrals, AmCham will also consider an individual’s accomplishments, honors, awards, publications and reputation for integrity, fairness and good judgment. Because the selection of neutrals can be a timely process and result in delay, if the parties agree to appoint their own arbitrators, a provision like the one below, that sets time limits should be included in the ADR clause. In addition to a stand-alone arbitration or mediation procedure, there are other possibilities such as a step procedure, where parties agree to start with mediation and proceed to arbitration if they fail to settle the dispute through mediation. As the Law on Mediation limits a mediation procedure to 90 days, if the parties do not settle the dispute within that time frame, the case would proceed to arbitration. Of course, the parties could agree to provide a shorter time period for mediation. In the event of any dispute, controversy or claim arising out of or in relation to this contract, including the validity, invalidity, breach or termination thereof, the parties agree first to try to settle the dispute through mediation administered by the American Chamber of Commerce in Kosovo in accordance with the Rules of Mediation of the American Chamber of Commerce in Kosovo. If settlement is not reached within 90 days of service of a written demand for mediation, any unresolved dispute, controversy or claim arising out of or in relation to this contract shall be resolved by arbitration administered by the American Chamber of Commerce in Kosovo in accordance with the Rules of Arbitration of the American Chamber of Commerce in Kosovo. As you see, these model clauses refer to the AmCham Rules of Arbitration and Mediation. Reference to the rules of a particular institution, is an efficient way to address all the issues that would have to be agreed to, including, notice requirements; forms for claim and counterclaims, appointment of the arbitrators or mediators; jurisdiction-powers of the arbitration tribunal; scheduling; conduct of the arbitration taking of evidence; proceedings in the absence of a party’s participation; costs; and the form and effect of the Award. AmCham’s ADR Working Group is currently working on the
Within [30] days after the commencement of arbitration, each party shall appoint a person to serve as an arbitrator. The parties shall then appoint the presiding arbitrator within [20] days after selection of the party appointees. If any arbitrators are not selected within these time periods, the American Chamber of Commerce in Kosovo shall, at the written request of any party, complete the appointments that have not been made. Conclusion. There are many steps to establishing an efficient and effective ADR system. AmCham, together with the USAID SEAD Program, is addressing each of these steps. As an AmCham member, you can join in this effort and create an ADR Center at AmCham that will meet your needs and expectations. And even if you do not choose to play an active role in this development, you should document all your business transactions with well-drafted contracts that provide for alternative dispute resolution as appropriate. 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.
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Economic perspectives
Kosovo Economy: small, open and growing Gani Gërguri As a small and open economy, Kosovo’s economy continues to reflect a significant degree of sensitivity to developments in the global economy. This sensitivity was tangible in the case of the negative effects of global crisis 2008/2009, as well as in the case of the positive effects of early recovery of the global economy during 2010. The global crisis in Kosovo was reflected mainly in the external sector, which was marked with the decline in exports, remittances and foreign direct investment, which adversely affected consumption and private sector investments. However, positive economic growth trends in developed countries led to a growth of all these sources of revenue from outside during the first half of 2010. As a result, Kosovo’s economy in 2010 is expected to mark a real GDP growth rate of 4.6%, which represents a higher rate of growth compared to 2009. Kosovo’s economy during 2010 has continued to have a low inflation rate, while challenging issues remain the high deficit on current account and high rate of unemployment. Globally, the economy continues to suffer, not only due to the increase of prices but also to difficulties in taking loans, thus preventing the majority of states in the world to reach the level of their non-financial output of the pre-crisis era. The financial sector, especially the banking sector in Kosovo, managed to maintain stability and continue to support the economy by increasing lending. In October 2010, total loans issued by the Kosovo banking system reached a value of 1.43 billion euro, an increase of 10.6 percent compared to the same period in the previous year. However, this increase is mostly attributed to the increase in lending to households, which recorded an annual growth of 27.2 percent, while loans to private enterprises recorded a growth of only 3 percent. The tightening of lending criteria for private enterprises, among others, reflects the fresh memory of the global crisis which makes banks show due diligence in selecting projects for lending. The structure of loans issued to enterprises is dominated by loans to the trade sector, which reflects the general structure of the country’s economy. Kosovo’s banking sector continues to be financed from local sources of funding, reflecting the low level of funding 12
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sensitivity to movements in international financial markets. Deposits, as the main source of funding, were a stable source in the period when the global financial crisis had reached its peak. In October 2010, the total value of deposits in the banking sector amounted to 1.76 billion euro, representing an annual growth of 7.1 percent. Deposits collected from households continue to be the main source of deposits for the Kosovo banking sector. Predictions for a better performance of the global economy in 2011 are expected to have a positive effect in Kosovo’s economy, contributing to an increase in the demand for Kosovo’s exports, increase in remittances, and an increase in foreign direct investments in Kosovo. Besides the increase in the overall economic activity and the improvement of the business environment, a further increase in confidence of the banking sector for Kosovo’s economy is expected, through a significant expansion of lending. All this is expected to support the growth of consumption and private investment, resulting in an expected rate of economic growth for 2011 of about 5.9 percent. Gani Gërguri graduated in the field of Economics at the University of Prishtina, and earned his Postgraduate diploma on Organization and Management at the University of Zagreb in Croatia. He completed an MBA in Finance with distinction at City College – the International Faculty of the University of Sheffield. Mr. Gërguri was employed at the Central Bank of Kosovo (CBK) as Head of Research and Statistics Department in 2000, whereas in 2004 he was promoted in the position of Chief Operations Officer of the CBK. In January 2006, Mr. Gërguri was appointed as a Deputy Managing Director of the CBK, whereas in September 2008 the Governing Board of the CBK has appointed him as a Deputy Governor in charge of central banking functions. Since July 2010, Mr. Gërguri is Acting Governor of the CBK. Mr. Gërguri is chairing the Statistics and Economic Analysis Committee of the CBK and he is also the editor-in-chief of periodical and occasional publications of the CBK. Mr. Gërguri is co-chairing the National Payments Council and he is a member of the CBK Investment Committee, a member of the Joint Liquidity Committee between CBK and the Treasury, and a member of the Monitoring Committee of Kosovo’s program with the International Monetary Fund.
Economic perspectives
Liquidation Alexander Borg Olivier Linn Slattengren
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fter the war in 1999 UNMIK was established by the United Nations Security Council to provide interim administration for Kosovo in conformity with UNSCR 1244(1999). UNMIK’s responsibilities were divided and entrusted to four pillars managed and coordinated by the UN and partner international organizations. UNMIK Pillar Four was given the responsibility for economic reconstruction and for converting the economy from socialism to a market economy under funding and leadership provided by the European Union. The process of privatization was particularly difficult since the war had destroyed most major enterprises, and the Milosevic regime had destroyed or removed many of the records. Many expropriations and transformations had occurred under discriminatory laws and circumstances after 1989 and this created legal uncertainty which further compounded matters. In 2003 the Kosovo Trust Agency (KTA) was created within Pillar Four to administer and privatize the Socially Owned Enterprises (SOE’s).A Special Chamber was also created within the Supreme Court of Kosovo with primary jurisdiction over KTA related disputes and SOEs. KTA identified over 700 SOE’s ranging in size from the huge Trepça complex to tiny one man stores.
KTA established a careful public bidding process to sell SOE’s at the best value obtainable in a fair and transparent manner. From 2004 to the spring of 2008 KTA conducted over 500 “Spin-off ” sales. An UNMIK regulation on land use made it possible for SOE land use rights to be converted to 99 year leaseholds and this greatly facilitated the privatization process. Land and other assets of an SOE were sold altogether and in some cases only a part of the assets were sold. Thus some SOE’s were partially sold or were sold in several “waves”. Where the assets of an SOE were insignificant or where an SOE had no potential to be commercially viable, KTA occasionally sold such SOE assets in direct “liquidation sales”. KTA ceased operations in June of 2008 after Kosovo declared independence and its Constitution entered into force. At that time it had received over €400 million in sale proceeds that were placed in special trust accounts for distribution to owners and claimants. Twenty percent (20%) of the sale proceeds were required by law to be paid to the workers of the SOEs. This was required to ensure social peace between workers and investors in the privatization process.
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Economic perspectives After privatization was completed the old SOE was to be liquidated and all funds and assets were to be distributed to legitimate claimants, owners and workers. The remaining funds were then to be transferred to the Kosovo budget. The liquidation process was established to pay the claims of legitimate claimants who were owed money from the SOEs. These claimants include workers with unpaid salaries, unpaid suppliers, electric bills, taxes, etc. Unfortunately, the liquidation process was never started under the auspices of KTA and this delayed the much needed distribution of funds into the economy. After KTA ceased operations in June 2008 it handed over its responsibilities to its successor, the Privatization Agency of Kosovo (PAK). Unfortunately, the handover process was legally and politically complicated and this temporarily slowed down the privatization process. However, by early 2009 PAK resumed the spin-off process and after a while it was operating at full speed again. PAK has in addition begun the much delayed liquidation process. At this writing only one small SOE has been liquidated, but much other liquidation are being initiated and it is hoped that this process will be speeded up. Anyone who has a claim against an SOE can file the claim with PAK. PAK will refer the claim to a Liquidation Committee which has the responsibility to evaluate the claims of each SOE. A claimant whose claim is denied may appeal in the first instance to the Liquidation Review Committee. If the claimant is still unsatisfied, a further appeal may be submitted to the Special Chamber of the Supreme Court. After all the claims have been paid and all proceeds have been distributed to legitimate beneficiaries any remaining funds are to be transferred to the consolidated Kosovo budget for use by the government of Kosovo. The effect of privatization in Kosovo has had mixed blessings. Certainly it is necessary to revitalize the economic sec-
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tor and to transform the economy from the socialist model to the market model if Kosovo is to compete in the modern world. But it is of serious concern that the liquidation process has been too long delayed. Over €480 million has been collected from buyers of SOEs and removed unproductively from the Kosovo economy. This has caused a major reduction in the economic activity of Kosovo. This money needs to be paid to the creditors who will then be able to spend the money, thus stimulating the economy. Even the relatively easier process of distributing the 20% to employees has been delayed by cumbersome and ill directed administration of the program. Today over €480 million has been collected in privatization sales. Employees are entitled to €96 million of that. Yet notwithstanding the very difficult economic conditions and high unemployment less than €20 million has been distributed. Alexander Borg Olivier was the UNMIK Legal Adviser and head of the legal department of UNMIK from 2000 to 2008. In that position he contributed significantly to the development of all legislation promulgated by UNMIK including all the laws regulating privatization and liquidation and the work of the Special Chamber. He resigned from the UN and UNMIK and served as adviser to the Prime Minister of Kosovo when Kosovo obtained its independence. He has been admitted as a member of the Kosovo Chamber of Advocates and now practices law in Prishtina as a partner in Interlex Associates. Linn Slattengren served as an international judge with UNMIK from 2003 to 2009. Most of that time he was a judge of the Special Chamber of the Supreme Court responsible for cases involving SOEs and the KTA. He now practices law in Prishtina as a partner in Interlex Associates. He was the first international attorney licensed to practice law in Kosovo.
Economic perspectives
Treasury Bills Anne Schwartz
During 2011, a new investment opportunity will be coming to Kosovo. Governments around the world issue debt to finance their budgets and pay for infrastructure projects. Kosovo is about to join their ranks and issue debt, which will be available for purchase and sale in Kosovo. Issuance of short term Treasury Bills (“T-Bills�) by the Ministry of Economy and Finance acting through the Central Bank will be first. T-Bills will be issued for terms of 90 days and up to one year. All the commercial banks will be initial participants and will buy T-Bills for both their own account and for their clients. Businesses will be able to purchase TBills from any of the banks at any time. Because T-Bills are marketable securities, businesses will receive the current market interest rate for each day it owns a T-Bill. Moreover, every owner of a T-Bill can sell that T-Bill to any bank, at any time prior to maturity. At maturity the owner will be paid the face amount of the T-Bill in full. Because these T-Bills are issued by the Government of Kosovo, each T-Bill is backed by the full faith and credit pledge of the government of Kosovo, so they are considered to be safe and prudent investments. So why should businesses buy T-Bills? T-Bills will provide
a safe way to manage your cash by investing and selling when you need to, all the while earning interest at the current market rate. T-Bills are flexible so that businesses can match fluctuations in cash and expenditures without incurring penalties for early withdrawal. You can check with any Bank at any time to compare available interest rates offered among banks and compare these interest rates with other instruments, such as time deposits. For the first time businesses will have investment choices. Anne Schwartz serves as Resident Advisor for Technical Assistance to the Ministry of Economy and Finance (MEF), with focus on areas of drafting a debt law, cash management and treasury operations.
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Economic perspectives
Corporate Social Responsibility ensures business
tion, environmental quality, labour and human rights are becoming increasingly interlinked, and are having a profound effect on businesses and the business environment. To further understand I will quote the most used definition for CSR: – “It is the voluntary integration of social and environmental concerns into commercial operations. It should be seen, first of all, as a way to make our societies—better societies—but, importantly, it has also proved to be an innovative approach that differentiates and adds value to businesses, making them and the societies where they operate more competitive and better prepared to face their new challenges.” Longer run profitability, that is development, requires intangible components such as trust, and social responsibility. Trust is needed between society and businesses. Social responsibility cannot be imposed by the state. Social responsibility has to be borne and promoted by individuals, using their power as consumers, associated in civil society organisations, and by individuals leading businesses. The main thing that counts is the commitment and ambition to change. CSR purely for PR purposes, with no
sustainability and easier access
in the
EU and global markets
Lindita Daija What does CSR represent for us? On the way to integration to the European Union, it is becoming increasingly important for the businesses in Kosovo to be integrated into global markets by improving its governance structures and integration of the international norms on corporate citizenship into practices. Corporate Social Responsibility (CSR) is the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for businesses, the sustainable development agenda, and society at large. Issues such as sustainable development, poverty allevia16
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Economic perspectives true message, no honest effort to effect change, not to speak of CSR to cover unethical behaviour, will not do. More efforts are needed to raise awareness in companies and in the individuals that deal with them, about benefits and opportunities from CSR, promoting best practices and supporting multi-stakeholder initiatives. With the recognition of this, the Global Compact has become a means to achieve a multi-stakeholder dialogue platform for joint action in order to address the development challenges and goals. The Global Compact provides the framework for development partnerships to promote responsible corporate citizenship so that businesses can be part of the solution to the challenges of globalization. Today, the Global Compact Network Kosovo has been initiated with the first group of 20 signatories in Kosovo and we are hoping that the Kosovo Network will grow very rapidly and become one of the most active joint action platforms in the world.
Current situation for CSR engagement in Kosovo Current CSR programs in the Kosovo marketplace are fragmented and limited to improving employment conditions and benefits or funding charitable projects. There is a need to engage with the corporate sector and involve them more actively in the national development process. Contrary to the existence of many interventions in the area of stimulating investments, there isn’t any noticeable effort to advance CSR among the business community in Kosovo. The donors might be focusing on developing a favorable commercial business environment, before looking into ways to mainstream CSR principles into business processes. In other words, for some, CSR might be considered as a chapter that is too early to open. But, it is noted that Kosovo lacks the culture of ethical consumption and there is the absence of strong pressure groups on companies to adhere to higher social, environmental and governance standards, for the time being. On the other hand, many businesses around the world are suffering for not complying with the ethical and responsible business conduct codes of buyers from advanced economies and are excluded from global value chains. In the long run, businesses in Kosovo cannot afford to be excluded from European markets. Hence, CSR principles need to be introduced and gradually advanced from the early stages of developing a favorable business climate in Kosovo, which is mainstreamed into European and global value chains.
What is being done in Kosovo in terms of initiating CSR? UNDP Kosovo was the first development partner to introduce the CSR practices in Kosovo, which emphasize the involvement of the private sector in sustainable development by leveraging commercial opportunities for greater social benefits. There were a series of activities conducted and several workshops organized that have promoted to offer a platform
for engaging the private sector and civil society into policy dialogues around development challenges and connecting private sector in concrete partnership projects in support of development priorities. The first baseline study on CSR practices in Kosovo was conducted and published in 2008. According to the study, the level of awareness on CSR principles and business partnership initiatives between Kosovo institutions, private sector and civil society in Kosovo directed to support development priorities is still very limited. Moreover, the current CSR programs in the Kosovo marketplace are fragmented and limited to improving employment conditions and benefits or funding charitable projects. There is a need to engage with the corporate sector and involve them more actively in the national development process. The first National CSR Conference was organized with the engagement of the Kosovo Chamber of Commerce, AmCham, the civil society and government. During 2010 a joint conference was held with AmCham and the International Finance Corporation (IFC) on Corporate Governance and CSR. The emerging commitment of local companies to engage in the CSR principles was visible. To further promote the policy dialogue on one of the thematic areas, called “CSR principles and the dimension of labour principles”, a round-table event was organized with UNDP Kosovo in cooperation with AmCham and the International Labor Organization. The most recent upcoming incentive for companies to adhere to CSR principles is the joint partnership between AmCham and UNDP Kosovo by signing a MOU to organize the very first “Best CSR Business Award” in Kosovo in the coming year. In essence, CSR is about the voluntary integration of social and environmental concerns into the operations of a company. For the Kosovo context, the integration of these CSR values within the business operations of a company entail the potential benefit of accessing markets in Europe and globally by improving the reputation of the company overall. By integrating the CSR practices within the operations of the company, Kosovo companies can become part of a global business community, which enables access to new markets whereby investing in the brand of the company yields income generation for the firm and poverty alleviation at the level of society. Finally, it has to be emphasized that this initiative should be nurtured by strengthening and institutionalizing the CSR practices in Kosovo as well as further engaging with the corporate sector and involving them more actively in the national development process. The Global Compact is a way for the Kosovo enterprises to become part of a positive process. And responsible companies in Kosovo will also contribute to an improved image of Kosovo. At the very end I would say: Businesses are a crucial engine of growth and development! Lindita Daija is the Project Manager for Private Sector Economic Development at the United Nations Development Programme. Lindita assesses the CSR needs of the private sector in Kosovo, identifies constraints to CSR activities and develops proposals on potential private sector engagement services. Through these many efforts she is trying to promote these principles to the Kosovar businesses. For further information of the Global Compact and CSR Principles please see: www.unglobalcompact.org THE HORIZON
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Focus on Patron member
Dukagjini Group
Projection of World Trade Center Prishtina
The Story of Dukagjini Group Twenty-three years ago, in challenging times for Peja and its population, private enterprises were almost impossible “adventures”. Who would have thought that in 1987 – a very difficult year for Kosovo – a small printing house with an old linotype and two to three workers would become a synonym for modern business, an example of dynamism and development efficiency that would surpass Kosovo borders and be awarded with the highest prizes in well-known European and Global business instances! But, those who knew the vision of Mr. Ekrem Lluka, founder and president of Dukagjini publishing and trade enterprise – as it was known back then; those who joined him in this mission of a phoenix, that would fall and rise from the ashes, as it also happened with Peja – which in the last war was completely destroyed and then it was rebuilt to become an even better city – now enjoy the plentiful harvests of this persistence. Today Dukagjini is present in all fields of life and business in Kosovo. This company is as successful in fields such as production, media and information, insurance, construction, tourism and catering, and trade and business as it is in its publishing and printing segment. The ranges of Dukagjini’s activities are so broad that it is almost impossible to find a segment of life and development in Kosovo where the valuable contribution of this company – which has developed to a genuine corporation – is not present. Let us go through some of Dukagjini’s main activities which are performed either through cooperating with business partners or on its own. 18
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Printing House This is the first and most important segment of Dukagjini. Starting from small linotype machines, Dukagjini now owns five-color or four-color offset machines which are the latest developments in the printing technology and other state of the art equipment. The printed materials are of the highest quality, ranking Dukagjini as one of the first in the region, mainly as a result of the high professional qualification of its leading staff and employees. In addition to the preparation of books, literary and scientific works, and textbooks ranging from primary school textbooks to university ones, Dukagjini also completed other projects, such as the printing of administrative materials, fancy office articles, block-notes, maps, organizers, agendas etc., thus competing with well known companies in the region and covering the entire Kosovo market, but also that of Albania, Macedonia, Montenegro etc. The printing house also completed other complex projects for economic and social enterprises (bills, labels, sensitive documents, bonds) and state projects such as elections, population census etc.
Publishing House Founded in March 14, 1994, for a short period Dukagjini was promoted to one of the largest publishing houses in Kosovo and in the region. It is the first company to respect
Focus on Patron member copyrights and to build an irreversible process of the system of values and the new education system. Initially with two book series, Fryma (social sciences) and Rozafa (literature) and later with Special Editions and Dukagjini Balkan Books (in foreign languages), Dukagjini attracted the most famous writers, thus becoming a leader of primary and secondary school textbooks. There are above 200 titles published in the four mentioned series and around 160 primary school textbooks, primarily in the Albanian language, but also in other minority languages (Turkish and Bosnian), realized in cooperation with the Ministry of Education, Science and Technology (MEST), and a series of additional textbooks, and manuals for the Diaspora. The ABC-book program with which Dukagjini won the MEST tender, was valued for modern achievements in teaching and learning, realized by using the newest standards on didactic teaching.
Insurance Company In February 2002, the Central Bank of the Republic of Kosovo (CBRK) licensed Dukagjini insurance company, which until 2010 – when ownership passed to the former business partner Sava Group – promoted 18 products divided in 6 groups: wealth insurance, health insurance, personal insurance, guarantees insurance, liability insurance, and vehicle insurance. With the submittal to its business partner, Dukagjini did not resign from its insurance activities where this company
proved to be an excellent organizer by becoming a leader with regards to insurances in Kosovo. Instead, after CBRK licensed Dukagjini, they took over the ownership of Dardania which was experiencing problems in the insurance market at that time. For a short period, Dukagjini’s team was able to restore its normal activity, to cover and compensate all remaining debts and to transform the company in a new leader in the insurance market in Kosovo that will be well respected in the future. The current authority in the wide opinion and in the business environment has been built with diligent work of all employees, while all the works have been carried forward with highest professional principles.
Peja Brewery Its geographical position, climate conditions and the abundance of water resources and fertile fields enabled Peja to produce beer since Illyrian times. Today’s factory was founded in 1968, whereas the production started in 1971. The factory complex is 24 hectares wide – including the infrastructure. The initial capacity was 300,000 hectoliters per year, whereas the current capacity is 900,000 hectoliters. In addition to the beer factory complex is also that of malt, refined alcohol and the trade network. The beer factory has a modern laboratory for chemical and microbiological analysis of the raw material, the production phases, the end product and the control of hygienic conditions in the production machines and packaging. Since
Projection of World Trade Center Prishtina THE HORIZON
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Focus on Patron member privatization in 2007, a total of 13.5 million euro has been invested in technology, production, infrastructure, marketing and other departments. Peja brewery, with its variety of products, has dominated the Kosovan market this year with 82%, and it also exported to 19 European and American states. The expansion of the production with 8 regular products and the inclusion of new articles was a primary objective. Year 2010 marked the start of the production of Akull water, which comes directly from the White Drin River in Radavc, in accordance with the highest standards, which guarantee quality and purity. At the same time the production of a line of juices has started.
Radio and Television Radio and Television Dukagjini represents the development concept of the company and the freedom of speech in Kosovo. The communication model with the opinion is done through direct contacts, therefore it is today one of the most known in the country. According to analysis and opinion research, Radio Dukagjini, licensed as a national radio, with the frequencies 105.1, 99.7, 94.5 and 92.7, is the most heard radio throughout Kosovo, while television has a local frequency and a considerable influence in the opinion. The respect toward the Company has made the Radio a credible source of information to the public, and the Television a media turn in the region of Dukagjini. Radio Dukagjini began broadcasting on the 16th of September, 1999, initially with 17 hours a day, and very quickly passed to 19 hours a day. It offers: 50% musical program, 15% informational program, contact, news and connection to the BBC, DW and Radio Free Europe, 25% entertainment programs and shows, and 10% commercial program. The television studio is located in Peja and the first broadcast program began on the 16th of June 2001. It broadcasts 24 hours regular program, from which 70% entertainment program, music, sports, and 30% informative news program. The editorial policy is drawn up in coordination with the Corporation’s policies, while maintaining the bigotry for information impartiality. From June 2008 the television broadcasts a regular 24 hours program in Prishtina and other centers of the country through cable networks Ipko and Kujtesa. Simultaneously, through these networks, these programs are also broadcasted in the U.S. and Canada.
The Book Network Dukagjini Bookshop was inaugurated in May 2000 in Prishtina. For some time, it was the first and the only library for us, which besides offering literature in Albanian language; it also offered English, French, German, Italian and Spanish literature. Driven by huge demand, the bookshop specialized in the sectors of art, architecture, economics, medicine, information technology, literature for children, etc. Services are programmed according to customer needs. Books are pro20
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Projection of World Trade Center Prishtina
vided with order, via telephone, internet, email, etc. The availability of books in different languages, vast spaces, specialized sectors and interior design have made it one of the necessary addresses not only for local book fans, but also for many internationals who visit Kosovo. Dukagjini Bookshop in Peja was founded in 1997. It mostly sells books in the Albanian language, but never leaves aside international books. Besides books, it also sells office supplies. The library innovativeness stands on the fact that it produces facsimile paper and prints advertisements of all kinds, including plastic processing and billboard sector. It is worth noting that the “Duke-shop” is the exclusive representative of BARRISOL ceilings and lightening walls.
Tourism and Hotel Industry Long ago, Dukagjini owned the former Hotel Royal (former Hotel Metohija) on the shore of White River in the center of Peja, a few meters from the historical bazaar and business centers, as well as attractive resorts, which is a benchmark of the residents of Peja and many visitors. Built in 1956 as a unique architectural building, known throughout Kosovo and beyond, hotel Dukagjini is now in the phase of renovation, with an investment of around 7 million Euros. Banquet halls and conference rooms that accommodate over 400 guests and the restaurant “22” which offers an excellent selection of traditional and international cuisine, have already been inaugurated. It reopened the “Veranda” with modern look and quality service from the kitchen, Pizzeria and confectioner, with a capacity of 400 seats, overlooking the city center, coast and the Rugova Gorge. After complete renovation, the hotel will have 67 luxury rooms and business suites, a presidential suite, a night club, a spa-center and swimming pool, a VIP salon, upper floor terrace overlooking the mountains, a fish restaurant on the upper floor overlooking the Rugova Gorge, and spaces for conferences and meetings, with sound system and translation equipment and the option for video conferencing.
Focus on Patron member World Trade Center (WTC) is said to unite businesses and different state agencies involved in international trade, ensures basic trade services and stimulate the economy of the country it serves. WTC puts all international trade services under one roof. Prishtina WTC, a giant started by Dukagjini together with its business partners since the privatization of the former plastic factory, belongs to the future and perspective of corporate business, but above all, it belongs to Kosovo and its dynamic development. The project being carried out will be one of the most far-sighted investments in Prishtina.
Construction Enterprise
Slovenian-Kosovo Pensions Fund The Slovenian-Kosovo Pensions Fund (SKPF) was established as a Joint Stock Company and licensed on November 14, 2006, and it deals with the management of pension savings. It operates in Kosovo since 2006, and is licensed by the CBRK to act as a supplementary pension fund. Its founders are Prva Group, Ljubljana and Dukagjini Corporation with a capital base of 4 million Euros. The aim is to increase the value of savings of members, protect their interests, and invest resources in order to have a good and secure return on investment. Connection to the pension funds is a long-term saving method, and it is the best way to ensure a carefree old age. SKPF has over 210,000 members in South-Eastern Europe. Since March 2007 the European Bank for Reconstruction and Development (EBRD) also has shares in Prva Group.
Factor leasing It is a leasing company, specialized as a non-banking financial institution that offers an alternative finance for businesses aiming to stimulate the economy. Shareholders are Factor Leasing L.L.C. (Slovenia), Dukagjini L.L.C. (Kosovo) and Factor Banka (Slovenia), which with their long experience in business and with experts in this field, ensure safe support in promoting and developing leasing in Kosovo. Factor Leasing is mainly focused in the financing of vehicles, equipment, machinery, buildings, and overall services offered by registered companies in the Republic of Kosovo.
World Trade Center Prishtina Where the boulevard with glamorous promises for megalopolis dreams of the capital of Kosovo starts, with the name of the former president Bill Clinton, the man most loved by kosovans, in the node that connects all streets of major cities of the country and region with Prishtina, World Trade Center Prishtina has set its foundations and is rising in one of the largest objects being built in Kosovo today.
Another very successful activity is being developed in the bosom of the Corporation, that of Construction, which is currently building several large housing complexes in Peja. Professional engineers and construction workers offer modern residential and business facilities, built with the highest European standards. So far, these business and residential blocks have been or are being completed: Puhovci I, Puhovci II, Puhovci III and Buquku.
Dukagjini Telecommunications LLC This is the newest enterprise in Dukagjini group. As a new company in the field of modern technology, it is generally specialized in the field of mass communications, and specifically in that of mobile telephony. Founded in December 2008, D3 Mobile is an extension of Dukagjini group, among the most eminent in Kosovo and region.
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This is only part of the story of Dukagjini operations. We have not mentioned many projects and businesses that are being developed or are already finished. The visions of corporate leaders have always been one step ahead from the actual reality. They have followed global trends and projected developments of a healthy, entrepreneurial and dynamic society. There are many international standards which have been brought to life with Dukagjini. Among others, they have been equipped with the license of World Trade Center’s Association, turning Prishtina into one of the very few Balkan cities that have this privilege. This will help in attracting new investments and facilitating communication between Kosovan and world businesses. Dukagjini has been and still remains an example of business cooperation. Multilateral ties have influenced some businesses to develop in close cooperation with foreign partners, especially with Slovenian ones, known for business in the region. An example of such cooperation is Birra Peja (Peja Brewery), insurance company Dukagjini (today known as Illyria), Slovenian-Kosovar Pension Fund, etc. Among Kosovo businesses, Dukagjini is known for professionalism, accuracy and loyalty. Among the international community, it has the reputation of a modern business, with profound knowledge of international laws, capable of dealing with all challenges of contemporary business. This Company profile was prepared by DUKAGJINI GROUP THE HORIZON
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AmCham Studies
Kosovo in the Late Payments Eyes of Foreign T Investors
T
he main findings of the Kosovo in the Eyes of Foreign Investors Study are that potential investors do not have much knowledge about the main potentials of Kosovo. None of the respondents had been approached by any Kosovo state organization, more than half of respondents would invest in Kosovo after they had received some informational/promotional materials about Kosovo and its business environment, and many want to see improvements in the legal infrastructure, fighting of bureaucracy and tax incentives before they decide to invest in Kosovo. Most of the companies that have invested in Kosovo had moderate expectations from their investments and are up to an average extent satisfied with the fulfillment of their expectations. The survey also revealed a slight portion of foreign companies that see Kosovo’s business environment as unfriendly, whereas half of them seem to have a bit more of an optimistic view. An important conclusion is that 30% of foreign companies may leave if no significant progress is made by the institutions. In this regard, they name rule of law, legal framework, skilled labor, tax environment, and finally the transportation infrastructure as the five key items that urgently need to be addressed and improved. The second part of the study which is comprised of qualitative data, concluded that Kosovo’s relevant institutions lack sufficient funding for their activities and that their efforts need to be modified more by avoiding a general representation of Kosovo and its business environment and focusing more on the details. This part also reveals that more work should be done in the facilitation of business registration procedures.
he AmCham study on Late Payments confirmed that the late payment of debts and collection of business debts is a material problem in Kosovo. This has a direct impact on business survival, particularly on small and medium businesses, it forces them to rely on expensive bank loans (which in fact should be used for investments), and impacts the value of public businesses like the Kosovo Energy Corporation or the Post and Telecommunication of Kosovo. AmCham is requesting that Kosovo implements EU practices in this area, including higher default interest rates and fast track court procedures. The public sector should take the lead, changing both procurement contracts and paying businesses on time to improve cash flow to businesses, and thus helping economic development.
Privatization T
he AmCham study on Privatization aimed to find out more about the opinion of Kosovan private sector companies about the privatization of Socially Owned Enterprises (SOEs) and Publicly Owned Enterprises (POEs) in Kosovo. According to the study, most of the businesses were in favor of privatization in general and they expected positive effects in the long run. The Study also included a comparison of the two former URSS countries, Estonia and Moldova, the privatization process in these two countries, and the current effects privatization has in their economic development. The Study showed that just like Estonia, Kosovo should pursue a fast but careful privatization of its POEs and SOEs which would ultimately help the country’s economic development.
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THE HORIZON
AmCham Position Papers
O
ne of the main objectives of AmCham is to provide U.S. and foreign investors, and Kosovo businesses in general, with a platform to voice concerns and ideas for new government policies and the improvement of the existing ones. These concerns and ideas are further reflected in the documents issued by AmCham known as Position Papers. Through research, committee meetings, and business forums and conferences, AmCham develops position papers which are used as tools in advocacy and lobbying efforts. Some of the recent AmCham Position Papers include the Position Paper on Privatization, the Position Paper on the Late Payment Issue, tand he Position Paper on new Tax Laws. In continuation you fill find all AmCham position papers prepared during the year 2010. In continuation you will find all AmCham Position Papers of year 2010 which were presented to the relevant authorities.
2010 and 2011 Kosovo Legislative Programme Through this position paper, AmCham writes to express its concern about: • the non-inclusion of our Business Association in key laws such as the Mining Law (AmCham has three key members involved in the mining sector) and Procurement Law. We would reiterate again our previous requests to be involved in consultations on these laws. This requirement applies also when the laws are drafted by donor contractors who cannot be assumed to know the “on the ground” concerns of our members. For example a donor contractor may believe it is reasonable in the Law on Notaries to notarise any change of address of companies, but this is an excessive administrative burden that will simply lead to businesses not bothering to notify changes which will in return cause businesses problems. • the sheer quantity of laws on the Kosovo Legislative Programme for 2010. We believe it is not possible with this number of laws to ensure that they are given proper scrutiny and are of high drafting quality. Laws end up being rushed through with mistakes which businesses have to live with. In this regard we would give the example of the imposition of VAT on international transport which apparently covers aviation and therefore will have serious implications on the airport’s success, and which is in apparent contradiction with international treaties as no other European countries charge VAT in this way. We believe this was an error. The insertion came after we had reviewed the draft VAT law and so could not be picked up by our members. We believe it would be better to pass fewer laws and to focus on ones which are really important to Kosovo – politically and economically. We are not clear how the prioritization of the laws occurs but would request involvement in the 2011 Legislative Plan. Before any law is enacted it needs to be clear how it will be implemented and that critical secondary legislation is going to be ready and there are clear transitional provisions. We refer to the new VAT law which was passed and then retrospectively revoked after more than a month passed because the VAT administration was not ready. This then came into force on the 1st of July but still without any secondary legislation or forms in place until August. This created major confusion for businesses, costing them a lot of money and seemingly they will now be fined for mistakes arising from the confusion. Other laws such as the draft Water Law do not make it clear how existing water permits will be treated under the new law. We would suggest for example that where there are adequate laws, whether or not UNMIK Regulations, then they are not changed unless something materially wrong has been identified with them. For example in our view there is no need to review the Patent Law or the Copyright Law which both match the EU Acquis. We are not aware of any Kosovo company having a patent and foreign companies do not object to the current patent law.
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AmCham Position Papers Other laws such as digital signatures are really not critical for Kosovo businesses and we do not know how these are chosen. In the meantime key pieces of legislation such as the Legalisation of Properties are still pending. Secondary Legislation – We are concerned about the volume of missing secondary legislation and delays in its implementation. For example critical legislation relating to the environmental requirements on businesses such as details on Environmental Impact assessments or discharge rules are missing. Links on the web site do not work. The Labour Inspectorate rules on requirements and fines are not on their web site. The capital gains tax was introduced on 1 January 2010 but there are still no rules on the method of calculation or interpretation of fundamental points such as whether there is any starting date e.g. June 1999 or 1 Jan 2010 for the date from when the gain is measured!
Summary of requests: 1. The 2011 Legislative Programme is shorter. The only laws included are those of key political and economic importance. 2. The Business Associations should input on the 2011 Legislative programme. We would welcome a draft. 3. Each Ministry should produce for example to the Prime Minister’s Office a list of all secondary legislation that has already been passed, any that is missing and a timetable for producing it. 4. All Ministries and agencies are requested again to ensure all Secondary Legislation is posted on their web sites and that someone is in charge to ensure the links and web sites are maintained. 5. Copies of all secondary legislation should be sent to a central venue such as the Prime Minister’s Office and/or Ministry for European Integration or Ministry of Public Services and are posted on the Official Gazette or other central web site so that secondary legislation is also centrally located. 6. The Official Gazette web site should be updated. For example the new tax laws are not shown in the Budget Laws section and some are missing. 7. The Business Associations must be properly consulted in good time about legislation affecting their members. This includes secondary legislation. The same reminder will be sent to donors and donor contractors. 8. When drafting any legislation e.g. Labour Law, Law on Notaries, an impact assessment should be made not just of the Kosovo Budget Impact of the burden on businesses and the impact on indices such as the World Bank Doing Business Criteria. We are concerned for example that during Parliament committee discussions of the cost of extending paid maternity leave in the Labour Law beyond 3 months, no costing was done of the implications for businesses and the potential decline in hiring. In particular no comparison was done with other countries such as the fact that no other country in Europe requires businesses to pay any material proportion of the salary beyond 12 weeks. Instead this cost is usually borne by tax or social security contributions or the leave is unpaid. 24
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Late Payments / Debt Collection Cash flow and delayed debt collection is one of the biggest problems facing all businesses in Kosovo. AmCham’s earlier survey on bank loans revealed that 36% of loans are for working capital and very few are for capital investment purposes. Businesses should finance their day to day business as much as possible using their internal cash rather than relying on expensive bank loans. Improving cash flow for small businesses will save them from failure and enable them to grow. According to research, 25% of insolvencies in Europe are a result of late payments. Right now far too much business management time and money is spent chasing late payments which could be spent on business development, sales and training. Late payments/non payments have almost become a Kosovar habit (whether it is late payment of electricity, water, phone bills or business partners). There are only a few sanctions. Where there are sanctions (such as with tax or bank loans) businesses do take those debts seriously, therefore a realistic default interest rate and functioning courts are needed for commercial debts. The withholding of payments by the public sector is a further concern because it can be linked with corrupt requests. With this in mind AmCham commissioned a survey for additional data on exactly how severe the payment problem is and to compare public sector and private payment. In the EU the average bad debt/written off debt comprises between 2 and 4% whereas in Kosovo the figure is between 6 and 12%. The survey showed that many businesses simply do not attempt to collect bad debts because of the failures of the court system. Also only 1 of the respondents imposed a market interest rate on debts. The EU Small Business Act, which Kosovo has signed up to, requires Kosovo not just to enact the EU Late Payment Directive 2000/35 but to take practical actions to improve payments to SMEs. Below are the measures that AmCham suggests in order address this issue: 1. Increase the default minimum interest rate
AmCham Position Papers
2. 3.
4.
5.
6.
7.
8.
9.
on late payments from 3.5% to 8% above ECB (EU Directive). Include fixed administration charge for the creditor to recover costs in pursuing debt (EU Directive) 30 day payment period should be mandatory (EU Directive) (These two changes can be made in the new draft Law on Obligations). The Ministry of Finance/Treasury should ensure businesses are paid on time by Government and Municipalities and reduce the payment bureaucracy and change public procurement template contracts (EU requirement). The General Auditor should report on each public entity’s average payment time and authorities should publish it on their web sites. Change the payment culture via Pay on Time campaign for businesses and public sector. Late payment is cultural and associated with poor financial management/ discipline generally and-performing public administrations (even before the crisis the latest payers in EU were Greece, Spain, Portugal, Italy and Ireland which are now also those public economies in the greatest financial trouble). Improve ineffective court system with better fast track money judgment system (also a requirement in the EU Directive). Currently claims often take 4-7 years to process and even once a judgment is achieved, less than 1% of debts result in any form of enforcement. The USAID SEAD project has put forward several reform suggestions which must be taken up by the Ministry of Justice. Practical efficiency reforms in the courts are essential. Tax Administration should be better at recognizing the reality of bad debts in Kosovo by not requiring tax on funds not received after 4 months. It is difficult enough for the businesses not to receive the debt, but then to have to pay VAT and corporation tax on debts they are have not been paid, is unacceptable. The provisions in the new Corporate Tax Law are good but the attitude of the Tax Administration needs to change. The SME Agency should report on progress annually to the Business Associavtions (KCC, AmCham) and Ministry for European Integration including data from the courts, General Auditor and Tax Administration.
Privatization is a necessity AmCham believes that the increase of private sector participation in the economy through the process of privatization is beneficial, especially when accompanied by complementary reforms and EU standards of regulation. A lower role of government leaves less room for corruption and interference with the free market economy. Studies show that privatized utilities with appropriate regulators offered better quality of goods and services to the market and there is more innovation and more efficient capital investment. Public utilities may suffer because of other Government spending priorities. Better goods and services are of great importance for businesses that rely on these utilities.
The time is now Kosovo is in desperate need for foreign investment and therefore the privatization of Publicly Owned and Socially Owned Enterprises should be a corner stone of economic reforms. The advent of large foreign investors in utilities will encourage others and raise Kosovo’s profile amongst the financial markets and with the large corporations. Kosovo needs exposure to international expertise, openness to international markets as well as access to capital. Experience from other countries suggests that privatization; especially those with foreign owners will not reduce overall employment – work may be generated for other companies. Foreign investors will bring modern working practices and increase productivity which will influence the overall economy. This can already be seen in the banking sector in Kosovo which is one of the most successful, partly because of the practices of the foreign investors.
An opportunity that should not be missed Kosovo’s image is very low amongst foreign investors for various reasons, partly due to its association with war and conflict, because it is a small country without a large market and perceived/actual corruption. It is unfortunate that other transactions such as the previous Kosovo C project frustrated investors with their delays and changes. It is therefore vital that privatization and future transactions go smoothly and efficiently. A transparent and efficient privatization is a great opportunity for Kosovo as a whole to improve its image and to show that Kosovo is a place where there is a level playing field for all interested bidders and where transactions can be run smoothly and efficiently. THE HORIZON
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AmCham Position Papers
The Potential Delay in the Implementation of the New Law on Value Added Tax AmCham welcomed the introduction of the new Value Added Tax (VAT) Law 03/L-146. The new VAT Law presented an improvement and is much closer in compliance with EU Sixth VAT Directive. It reflects many of our comments in 2009 and we are grateful for this. The new VAT Law provides a proper implementation of Article 53 of the Sixth VAT Directive in regards to non residents not being subject to VAT Law. The new law is much more detailed on many issues - providing much greater certainty. In particular the “place of supply” is clarified, in particular for engineers, accountants, lawyers providing advice to non-residents – result that no VAT is chargeable. There is also much greater clarity for supply of telecom services, software outside of Kosovo. These clarifications are vital to enable Kosovo’s services sector to effectively export services and compete in the international market improving Kosovo’s balance of payments. They are also important to foster development of potential investment in areas such as business process outsourcing, call centres, etc.
The delay in the Implementation of the Law will not Contribute to the Business Environment A decision on postponement of the newly promulgated VAT law will not contribute to stability and predictability of the business environment in Kosovo. The process of withdrawing laws once they are promulgated is not in line with best business or good Government practice. On the other hand, the delay will also cause an ambiguity on how to treat different VAT provisions in the absence of clear instructions. AmCham strongly believes that a proper and good VAT Law which is in compliance with EU sixth Directive is an imperative for foreign investments and increase of exports, and that efforts should now focus on drafting clear Administrative Instructions/ Directives consistent with the provisions of the new VAT law, rather than postponement of the said law.
Issues that need Clarification or Improvement in the VAT Law While the new VAT law is generally to be welcomed and it incorporates many of our comments there are some provisions which were inserted subsequent to AmCham’s comments in 2009. We appreciate that Administrative Instructions/Directives will be necessary for certain provisions and we look forward to being able to provide input to the Tax Administration on these. We mention a couple of areas of concern below : 26
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Continuous services There are new provisions on “continuous services” which may be deemed to be provided monthly. These provisions need a clarification so that they will not be interpreted in a manner which will cause problems for companies such as advisers or software maintenance companies or advertising space providers that charge in arrears and often only some time later. Companies such as accountants or law firms who undertake due diligence and other transaction services or work on a court case that may stretch out over several months and may often only be billed at the end and only then may the fee be certain. The same problem applies with financial audits or tax appeals or tax investigations with accountants. In order to avoid confusion with this “continuous services” definition we would like a very narrow interpretation of it in the Administrative Instruction, for example that it only applies if no other billing arrangement can be demonstrated.
VAT Reimbursement Threshold and time limits The arrangements on VAT reimbursements in the new VAT law are not satisfactory as it increases the liquidity pressure on businesses, particularly small businesses that cannot afford lending money to the Government. The threshold for application is still 5,000 Euro and there are no deadlines for reimbursement and no interest on the delayed application etc. We hope that the documentary requirements, which will be subject of a separate sub-legal act, will not be onerous to business. It should be remembered that VAT is a consumer tax and the role of businesses is simply as collectors. It is not a tax on businesses and therefore when the business has collected too much versus the amount billed to consumers it should be reimbursed quickly.. Swift reimbursement of VAT is a requirement of the EU acquis under the Small Business Act. We would suggest that the sublegal act also includes deadlines and an interest provision and states that an audit prior to reimbursement is not always necessary. A possibility for delays also leaves open room for corruption/influence of inspectors.
Input on lower VAT elements We note that there is provision for some goods/services to have reduced VAT and we would be grateful for input on these areas in due course so that choices can be made which have beneficial effects for the economy and to encourage foreign investment. The above areas of concern are only a small representation of all other issues which need immediate clarification and supplements so that the new VAT law can be fully and properly understood and implemented by all parties concerned, being it local businesses, foreign businesses operating in Kosovo as well as Kosovo tax authorities. With the right emphasis and support as well as proper resources from the Kosovo tax authorities, these Administrative Acts/Directives can be drafted swiftly and should not in any way obstruct the so much needed new law on VAT from being implemented. The purpose of this Position Paper is to show once again the continuous willingness of AmCham to provide assistance to Kosovo authorities in drafting the Administrative Acts/ Directives and to provide meaningful input to this process.
AmCham Events
Official opening of Job Fair 2010
7th Annual Job Fair
On May 13th, 2010 AmCham with the support of the Program for Private Enterprises in Kosovo KPEP/USAID organized the 7th annual Job Fair. The AmCham Job Fair 2010 presented an important networking opportunity for students and recent graduates. Individuals had the chance to interact with potential employees and observe what companies had to offer and what they look for when hiring. It also presented an opportunity for companies to collect CVs and inform potential employees on the procedures to be followed when applying for a job position. The consortium Bechtel and Enka was the sponVisitors of Job Fair 2010 sor of the event. The toat company booths tal number of companies which participated in the fair was ten, and they represented different sectors such as banking, consulting, construction, IT, and education. This year’s fair attracted 702 visitors, most of them students and recent graduates. Each of the companies had their own stand where they conducted formal or informal interviews with visitors. AmCham job fairs have contributed to unemployment reduction in Kosovo. They have also helped in developing a new job hunting concept which employers seem to prefer.
Trade Enhancement Mission in the United States From May 15-24, 2010 AmCham organized a Trade Enhancement and Education Mission to the United States. AmCham started recruiting companies for participation, in December of 2009. As a result of the intensive promotion of the event, AmCham was able to recruit a total of fourteen persons as participants in the Trade Mission. The delegation was a colorful mix of businesspeople and government representatives. AmCham’s aim was to provide a meeting point for its member companies, and Kosovar business in general with American businesses. The institutional representatives had the opportunity to meet with US companies and provide them with information on current investment opportunities in Kosovo.
The first part of the visit started with participation in America’s Small Business Summit, in Washington D.C. with more than 400 US companies present. This summit is organized annually by the United States Chamber of Commerce. Apart from creating contacts with different company representatives, the delegation had a booth where Kosovo and investment opportunities were presented. Each participating company/ institution provided detailed materials with contact information and discussed partnership or investment opportunities with the businesses that were present at this Summit. The delegation held a business lunch with the staff of the Kosovo Embassy to the United States, where they had the opportunity to hold discussions with the embassy staff and identify possible areas where the embassy could potentially play a constructive role in helping the business community in Kosovo. In continuation, the delegation also met with the Deputy Assistant Secretary of State, Dan Rosenblum, the Kosovo Desk officer in the Department of State, and other staff from the Department of State. This was a meeting of special importance where the delegation discussed some of the problems and obstacles they face while doing business in Kosovo. The delegation also met with the staff of the Department of Commerce, in which meeting the two sides discussed the possibility of the department serving as a facilitator between American companies who are interested in investing in Ko-
AmCham delegation at the State Department
sovo or who want to learn more about investment opportunities in Kosovo. On day two of the visit, the Kosovo American Education Fund (KAEF) hosted a reception in honor of the delegation. A number of the businesses which participated in the Trade Mission supported this fund for the educational advancement of the Kosovo youth; therefore as a sign of appreciation, the fund hosted a reception at one of the very prestigious private clubs in D.C., the Cosmos Club. The delegation also met with representatives from the office of Congressman Eliot Engel, Chairman of the Albanian Issues Caucus. At the meeting, representatives from his office updated the delegation on actions being taken by Congressman Engel’s office regarding Kosovo, and how issues which affect the business community can be addressed.
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AmCham Events Another very important meeting was the one between the delegation and the Albanian-American Chamber of Commerce (AACC). At this meeting, organized in cooperation with the AACC, there were a number of Albanian American businesses, most of which came from the New York area, who were interested about investment opportunities in Kosovo and establishing contact with Kosovar business representatives. The Privatization Agency of Kosovo (PAK) and Public Private Partnerships (PPP), a unit within the Ministry of Economy and Finance, made detailed presentations about investment opportunities to the group. The meeting was concluded with discussions about doing business in Kosovo, possible partnerships, and a formal dinner hosted by the AACC. In Chicago the delegation continued the mission with a visit to the Chicago Merchandise Mart Plaza, the world’s largest commercial building, largest wholesale designer center and of Chicago’s premier international business locations. In continuation the delegation met with officials of the Lakeview Chamber of Commerce. The official mission ended by participation in one of the world’s largest shows in the restaurant and food industry, the National Restaurant Association Show (NRA). This was an opportunity for attendants to discover the world’s best products for tourism, hotels, food industry, and restaurant or retail business. This was also a chance for the delegation to network with some of the finest food and restaurant operators in the world.
Corporate Social Responsibility and Corporate Governance On June 30, 2010, AmCham in partnership with United Nations Development Program (UNDP) and International Financial Corporation (IFC) organized a conference on Corporate Social Responsibility (CSR) and Corporate Governance. The conference was intended to introduce initiatives of IFC and UNDP on corporate governance, their social responsibility, and engaging the private sector, government and civil society in advancing corporate in Kosovo. Speaking of corporate governance project in the Balkans, which in Kosovo began in April and will last until the end of next year, Oliver Orton, manager of the IFC project said their aim is to create a culture of corporate governance in all levels: that of the Government, regulators, public and private sector enterprises- banks, family businesses, and small and medium enterprises. On the other hand, the other project, Global Compact of UNDP, promotes CSR through the initiative which aims to 28
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engage businesses in the development process by providing assistance in establishing self-regulatory mechanisms through which businesses monitor and support law enforcement and international ethical norms. The event was organized under the Memorandum of Understanding signed by UNDP and AmCham for supporting private sector development in Kosovo. Part of this initiative is the launching of the program “Award for the Best Practices of Social Responsibility”, which tends to stimulate and reward those businesses that have implemented social norms of responsibility in their functions and services. In this conference, representatives of member companies of AmCham- Sharrcem-TITAN, EXPIK, Data Electronics and Meridian Corporation, had the opportunity to present their experiences with CSR.
Best Taxpayers Award On July 1st, 2010 AmCham in cooperation with the Kosovo Chamber of Commerce, the Tax Administration of Kosovo, and the Kosovo Customs, organized the traditional Best Taxpayers Award ceremony. The aim of this Best Taxpayers Award ceremony event is to award businesses which are the most regular and highest contributors to the Kosovo Budget. This annual event is also organized in order to raise awareness about the fiscal obligations of businesses towards the country, to increase the cooperation between the Tax Administration, Kosovo Customs, and the business community; and to encourage the current taxpayers to carry on paying their dues.
Turning Disability into Productivity On August 20, 2010 AmCham and the Public Diplomacy Section of the United States Embassy in Prishtina organized a presentation with the topic Turning Disability into Productivity: The Issue of Disability Employment. This presentation was made by Mr. Chad Colley, US ParaOlympic Gold Medalist and Vietnam War veteran. Mr. Colley shared his personal experience with members of the AmCham family which attended the presentation, and held a very inspirational presentation on the importance of integrating disabled persons into the workforce. Most of the participants of this event were representatives of Human Resources Departments of AmCham member companies.
AmCham Events
Business visit in Greece
On October 13th, 2010 AmCham in cooperation with the AmericanHellenic Chamber of Commerce and the Greek International Business Association, and with the support of the Investment Promotion Agency of Kosovo (IPAK), organized a business visit to Thessaloniki, Greece. AmCham traveled to Thessaloniki with a delegation of twenty-five businesses from Kosovo, and representatives of government and investment promotion agencies. The delegation was headed by Mr. Christopher Hall, President of the AmCham Board of Directors, and Mr. Lekë Musa, Executive Director at AmCham. The official visit was comprised of two parts: on the first part representatives of governmental institutions from the Private Public Partnerships Unit, the Privatization Agency, and the Investment Promotion Agency held presentations on investment opportunities in Kosovo. The aim was to encourage Greek businesses to consider investment in the privatization process and the public private partnerships. The number of participants and the interest from the Greek side was very encouraging. The second part of the visit was comprised of B2B meetings between Kosovo and Greek businesses. It is very important to note that the number of Greek companies attending was above forty and there was a lot of interest for cooperation with Kosovo businesses. As a result of the constructive meetings, some of the Greek companies who attended plan on visiting Kosovo soon, with the aim of embarking in joint business ventures with Kosovo counterparts. After all, Kosovo and Greece should use their geographic proximity and cultural similarities to their advantage and add to the existing economic cooperation.
Pension Funds and Capital Market Development On October 18, 2010 AmCham with the support of the Slovenian-Kosovo Pensions Fund organized a conference on Pension Funds and Capital Market Development. The aim of this conference was to gather the main actors from the financial sector, the relevant ministries, members of relevant parliamentary committees, banks and microfinance
institutions, representatives of the business community, pension funds officials, and representatives of civil society, to discuss about how the liberalization of the pension system could help market development in Kosovo. The panelists that addressed the participants at the conference were: Bashkim Isufi from the cabinet of the Minister of Economy and Finance, Gani Gërguri, Acting Governor of the Central Bank, and Dardan Sejdiu, Executive Director of the Slovenian-Kosovo Pensions Fund. The presentations of the panelists were followed by a very vibrant discussion on the possibilities of pension fund liberalization, and all participants agreed that the liberalization of the pensions market is an important process that should go through, and whose effects would ultimately lead to capital market development.
Corporate Social Responsibility principles and the Labour Dimension of CSR On October 26, 2010 AmCham in cooperation with the International Labour Organization (ILO) and the United Nations Development Program (UNDP) organized a conference on the Initiative of Global Compact Network in Kosovo, Corporate Social Responsibility principles, and the Labour Dimension of CSR. This conference signed the finalization of a two-week awareness campaign on the importance of the Global Compact’s ten principles, in particular the principle number 5, which aims to effectively eliminate child labor. The event gathered around 45 participants, many of them key stakeholders from the business community. The participants were welcomed and addressed by Osnat Lubrani, UN Development Coordinator and UNDP Resident Representative; Lekë Musa, Executive Director of AmCham; Behxhet Gaxhiqi, Advisor to the Minister of Labor and Social Welfare; Yukiko Arai, Senior Specialist, ILO Multinational Enterprises Programme, Geneva, Switzerland; Goran Lazarevski, National CSR Board, Skopje, Macedonia; Lindita Daija, Project Manager, UNDP; and Lindita Boshtrakaj, NPM, ILO IPEC. During the conference, the establishment of the Working Group on Labor was initiated. The role of the working group is to take the lead in initiating and funding collective activities to promote and implement the UN Global Compact Principles that relate to the respective pillars of the Global Compact. As follow-up of the conference the labour working group composed by representatives of employers’ organization, private companies, representatives of public authorities and trade unions was established. The following priority areas were included in the work plan of the labour working group: 1/ participating financially in socially responsible activities targeted towards the elimination of child labour, 2/ providing apprenticeship and job opportunities for families of children involved in child labour; 3/ improving workplace safety and health, 4/ working with workers’ organization s and establishment of workers’ associations, and 5/ documenting and sharing the good practices in realization of the four GC labour principles by the member companies.
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AmCham Events
AmCham businesses visit the Heineken Brewery
Trade Enhancement Mission in the Netherlands With the support of the Investment Promotion Agency of Kosovo (IPAK), this last November AmCham organized a Trade Enhancement Mission to Netherlands. Around thirty business representatives and several state agency representatives, namely from IPAK and the Prime Minister’s Office, were part of the delegation. The visit was comprised of a Business Day, which took place at the Rotterdam Chamber of Commerce, and visits at some of the largest Dutch and international companies. The Business Day in Rotterdam showed an increased interest of Dutch companies to meet with Kosovar businesses, exchange contacts and eventually establish business relations. All speakers at the Business Day agreed that Kosovo provides a good business environment that should be used by potential Dutch investors. The event further continued with presentations from several Dutch agencies which provide financial and technical support to Dutch companies that decide to invest in Kosovo. The Business Day was concluded with Business to Business meetings over lunch, where business representatives from both countries exchanged contacts and discussed possible areas of cooperation. In continuation of the visit, various groups of Kosovo businesses visited the largest Dutch and international companies, such as the electrical appliances giant producer PHILIPS, Haworth- a well known office furniture manufacturer, the Heineken brewery, and several law firms. The visits were a great opportunity for Kosovo business representatives to learn more about the working processes and activities of the above-mentioned companies. Haworth had already voiced its interest to establish its distribution center in Kosovo, from where it would supply office furniture to Macedonia and Albania as well. We hope that they will have a positive experience, so that other Dutch businesses will take them as an encouraging example, and establish businesses in Kosovo.
Lydian International/ Kosovo Resource Company Business Club On November 4, 2010 AmCham organized a Business Club for Lydian International/ Kosovo Resource Company. Business Clubs are a service recently introduced at Amcham 30
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where members can promote their business, products and services to fellow AmCham members and guests of the host company. The Lydian International/ Kosovo Resource Company Business Club started with a presentation of the company by its Chief Executive Officer on best practices in exploration, mining and financing. It was then followed by a presentation by Mr. Alexander Borg Olivier, lawyer at Interlex Associates, on the legal framework on mining, and a presentation by Mr. Ahmet Shala, Minister of Economy and Finance. The presentations were then followed by a very active discussion on exploration and mining issues in Kosovo. Present at this event were representatives of the Independent Commission on Mines and Minerals (ICMM), executives from mining companies, and local and international financial institutions. The event was concluded with a cocktail hosted by Lydian International, where guests had the chance to further discuss issues of importance in the mining sector.
Kosovo in the Eyes of Foreign Investors
Kosovo in the Eyes of Foreign Investors Conference
On November 24, 2010 AmCham hosted the conference “Kosovo in the Eyes of Foreign Investors” at the Grand Hotel Pristina. This conference presented the results of the research conducted with foreign investors who are not present in Kosovo and those who have already invested in Kosovo. The conference also focused on the opinions of relevant experts about efforts of the Kosovo institutions to attract foreign investment. The survey conducted with foreign investors that are present in the Balkans and Eastern Europe, but not in Kosovo, shows that companies in question have already heard about Kosovo and the media campaign Kosovo – The Young Europeans had a positive impact in this regard. However, the situation differs in terms of investors knowledge of the business environment in Kosovo. Also, investors don’t appear to be sufficiently informed regarding the potential that the Republic of Kosovo has to offer to foreign investors. Research has lead to the conclusion that despite the small efforts of relevant institutions to attract investment, there is an interest among foreign investors to invest in Kosovo. Recommendations given by AmCham show the key steps to be taken by the relevant institutions of Kosovo in the near future.
AmCham Events Speakers at the conference were His Excellency, the American Ambassador in Kosovo - Christopher Dell, Resident Representative of the International Monetary Fund-Jose Sulemane, the Minister of Economy and Finance-Ahmet Shala, the Chief Executive Officer of the Investment Promotion Agency-Mustafë Hasani, and representatives of international organizations and diplomatic offices in Kosovo.
Ambassador Christopher Dell’s Remarks at the Conference: Kosovo in the Eyes of Foreign Investors November 24, 2010
Good morning, Leka, Minister Shala, my friend Patricio Jose Sulemane from Mozambique and IMF, members of the Chamber, invited guests, thank you for joining us today for this important discussion. And I’d like to congratulate the Chamber on the research just presented to us, which I think provides a degree of specificity, precision and clarity that confirms a lot of what we already knew, but previously had been impressionistic. And so this is very, very useful research, and I hope that the government and its international partners, as well as the Chamber and your international friends can use it to work on improving the business environment here, in the years ahead, whoever becomes the next government of Kosovo. As the American Ambassador in Kosovo, the issue of foreign investment is especially significant. I have a responsibility to ensure that Kosovo offers fair markets for U.S. investors, and American foreign policy is, of course, committed to Kosovo’s development. We want Kosovo to develop into a vibrant democracy with a strong economy that becomes a model of stability throughout the region. I know that I share this vision with everyone in this room, and at the end of my remarks today, I hope that I will have convinced all of you that we have a shared responsibility to develop both Kosovo’s economy and its democracy. First, let’s talk about business and investment in Kosovo. The investors in this room care about their returns, and you are looking for growth. Each of you has made a decision that the rewards of working in Kosovo are worth the risks. This risk-reward calculation is one that investors make all over the
world. I also know that all of you are equally committed to creating jobs and thereby helping Kosovo as a whole to grow and to prosper. There are several primary characteristics that investors consider before deciding to come to a foreign country. These include: • a cost-competitive and educated workforce with a strong work ethic and willingness to learn new skills -and we saw from the survey results just how important that is to potential investors, and the perception that Kosovo is indeed attractive in this sense. • reliable, trustworthy local partners who provide quality services and who can navigate local legal and regulatory customs; • opportunities to make a profit, with the freedom to enter the local market; • minimal political risk, with low levels of corruption, that frees business leaders to get on with the business of doing business with a minimum of hassles; • trust in the court system to enforce contracts and settle disputes equitably; • and a strong, growing, vibrant economy. Kosovo does pretty well on some of these indicators. To be sure, there are hiccups among these categories, but Kosovo has the potential to become the center of growth in the Western Balkans. Yet, the record of foreign direct investment has been disappointing over the past three years. In fact, FDI has been declining. In 2007, foreign direct investment stood at €440.7 million. It declined in 2008 to €366.5 million and again in 2009, to €291.5 million. That’s about a one-third decline in only three years. Certainly, greater worldwide financial uncertainty has made investors wary of sinking money into new enterprises, but I contend that, as the world’s economies emerge from their doldrums, Kosovo should become a very attractive destination for investment. The growth opportunities are myriad, with numerous underdeveloped sectors that are screaming out for investment. Consider the options: • construction – with its expected high demand for years to come; • tourism – where the ski resort in Brezovica and the wine region in Rahovec remain underdeveloped; • education – where the needs are great to develop Kosovo’s large youth population into a vibrant workforce; • agriculture – where an abundance of arable land, a young and energetic population, a favorable climate, and a proximity to regional markets, make Kosovo an attractive place to invest; • information and communication technology – where Kosovo’s young, multilingual, well-educated workforce could play a role in developing call centers or business process outsourcing companies for European countries; • and, consumer goods – where the growing middle class will have increasing demand for high quality products. • We all recognize that there are many wonderful op-
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AmCham Events portunities for investment in this country, but Kosovo is competing for a limited pool of international investment resources. Other countries throughout the region—and indeed throughout the world—have their own stories to tell, and Kosovo has a burden to show that it is worthy of investor resources, in short, that the rewards outweigh the risks. For too many years Kosovo found its way into international headlines for all the wrong reasons. And again, I think that the research that was just presented to us confirms this. Years of discord left Kosovo with a perception – image -- that the risks are simply too great for investors. And these perceptions breed uncertainty, and uncertainty scares away money. My embassy has worked hard over the past couple of years to mitigate some of this uncertainty. We have invested in the development of the rule of law in order to give investors the confidence that the legal system can fairly and expeditiously enforce contracts. This year has seen important progress in this area, as the government adopted and Parliament passed -- approved a package of laws that put in place the foundations of a modern legal system. At long last, the process of vetting prosecutors and judges has been completed. And those who passed the vigorous ethic standards are now taking up their responsibilities. Through USAID, the United States has been developing modern courts throughout the country, to provide citizens access -- transparent, easy, fair access to justice. But as we all know, much more needs to be done. Kosovo is putting in place the building blocks that will offer investors the confidence that Kosovo is a safe place to do business, and these efforts will reverse the negative trend that we have seen in declining rates of foreign direct investment. But challenges remain. Investors must believe that their rights will be protected, and they crave the comforts of consistency. They want to know that the legal and regulatory systems survive intact, without changes, regardless of who is in government. Kosovo must demonstrate its commitment to a transparent legal order that has no room for corruption or murky backroom deals. This is an objective that we all confront together. It requires commitment from the government, from the business community, from civil society, and from the international community. Every poll I have seen, and every ordinary citizen with whom I’ve spoken, makes it clear, the weakness of the economy -- let’s speak clearly here -- the lack of jobs and the lack of good incomes, as well as corruption, are the principle worries of this country. And whoever wins this next month’s elections will have to address these twin challenges. If the next government fails to do this, Kosovo is going to be in a deep trouble. So these next four years are going to be as critical to your future, as any of the past ten have been. As business leaders in Kosovo, the people in this room have an obligation to show that you support transparent political, legal, and regulatory systems that encourage growth and promote dynamism in the economy. People will observe your actions. They look to you for assurance that Kosovo is a good place to do business.
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And as Kosovo prepares for its first post-independence elections, I submit to you that your obligation to the business environment has never been higher. The upcoming national elections will affect investors’ perception of the risks of doing business in Kosovo. Investors are conservative by nature, and they will look for information that confirms their suspicions that Kosovo is a corrupt and lawless land. I know that this is not the case. You know that this is not the case. We need to correct the record by working together to show the world that democracy is thriving in Kosovo -that the rule of law is taking root in Kosovo and that its people are determined to build, protect and enjoy their hardwon freedom. Certainly, Kosovo has room to grow and develop, but the people of Kosovo have embraced democracy and have shown that they are committed to their institutions. We have observed over the past several weeks a number of shocks throughout the political landscape, but the country’s institutional system has absorbed these shocks without disruption. Government services remain in place; the constitution has provided a roadmap for the smooth transition of political authority; and the country is preparing for elections amid peace and according to universally respected rules. Now, I come to the point where I want to ask each of you, each of you who are Kosovar, each of you indeed who is an international -- representative of the international community here, I would challenge everyone in this room to demonstrate to the public—and to the international investors—that you are committed to Kosovo’s institutions. I want everyone in this room to take responsibility for assuring potential investors that Kosovo is a safe place to do business, where mature institutions guarantee the stable transition of power. You can fulfill this responsibility by volunteering your time to observe the elections process on December 12. Your presence at the polls will serve many purposes: First, you are respected members of the community. When you spend time at the polls, you give confidence to voters about the integrity of the electoral system. Kosovars must learn to put their faith in their own country, their own system and their own leaders -- rather than depend on the international community for reassurance about these things. This confidence will breed ever-greater confidence, and it erodes the negative perceptions that limit foreign direct investment. Second, your presence helps to deter those nefarious elements that want to exploit the electoral process for their own narrow interests. I’ve spent a lot of time observing elections over the past year, and I can tell you that I derive no small satisfaction in watching the ne’er-do-wells scatter whenever we enter a polling center. I don’t think that they really do all that much, but their presence undermines the dignity of the polling place and creates an intimidating atmosphere, and casts a pall over a system that fundamentally works. Help me—more importantly help Kosovo—in keeping this election clean. How, you might ask, can I make a difference in the upcoming elections? After all we’re business people, were not politi-
AmCham Events cians. Well, the answer to that is easy. Democracy in Action, a well-respected NGO, is organizing a 4800-person observer mission that will be present at each and every polling station in Kosovo throughout the day on December 12. They will be there when the polls open. Their presence at the polls will provide confidence to voters all day long, and they will observe the counting and tabulation of ballots. And you, the members of the Chamber should be among their number. Democracy in Action is only as strong as the volunteers that it deploys. I look around this room, and I see dozens of strong and respected leaders who can ensure that the upcoming elections are the best elections that Kosovo ever has seen. And as just as importantly, who can reassure the people of Kosovo that their leaders are as committed to the future as those who get out to vote. In last year’s elections, most of the burden of observation for DIA fell on young people. They’re to be applauded and for stepping up and for example they set. But I urge you to follow their example by getting out and volunteering to protect the vote of the Kosovar people. This is the kind of leadership Kosovo needs, and its citizens expect from you. If you lend your support to this process, I promise you that your efforts will lend credence to the story that Kosovo wants to tell the world—that it is a vibrant and strong democracy that deserves investment. As this investment builds, your businesses, too, will prosper, and so will the people of this country. Let’s show the world on December 12, that Kosovo is worth the risk. This is your responsibility, and this is your opportunity to help you country take a great stride forward in winning the confidence of the world, and wining the confidence of its own people. Thank you all very much indeed. The transcript of Ambassador Dell’s remarks was borrowed from the US Embassy website http://pristina.usembassy.gov/remarks_kosovo_american_chamber.html
MOU between AmCham and the USAID Kosovo Systems for Enforcing Agreements and Decisions In its aim to foster a more business friendly environment in Kosovo and MOU signing ceremony to further expand services it offers to its membership, on July 14, 2010 AmCham signed a Memorandum of Understanding with the USAID|Kosovo Systems for Enforcing Agreements and Decisions (SEAD). The MOU signing ceremony was held at the American University in Kosovo and it was attended by the Kosovo Judicial
Council, the Ministry of Trade and Industry, and representatives of the business community. Present at the signing memory was also Ms. Patricia Rader, USAID Mission Director. Through this MoU an Arbitration Tribunal will be established at AmCham for the binding resolution of commercial disputes. AmCham and SEAD are currently working on the establishment of the Arbitration Tribunal at AmCham. The aim of this joint cooperation is to offer businesses alternative means of dispute resolutions. As a result of this cooperation, soon our members can take advantage of this service and find more effective means of dispute resolutions. At the same time, the aim of commercial arbitration is to make Kosovo a more attractive business environment for foreign investors. The benefits that stem from the introduction of this service at AmCham are of great importance for both local and international businesses.
ADR in Kosovo: Resolving Business Disputes: A new Approach
The speakers panel at the ADR Conference
On September 28, 2010 AmCham in cooperation with the USAID| Kosovo Systems for Enforcing Agreements and Decisions (SEAD) Program organized a conference on the topic “ADR in Kosovo: Resolving Business Disputes: A new Approach.” The purpose of this conference was to observe the concrete steps that are being undertaken in order to establish forums for Alternative Dispute Resolutions (ADR) in the Chambers of Commerce. Some points of discussion at the conference were international best practices and their application in Kosovo; and the recognition and enforcement of arbitral awards in Kosovo. Moreover, the conference presented the opportunities and advantage of ADR in Kosovo.
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AmCham Events
New Year’s Charity Event Since its inception, aside from actively lobbying for a better business environment in Kosovo, AmCham has also made sure to contribute to the overall wellbeing of the community. It has become a tradition at AmCham to annually organize charity events with the sole aim of helping those in need. This year around, AmCham organized a New Year’s Gala Dinner in order to collect funds for finding cures for children who are diagnosed with cancer. While listening to the beautiful voice of nationally acclaimed musician Kastriot Tusha, and the good beats of Etno Classic Band, AmCham members and friends danced away and enjoyed a good party, while at the same time helping those in need. Apart from dancing and enjoying, the participants also had the opportunity to hear an encouraging story from a doctor who had, in her early childhood, been diagnosed with cancer. Her story of
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survival was truly encouraging and increased the participant’s sympathy for this cause. There were several forms through which participants were able to contribute and donate. The initial contributions came directly from the purchase of a ticket for the Gala Dinner. AmCham also organized an auction for paintings from different Kosovan artists, and one for handmade jewelry. Charity Checks were also available in which participants had the possibility to write down the amount of money they wanted to donate. AmCham proudly announces that the total number of financial means collected from the organization of this charity event was approximately 30.000 Euros. We thank all the sponsors of the event and the people of goodwill who spared their time and money in order to help those in need. For only through improving the lives of those around us, especially children, can we hope for a better common future.
New Members
Post and Telecommunications of Kosovo J.S.C. Patron Level
On the 21st of December 2006, the Post and Telecommunications of Kosovo J.S.C. celebrated the 47th anniversary of its foundation. The Post, Telephone and Telegraph of Kosovo were established in 1959 under a Decision no. 1115497/11959 of the Steering Council of Yugoslavian PTT Communion. Then, as of 13.09.1990 all the Albanian employees and other minorities who disagreed with the politics of Milosevic were driven out of their workplaces by force. During the war all the office items and assets of the PTK were stolen, demolished, and some of them completely damaged. After the war, negotiating teams of the PTK, KFOR and UNMIK enabled the legal return of employees to their workplaces. At that time, postal services were unfeasible whereas the Telephony and Telegraphy of Kosovo as well as international connections were almost inoperative. After 6 years of efforts, PTK has established the following three business units: Post of Kosovo, Telecom of Kosovo, and Vala mobile network operator. These three business units of the PTK are licensed by the Kosovo Telecommunications Regulatory Authority. On 29 June 2005, PTK was transformed into a joint-stockcompany under the new name of PTK J.S.C. PTK J.S.C. currently has a five year business plan with an investment of 550 million euros. Vala mobile network operator is already providing a variety of services to its customers. Vala has expanded its mobile network in almost 90% of the territory of Kosovo, and it has for a long time now been providing GPRS (general package radio service), MMS and SMS services to all its customers. PTK J.S.C. signed a contract with UNMIK Railways to expand optical cables/fibers through railways. The contract signed with Alcatel in the summer of 2005 will also expand and advance the fixed network to an NGN (Next Generation Network). In 2004, the PTK Management convinced UNMIK to submit a request to the ITU (International Telecommunications Union) for the approval of the international telephony code for Kosovo. Training and Development Centre was established, and it supports the improvement of the PTK employees, wherein daily trainings in accordance with international standards are being held.
The incorporation process of the PTK and its transformation into an internationally recognized jointstock-company is a merit of the PTK management. PTK, as a joint-stock-company, has a clear future vision and mission. Mission of the PTK is: “To always be the leader in providing superior (communication) services that improve the lives of all Kosovars, through the passion of our people and leveraging proven cutting edge technologies. To be the driving force in creating prosperity for the nation and enriching the lives of Kosovars everywhere”. Whereas our Vision is: “To be the driving force in creating prosperity for the nation and enriching the lives of Kosovars everywhere”. Post and Telecommunications of Kosovo J.S.C. has since July 2005 launched its web-site: www.ptkonline. com, wherein all those interested may look through the latest offers and developments of the PTK J.S.C. to include the actual PTK facing problems. PTK J.S.C. has approximately 2.480 full-time employees and following is the organizational structure. Apart from three main units, PTK J.S.C. also has following support units: Finance Department, Commercial Department; Procurement Department, Legal Affairs Department, Human Resources Department, Training and Development Department and Corporate Communications Department. Lack of international telephony code is the cause that still impedes the development of the PTK, in comparing with other operators in the region and farther.
Bechtel Enka Joint Venture Corporate Level
The Bechtel Enka Joint Venture brings an unrivalled depth of experience and knowledge gained from executing complex projects all over the world. Working together as an integrated team, the Bechtel Enka Joint Venture has successfully completed projects across Europe and Asia for several decades. Bechtel and Enka have completed over 28,000 kilometers of highways and roads, 100 tunnels totaling 350 kilometres in length, and 25 major bridge projects. This enduring relationship is testimony to our joint commitment to continue the successful delivery of projects. For more information about Bechtel visit www.bechtel.com and for more information about Enka visit www.enka.com. THE HORIZON
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New Members
Amber L.L.C. Medium Business Amber L.L.C. is proud to introduce and represent Haworth in Kosovo, Albania and Macedonia. Haworth is a world market leader in the design and production of office worlds that can be easily integrated in all environments. The company is represented in more than 120 countries and maintains development and production facilities in China, France, Germany, Italy, Portugal, Spain, Switzerland, India, Canada and the USA. All Haworth products are characterized by global trend developments and reflect a constant endeavour to continue developing. Haworth in collaboration with Amber LLC has created a company in Kosovo that stands for absolute customer satisfaction, technical advancement, and innovative design as well as living a clear sense of responsibility for the environment. Haworth products can be constantly adapted to perfectly suit the perpetually changing external conditions in which they are used; the customer can therefore be sure that the products will enjoy long-term use.
INTERLEX ASSOCIATES Small Business The office was formed in Prishtina in 2003.The diverse backgrounds and experiences of our attorneys allow us to provide a wide range of quality legal services for our clients. We know the local languages and are familiar with the legal situation in Kosovo, both past and present. Our firm is composed of three partners and one associate lawyer and additional staff including two legal assistants, and an accountant. Other attorneys cooperate with our law firms in an of Counsel capacity on large complex projects. GOALS: The firm was founded on a commitment to provide quality legal representation in different fields. Our goal is to serve all investors in Kosovo and provide them with all legal support in their endeavours to establish their businesses in our country; in this regard we undertake legal research and advising, as well as legal representation of Companies, Agencies and Institutions, in their pursuit of commercial legal matters. We have taken part in some of the Privatization Projects (Ferronickel Plant etc), Bank Purchase Processes (NLBNova Ljubljanska Banka etc.) and Law Drafting Projects (Business Registration Law, Petroleum Law and Mining Law etc.) for UNMIK and the Kosovo Parliament. In 2007 and 2008 our office participated in the World Bank Project “Doing Business” for the Republic of Kosovo. 36
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OUR AREAS OF SPECIALITY ARE: Commercial Law, Civil Law, Property Law, Contract Law, Investment Law, Torts, Litigation,Banking Law, Customs Law, International Business Law and Administrative Law. OUR CLIENTS: Presently, we are working and representing clients such as: • New Co Ferronickel Complex L.L.C., from Republic of Kosovo, • ROKAS from Greece, • Deloitte Kosovo L.L.C., from Republic of Kosovo, • White & Case in London and Prague, • USAID, • CHEZCompany from Check Republic, • Wolf & Thiess and Austria Mobilkom from Austria, • Krka- Novo Mesto and Nova Ljublanska Banka from Slovenia, • Colgate Palmolive, • Church Development Fund Inc.,United States, • American Schools International Incorporated Inc., from USA and Kosovo and • Other investors and companies from Italy, Great Britain, Macedonia, Albania, Greece, Germany, USA and other companies, which have commercial activities in Kosovo, participating in the privatization process or which have other business activities or business relations with Institutions and Businesses in the Republic of Kosovo. Some of our clients, such as New Co Ferronickel Complex L.L.C are the best investment stories in Kosovo. This company presently has more than 1000 employees.
BUSINESS ENABLING ENVIRONMENT PROGRAM IN KOSOVO (BEEP) Small Business The Business Enabling Environment Program in Kosovo endeavors to unleash the individual economic potential through Business Environment Improvements in harmony with national and municipal counterparts, the private sector, and donor partners. Through direct support of relevant counterparts, this project will facilitate the improvement of rules and regulations, reduction of barriers to trade, and decreasing the risks of lending in the Kosovo Business Environment. BEEP is a three year activity to (1) remove barriers to business start-up, operation and expansion through reduced, simple, and justified free market-oriented laws, regulations and implementation procedures to facilitate economic growth, and (2) improve government and private sector knowledge
New Members of the laws and regulations to increase clarity, reduce arbitrary application of government power, and to improve the ability of counterparts to effectively participate in transparent advocacy and policy making. The program has three main assistance objectives which include the following: • Improved Rules and Regulations: Simplifying and streamlining the regulatory framework applied to business to provide a stable, clear, minimally-intrusive legal operating environment for business, implementing sound government procurement practices to increase business accessibility and tender efficiency. • Reduced Barriers to Trade: Reducing trade barriers through improved trade policies, access to information, and capacity building. • Reduced Risks of Lending in the Financial Sector: Increasing the amount and quality of information available in the credit registry to improve lending decisions and reduce credit risk and borrowing costs. • The overall objective of the project is a business enabling rather than a business controlling environment, through which government impartially administers a simple, justified, and transparent framework in which current and future individual entrepreneurs can freely operate to pursue and realize their maximum economic potential.
Crimson Finance Fund Small Business Crimson Finance Fund is a lender licensed by the Central Bank of Kosovo, and provides working capital and other short term finance to SMEs in a wide range of industries. The principal product is Purchase Order Finance (POF), which enables a business to pay for raw materials, packaging, transportation, direct salaries, etc., to fill orders for its products. Loan amounts range from 10,000€ to 100,000€. Loan maturities depend on the transaction cycle from time of order to payment by the final customer and the cash flow patterns of the company, and range from 30 days to one year. The CFF approach helps SMEs increase sales and profitability, improve their reputations as reliable and prompt suppliers to their existing customers, and attract additional customers.
Kosovo American Education Fund Nongovernmental Organization • KAEF offers graduate fellowships at American universities to talented Kosovars who demonstrate a strong commitment to the development of their country. • An investment in KAEF will lead to long-term economic growth and better jobs for all Kosovars. • KAEF enjoys the strong support of the Kosovar business community. KAEF serves as a catalyst for the sustainable development of a democratic Kosovo by investing in motivated, talented individuals with leadership potential, and providing them with graduate-level fellowships at top universities in the United States. Returning to Kosova, our graduates assume positions of leadership in public and private organizations, with the expectation that, overtime, they will become leaders in Kosovar society – both as individuals, and as members of an ever-growing network. The KAEF program has two goals: one immediate, the other ultimate. The immediate goal is to empower KAEF Fellows themselves — talented young men and women who possess the talent but lack the resources to pursue their education at the world’s best universities. The program aims to provide them with the most advanced and relevant expertise for their careers as leaders within Kosovo. The ultimate goal of KAEF, however, is to create change in the institutions of Kosovo themselves: in the ministries, the businesses, the nonprofit organizations, the donor agencies, the international corporations, the media, the parliament, the courts – in short, in all of the institutions that make up the fabric of Kosovar society. By providing intensive and high quality education to the future leaders of these institutions, KAEF will engender the reforms necessary for Kosovo to take advantage of its natural and human resources and build a sustainable, stable, and independent democracy. This educational program is administered by American Councils for International Education. For more info, please visit www.kaef-online.org.
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AmCham 2010 in pictures
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AmCham 2010 in pictures
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Internet on mobile - GPRS, now twice as fast, for the same price! With new Internet on mobile (GPRS) packages, you will log on to your every important information regarding your business, directly from your personal phone, now with multiple speed for the same price. Internet on mobile packages (GPRS): Package
Transfer
Price
GPRS Biz 100
100 MB/month
3.00 EUR
GPRS Biz 500
500 MB/month
5.00 EUR
GPRS Biz 2000
2000 MB/month
10.00 EUR
MOBILE THE 40 TELEPHONY
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Visit our business centers and choose one of our business package suitable for your communication needs.