activities 2012 - Ministria e Zhvillimit Ekonomik
Transkript
activities 2012 - Ministria e Zhvillimit Ekonomik
Qeveria e Kosovës Ministria e Zhvillimit Ekonomik Vlada Kosova Ministarstvo Ekonomskog Razvoja Government of Kosovo Ministry of Economic Development ACTIVITIES 2012 MINISTRY OF ECONOMIC DEVELOPMENT Prishtina, 2012 The Government believes strongly in market economy. It is determined to establish a sound legislative foundation, and to provide for the necessary infrastructure for the country’s development, as well as adequate economic policies. We remain convinced that market economy, which is the fundament of economic development, improved employment and enhanced citizen welfare, and has proven to be successful in the world’s most advanced economies, should be borne by the private sector. Hence, the efforts of MED in 2012 were vested towards the advancement of this sector.’ Besim Beqaj Minister of Economic Development 5 Minister Beqaj meets a group of Turkish businessmen Prishtina, 10.01.2012 – Minister of Economic Development, Besim Beqaj, held a reception today for a delegation of Turkish businessmen, and informed them on the developments in the field of economy, Kosovo’s economic perspective and its legal infrastructure. “We have marked a significant progress from the legislative viewpoint, as the current legislation provides an adequate basis for Kosovo’s economic development as well as facilities for foreign investments”, said minister Beqaj, while inviting Turkish businessmen to invest in Kosovo. Further, Minister Beqaj invited the Turkish businessmen to focus not only on trading but also on production activities, which would have a positive impact on the country’s economy and on the advancement of the private sec- 6 tor. The MED head also informed the Turkish delegation that the Government has already compiled the country’s economic development priorities, which set clear orientations for the country’s economic development. “The Government aims to stimulate foreign investments in the country, and one of the steps undertaken to that end is to sign inter-state agreements for the elimination of double taxation” said Minister Beqaj, while adding that the improvement of business environments represents one of the main engagements of the Kosovo Government. For their part, the delegation of Turkish businessmen expressed its interest to invest in Kosovo, mainly in the areas of energy, mining and construction. Six international companies compete for the post of the Transaction Advisor for PTK privatization Prishtina, 13.01.2012 – The Government Committee on PTK Privatization informed that the procedure for the submission of pre- qualification requests for the post of transaction advisors in PTK privatization has concluded. The evaluation was carried out by a professional committee composed by the Ministry of Economic Development, in accordance with the legal requirements. The call for expressions of interest for prequalification, published on 29 November 2011 by the Ministry of Economic Development, was answered by 12 international companies. Below are the companies (company groups) that have fulfilled all prequalification conditions: DLA Piper UK LLP, United Kingdom (in consortium with Deloitte Albania SHPK and Tashko Pustina – Attorneys SHPK) Ernst & Young, Poland ING Bank NV, United Kingdom (in consortium with K&L Gates LLP) Lazard Freres S.A.S, France (in consortium with Raiffeisen Investment AG) PwC, Poland Zagrebacka Banka - UniCredit Group, Croatia (in consortium with Schoner Rechtsnawalte, Baker Tilly Makedonija and Analysis Mason) The prequalified companies will be invited to take part in the tender, after the appeal deadline has lapsed. The large number of companies qualified for the process and their esteemed international profile are guarantees for good competition and a successful selection of the transaction advisor for this significant process. The Government Privatization Committee would like to us the opportunity to thank the companies applying in this process. 7 Beqaj presents MED priorities for 2012 Prishtina, 23.01.2012 – The Government of Kosovo has a vision for Kosovo’s economic development, therefore our aim for 2012 is to move forward towards the implementation of this plan and economic vision, in which the private sector, opening of new employment possibilities, economic sustainability, elimination of barriers in all fields and legal regulation represent constant tendencies that will ensure the most suitable possible business environment, said Minister of Economic Development, Besim Beqaj. Beqaj made these comments during a press conference, in which he presented MED priorities for 2012 in sectors covered by this ministry, including: energy, mines, telecommunications and monitoring of publicly owned enterprises. Energy sector As regards the energy sector, Beqaj said that a structural reform has commenced, and that it will provide for the best possible economic effect of all available resources, therefore, this structural reform will be utilized to attract new investments, starting with the financial closure of TPP Kosova e Re Project, which is considered one of the most significant projects for the provision of basic infrastructure that stimulates economic development. In the distribution sphere, we have managed to adopt all necessary documents and we hope to be able to announce the winning bidder soon, and to conclude the transaction process during this year,” he said. Further, Beqaj said that the most important factors for the energy sphere are the continuation of institutional arrangements for the construction of 400kV line between Kosovo and Albania and investments in renewable energy, 8 including the re-actualization of HPP ‘Zhuri’. “At the same time, during this year, we will establish the Energy Efficiency Agency, which will provide us with an opportunity to address not only energy generation but also electricity savings,” the Minister said. Mining sector As regards the mining sector, MED head said that the Mining Strategy is being thoroughly reviewed, and that the upcoming version, to cover the period until 2025, will define the path and orientation for the utilization of Republic of Kosovo’s mines, assets and mining resources, and will represent a long-term guideline for the utilization and economic valuation of the country’s mineral resources. Its adoption is expected during the first quarter of the current year. “We are in process of establishing the Kosovo Geological Institute, in conformity with the Law on Mines and Minerals, which will be responsible for conducting scientific research and identifying mineral potentials. Meanwhile, we will have established, within the first quarter, the State Museum of Mines Crystals and Minerals, located at the Trepca compound,” Beqaj said. He added that the Strategy and legislative foundation adopted last year provide for the opening of this sector for foreign investments, namely that this year the sector will open for new foreign investments, both through public-private partnerships and other forms. Telecommunication sector Minister Beqaj emphasized as regards the telecommunication sphere, that the reform in PTK will continue, while the privatiza- tion process has commenced and the transaction advisor’s appointment is being finalized. “In this context, I would like to pass to you some good news - PTK management is in communication with Monaco Telecom and they managed to decrease the charge for using the +377 country code, which we have used for a long time, by six million euro in comparison to last year,” he said. According to him, PTK privatization is in MED’s agenda for this year, and all preparatory work to this end will be conducted this year, including market sounding, while all decisions regarding transformation and privatization processes will be taken in conformity with the local business environment conditions as well as the readiness of investors and conditions of the international markets. However, there will be no hasty action which could create insufficiently sustainable effects. The Minister informed that other activities in the field of telecommunications are state internet and fixed telephony codes, in cooperation with TRA, ITU and other international mechanisms. Publicly Owned Enterprises In relation to the Publicly Owned Enterprise Monitoring Unit and the policies to be adopted in this regard, Beqaj said that last year Publicly Owned Enterprises were monitored and some of them did not have a satisfactory performance, however, MED will continue to cooperate with their respective management structures in order to improve their performance in service provision for Kosovo citizens. 9 ment, Besim Beqaj met with the Minister of Energy of United Arab Emirates, Mohamed Bin Dhaen Al Hamli, in order to discuss on economic development between the two countries. One of the main topics addressed as part of energy talks was discussions on cooperation possibilities in the sphere of renewable energy, whereby the Arab Minister provided Minister Beqaj with valuable information on their experiences in the development and advancement of this energy sphere. Today Minister Beqaj also visited the Masdar Institute in order to analyze cooperation possibilities between this institute and the respective institutes of Republic of Kosovo. Beqaj proposed future inclusion of Kosovar experts and students in this institute’s endeavors, and providing them with the possibility to use this channel in order to obtain information on trends of technological developments, their professional advancement and participation in trainings in the technological segments, and his proposal was strongly supported by this institute’s leaders. Minister Beqaj meets the UAE Minister of Energy, Mohamed Bin Dhaen Al Hamli Prishtina, 19.01.2012 – During his visit in the World Energy Summit in Abu Dhabi, the Minister of Economic Develop- 10 Minister Beqaj used the opportunity and meetings with senior officials from various participating countries in this important event to present Kosovo’s achievements in all spheres, with specific emphasis on energy sphere developments, as well as to meet with potential investors that expressed their interest for investing in Republic of Kosovo. Deputy-Minister Koci received the Minister of Energy, Industry and Mining of the Canton of Tuzla Prishtina, 24.01.2012 – The Deputy Minister of Economic Development, Gani Koci, received today Zelko Knezicek, Minister of Energy, Industry and Mining of the Tuzla Canton, accompanied by a group of businessmen from this canton. The meeting was focused on finding cooperation possibilities in the sphere of energy, especially in the mining sector, since the Canton of Tuzla is peculiar for holding 56% of the entire coal reserve of Bosnia and Herzegovina. Using this occasion, Deputy Minister Koci claimed that cooperation with countries that are experience in the mining sphere is Kosovo’s interest. “Exchange of experiences in the energy and mining sector is welcome for Kosovo, as our country possesses significant energy capacities. Thus, such cooperation would be beneficial for both parties,” said Koci. For his part, Minister Knezicek invited Deputy Minister Koci for a visit to the Canton of Tuzla, in order to become closely acquainted with this country’s experiences in the mining sector; as such experience exchange would further advance the cooperation in this sphere. Knezicek also confirmed that the presence of businessmen from Bosnia and Herzegovina represents an additional step that will support the establishment of closer ties, which should be highly appreciated. Otherwise, this meeting with senior cantonal representatives of Bosnia and Herzegovina is the first such meeting held by senior officials of the Ministry of Economic Development. 11 Beqaj: Honoring our Heroes is an Institutional Obligation Prishtina, 31.01.2012 – The initiative of the Economic Development Ministry and PTK to honor our heroes of freedom with the issuance of a post stamp, is only a small duty of Kosovo’s institutions for the great deed of our martyrs, said the Economic Development Minister, Besim Beqaj. These comments were made today on the inauguration of the emission of the new post stamps titled: “Flambeaus of Freedom”, where with the Acting CEO of PTK, Nuredin Krasniqi, and the Chair of the PTK Board of Directors, Mr. Rexhë Gjonbalajn, unveiled the frame with the display of the post stamp. “With this post stamp today, we sublimate the great values of Gërvalla brothers, Kadri Zeka, Zahir Pajaziti, Hakif Zejnuhallau and Edmond Hoxha, the common goal of which was Kosovo’s freedom and independence”, said Beqaj. Acting PTK CEO, Nuredin Krasniqi, said that the release of the 77th edition of postal stamps titled “Flambeaus of Freedom” is dedicated to our heroes who sacrificed their lives for an independent Kosovo, for the freedom we enjoy today. “Their resistance and heroic journey became a roadmap for other comrade-in-arms who held the flambeau of freedom lit, who organized, lead and open way for the institutions of freedom”, said Krasniqi. Through this edition of postal stamps, “Flambeaus of Freedom”, the Philately of the Post of Kosovo presented some of 12 In February, Termokos will receive 2 million euro in subsidies the intellectual war activists of the 70’s and 80’s, and of the armed war in the 90’s. This edition of postal stamps consists of two €1 and €2 nominal postal stamps, and the First Day Envelope. With this new edition of postal stamps, the Philately of the Post of Kosovo wishes to reiterate that the age-long ware of the Kosovo people for independence and freedom is undoubtedly the strongest and bloodiest resistance of the Balkans people. Prishtina, 06.02.2012 – Through its Ministry of Economic Development, the Government of Kosovo will provide 3 million euro in subsidies for Termokos during this year. Although this public enterprise is owned by the Municipality of Prishtina, Termokos also received 1.525.000 euro in subsidies from the Government of Kosovo last year, of which 904.000 euro was paid when the frost hit in the end of last year. From 2012 allocations, on 13 February, Termokos received 1.463.000 euro, while an additional 540.000 euro will be paid during this month, summing to over 2 million euro in subsidies only this month. The other part of the Termokos subsidy, at the amount of 1 million euro, will be paid in fall of this year. The data above show that subsidies from the Budget of Republic of Kosovo to this company have increased by 100% this year. 13 Expert panel finalizes the review of the proposed energy project Prishtina, 01.02.2012 – An independent Expert Panel, appointed to review the proposed electricity generation project in Kosovo, came to the conclusion that this project is in conformity with all six World Bank criteria taken into account in considering provision of support to lignite-powered power plants. The findings of this panel were submitted to the Government of Kosovo and the World Bank today. Kosovo’s electricity demand exceeds local supply capacities, and taking into consideration the growing de- 14 mand, further deepening between the offer and demand may be expected. The Government of Kosovo plans to decommission the forty year-old thermal power plant, which is one of the greatest polluters in Southeast Europe. In order to replace its capacities, Kosovo plans to rehabilitate the other old thermal power plant and to construct a new a more economically feasible thermal power plant. In order to develop such new electricity generation capacities, Kosovo requested support from the World Bank, in form of a Partial Risk Guarantee (PRG). In line with policies which support the World Bank in balancing development needs with concerns regarding environmental protection and climatic change. The panel expert reviewed the proposed project in Kosovo based on six criteria: (1) demonstrated developmental impact; (2) support to projects with low-carbon emission; (3) optimization of energy sources (including options for energy economization and efficiency); (4) full review of applicable alternatives with the least costly options, including environmental costs; (5) use of sophisticated technology which ensures the highest possible economization; (6) development of the environmental cost analysis approach. The three distinguished energy experts comprising the independent panel are: János Beér, Wladyslaw Mielczarski and Derek Taylor. In their project review, they bring into perspective Kosovo’s frag- ile postwar economy and its limited capacity for development, and agreed that security of electricity supply with an affordable cost is vital for its development and stability. The Expert Panel unanimously agreed that the project has fulfilled the six criteria; however, they also provided a series of specific recommendations for the Government. Their position on the six criteria is summarized below. The Expert Panel, under its Project Review, provided a series of comments, observations, and recommendations on the future supply and use of electricity in Kosovo. This includes recommendations for regional cooperation and good relations, and a greater use of Prishtina district heating. In addition, other recommendations relate to the size of the plant/new units and mining solutions, and advantages of drying lignite, and that the new power plant should be ready to capture and store carbon. The panel has also strongly encouraged the involvement of the civil society in various processes, whenever this is possible, in order to enhance transparence and ensure fully consultative development processes. After receiving the findings of the Expert Panel, Kosovo’s Economic Development Minister, Besim Beqaj, said “It is our obligations to offer affordable and reliable energy to the citizens and the industry, for heating and lighting homes, to encourage economic growth, and to create new jobs. We appreciate the independent analysis of the Expert Panel, pertaining to our plants for the energy sector development, and anticipate a project to benefit of Kosovo’s economy”. 15 Beqaj: Expert Panel report recommends further advancement of the “Kosova e Re” Project Prishtina, 14.02.2012 – The report of the independent expert panel supports the TPP Kosova e Re Project and its components, recommending to the Government of Kosovo to advance the 16 proposed project as soon as possible, with the aim of improving the security of electricity supply and mitigate environmental pollution, stated the Minister of Economic Development, Besim These comments were made by Beqaj during a common press conference with the head of the expert panel, Dereck Taylor, after a presentation of the independent expert panel report and discussions with civil society representatives, whom provided their remarks and recommendations on the report. Beqaj said that the Ministry of Economic Development, acting through the TPP Kosova e Re Project Steering Committee, is in the verge of finalizing the Request for Proposals for the said project, in line with the Kosovo Energy Strategy and applicable legislation. “I say this based on the findings of the report compiled by the expert panel hired by the World Bank, which represent an additional basis for our work and which analyze the project from the perspective of adherence of coal-fired energy generation projects with the criteria set forth in the strategic framework for development and climate changes” he added. MED head said that the project for TPP Kosova e Re, and its components, aim to improve security of electricity supply in Kosovo by providing secure base-load electricity using domestic sources – lignite from the Sibovc mine; and by addressing other impacts. This will be accomplished through the development of two new 300 MW units (of TPP Kosova e Re), rehabilitation of existing generation capacities (TPP Kosova B) and opening of the new mine. According to him, from the competition aspect, the Project is addressed within the framework of the Electricity Market Model, which provides for a competitive electricity market in Kosovo, and takes into consideration existing generation possibilities in Kosovo. This model aims to attract and facilitate investments, improve security of supply and promoted economic growth. In relation to the tariff impact, Minister Beqaj said that according to the legislation, tariffs are adopted by the Energy Regulator’s Office, and should be cost-reflective. This means that tariffs should reflect new investments; however, they should not be higher than the regional prices, because electricity in Kosovo is based on lignite-combustion, which does not have a high cost. Minister Beqaj underlined that the Government is paying special attention to social and environmental considerations and promised that all recommendations presented by stakeholders will be taken into consideration. For his part, the head of the independent expert panel, Mr. Dereck Taylor, said that the TPP Kosova e Re Project meets all six World Bank criteria and takes into consideration high standards pertaining to coal-powered energy generation, while also providing a set of specific recommendations to the Government. According to him, the Government of Kosovo wishes to provide adequate and reliable supply, and to find a way to decommission the highly polluting TPP Kosova A, while the World Bank will assist Kosovo in finding a balanced solution for its energy shortages. He said that Kosovo needs new generation capacities and that the Kosova e Re Thermal Power Plant project is currently the optimal solution which needs to be complemented by other alternative sources. 17 Beqaj congratulates Miners and the Trerpça Management Prishtina, 20.02.2012 Dear Mr. Shala, Minister Beqaj received the Canadian Ambassador in Zagreb, Edwin Loughin Kosovo and Albania together can address energy issues Prishtina 16.02.2012 – Minister of Economic Development, Besim Beqaj, on Wednesday met with the Canadian Ambassador in Zagreb, Edwin Loughin. The focus of the meeting was the economic cooperation possibilities between the two countries. On this occasion, Minister Beqaj informed the Canadian Ambassador, Mr. Loughin, on the activities of the Ministry of Economic Development, including the creation of a better environment for foreign investors. Minister Beqaj also informed Mr. Loughin that Kosovo is advancing its legal infrastructure for foreign investors, and invited him to encourage its national investors to invest in Kosovo: “We are working in strengthening and promoting the private sector and we invite all interested companies to invest in Kosovo, as they will enjoy adequate treatment”, said Minister Beqaj. From his part, Ambassador Loughin as expressed an interest in cooperation in the mining sector and invited Minister Beqaj to organize a trading mission in Canada to explore the possibilities for a mutual cooperation between the two countries. Minister Beqaj expressed his gratitude for the interest of the state of Canada towards cooperation in economy. Prishtina, 20.02.2012 – Minister of Economic Development, Besim Beqaj, met today with Albanian Ambassador in Prishtinë, Islam Lauka, and discussed on the recent developments in the country and the region, with special emphasis in the energy situation. Minister Beqaj and the Albanian Diplomat discussed on the energy situation in Kosovo and Albania after the suspension of electricity exports by regional countries as a result of an increased demand and problems in supply. On this occasion, Minister Beqaj highlighted the need for mutual assistance between the two countries in order to tackle electricity shortages, taking into account that energy systems of Kosovo and Albania are complementary of each other. Economic Development Minister said that the Republic of Kosovo has not enforced restrictions in electricity exports, and highlighted the need for exchanges in line with the demand and the capacities of both countries. Minister Beqaj restated that Kosovo’s focus remains enhancing cooperation with Albanian in all areas, and also stressed the need to advance energy systems in Kosovo and Albania. 18 On behalf of the Ministry of Economic Development, please allow me to congratulate you and all Kosovo miners on the Miners’ Week. Throughout the bright history of the Trepça Complex, its miners were on the forefront of efforts to protect national interests and were an example of hard work, engagement, and sacrifices for freedom, independence, and our country’s development. Numerous strikes against wild exploitations by the occupiers, massive participation of miners in protests, and other forms of expressing discontent, make Trepça miners a positive example of the protection of national interests, and the struggle towards a better future, prosperity and development of our country. Trepça was and remains the pride of Kosovo, and its miners the best example of how concrete, responsible and committed activism goes to the benefit of the country. Kosovo’s Government, namely the Ministry of Economic Development, would like to congratulate you on the Miners’ Week and assure you that, through relevant legislation, it is committed to adopt policies conducive of building capacities for the economic development of the Republic of Kosovo. Sincerely yours, Besim Beqaj Minister 19 Below is the list of prequalified companies or consortia, which submitted their bids in the second phase: • Ernst & Young, Poland • ING Bank NV (in consortium with K&L Gates LLP) • Lazard Freres S.A.S, (in consortium with Raiffeisen Investment AG) • PWC, Poland • Zagrebacka Banka, UniCredit Group (in consortium with Schoner Rechtsnawalte, Baker Tilly Makedonija and Analysis Mason) The Government Privatization Committee had selected a professional evaluation commission to analyze bidding documents, comprising of senior civil servants of every ministry taking part in the GPC. Consortium of Lazard Freres S.A.S and Raiffeisen Investment AG is selected PTK privatization transaction advisor Prishtina, 29.02.012 – The Government PTK Privatization Committee (GPC) informs the public that the selection process for the Transaction Advisor for the Post and Telecommunication of Kosovo (PTK) privatization is concluded. Initially, twelve companies and consortia competed in this process, of which six were prequalified. Five of the six prequalified companies or consortia took part in the second bidding phase and competed for the process’ transaction advisor post. 20 After analyzing technical and financial bids of all participating companies, as recommended by the Evaluation Commission, Lazard Freres S.A.S (in consortium with Raiffeisen Investment AG) was selected the Transaction Advisor of the Government of Kosovo, respectively of the PTK Privatization Government Committee for the sale of 75% of PTK shares. GPC considers that the participation of a large number of internationally acknowledged companies in the process and the selec- tion of a rather successful consortium, with global and regional experience in the provision of transaction services, guarantees a high level of services to be provided. The selection was subjected to the highest global standards on such processes. The consortium of this tender’s winning companies comprises two well-known entities. Lazard is one of the most renowned financial consulting companies in the world, active in 27 different countries around the globe. This company operates since 1848 and offers advisory services on merges and acquisitions, strategic matters, capital structuring and restructuring, capital development and corporate finance matters, as well as asset management among various associations, partnerships, institutions and individuals. On the other hand, Raiffeisen Investment AG is the leading Advisor in European Corporate Finances. Raiffeisen Banking Group is one of the strongest commercial and investment banking networks in Central and Eastern Europe with representative offices around the globe with over 3,200 branches and 60,000 employees. In addition to experience in other countries, Raiffeissen provided transaction advisory services to over 250 privatization processes in Central and Eastern Europe, and was rather active in the telecommunication sector in the last decade, taking part in most major privatization processes conducted in the region. 21 Beqaj: The Government strives to facilitate the introduction of foreign businesses Minister Beqaj opens the RealEx fair Prishtina 2012 Prishtina, 01.03.2012 – Minister of Economic Development (MED) Besim Beqaj opened the International Fair and Conference “RealEx Prishtina 2012” attended by regional leaders of the immovable property development sector. A this occasion, Minister Beqaj claimed that the Government of Kosovo remains committed to eliminate all possible barriers, in order to make Kosovo an attractive country for foreign investments, including those in the field of construction. “The Government of Kosovo remains fully engaged in guaranteeing the conduct of reforms that will stimulate private sector development, with the development of the construction and immovable sector development being one of the Government’s priorities,” said Minister Beqaj. 22 He further added that the organization of the International Immovable Property Fair and Conference represents a unique opportunity to bring together all key sector’s key actors, including construction companies and potential investors (banks, real estate agencies and the Government of Kosovo as sector regulator). “I am certain that during this, the necessary connections between these stakeholders will be established and that they can bring about significant projects beneficial for both the entrepreneurs and Kosovo’s general economic development,” said Minister Beqaj. Arben Jusufi, General Director of ‘Leoron Group’ and organizer of the Fair said that the Fair will provide a good opportunity for communication between different stakeholders of the real estate sector, and that such communication can bring to light concrete projects. Prishtina, 05.03.2012 – The Government of Kosovo is taking all measures necessary to reduce all barriers and facilitate the introduction of new businesses in Kosovo and to invigorate the private sector, said the Minister of Economic Development, Besim Beqaj. Beqaj made these comments during a meeting with French businessmen, while informing them on the country’s economic development, projects and the vision of the Government of Republic of Kosovo on its economic development. “We had a remarkable meeting with the French Ambassador, Mr. Fitou, and the Chairman of the French-Kosovar Chamber of Commerce, with the aim of finding new investment possibilities in the Republic of Kosovo,” said Minister Beqaj. He claimed that he discussed with the French businessmen on successful practices of French economic interventions in Kosovo, including the engagement of Airport De Lyon in the Prishtina International Airport, as well as the success of ‘Peugeot’ in Kosovo. “Representatives of the Lyon region, second most significant economically developed region in France, are conducting market researches and seeing what our country and Southeast Europe has to offer to them,” said the MED Head. Beqaj said that he informed the businessmen on Ministry’s projects in the fields of energy, telecommunications, mining, public utility performance improvement, etc. For his part, the French Ambassador in Kosovo, Jean Francois Fitou, said that his country remains directly engaged in the economic development sphere, and that the visit of Lyon region businessmen represents yet another activity conducted for this purpose. “We will do everything in our hands to shed light on Kosovar economic potential. We will do everything in our hands to support governmental institutions, which wish to simplify or remove investment barriers in Kosovo,” said Fitou. On the other hand, the representative of French businessmen Francois Turcas expressed his willingness to extend the cooperation between the French-Kosovar Chamber of Commerce and the Regional Federation of Small and Medium Enterprises from Lyon and to ensure a pragmatic partnership between the two entities. Turcas assessed that the economic and industrial element in Kosovo is very similar to the French economic and industrial element, while granting a preliminary notice on the signature of an agreement with the French-Kosovar Chamber of Commerce. Ekonomike Franko-Kosovare. 23 Minister Beqaj participates in the fifth Inter-Parliamentary Meeting of the European Parliament in Strasbourg Prishtina, 06.03.2012 – The Minister of Economic Development, Besim Beqaj, is participating in the fifth Inter-Parliamentary Delegation for Relations with Albania, Bosnia and Herzegovina, Serbia, Montenegro and Kosovo, held currently in Strasbourg, France and attended by representatives of the European Parliament and Assembly of the Republic of Kosovo. At this occasion, Minister Beqaj spoke on Kosovo’s progress towards European integrations, during the session dedicated to the exchange of perspectives of the Government of Republic of Kosovo, High Representative for Foreign Affairs and Security Policies and European Commission. In the initial part of the meeting, in addition to Minister Beqaj’s speech, reports were given by the Commissioner for Enlargement and Good Neighborhood Policies, Stefan Fule, and Director for Western Europe, Balkans and Turkey in the European Service for Foreign Action, Fernando Gentilini, who also spoke on behalf of the High Representative for Foreign Affairs and Security Policies, Catherine Ashton. 24 Minister Beqaj attends the ‘Investments in Kosovo’ conference in Berlin Prishtina, 07.03.2012 – During his official visit in Germany, the Minister of Economic Development, Besim Beqaj, attended the Investments in Kosovo Conference, held in Berlin. Beqaj held a speech in this conference in the session on policy developments, business and investment climate in Kosovo, in which he presented measures undertaken by the government with the aim of stimulating direct foreign investments in the country. During this visit, Minister Beqaj met with the Federal Minister for Economic Cooperation and Development, Dirk Niebel, with whom he discussed on the projects that MED is developing and on bilateral cooperation between the two countries. Otherwise, attending the investment conference in Berlin are also Deputy-Prime Minister and Minister of Trade and Industry, Mimoza Kusari, the President of the Vienna Economic Forum, Erhard Busek, the Head of the Munich Security Conference, Wolfgang Ischinger, etc. 25 World Bank supports energy projects in Kosovo Prishtina, 16.03.2012 – Minister of Economic Development, Besim Beqaj, met today with World Bank representatives, namely its Director for Southeast Europe Jane Armitage and Head of WB Office in Kosovo, Jan Peter Olters. In the meeting it was emphasized that Kosovo has shown added fiscal maturity since the second half of 2011, preserving a low deficit and successfully agreeing on a new Stand-By agreement with IMF. Such significant successes make Kosovo a model country for Europe in this era of fiscal turmoil. Subject of the meeting was also future support of the World Bank Group to important projects implemented in Kosovo’s energy sector, with a special focus on the New Kosova Power Plant Project and in other projects in the sphere of renewable energy promotion and generation and in the sphere of energy efficiency. Other topics of the meeting included concrete projects in the area of improving water supply and quality, as well as improvement of air quality and involvement of all relevant parties in the monitoring of such processes. Further, an agreement was reached to organize during this year a donor conference on energy efficiency, renewable energy sources and other projects in the energy sector. 26 Italian companies show interest in Kosovo markets Deputy Minister Hasani encourages businesses damaged by recent precipitations Prishtina, 19.03.2012 – Deputy Minister of Economic Development, Ramadan Hasani, visited today the heating stove production factory ‘Emaliku’ in the industrial area between Prishtina – Fushë Kosovë, which was severely damaged as a consequence of heavy snowfall (80% of the factory facilities and a part of the storage and sales facilities.). At the event, Deputy Minister Hasani encouraged this company’s management to continue their operations, while promising the support of the Ministry of Economic Development and other line-ministries. “We will do everything in our hands to alleviate as much as possible the damage caused to you by the recent natural disasters. Thus, we will submit a request to the Ministry of Finance and Office of Prime Minister to ensure that you are relieved of all import taxes for your raw materials,” said Hasani. For his part, the manager of ‘Emaliku’, Amir Rrmoku, thanked Deputy Minister Hasani for the interest and assistance shown and informed the visiting party of the incurred damages, which fortunately resulted in no human losses. He made note of the damage caused to his machinery, raw materials and final products, which amount to around 200 thousand euro. Prishtina, 21.03.2012 – Deputy-Minister of Economic Development, Gani Koci, received today Bruno Feligini, representative of Tempo Gest, an advisory firm for small and medium companies in Marche region in Italy. At the event, Deputy-Minister Koci thanked Feligini for the interest shown on the country’s economy, industry and technology. ‘Our cooperation in the sphere of consultancy is welcome, as your experiences in the field of advisory services can support the advancement of small and medium enterprises in Kosovo’, said Koci. On the other hand, the representative of ‘Temp Gest’, Bruno Feligini, expressed his interest on the investment climate in Kosovo, with special emphasis on the most profitable sectors for the Kosovo market, including industry, agro and food-processing, construction and infrastructure. Feligini also expressed his interest to initiate projects for digitalizing municipal services for citizens, a project to be implemented in cooperation with the Association of Italian Municipalities and Association of Kosovo Municipalities. 27 European Commission supports energy projects Brussels, 22.03.2012 – The European Commission Energy Commissioner, Gunther Oettinger, welcomed Kosovo’s engagements in electricity and natural gas infrastructure projects, while underlining the European Commission support to such projects. During the meeting with the Minister of Economic Development, Besim Beqaj, Commissioner Oettinger expressed his support for Kosovo’s integration processes, and for the integration of other 28 countries of the Western Balkans region in the European Union and in European Energy Initiatives. For his part, Minister Beqaj informed Commissioner Oettinger on the latest developments in the energy sector and on the efforts vested to approximate Kosovo to European standards. The Minister further informed the EU Commissioner on the commitments and engagement of the Government of Republic of Kosovo and the Ministry of Economic Development regarding the construction of Kosova e Re Thermal Power Plant, privatization of KEDS and other projects in the sphere of promotion of renewable energy generation and energy efficiency. Minister Beqaj also spoke on the plans to organize a donor conference in order to discuss on energy efficiency, renewable energy and other energy sector projects. Cooperation with civil society in energy projects, Kosovo representation in the Energy Community and the need for continuous financial support to this sector’s development were among other topics addressed during this meeting. Minister Beqaj also met today Peter Bekx, the Director for International Economic and Financial Relations in the European Commission Directorate General for Economy and Finance. Tomorrow, Minister Beqaj will meet Stefano Sanino, European Commission Director General on Enlargement, in order to discuss on Kosovo’s European integration, free trade agreement arrangements, visa liberalization and structural economic reform. The business community supports domestic energy projects Prishtina, 30.03.2012 – The local business community granted its support for the country’s energy projects, with special emphasis on projects that contribute to sustainable energy supply, advance utilization of renewable energy sources and improve energy efficiency. This conclusion derived from the meeting that the Minister of Economic Development, Besim Beqaj, held today with business representatives, also attended by representatives of the Kosovo Chamber of Commerce, Kosovo Business Alliance, American Chamber of Commerce in Kosovo, Turkish Chamber of Commerce in Kosovo, British Chamber of Commerce in Kosovo, French Chamber of Commerce in Kosovo, and by the senior management of Kosovo Energy Corporation. Central topics of the meeting included energy projects and problems faced by businesses regarding energy supply, and resulted in KEK’s commitment to decrease business prepayments to 15 percent. Minister Beqaj underlined that the Government of Kosovo’s basic priority is the country’s economic development and provided a number of projections on last year’s development dynamics, while emphasizing that energy remains one of the most significant matters. Among energy sector’s fundamental priorities, Beqaj underscored security of electricity supply as a key prerequisite for the country’s economy and citizens, and elaborated on the development of energy projects in the country, in conformity with international standards and obligations that Republic of Kosovo holds based on its adherence to the Energy Community Treaty (EnCT). While responding to concerns brought up by businesses, the head of MED expressed the readiness of the institution he heads to address their problems, in cooperation with KEK, with the aim of finding an optimal solution for their concerns.For her part, Deputy Prime-Minister and Minister of Trade and Industry, Mimoza Kusari – Lila, said that the Government remains committed to increasing the country’s energy capacities, adding that no business activity can be undertaken normally if there is a lack of secure and stable energy supply.“Hence, I wish to ensure you that the Government is committed to being active in the field of energy and mining, in order to overcome challenges Kosovo faces,” said Kusari-Lila.In the meeting, business representatives raised the issues of (A+) category energy supply for businesses, prepayment and damages caused to them as a consequence of interrupted supply of electricity. 29 WB confirms its support for energy projects in Kosovo Prishtina, 03.04.2012 – “The World Bank has started to implement the first country partnership strategy with Kosovo. This means that the WB is treating Kosovo as a member state with equal rights in this mechanism,” said the Minister of Economic Development during a press conference with the Deputy President of the WB for Europe and Central Asia, Philippe Le Houerou. Minister Beqaj said that in the meetings held yesterday and today with the World Bank delegation, which included the Deputy President Le Houerou, Deputy President of the International Finance Corporation (IFC) Dimitris Tsitsiragos and Deputy President of Multilateral Investment Guarantee Agency (MIGA) Michel Wormser, the delegation sup- 30 ported projects under development in Kosovo, especially those in the energy sphere. ‘We have received immense support by the World Bank (WB) in the development of new generation capacities through TPP ‘Kosova e Re’ (600 MW), a project that was reconfirmed after the option study by WB and the visit conducted by the independent WB expert panel, accompanied by the readiness to grant in principle the partial risk guarantee,” said Beqaj. The minister said that the visit of the World Bank delegation at this moment represents an additional guarantee for the investors in this sector, while underlining the readiness of the Government of Kosovo to comply with all obligations taken to date. ‘The Government has committed to adherence with the highest international and WB standards in the construction of new capacities, and we will respect the highest environmental standards, while taking into consideration the need for stable electricity supply, its affordability by the citizens and the citizens’ public health, and in this we have a great cooperation with the WB,” Beqaj said. The MED head emphasized that in parallel to the development of new energy generation capacities, the Government is committed to decommission TPP Kosova A by the end of 2017 and to strongly promote renewable energy sources and energy efficiency aimed at reducing the electricity demand (as per its obligations under the EnCT). For his part, Deputy President of the World Bank for Europe and Central Asia, Philippe Le Houerou said that the first country partnership strategy between Kosovo and the World Bank clearly depicts the important relationship between two parties. He said that the Strategy envisages the development of new generation capacities, which ensures safe energy supply; the revitalization of TPP ‘Kosova B’, decommissioning of TPP ‘Kosova A’ and increased utilization of renewable energy sources. “This strategy will be in accordance with the Governmental Strategy. We will also have interactions and consultations with the private sector and civil society in general,” said Le Houerou, adding that the strategy entails two different pillars. According to him, the first pillar is growth and employment, which is an issue of critical significance for economic development, while the second pillar is environmental management. “Within these two pillars, we are working in exploring the operations to be undertaken in the future four years, namely during the period covered by the strategy, and in determining what analytical work will be required from the strategy during the said period. Certainly, all activities are aimed at increasing benefits for the Kosovo population,” he said. The World Bank delegation showed high evaluations for the Government of Kosovo’s engagement in developing energy projects, while reconfirming the support by this financial body. Otherwise, responding to the interest of media on whether the World Bank received any complaints regarding TPP Kosova e Re project by any of the potential bidders, Deputy President Le Houerou responded firmly that no complaints were ever filed. 31 The Government has taken all measures to successfully privatize PTK Beqaj praises cooperation between the Government and the ACCK Prishtina, 05.04.2012 – The Government of Republic of Kosovo remains dedicated to the implementation of adequate reforms in the sphere of economy, in order to guarantee economic development sustainability. In this context, the Government is engaged in advancing structural reform in Republic of Kosovo and establishing a market of European standards, which will be ready to face EU market competition, part of which we also aim to become in the future. Also, we remain strongly committed to increasing competitiveness, strengthening the private sector, generating employment, establishing a safe and stable business environment and improving Kosovo’s investment image. For its part, the Government has undertaken all measures which contribute to the creation of adequate conditions for the functioning of PTK, by approving PTK’s business plan and separating the Post from Telecom, which will be privatized. It also welcomed the readiness of PTK’s Board of Directors to diminish operational expenditure of the Post and Telecommunications of Kosovo, in order to bring them to the level of other sister companies in the region. The Government further welcomes the decision of the Board of Directors to appoint the Chief Executive Officer of the Kosovo Telecom, hence MED expresses full support to all decisions of the Board of Director and senior management, which are aimed at increasing the value of the company’s assets. The Government and the Ministry of Economic Development re- Prishtina, 13.04.2012 0 – The Minister of Economic Development (MED), Besim Beqaj, praised the readiness of the American Chamber of Commerce in Kosovo to extend its partnership to the Government of Kosovo in promoting public-private partnerships, which serve the country’s economic development. These comments were made by Minister Beqaj today during the meeting held with the Acting Executive Director of the American Chamber of Commerce in Kosovo, Mr. Arian Zeka, the Chairman of its Board, Erolld Belegu, and its Board of Directors and Patron Memebrs. ACCK heads thanked Minister Beqaj for presenting them with information on MED activities. 32 main strongly engaged in ensuring maximum respect of the decisions of the Government and of the Assembly of Republic of Kosovo and of the applicable laws, while ensuring full procedural transparency during the privatization of Kosovo Telecom, in order to ensure the greatest benefits for the country’s citizens and to preserve the value of public companies’ assets. “Fields currently covered by MED are relatively complex and related to an important structural economic reform, which always presents different problems, discussions and options,” said Minister Beqaj. He said that cooperation between the Government and ACCK is made official through an agreement signed by the previous Prime Minister, on the establishment of the National Economic Development Council, according to which developmental strategies will not be merely treated as Governmental documents, but rather as documents the ownership over which should also belong to the business community. In this occasion, Beqaj reiterated the significance of the major projects in the energy sphere, including privatization of distribution and development of TPP Kosova e Re, emphasizing that the privatization will not be concluded through sole-source bids. On the other hand, Arian Zeka, the Acting Director of the American Chamber of Commerce in Kosovo claimed that discussions regarding MED projects, especially energy-related projects, are very important for the business community, while adding that ACCK supports these projects, including the privatization of PTK and Trepca complex. “This meeting represents another step of the ACCK towards the promotion of public-private partnerships,” Zeka said. Further Erolld Belegu, the Chairman of the Board of ACCK said that ACCK supports the Government of Kosovo, especially in the implementation of adequate legislation and initiation of investments in the business community in general. “The Board has taken a decision to engage into partnerships with the Government in identifying problems in certain sectors and jointly moving towards a stronger economy,” said Belegu. 33 The Government is interested to improve the national trade balance Prishtina, 19.04.2012 – The Government is interested to improve the national trade balance, which can only achieved through adequate export levels and long-term and reliable partnerships, which the businesses can establish through their contacts, said the Minister of Economic Development, Besim Beqaj. These comments were made today by Minister Beqaj during the meeting held with representatives of the country’s exporters, with which he discussed on the problems they face, while presenting the projects which are developed within MED. “I know that many of you are bearers of our exports. According to the World Bank, exports exceed 200 million euro and mainly comprise base metals. Therefore, we are proving that there are businesses which will influence our economic growth and are able to provide for qualitative products not only in the regional but also in other new markets,” 34 said Beqaj. He said that the best promotion of foreign investments in Republic of Kosovo is facilitated by treating local investors better and by utilizing their contacts for the attraction of new investors. Minister Beqaj informed the businessmen on the new developments in TPP Kosova e Re Project, KEK Distribution privatization, PTK Privatization and identification of investment potentials in hydro-energy, while underlining measures undertaken in the reform of publicly owned enterprises. “However, what I want to share with you is that we’re planning a donor conference on alternative energy and energy efficiency. This event will be organized in cooperation with WB in July or September, pending the harmonization of our agendas. It will represent an open invitation for Kosovo businesses and your contacts in the region and beyond. We ask you to communicate this to your partners, in order to increase the level of attractiveness of this sector,” he said. Finally, the Minister ensured representatives of Kosovo exporters that they will enjoy the support of the Ministry of Economic Development, while expressing the readiness of this institution to address all problems they face in the development of their activities. For his part, the exporter representative, Muhamet Ymeri, said that Kosovar companies need qualitative technological investments, and asked the foreign donors to support processing industries in this regard. “It’s a deficiency of Kosovar companies, which have remained enslaved by their decisions. They have failed to establish stronger consortia, which would be able to face regional and EU competition,” he added, while inviting local companies to engage in closer cooperation with each-other. In this occasion, representatives of exporters presented the problems they face, which are mostly of administrative nature, while promising to utilize their business contacts for attracting foreign investors. Beqaj: The Government supports foreign investments Prishtina, 24.04.2012 – The Minister of Economic Development (MED), Besim Beqaj, ensured a number of Croatian investors that Republic of Kosovo is conducting all necessary legislative changes, which will serve the creation of a favorable environment for foreign businesses. In a meeting held with heads of two large pharmaceutical and medical equipment production companies from Croatia, ‘Pliva’ and ‘Lola Ribar’, and in presence of the Croatian Ambassador in Prishtina, Zoran Vodopija, Beqaj undertook to ensure their increased presence in the Kosovo market. “Due to its developmental policies, these two enterprises find Kosovo extremely progressive, and consider that Kosovo can become a hub for the regional market, while reviewing long-term investment possibilities and options for the future, and including the possibilities to produce their products in Kosovo,” said the Minister. Beqaj said that these two enterprises are present in the Southeast Europe market and are relatively strong. The discussions waged today are a confirmation of the adequacy of Government of Kosovo economic policies, which aim to attract investors that are considering entering the regional market through Kosovo. For his part, the Croatian Ambassador Zoran Vodopija emphasized his content with the fact that two strong Croatian companies have to come to Kosovo and are planning to invest in Kosovo, in order to ensure their presence in Kosovo and the surrounding countries. Vodopija said that the Croatian Embassy continues to support Croatian companies, as well as Kosovar companies in further developing their exports. On the other hand, General Manager of ‘Pliva’ Company, Matko Bolanca, said that both Pliva and Lola are noticing change in Kosovo, in relation to the legislative changes that lead towards European Union approximation, and assess that these changes are quite positive. “We are currently looking into investing in Kosovo, and we want to be a partner in the economic development that will occur in Kosovo in the future. We are present in your market and will continue to be with you in this journey,” he said. 35 Minister Beqaj visited the Enterprise NewCo Ferronikeli Minister Beqaj supports development orientation of the Dragash Municipality Prishtina 08.05.2012 – Minister of Economic Development, Besim Beqaj, stayed today in the Municipality of Dragash, and in addition to meeting with the Mayor, Salim Jenuzi, also visited several companies of the municipality. Minister Beqaj commended and supported Dragash Municipality’s orientation, making small and medium enterprise development, farming and tourism as top priorities. Beqaj particularly appreciated the municipality’s orientation to provide, with symbolic compensation, a land plot of 36 hectares near the town for production businesses, and first production plants have already started construction. This is and important initial phase towards creating and running a Business Centre. In his visit in the textile industry “Remateks” which is lead by a success- 36 ful business from Turkey, exporting its entire production to the western countries, Minister Beqaj spoke of the commitment of his Ministry and the Government of the Republic of Kosovo for the creation of conditions conducive for doing business, providing concrete institutional support to the production economy as key for economic development. From his part, Director of “Remateks”, Ismail Sen, a company which employs 335 people from the region of Dragash, thanked Minister Beqaj for the support given to the company, and added that they are working in expanding existing facilities and production. Beqaj also made a visit to the Business Centre, and saw firsthand the newly erected buildings of the company “Hit Flores”, which deals with cultivation and harvesting of forest fruits “Zgatar komerc”. The company has completed the buildings and it is expected to soon start its operations in production of clothing, which enable an initial new employment of 50 people. Prishtina, 08.05.2012 – Minister of Economic Development, Besim Beqaj, accompanied by the Mayor of Drenas, Nexhat Demaku, on Tuesday visited the Enterprise NewCo Ferronikeli in Drenas. On this occasion, Minister Beqaj said that Ferronikeli has proven successful and has also shown prudency towards environment protection. “Company Ferronikeli is showing its successes, making capital investments and recently also showing particular attention to the environment, making investments of over €12 million, and installing important measurement equipment”, said Minister Beqaj, and added that the company directly contributes in contractual relations, having over 200 contractors. In addition, Minister Beqaj said that Ferronikeli has over 1 thousand employees, which strongly contributes to the budget. “It is one of the largest contractors of KEK, and Railroad contractors, and the Kosovo Government is interested to address together all issues and reach an understanding with the company”, said Beqaj, also commending Ferronikeli for its im- plementation of social projects. Minister Beqaj offered the Ferronikeli management governmental cooperation, which according to him is in the best interest of the people. Further, he stated that two ministries, Ministry of Economic Development and the Ministry of Environment, have been fully harmonized in terms of integrated environment licenses and they have encouraged all companies entering such a process to promptly meet all standards. “For us, it is encouraging that the company is also under an international certification process for environmental standards, and this is an additional argument, because we are not only speaking of a national level permit, but rather of international standards” said Minister Beqaj. On the other hand, Nexhat Demaku, Mayor of Drenas, stated that he is already informed on the investments made in preventing environmental pollution and installation of precipitators. The General Director of Ferronikeli, Janis Moutafis, thanked Minister Beqaj and Mayor Demaku for their visit to the company, and said that he counts on institutional support. 37 MED: Staff consent for transfers to KEDS does not put jobs in danger Minister Beqaj attends the EBRD meeting Prishtina, 08.05.2012 – In the meeting between the Minister of Economic Development, Besim Beqaj, and the leadership of the Kosovo Electricity Trade Union Federation, discussions were waged on the lack of clarity and concerns regarding the transfer of KEK staff to the Kosovo Electricity Distribution and Supply Company (KEDS), and it was agreed that a common public press release would be issued. During the meeting, the Presidency of the Electricity Trade Union Federation of Kosovo was given clarifications and arguments regarding the staff transfer statements required, explaining that this represents an issue of principle and does not threaten employees’ welfare, contracts or jobs. Minister Beqaj emphasized that the Government of Kosovo has done its maximum to preserve employee’s rights and jobs. In addition to ensuring full compliance with the applicable Law on Labour, the Government of Kosovo strived to ensure the protection of employees and their jobs through a decision of the Government Privatization Committee, issued on 31 January 2012. From the date of completion (as defined in the Share Sale and Purchase Agreement), KEDS will continue to employ all staff, for a minimum three year period from this date. Also, each employee holding a contract for a set period which 38 will elapse within three years, which will be calculated from the completion date of this privatization process, will be entitled for an extension of the contract until the third anniversary from the date of completion. The trade union was granted additional time, in accordance with the applicable legal provisions, to explain to KEK employees the significance of their stated written consent, as part of the KEK unbundling process, as well as the significance of the privatization process and transfer of KEDS staff in general. During this meeting, Minister Beqaj and the Presidency of Kosovo Electricity Sector Trade Union agreed to set the deadline for the consent of KEK staff transfer to KEDS at 13 May of this year. Prishtina, 18.05.2012 – Minister of Economic Development, Besim Beqaj, represented the Republic of Kosovo in the annual meeting of the European Bank for Reconstruction and Development’s Business Forum in London. Participating in this meeting dedicated to management in turbulent periods were representatives of EBRD member states and other countries. Minister Beqaj used this opportunity to conduct meetings with most of the representatives of EBRD member states. 39 KEDS privatization process in line with international standards Prishtina, 21.05.2012 – KEK Distribution and Supply Privatization Process is in full compliance with international standards, and maximally protects Kosovo’s interests, and doesn’t assume any legal or financial liabilities which could be problematic in the future, said Economic Development Minister, Besim Beqaj. The Minister made these comments today in a press conference, after meeting with the Government Privatization Committee for KEDS, informing the public on the course of the bid submissions, which resulted with the two Bids submitted by Limak & Çalik from, and Elsewedy Electrics A.E. from Egypt. Minister Beqaj said that transparency in the process is assured by allowing the presence of representatives of the bidding companies, and observes of IFC and Deloitte in the bid opening procedure, and 40 they have all confirmed the regularity of the opening process. “The documentation, in line with the rules, is stored in a treasury in a room which has 24 a day video recording, and two institutions hold the keys to access such information. We now expect the bid evaluation committee, which was appointed today by the relevant ministers, to carry out its duties”, he added. According to the minister, the Committee will convene as of tomorrow, and as soon as the procedures and evaluation of such documentation are clear, we will move with the announcement of the preferred bidder. He also added that the only criterion in consideration will be the best financial offer. Beqaj said that the ministers, on behalf of the Government, have had intensive discussions on the rights of employees. In this sense, GPC has taken a decision, with full Government backing, that all contracts of employees, including temporary ones, shall be guaranteed for a three-year period. Minister Beqaj also clarified that the Kosovo Government, different from other countries, assumes no obligations to cover losses, which may resulted in the future private company due to non-collections. “This was often misinterpreted, claiming that there will be government subsidies for non-collection. I reiterate before all of you that there will be no subsidies for non-collections. Subsidies will provided for generation and social cases, in line with the lists provided by the MLSW”, added the Minister.Economic Development Minister promised that the process will be soon finalized, and the interested parties will be timely informed, whereas the process of financial offers will be public, and in addition the presence of directly involved ministers, we will ensure the presence of all international institutions in Kosovo, including embassies, EULEX, ICO, European Commission, KfW, USAID, the civil society, media and any other interested party expressing a desire to be present. Minister Beqaj meets the Croatian Minister of Construction and Physical Planning, Ivan Vrdoljak Prishtina, 28.05.2012 – Kosovo and Croatia have enhanced their level of cooperation, moving from memoranda of understanding to inter-state agreements on specific and significant economic spheres. IN the given case, the proposal has come from the Government of Croatia, said the Minister of Economic Development after meeting the Croatian Minister of Construction and Physical Planning Ivan Vrdoljak. Minister Beqaj found the visit of the Croatian minister rather significant for the Republic of Kosovo, bearing in mind that from next year Croatia will become a full member of the European Union, hence, economic cooperation between these two countries is of special significance. He said that MED is currently analyzing a framework agreement on this matter, in accordance to which a common group shall be established, and shall meet every six months to analyze economic potential and administrative problems that the governments should eliminate in order to ensure normal and unhindered economic development. ‘I believe that this agreement will soon be signed by both governments, and bearing in mind the governmental obligations it entails, this agreement will represent an international inter-state treaty,’ said Beqaj, adding that cooperation with Croatia will include spheres like energy, telecommunications, institutional capacity building and obtainment of Croatian experiences in relation with EU funding. The Head of MED informed Minister Vrdoljak on projects Kosovo is implementing and invited Croatian companies to participate in these processes, which are subject to the highest international standards and regulations on competition. Beqaj said that both governments will support their economies’ orientation towards regional markets and that the said cooperation will bring mutual benefits, vowing for a new dynamics for economic and politic relations of Kosovo and Croatia. For his part, Minister Ivan Vrdoljak passed to his counterpart greetings of the Prime Minister and Deputy-Prime Minister for economic matters and assessed that to date relations between Kosovo and Croatia were not at the desired level. ‘I have come to transmit to you the following politic message: we are friends of Kosovo and we wish to further deepen our cooperation,’ said Vrdoljak emphasizing that he is not content with the fact that the Croatian Government has not paid due seriousness in its approach to cooperation with Kosovo in the economic sphere. He said that this is the moment when Croatia enters EU and leaves CEFTA. Leaving CEFTA will make the presence of Croatian products in Kosovo more difficult, and if we do not act in due time, then the presence of Croatian products and economy in Kosovo will be problematic. Vrdoljak said that the message he gave to Minister Beqaj is that he’s here to ask for partners and not offer help. He’s here to provide for mutual cooperation in the sphere of economy, as there is a possibility of cooperation in approaching wider markets. 41 The Conference with potential investors in PTK is held in London London, 22.05.2012 – A conference with potential investors interested in the Kosovo Post and Telekom was held today in London, with the aim of presenting the investment opportunities in Kosovo’s Telekom, through the purchase of PTK shares. In his presentation, the Chair of the PTK Government Privatization Committee (GPC), Minsiter Beqaj, gave assurances to the potential investors that this process will be conducted in line with highest international standards, and that the entire process will be based on the key premises: transparency, equal treatment of all investors, and competitiveness. Minister Beqaj also said that the Republic of Kosovo is pursuing all the necessary steps to approximate its legal framework in the telecom area with the EU acquis, with the aim of attracting private investments and ensuring more af- 42 fordable and quality communication for the Kosovo citizens. In the same time, Beqaj stated that through structural reforms and the introduction of the private capital in key sectors of Kosovo’s economy, including transportation, energy, telecom, and public services, Kosovo has reached a growth of 5.3% in 2011. Continuing with these reforms, Kosovo will ensure a sustainable economic development over the European average, and Kosovo’s citizens will have better living conditions. GPC Chair also said that PTK is a leading company in the mobile and landline telephony in Kosovo, both in terms of subscribers and in the quality of services provided. However, added value of PTK is based in the potential for further development of the company. “Kosovo, which has the youngest population in Europe, also has the lowest penetration of mobile and landline telephony, and this represents a great opportunity to increase the number of subscribers and development of new products”, he added. According to Minister Beqaj, with the involvement of a private investor in PTK, the telecom sector will see a much faster development trend and transfer of new knowledge. Transaction Advisors, from Lazard Freres, who explained the international competition procedure to be administered, PTK Managing Director, Ejup Qerimi, presenting the position of PTK in the telecom sector, and MP and Kosovo Development Assembly Committee, Sala Berisha-Shala, were also present in the conference. Potential investors participating in the conference stated that PTK is a rather attractive company for them to extend their investments, and that the Kosovo telecom market offers a good opportunity for further development. The Conference enjoyed an extensive participation of investors fro various countries, including: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. Accelero Capital (England, France, Egypt) Alchemy Telekom (USA) Avicenna Capital (England) Axos Capital (Germany) Bain Capital (England) Delta Partners Group (United Arab Emirates) Ethemba Capital (England) Genii Capital (England, Luxemburg) Goldmark Telecommunications (Anlgi) Hrvatske Telekom (Croatia), owned by Deutsche Telekom IFC (England) Magyar Telecom (Hungary), owned by Deutsche Telekom Monaco Telecom (Monaco) Mubadala (United Arab Emirates) Novator (England, Island) Searchlight (England) Tradestonegroup (England) PTK Government Privatization Committee has also planned a similar conference in Istanbul next week. The results of the two conferences will serve the preparation of a market analysis and the PTK privatization strategy. 43 Kosovo promotes its economic capacities to French investors Paris, 23.05.2012 – The Embassy of Republic of Kosovo in Paris, in partnership with the French Agency for International Company Development (UBIFRANCE), organized today in Paris a conference aimed at promoting investment possibilities in Kosovo, on the topic: ‘Business investments in Kosovo’. The conference was organized under the patronage of Prime Minister Hashim Thaci and coordinated by the Minister of Foreign Affairs of the Republic of Kosovo, in cooperation with the Ministry of Economic Development, Ministry of Trade and Industry and Ministry of Finance. The conference was attended by 60 representatives of medium and large enterprises in France, representatives of French commercial associations and representatives of French institutions and diplomatic corps accredited in Paris. The Ambassador of Republic of Kosovo in France, Muhamedin Kullashi, said to all attendees that Kosovo offers a great potential and remains open for French and European investments. Deputy Prime Minister and Minister of Trade and Industry, Mimoza Kusari-Lila, emphasized in her opening remarks Kosovo’s vast economic opportunities, in which European companies could successfully invest. She spoke on the process of deep structural reform, currently conducted in Kosovo with the aim of becoming a strong partner for foreign investments. “Kosovo is a country that provides numerous investment possibilities. It has a good strategic position; it is the state with lowest costs in the Eurozone; it has the youngest population in Europe 44 and low tax levels. The banking system is stable and privatization of publicly owned enterprises is ongoing. Today, Kosovo is home to over 3500 foreign companies or companies with mixed ownership structures, which have already invested over 1.5 billion Euro,’ said Kusari-Lila. The Deputy Prime Minister further presented in detail the large scale reform which is conducted under the auspices of the Government of Kosovo, aimed at eliminating barriers and enticing the development of the private sector, while underlining that the reforms undertaken make Kosovo a very suitable place for foreign investments. On the other hand, the Minister of Economic Development, Besim Beqaj, presented the economic development processes undertaken to date, the powerful ongoing reforms and the perspective of future cooperation and economic development between Kosovo and its partners. speech, Beqaj said to the attendees that the main generator of economic growth in Kosovo is the private business sector, and that reforms undertaken by the Government of Kosovo are all aimed at empowering the private sector. He made it clear that such structural reform and introduction of private capital into key sector of Kosovo’s economy will help Kosovo in ensuring a sustainable economic growth. ‘We remain committed to overcoming all barriers for business introduction and to provide adequate opportunities for making private businesses the main bearer of the country’s economic development,’ Beqaj said. He presented key sectors of Kosovo’s economy, including the telecommunications, energy and mining, and other public services, emphasizing that all said sectors comprise great investment opportunities for private capital investments from French and other long-term European partners. Beqaj also said that entry in Kosovo’s market ensures entry of larger French and European companies in the Southeast Europe market. The Director of UBIFRANCE for Southeast Europe, Michel Bauza, said in his speech that Kosovo is a country that offers great opportunities for French businesses and that UBIFRANCE and other French financial assurance companies, such as OSEO and COFAS, would support them in their endeavors. The conference for the promotion of Kosovo’s investment possibilities is organized in Paris and provides a venue for further discussions among senior officials of the Government of Kosovo, various commercial associations and representatives of numerous French and European businesses, and other parties of interest for investing in Kosovar economy. Presentations on investment possibilities in Kosovo were also held by the Director of the Kosovo Investment Promotion Agency, Valdrin Lluka, and the Unit for Public-Private Partnerships, Lorik Fejzullahu. The organization of the Paris Conference on Investments in Kosovo is one of the activities conducted in the framework of the country’s economic diplomacy, under the auspices of the Ministry of Foreign Affairs, aimed at enhancing foreign investments in Kosovo. The organization of similar conferences is envisaged to occur in many countries of the European Union, in USA and elsewhere. 45 Beqaj promises investors in Istanbul transparency and adherence to international standards Istanbul, 29.05.2012 – Today, the second conference with potential investors in the PTK project was held in Istanbul, with the aim of presenting investment possibilities in the field of telecommunications in Kosovo, through the purchase of shares in Kosovo Post and Telecommunications. This is the second conference of such nature, following the successful conference of a similar nature held in London last week. This conference served to present investment opportunities in Kosovo, the favorable fiscal environment, market potential and company profiles. The conference was chaired by the Chairman 46 of the Government Privatization Committee (GPC) for PTK, Minister Besim Beqaj, and attended by ministers-members of GPC Fehmi Mujota and Nenad Rasic. Also, present at the conference were PTK CEO Ejup Qerimi and Head of TRA Ekrem Hoxha. In his speech in front of conference participants, the Chairman of the Government Privatization Committee for PTK, Minister Beqaj, guaranteed for all potential investors that this process will adhere to the highest international standards and will be based on three key premises: transparency, equal treatment of investors and competition. Minister Beqaj also underscored that Republic of Kosovo is following all adequate steps towards full approximation of the legal infrastructure with the EU Acquis on telecommunications, with the purpose of attracting private investments and ensuring less expensive and more qualitative communication for Kosovo citizens. At the same time, Beqaj underlined that the ongoing structural reform and introduction of private capital in key economic sectors in Kosovo, including transport, energy, telecommunications, and public services, have yielded in an economic increase of 5.3 percent in 2011. The continuation of such reforms will provide Kosovo with sustainable economic development, at a rate higher than the European average, and will provide Kosovo citizens with better living conditions. The Head of GPC assessed that PTK is the leading company in the mobile and fixed telephony in Kosovo, both regarding the number of subscribers and quality of services. However, PTK’s added value is founded on this company’s expansion potential. According to him, Kosovo has the youngest population in Kosovo, and the lowest penetration level in the mobile and fixed telephony market. This provides for better chances for increasing the number of subscribers and developing new products. The introduction of the private sector in PTK, Minister Beqaj said, will result in swifter development and faster transfer of know-how. The Chief Executive Officer of PTK presented the general profile of the company to potential investors, underlining that PTK continues to lead the competition in the Kosovo market. On the other hand, the Chairman of the Board of RTA, Hoxha, presented in brief the specifics of Kosovo’s telecommunications market, from the regulatory aspect, and presented the plan for the future provision of a regulatory service in the sphere of telecommunications, entirely based on EU principles. Attending this conference were also Lazard Freres, the Transaction Advisor for this project. They explained that the competition procedure to be followed in this process is based on international standards. Participating potential investors have assessed that PTK is an attractive company, and could be subject to their investments and expansions, and that the telecommunications market in Kosovo provides great opportunities for further development. The conference was characterized with extensive participation of investors worldwide, including: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Aksoy Group (Turkey) Albtelecom (Albania) Altima (Croatia) Axos Capital (Germany) Bedminster Capital (England) Çalık Holding (Turkey) Ecolog (ND Balkan) (Germany) IFC (World Bank) Monaco Telecom (CWC) (Monaco, England) Sousa Vieira Advogados (Portugal Telecom) (Portugal) TEB (Turkey) Turk Telekom/Oger Telecom (Turkey) Turkcell (Turkey) Unicredit Group (Croatia, Italy) 47 Italians interested to invest in Kosovo Prishtina, 31.05.2012 – Minister of Economic Development (MED), Besim Beqaj, received today a delegation of businessmen from Italy, which he informed on the country’s economic development and reforms undertaken by the Government towards the improvement of the business environment. Minister Beqaj conveyed to Italian investors that Italy is Republic of Kosovo’s natural partner, especially in the viewpoint of economic development. ‘Kosovo holds an advanced position, from the viewpoint of investments and in comparison to other countries of the region,’ said Beqaj, while elaborating on current projects under development. For their part, Italian investors have expressed interest in investing in renewable energy sources, mining and food processing industries, with the aim of improving the physical infrastructure, which is a prerequisite for the country’s private sector empowerment,’ said Minister Beqaj. The Head of MED also informed the present Italian businessmen on good investment possibilities in the mining and touristic services sectors. Otherwise, the meeting was organized under the initiative of the Italian – Kosovar Chamber of Commerce. Minister Beqaj receives a delegation of Turkish businessmen Prishtina, 01.06.2012 – The Minister of Economic Development (MED) Besim Beqaj received today a delegation of businessmen from Turkey, and expressed his highest appreciations for the economic and politic cooperation between the Republic of Kosovo and Republic of Turkey. During the meeting, the group of businessmen from Turkey, lead by the members of the National Assembly of Turkey, Rifat Sait and Muzaffer Yurittas, Minister Beqaj said that Kosovo and Turkey have numerous ties and underlined the remarkable cooperation between the two countries. Also, Minister Beqaj explained concrete activities and projects that fall under the MED mandate to Turkish businessmen, while emphasizing the need to establish mutual partnerships between companies of both countries. On the other hand, member Yurittas underlined Turkey’s eagerness to support Kosovo in the sphere of economy, and expressed the readiness of Turkish companies to engage in the field of agriculture, livestock, textile and other fields. He stressed that Turkey will continue to support Kosovo from the economic and politic perspective. 48 Croatia stands ready to deepen cooperation with Kosovo Zagreb, 06.06.2012 – The Croatian Government expressed its readiness to deepen its cooperation with the Republic of Kosovo. This stand was made clear during the meeting that the Minister of Economic Development, Besim Beqaj, held today with the First Deputy Prime Minister of Republic of Croatia, Radimir Cacic. At this occasion, the number two of the Croatian Government has promised to remain personally committed to the advancement of bilateral cooperation between Kosovo and Croatia, with special emphasis in the sphere of economy, with the aim of ensuring prompter economic development of both countries. For his part, Minister Beqaj assessed that economic cooperation between the two countries is of special significance, especially bearing in mind that from next year Croatia will become a full member of the European Union. Head of MED underscored the spheres in which cooperation with Croatia could be further deepened, including energy, telecommunications, development of institutional capacities and obtainment of Croatian experiences and relations with the EU. In this meeting, Minister Beqaj and Deputy-Minister Cacic have discussed the Framework Agreement to be signed by the governments of both countries, which will further advance economic and politic relations between Kosovo and Croatia. Meanwhile during his stay in Croatia, Minister Beqaj took part in special meetings held by the Kosovo delegation lead by President Atifete Jahjaga with the Croatian President Ivo Josipovic, Prime Minister Zoran Milanovic, the Speaker of the Assembly Boris Sprem and the Albanian community in Croatia. 49 GPC announces Limak & Çalik is the preferred bidder in KEDS privatization Prishtina, 08.06.2012 – The Government Privatization Committee (GPC) has announced the consortium Limak Yatirim Enerji & Çalik Enerji Sanayi the preferred bidder for the privatization of Kosovo Electricity Distribution and Supply (KEDS) privatization, being the highest bidder o the process. 50 The GPC proposal came after the Bid Evaluation Committee for the KEDS Privatization concluded that Limak & Calik had bid at 26.3 million euro, while Elsewedy Electricy S.A.E. bid 22.8 million. The Minister of Economic Development (MED), Besim Be- qaj, said that the only criterion in this bid evaluation was the financial criterion, while assessing that the entire process was conducted in full harmony with the applicable legislation, highest international standards and in an entirely transparent manner. Beqaj said that this process is rather successful, taking into consideration the global crisis and economic recession in the Eurozone countries, which have influenced the diminishment of companies’ interest for investing in the region. The Minister said that there is maximum commitment for avoiding the deficiencies and bad experiences from the countries of the region in Kosovo, while underlining that the Government of Kosovo will not subsidize losses and burden the state budget and final consumers. Head of MED thanked representatives of KOSTT, KEK, ERO and the Energy Technical Group for their contribute to the compilation of documents and successful closure of the process; to USAID for the support given in the implementation of the project and to KfW, World Bank, European Commission for their invaluable contribution. Further, the representative of IFC (transaction advisors in the process) Bernard Atlan provided a short summary of the transaction, assessing that the entire process adhered to the envisaged dynamics and rules. Roxane Suratgar, USAID representative and observer in this project, added that she is certain that Government of Kosovo has managed the entire KEDS privatization process in the most transparent and professional manner, and in compliance with the highest standards, hence she entirely supports the GPC’s decision. Further, Joe Oliver, senior financial advisor in Deloitte, also an observer in this process, said that the Government has undertaken all steps necessary to ensure transparency and unhindered access to information throughout the privatization process, by including all parties of interest and experts in reviewing all relevant documents and by providing equal access for all prequalified companies throughout the process. For his part, the representative of Limak & Calik consortium, Ismail Ergunes, assessed this process to be extremely transparent and fair, while adding that his company is well acquainted with the problems in Kosovo’s distribution network. He said that in the event this project is awarded to them, the company will advance the distribution network and will improve quality of service, while underscoring that the price is not the most important thing. Rather the most important things are quality services and security of supply of electricity, which require significant investments in the network. Otherwise, the proposal of the Government Privatization Committee should be adopted by the Government, in order for the Limak & Calik consortium to be officially appointed the winning bidder of KEDS privatization. 51 Beqaj informs the Energy Community Secretariat on the structural reforms in energy Prishtina 18.06.2012 – Minister of Economic Development, Besim Beqaj, on the occasion of the Kosovo Day in the Energy Community Secretariat in Vienna, informed the participants on the one-year progress of Kosovo and the implementation of priorities related to the structural reform in the energy sector in particular, and economy in general.Minister Beqaj provided information on the adoption of relevant bylaws in energy, recent developments in the electricity distribution and supply privatization process, implementation of the ‘Kosova e Re’ Power Plant Project, which aims to increase generation capacities and achieve security of supply with affordable costs for the citizens of the country. He also spoke of the inclusion and contribution of Kosovo representatives in drafting the regional energy strategy and Kosovo’s commitment to part of the gas ring, which is also in line with the Energy Strategy adopted in the Kosovo Assembly. With the aim of implementing European 20/20/20 standards by 2020, Minister Beqaj mentioned the concrete steps undertaken by the Ministry of Economic Development. To this end, with the aim of using alternative resources for electricity generation, MED is continuously promoting incentive tariffs for such energy generation. In addition, with the aim of reducing procedural barriers for the development of renewable energy potentials, MED has initiated the development of a task force which will analyze the current situation, and propose simplified procedures to acquire relecant documents. “Draft Plan on Renewable Energy Sources 2011-2020 has been drafted and will be finalized within 2012, after receiving comments from 52 the ECS, and targets for alternative sources generation energy will be defined accordingly. The implementation of the Action Plan on Energy Efficiency 20102018, which includes a target of 9%, is under implementation, and concrete projects have been financially supported by the Kosovo Government”, added the Economic Development Minister. Minister Beqaj informed the Secretariat on Kosovo’s preparations in organizing a Donor Conference on energy, which will be organized in cooperation with the EU General Directorate on Energy and the World Bank. This will be a high level conference, and the participation of the EU Commissioner on Energy, Gunther Oettinger, is also planned. Beqaj asked the Energy Community Secretariat to ensure that all parties respected the reached Agreements. Specifically, the Minister requested the further engagement of the Secretariat to conclude the legal matter related to the illegal use of Kosovo’s transmission network by Serbia. Minister Beqaj restated Kosovo’s commitment for integration in the regional and European energy market, which would contribute the establishment of a more open and effective market, to the service of all citizens of the country. In addition to MED, this meeting was also attended by representatives of MTI, ERO, KEK, KOSTT and other relevant stakeholders. Inaugurated the National Museum of Crystals and Minerals of Kosova Prishtina, 22.06.2012 – The National Museum of Crystals and Minerals has a particular importance for Kosovo, nationally and regionally, and hope that this institution will be a connecting bridge of science, economy, history and culture of our new country, said the Minister of Economic Development, Besim Beqaj. Beqaj made these comments in today’s inauguration ceremony of the National Museum of Crystals and Minerals in Stantërg of Mitrovicë, in the presence of Government Ministers, Managers of Trepça, representative of the international community, and numerous members of the public. On this occasion, Beqaj said that based on historical facts, the use of lead, zinc and silver in Kosovo is a tradition, and has an important effect in the country’s economy. For this reason, institutional consideration and involvement make a particular task for all. “Lead and zinc mines, particularly the Trepça mine in Stantërd, is one the most attractive sources known in the region and beyond, due to its diversity, size and beauty of discovered crystals thus far”, he added. He said that the crystals discovered in this area are collected by the employees and engineers of Trepça, and this has resulted with the establishment of the Museum of Crystals in Trepça in 1964. In the beginning, the number of exhibits was symbolic, but in time, this museum gained recognition and importance globally. However, because fo the dark period of Kosovo’s history, exhibits were not maintained according to our tradition and best international practices. “It was the state of the museum’s building that made the Ministry of Economic Development, the Ministry of Environment and Spatial Planning, and “Trepça” to build a new facility for this strategically important museum”, said Beqaj, and added that the new museum is modern, build according to all cultural and touristic parameters, and modern international standards. Deputy Minister of Environment and Spatial Planning, Ilir Mirena, said that knowing that Kosovo has many resources of crystals and ores, MESP, in cooperation with MED, and the Trepça enterprise, considered that it is important to support this project, and the institutional infrastructure has been developed to provide institutional care for this museum. From his part, Trepça’s manager, Ferat Shala, said that the value of this project is around 560,000 euro, and that nearly 1,500 selected examples of Kosovo’s crystals and minerals are exhibited. Shala also spoke on Trepça’s performance, and said that the Stantërg mine currently has 1513 workers, and that it has increased its own source revenues; only last year it has hired 200 new employees. Trepça’s manager said that the enterprise has had the support of the Japanese and Czech Governments, and that the greatest challenge is the restructuring of the Industrial Complex “Trepça”. Finally, Minister Beqaj, in the company of the Minister of Finance, Bedri Hamza, Deputy Minister of Environment, Ilir Mirena, and Trepça’s Manager, Ferat Shala, have cut the inauguration ribbon of the museum and visited its interior displays. 53 Beqaj: Raising the capacities of entrepreneurs – advancement of the private sector Çalik & Limak promise up to 300 million euro in investments Prishtina, 06.07.2012 – KEDS privatization is a process led by the Government, in conformity with the Assembly decision, which aims to conduct transparent, open and competitive procedures, in line with the relevant international standards, stated the Minister of Economic development, Besim Beqaj. Beqaj made these comments during the public meeting of the KEDS Government Privatization Committee, in which the consortium of Calik and Limak presented its structure and plans to invest in Kosovo’s electricity distribution system. “All decisions taken by the GPC in regard to KEDS were full, harmonized and with unanimous votes. They were further adopted and verified by the Government of Kosovo, who decided to proceed with the preferred bidder and to enter negotiation arrangements with the aim of defining terms and conditions to be stipulated in the contract between GPC and Çalik & Limak Consortium”, he said. While commenting on the comparisons between this process and those conducted in the region, MED Head said that contrary to Albania, Macedonia or Montenegro, the Government of Kosovo has not undertaken any obligations towards the investor; left aside the 110 kV privatization; debts still belong to KEK and staff is guaranteed employment for the following three years, regardless of the length of their current contracts. He underlined that if the Government concludes that the contract is not respected by the investor, it will terminate the contract and retake ownership over the company, without any financial obligations. For his part, the Minister of Labor and Social Welfare, Nenad Rasic, said that his Ministry was engaged throughout the process to ensure greater rights for the employees, especially taking into account the socio-economic impact of the ownership change. According to him, this change will not incur any negative impacts. On the 54 contrary, it will have a positive impact and will strengthen the households of the staff from the financial aspect, as employees with shortterm contracts will now have 3-year contracts. This proves the Government’s commitment throughout the process. Further, the representative of the consortium of Calik and Limak, Serhan Can, presented a short overview and profile of the company, as well as works by Calik Holding and Limak, as well as the plans for KEDS development in the upcoming 15 years. Can promised up to 300 million euro in investments, of which 200 million in the current electricity distribution network; diminishment of annual losses by 3% and retention of human resources, as well as their further advancement through professional training. Calik and Limak have identified the following challenges: non-technical losses, northern part of Kosovo, electricity theft, lack of meters and low collection rates, while noting that their purpose is to diminish losses, promote efficiency, improve security of supply and ensure the lowest possible electricity tariffs. At the end of this meeting, Minister Beqaj, as the head of GPC, and the Calik & Limak Consortium representative, responded to questions and matters of interest presented by civil society and trade union representatives. Otherwise, participants in this meeting expressed their surprise and indignation with the behavior of two Vetevendosje Members of Assembly, who used their participation in the meeting to spread an irritating smell, in ann unsuccessful attempt to hinder the conduct of the meeting. Prishtina, 16.07.2012 – Minister of Economic Development, Besim Beqaj, received today Gregg Fairbrothers, Professor of Entrepreneurship at the Tuck School of Business and William Wechsler, vice-president and lecturer at the American University in Kosovo, with whom he discussed on the development of programs aimed at raising the capacities of entrepreneurs. Professors from these higher education institutions launched the idea for the establishment of a network of entrepreneurs through entrepreneurship development incubators, in which entrepreneurs will have the opportunity to improve their capacities and gain knowledge of the best international practices. For his part, Minister Beqaj informed the distinguished professors on economic orientations of the Government of Kosovo, while expressing his support to programs that will assist students in obtaining the newest knowledge and practices. “Development of the private sector represents a key priority and the Government is investing in capital investments aimed at establishing the physical and legal infrastructure, which will provide improved conditions for the private sector to become a bearer of the country’s economic development,” said Beqaj. According to him, the main structure that will be the bearer of this process will be small and medium enterprises, while the Government is working to provide adequate prerequisites for the development and advancement of innovations, in order for our enterprises to be competitive in the local and international markets. Minister Beqaj said that Kosovo has strong human potentials, which could be advanced through various programs and could be deemed a comparative advantage for both potential local and international investors. 55 Beqaj: MED, significant results in realizing objectives Prishtina, 17.07.2012 – The Minister of Economic Development, Besim Beqaj, has emphasized that according to constitutional obligations, in line with a vision for a sustainable economic development of the Government, and the annual action plan, MED strives to ensure structural economic reforms, for a functioning market economy, strengthening of the private sector, introduction of high professional and institutional standards, with the aim of ensuring sustainable economic growth and creating new jobs. Minister Beqaj made these comments in the press conference presenting the biannual activities and achievements of MED. “Fulfilling these basic principles, the Ministry has implemented a series of planned activities in energy, mining, telecommunication, monitoring of publicly owned enterprises, the PTK and KEDS privatization process, Kosova e Re Power Plant Project and the legislative plan, 56 completing its tasks successfully”, said Minister Beqaj. Beqaj said that Mining Strategy 2012-2015 was drafted by the Ministry and approved by the Assembly of Kosovo. “This strategy is based on four fundamental principles: Creation of favorable conditions for economic utilization and monetization of mining resources, and attracting investments; Enhancing human and institutional capacities in the mining sector; Enhancing relevant institutional scientific and educational capacities; Social issues and community benefits, and environment protection”. The following pieces of legislation were drafted and adopted in the first six months of 2012 - Law No. 04/L-094 on Information Society Services, and – Law No. 04/L-111 amending the Law No. 03/l-087 on Publicly Owned Enterprises. Other laws drafted and pending adoption are – Draft Law on Electronic Communication (pending adoption by the Assembly); Draft Law on Mines and Minerals, amendment (initiated by the Committee on Economic Development, Infrastructure, Trade and Industry, supported by MED professional staff. A series of bylaws have also been adopted, such as administrative instructions, regulations and other bylaws under the scope of the Ministry.“In addition, MED has made steps to enhance the functioning of its civil service, namely the creation of the new Development Policies Department, and the merging of energy and mining departments into one”. MED has also completing all of its obligations of the European Integration process, by way of generating reports, participating in stabilization association process meeting, and fulfilling its obligations under the feasibility study of the stabilization association process. Other obligations and requirements of the Energy Treaty have been completed, and responses were submitted to all requests of the ECT Secretariat. The MED received high considerations in the annual meeting known as the “Kosovo Day”. MED has fulfilled its activity plan of monitoring publicly owned enterprises, including: Separation of PK from PTK was finalized on 31 July 2012, and as of 1 August there are two separate business entities, Post of Kosovo and PTK. After the unbundling of Kosovo Railways with the aim of restructuring, enhancing competition, and opening the market for new investors, there are two new services companies operating in 2012 INFRAKOS j.s.c. and TRAINKOS j.s.c. Minister Beqaj said on this occasion that around €300 million of direct investments have been secured this year only for energy, including the sale of KEDS, investments in small Hydro Power Plants in the Municipality of Deçan, and investments envisaged under the privatization of KEDS. In 2012, 20 capital projects are financed by the Budget of the Republic of Kosovo, reaching a value of 7.745.190 Euros, for the energy sector, railways, potable water, and waste management. The overall amount of infrastructure projects, under the scope of MED, financed by donors is €58,5 million, and the participation of the Government and Municipalities includes an amount of €22 million. More specifically, these projects include – Water treatment facility in Prishtina, with a value of €35 million, financed by KfW-20 million, EC-5 million, Municipality of Prishtina-5 million, and the Government of Kosovo-5 million (The project is still in the initial phase, pending selection of the consultancy company for project implementation). – Wastewater plant in Prizren, estimated value of €22 million, financed by KfW 12 million, Kosovo Government 5 million and the Municipality of Prizren 5 million (The project is still in the initial phase, pending selection of the consultancy company for project implementation) – Construction of the water supply system in rural areas in the Southeastern part of Kosovo, with an estimated value of €8.1 million, financed by SDC-6 million, Kosovo Government and Municipalities-2 million. (The project is under implementation). – Projects on replacing the water supply network in Pejë, Prizren and Istog financed by USAID; – Water supply plant in Mitrovicë, financed by the European Commission, with a value of €11 million. The project is under implementation; – Replacement of the water supply system in Mitrovicë, financed by the Government of Luxemburg, with a value of €4.5 million; 57 An analysis of operational costs of Enterprises providing public services shows that there was a decrease of fuel costs by 16%, and an increase of representation costs by 8% compared to the same period of the previous year. A decline in salary costs has also been noted in PTK of around 25% from the previous period, as envisaged in the business plan, after the suggestion of the shareholder. “With the aim of providing more quality public services for the citizens of Kosovo in heating, energy, water supply services and waste collection in the north of Mitrovica, in 2012 the Government will subsidize POEs with around €19 million, 9,5 million of which was already transferred and social cases were subsidized with nearly €4.4 million for energy. In 2012 there is a reduction of subsidies for energy imports from 27.3 million to 13.5 million euro” said minister Beqaj.Kosovo Energy Efficiency Agency and the Kosovo Geological Institute were established during this period, the National Museum of Crystals and Minerals of Kosovo was inaugurated, and the National Geology Institute was made operational.The construction of new HPP capacities of 23 MW has started in River Lumbardhë, in the region of Deçan by the company KELKOS Energy (Austrian company). The investment value is 55.000.000. For energy efficiency, €592 thousand have been allocated from the Kosovo budget, and €24.8 million have been committed by donors for concrete projects. In addition to the approval of the legal infrastructure, MED and the Kosovo Government, in consultation with TRA, has undertaken concrete steps in telecommunication and approved the decision for further liberalization of mobile telecommunication services to enable the use of frequency resources available to the existing licensed mobile operators, application of new technologies, and provision of next generation mobile broadband services and networks – mobile broadband internet. 58 Speaking on the privatization process of 75% of TPK shares, Minister Beqaj has said that the selection of companies for prequalification for tender is underway. 8 companies have applied for prequalification. The deadline for the publication of the PTK privatization tender is end of August or beginning of September, and the entire project will be completed by the final quarter of 2012. KEDS privatization process is near completion. Currently, work is ongoing in the finalization and signing of the transaction documentation, and this is expected to occur within 90 days after the announcement of the winner, but no later than 19 October 2012. Initially, the Government of the Republic of Kosovo, on June 12, 2012, approved the decision to endorse the recommendation of the Government Privatization Committee to announce the Consortium Calik – Limak and their the offer of €26.3 million, as preferred bidder in the KEDS privatization process. Investments of around €200-300 million of investments were announces in the conference announcing Calik-Lima Consortium as winner. Minister Beqaj said on the process of developing TPP Kosova e Re that the Project Steering Committee has analyzed requests of prequalified investors, completed a market sounding in terms of investments in the electricity generation sector, conditions of prequalified bidders for the submission of the bid, and proposed the Government that the Power Plant Kosovo B is removed from the current tender package, and develop it as a second phase after the project TPP Kosova e RE, with the aim of ensuring coherence between the two separate, but closely interrelated processes, and a better coordination with the transaction for the privatization of Distribution and Supply Company. According to the Law on the Budge for 2012, MED has revenues of €42.6 million. In the six-month period, 49 percent of the budget was used. Five companies are prequalified for the purchase of 75% of PTK shares Prishtina, 17.08.2012 The Government Privatization Committee for PTK, in its meeting held on 17 August 2012, adopted the list of prequalified companies for participating in the bid to purchase 75% of PTK shares. The application evaluation process for applying companies was conducted by a professional committee comprising senior professionals from all ministries represented in the GPC. Also, the transaction advisor confirmed through a special evaluation report the conclusions of the said report issued by the evaluation committee appointed by GPC. Based on GPC’s decision, companies that have fulfilled legal, financial and technical criteria set in the call for prequalification, which will subsequently be invited to participate in the tender for the purchase of 75% of PTK shares are: •Albright Capital Management LLC, in cooperation with Portugal Telecom •Columbia Capital, in consortium with ACP Axos Capital Gmbh,i n cooperation with British Telecom - Poland (owned by British Telecom) •M1 International Limited •Turkcell •Twelve HORNBEAMS, in consortium with Avicenna Capital LLC, in cooperation with Sofrecom (part of France Telecom). Criteria envisaged in the call for prequalification provided for the prequalification of telecom operators and investment funds that have entered into cooperation agreements with telecom operators, or have earlier invested in large telecom operators. Prequalified companies and consortia provide for strong competition in the remainder of the process for privatization of 75% of PTK shares. Participation of these companies from around the globe in PTK privatization clearly demonstrates the attractiveness of the company and the telecommunication market of the Republic of Kosovo. In the following days, GPC will conduct other steps required for opening the tender procedure for the sale of PTK shares, in which all prequalified companies will be invited to participate. The tender is expected to be opened in September, whereas it will remain open for around two months. GPC considers to have very successfully concluded the prequalification phase. 59 Beqaj: Development of the private sector, a priority for the Government Prishtina, 23.08.2012 – The aim of the Government of the Republic of Kosovo is to ensure that the private sector is the main driver of the country’s economic development, said the Minister of Economic Development, Besim Beqaj, in a visit to “Abi” Company in Prizren.In this visit, the Minister was received by the Company’s Manager, Irfan Fusha, where they discussed on the company’s activities and challenges they face. The minister reconfirmed the support of the Government, namely the Ministry of Economic Development, for the private businesses.Minister Beqaj also said that the government policies are aimed at creating fiscal and administrative facilitations with the aim of creating more suitable conditions for business development, and added that the production sector is of particular importance. From his part, the Manager of “Abi”, Irfan Fusha, informed Minister Beqaj on the work of this company, and its activities in food processing, including milk products, fruits and vegetables. He also informed the minister that there are around one thousand people employed, and added that institutional support is crucial for the private sector development, and asked for the Ministers assurances of such support. 60 USA supports economic development of Kosovo Prishtina, 29.08.2012 – The Minister of Economic Development, Besim Beqaj, stated that he was promised unsparing support by the US Ambassador in Prishtina, that there will a maximal support for all areas under the scope of MED, contributing to the economic development of Kosovo. Beqaj made these comments after the introductory meeting with the US Ambassador in Prishtina, Tracey Jacobson, where they discussed on political and economic support of the US for Kosovo in the crucial statebuilding period, continuing today when our country is entering an important phase of developments, creating a better life for the citizens of the Republic of Kosovo. Beqaj said that he informed the American diplomat on the ongoing projects in energy, electricity distribution privatization process, TPP Kosovo B, TPP Kosova e Re, and other planned investments on renewable energy. “I informed her on the donor conference which will be held in November in cooperation with the World Bank and the EC. I also informed her on the PTK privatization process, a rather successful process thus far, where we have a serious engagement of globally renowned companies”, said Beqaj. The Minister said that they also discussed on the efforts to revive the mining sector, an extremely important sector with a huge potential for job creation. “We have also spoke about publicly owned enterprises and the restructuring needs, in order to enhance their capacities, which would, in principle, directly improve the life of the citizens”, said Beqaj, and also added that he received unsparing support of the Ambassador for all such sectors, including the support of USAID and other expects which may be involved meanwhile. From her part, Ambassador Tracey Jacobson confirmed that she used this opportunity to meet with Minister Beqaj and familiarize with the Ministry’s projects on areas vital for Kosovo’s economic development, including energy. She said she was please with the role of the US Government and of USAID, providing technical support for concrete projects, and highly appreciated the focus of MED and the Government in the privatization process, which is being carried out in line with international standards and in complete transparency. 61 Time for an Economic -Trading Agreement between Kosovo and Albania Prishtina, 31.08.2012 – The Minister of Economic Development, Besim Beqaj, and his counterpart, Minister of Economy, Trade and Energy of Albania, Edmond Haxhinasto, concluded that the time has come to institutionalize the political will and readiness with a bilateral economic-trading agreement. In meeting held today in Tirana, Beqaj and Haxhinasto agreed that the first meeting of the Joint Economic Committee Albania-Kosovo will be held this year, with e view to give a powerful thrust to the relations between the two countries in all areas. Both ministers emphasized that the strategic character of the relations between Albania and Kosovo, the aim of which is to convert them into model relations in the region, is in lien with the wishes and aspirations of both countries, namely to achieve integration in European and Euro-Atlantic institutions. Ministers Beqaj and Haxhinasto have appreciated the increasingly positive trend of trading exchange between the two countries, and emphasized that there is more room for improvements, in enhancing and intensifying trade exchanges, investments in infrastructure, tourism, creation of a common energy market, etc. The two counterparts agreed that an important area of cooperation is the development of the natural gas 62 GPC authorizes initiation of the tender for the sale of 75% of PTK shares market, and the integration of energy systems of Albania and Kosovo, in order to utilize hydro potentials in Albania and coal reserves in Kosovo. They also highlighted the importance of developing joint new energygeneration capacities, and the cooperation between the two countries ensuring that the transition of goods towards Kosovo is carried out directly in the Durrës port. Prishtina, 11.09.2012 - In its meeting convened today, the GPC adopted the bidding package documents for the sale of 75% of PTK shares. Part of the bidding documents adopted today by the GPC are bidder instructions, draft sale-purchase agreement and the draftagreement between future PTK shareholders. Based on these documents adopted by the GPC, prequalified companies are in- vited to provide their analytical reviews and to take part in the competition for the purchase of 75% of PTK shares. Prequalified companies participating in this process have to meet formal legal, financial and technical conditions delineated in the bidder instructions, whereas the sole criterion on the basis of which the potential buyer will be selected is the highest price for the sold shares. GPC has concluded that the Kosovo Post is separated from PTK and is established as a new publicly owned company, which functions as an independent unit. Kosovo Post has inherited all immovable property previously belonging to PTK. Based on the bidding package, 75% of PTK shares will be sold in respectively two business units – Telecom (fixed telephony) and Vala (mobile telephony). On the other hand 25% of PTK shares will remain in state ownership for at least 5 years upon conclusion of the transaction and will be monitored by state representatives in the PTK Board, while all details of this arrangement will be regulated by the sale-purchase agreement. Pursuant to the bidding package, all current PTK staff will have guaranteed employment for at least the upcoming 3 years, whereas the potential bidder will be obliged to develop the company and improve further services provided to citizens. GPC remains convinced that PTK privatization will bring positive effects in Kosovo’s economy in general and in the Kosovo telecommunications market in specific. GPC encourages interested investors to remain committed to the process and ensures them that the process will continue to adhere to the highest international standards of transparency and will provide equal treatment for all, noting that Republic of Kosovo welcomes all foreign and local investments in the country and that Kosovo laws uphold such investments. 63 Economic cooperation between Kosovo and Macedonia is enhanced Prishtina, 07.09.2012 – Kosovo and Macedonia have an excellent political cooperation, which is also reflected in economy, said the Minister of Economic Development, Besim Beqaj, in the second Joint Committee meeting on economic cooperation held today in Skopje. 65 Minister Beqaj said in a conference with his Macedonian counterpart, Minister of Economy, Valon Saraqini, that he is confident that the cooperation will be enhanced in the private sector and that such excellent relations will also be reflected in a further increase of trading exchanges between the two countries. “It is very important for us to enhance economic relations between the Republic of Kosovo and Republic of Macedonia, particularly considering the global and European ongoing economic crisis”, said Beqaj. Economic Development Minister said that he informed Minister Saraqini on the recent infrastructural initiative of the Republic of Kosovo, namely to start with the construction of Route 6, the Motorway Prishtina-Skopje, which will enable our two economies to have an easier movement and exchange. “The role of governments is to eliminate all economic barriers, including legal and procedural obstacles, to create an infrastructure enabling an easier communication”, said Beqaj. On this occasion, Minister Beqaj emphasized the potential of Kosovo in energy, and added that the mining legislation opens way for the Republic of Kosovo to be more innovative in utilizing such resources with newer technologies. According to Beqaj, the possibility of connecting Kosovo with the gas ring was part of discussions, including trading exchanges, production and the intention to jointly access regional markets and beyond. From his part, Macedonian Minister of Economy, Valon Saraqini, said that the second Joint Meeting of the Committee on Economic Cooperation will be focused in energy, and other areas such as mineral exploitation and research, tourism, agriculture, etc. “What I want to emphasize is that the Republic of Macedonia, in its last meeting, approved the agreement to protect investments of both countries, and it will soon be signed by the Ministers of Finances of Macedonia and Kosovo, respectively, in order to ensure that investments are more adequately addressed”, said Saraqini. He also said that there are discussions on trading exchange, as the Republic of Kosovo is an important partner for the Republic of Macedonia, as Kosovo receives the third highest exports of Macedonia. “This is all an indication that the two countries have a great potential, and a good opportunity to cooperate. I believe that today, with Minister Beqaj, in this Committee, there will be concrete conclusions which both ministers will process, so that by the next meeting there will be concrete results”, he added. In the second Joint Committee meeting on economic cooperation Kosovo-Albania, which is a product of the bilateral agreement on economic cooperation, expert delegations of both countries have identified and reviewed the possibility of bilateral cooperation in energy, mining, tourism, agriculture, etc. 65 Minister Beqaj receives a delegation of the German Parliament Minister Beqaj attends the Investors’ Conference in USA Prishtina, 19.09.2012 – The Minister of Economic Development, Besim Beqaj, received today a delegation of the German Parliament, headed by the social-democrat member Rolf Hempelman, with which he discussed on the most recent developments in the sphere of economy in general and energy in specific. The German Member of Parliament, Hempelman, was informed by Minister Beqaj on the state of Kosovo’s economy, and projects under development, especially in the sphere of energy and mining which is deemed of special significance for the country’s development. At this occasion, Beqaj presented the engagements of the Government, respectively of MED towards developing new energy generation capacities, development of renewable sources, increasing energy efficiency and undertaking measures to mitigate environmental impacts and attract foreign investments. MED head underscored that sectors that may attract potential investments include the metal processing, wood processing, food processing and telecommunications sector. The Minister said that the Government is committed to improve the physical infrastructure, hence 40 percent of the budget is planned to be invested in capital investments. He also said that reforms are undertaken with the aim of improving the PubliclyOwned Enterprises’ performance and improving the level of services provided. Minister Beqaj reemphasized MED’s commitment to fulfill obligations deriving from EU legislation and the Energy Community Prishtina, 23.09.2012 – The Minister of Economic Development, Besim Beqaj, during an official visit in the United States of America, took part in the Investors’ Conference held there. The Investors’ Conference was organized by the Ministry of Economic Development, Ministry of Trade and Industry and American Chamber of Commerce in Kosovo, and was deemed a good opportunity to present investment opportunities in Kosovo. Using this occasion, Minister Beqaj informed conference participants on the economic situation in the country, its resources and investment potentials in the fields covered by MED, as well as Kosovo’s legislative framework regarding foreign investments. Also, during the visit in USA, Minister Beqaj will conduct meetings with senior representatives of the American Department of State, World Bank, Department of Energy and Department of Mining. 66 Treaty, while expressing his highest appreciation for Germany’s assistance to Kosovo in the energy sector. Noteworthy, Rolf Hempelman is a member of the German Parliament since 1994. He is a member of the Economy and Technology Committee, and the Environment, Natural Protection and Nuclear Safety Committee. 67 Beqaj holds a lecture on ‘Perspectives of Kosovo’s Economic Development’ in Washington Washington, 27.09.2012 – The Minister of Economic Development, Besim Beqaj, held today a lecture at the John Hopkins University in Washington, in which he presented a chronology of the state-building process from 1999 to date, as well as the challenges and economic perspective Kosovo faces. In the lecture moderated by Daniel Serwer, member of the Center for Transatlantic Relations, Minister Beqaj emphasized that since the declaration of independence in 2008, Kosovo oriented its policies towards economic transformation and increased and sustainable economic growth. After presenting an overview of Kosovo’s economy, the Head of MED underscored the main orientations of the Government of Kosovo, such as preservation of the macro-fiscal sustainability, improvement of the investment environment, support to the private sector, development of the public infrastructure, revitalization of the agricultural sector and development of human capital. Beqaj emphasized that the main potential development sectors include energy, mines, telecommunications, wood-processing and 68 metal-processing industries, etc. while adding that institutions have formalized their cooperation with business associations, through the establishment of the National Economic Development Council, with the aim of strengthening further the private sector. Moreover, he spoke on the privatization process and projects that are currently under development, while confirming the engagement of the Government to the conduct of this process in conformity with international standards. In this, the Government enjoys great support by the relevant international mechanisms. Minister Beqaj said that Kosovo remains committed to its membership in the European Union, thus, it is conducting all necessary reforms towards the fulfillment of all required criteria that mandate EU accession. The lecture of Minister Beqaj at the John Hopkins University in Washtington is held as part of his official visit in the USA, which included his participation in the Investors’ Conference in Washington, during which he presented investment possibilities in Kosovo to all potential investors. Beqaj: Kosovo is ready to fulfill all its obligations deriving from the Energy Community Treaty Prishtina, 18.10.2012 The Minister of Economic Development, Besim Beqaj, said today in Budva, Montenegro that the institutions of the Republic of Kosovo stand ready to fulfill all their obligations deriving from the Energy Community Treaty and that they commit to cooperation and establishment of the common electricity market in the region. In this meeting, Kosovo participated as an independent and sovereign state and without UNMIK’s presence. Speaking at the Tenth Meeting of the Ministerial Council of the Energy Community, Minister Beqaj emphasized that pursuant to its developmental objectives and constitutional and legal obligations, Kosovo has undertaken a number of concrete activities towards structural changes in the energy sphere. Minister Beqaj underscored the role of the Energy Regulator’s Office in further processes this sector will undergo, mentioning its role pertaining to electricity prices, investments in this sphere and other regulatory matters. MED Head also spoke on investments in this sphere, making note of investments to be in the development of hydro power plants in the Decan region, where an Austrian company invested considerable resources for the construction of a HPP with overall capacities amounting to 23 MW. Kosovo is dedicated to conclude the decommissioning of TPP Kosovo A by 2017, as initially promised, said Minister Beqaj. He informed the present attendants that in 2013-2014 Kosovo will transpose in its national laws the provisions from the third package of Energy Community Directives, whereas their implementation is envisaged to commence in 2015. Minister Beqaj also asked the Council of Ministers of the Energy Community to approve his request for the acceleration of procedures regarding the conclusion of the Energy Community Treaty on the dispute between KOSTT and KEK on one side and Elektroprenos and EPS from Serbia on the other. The meeting was also used to approve respective regulations and directives on statistics, which, among other, will provide for greater transparency for the prices of electricity and natural gas, as well as prices of renewable energy sources. The directive on renewable energy sources will establish the necessary legal infrastructure for the development of RES sector, and will provide the determinations on goals to be achieved by 2020. At the proposal of Minister Beqaj, the Council of Ministers approved agreed on greater involvement of civil society stakeholders in the implementation of the Energy Strategy of the Energy Community, by providing their opinions and suggestions regarding the impact of such projects in environmental protection and conservation. Minister Beqaj expressed Kosovo’s support to the election of Mr. Janez Kopac from Slovenia in the post of the Director of the Energy Community Secretariat. 69 KEDS Privatization, an important step for Kosovo’s energy future Prishtina, 17.10.2012 – The Minister of Economic Development, Besim Beqaj, said that today’s execution of the contract for privatization of the Kosovo Energy Distribution and Supply Company represents an important moment for the future of Republic of Kosovo’s economy and energy sector. Beqaj made the said comments as the Chairman of the Government Privatization Committee during today’s ceremony marking the signature of the contract between the Government of Kosovo and Kosovo Calik-Limak Energy, in the presence of representatives from USAID, IFC, Deloitte and other institutions involved throughout the process. ‘In conformity with the country’s Constitution, we have determined that we will develop market economy and that we will provide the best possible services to Kosovo citizens, while one of our greatest obstacles to this end since the end of war was safe electricity supply,’ Beqaj said. He added that the Energy Strategy adopted by the Kosovo Assembly stipulates three main objectives: stable electricity supply, affordable cost for citizens, and respect of 70 international norms and standards in the sphere of environmental protection, and emphasized that the Government will maximally respect all these stipulations in the restructuring of the energy market. ‘We are here today closing a successful and transparent process, which further approximates Kosovo to the EU and offers its citizens the perspective of 300 million euro investments, which will be made in coordination with the Kosovo Energy Regulator’s Office. Kosovo Çalik & Limak Energy Company will be entirely subjected to ERO of the Republic of Kosovo, which is accountable towards the Assembly of Kosovo,’ Beqaj clarified. GPC Chairman said that best practices from the region were used while drafting and compiling the contract. According to him, this contract guarantees all staff three-year employment contracts. Further, he added that the Government has taken over no obligations regarding failures to collect electricity bills, while Calik-Limak is obliged to purchase energy in the Republic of Kosovo, in conformity with market economy principles. The Minister said that the contract also includes corporate guarantees that stipulate that Kosovo Calik-Limak Energy Company is obliged to perform all its obligations towards the transmission and generation companies, and, most importantly, the entire process is regulated by the ERO of the Republic of Kosovo. For her part, Roxanne Suratgar, USAID representative, said that the signature of this contract marks a great step in the development of energy sector, towards ensuring regular electricity supply. She said that Calik and Limak have come to invest vast amounts here in order to revitalize KEDS. Such investments will serve the reduction of technical losses and improvement of service quality in the future. ‘According to the information we have, this process was managed in line with the highest international standards. USAID welcomes similar cooperation in the future, towards the achievement of our main objective – provision of sustainable electricity supply for Kosovo’s citizens,’ said Suratgar. Filip Drapak, representative of the International Financial Corporation (IFC), the transaction representative in this privatization, stated that the KEDS privatization represents a success of the Government of Kosovo, as its ultimate beneficiaries will be Kosovo citizens, which will enjoy regular electricity supply. He said that the transaction would not be possible without the support of all institutions involved in the process, including MED, MF, MLSW, MESP, USAID, Deloitte, KEK, KOSTT, etc. which were also part of the transaction evaluation process. Deloitte representative, Andrew Smith, said that the privatization of KEDS was structured so as to reduce losses, improve electricity supply and, at the same time, protect the rights of employees. According to him, the privatization adhered to best international practices and is in compliance with the Energy Strategy of the Republic of Kosovo. For his part, Nihat Ozdemir, representative of Kosovo Çalik-Limak Energy presented the profile of this consortium and its investment plans in Kosovo’s energy distribution network. He said that this consortium manages energy distribution in five different countries, that it has over 5.1 million clients and serves 13 million inhabitants, adding that it pays special attention to service quality. “Kosovo Çalik-Limak Energy Group will invest 300 million euro in Kosovo’s electricity distribution system in the forthcoming 15 years, hence we are well prepared, well experienced and ready to take over assets and initiate the said investments as soon as possible,’ said Ozdemir, adding that Kosovo citizens will have uninterrupted and more qualitative electricity supply. 71 Swiss invited to invest in Kosovo Lausanne, 27.10.2012 - Heads of the Ministry of Economic Development and Ministry of Trade and Industry called today upon Swiss investors to invest in the Republic of Kosovo, while presenting the country’s potential and business environment provided by Kosovo’s legal and institutional framework. The Head of MED and MTI made these comments during the conference titled ‘Investments and Trade Opportunities in Kosovo’ organized in Lausanne, Switzerland by the Kosovo Investment Agency Promotion, in cooperation with the Swiss Chamber of Commerce, Kosovo Economic Initiative (ECIKS) and the Embassy of Kosovo in Switzerland. Deputy-Prime Minister and Minister of MTI, Mimoza Kusari, explained how Kosovo is moving towards sustainable economic development and that reforms are being implemented in order to improve the business environment, as confirmed by the World 72 Bank’s report on doing business. Kosovo has marked the fastest advancement of all countries of Southeast Europe, moving from position 126 (last year) to 98 (this year) – thus advancing for 28 positions, said Kusari – Lila. Minister Beqaj presented the privatization projects and the investment potential in the mining, energy and telecommunications sectors. He emphasized that the Government of Kosovo remains committed to the implementation of structural reforms that aim to further strengthen the private sector. At this conference, leaders of the Investment Promotion Agency presented the opportunities that Kosovo offers to investors, including the inexpensive labor force, preferential measures with USA, Japan, Norway and EU, etc. The audience was also addressed by Swiss investors that are already present in Kosovo, such as ‘Moderna’ Company which operates in Gjakova. In addition, a presentation was made of funding possibilities for investment projects by the Government of Switzerland. Japan’s assistance contributes to a healthy environment Prishtina, 30.10.2012 – The Government is doing everything in its power to provide the necessary prerequisites for providing better services to our citizens. We are able to advance such services with support from our friends, including Japan, said the Minister of Economic Development, Besim Beqaj. The Head of MED made these comments during the handover ceremony of 43 waste collection trucks, which were donated by the Japanese Government, through Japanese International Cooperation Agency (JICA), in which present were also the Minister of Environment, Dardan Gashi, Japanese Ambassador in Vienna, Shigeo Iwatani, Kosovar Ambassador in Tokio, Ahmet Shala and Mayors of Prizren and Suhareka Municipalities and local officials. “We appreciate highly the fact that the agreement regarding these trucks was signed in 2010, whereas its implementation was postponed due to the developments in Fukoshima, however, this witnesses the trust that Japan has proven towards the people of Kosovo, and economical and political assistance which comprises the most valuable gift to Kosovo people and institutions,” said Beqaj. For his part, the Minister of Environment and Spatial Planning, Dardan Gashi, said that this is a great project that speaks for itself; namely the provision of 43 trucks to be used for the collection of urban waste, which will be distributed to Prizren, Prishtina, Suhareka, Rahovec, Malishevë and Dragash municipalities. Japanese Environment in Vienna, Shigeo Iwatani, also present in this ceremony, said that the purpose of this donation is valued at around 5 million dollars, and will assist local authorities of the two larger cities in improving waste collection. Further, the Head of Prizren Municipality, Ramadan Muja, said that Prizren is renown as one of the cleanest cities of Southeast Europe and the Balkans, and that certainly the utilization of these trucks, provided as a gift by the friendly state of Japan, will help the city become even cleaner – an example to be followed by the rest of Southeast Europe. Otherwise, during his visit in Prizren, Minister Beqaj visited the metal (zinc and cuprum) processing company ‘Zinkunie’, where he was received by its management who informed him on the business endeavors and challenges faced by it. For his part, Minister Beqaj reiterated Government objectives to strengthen the private sector, ensuring them that they will enjoy institutional support in finding solutions for all problems they might face. 73 Beqaj: Investment in education is of particular importance 74 Prishtina, 02.11.2012 – Investment in education is an issue of particular importance for the country, and innovation is the process of creating new businesses with new product segments and application of new technologies, said the Minister of Economic Development, Besim Beqaj. Beqaj made these comments today in the International Conference on Business, Technology and Innovation, organized by the Business and Technology University, in cooperation with the University of Vlora and Tirana, marking the 100th anniversary of Albania’s Independence. Minister Beqaj said that the knowledge of students from Kosovo compared to students of other countries, including European ones, is no different; they are almost identical as they all have access to the same information, and this is something to be proud of. “The Government of the Republic of Kosovo is strongly convinced that the fastest way to economic growth is the creation of an environment conducive for businesses and foreign direct investments”, he added. Economic Development Minister said that businesses are the key generator of developments in the country. “Empirical and field data from various countries, particularly of economies transformed into market economies, indicate that there is a sustainable and positive correlation between new businesses, innovation and economic growth”, said Beqaj. From his part, UBT president, Edmond Hajrizi, said that the 21st Century is seeing changes in the higher education landscape with the use of more advanced technology, and the convergence between academia and industry. “Through this conference, we will try to create close relations with all of you, to preserve our reputation in commitments to higher education and research, as always”, said Hajrizi. Albert Qani, Rector of the University of Vlora, said that the joint Conference on Business, Technology and Innovation, is an excellent example how this cross-university cooperation should be projected. “We have an urgent need for development and we will achieve this. For years now, the Vlora University, Ismajl Qemajli, has entered into a full structural modernization process, achieving tangible results”, said Rector Qani. This conference was attended by 160 participants from the academia and other relevant experts. Minister Beqaj in official visit in Croatia Prishtina, 06.10. 2012 – The Minister of Economic Development, Besim Beqaj, will part of the two day official visit of the delegation of Government of Republic of Kosovo, headed by Prime Minister Hashim Thaçi, in Croatia. During this visit, in addition to the common meetings that the Kosovo delegation will conduct with Croatian government officials, meetings with relevant counterpart ministers are also envisaged. In this sense, Minister Beqaj met with the first Deputy Prime Minister and Minister of Economy, Radimir Cacic, with whom he discussed on bilateral cooperation in the spheres covered by relevant ministries. Also, part of this visit was participation in the economic forum, a visit to the Croatian Chamber of Commerce and meetings with Albanians in Croatia. 75 Germany reaffirms its economic support for Kosovo Prishtina, 12.11.2012 – Economic Development Minister, Besim Beqaj, met today in an informative meeting with the new German Ambassador in Prishtina, Peter Blomeyer, whom he informed on the recent developments in the country’s economy. Minister Beqaj informed the German Diplomat on the work of MED and projects under development, particularly in energy, mining and telecommunication.Beqaj and Blomeyer also discussed on Germany’s support, through GIZ, for various energy related projects, with special emphasis in promoting investments in renewable energy, and the support for Publicly Owned Enterprises. Particular attention was also given to the discussion on the economic cooperation agreement between Kosovo – Germany, for which both parties expresses their readiness to bring this initiative forward. From his part, Ambassador Peter Blomeyer reaffirmed Germany’s support for Kosovo through concrete assistance in various areas, and appreciated the current level of cooperation. 76 MED supports sustainable economic development in municipalities Prishtina, 14.11.2012 – Cooperation between central and local authorities is very significant for sustainable economic development and the success of local authorities can not be fully accomplished without cooperation and implementation of reforms and policies at the local level, said the Minister of Economic Development, Besim Beqaj, while adding that MED remains dedicated to the economic development of all municipalities, ensured through the implementation of sustainable development policies. Minister Beqaj made these comments today at the roundtable on ‘Role of municipalities in sustainable economic development’, attended by mayors, Regional Development Agencies, representatives of the Ministry of Local Government Administration, Ministry of European Integrations and heads of Publicly Owned Enterprises and held in the premises of Kosovo Government. Beqaj said that local economic development, respectively improvement of quality of living of all residents of our municipalities requires a clear line of communication and cooperation between local and central authorities. ‘Local economic development is accomplished through the promotion of small and medium enterprises; efficient utilization of natural and human resources and potentials; improvement and development of local infrastructure and new investments from within the country or abroad, all of which influences on the creation of new jobs and subsequently on the diminishment of unemployment, which is considered a priority for authorities of both levels,’ said the Minister. Beqaj said that MED remains dedicated to supporting economic development in municipalities through the creation of a foundation of sustainable development policies, enticement and growth of economic activities, stimulation of economic cooperation and foreign investments, ensuring competitiveness and safe market conditions, efficiency in administration of publicly-owned enterprises and their transformation. MED supports further intensification and cooperation between MED and municipalities, encourages the implementation of projects in municipalities through foreign and local capital, encourages mu- nicipalities to compile local development strategies and provides financial support to LPOEs. Head of MED underlined the role of the municipal economic development directorates and donors from USA, European Union countries, Japan, Scandinavian countries, World Bank and UNDP, in the implementation of capital projects in infrastructure, agriculture, education and science, healthcare, local administration, transport, etc. For his part, Naim Ismajli, President of the Association of Kosovo Municipalities, assessed that municipalities have a very serious partner in ensuring sustainable economic development, supporting investments and creating policies based on competencies and responsibilities at hand. “Through their activities, municipalities managed to improve the doing business index; also, we influenced the amendment of the Law on PublicPrivate Partnerships to decrease the term of 40 years, in order to enjoy a scale of flexibility depending on the scale of investments”, he said, adding that they are trying to improve the conditions for their residents pursuant to their abilities, while underlining landfill management as a challenge. On the other hand, Adriana Hoxhiq, head of the Administrative Office in Mitrovica North, said that plans are being made to tackle all problems faced, while adding that investments in this part of the country are insufficient. In relation to economic development in the context of small and medium enterprises, Hoxhiq mentioned two major obstacles: lack of experience in promotion of products and illegal structures which hinder the functioning of small and medium enterprises. Roundtable participants considered that it is necessary to meet in order to identify problems, address and find solutions for them as soon as possible and in conformity with the legal and institutional framework. 77 Beqaj: Economic Cooperation should precede the Political one Istanbul, 15.11.2012 – Republic of Kosovo started its sustainable economic policy development only after establishing itself as a state, and regional cooperation is a prerequisite for the country’s accession in the EU, said the Economic Development Minister, Besim Beqaj. Beqaj made these comments in his speech in the Energy and Economy Summit, organized in the capital of Turkey, Istanbul, which is attended by ministers of foreign affairs and economy, and diplomats from the region and beyond. On this occasion he concluded that Clinton and Ashton’s visit was an indication that Kosovo has a clear perspective for EU accession, and that regional countries should cooperate more to create a sustainable peace. He also added that the normalization of relations with Serbia is a precondition for important processes in the region.The Minister also said that economic cooperation should precede political cooperation, highlighting the investments undertaken in creating modern road infrastructures with Albania, Serbia and Macedonia, convinced that freedom of movement of people and goods will facilitate Kosovo’s faster EU integration process. Beqaj highlighted that Kosovo’s ranking in the Doing Business Index as improved for 28 positions (126 in the 2012, 98 in the 2013 report) and that the key improvements are in investors’ protection, business start-up, construction permits, etc. According to him, based on the WB assessments, Kosovo is a model country for the region in terms of economic growth, macro fiscal stability, and financial stability, as it has a sustainable and stable banking system, a public debt under 6% of the GDP, the lowest in the region and EU. Minister Beqaj also said that Kosovo’s vision for economic development is to open way for the private sector, economic restructuring 78 Turkey’s support is requested for Kosovo’s inclusion in the Gas Ring through structural reforms, and also brought to the attention of the attendees the key ongoing privatization processes of KEDS, PTK and the construction of the New Kosovo TPP. In terms of regional cooperation, Beqaj said that Kosovo is a member country of the Energy Community Treaty since 2005, Signatory Party of the CEFTA free trade agreement, and strives to become member of regional projects such as the construction of the “Gas Ring” for SEE countries. “We believe that security of energy supply, diversification of energy resources in the region, and common energy market, are key elements for our future cooperation in the region”, said the Minister. Speaking on internal economic developments, Beqaj said that potential sectors for economic development are the energy sector, agriculture, telecommunication and IT, wood and metal processing industry, and food industry. Prishtina, 16.11.2012 – During his participation in the Energy and Economy Summit of the Atlantic Council in Istanbul, Kosovo’s Economic Development Minister, Besim Beqaj, met today with the Turkey’s Minister of Energy and Natural Resources, Taner Yildiz, and had separate bilateral meetings with other ministers and ambassadors of the countries of the region and beyond. In his meeting with the Turkish counterpart, Beqaj highlighted that the Republic of Kosovo has excellent relations with Turkey, and discussed on the important development processes in economy in Kosovo and region. Beqaj and Yildiz discussed on activities to be implemented under the Economic Cooperation Agreement between Kosovo and Turkey. The Minister also highlighted the importance of Kosovo’s inclusion in the gas ring, which plays an important role for the country’s economic development, and asked for Turkey’s support to Kosovo in the process. On this occasion, Minister Beqaj invited Minister Yildiz to visit the Republic of Kosovo, and Minsiter Yildiz confirmed his readiness to realize this visit in the beginning of next year. In addition, Beqaj informed the Turkish Minister on the overall developments in energy and the organization of the Donor’s Conference, and Minister Yildiz expressed his full willingness to also offer Turkey’s support. Minister Beqaj also plans to visit the city of Bursa, Turkey, to present investment opportunities in all production sectors in the Republic of Kosovo. During his stay, visits will be made to Turkish producer with Albanian origin, and a call will be made by the minister to relocate production capacities in the metal, plastic, food, textile and other processing sectors.Minister Beqaj will also highlight Kosovo’s readiness to attract investments in the production sector, in order to increase Kosovo’s export potential towards the EU marked, and beyond. 79 Beqaj: Kosovo – model of financial stability Hidromorava now has a new Administration Building Prishtina, 19.11.2012 – Republic of Kosovo has shown its commitment to maintain financial stability, and was commended by international financial organizations, which stated that Kosovo can be considered a model for countries of the region, and beyond, said the Minister of Economic Development, Besim Beqaj. Beqaj made these comments in his remarks given in the 9th Vienna Economic Forum, discussing on the importance of regional cooperation, with the aim of accelerating EU membership. He also highlighted that the will and political commitment of the Government, has had an impact in eliminating the skepticism of several countries on the progress of Kosovo, after the declaration of independence.“Kosovo is now a full member with equal rights and obligations in WB, IMF, and now, after the expected membership in EBRD, new opportunities will be created for the strengthening of the public sector, by increasing the credit potential for various projects, which have an impact in the country’s economic development”, he added. Minister Beqaj said that regional cooperation in the past hasn’t produced the expected result; therefore, other regional initiatives, such as CEFTA, Energy Community Treaty, and many others, must be implemented in practice. He said that Kosovo is playing an important role in attracting investments in the region, and this was proven through the implementation of structural reforms in economy and larger projects in the country. This continuous increase of investments in the country is a clear confirmation that regional and international investors have faith in Government policies.Minister Beqaj emphasized that countries in the region, with the support of international partners, must be focused in addressing challenges and problems the region is facing, such organized crime activities, which have damaged the image of the region. Prishtina, 22.11.2012 – The Government is committed to improve the quality of living, and the contribution of MED of 500.000 Euro for the new Administration Building of the Regional Water Company “Hidromorava” is modest considering the needs of the region of Gjilan, said Economic Development Minister, Besim Beqaj. Beqaj made these comments in the inauguration ceremony of the new building of RWC “Hidromorava”, which was also attended by the mayor of Gjilan, Qemal Mustafa, “Hidromorava” CEO Myrvete Hoti, and managers and employees of the company. Beqaj also stated the symbolic of this investment in the verge of marking the 100th anniversary of the Independence of Albania. The Minister highly appreciated the commitment of the Swiss Agency for Development, SDC, which invested over 8 million Euros in the southeastern Kosovo to improve the quality of water, water supply, and water management, and Gjilan has benefited around 2 million Euros. Minister Beqaj highlighted Kosovo’s membership in EBRD, and added that this makes Kosovo equal to 66 member countries in the bank, opening way for further public projects. “The Government sometimes faces difficulties in realizing the great needs it has, therefore I call the private sector and enterprises to draft well-thought projects and presented them to us, because together we will have the chance to benefit from development funds which Kosovo greatly needs”, said Beqaj. He reiterated that Kosovo is stable in terms of economic development and that the country serves as a model for macro-economic stability. He also stated that the Government is fulfilling its obliga- 80 He said that the Government of the Republic of Kosovo is committed to create the basic preconditions for businesses operating in the country, in order to create an environment conducive for businesses, and to achieve a successful cooperation with the countries in the region.“In this aspect, road infrastructure connecting Kosovo with Albania, and mid-term plans to develop road infrastructure towards Macedonia and Serbia, are strong indications that Kosovo wishes to be a constructive partner in the region”, said Beqaj. Economic Development Minister stated that EU is giving Kosovo a clear perspective, initiating important processes related with Kosovo’s membership in the EU.Minister Beqaj said that visa liberalization process should progress faster, so that Kosovo citizens enjoy the right of freedom of movement, similarly to regional countries. Finally, the Minister added that there is a general need for more policy regionalization, more intensive economic cooperation, and less policies.This Forum was attended by ministers of the regional countries, federal ministers of economy and finance in Austria, Ambassadors of various countries, representatives of organizations, etc. tions which the private sector cannot address, such as infrastructure, water, waste collection and processing, legal framework, but the private sector will be in the forefront of economic development. The Mayor of Gjilan, Qemal Mustafa, said that the inauguration of this building is an important act, as it happens in the verge of the 100th anniversary of the Independence of Albania, and the 5th anniversary of the Independence of Kosovo, and marks a progress in the right place. He thanked MED and donors for their support to improve the conditions for this company. From her part, Myrvete Hoti – CEO of the RWC “Hidromorava” in Gjilan, thanked MED and donors for their assistance in the company thus far, and added that the new building will considerably improve the working conditions in the enterprise. During his stay in Gjilan, Minister Beqaj visited the food production and processing company “ASK Foods” in Livoç të Poshtëm, and met with its Manager, Erton Namoni, and his coworkers. Beqaj was informed on the successful business of the company, and he reiterated the Government’s orientation to create an enabling environment for business development. 81 Beqaj: Energy Efficiency is a priority for MED Prishtina, 22.11.2012 – In addition to structural reforms in energy, the Ministry of Economic Development is also putting its focus in energy efficiency and renewable energy, and for this purpose the Ministry has established the Kosovo Energy Efficiency Agency, as an obligation of the Energy Community Treaty, said the Minister of Economic Development, Besim Beqaj, in a workshop on preparations for the second Energy Efficiency Action Plan 2013-2015. On this occasion, Minister Beqaj thanked the World Bank, EU Office, UNDP, GIZ, considering them key actors concrete efforts of which contributed significantly in energy efficiency. Minister Beqaj also informed that the establishment of the Energy Efficiency Agency is an obligation of the Law on Energy Efficiency, which MED has already created to further advance this area. Economic Development Chief also stated that the action plan 2013-2015 should include all institutions. “The action plan should be achievable, in order to attain the target of 3 percent, which is another obligations of Kosovo from the Energy Community Treaty” said the Minister. He also thanked the World Bank and the European Commission for their cooperation, stating that the plans for this area are fully compliant. Beqaj further said that EBRD projects in energy efficiency and renewable energy sources, as discussed in the last meeting in London, cover over €25 billion. “Kosovo should benefit from such funds, and the action plan 2013 -2015 should ensure such projects, which, together 82 with commitments from the donor conference could provide investments in both energy efficiency and renewable energy sources. From his part, the CEO of the Energy Efficiency Agency, Bedri Dragusha, informed the attendees on the roles and duties of this Agency vis-à-vis other relevant institutions, which should be included in the drafting of the second midterm plan. “Energy Efficiency Agency will monitor the implementation of Energy Efficiency measures, undertaken by local and central” said Dragusha. Beqaj: 2012, a year of public investments Prishtina, 26.11.2012 – This is a year of investments in the public sector, where the Government of the Republic of Kosovo, in cooperation with donors, as well as with municipal projects, has spent over €85 million in water supply, roads, sewage systems, all projects which make the lives of Kosovo citizens better, said the Minister of Economic Development, Besim Beqaj. Beqaj made these comments in the inaugural ceremony of the water supply for seven villages of the Municipality of Suharekë, in the presence of the Mayor of Suharekë, Blerim Kuçi, Swiss Ambassador in Kosovo, Krystyna Marty Lank, managers of Hydro Region, and numerous members of beneficiary villages. “With this inauguration today, the Government of the Republic of Kosovo is completing an obligation in cooperation with the Municipality, Swiss Embassy, and SDC, to the benefit of its citizens”, said Beqaj, and added that this is an orientation of the Government and all those officials who got the faith of the citizens. Economic Development Minister, on behalf of the Kosovo Government thanked the Swiss Government for allocating €8.1 million of its taxpayers’ money. The Ministry of Economic Development has added to this an additional €2 million, to improve water supply services in the region of Southeast Kosovo. From his part, the Mayor of Suharekë, Blerim Kuçi, concluded that this project is a donation of the Swiss people, so that the seven villages of Suharekë have good water supply, and better services, thanks to this investment from Switzerland and MED. Swiss Ambassador, Krystyna Marty Lank, said that the current project enabled the construction of water supply system for 7 villages of Suharekë, with approximately 14 thousand inhabitants. She said that today’s result comes from an excellent cooperation of the Swiss Government, Ministry of Economic Development, and the Municipality of Suharekë. Marty Lank said that Switzerland has helped the water sector since 1999, and that around 50 water supply systems have been developed in 73 villages, and that Swiss support will continue in 2013-2016. This project has a total value of €600 thousand, targeting villages of Suharekë; Grejkoc, Gjinoc, Gelancë, Leshan, Topliçan, Tërrinje and Neperbisht. 83 Beqaj: Kosovo is drawing the attention of foreign investors Prishtina, 04.12.2012 – The energy sector in Kosovo is drawing considerable attention among foreign investors, and we hope that during the upcoming year we will have significant changes and investments in the energy, mining and minerals spheres, said the Minister of Economic Development, Besim Beqaj. Beqaj made these comments during the investment forum held in the Belgian capital, Brussels, with the aim of promoting investment opportunities in Kosovo and increasing the level of cooperation among businesses from the two countries. Minister Beqaj presented at this occasion the orientations of Kosovo Government, especially related to the strategic sectors, which are considered to comprise the cornerstone of the country’s development, such as energy and mining sectors, while inviting Belgian investors to invest in Kosovo. Beqaj underscored that Republic of The Portuguese are interested for investments in Kosovo Prishtina, 04.12.2012 – Deputy-Minister of Economic Development, Gani Koci, received today for an introductory meeting the Portuguese Ambassador in Budapest, and Non-Resident Ambassador in Kosovo, Antonio J. Mendes, whom he informed on the latest developments in the country, especially in the economic sphere, covered by MED. Deputy-Minister Koci informed the Portuguese Ambassador on the legal framework of the Republic of Kosovo regulating investment, on projects under development and potential investment sectors. Koci said that the country provides a favorable investment climate, while adding that energy, mining, agriculture, tourism and information technology are considered to be the most 84 Kosovo provides a favorable investment environment, while its legal framework ensures their equal treatment with local investors. For her part, Deputy-Prime Minister and Minister of Trade and Industry, Mimoza Kusari – Lila, said that Kosovo’s image has significantly improved as a result of doing business reforms and favorable economic policies. Kosovo is not part of economic news as an exporter of regional instability, and this represents good news for Kosovo and foreign investors, said Kusari – Lila. Part of this conference were a significant number of Belgian and Kosovo businesses active in different spheres, which used this opportunity to discuss on their cooperation. Otherwise, the organization of the Business Forum in Belgium is part of a wider campaign of the Ministry of Trade and Industry aimed at promoting investments in Kosovo among potential investors, especially among countries of the European Union, United States of America and Turkey. important strategic sectors for the country’s development. At this occasion, Deputy-Minister Koci welcomed the interest of Portuguese investors in Kosovo, which was underlined by Ambassador Mendes, while emphasizing that the idea for promoting Kosovo resources in Portugal is of great interest to further intensification of cooperation between two countries. For his part, Portuguese diplomat Antonio J. Mendes expressed interest on projects that are under development and in which the Portuguese businesses may be involved. He said that Lisbon supports Kosovo’s endeavors towards the European Union and expressed interest in advancing this cooperation in the sphere of economy. 85 Fruitful economic cooperation between Kosovo and United Kingdom Prishtina, 07.12.2012 – The Minister of Economic Development, Besim Beqaj, met today the Ambassador of United Kingdom, Ian Cliff, with whom he discussed on further deepening of economic cooperation between the two countries. Minister Beqaj highly evaluated the support and contribution that United Kingdom gave to Kosovo in both political and economic aspect. Minister Beqaj and Ambassador Cliff agreed that the Government of Republic of Kosovo is providing a favorable political and legal environment for the attraction of foreign investments. At this occasion, Minister Beqaj said that all eventual concerns for potential foreign investors should be addressed directly to the institutions that are legally mandated to cover relevant spheres. He also called for respect of legal and procedural provisions at all times, since this represents the only manner for implementing the best international practices and standards. Speaking on concerns voiced by Fox Marble, Minister Beqaj called for full respect of legal authorizations and procedural requirements set forth by independent institutions such as ICMM, as well as for adherence to legal provisions applicable in Kosovo. 86 Water supply system in Area 4 of Ferizaj is expanded Prishtina, 17.12.2012 - Prishtina – The Government of Kosovo is committed to ensuring that all financial means available, including those provided by its international partners, such as SDC that uses funds collected from Swiss taxpayers, are used for providing better lives for Kosovo citizens, said the Minister of Economic Development Besim Beqaj. Minister Beqaj made these comments today during the inauguration of the project for network expansion of the water-supply system in Area 4 of the city of Ferizaj, attended by the Mayor of Ferizaj, SDC representative Markus Baechler, CEO of the RWSC ‘Bifurkacioni’ from Ferizaj and other officials. “I believe that the commitment of the Government is also proven by the projects that we have implemented in publicly-owned enterprises during this year. We have invested over 85 million euro in improving networks, managing and developing new capacities in energy, improvement of water supply and waste water extraction systems, etc.” said Beqaj. He said that Prizren and Gjakova have benefited during this year, while Ferizaj is in the government’s agenda for next year, while adding that this year it benefited from an important project to improve the quality of electricity supply. Beqaj thanked the Swiss Government for assisting in the infrastructural improvements in waste management in Southeast Kosovo, with 8 million euro, in order for the water-related problems faced by the citizens to be a thing of the past. For his part, the Mayor of Ferizaj, Agim Aliu, said that this important project for Ferizaj will provide residents of respective neighborhoods with drinkable water and this opens the perspective for a second phase aimed at supplying the entire urban part of the city with drinkable water. He thanked Minister Beqaj and the Swiss Government for the constant support to this project in all of its phases and in different capacities. SDC representative Markus Baechler said that he was content with the finalization of the first part of this project, aimed at supplying drinkable water for 500 new consumers or 3 thousand residents. “This was implemented based on an excellent cooperation between the Swiss Government, MED, RWSC Bifurkacioni and the Municipality of Ferizaj. The next component will expand the supply network. We will also help Bifurkacioni with a billing and accounting program. We encourage responsibility among citizens to pay for their water bills,” said Baechler. Faton Frangu, Chief Executive Officer of the RWSC, said that the expansion of the water supply network for Area 4 of the urban part of Ferizaj will enable qualitative supply of water for citizens that were to date using water from their individual wells, which don’t meet water quality criteria. Otherwise, the ‘Supply of drinkable water for Southeast Kosovo’ project – RWSC Bifurkacioni, Ferizaj, represents an investment of 5.4 million euro, cofounded by MED, SDC and Municipality of Ferizaj. 87 Ministry of Economic Development Public Communication Office “Mother Theresa” Boulevard, 10000 Prishtina, Kosovo Tel: + 381 200 215 05; Fax: 200 215 02; Web: http://mzhe.rks-gov.net 89