UNMIK/PR/1619
UNMIK Countdown #5
PRISTINA – The Kosovo Trust Agency (KTA) was established on 13 June 2002 and is responsible for the governance and privatisation of Socially-Owned Enterprises (SOEs), which are present in a wide variety of economic sectors in Kosovo. During the 1990s, Kosovo’s economy suffered from years of under-investment and was burdened by the legacy of central planning, which greatly reduced Kosovo’s capacity to produce and compete. It was clear that a fundamental reform was needed and KTA was established in order to assist, through appropriate governance, development and privatisation strategies, in the transition of Kosovo’s economy towards a successful market economy.
The KTA has been very successful in this endeavour. To date, total sales proceeds from the privatisation programme exceed a quarter of a billion euros, with 228 SOEs tendered and contractual investment commitments from purchasers amounting to over 120 million euros and also commitments to create over 6,300 new jobs in Kosovo.
In addition to facilitating investment and creating jobs for the Kosovo economy, KTA remains committed to promoting Kosovo’s attractive investment climate. Kosovo continues to offer many benefits to potential foreign and domestic investors: particularly low taxes, abundant resources and a supportive business environment.
KTA has prioritised the major SOEs for privatisation and these newly privatised companies have produced exceptional results. For example, Silosi Flour Mill that was privatised in May 2005 has already employed as many as 300 workers and is planning to invest some 20 million euros with the aim of increasing the current production capacity to 58,000 tonnes.
This year KTA has concluded the privatisation of a number of the larger SOEs in Kosovo, including the Grand Hotel, the landmark high-rise which dominates downtown Pristina; the Peja Brewery; and the Rahoveci Winery, the largest winery in Kosovo. In addition, the sale of the single largest SOE, the Ferronikeli Nickel mine, was completed in April 2006. This major mine was sold to the international investor IMR/Alferon for over 30.5 million euros. This deal included a minimum investment commitment of €20,000,000 by the purchaser. Furthermore, the new owner will create 1,000 new jobs within one year of the finalisation of the sale.
The Kosovo Trust Agency continues to assist in laying the foundations for long-term economic development; assisting in the creation of private property rights, increasing private investment in infrastructure and generating new jobs. More information is available at: www.kta-kosovo.org
Note to Editors: With UNMIK in its final phase before status resolution, the Division of Public Information senses an increasing historical focus by local and international media on Kosovo. Therefore, in this special series of weekly press releases we offer news and information about the UN Mission in Kosovo during the past seven years. The press releases seek to provide useful information about UNMIK, including quotes from officials as well as photos and web links.