Business opportunities

Where are the business Opportunities?

The Transitional Department of Trade and Industry is responsible for Socially Owned Enterprises (SOEs) and the Development of the Private Sector. It is this Department that can provide you with the first steps towards finding business opportunities in Kosovo.

According to UN Security Council Resolution 1244, UNMIK is responsible for the administration of all non-private property in Kosovo, including state and socially owned enterprises. Privatisation has always been the goal of UNMIK however, due to a variety of technical issues privatisation has so far not been possible to implement. As an interim measure to bring investment to SOEs the Commercialisation programme was launched. A proposal for privatisation has also been drafted.

Commercialisation

Commercialisation brings private sector involvement and resources into SOEs. It is accomplished through the completion of long-term contracts to operate and manage enterprises very similar to traditional lease contracts. These opportunities are made available through a Tender process. Tender proposals must address five key areas:- Investment plan; Employment plan; Business and regional experience; Concession fees; Environmental plan. Notices for tender are accessible from the joint World Bank and European Union website www.seerecon.org

Privatisation

The privatisation programme for Kosovo has not yet been officially approved yet it is expected to begin in some form by early 2002. The Kosovo Trust Agency will be the central agency responsible for handling Kosovo’s ownership of assets. The KTA will privatise those assets that are subject to privatisation and manage for the long-term interests of Kosovo all other assets under its control. The KTA will administer socially owned property on UNMIK’s behalf (as stated in regulation 1244) and will report to a Board of Directors appointed by the Special Representative of the Secretary General of the United Nations (SRSG).

Privatisation will be achieved via a three pronged strategy:- Transformation; Spin-Off; Reorganisation. The Transformation approach converts enterprises into Joint Stock companies or limited liability companies with majority ownership transferred free of charge to current and former SOE workers, with a residual shareholding in the KTA. The Spin-Off approach looks at productive assets of SOEs which are then assigned to a newly created debt-free company. This is then either sold to an outside bidder or used to form a joint-venture arrangement with a strategic investor. Shares in this NewCo and/or transaction proceeds will be retained by the KTA (or SOE under close control) until ownership issues are clarified. Reorganisation allows for insolvent SOEs to have their assets sold through competitive procedures with proceeds held in trust by the KTA until court procedures are completed.