Issue 17

tH TheHorizon august 2012

Bi-annual magazine published by the American Chamber of Commerce in Kosovo.

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Farewell Note by U.S. Ambassador in Prishtina Pg8-9 • Energy and Mining Sector is a Priority for Economic Development Pg10-11 • Trepça – Driver Of The Development For Mining And Metallurgical Sector Pg 12-13 • VAT exemption on Electronic and Printed Media Pg 16

Energy and Mining Potentials for Economic Development

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BOGA & ASSOCIATES LEGAL TAX ACCOUNTING

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www.bogalaw.com ALBANIA Tirana: Ibrahim Rugova Str., P.O. Box 8264 Tel: +355 4 225 1050 Fax: +355 4 225 1055 KOSOVO PRISHTINA: Nene Tereza Str, Entry No. 30, No. 5.

Tel: +381 38 223152 Fax: +381 38 223153

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In this Issue of Horizon: Farewell note by the U.S. Ambassador in Prishtina, H.E. Christopher Dell...................... 8-9 Energy and Mining Sector is a Priority for Economic Development..................................10-11 Trepça – Driver of The Development For Mining And Metallurgical Sector................12-13 VAT exemption on Electronic and Printed Media..16 AmCham News: Rivisiting Kosovo Business Agenda..................... 20 Policy and Legislative Highlights........................ 21 One year of Arbitration in Kosovo........................ 22 Kosovo CSR Network........................................... 23 AmCham Events................................................. 24 AmCham New Members..................................... 29 Member News & Achievements........................... 34

Issue number 17 The Horizon is the official magazine of the American Chamber of Commerce in Kosovo. Every publication contains a different theme focus on economic perspective in Kosovo. The Horizon is distributed to a broad audience including AmCham membership, decision makers, diplomatic representation, donor community, US Chamber of Commerce in Washington D.C., European Council of American Chambers of Commerce based in Brussels, and other relevant stakeholders. The content of this publication does not necessarily present the opinions and positions of the American Chamber of Commerce in Kosovo. Disclaimer: Theme photographs presented in this magazine are not property of AmCham Kosovo.

INFO Published by: American Chamber of Commerce in Kosovo; Fehmi Agani St. No. 36/3, 10,000 Prishtinë, Republic of Kosovo; Tel: +381 38 246 012; www.amchamksv.org; info@amchamksv.org; Editor-in-Chief: MA. Nora Siqeca Assistant: Fjolla Kondirolli

AmCham Board of Directors

Erolld Belegu President of the AmCham Board of Directors

David Greer Vice - President of the AmCham Board of Directors

Dastid Pallaska Secretary General of the AmCham Board of Directors

Agon Gashi Treasury of the AmCham Board of Directors

Ardiana bunjaku SCAAK

Agim Bekaj Microsoft Corporation

Driton Zairi Kosova Motors

Ilir Ibrahimi AUK

Jerry Rexha Devolli Corporation

Lekë Musa BU & Partners

Michael Mix Bechtel & Enka

Arian Zeka Executive Director, AmCham 3

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Patron Members

Members 3CIS J.S.C • ACDC-KOS sh.p.k • Agani Ltd • Alcatel Lucent • American School of Kosova – ASK • American University in Kosovo – AUK • ARFA • ARS Travel • Arta-VM • Asgeto • Asha • Asseco • AVC • Avokatura IOT • Banja e Kllokotit/Uji Kllokotit • Banka Ekonomike • Banka Kombetare Tregtare • Banka për Biznes • Bechtel-ENKA G-P • Birra Peja • Boga&Associates • Bonus • Booz Allen Hamilton Inc, Kosovo Branch • British Airways • BU&Partners • Buçaj • CEED Kosovo • Cheeci and Company Consulting • Compact Group • Conin • Crimson Finance Fund • Dardania • Delfini LTD • Deloitte • Devolli Group • Doctor Exterminator • Ecotrade • Elkos • Elting • Emerald Hotel • English Center • Eskavatori • Exclusive Group • Gorenje Niti Tiki • Grant Thornton • Hotel Nartel • Hotel Prishtina • Hotel Sirius • Hotel Victory • Ilir Kosova • Individual-Arber Sherifi • Individual-Diamant Rrahmani • Individual-Gail Warrader • Individual-Hana Cakuli • Individual-Kanarina Shehu • Individual-Linda Shala • Individual-Merita Kostanica • Individual-Mimoza Kusari Lila • Individual-Zana Haxha • Informatika Computers • Interlex Associates • Intermarket • IPKO Telecommunication L.L.C. • KAEF – Kosovo American Education Fund • Kalo&Associates Kosove • Kerasan • Kolegji Universitar Victory • Konet • Kosova Motors • Kosova Petrol • KPMG • KWE-Kosova Water and Energy • Llamkos GalvaSteel • Marigona Residence • MDA • Mercom • Mercycorps • Metal Group • Metton Reklama • Microsoft • NPG - New Promotion Group • Pallaska&Associates • Patroni • Pestova • PharmaSwiss SA • PR Solutions • PricewaterhouseCoopers • ProCredit Bank • Proton Cable • Raiffeisen Bank • Recura Financials • Red Consulting • RIMA Eng • Rrota- Shtepia Botuese • SA&MA • SCAAK • SCLR Partners • Semitronix Center • SIGAL UNIQA Group Austria • Sigma Accounting and Consulting • Sole Kosova • Sport In • Technology Transfer Associates • Triangle Branch Kosova • Trokit • UniProject • Universiteti Iliria • USAID - BEEP • VEV Group • VIP Travel • Vitaminka • Viva Fresh • Western Union • Xhad Studios 4

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Editorial Dear members, friends, and readers, I feel privileged to have the opportunity to reach you and analyze different topics that affect our daily business life. Having in mind the remarkable significance the energy industryhas in our economy, we have decided to focus this issue on the Energy and Mining, while emphasizing its Potentials for Economic Development.

Ma. Nora Siqeca Communications Manager AmCham Kosovo

To describe in few words the relationship of the energy and economic development, I would simply quote the CEO of Royal Dutch Shell, Professor Peter Voser saying: “Energy is the “oxygen” of the economy and the life-blood of growth.” It is fairly easy to understand how globalization and market liberalization strengthened businesses in past decades. Nevertheless, we sometimes forget the crucial role of energy playing in our daily lives and business activities. Lights, heat, power are the essentials for human life, without them neither office would have been built nor would internet exist. As a result, energy is the heart for development and growth; however, the question is: “In What Ways Does Energy Sector Impact the Economic Development and Growth? I will try to answer the question by focusing on: Energy Creating Jobs and Energy as an Input to all Goods/Services.

First, in order to produce energy we used labor and land, which indicates that the energy directly affects the labor market. Jobs created may be categorized in directly – individuals employed in the construction and maintaining phases of the plants – and indirectly – individuals employed in the industries that provide the energy sectors with goods. The sustainability of the jobs created, however, changes according to the power plant lifecycle; that is, during construction phase more jobs with wider variety of professionals are created. On the other hand, during the maintenance phase fewer people are employed but in longer term contracts.

Second, electricity is input for goods/services in the economy, an increase in electricity prices would affect whole economy. For instance, increasing the electricity price will increase the business expenses, consequently increasing the price of the final product. Therefore, maximizing the number of jobs in the electricity sector is not likely to be an efficient way to develop a nation’s economy. Using more resources to produce the same level of economic output is may have a negative. Relatively, lower and stable energy prices help stimulate the economy, reduce expenses for consumers and businesses, increase disposable income that can be spent in other ways.

Finally, it is Government that shall focus on regulating energy prices, ensuring energy supply, and protecting environment when developing national energy policies, strategies, and other regulation documents. In this regard, Minister of Economic Development, Besim Beqaj, and the former director of Trepca, Ferat Shala, will be elaborating the vision and the strategy of Kosovo’s Government for the Energy and Mining sector.

I sincerely thank the contributing authors, along with the AmCham members for their continuous support!

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Note from the Executive Director Dear members,

Arian Zeka Executive Director AmCham Kosovo

As the new Executive Director of the American Chamber of Commerce in Kosovo, I feel very privileged and honored to have the opportunity to serve you, together with the excellent staff of the organization. We have been together for three years and we have done great things in trying to eliminate the doing business barriers and helping the country create a better economic and social perspective. Nevertheless, we are aware that more needs to be done to address all the issues and concerns that the business community in Kosovo faces and AmCham will remain a strong Business Voice for Growth. Therefore I also feel greater responsibility for the things that await us in the future.

The first half of 2012 has been very busy for us at the AmCham Kosovo. Thanks to the continuous support and feedback that we receive from you, we have been able to prepare and present several position papers in which we raised many issues of concern for the business community. Our continuous calls for the establishment of the National Economic Development Council have been fulfilled and we are doing our best to make the Council an effective body for addressing and resolving the doing business obstacles and bottlenecks, in order for the country to be able to attract more investments, and thus create a better future for everyone with more growth and jobs. At the same time, we will continue to promote the values of corporate social responsibility by helping the Kosovo CSR Network expand its membership with new businesses that will embrace the ten principles of the Global Compact.

Almost 30 new companies have joined AmCham in the first half of this year. We are proud to see that there is an increased trust and confidence in the work of AmCham, thus enabling us to improve the cooperation with the business community and also fulfill our motto. As Kosovo’s business voice for growth, we welcome you to our club and encourage you to use our services, expand your businesses and contribute to our common goal: economic development and prosperity for the upcoming years.

Our team remains at your service!

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Farewell Note by the U. H.E. Chrispher Dell

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H.E. Christopher Dell Ambassador U.S. Embassy in Prishtina

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he study in contrasts between the beginning of my assignment in Kosovo and the end could not be more marked, and, mostly I can say, happily so. When I arrived in the summer of 2009, Kosovo was a one-year old state; back then, we faced an uphill battle on securing international recognitions and Kosovo’s territorial integrity. Three years and dozens of recognitions later, Kosovo is a secure feature of the international political system with nearly 90 recognitions, membership in the World Bank, the International Monetary Fund, and participation in a host of regional fora. Soon, we hope to see Kosovo included in other international organizations, such as the European Bank for Reconstruction and Development (EBRD) and the International Civil Aviation Organization (ICAO).

The past few years have also brought slow but meaningful technical rapprochement with Serbia.

Kosovo’s professionalism in the Dialogue talks brought about agreements in critical areas, including customs, trade, regional fora, and freedom of movement. Like you, we are not fully satisfied with the implementation to date. We will continue to work with the government of Kosovo and our international partners to push for implementation of these agreements. Overall, I assess the progress made by Kosovo in the political and technical sphere to be well more than a glass-halffull story. Compared to my first assignment in Pristina after the 1999 war, the progress is more remarkable.

Moving on from the essential phase of interna-

tional security and independence, Kosovo is now in a new phase of its development, one that is no less important than international legitimacy – indeed, it is the yardstick by which many in the international community and here at home will judge the success of Kosovo’s enterprise. And here I am speaking about economic growth and job creation. Employment is the best reflection of the health of a nation. We know this in the U.S., it is apparent in Europe, and it is applicable to Kosovo as well. To see Kosovo truly reach its full potential and secure a bright future, the same intensity of purpose that characterized the struggle for independence and the fight for recognition must now come home to characterize the government’s economic efforts for all of its citizens.

While I leave here encouraged that the government has taken basic steps to establish a free market economy – for instance in establishing the Economic Development Action Plan, I confess my concern that the government has not done enough to win the people of Kosovo over to the principles and the potential of the free market.

There has not been enough outreach by the government to the private sector – its natural partner in producing economic reforms and – ultimately – job and wealth creation. We have encouraged the government to embrace the private sector – representatively through its chambers – to tap into the incredible amount of talent, drive, and vision that is native to Kosovo’s entrepreneurs.

Their development and general private sector growth remain top U.S. priorities. To the govern-

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.S. Ambassador in Prishtina, ment’s credit, the chambers’ representation on the newly formed National Economic Development Council (NEDC), capably led by Deputy Prime Minister Kusari-Lila, is a tangible sign that things are moving in the right direction. But that is not enough.

We need to see cooperation on a wider scope of issues, closer collaboration, and a real effort by the government to see the economy of Kosovo as an integrated whole, one where individual reform efforts are connected, and where there is a collective, determined mindset to bring about full economic transformation. With the footprint of the international community growing ever-smaller, and economic drag in Europe, this is a golden opportunity – and one both sides need to seize if Kosovo is to reach a sustainable level of economic performance.

Trade and foreign investment are the lifeblood of any free economy. Many of us were relieved to see the resumption of trade after the September 2 agreement in Brussels and Serbia’s acceptance of an independent Kosovo’s customs stamp. But we also need to see a more concerted effort by the government to market and incentivize local production, both for the domestic and the export market. There is no reason why Kosovo, with its rich natural resources, cannot competitively market itself as a top tier producer of consumable items in the region. Now is the time to brand Kosovo to your neighbors and show off the many products and resources that they, your closest neighbors, can buy and invest in. Individual agencies currently share this responsibility, but the effort is fragmented and incomplete. I’m just thinking out loud here, but what about establishing a ministry post whose writ would focus on branding all aspects of Kosovo’s potential to the region, to Europe, and to the broader world, including the U.S.? Foreign investment is a central plank in remaining competitive in the 21st century. I would be heartened through these efforts to see Kosovo attract an international hotel or marquee brand restaurant in the next one to two years.

This is a very achievable goal, and one that will bring untold job opportunities as well as serve notice to other investors that Kosovo is open and welcoming to international business.

A facet of the economic liberalization process that I think

gets short shrift is privatization. Too many people still do not fully understand that in a free market society the government is not the best placed owner of valuable marketable assets. Privatization mobilizes national assets for further growth and job potential. There is more than a financial dividend that comes from this – the average Kosovar will know that the government is not spending his or her hard-earned “tax dollars” and scarce resources on institutions that the free market can better run and innovate on for the future. A perfect example of this is the Telecom Company, PTK. If you look around Europe, you will see that few states remain majority shareowners of telecom carriers, and that includes in this region. The reason is simple: States can license and regulate telecoms, but they are not the best placed institutions to run them.

A holistic, integrated approach that incorporates and utilizes these individual facets would, I think, mark a significant turn-around for Kosovo’s economic vibrancy and breathe fresh life into the entrepreneurial spirit of this country.

In my remaining words, I want to take just a few lines to thank AmCham Kosovo for its untiring pursuit of defending the free market, always going the extra mile to faithfully represent the interests of U.S. and Kosovo companies, and your willingness to be proactive, innovative and approachable in your work with the government – all for a better life for Kosovo. From ensuring a fair public procurement process to helping reduce the number and kind of licenses needed to operate a business here, to speaking up for the interests and the transformative power of free enterprise on the NEDC and elsewhere, AmCham has more than lived up to its brief.

The events and meetings I have shared in with AmCham over my last three years have been among the most rewarding of my time here in Kosovo. I would like to commend the board and the new president for the seriousness of purpose with which you have pursued your mission, and the support that you have shown to my mission. Know you will always have a friend and someone who cares deeply about your work, and feel secure that I leave you in good hands.

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Energy and Mining Sector is a Priority for Economic Development Besim Beqaj

Minister for the Economic Development Pursuant to the Constitution of Republic of Kosovo and in line with the vision for sustainable economic development, the Government of Kosovo is determined for a structural economic reform, functionalizing of the market economy, strengthening of the private sector, for high professional and institutional norms serving the sustainable economic growth and job creation.

One of the priorities of the Government of Kosovo and the Ministry of Economic Development is the development of the energy sector.

Development of this sector should be accomplished through three basic goals – secured and regular power supply, cost affordable electricity generation for the citizens and implementation of international environment-protection standards.

Kosovo Energy Strategy 2009- 2018 and Government Economic Vision, dating April 2011 envision the construction of new the generating capacities, known as New Kosovo Project.

New Kosovo

Implementation of this project is necessary since it provides security of power supply, elimination of power cuts, reduction of electricity import, replacement of the outdated Kosovo A power plant, ensur-

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ing sustainable domestic power supply and fulfillment of annual consumption growth of 6.87% per annum.

In order to serve this concept, the Project Steering Committee approved and submitted on March 7, 2012 the Request for Proposal for the New Kosovo Project to the pre-qualified investors.

Initially the project envisaged a generation capacity of 2 x 300 – 350 MW, opening of Southern Sibovc mine in order to supply the existing lignite-fired power plants and inclusion of the private sector in the Kosovo B power plant.

In meantime the Project steering Committee, competent for leading the Project has received opinions and various demands from pre-qualified investors and relevant stakeholders. All these opinions were handled and analyzed successfully and the Committee rendered the conclusion that pursuant to the energy strategy, the developmental plan of Kosovo and the longterm interest of Kosovo citizens to remove the Kosovo B power plant from the existing bidding package and to analyze the best options for inclusion of the private sector in Kosovo b power plant.

It should be emphasized that the development of the Project components should be fulfilled in line with EU Directives and other international best practices of the mining aspect and the aspect of electricity generation, in line with World Bank standards, utilization of the most advanced

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available technology for cutting the emissions and should also be in line with the international best practices for managing the social, economic and environmental impacts.

Privatization of the KEDS

The principle of transparency, competition, and equal treatment of all interested companies, open discussion with national and international stakeholders, professional work, maximum utilization of natural resources, protection of the labor interests, long-term investments which improve the supply infrastructure, elimination of state guarantees and subsidies for non-collection, reduction of commercial and technical losses, are the basic principles of the privatization process of KEK Electricity Distribution and Supply (KEDS) privatization.

It should also be noted that contribution to this process was provided by relevant institutions, stakeholders and international community.

The privatization of KEDS is in line with the Kosovo Energy Strategy. The value of KEDS has not been set by the value of assets, but the regulation of the approved energy of the Energy Regulatory Office, which define the allowable return for KEDS for its regulated assets and the profit margin which is allowed for Public Supply. At the same time, the Kosovo Budget is saved from provision of subsidies which would reach the amount of 50 to 100 million Euros for 5 years. At the same time, regarding investments in the network, it is worth mentioning that the winning consortium Calik & Limak will invest around 300 million euro.

The development of the mining sector is also a priority for the Govern-

ment of the Republic of Kosovo, respectively for the Ministry of Economic Development.

The cornerstone for the development of the mining sector in Kosovo is the Mining Strategy for 2012-2025.

The strategy was drafted in accordance with the economic vision of the Government of Kosovo, where sustainable economic development, the approval of the adequate mining legislation, structural economic reforms and the education of the new generations in this sector are the basis for Kosovo’s economic future.

This strategy is based on four main pillars: The establishment of favorable conditions for the utilization and valorization of mining resources and attracting investments Kosovo’s institutions will develop a clear legislation and sector-specific policies, with the aim of supporting and developing the mining sector.

This legal basis will enable the continuation of restructuring the existing mining sector, the enhancement of its competitive prospects in the local and international market, and will enable the creation of new perspectives for using and processing mineral resources. The valorization of mining resources/reserves implies making use of Kosovo’s mineral resources – especially lignite, lead and zink ores- for driving forward a genuine economic development of the country.

Building the necessary human and institutional capacities in the mining sector

Building the capacities of relevant scientific and educational institu-

tions will enable the development of the mining industry vis-à-vis market demand and international standards. Kosovo has inherited a human capital with valuable professional expertise in this field; however, the need for the further development and updating of their skills is imminent, in order to ensure sustainable development of the institutions and of the sector overall.

Social Issues and Community Benefits This strategy also defines actions and initiatives for trainings of the mining sector based on Kosovo’s advantages, in order to make sure that the development of the mining sector has direct effects in the life of citizens, as natural owners of these resources. Community participation, the employment of locals and the development of local infrastructure will have important social impacts and will stimulate regional development in Kosovo.

Environmental Protection

A friendly and healthy environment is of primary importance to Kosovo citizens. Consequently, we consider environmental protection to be of high importance, and we guarantee the undertaking of necessary measures to minimize negative environmental effects from mining activities.

The aforementioned pillars contain objectives, development policies, and actions. The objectives are categorized by detail in this strategy, whereas development policies will establish a framework for sustainable economic development and friendly treatment of the environment by supporting the research, exploitation, and processing of mines, as well as the development of the overall mining sector in Kosovo.

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Trepça –

Driver of the Development For and Metallurgical

Mining

Sector Ferat Shala

Former Managing Director of Trepça It is necessary for Kosovo, as the newest European country, to rapidly develop and reach economic stability. To achieve the aimed sustainable development, Kosovo shall set priorities for development sectors. One of the development sectors it shall focus is that of Mining sector.

Trepça as an enterprise with over 80 years tradition and as mineral deposits of lead (Pb),zinc (Zn), gold (Au), silver (Ag) and other minerals, should have the main role in development of the mining and metallurgical sector. This is, because Trepça possesses considerable mineral reserves, experts, qualified technicians and miners.

Nonetheless, this enterprise shall undergo internal reforms in order to work in full capacity; these reforms and advancements involve utilizing part of the processing industry, investing in zinc electrolyzes (investment of approximately 30 mil. Euros), and renewing the lead metallurgy (depending on technology invested, it may it may cost 12

to 50 – 60 mil. Euros). Developing a clear strategic plan based on the economic and scientific parameters and completion of the legislation would create opportunities for development of the most strategic sector of the country – the Mining Sector. In this development strategy, the state-public and private, domestic and international capital would be incorporated.

The state-public sector which is represented

by Trepça, regardless of the difficulties faced during previous years, presents gret potentials for economical development. Meanwhile, the private mining sector, which is developing by obtaining licenses by local and international companies, will develop even more rapidly when the Areas of Special Interest will be tendered for geological explorations by the Government of Republic of Kosovo.

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The first phase of this development would include the rehabilitation of all Pb-Zn Mines, such as: Hajvalia Mine, Badovc Mine, Kishnica Mine and Çuka e Batllavës. Following the war, the mines were neglected and soon were flooded which cased erosion and raised the gas levels. These mines still possess reserves of colored metals; the increasing market demand and price for colored metals, make the rehabilitation of mines is a necessity. Initially, the rehabilitation involves unloading the millions of m3 water, airing, and cleaning wastes of demolition in the corridors. Afterwards, the need for machinery and equipments shall be indentified depending on the mining methods to be applied. All these tasks require proper and multilateral study, which would also calculate the cost for rehabilitation for these Mines.

Meanwhile the exploration of licenses must be granted for all Areas of Special Interest, in particular for the Pb-Zn. Based on the preliminary studies, the Areas of Special Interest, as defined by the Ministry of Economical Development, show high premises for potential mineral deposits. Certainly, advanced explorations should be done after the MED would

put them in public tender. Mines that would be to be opened eventually, could be a potential partner of Trepça enterprise, to process ores and metallurgy of the latter. This would create cooperation advantages to private companies of mining sector, since they would not require building enrichment and metallurgical factories, but would enter in partnership with the Trepça.

The second phase would include modernizing of processing technologies for existing flotation plants, such as in: Kishnicë, Tuneli i Parë, Leposaviq; however, with improved capacities.

These flotation, or enriched mining factories, would become available for processing the ore minerals of the private sector.

(Areas of Interest). Trepça enterprise has planned for this year 2012, to modernize its enrichment factories in Kishnicë and Tunel i Parë.These enrichment factories, respectively, floatation will be highly advantageous compared to the old ones; they would spend up to 30% less electricity, will increase the rate of recovery for metals, meanwhile will spend less chemical reagents, be more ecological, and gain concentrates with high quality parameters.

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The third phase would involve rehabilitation of lead and zinc metallurgies with modern technology and parameters, while taking into consideration the environmental factor, these metallurgies would be available to the public sector - Trepça, including the private sector, either local or international. areas of Special Interest

Trepça Mines

Stantërg

artana

Gumnishtë

Vllahi-Zjaçë

Hajvali

Crnac

Karaçë

Bushincë-Bolec

Badovc-Kishnicë

Belo Brdo

Bresalcë

Zhegovcë

Çuka e Batllavës

Floatation in Kishnicë

Floatation in Tunel të Parë

Pb – MetallurgyZ

Floatation in Leposavic

Zn – Metalurgy

Fig.2. Organisational scheme of mining and processing of Pb-Zn ore resources.

We believe that following this path for developing the mining sector, Kosovo’s state and its economy would maximize its profits starting from the mineral resources till the production of metals, which would contribute to job creation as well. Furthermore, the state budget would highly benefit from profit taxes and mining rents. Meanwhile, export parameters of Kosovo would increase tremendously. These steps and strategic moves for national economy, are favored like never before,

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and this is due the international market being very consolidated and increasingly interested for colored metals. This increase is impacted by Asian countries, like China and India as big consumers of the colored metals.

Private sector investments, naming mining sector in general and outside of Trepça capital, would bring stability and credibility in the other sectors of the economy. So, the development benefits would be multidimensional.

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VAT exemption on Electronic and Printed Media Ruzhdi Zenelaj

Head of Tax & Legal Department – PwC

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ew amendments to the VAT Law affecting Electronic and Printed Media companies came into force with effect from June of this year.

The Government of Kosovo, respectively the Ministry of Finance announced that these amendments, amongst others, include the exemption from VAT of Electronic and Printed Media. After this announcement it appears that Electronic and Printed Media companies have generally started to apply the exemption from VAT on services provided by them.

There is however in my view a misunderstanding on the part of Electronic and Printed Media companies in this respect.

Firstly, according to these amendments the VAT exemption has been provided for goods imported for or by Electronic and Printed Media companies used only for their purposes.

In other words, goods imported by Media companies will not be subject to VAT at the customs clearance. Furthermore goods imported from other companies on behalf of Media companies will not be subject to VAT at the customs clearance either. In order to benefit from the VAT exemption on clearance of imported goods, companies that import on behalf of Media companies are required to have an exemption permission issued by the Tax Authority.

Secondly, the VAT exemption has been provided for the supply of services made for Electronic and Printed Media companies. In this respect, Electronic and Printed Media companies are entitled to receive services (excluding goods) exempted from VAT. As a consequence, companies which are providing services to Electronic and Printed Media companies shall not charge VAT. The companies supplying such 16

services to Electronic and Printed Media companies are not entitled to credit input VAT for such supplies of services. In this case, they have to apply a restriction of input VAT Credit.

Taking into consideration the above, Electronic and Printed Media companies are exempted from VAT only in case of importing goods and buying services inside Kosovo.

Significantly, Electronic and Printed Media companies are not exempted from VAT in case of buying goods inside Kosovo and importantly they also have to charge VAT in case of providing services themselves.

In addition, the VAT Law does not provide any definition that determines which companies are considered as an Electronic and Printed Media company so this might create issues in determining which companies are eligible to benefit from the exemption provided by the VAT Law which has been adopted.

In the future this may result in certain risks for companies because the Tax Authority may charge Electronic and Printed Media companies with additional VAT due for the services provided by them and on which services VAT has not been charged. Also in some instances, as a definition on Electronic and Printed Media companies has not been provided, the Tax Authority may seek to charge additional VAT on the basis that some companies should not be considered to be Electronic and Printed Media companies.

In my view, given these uncertainties, the business community would welcome a Public Ruling from the Tax Authority in order to resolve these uncertainties. In the absence of such a Public Ruling then Electronic and Printed Media companies as well as their suppliers could be faced with additional VAT liabilities and/or disputes with the Tax Authority.

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Focus on patron member

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Rivisiting Kosovo Business Agenda

Visar Hapçiu

Policy and Project Officer AmCham Kosovo

AmCham Policy Department has been continuously monitoring the developments in the business environment in Kosovo since the publication of “Kosovo Business Agenda 2011” document in October 2011. These monitoring activities have been conducted under “Kosovo Business Agenda 2011: Report, Dissemination, and Monitoring” project, which was implemented thanks to the support of USAID Business Enabling Environment Program.

We are pleased to note that many of our recommendations have been considered and acted upon by the government and other relevant institutions. Some of the major changes which occurred during this period and are expected to have a positive impact on businesses are: the validity of tax clearance documents has been extended, interest rates in late tax payments and late reimbursements have been changed, the number of documents required for import/export purposes has been decreased, the municipal work permit has been abolished etc.

Despite these positive developments, it must

be noted that there are still many challenges which lie ahead for the government in terms of improving the overall business environment in the country. In order for Kosovo’s ranking in World Bank’s Doing Business Report to improve, our policy-makers should view the business community as a strategic partner, by considering their recommendations about the steps which need to be taken for the business environment to improve. Creating an environment where businesses will flourish will certainly pave the way for an accelerated economic growth.

AmCham continues its efforts in advocating for policies which will strengthen the position of the private sector in Kosovo. These advocacy efforts are being channeled mainly through the National Economic Development Council, where AmCham is a voting member, along with two other business associations. Being a member of this Council has proven to be worthwhile for AmCham, given that in the first two meetings we have submitted two policy proposals, which were very well received by the members of the council.

We partner with clients for a journey that begins with strategic insight and ends with powerful, lasting results.

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E-government Solutions and Cyber Security Change Management Enterprise Integration Procurement

• • • •

Investment Promotion and Export Facilitation Stakeholder Advocacy Workforce Development Competitiveness and Private Sector Development

Booz Allen Hamilton – Kosovo Address Pashko Vasa no. 22, Peyton 10000 Prishtina Phone number: +381 38 609 406/ 407 Fax: +381 38 609 408 www.boozallen.com

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Policy and Legislative Highlights The extension of measures regarding debts Tax Administration of Kosovo calls on all the taxpayers not to be supplied with goods without invoices and supporting documentation. At the same time TAK calls on all taxpayers to register their goods, declare them and pay their tax obligations.

lates the entire pensions system in Kosovo, starting from the basic pensions scheme which is administered by the Ministry of Labor and Social Welfare, followed by pension contributions in the Kosovo Pensions Savings Trust (under the supervision of the Central Bank of Kosovo), up to voluntary pension contributions.

TAK has suspended until April 30 all the activities of forced collection as to enable the taxpayers to fix their registration and debts.

Article 9 of this law provides for alternatives of investing the assets which have been collected in the Pension Savings Trust, based on several criteria such as: the security of pension assets, diversity of investments, maximum return consistent with the security of pension assets, and the maintenance of adequate liquidity. Among others, the law also provides for the possibility of investing the funds in government securities of Kosovo.

Tax Clearance Documents In order to facilitate the procedures and provision of better services to all taxpayers, Tax Administration of Kosovo informs all the taxpayers that tax clearance documents will from now on be issued in the nearest regional office of TAK. Confiscation of imported goods from Serbia which bear the label “Kosovo/UNMIK” Starting from April 2012, the Ministry of Trade and Industry will begin with the inspection of imported goods from Serbia, and all products bearing the “Kosovo/UNMIK” label will be confiscated by this ministry, in accordance with procedures stipulated by law.

The registration of business entities at Kosovo Customs no longer a requirement Kosovo Customs informs the business community that registration of businesses at this institution for import/export purposes will not be a requirement starting from April 2, 2012.

Hereon, Kosovo Customs will use the VAT registration number for import and export of goods and services by Kosovo companies. This decision does not apply for customs agencies, which will continue to get registered in accordance with Article 11 of Customs and Excise Code of Kosovo.

Law on Pension Funds of Kosovo No. 04/L- 1011 The new Law on Pension Funds was approved by the Assembly of the Republic of Kosovo in the beginning of April and it was enacted by the president in April 26, 2012. This law regu-

Law on Information Society Services No. 04/L-0942 Law on Information Society Services was approved by the Assembly on March 15, 2012, and enacted by the president on April 2, 2012. As the law itself states, its purpose is to establish convenient possibilities and circumstances for development of electronic trade, use of electronic transactions and electronic signature by the Government, businesses and citizens too. The law makes electronic documentation as judicially equivalent to its traditional counterpart in paper format.

Law for the Registration and Records of the unemployed and jobseekers No. 04/L- 0834 During April 2012, the Assembly of the Republic of Kosovo approved the law for the Registration and Records of the Unemployed and Jobseekers. The aim of this law is to regulate the methods, procedures, conditions of registration, the registration and de-registration of unemployed and jobseekers at the Regional Employment Centers in Kosovo.

This law defines the unemployed as persons aged 18 to 65, who are unemployed and actively searching for a job.

Law No. 04/L- 104 on amending and supplementing of Law No. 03/ L-161 on personal income tax5 This law which was approved in May 2012 makes changes to certain provi-

sions of the previous law on Personal Income. The main change has been done with regards to Article 43 on Tax Payments for Business Activities, item 2.1.2. According to this provision, every taxpayer who accrues income from business activities such as by services, professional activities, artisan, entertainment and similar, is obliged to make quarterly payments equal to 9 percent of the gross incomes (it used to be 5 percent). The same amendment has been made to the law on corporate income tax.

Declaration of Pension Contributions and Income Tax electronically Tax Administration of Kosovo (TAK) through a press release informed employers in Kosovo that starting from May 1, 2012, they will be able to declare pensions contributions and income tax payments electronically. This can be done by registering at the official website of TAK and by filling out the standard forms for these declarations which can be found at the website.

Notary Services in Kosovo10 39 Notary with functioning offices, who have been licensed by the Ministry of Justice based on a set of strict professional and honesty criteria, are offering Notary Services throughout all municipalities in Kosovo. Notary service is judicial and public service that aims to protect legal interests of natural and legal persons in compliance with Constitution and laws of Republic of Kosovo. Notary Services are regulated by Law No. 03/L-010 on Notary Services Article 29 of this law provides for the Notary functions which can be done in the above mentioned Notary offices.

New Fiscal Package During the last meeting of the National Council for Economic Development, where AmCham is one of the members, it was announced that the new fiscal package will be published soon, and a conference will be organized in order to present it to the business community. The new fiscal package is expected to include several incentives for businesses, such as exemption from customs duties for a number of products which are used as raw material.

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One year of Arbitration in Kosovo It has been a year since the official opening of the Alternative Dispute Resolution Center. Being a unique center of its kind in the country, we have developed our arbitration, commercial mediation and labor mediation services, open to the entire business community in Kosovo, and beyond.

We have negotiated and concluded several agreements in the field of arbitration, internaMAG. Ardi Shita, LL.M. tional cooperation agreements and incorporatSecretary General ed over 500 arbitration clauses in business conAlternative Dispute tracts. In addition, we have the exclusivity of Resolution Center providing arbitration services for all of the employment and procurement contracts concluded by the International Civilian Office in Kosovo.

As part of our international cooperation efforts, we have concluded the first international cooperation agreement with the Permanent Court of Arbitration attached to the Slovenian Chamber of Commerce in order to provide arbitration services to the Slovenian companies doing business in Kosovo. The Center has been present in several investment conferences abroad. As part of our outreach campaign and capacity building efforts, we managed to organize business visits to Vienna, Graz, Ljubljana and Zagreb.

Many international investors have already included AmCham ADR Center arbitration clauses in their contracts, as of January 2012.

As a result, we have received the first large dispute amounting to 1,800,000 EUR. This is good news not only for the ADR Center but also for the doing business environment in the country.

World Bank Doing Business Report has identified contract enforcement as one of the key

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challenges to Kosovo’s business environment.

We are committed to contribute in improving these indicators by offering professional and efficient dispute resolution mechanisms in the upcoming years.

Neutrality, flexibility of procedures, enforceability of arbitral awards under the New York Convention, confidentiality, ability of parties to select the arbitrators, speed and relative cost-effectiveness are the key benefits of our Center, which we try to promote and provide.

For the existence of a sound legal system serviced by readily available, effective and diverse dispute resolution facilities is indispensable to any country trying to attract foreign investments. It gives international investors the much needed assurance that any commercial dispute can be efficiently and fairly dealt with, both in and out of the court system. It gives them incentive to move their money and establishment and provides sufficient legal guarantee to both international investors and local companies that there is a neutral forum for efficient resolution of their disputes.

We encourage you to test our services, as together we can build and develop alternative dispute settlement mechanisms in Kosovo which will be available to the entire business community for many years to go.

I assure you that our staff, arbitrators, mediators and legal experts will make sure that the principle we proclaim are properly incorporated in all of the disputes submitted at the AmCham ADR Center.

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N Nora Boga

Finance and Admin Officer/ CSR Kosovo Coordinator AmCham Kosovo

etwork for Corporate Social Responsibility of Kosovo was established in April 2011. This network was set up as a meeting point of companies and organizations that share the common commitment to practice and promote responsible behavior , both within their companies and organizations, as well as in the wider social space.

Founded by 14 companies, the Kosovo CSR network started to attract new members within the1st year of its activity. The organizations’ engagements have been visible beyond its national borders, thus being accepted as a member of CSR Europe (Corporate Social Responsibility Europe).

Since the early 1990s, the network of CSR Europe has played a key role in fostering dialogue and cooperation between businesses, policymakers and other stakeholders. The network strives to enhance the CSR movement in Europe and globally. What does this mean for Kosovo? Well, at the core of CSR Europe is Enterprise 2020. Through Enterprise 2020, CSR Kosovo’s member companies can learn how to improve business, environmental and social performances for their companies and their stakeholders. This program will aid Kosovar businesses in developing better business practices while working together with their employees to provide solutions to emerging societal needs.

CSR Kosovo’s “Traffic Safety” school crossing program has been active for 6 months, in which the number of participating schools has doubled; increasing our school participation to six schools from the original three that agreed to participate. Two of the new schools are located in Peja: “Hilmi Rakovica” & “Shkolla

Dardania”, and the third “Zekeria Rexha” in Gjakova. Parents and school officials expressed their appreciation for the program and to the retirees that were working throughout the school day helping the students. CSR Kosovo is pleased to announce that we will continue this program in September, when the new school year begins. CSR Kosovo has high hopes that more schools will reconsider their participation.

As a program, CSR Kosovo understands that families who care for a child with cancer incur considerable costs during the diagnostic, treatment, and follow-up care phases of the disease.

CSR Kosovo has donated to the “Helping Children with Cancer” Program (NFK Ndihmë Fëmijëve me Kancer) which was established in 2006 to aid the Oncology Ward procedures, aid in nurse training, increase medicinal supplies, supply hospitals with hygienic tools, supply children with toys and educational material, increase moral, and educate parents.

The strength of the network lies in the initiative of its member companies which create the CSR benchmark in the young Kosovo state.

CSR network of Kosovo is a network where members are exchanging their ideas, experiences and discussing about the best practices within a business. The members act as ambassadors of human values and multiplicators of CSR culture in the Kosovar business community.

The network in Kosovo continuously strives to be a stimulating network to attract new businesses that can aid in promoting CSR values throughout Kosovo. We welcome new businesses to join CSR Kosovo and look forward to another exciting year.

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Events General Assembly 2012

The General Assembly meeting of the American Chamber of Commerce in Kosovo was held on 31st January 2012. In addition to the working reports and plans for 2012, the Assembly elected new board members, were Mr. Erolld Belegu became the new President of AmCham Board of Directors, Mr. David Greer the Vice-president, Mr. Dastid Pallaska as Secretary General, and Mr. Agon Gashi the treasurer of AmCham Board of Directors, and other members including: Ardiana Bunjaku, Agim Bekaj, Driton Zairi, Ilir Ibrahimi, Jerry Recha, Lekë Musa, and Michael Mix. At the end of voting session, the newly elected president of the AmCham Board of Directors, Mr. Erolld Belegu, thanked the members for believing in him and expressed his gratitude to members who have served on the Board of Directors in 2011.

Present in the meeting were national and international high institutional representatives, including Deputy Prime Minister and Minister of Trade and Industry, Mimoza Kusari – Lila, and the U.S. Ambassador in Prishtina, H.E. Christopher Dell. The Minster, apart from informing on MTI policies for easing doing business in Kosovo, she emphasized the importance of opening the market with Serbia and Bosnia and Herzegovina, where for the first time producers will have the opportunity to export with Kosovo Customs stamps. Whereas, H.E. Ambassador Dell, appreciated the Kosovo Government’s had work, and emphasized the importance of the Action Plan for the Economic Development. Additionally, he proposed some challenges for the business community, that included working with government as partners, while expecting from government to fulfill their obligations, help the government to improve the quality of law enforcement and market liberalization.

B2B with Croatian Construction Companies

The global construction company, “Trimo Group” from Slovenia and Croatia, on its 50th Anniversary, on March 13th, presented their construction products to Kosovar community, aiming to expand their experience to Kosovan market.

The guest of honour of the event was the former President of the Republic of Croatia, Mr. Stjepan Mesiç. Mr. Mesiç, who highly valued the productivity and quality of Trimo Group, identified Kosovo as a good market for products of this company, additionally he emphasized the importance of the investments, international relations, and economic cooperation for Kosovar and Croatian businesses.

Minister Beqaj Visit to AmCham

The Minister of Economic Development, Besim Beqaj, highly valued the readiness of American Chamber of Commerce in Kosovo to offer partnership to the Government of Kosovo in promoting the ‘Public – Private Partnership’ in terms of eco-

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General Assembley was chaired by the former President of the AmCham Board of Directors, Christopher Hall. nomic development of the country.

This statement was made on April 13, 2012 during a visit of Minister Beqaj to the AmCham offices, where present in the meeting was the Executive Director, Arian Zeka, President of the Board, Erolld Belegu, members of the Board of Directors, and AmCham Patron Members.

Mr. Erolld Belegu, said that AmCham supports the Government of Kosovo, by stating: “This Board has decided to enter into a partnership agreement with the Government of Kosovo in order to identify problems in relevant sectors, where all together will move toward a genuine economy” said Belegu.

Workshop on Industrial Waste

The AmericanChamber of Commerce in Kosovo on April 18, 2012 organized a workshop on Trading Policies for Industrial Waste, where present were key representatives of: the Ministry of Trade and Industry, Ministry of Environment and Spatial Planning, Ministry f Economic Development, Agency for Environmental Protection, and representatives of biggest public and private enterprises – Kosovo Electric Corporation, Trepca. Sharrcem and Ferronikeli.

A common conclusion of the workshop was the fact that this issue is not treated sufficiently in terms of legislation, and should be treated when taking into account its potentials to the economic development as a job creator and revenue generator. The group emphasized the need to simplify the procedures for trading industrial waste.

H.E. Ambassador Dell Recognized as Honorary Member of AmCham Board of Directors

The Board of Directors of the American Chamber of Commerce in Kosovo honored the U.S. Ambassador in Prishtina, H.E. Christopher Dell, with Honorary Membership to the AmCham Board of Directors for his continued support and excellent collaboration.

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Minister Beqaj visit to Amcham From left: Erolld Belegu, President of Amcham BoD, Besim Beqaj, Minister MED, Arian Zeka, Executive Director AmCham.

On a lunched organized by AmCham on May 4, 2012, H.E. Ambassador Dell expressed his appreciation for receiving the award while adding that U.S. Chambers around the world are the strongest advocates for businesses. Furthermore, he emphasized that Kosovo’s economy is close to arising at a lift period, he talked about the impact of highways as a stimulus to the business activity. Last but not least, Ambassador Dell informed about the interest of the Embassy in developing the energy sector in Kosovo.

Career Fair 2012

AmCham Kosovo, on May 8, 2012, organized its traditional Career Fair 2012, the 9th edition; this time in cooperation with Kosovo Association of Information and Communication Technology (STIKK). The Career Fair 2012 was opened by a speech from the Minister of Labor and Social Welfare, Nenad Rasic, where present were President of the Board of Directors of the Amcham, Mr. Erolld Belegu, and President of Board of Directors of STIKK, Mr. Enver Doko. Mr. Rasic expressed his support for this event and that the employment in Kosovo, last year, has experienced an increase of 4%.

In the Career Fair 2012 at least 160 job positions were opened. Participating companies included: Meridian Corporation EcoTrade, ASHA, Banka Ekonomike, anka Kombetare Tregtare, Bechtel Enka, Coca Cola Hellenic, Elkos Group, KPMG, MDA, NPG, PR Solution/ Trokit, ProCredit Bank, Asseco, Cactuss, Technology Center, Zanafilla, and DM Consulting.

Minister Kusari-Lila Commited To Further Improvement of Business Environment

The Deputy Prime Minister and Minister of Trade and Industry, Mrs. Mimoza Kusari- Lila commits to continue reforms which will improve the conditions of doing

business in Kosovo. The commitment was made during a luncheon om May 21, 2012, with members of the American Chamber of Commerce in Kosovo. During this meeting, AmCham members had an opportunity to learn from Mrs. Kusari – Lila informing that the Ministry is focused on simplification of business registration procedure, and so far has achieved to reduce the days needed to register a business from 53 to 5 days. She emphasized that the ministries of economic sector should empower the private sector, for this sector to be the driver of economic development in Kosovo.

Arian Zeka, Executive Director of AmCham stated that these meetings are a step towards a better Public-Private partnership and a chance to address the issues and problems that businesses face.Erolld Belegu, President of the Board of Directors at AmCham, informed that he feels privileged that AmCham is a part of the National Council for Economic Development and informed that AmCham will continue to give its contribution on addressing local businesses’ issues to governmental partners.

Students from the Seton Hall University visited AmCham Kosovo

Under the leadership of the former Chief of U.S. Office in Kosovo, John Menzies, President of the Graceland University, John Sellars, a group of 16 students of the Whitehead School of Diplomacy and International Relations at Seton Hall University in New Jersey, on May 29, 2012, visited the American Chamber of Commerce in Kosovo. The students also had the opportunity to ask questions and find out more on prospects and challenges of the economic development of Kosovo.

The delegation met with the Executive Director, Mr. Arian Zeka, and the Secretary General of the ADR Center, Mr. Ardi Shita, to discuss about the post-conflict reconstruction and sustainability in Kosovo.

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Kosova Petrol Certified for Quality management

One of the latest successes of a Kosovar company was presented on an event organized by AmCham on June 4, 2012, that is the certification of Kosova Petrol with International Standard (ISO) 9001:2008 Standard for Quality Management.

Executive director of Kosova Petrol, Leonora Selmani, said that this event serves as a confirmation of oil quality in our country and of high quality services that Kosova Petrol offers for Kosovar consumers for 12 years now.

AmCham Executive Director, Arian Zeka, said that Kosovar companies are becomming aware of their role in achieving international standards. Mr. Zeka said that Kosova Petrol, being one of the oldest and most spread out company in Kosovo, deserves to be qualified as a leading company and as such should serve as a model for other companies.

The aim of the conference was to inform the participants about the Secondary Market and its development, to inform them about new investment opportunities in Treasury Bonds through the second market and to discuss on difficulties that the influence of global financial crisis has in Kosovo, respectively in businesses.

Conference on the Excise Tax on Plastic Bags

Video Conference Presenting Business Opportunities in Kosovo

On June 28, 2012, Amcham Kosovo organized a Conference on the Excise Tax on Plastic Bags which was aimed to bring together relevant actors from Ministry of Finances, Ministry of Environment and Spatial Planning, Kosovo Customs and trade and plastic bag producing sector to discuss on the reasons of the tax implementation and its implications.

The executive director of American Chamber of Commerce in Kosovo, Arian Zeka stated the importance to decrease of plastic bag usage due to its environmental damage. Advisor in the Ministry of Finances, Mr. Menderes Ibra said that this decision is aimed to protect the environment through a decrease of the use of plastic bags that are around in environment. The advisor for public relations in the Ministry of Environment, Mrs. Gezime Hasani and the director of the Department of Environmental Protection, Mrs. Florije Tahiri, after explaining the negative influence of plastic bags and the importance of the implementation of such decision, promised that the Ministry is discussing the opportunity of subsidizing companies that use environmental friendly technology and plastic bag raw materials that have less impact in the environment.

Treasury Bills Conference

Conference of Personal Data Protection

Organized by the U.S. State Department, the President of Kosovo, Atifete Jahjaga, US Ambassador in Prishtina, Christopher Dell and the President of the Board of Directors of American Chamber of Commerce Erolld Belegu, on June, 19, 2012 had a video-conference with American businesses to present the existing opportunities in Kosovo, a conference that was concentrated in the presentation of Kosovo’s achievement, its economic development, foreign investment opportunities and natural and human resources of the country.

American Chamber of Commerce in Kosovo (AmCham) and Kosovo Bankers’ Association (KBA) in cooperation with US Treasury, on June 26, 2012, organized the conference “Treasury Bonds, a New Investment Opportunity.” Present at the conference were representatives of the banking sector, businesses (production, construction and export-import sectors), representatives from insurance companies, and representatives of financial agencies in Kosovo.

In the Career Fair 2012 at least 160 job positions were opened.

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AmCham Kosovo, on July 12, 2012, organized the conference for Personal Data Protection to gather relevant actors from the Agency for the Protection of Personal Data and business community to discuss about the implementation of the law on personal data protection. Also, the goal of this conference was the raise of awareness for the law, its implementation and the Agency for the Protection of Personal Data. Presentation during the conference was made by Secretary General of the

Minister Kusari-Lila Commited To Further Improvement of Business Environment.

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H.E. Ambassador Dell Recognized as Honorary Member of AmCham Board of Directors.

Alternative Dispute Resolution Center in AmCham, Ardi Shita, gave more information on the definition of personal data and Kosovo’s law and the State Supervisor from the Agency, Bekim Demiri, who presented the obligations and responsibilities of the agency, controllers’ obligations and the data processing.

ED Reception

On the occasion of the recently appointed AmCham Executive Director, Mr. Arian Zeka, the American Chamber of Commerce organized a reception, sponsored by AmCham member, Ford Kosova Motors, where in addition to the AmCham members, there were also present important representatives of political and economic sectors of the country, including His Excellency, US Ambassador, Christopher Dell,

Conference on the Excise Tax on Plastic Bags.

ministers of the Government of Kosovo at the same time members of the National Council for Economic Development.

The new ececutive director, Mr. Arian Zeka said that his appointment as the new Executive Director conveys a lot of responsibilities to keep the continuity of AmCham on serving its members and to be a powerful voice for development of businesses. He also added that AmCham will continue to be a partner of the government, advocating for policies that help the economic development and the improvement of business doing environment in the country.

H.E. Ambassador Dell took the opportunity to present the recently appointed, deputy Chief of Mission, Ms. Kelly Degnan, saying that her job is to continue their mission.

During the ED Reception, H.E. Ambassador Dell took the opportunity to present the recently appointed, deputy Chief of Mission, Ms. Kelly Degnan.

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NEW MEMBERS

The American School of Kosova is Pre K - 12 school, licensed by the Ministry of Education, Science and Technology of Kosova, and Accredited by the Northwest Association of Accredited Schools in the United States. It is operating since 2004, is located in the center of Prishtina, and has approximately 450 students.

The school works under the auspices of the American educational system and provides a curriculum that is North American based. Instruction is primarily in English, we teach students to think, analyze, predict, and solve problems by using the application of skills taught.

From a very early age, our students are taught to ask, “why,” “how,” and “when”.

ARS Travel, established in 2000, is a family travel business. With all the years of service and growth, ARS Travel has been reorganized as corporation in 2010 and become one of the most respected travel service providers in Kosovo. ARS Travel is authorized agent and proud member of IATA, largest airline and travel agent organization in the world.

ARS Travel services involve air tickets, hotel reservations, vacation packages, rent a car, incentive services, incoming travel services or other travel related services. In ARS Travel we use two major reservation systems worldwide known: Amadeus and Travelport.

We can make single and group hotel accommodation to most known hotel chains.

N.T.SH.N.”ARFA”

Arfa is a private enterprise managed Fadil Hadergjonaj, it was established in 2001 and is based in financing and private management.

The company deals mainly with high and low construction. The work of this company has a huge impact in the development of our country’s economy, considering the level of infrastructure, high unemployment and low living standard, this company with its work offers improvement in infrastructure, thus creating new jobs and improving the living standards.

Banka për Biznes was established in 2001 by 16 local companies as stakeholders, including Banca Di Cividale from Italy. In June 2011 the European Bank for Reconstruction and Development (EBRD) became an owner of 10% bank shares. BpB has managed to expand from having only one office in Prishtina, which had 24 employees, to a structure of 42 offices throughout Kosovo, numbering 341 employees.

The Bank’s slogan is opportunity for more, which we believe should be every bank’s mission: to provide financial support to individuals and businesses and enjoy observing their financial development and realization of full potential.

Dardania Insurance Company is a leader in insurances, taking pride on a wide portfolio which aims to satisfy the insurance needs of the individuals and insurance demands of small and large businesses.

We are committed to achieve a sustainable growth with our clients offering qualitative insurance services and encouraging mutual beneficial relationships with our clients. Also, benefiting from efficient and competing experience in insurance market we are always serving those who have incurred damages.

Devolli Corporation was established in 1990; for decades they have been the leaders in the Kosovo market for innovations in various products.

Innovation strategy and innivation team of Devolli Corporation makes sure that capacity and resources supporting these developments are in the right spot.

Devolli Corporation brands are consumer products. We produce, distribute and sell the final products throughout Kosovo, Albania and Macedonia, is expanding the export to neighboring countries.

We are committed to continue gradually advancing and expanding production and service program consisting of a broad spectrum of activities, while simultaneously maintaining stable capital position.

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Elkos is the main private distribution company in Kosova. It has 311 employees and covers all local distribution points with a delivery time that ranges from 4 to a maximum of 8 hours.

Elkos was established in the 1990 as a retail store of no more than 70m2.

Since then, ELKOS experienced continuous growth in size and branches were established in different cities of Kosova; in 2003, ELKOS finished the project of cash and carry in the main cities of Kosova: Prishtina, Peja, Gjakova, Prizren, Ferizaj, Mitrovica, and Gjilan. It has also signed contracts with European producer for distribution rights in Kosova. Growth rates until 2005 were so high that they were not measured in percentage but in multiples. Due to already established facilities and market, the growth rates are still considerably high ranging between 15% and 20%.

English Centre – Center for Foreign Languages is a modern center for teaching of foreign languages and other courses. The purpose of the center is the quality and efficient teaching of foreign languages, thus fulfilling the ever increasing demands of the particularly young people.

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Eskavatori is a Limited Liability Company, which was established in 2003. It is considered to be a big company, wich more than 100 employees.

The company operates in construction field; it deals with road building, asphalt production, production of construction goods.

Hotel Nartel is located in centre of Prishtina and is just a few minutes away from any of the major government institutions of Kosova.

Our staff is dedicated to making your stay a memorable experience by providing excellent service. Nartel Hotel offers you a warm, genuinely hospitable welcome that makes you feel instantly at ease and at home as soon as you step through the door.

It is simply the place where passion lives.There are there types of rooms available at our hotel: Single Room, Double Room, Delux Room. Additionally, Nartel Hotel offers the perfect facility to meet your needs for business meetings. Meeting area is fully-equipped with the latest technical advances including wireless Internet capabilities and LCD projectors.

For over a decade Hotel Victory has catered many international and local guests, government officials and celebrities who enjoy the fact that our hotel is in the city center yet it is private and quiet. The hotel is elegantly decorated with original art, Italian granite flooring, plants, plush leather sofas and high quality furnishings.

In Hotel Victory you will: Enjoy the taste of delicious food and drinks at our high quality restaurant, plan your next meeting or social event at our ideal venues and facilities. The Hotel Victory features 42 spacious rooms, modernly designed which includes: 6 exclusive suites, 16 twin rooms, 12 single and 8 double a guarantee for a relaxing stay, whether you are staying at the Hotel for business or pleasure.

Trading venture, Intermarket, has been established in 1993 with the headquarters in Lypjan. Initially, it dealt with wholesale, nevertheless, over time, expanded by opening of a trading center Iner-Shopping Center, and engaging in real estate, restaurant, textile and house electric devices. Currently, Inter shopping Center has 70 employees and 100 associates, it possess 30% of Lipljan market for consumer goods.

This year the Inermarket is applying to a Swiss patent for financial services, which is expected to be completed by the end of the year. This company is committed to offer high quality, choice and value to its clients.

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Victory College is founded as a private institution of higher education in Kosovo and operates with the licence of Ministry of Education, Science and Technology of Republic of Kosovo and accredited by the Accreditation Agency of Kosovo and Ministry of Education, Science and Technology.

Its mission is not only to bring innovation but also functional education programs, based on the curriculum of the International Trade Department of Economic Faculty in “Libertas University” in Zagreb and that of International Politics and Diplomacy Facutly of Zagreb Public University. Victory College is dedicated for intellectual and creative growth and individual development.

Core Group has successfully acquired Llamkos GalvaSteel in July 2011 through the Privatization Agency of Kosovo (PAK). The process was one of Kosovo’s most important privatizations to date. Core Group is an International Metal and Mining company approved by the Dubai Multi Commodities Centre Authority.

Llamkos GalvaSteel is well established and is the largest steel galvanizing plant and production facility in the region. It has been operating for over 30 years. It is highly experienced in exporting galvanized steel products throughout Europe and the rest of the world. Lamkos GalvaSteel has strong management capabilities and their core values focus around “Partnership” with stakeholders, as well as “Growth” and “Integrity”.

Our extensive gas station network in Kosovo provides drivers with everything they need for a safe and comfortable trip. The economy and local communities are provided with a comprehensive energy supply and households are provided with all the energy they need for their homes – at their doorstep. The company will comply with governmental regulations and ISO standards to safeguard its employees, its community and the environment.

Vision of Kosova Petrol is To become the leader in quality and development of an oil derivatives supply and the “convenience” gas station model in Kosovo and regional countries with above average satisfied customers.

Mercom Company is founded in 1989 aiming to bring advancement in the construction industry by raising the customer satisfaction, where quality is higher that the investment. Additionally, the company is known for wooden, plastic and aluminum door and window production, which operates since 1996.

While succeeding in the production sector, this company expended by investing in the automobile industry. Starting form 2004, MerCom Company became the exclusive car dealer for Skoda. Even though Mercom was a dealer only, it has been successful in introducing Skoda cars in the Kosovar market. Mercom is no longer a dealer of Skoda cars.

In 2009 MerCom Company became exclusive importer of the French cars, the Peugeot.

Mercy Corps is an international NonGovernmental Organization (NGO) registered with the Government of Kosovo that has been working in Kosovo since 1993. Its international headquarters are located in Portland, Oregon and Edinburgh, Scotland. In the beginning, Mercy Corps provided humanitarian assistance but later began implementing development projects. In its 19 years of working in Kosovo, it has completed 120 donor funded projects worth more than $70 million USD. Currently this organization is implementing two large projects; one Roma, Ashkali, Egyptian (RAE) Support Initiative (EU-MRSI) and second the Community Action Initiative Program (CAIP).

EU-MRSI is a multifaceted project reintegrating RAE IDPs from the lead contaminated camps in north Mitrovicë/a to Roma Mahalla in south Mitrovicë/a.

CAIP too is a multifaceted project but it focuses on increasing confidence among non-majority communities.

Merita Kostanica is Public Notary since May 2012. Until April 2012, Ms. Kostanica was Head of Legal and Regulatory Affairs at IPKO Telecommunications LLC, one of the fastest growing telecommunications companies in Europe and one of the most successful companies in Kosovo. Merita’s daily activities include management of all local and international business transactions and other contractual relationship of IPKO with other parties, development of strategies on resolution of any disputes that IPKO might be involved. Prior to joining IPKO, Merita served as Administrative and Personnel Officer for more than six years in UNMIK Police, Personnel and Administration, where being one of the youngest in the team, Merita has shown great interest and motivation, being one of the most successful members of the team.

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Metton is a Creative multimedia company which specializes in graphic design and printing of invitations, posters, brochures, business cards, banners, and other media. Metton also provides advertisement solutions, including design and development of 3D outdoor signs and banners.

RED Consulting is a business consultancy company, specializing in public relations and marketing services ranging from media monitoring to development and implementation of marketing and CSR strategies. The professional and hard working team of RED Consulting also provides Research & Development, Corporate Governance and Capacity Building services, to help our clients build their leadership skills and capabilities at every level, and provide nothing but high quality performance.

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Hotel Sirius began operation in November 2011, since then committed to provide clients with the highest quality of accommodation and service. “The Clever Way!” is our company-wide philosophy which promises that each guest will be treated with a positive service attitude at every point of contact. The hotel manager, the waiter, the receptionist, the porter - everyone plays a vital role in delivering a memorable guest experience. Hotel Sirius offers 52 accommodation rooms and 6 conference rooms, each offering a comfortable accommodation, with the view of the city centre. The ideal location of the Hotel Sirius at the heart of the city, just a few steps away from the Kosovo Government, Office of the European Council and the National Theatre, makes it close and attractive for every client and event.

Trepça is an enterprise under the administration of the Privatization Agency of Kosovo. For the first time in literature, the name of Trepça is mentioned in 1303 in the documents archived in Dubrovnik (Republic of Croatia). 1930 marks the beginning of the production of sulfur mineralized Pb- Zn in this source. The biggest success of Trepça was in 1983, when Trepça exported products on the value of 103 million dollars, ranking the 5th biggest exporter in Yugoslavia. For 58 years of producing Trepçahas produced 33 million tons of ores with a content of 9% Pb and Zn or 3 million tons of metals Pb and Zn.

Technology Transfer is a governmental and strategic advisory firm with core competencies in market entry, corporate branding, network access. With the understanding that foreign direct investment, job creation and regional development were fundamental to the transfer of knowledge and technology and a necessary component for regional growth, the concept was created.

Technology Transfer was established to encourage, facilitate, and implement the transfer of knowledge and technologies, while creating a network for logistics and distribution to and from Southeastern Europe. Based on these core development pillars Technology Transfer can provide tailored assistance to a wide range of companies throughout all stages of business development

Banja e Kllokotit is a producer of bottled sparkling mineral water and CO2. Banja e Kllokotit has an excellent reputation concerning quality and taste of its mineral water in Kosovo.

Furthermore the Company is the only CO2 producer in Kosovo.

Banja e Kllokotit is built on a 3.3 hec site. This figure is inclusive of all physical structures and open space within the compound confines. All buildings and structures are currently functional and in relatively good condition. The enterprise also possesses two mineral water wells located at a distance of 150 m and around 7 km respectively from the plant.

Banja e Kllokotit employs approximately 116 people.

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VIP Travel is based in Prishtina, where experienced senior professionals have worked together since 2008 to develop long standing business relationships and committed to accustomed to delivering. We provide our clients with following services: Airplane tickets & Reservations, Car rentals, Hotel reservations, Package holidays, Tourist tours.

Our vision is “Building Memories through Travel” – Travel is not about airplanes, car rentals, hotels etc Travel is all about the memories you bring back with you. Experiencing new destinations, visiting family, meeting new people and getting back together with existing friends is what travel is all about.

M2M

Viva Fresh was founded in 2003, with the first point of sale in the city of Ferizaj. Coming from a family tradition with 30 years of trading, Viva Fresh became synonymous with quality and customer service. Viva Fresh today is one of the retail chains of the greatest and most powerful in Kosovo with 9 point of sale and operates in 2 formats: Hypermarkets and Supermarket.

Since the beginning Viva Fresh is follows trends and European standards, with its unique concept offering all customers goods under one roof, all ranges of products. Particular support is given to local products. The company’s goal is to develop a healthy and a steady relationship with customers by providing the highest quality-oriented with professional approach to customer.

Xhad was founded in 1996 offering desktop publishing services. Today, XHAD represents a one stop marketing communications agency, offering an extensive portfolio of solutions, being: Graphic Design, Digital Marketing Services / Web Development, Digital Printing and Conventional printing, Wide format printing, and CNC routing and engraving.

We take care of your marketing communications campaign, conducting all the steps in-house and offering flexibility, convenience and assuring high quality output. XHAD has been offering solutions to national companies and public institutions as well as to global corporations with regards to web development and digital marketing services.

For more visit us at www.xhad.net

MEMBER TO MEMBER DISCOUNT PROGRAM

SIGAL Insurance offers 10%

discount to all AmCham Members for Personal Health Insurance packages. For more information please visit: www.

Hotel Victory offers 20%

discount to all AmCham members and their clients/visitors in the hotel services, including accommodation, dinning, usage of conference halls, and other services.

How to Join this Program? Members interested to join the M2M program and offer their products/services at a special discount to AmCham Members have to inform the AmCham office in writing. A discount provider has to indicate the product or service discount rate. How to obtain discounts? All members, regardless if they provide discounts as part of Program, can obtain discounts. Members will be able to find information on discounts in the \M2M section of our web site. How is M2M advertised? The Program will be advertised internally through AmCham communications channels: a M2M event, AmCham web site, e-mail notification, and AmCham magazine.

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tH Members news & achievements

TheHorizon

We partner with clients for a journey that begins with strategic insight and ends with powerful, lasting results.

• • • •

E-government Solutions and Cyber Security Change Management Enterprise Integration Procurement

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Investment Promotion and Export Facilitation Stakeholder Advocacy Workforce Development Competitiveness and Private Sector Development

Booz Allen Hamilton – Kosovo Address Pashko Vasa no. 22, Peyton 10000 Prishtina Phone number: +381 38 609 406/ 407 Fax: +381 38 609 408 www.boozallen.com

Maury Wray Bridges, KPEP Chief of Party

Booz Allen Hamilton successfully implements USAID Kosovo economic growth project Booz Allen Hamilton, the U.S.-based strategy consulting company and AmCham Kosovo member, is months away from completing a major economic growth project in Kosovo for USAID. The $21.87 million, taxpayer-funded Kosovo Private Enterprise Program (KPEP) has focused on spurring private sector-led economic growth during Kosovo’s first four years as an independent nation.

KPEP’s focus has been on fostering growth, creating jobs and boosting exports. It has worked in six sectors of Kosovo’s economy: agriculture, construction, forestry and wood products, ICT, recycling and tourism.

Proof of the program’s success may be seen across Kosovo every day, from milk quality test results distributed online to dairy farmers, to the millions of Euros in furniture, agricultural commodities and software exports that continue to find new markets abroad.

Broadly, KPEP has worked to create an improved environment for growth in Kosovo, including through targeted interventions in the country’s legal and regulatory frameworks that impede growth in specific sectors. The project has also improved the competitiveness of the private sector, both on domestic and foreign markets.

Specifically, KPEP has supported more than 800 firms and associations across Kosovo through expertise, trainings, tailored internships, co-funding, and other assistance including support for obtaining HACCP, ISO and other internationally recognized certifications. In addition, business-support organizations were strengthened as KPEP helped them to articulate and execute their business strategies, and to generate programs that bring in revenue and build sustainability.

Throughout the project, management has consistently worked with AmCham in championing Kosovo’s private sector.

Will KPEP leave Kosovo’s economy in better shape than the project found it in 2008? So far, the numbers suggest the answer will be a resounding “yes” when the project officially ends in December. Overall, firms assisted by KPEP have reported $93 million in increased sales, $31 million in new investments and $27 million in additional exports since project inception. KPEP has contributed to the creation of more than 5,000 new jobs across Kosovo. Learn more at: www.usaidkpep.org.

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More than 500 participants had the opportunity to listen the lecture of Professor Philip Kotler on marketing based on value, On May, 29 2012, in Pirshtine. The conference for strategic marketing of the world expert professor Kotler noted the most imported event in the field of marketing in Kosovo. The conference was organized

by Management Development Associated- MDA, a successful consulting company in Kosovo.

“Manage the present, forget the past in a selective manner and create your future” said Professor Kotler to representatives of companies from Kosovo and Albania.

The new concept of Marketing 3.0 was presented based on the following models: product management during years 1950-1960, consumer management during 19701980, brand management during years 1990-200, and this decade, according to professor Kotler, is dedicated to value management. A large part of the conference was dedicated to the importance of the value creation and identification. He used worldwide examples, bringing them to a kosovar context that can be used for application by local companies.

The conference ended with a panel consisting of professor Kotler, Manuel Marin, head of entrepreneurship center- Business School EADA, Agon Gashi from Meridian Corportation, moderated by the organizer of the onference- Ardian Jashari (MDA). The participants had the opportunity to ask questions to the famous professor for issues their companies have and marketing concepts.

At the end of his visit, from the board of ILIRIA University, Philip Kotler was awarded “Doctor Honoris Cusa.”

The American University in Kosovo plans to launch a new Executive MBA in October of 2012. The AUK Executive MBA is designed to provide future business leaders in Kosovo and across the region the skillsets they need to compete and flourish in the rapidly changing business environments of the 21st century. With a focus on entrepreneurship, the program will be organized to accommodate experienced working professionals. The 18-month program will be offered on weekends (Fridays through Sundays) in 3-week modules so that students can maintain their existing employment. The program will be offered in both Pristina and Tirana. For further information, please see: www. mbaaukonline.org; or contact : mba@aukonline.org

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