Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

KOSOVO 

Transport & Communications 

Kosova Airlines 

Kosova Airlines Seeking Partners to 

Achieve Ambitious Growth Plans 

Kosova Airlines, established in 2003 

and headquartered in Prishtina, 

is seeing steady growth in turnover 

and has ambitious plans to expand 

its route network and services, 

according to Remzi Ejupi, CEO, 

who founded the airline to provide 

services in Kosovo. 

The airline, which works through 

partner airlines and also serves 

as Kosovo’s top travel agency, has 

boosted its turnover by an average 

3% to 5% per year since 2006 and 

anticipates around €60 million in 

turnover this year. Kosova Airlines 

owns a 20% share of Hamburg 

International via its German Distribution 

Partner Eurokoha Reisen 

GmbH. Most flights go to Germany 

and Switzerland and the airline has 

established hubs in Dusseldorf, 

Stuttgart, Munich and Zurich for 

connections throughout the region 

and beyond. This year it launched a 

new direct flight between Prishtina 

and Basel, Switzerland. 

Remzi Ejupi, President 

In its role as an airline, Kosova 

Airlines offers flights via partner 

carriers between Prishtina and New 

York; Zurich, Basel and Geneva 

(Hello and Edelweiss Air); Stuttgart 

(Germanwings and Air Berlin); 

Dusseldorf (Air Berlin); Cologne/ 

Bonn and Hamburg (Germanwings); 

Munich (Hamburg International); 

Frankfurt and Hanover (Air Berlin); 

and Antalya (Atlasjet and Sun 

Express). 

Expanding route network 

Albania, Italy, Vienna, London and 

Brussels are all destinations Remzi 

Ejupi would like to add to Kosova 

Airlines’ route network. Remzi Ejupi 

says, “There is significant potential 

for routes between Kosovo and 

neighbouring countries, including 

Albania. Currently we offer flights 

to Turkey only during the summer 

season so we see growth there as well, 

particularly for year-round flights for 

business customers.” Kosova Airlines 

offers flights between Germany and 

Macedonia during the high tourist 

season and would like to extend its 

Macedonia service by offering flights 

between Macedonia and Switzerland. 

It would also like to increase the 

number of flights to its established 

destinations. 

The airline welcomes partnerships 

with international companies 

and investors to help it achieve its 

growth plans. “We are experienced 

enough to know that we cannot do 

everything on our own, so we are 

looking for partnerships, and I have 

already made some contacts. We have 

a great deal to offer, including more 

long-haul passengers for a partner 

company,” Remzi Ejupi says. 

Kosova Airlines also aims to help 

jump-start Kosovo’s tourism industry 

by providing more flights between 

Kosovo and key European destinations 

and by forming partnerships 

with major European tour operators, 

including in Albania, which Remzi 

Ejupi sees as a growth market. He 

concludes, “We aim to focus on 

our core activities and to become 

a leading airline in Kosovo and 

throughout the region.” 

Kosova Airlines 

Vellusha e Poshtme 17 

10000 Prishtina 

Kosovo 

Tel.: +381 38 24 44 44 

Fax: +381 38 24 91 86 

www.kosovaairlines.com 

www.flyksa.com 

41

Calling the Shots: Competition Is 

Bringing Increased Quality to the Sector 

As a crucial component of Kosovo’s 

infrastructure roll out, the telecommunications 

and IT sector 

has already seen unprecedented 

investment which is set to increase 

yet further. Internet and mobile 

penetration are growing rapidly 

in the nascent country with a 

highly qualified and youthful 

demographic providing both a 

receptive consumer base and a 

potential high skilled workforce 

for outsourcing operations. 

The telecommunications sector 

is home to the country’s largest 

company by capital and to some of 

the most prominent investments. 

The incumbent operator in 

Kosovo is the Post and Telecommunication 

Kosovo (PTK) which is 

responsible for Post of Kosovo, the 

fixed line operator, Telecoms of 

Kosovo, and the mobile operator, 

Vala. PTK, which is a public 

enterprise under the aegis of the 

Kosovo Trust Agency has 107,000 

landline users and, through its 

subsidiary Vala, 830,000 mobile 

users. Furthermore, the company 

is Kosovo’s most profitable with an 

estimated value of approximately 

€1.3 billion. 

If more evidence were needed for 

the great strides forward that the 

country has made, one only need to 

look at the penetration levels in the 

telecommunications sector. Internet 

penetration in Kosovo had hit 15% 

by the final quarter of 2005 putting 

it on a par with Turkey and above 

more established regional players 

such as Romania and Albania. In 

2007, this was given a further boost 

with the launch of PTK’s broadband 

package, ‘PTK ADSL’. The service 

had approximately 10,000 customers 

or a 25-30% market share by 2008 

with Ipko Net and Kujtesa being the 

other market players. The country 

also had a mobile penetration rate 

of 35% in June 2007, a significant 

42

KOSOVO 


figure considering the brevity of the 

industry in Kosovo. Nevertheless, this 

provides extremely good potential 

for rapid growth. 

From a network point of view, PTK 

is already well placed to absorb this 

growth. Vala’s mobile network has 

been rolled out over approximately 

90% of the country. The company 

also has 127 roaming agreements 

for post-paid customers showing 

its intent to expand its international 

network. On the fixed line 

segment, Ipko Net, the country’s 

largest internet provider has rolled 

out an extensive broadband network 

which has far-reaching population 

coverage. 

However, the country is not resting 

on its laurels. 2007 saw PTK’s 

monopoly of the mobile segment 

come to an end when Ipkonet 

Telekom Slovijne/Mobitel won the 

second operator mobile license 

for €75 million. The consortium 

announced their intention 

immediately with investment in 

its network which is expected to 

reach €120 million by the time 

roll out is complete. One of the 

first contracts for the GSM network 

went to Ericsson Nikola Tesla 

which won a €37 million contract 

for the supply, implementation 

and operation of the GSM communications 

and transmission system. 

While Ipkonet Telekom Slovijne/ 

Mobitel will initially concentrate 

on achieving coverage in Kosovo’s 

dense urban areas, labelled the 

Kosovo city ring, it expects to 

achieve full network coverage 

within three years. Indeed, the 

consortium has ambitious plans 

hoping to capture a 50% market 

share by 2012 and approximately 1 

million GSM customers by 2015. 

However, competition is likely to 

be stiff with the state planning to 

privatise the incumbent operator 

Vala in the near future. Indeed, 

with a young, educated, technologically 

savvy population, penetration 

rates on both voice and data should 

shoot up over the coming years. 

This young work force, which has 

a competitive cost advantage over 

many neighbouring countries, will 

also allow Kosovo to position itself 

as an outsourcing hub following 

a model similar to the one so successfully 

employed by Bulgaria. 

Currently, public and private institutions 

in the field of information 

technology, supported by leading 

multinational firms such as CISCO 

and Microsoft, are being rolled 

out across the country supporting 

the development of a knowledge 

and high-tech economy. Initially, 

Kosovo is certainly well placed 

to develop the full spectrum of 

outsourcing operations including 

software development, data 

management, call and support 

centres and other consulting 

services. 

The government realises that to 

achieve these aims the regulatory 

and legal framework has to be in 

place. To this end, the Telecommunication 

Regulatory Authority 

(TRA) has been working on 

licensing, encouraging private 

sector participation and ensuring 

fair competition. While the country 

is still in the process of receiving 

recognition from the International 

Telecommunications Union (ITU) 

which will allow the country to 

register a telephone country code 

and internet domain name, much 

of the ground work has been done 

to provide fertile soil for further 

investment. 

Indeed, the telecommunications 

sector should provide unbounded 

opportunities for investment in 

the coming years. Indeed, once the 

country reaches market saturation 

on voice and data, the country 

should be in a good position to 

offer fixed-mobile convergence 

and bring the next generation of 

services to a hungry market. 

43

KOSOVO 


IPKO 

Dynamic Telecom Provider Aims to 

Offer One-Stop Integrated Services 

IPKO won the €75 million tender 

for the second mobile telecom services 

license in Kosovo last year, one more 

success story for this dynamic telecom 

enterprise. IPKO offers a full range 

of integrated services and content 

for mobile communications, fixed 

telephony and the Internet. 

After only eight years of 

operations, it already serves 

around one million customers 

in Kosovo and is the country’s 

top telecom investor. IPKO has 

already invested over €200 million 

to date in building a cutting-edge 

GSM network covering 80% of the 

country, with financial support 

from the European Investment 

Bank. Telekom Slovenia has a 

63.75% share in the company. 

CEO Akan Ismaili explains that 

IPKO earned a 35% share of the 

mobile services market and was 

providing mobile telecom services 

to over 300,000 customers in less 

than nine months after its launch of 

mobile services last year. IPKO is not 

only the biggest foreign investment 

in Kosovo to date but also Slovenia’s 

biggest investment abroad. “This 

shows not only Telekom Slovenia’s 

commitment to Kosovo but also its 

faith in the potential of the Kosovar 

market,” he says. 

Mobile telecom penetration in 

Kosovo is currently around 50% 

and IPKO aims to boost that 

percentage. 

Akan Ismaili, CEO 

Prior to mobile, IPKO has heavily 

invested in the fixed network. Now 

it operates a fixed network in the 

main cities and towns of Kosovo, 

reaching over 150,000 residences. 

The company also has 52,000 

broadband subscribers. 

IPKO’s competitive edge is its 

winning combination of state-ofthe-art 

solutions, the latest technologies, 

a wide range of packages, 

added value services, quality, 

reliability, security, and solid user 

support 24/7. 

Reliable telecom service in 

Kosovo and beyond 

Mobile services will be the main 

driver of IPKO’s continued growth 

in Kosovo, but that is not the whole 

story. “We want IPKO to become a 

one-stop shop for integrated telecommunications 

services,” Akan 

Ismaili explains, adding that IPKO 

also plans to invest in the fibre 

optic connections with very high 

capacities to regional and international 

hubs. He points out that 

through Telekom Slovenia, IPKO 

already offers reliable telecom 

connections throughout Europe. 

As for the future, Akan Ismaili 

explains, “We are here to provide 

services, but at the same time we 

are open minded about any new 

partnerships.” 

He adds, “IPKO is an initiator 

of development within Kosovo’s 

telecom sector. We see ourselves 

as setting the standard for doing 

business successfully in this 

market.” 

Mother Theresa Street 

RTK Building, 5th floor 

Prishtina 

KOSOVO 

Tel.: +381 38 700 010 

Fax: +381 38 700 001 

www.ipko.com 

44

• Talking Shop: The Ministry Talks About Producing More Goods for Market 

• The Lie of the Land: The Government Is Overseeing the Commercialisation 

of the Country’s Farms 

Agriculture & Food Industry 

“My opinion is that investors 

should look at Kosovo because 

we have a young population that 

wants to work and for less money 

than in other EU countries.” 

Idriz Vehapi, Minister of Agriculture, Forestry and Rural Development

KOSOVO 


Ministry of Agriculture, Forestry and Rural Development 

Talking Shop: The Ministry 

More Goods for Market 

The Ministry of Agriculture, Forestry and Rural 

Development is charged with overseeing the crucial 

transition from largely subsistence rural farming to a 

modern industrialised agricultural sector. The Ministry 

has long been working with UNMIK to achieve these 

goals and since independence has stepped up its efforts 

to attract foreign investment to the potentially lucrative 

sector. In parallel to such incentives, the Ministry is coordinating 

its efforts with the European Union to ensure 

that legislation and regulations governing the sector are 

harmonised with the EU’s standards. 

Idriz Vehapi, Minister of Agriculture, Forestry and Rural Development 

Here, ET talks to Idriz Vehapi, the Minister of 

Agriculture, Forestry and Rural Development, about 

the future of agriculture in newly independent 

Kosovo. From wine-making to land consolidation 

and employment generation, Mr. Vehapi believes 

that agriculture will play a vital and prominent role 

in the future economic success of his country. 

ET: How important is the agricultural sector for the 

economy of Kosovo 

I. Vehapi: The agriculture sector is a very important 

part of Kosovo’s economic development, not least 

because of the fact that more than 50% of the 

population of Kosovo lives in rural areas. Moreover, 

the majority of this population is young, so this 

means that agriculture can provide a firm basis for 

economic growth. However, we recognise that in the 

future other sectors will develop and that less people 

46

KOSOVO 


Talks About Producing 

will be involved in agriculture. For example, in the 

UK, a small percentage of the population is involved 

in agriculture now and a similar trend will also take 

place here in Kosovo. 

ET: Tell me a little bit about the development that 

has taken place in the sector since the declaration 

of independence in 2008 

I. Vehapi: Before the declaration of independence 

there was the new election, in which the future Prime 

Minister made agriculture one of his campaign 

priorities. Subsequently, after the declaration of 

independence, we laid out our agricultural priorities 

for our donors. Within this program, the new prime 

minister has made agriculture an absolute priority 

which was stressed at the Donors Conference in 

Brussels. Of course, there are also private investors 

from Switzerland, The Netherlands, Germany, Italy, 

and other European countries interested in Kosovo’s 

agricultural sector. 

ET: What is the most important role that European 

investors can play in Kosovo’s agriculture sector 

I. Vehapi: We need them to bring technology and 

know-how but also the finance for new initiatives. On 

top of this, we are looking to develop commercial 

farms endowed with modern technology, higher 

yields and higher efficiency so that labour can be put 

to work in other sectors. Most importantly, Kosovo 

wants to make it as easy as possible for outside 

private investors to invest in the agriculture sector. 

We already have some commitments to invest in the 

agriculture sector, primarily from private investors, 

because agriculture is one of the top five sectors of 

Kosovo’s economy. 

ET: What challenges do you see ahead for the 

agriculture sector 

I. Vehapi: Firstly, the most important challenge is that 

the farms are very small and thus less competitive 

and profitable than those in neighbouring countries. 

Therefore, the main challenge is land consolidation 

which will create larger farms in the future. Beyond 

this, Kosovo needs more capacity in processing agricultural 

products. Also, food storage is an issue as 

currently farming is determined by the seasons. This 

is certainly one area where investors can get a high 

return on investment. 

ET: How do you plan to confront these challenges 

I. Vehapi: First of all, these challenges are certainly 

a priority. Bigger farms are necessary to compete 

and achieve the necessary productivity. To this end, 

we always advise our farmers to unite in associations 

and cooperatives to be stronger. 

ET: How do European investors look at the 

investment opportunities with regard to this 

consolidation 

I. Vehapi: For land consolidation, one of the main 

investors was the World Bank and EU which is also 

investing in the irrigation system. Since the consolidation 

and irrigation are our priorities, we 

increased our budget regarding these two areas. 

The investments in these sectors will create opportunities 

for farms to be more competitive which will 

attract foreign investors. We have a target of 70,000 

hectares and so far 12,000 have been recovered. 

ET: Why should Europeans invest in Kosovo rather 

than neighbouring countries 

I. Vehapi: My opinion is that investors should look at 

Kosovo because we have a young population that wants 

to work and for less money than in other EU countries. 

So it is a low-wage country compared to neighbouring 

countries. However, at the same time, we have an 

educated workforce, a significant percentage of which 

has studied and lived abroad. Most of them would like 

to work here, which is a great opportunity for foreign 

companies wanting to set up business here. 

47

KOSOVO 


The Lie of the Land: The Government 

Is Overseeing the Commercialisation 

of the Country’s Farms 

Agriculture has always played a 

prominent role in Kosovo’s economy. 

With more than half a million 

hectares of cultivable land and 60% 

of the population living in rural 

areas, the country is well set up for 

further investment in this crucial 

sector. With the ongoing privatisation 

process, Kosovo’s larger farms, 

under the stewardship of the Kosovo 

Trust Agency, present particularly 

good opportunities for investment. 

The government has laid out 

a detailed strategy to further 

stimulate agricultural development 

in the country. After assessing 

the topographical and climate 

conditions in the country, the 

Ministry of Agriculture, Forestry and 

Rural Development will be targeting 

high value crops such as fruit and 

vegetables. The government is 

also keen to make the transition 

from a largely subsistence base 

to a commercial base with the 

development of the land market 

to increase the size of farms. 

Moreover, the ministry hopes 

to develop knowledge transfer 

that will raise the productivity of 

the land. In parallel with these 

practical measures, the country will 

be looking to bring its legal and 

regulatory framework in line with 

the highest EU standards. 

With over 250,000 hectares of 

meadow and grassland, Kosovo is 

well placed to expand its agricultural 

base. Currently, grains such 

as wheat and maize account for the 

largest share of the sector in terms of 

land use. However, the government 

is keen to re-align the focus to fruit 

and vegetables which presently 

account for just over 38,000 hectares 

of arable land. 

Kosovo’s viticulture industry is well 

established. The public sector has 

a wine processing capacity of 112 

million litres while the private sector 

processes approximately 30,000 

litres. The government is also looking 

to revitalise its livestock production 

industry so that the country can 

become increasingly self-sufficient 

in meat and dairy production. 

For all segments of the agricultural 

sector, the government has provided 

incentives to bring further investment 

to the country. Most agricultural 

inputs and capital goods are tariff free 

which is supported by VAT exemption 

for a wide range of agricultural 

inputs. The government hopes that 

this will increase production dramatically 

allowing the country to become 

a significant agricultural exporter. 

This is no pipe dream. Kosovo has 

a series of competitive advantages 

in the agricultural field including 

high yields and cheap labour. With 

local production currently only 

covering 30% of domestic demand, 

the potential for growth is sizable. 

The stimulation of the sector should 

allow the government to both bring 

down its reliance on imports as well 

as create a liberal environment to 

become a major agricultural exporter 

to the EU. 

48

KOSOVO 


Peja Brewery 

Market-Leading Local Brewery 

Expanding Regionally 

Peja Brewery has carved out a 70% 

share of the local beer market thanks 

to its high quality beers made with 

cutting edge techniques. 

As Sebastjan Gergeta, acting 

General Manager, explains, the 

brewery was founded in 1971 

and acquired in 2006 by leading 

Slovenian Pivovarna Laško Group 

and local Kosovar investors, 

mainly Dukagjini Group’s owner 

Ekrem Lluka. “After the €11 

million privatisation tender, we 

invested around €12-13 million 

in upgrading the brewery’s 

facilities, equipment, technologies 

and marketing. Now we are 

a very well known brewery with a 

very well known brand. Any new 

product we introduce will most 

likely be a success,” he says. 

Thanks to its upgrades, the 

brewery has increased the shelf 

life of its beer from three weeks to 

six months. It has been reinvesting 

revenues but hopes to make a 

profit next year and anticipates 

an average 10% growth over the 

coming five years. 

Peja aims to expand to markets 

beyond Kosovo, since it has not yet 

reached full production capacity 

and believes that the Kosovar 

market will not be able to keep up 

with the brewery’s growth. Peja 

already has agreements with distributors 

in Montenegro, Serbia 

and Macedonia but its main focus 

next year will be Albania, where it 

aims to boost sales by 5% to 6%. 

“We are welcome everywhere and 

present in every market in the 

region,” Sebastjan Gergeta says 

proudly. 

Signficant investment 

potential 

Peja Brewery offers very attractive 

investment potential. “European 

portfolio investors, including 

smaller investors, and funding 

organisations are very welcome. 

We are a very transparent company 

and we would repay the faith that 

any European institution has in 

us,” Sebastjan Gergeta says. He 

adds that new investments will go 

toward expanding the brewery’s 

product lines and continuing to 

upgrade its technologies. Around 

€15 million over the next five 

years will be needed to bring the 

brewery fully up to EU standards. 

Peja would also like to partner 

with distributors, suppliers and 

consultants in Western Europe. 

The brewery’s successful 

partnership with Slovenia’s top 

breweries, Pivovarna Laško and 

Pivovarna Union, gives it an edge. 

“We have the necessary know-how, 

financing and guarantees, as well 

as people who know the business. 

Our 70% market share, which we 

aim to boost to 80%, gives us a 

virtual monopoly in Kosovo and we 

Sebastjan Gergeta, acting General Manager 

have basically taken over the distribution 

system,” Sebastjan Gergeta 

explains. He adds, “Investors 

interested in Kosovo should work 

with a strong local partner.” 

Peja Brewery 

30000 Peje, Kosovo 

Tel.: +381 39 432 661 

Fax: +381 39 433 989 

49

KOSOVO 


Meridian Corporation 

Dynamic Group Welcomes Joint 

Venture Partners 

The Meridian Corporation offers 

outstanding potential for foreign 

investors. The family-owned group 

with 170 employees was relaunched 

after the war in 1999 and has 

since achieved significant growth. 

Meridian has operations in 12 

locations and is one of Kosovo’s 

biggest distributors of beverages and 

foods, including fresh and frozen 

foods as well as organic products and 

international brands of beverages. 

Meridian works with over 4,000 

vendors in Kosovo, including retail 

chains, supermarkets, drug stores 

and the HoReCa (hotel, restaurant 

and catering) sector. 

The Meridian group includes foods 

and beverages divisions, Montazhi 

(construction), and Energoinvest 

(energy activities). “Montazhi 

is known for its construction of 

both residential and commercial 

buildings as well as electrical installations, 

heating and cooling systems, 

and water and waste treatment 

facilities. Energoinvest produces 

electrical equipment, transformer 

Hakif Gashi, CEO 

stations and more. We acquired both 

companies a couple of years ago and 

now we are looking for partners and 

joint ventures,” explains CEO Hakif 

Gashi. 

Meridian is especially interested in a 

joint venture in the fast growing food 

and beverages sector since the group 

already has the necessary facilities, 

resources and building land. “We are 

looking for a partner who can start up 

food and beverage production with 

us,” Hakif Gashi explains. Meridian 

eventually plans to expand its 

thriving food and beverage distribution 

beyond Kosovo, to Macedonia, 

Montenegro, Albania and Serbia. 

Significant potential in energy 

sector 

Both Montazhi and Energoinvest 

offer strong growth potential as 

well. Hakif Gashi points out, “Energoinvest 

has the most potential 

because Kosovo’s energy sector is 

very undeveloped. We anticipate 

significant growth in the near future. 

We are looking for joint ventures 

and partners that can help us take 

Energoinvest and Montazhi to the 

next level concerning technology, 

know-how, experience, access to 

new markets, and financing.” Energoinvest 

has already served Kosovo 

Electrical Corporation (KEK), 

private companies, power plants and 

several mines. 

Kosovo has outstanding prospects, 

Hakif Gashi believes, and Meridian 

is the ideal local partner for 

investors. He says, “Meridian offers 

future partners a creative and 

capable management, dedicated 

and motivated employees, efficient 

business processes and structure, a 

well-established local presence with 

expeditious and qualitative services, 

17 hectares of building land, and 

construction capacity. In addition, 

doing business is not a problem in 

Kosovo. We have the same standards 

and values as in the EU and we hope 

our ties with the EU will grow even 

stronger in the future.” 

Meridian Corporation LL.C 

Bul. ‘ Bill Clinton’, p.n 

Zona industriale 

10000 Prishtina, Kosovo 

Tel.: + 381 38 541 521 

Fax: + 381 38 541 524 

meridian@meridian-ks.com 

www.meridian-ks.com 

50

• Infrastructure Development: The Minister Has Ambitious Plans to Improve the 

Country’s Infrastructure 

• A New Power Plant and Untapped Coal Reserves Are Set to Electrify the Industry 

• Mine Games: A Growth in Exploration and Mining Licenses Should Usher in 

Explosive Growth 

Energy & Mining 

“Looking at the mining sector 

specifically, there is great potential 

to mine gold, copper and nickel 

amongst other nitrate deposits. On 

top of this, ongoing exploration 

continues to unearth new deposits.” 

Justina Shiroka-Pula, Minister of Energy and Mining

Justina Shiroka-Pula, Minister of Energy and Mining 

The Ministry of Energy and Mining in Kosovo has been dealt a mixed hand. 

On the one hand, the country has almost unlimited potential in this sector with 

rich deposits especially in lignite and in variety of metal minerals such as Lead 

and Zinc, Ferronickel, Bauxite, Magnesite, Chrome, Copper, Gold and Silver to 

the rather rare and high value halloysite clay. On the other, much work needs to 

be done to upgrade the country’s energy infrastructure. However, the Ministry 

remains undaunted by this task and has ambitious plans to transform the country 

from a net electricity importer to a net electricity exporter over the coming decade. 

52

KOSOVO 


Ministry of Energy and Mining 

Infrastructure Development: The 

Minister Has Ambitious Plans to 

Improve the Country’s Infrastructure 

Indeed, whether you look at the country’s mineral deposits 

and mining capabilities or the requirements for power plant 

roll out and an increase in capacity of many hundreds of 

Mega Watt (MW), it is abundantly clear that the prospects 

for investment in the country are strong. The government is 

keen not to squander these opportunities and is offering a 

variety of methods to get the most efficient, cost effective and 

value added use out of these deposits and infrastructure. 

In the mining sector, mines can either be acquired through 

the ongoing privatisation process or re-energised and 

re-modelled by entering joint ventures with private owners. 

In the energy sector, Kosovo has embarked upon the path 

to a new power plant called Power Plant New Kosovo, and 

an associated lignite mine which when completed will be 

the largest ever private investment in Kosovo’s history. 

The government has set the ambitious target of starting 

operations in the first unit of the new plant in the period 

starting from 2013 to 2014. It becomes clear why this is such 

a pressing concern when one contemplates that Kosovo 

would increase its GDP by an estimated 17% or 220 million 

with the addition of a further 1,000 MW to its capacity in this 

short period. 

The prospective growth for the country through this sector 

is therefore clear. Here, ET, talks to Minister of Energy 

and Mining, Justina Pula-Shiroka, about the opportunities 

and challenges facing the sector. From the relative 

values of established mines to untapped mineral deposits 

and exploration, Justina Pula-Shiroka sees a central role 

for mining in Kosovo’s future. The Minister also talks 

about what makes Kosovo such an attractive proposition 

which goes beyond resources beneath the earth to those 

above it, namely human resources and the young dynamic 

population. 

ET: How important is the mining sector for Kosovo’s 

economic development in general 

J. Pula-Shiroka: The mining sector is a key sector for the 

development of Kosovo. Kosovo is very rich in minerals and 

has a long experience in the mining industry which helps 

to attract many investors. Moreover, we are offering to the 

interested companies several incentives to enter the Kosovo 

market. We have several old, pre-existing, functioning 

mines with over a numerous qualified mine workers and 

employees. One of these has already been privatised. The 

mining sector has attracted considerable British and US 

investors and is open to foreign investment. 

ET: What are the major challenges facing the mining 

industry 

J. Pula-Shiroka: Well, we had a problem with the older 

mines where the licenses had passed their expiration date. 

Some of these mines were also in need of restoration. 

However, having said that, with regard to the older mines, 

we expect the levels of interest to be higher because they are 

more attractive for investment given that they are already 

established and have an operating history. We believe the 

time will come when these mines receive the necessary 

investment. Some of them are very promising for investors 

as they have higher returns. 

ET: What are the planned investments for the next 

five years 

J. Pula-Shiroka: The government is planning 

development of several interest zones of metallic mines. 

Actually, there are ongoing activities in preparing 

feasibility studies for these interest zones, in order to 

follow-up with respective bidding procedures. 

ET: What would be your personal message to our 

European investors 

J. Pula-Shiroka: The European investors are definitely 

very welcomed in Kosovo. I am certain that they 

will encounter here friendly social and business 

environment. I am sure too that they will find here 

more competitive prices than elsewhere in region, 

and transparent procedures of bidding. I am glad to 

remind the interested parties that we have here well 

educated young population, skilled in communication 

skills, particularly with English speaking people. 

Looking at the mining sector specifically, there is 

great potential to mine lead and zinc, gold, copper 

and nickel amongst other nitrate deposits. On top of 

this, ongoing exploration continues to unearth new 

deposits. 

53

KOSOVO 


A New Power Plant and Untapped 

Coal Reserves Are Set to Electrify 

the Industry 

As the country looks to move forward following the boon 

of independence in February 2008, energy has been 

earmarked as a key piece of Kosovo’s development jigsaw. 

Indeed, since the turn of the century, the international 

community through the UN Mission in Kosovo (UNMIK) 

has been working with the Kosovo Energy Corporation 

(KEK) to help the country meet its energy needs and 

rebuild its utilities infrastructure. The state now wants 

to build on this to exploit its abundant resources of 

lignite to power the country’s future development. 

As part of this process, the Ministry of Energy has 

drafted a 10 year energy strategy that lays out the 

supply and demand dynamics of the sector up until 

2015. With estimated lignite reserves of between 11.5 

billion and 14 billion tonnes, representing the fifth 

largest reserves in the world, the government is well 

placed to meet the residential and industrial energy 

requirements over the coming decade. 

Currently, KEK runs two power plants Kosovo A and 

Kosovo B. The plants are not currently running at full 

design capacity but provide approximately 7,000MW to 

the country. This falls short of peak demand requirements 

with the government importing up to 400MW of 

electricity during the winter months. Kosovo, however, 

is working hard to bridge this deficit. The government 

is in the planning stage for Kosovo C and an associated 

lignite mine, which will bring the phased introduction 

of 2,000MW to both the local market and also to the 

electricity grid of South East Europe. The ambitious 

plan to move from being a net importer of electricity 

to becoming a net exporter is expected to be launched 

between 2012 and 2014. 

With a projected GDP growth of 9% between 2009 and 

2015 and investments worth €14.488 billion, the country 

will desperately need this capacity expansion to fuel 

this economic growth especially in the manufacturing 

sector. Moreover, the extra capacity will give the country 

an export capability of between 300-500MW helping to 

ease current deficits. Indeed, this surplus energy may 

translate into as much as €150 million worth of exports 

after 2012. Indeed, even with the Ministry of Energy’s 

high growth scenario of an annual increase in demand 

of 5.5%, the country would still have surplus energy 

upon the completion of Kosovo C. 

Therefore, although much work needs to be done to 

build on the pre-independence infrastructure, the 

government is well placed to roll out extra capacity which 

will position Kosovo as a major player in the South East 

European energy market. As such, and with voluminous 

lignite reserves, the future looks bright both metaphorically 

and literally. 

55

Mine Games: An Increase in 

Exploration and Mining Licenses 

Should Usher in Explosive Growth 

Kosovo has rich potential in the 

mining sector which has been the 

mainstay of the country’s economy for 

centuries. With bountiful untapped 

reserves, the sector is positioned for a 

dramatic increase in production and 

revenues. Indeed, recognising the 

potential, the government is actively 

working to privatise the mining 

sector and present opportunities for 

foreign investment in exploration 

and production. 

56

KOSOVO 


Kosovo’s mineral reserves speak for themselves. With 

estimated lignite reserves of 14.7 billion tonnes, the 

country has the second largest discovered coal deposits 

on the European continent and the fifth largest 

lignite reserves in the world. The quality of this coal 

is also impressive with an exploitation cost of €1.1/ 

Gj. This marks it out as the most price competitive 

in the region. Beyond coal, the country also benefits 

from rich mineral and base metal deposits. Kosovo is 

estimated to have lead and zinc reserves amounting 

to 48 million tonnes as well as nickel deposits of 

16 million tonnes. Chrome reserves are estimated 

to number 89 million tonnes while known Bauxite 

reserves are in the region of 13.2 million tonnes. 

The country can also count on significant reserves of 

gold, silver, copper and magnesium. The government 

estimates that the last of these is found in enough 

quantities to last 100 years. 

This all bodes well for Kosovo’s future economic 

success given the current price trends for these 

metals and minerals. Although lead prices have fallen 

in 2008, they had still maintained a price of well over 

€800 in the second half of 2008. Likewise, Nickel 

prices were still reasonably strong remaining above 

the €8,400 mark in November 2008. This suggests 

that Kosovo can garner significant revenue from these 

base metals alone. On top of this, the government 

recently discovered 3mt of high-grade halloysite at 

Farbani Potok. The importance of this should not be 

underestimated given the fact that this is only one of 

five exploitable sites globally where such high grade 

clay, with a value of €112-360 per tonne, has been 

discovered. Moreover, current world production only 

stands at 150,000 tonnes per year. This suggests that 

Kosovo is well placed to exploit its mineral reserves. 

However, the country is at the beginning of the process 

of taking advantage of this latent wealth. In 2005, the 

EU pillar established the Independent Commission for 

Mines and Minerals (ICMM), a regulatory body which 

is charged with monitoring and attracting investment 

to the sector. ICMM has a broad remit which includes 

the issuing and relocation of exploration and mining 

licenses and special operation permits. It also issues 

permits for commercial exploitation in the mining 

industry as well as taking responsibility for the 

expansion of the mining packages, the collection of 

information, distributing information to investors, 

and monitoring reserves through GIS surveys. 

According to Azem Rexhaj, Director of the ICMM, “We 

think that the mining sector is the key to Kosovo’s future 

development. Kosovo is very rich with minerals. Also if 

you look at it from an investment point of view, every 

week we have three or four private investors coming 

here to evaluate the possibilities to invest here. Kosovo 

also has a long experience in the mining industry. The 

Trepca Mining Complex has been here since Roman 

times. What’s more, in 2006 we did a new geological 

survey and the results showed that Kosovo has much 

more to offer than the Trepca mines.” 

Indeed, although the Trepca mines are Kosovo’s most 

famous, the country has abundant reserves spread 

throughout the country. However, the Trepca mines, 

whose lead and zinc deposits are mainly located in the 

east of the country, are among the initial priorities 

of the government in the mining sector. The Trepca 

metallurgical complexes, with significant deposits 

of lead, zinc and silver, were the largest mining 

operation in the former Yugoslavia and the Kosovo 

government wants to re-establish their prominence. 

It is believed that an investment of approximately 

€200 million will be required to revitalise the mines. 

Currently, production operations are only running at 

a test level. 

The Trepca management currently has plans, in the 

first phase, to attract private investors to create new 

investment opportunities for public private joint 

ventures (JV). At a second stage, it is envisaged that 

full scale privatisation will take place to provide 

efficient company management and the market power 

to pursue investment in value-added zinc products. 

The ICMM is working hard to attract foreign 

investment in this respect and in the mining industry 

57

KOSOVO 


more generally. During 2007, a total of 70 exploration and 

mining licenses were issued with the country’s explosive 

security system (ESS) fully up to NATO standards and 

under the control of the ICMM’s mining inspectorate. 

The revenue generated from these licenses is crucial 

to the country’s budget. In 2007, mining royalties and 

other fees amounted to an estimated €2 million. 

However, this is not a short-term revenue stream. 

“According to the law a company gets an exploration 

license for the first 2 years, and then they can apply 

for an extension for another two years. However, then 

the licensed area will be reduced by 50%. They [the 

company] have the possibility to extend the license 

three times,” explains Azem Rexhaj. “Within these six 

years they will have to get the mining license and start 

mining or they will lose the license. This is so nobody 

loses their money because exploration costs are very 

high. Because of these rules we think that in the next 

five years we will have a minimum of three new mines in 

the beginning stages of operation and this will for sure 

continue,” he adds. 

There has already been a significant level of interest 

in licenses. A series of international companies have 

entered the Kosovo market on an exploratory basis. 

For example, Lydian Resources of the UK has three 

exploration licenses for projects in Drazne amongst 

other places. North American companies have also 

received exploration licenses with the initial exploration 

being so promising that many international companies 

have applied for the full mining licenses. 

Beyond this, the government has worked on a number 

of privatisations. The mining sector has seven Socially 

Owned Enterprises (SOEs) that will be presented for 

privatisation. The Ferronikel Company, which stopped 

mining as a consequence of conflict in the area, 

provides a highly profitable opportunity for investment. 

The ferronickel reserves are significant and the mine is 

connected to the railway giving good access to import 

additional ore concentrates through Thessaloniki port 

and Albania. It also provides good opportunities for 

export and employment generation. 

The country is therefore well placed to position itself as 

a leading producer and exporter of minerals and metals 

for the whole region. Beyond lignite, which will play a 

vital role in powering the local energy market, Kosovo can 

draw on its substantial reserves of base metals which are 

continuing to command significant prices on the interna- 

tional market. Therefore, the government is confident of 

building effective synergies with the private sector which 

will benefit the country and investors alike. 

58

KOSOVO 


Lydian International 

Mineral Exploration and Development 

Group Confident About Kosovo 

Lydian International is a British 

Exploration and Development 

Company listed on the Toronto Stock 

Exchange. Lydian is confident about 

prospects in Kosovo, where it’s wholly 

owned subsidiary Kosovo Resource 

Company (KRC) has an advanced 

zinc, lead, silver exploration project 

in Drazhnje, as well as exploration 

projects in Crepulje and Rahovec. 

Tim Coughlin, CEO, says that 

KRC now accounts for around 

35% of Lydian’s project budget, 

with the remainder devoted to 

Lydian’s exploration initiative 

in Armenia. KRC’s operation in 

Drazhnje should begin commercial 

production in 2011. “Once you 

advance a project like this to the 

point at which it is feasible and 

bankable, which requires a lot of 

exploration work, you then move 

to debt financing and construction 

can begin. All our projects in 

Kosovo are relatively early stage yet 

Tim Coughlin, CEO 

Workers from Lydian’s local mining contractor 

Stone International underground at Drazhnje. 

interesting for our investors since 

they show real potential for growth,” 

he says. 

Coughlin adds that while global metal 

prices are always a major concern for 

any mining company, Lydian has no 

worries about operating in Kosovo. 

“Kosovo’s mining laws are already 

international standard and there is 

significant regulatory emphasis on 

protecting the environment and 

engaging local communities. In this 

sense our operations benefit from 

constant review by specialists from the 

International Finance Corporation 

which is part of the World Bank 

Group and one of Lydian’s largest 

shareholders,” he explains. 

“First mover” advantage 

As a potential investment target, 

Lydian offers a number of competitive 

advantages. “Lydian is the only international 

exploration company 

currently developing resources in 

Kosovo. We are benefitting from 

our “early bird” exploration strategy 

in developing the best projects and 

securing the best people. We are 

most proud of our team in Kosovo,” 

Coughlin points out. 

Branding Kosovo is an important 

goal for Lydian, which has quickly 

built up its own reputation as a 

“first mover” in emerging and transitional 

markets. “We try to sell 

Kosovo everywhere we go in order 

to attract investors and make clear 

that this country is on the path to 

European Union accession, that 

it is a good place to live and work, 

and that its mining laws are some of 

the best investors can hope to work 

under,” Coughlin says. 

Urging European investors to explore 

opportunities in Kosovo, Coughlin 

concludes, “When we came here in 

2006 there was some risk, but now 

the government is very committed to 

supporting foreign direct investment, 

and the local workforce is well trained, 

enthusiastic and committed. We took a 

bet that in Kosovo everything would be 

okay, and it has been. Now we are in a 

great position. Lydian is here to stay.” 

Lydian International Ltd. 

Bajram Kelmendi 15 Prishtina, 

10000 Kosovo 

Tel.: +381 38 249 990 

Fax: +381 38 248 518 

www.lydianinternational.co.uk 

59

• Going Green: The Ministry Talks About How the Environment Can Help Business 

• Infrastructure and Housing Requirements Are Driving the Sector Forward 

Environment & Spatial Planning 

“All our companies do good work 

regardless of their size. Each 

company in every segment helps 

to increase the development of the 

sector because all companies work 

in a timely manner striving for 

quality, efficiency and excellence.” 

Mahir Yagcilar, Minister of Environment and Spatial Planning

KOSOVO 


Regional Water Company-Prishtina 

Water Company Offers 

Outstanding Investment Potential 

The Regional Water Company-Prishtina 

(KUR-Prishtina) is one of Kosovo’s 

post war success stories. As CEO 

Skender Bublaku explains, Kosovo 

had around 30 water companies before 

the war which served around 40% 

of the population. Today, thanks to 

a consolidation campaign between 

2002 and 2007, seven regional 

water companies handle distribution 

of water throughout the country. In 

addition, these water companies have 

been upgraded to meet EU standards. 

KUR-Prishtina is now valued at some 

€80 million and covers its expenses 

with its own revenues. It has doubled 

the number of its customers since 1999 

and now serves 550,000. 

Kosovo’s successful model for 

water distribution is now being 

implemented by neighbouring 

countries. “Even though we need a 

lot of investments in the water distribution 

field, what we have already 

achieved is quite an impressive 

result. We now serve around 75% of 

the population,” Skender Bublaku 

points out. Individual wells and 

other private water resources supply 

the remainder of the population, 

but KUR-Prishtina aims to serve 

the entire population in the near 

future. 

Privatisation of water distribution 

is now allowed by law but the 

government has not yet announced 

Skender Bublaku, CEO 

its plans for the sector. “Getting the 

legislation to allow for privatisation 

was the initial step in the process,” 

Skender Bublaku says, noting that 

the government is likely to retain a 

majority share in the water distribution 

sector but will allow for increased 

participation by the private sector. 

The waste treatment sector, on 

the other hand, is likely to be fully 

privatised. Foreign companies and 

investors will find significant opportunities 

in both sectors as Kosovo’s 

economy expands. Skender Bublaku 

explains that private investment 

will be needed to build a new waste 

treatment facility, and another 

opportunity for foreign investors is 

to provide drinking water through 

operating the existing network and 

collecting fees, following the system 

currently employed in electricity 

distribution. 

Providing outsourced services 

concerning water distribution and 

waste treatment is another avenue for 

foreign investors. Skender Bublaku 

says, “Here at KUR-Prishtina, we 

support the entry of the private 

sector in all activities, and Kosovo’s 

new law on public-private partnerships 

creates an ideal opportunity 

for foreign investors.” 

KUR-Prishtina offers outstanding 

investment potential not only 

because of the opportunities in 

Kosovo’s water sector but also 

because of the company’s successful 

reconstruction, sound financial 

status and strong track record. To 

potential investors, Skender Bublaku 

says, “Do not hesitate to contact us! 

Kosovo is a country where you can 

make a profit!” 

Regional Water Company J.S.C. 

rr Tahir Zajmi p.n. 

Prishtina 

KOSOVO 

Tel.: +381 38 541 211/129 

Fax: +381 38 541 437 

www.kur-prishtina.com 

61

KOSOVO 


Ministry of Environment and Spatial Planning 

Going Green: The Ministry Talks 

Help Business 

The Ministry of Environment and Spatial 

Planning is at the forefront of Kosovo’s ambition 

to encourage sympathetic and sustainable 

development. The work of the ministry touches on 

several sectors such as energy and construction 

ensuring modern transparent regulations. The 

Minister of Environment and Spatial Planning, 

Mahir Yagcilar, took time to speak to ET about 

the synergies between environmental policy and 

economic development. 

Mahir Yagcilar, Minister of Environment and Spatial Planning 

ET: How important is the development of the construction 

sector for Kosovo’s economy 

M. Yagcilar: In every country it is important 

especially in a post-conflict situation. In recovering 

from the conflict, we need to be efficient in every 

area. Therefore, quality in construction safety and 

efficiency in terms of energy and proper insulation 

is what helps economic development. Good infrastructure 

can also assist economic development in 

other aspects. 

ET: Which particular developments have been 

significant since the declaration of independence 

M. Yagcilar: Firstly, the legal infrastructure was put in 

place and transparent competition in the tendering 

process for foreign companies was established. In 

the construction sector, government licenses were 

issued more easily. 

62

KOSOVO 


About How the Environment Can 

ET: What role specifically can foreign investors 

play in the development of Kosovo’s construction 


M. Yagcilar: They can play an important role because 

we have not remained up to date with other European 

construction developments especially in the energy 

sector. Even now there is a need for experience, 

technology and large projects such as power plant 

construction and highways. 

ET: Does the Ministry of Environment and Spatial 

Planning issue tenders 

M. Yagcilar: We are not involved with any specific 

project as much as we are involved with environmental 

issues. For example, we are involved in issuing 

environmental permits for construction. We do, 

however, specifically invest in projects for social 

housing but these are not large projects. 

ET: So to what extent do environmental policies 

influence the development of Kosovo’s construction 


M. Yagcilar: It is similar to other countries. For 

example, in terms of constructing a power plant, we 

must do everything possible to keep pollution below 

the allowed level. We must also look at how construction 

can impact wildlife habitats. So rather than 

just invest in construction and development, we try 

to make things balanced, not to inhibit economic 

development, but to keep both air and water 

pollution in check. Of course, development must be 

economic and cost effective. The environment can 

help in this regard with energy savings for example. 

ET: How can European investors help you achieve your 

goals of being cost efficient while working within these 

guidelines 

M. Yagcilar: Well, they have the technology which 

we need here and which would provide opportunities 

for Kosovar subcontractors. At the same time, 

we know we have a very young population which is 

capable and which should learn to develop and use 

this technology. 

ET: People may still have a negative image of Kosovo 

with regard to corruption and instability. From the 

perspective of your ministry, why should Europeans 

choose Kosovo as a business destination 

M. Yagcilar: Well, corruption and associated 

problems are not specific to Kosovo. They happen 

in all post-conflict countries but our duty is to make 

the government functional and attractive for the 

investors. If we achieve this, it promises a good 

future. There will be growth opportunities for 

companies and sectors and we will see larger projects 

and more competition. This will add quality to the 

sector and will create the general impression that 

corruption has dissipated. Obviously we are a small 

country but we have our natural resources and also 

our human resources. At the same time, it is also a 

strategic place next to Montenegro and Albania and 

we have easy access to all the surrounding countries. 

If you combine these aspects, Kosovo could become 

an attractive proposition. 

ET: Who would you see as the most successful business 

ambassadors within the construction sector 

M. Yagcilar: All our companies do good work 

regardless of their size. Each company in every 

segment helps to increase the development of the 

sector because all companies work in a timely manner 

striving for quality, efficiency and excellence. 

. 

ET: What is your personal message to our readers 

M. Yagcilar: I think that Kosovo, because of its natural 

and human resources, can offer a lot to investors. 

The establishment of stability also helps in this 

regard. Kosovo is at the centre of the Balkans and 

the surrounding countries need to have a balance of 

economic, social and political development. So we 

invite investors to come to Kosovo. 

63

KOSOVO 


Infrastructure and Housing 

the Sector Forward 

The construction sector has been a crucial component 

of Kosovo’s rehabilitation with millions of Euros being 

funnelled into this sector. According to the Kosovo 

Chamber of Commerce and Industry, the sector accounted 

for approximately 7% of the country’s economic output 

in 2006. However, much remains to be done. The 

Ministry of Trade and Industry predicts that 60,000 

new apartments will be needed over the coming years. 

This in itself will create extra investment opportunities 

in the construction of infrastructure and associated 

social, retail and commercial units. 

Beyond this contractors and developers alike will be 

able to benefit from Kosovo’s wider infrastructural 

requirements. Indeed, the government has particularly 

earmarked the country’s road and highway network for 

a major upgrade. The Ministry of Transport and Telecommunications 

predicted in 2006 that the country 

would need an annual investment of €48 million for 

the rehabilitation and maintenance of roads and 

bridges which will provide significant opportunities 

for private investors. The priorities lie in the transport 

corridors that plug into the wider European network 

with the most prominent being the Merdare – Kukes – 

Durres highway that will become part of the European 

transport corridor X connecting Western Europe to 

the Adriatic. With the government also earmarking 

the energy sector for investment, with power plant 

construction and the associated infrastructure being a 

particular focus, there will be plenty of opportunities 

for contractors. 

These projects will be financed through foreign 

investment on a public private partnership (PPP) basis. 

The government has been laying the legal foundations 

for these agreements with a law on concessions being 

drafted in 2008. The government is also working hard 

to create the framework to professionalize the construction 

industry in other respects. According to the 

Director of Kosovo’s Construction Department, Naim 

Mahmutaj, “From the beginning, the Department of 

Construction which was established in June 2004, has 

made efforts to begin with a legal base in conformity 

with the European Union’s requests.” One aspect of this 

is the plan to establish a conformity assessment body 

that will make sure Kosovar construction materials and 

products meet the guidelines set out by the EU. 

However, the industry has already come along way. The 

country already has a burgeoning building materials 

industry. It is estimated that Kosovo has approximately 

70 ready mix concrete plants ranging in size and product 

delivery. The cement industry has also established an 

umbrella organisation for cement related industries 

called the Kosovo Association of Concrete Producers 

(KACP). The Association will help raise the quality of 

concrete-related materials and bring them into line with 

EU standards as well as playing a role in overseeing the 

design and building of bridges and buildings to 

ensure international 

standards. 

The country also 

has a significant 

number of 

wood and plastic 

producers that 

cover domestic 

demand with a 

nascent export 

business starting 

in the fields of 

wood products 

and thermo-insulation 

products. 

With Kosovo’s 

significant wealth 

in forests, the 

wood processing 

industry in 

particular is 

set to become 

valuable for the construction 

industry. The country currently allows 

64

KOSOVO 


Requirements Are Driving 

almost 1 million m3 of felling and the annual value of 

Kosovar wood products touches €50-75 million. The 

industry is thus capable of providing employment for 

10% of the population. 

The government is also working in conjunction with the 

private sector and non-governmental bodies through its 

plans for a Construction Institute that will deal with certification, 

testing and inspection of materials. “The testing 

laboratories as well as the inspection and certification 

bodies will be accredited. 

The producers will 

obey the requests 

for conformity 

assessment and a 

large portion of 

construction 

products will enter the market with the conformity seal 

(KC- Kosovo Conformity, identical to the EC- European 

Conformity),” asserts Mahmutaj. It is estimated that 

such a facility would cost approximately €2.1million to 

establish. 

The steel industry in the country is also being rebuilt. 

In 2005, Kremikovtsi, Bulgaria’s largest steel mill paid 

€4.15 million for Kosovo’s Llamkos steel galvanising 

plant with plans to invest €15 million to upgrade the 

plant. Llamkos, which has an annual capacity of 150,000 

tonnes, had lain dormant since 2001. The Kosovo Trust 

Agency also lined up the €2.3 million sale of the local 

steel manufacturer, Fan, which has a production capacity 

of 20,000 tonnes annually. 

The construction industry is therefore well placed. 

As the government concentrates on both the 

residential demands of the country and the 

infrastructural requirements running from 

energy to roads, the investment opportunities 

for the private sector are substantial. 

Indeed, with a cheap labour force and 

a burgeoning building materials 

industry, the prospects for future 

growth in the sector are strong. 

65

KOSOVO 


Dukagjini Group 

Building Tomorrow’s Kosovo 

Dukagjini Construction, a division of the dynamic 

Dukagjini Group, is a recognized leader in Kosovo’s fast 

growing construction sector. The company has already 

completed major projects, including residential developments, 

and it has been chosen to build Kosovo’s World 

Trade Centre, which will cover 80,000 square meters and 

is set to be completed over the next two to three years. 

Mr. Gëzim Gjikolli, WTC Manager, says that the major 

World Trade Centre project welcomes European 

partners and investors. “Slovenian companies are 

already involved in the project, but we are open to 

other European investors. This is a unique project for 

the Balkan region and will earn very significant profits 

for investors,” he says. 

Dukagjini seeks partners which can help the group 

achieve its long term goals. Mr. Agron Sallova, Chief of 

Construction Division in Dukagjini Group, explains, “We 

are looking for partners that can complement our services 

and products in every area of our operations with regards 

to technology and know-how, and more importantly 

partners who can provide access to new markets.” 

Exceptional investment potential 

Dukagjini Construction adheres to the highest 

European and international standards in all its projects 

and employs highly skilled engineers and other professionals 

as well as an ambitious management team. The 

company also benefits from its membership in the fast 

growing Dukagjini Group, which is known for its high 

quality services as well as for its corporate citizenship. 

For example, Dukagjini is sponsoring a scholarship 

programme with American Councils to allow promising 

Kosovars to study for master’s diplomas in US universities. 

“Dukagjini’s commitment to Kosovo’s future is 

strong, and its generosity in supporting our scholarship 

programme is a model of philanthropic leadership, 

both in the US and in Kosovo,” says Dan E. Davidson, 

president of American Councils. 

Kosovo’s construction sector in general has outstanding 

growth potential, according to Mr. Agron Sallova, who 

says, “There will be significant construction of residential 

buildings and highways during the next year and beyond. 

In fact, the construction sector will be the target of more 

investment than any other sector in Kosovo.” Dukagjini 

Construction has positioned itself to grow rapidly along 

with the country’s construction industry. 

Mr. Gëzim Gjikolli points out that now is the time for 

international investors to target Kosovo. He says, “The 

business environment is favourable for foreign companies 

and Kosovo is regulated properly. Foreign companies 

should partner with a local company to best benefit from 

the opportunities here. I say to potential investors, Kosovo 

is developing very rapidly. Do you want to be part of it” 

Agron Sallova – architect 

CEO / Design 

Construction & Engineering Division Dukagjini Group 

“Ismajl Qemajli”Str., No.2 – Pejë / Republic of Kosova 

Tel: +381 39 432 025, mob.: + 386 49 750 302 

Fax: +381 39 432 025 

agron.sallova@dukagjinigroup.com 

www.dukagjinigroup.com 

66

• The Industry Has Several Strings to Its Bow Pointing the Way to an Effervescent Future 

Tourism

KOSOVO 

Tourism 

The Industry Has Several Strings 

Effervescent Future 

Kosovo might not be the first name on the lips of 

tourists and those with the travel bug but that might 

all be about to change as the rewards of stability 

brought about by the country’s declaration of independence 

has given the authorities the chance to put 

this impressive corner of the continent firmly on the 

European tourist map. Indeed, with a diverse range 

of sights of natural beauty and interesting activities, 

Kosovo has much to recommend it. 

Kosovo has inherited both a rich diversity of natural 

beauty and a physical residue built up over time as 

different cultures and traditions have come to settle 

in this area. The cultural legacy of the land is indeed 

impressive. From the Christian heritage of frescoed 

monasteries which have been home to the Serbian 

orthodox patriarchy to the imposing mosques of 

Prizren, the country has something to sate the 

appetite of even the most voracious cultural tourist. 

The Republic of Kosovo also has a rich natural 

heritage. The country can count on the Rugova 

canyons near Peja in the west of the country, the 

Mirusha waterfalls also in the west, the Gadime caves 

in the central plateau, the White River spring, thermal 

springs, and abundant flora and fauna to attract 

casual nature lovers. Such a verdant landscape also 

provides a fertile habitat for a wide range of wildlife. 

Tourists in the country regularly come across boars, 

deer, quails, pheasants, the fulvous (brown) bear, 

wolves and foxes. 

Newly independent Kosovo also sits in a bowl ringed 

by a series of dramatic mountain ranges from the 

sombre and melancholy Sharr in the South to the 

68

KOSOVO 

Tourism 

to Its Bow Pointing the Way to an 

forbidding ‘Accursed Mountains’ 

in the west. This dramatic landscape 

has also presented the opportunity 

for the Kosovar authorities to 

further develop its activity-based 

tourism. The country is a haven 

for hikers and is working hard to 

build up its nascent ski industry. 

The centre of skiing in Kosovo 

is currently situated at Brezovica 

in the South of the country near 

Prizren. The Department of 

Tourism is not only planning to 

expand the quality and infrastructure 

of the Brezovica resort but 

also roll out other winter resorts in 

other parts of the country. While 

Brezovica may need €50 million to 

turn it into a thriving resort it can 

take heart from the experience 

of Bansko in Bulgaria which went 

through a rapid transformation 

and now attracts 150,000 British 

tourists annually. 

However, according to Bujar Kuqi, 

the Director of the Department of 

Tourism, the immediate concern 

of the government is to improve 

the general infrastructure for 

tourists in the country. “We are 

focused on repairing the infrastructure 

needed for tourism, 

which will allow the full utilisation 

of our tourism potential which 

until now has not been realised 

because of the service level of 

tourism development,” says Kuqi. 

With three Balkan countries 

ranking in the top ten countries 

in the world for projected 10 year 

tourist growth according to the 

World Travel and Tourism Council, 

Kosovo can take heart. Initial steps 

have already been taken to improve 

the country’s tourism infrastructure. 

The ease of visiting Kosovo is 

immediately apparent with short 

travel times from Western Europe 

and no visa requirements. The 

government has also already been 

working on improving the quality 

and quantity of accommodation to 

meet the expected increase in the 

number of tourists. This will also 

allow for niche tourist sectors such 

as Meetings Incentives Conference 

and Exhibition (MICE) tourists. 

However, in order to achieve 

this goal, the authorities have 

recognised the need to implement 

a set of standards and benchmarks 

to maintain the quality of the 

sector. This will require a rigorous 

licensing system that assures the 

highest standards of accommodation, 

infrastructure and service. 

The authorities are also 

working hard to put together 

a promotional strategy for the 

country. According to Kuqi, “We 

are in close cooperation with other 

institutions in Kosovo in order to 

create a greater image of Kosovo, 

presenting it as a secure place for 

tourism, as a new country, as a 

place that has enough capacity for 

visitors and to finally eliminate the 

image that Kosovo has had until 

now as a conflict area.” 

The country is therefore moving 

in the right direction and with 

such latent potential the country 

could soon be mentioned in the 

same breath as more prominent 

Balkan tourism destinations 

such as Croatia, Montenegro 

and Bulgaria. With clear and 

transparent planning, the 

government is well placed to lure 

many more European tourists 

looking for a change of scene and 

a diverse range of activities and 

sights over the coming years. 

69

KOSOVO 

Tourism 

Eurokoha Reisen 

Top Quality Travel Services 

Eurokoha Reisen, founded in Prishtina in 1995, has 

grown to become one of Kosovo’s leading companies and 

a driving force behind the country’s efforts to build a 

thriving tourism sector. 

A shareholder of Hamburg International, Eurokoha 

has opened two offices in Prishtina and branches in 

Stuttgart, Munich, Dusseldorf, Hamburg, Hanover, 

Zurich and Geneva in addition to its main office in 

Frankfurt. Eurokoha has 41 highly trained employees 

in Kosovo. 

Eurokoha operates according to the highest international 

standards and is a member of the International 

Air Transport Association. Its certified travel agents 

employ the Amadeus system and the Go Global Travel 

international system to make travel arrangements, 

including hotel and auto hire reservations, for its clients 

all over the globe. Eurokoha’s on-line booking system 

is used by more than 300 contracted travel agencies, 

which enables Eurokoha to provide the best possible 

travel options for its clients. 

Prishtina Airport now welcomes around one million 

passengers per year, and 30% of these travellers are 

Eurokoha’s clients. The company is known for offering 

tailored solutions and for finding the least expensive 

and most convenient travel routes. Eurokoha regularly 

provides travel arrangements for Kosovo’s President, 

Prime Minister, members of parliament, cabinet 

members and their staffs and other prominent organisations. 

Eurokoha is also Kosovo’s leading company 

in providing holiday packages to Turkey, Albania and 

Egypt. 

After many years of hard work and continuous 

exploration of Kosovo’s travel market, Eurokoha 

created Kosovo’s first national airline, Kosova Airlines, 

in 2003. The airline, working in partnership with leading 

airlines in the US and Europe, now flies to destinations 

throughout Europe and beyond, and has been seeing a 

steady rise in passenger numbers from 172,700 in 2003 

to 317,711 last year. 

Its partners include ATA Airlines (New York), Hello (Zurich, 

Geneva), Edelweiss (Zurich,Geneva), LTU International 

(Düsseldorf, Stuttgart), Germanwings (Cologne/Bonn, 

Hamburg, Stuttgart), Hamburg International (Munich), Air 

Berlin (Munich, Stuttgart, Düsseldorf, Hamburg, Frankfurt, 

Hanover, EuroAirport Basel-Mulhouse-Freiburg), Atlasjet 

(Antalya, Istanbul-Atatürk), and SunExpress (Antalya). 

It also has co-operative agreements with Austrian Airlines, 

Air Berlin, Lufthansa, Adria Airways, British Airways, 

Malev, Turkish Airlines, Macedonian Airlines, MNG, Swiss 

Air, United Airlines, American Airlines, Delta Airlines, 

Continental Airlines, Al Italia and many more. 

Eurokoha’s flights provide quick links to and from 

Pristina and destinations throughout Europe, including 

Hamburg, Hanover, Frankfurt, Stuttgart, Munich, Köln, 

Düsseldorf, Zurich and Geneva. For EU investors and 

travellers who wish to visit Kosovo, Eurokoha and Kosova 

Airlines are the right choice. 

Eurokoha Reisen 

Vellusha e Poshtme 17 - 10 000 Prishtina, Kosovo 

Tel.: +381 38 245 998 - +381 38 243 482 

Fax.: +381 38 249186 - www.eurokoha.net 

70

With special 

thanks to:

Ta 

ak 

ki 

ng Minera 

al 

Ex 

xp 

lo 

ra 

at 

ion 

an 

d Dev 

ve 

lo 

pm 

me 

nt 

to 

New 

Fro 

ntiers 

Ly 

dian International through its local subsidiary, Kosovo Resource 

Company, is a proud partner in the economic redevelopment of Kosovo. 

Ly 

dian International is a diversified British based mineral exploration company with expertise employing “first mover” 

strategies in emerging environments. The company is currently focused on Eastern Europe with 3 projects in Kosovo 

including a flagship Lead-Zinc project, plus a flagship Gold project in Armenia. 

For more information go to www.lydianinternational.co.uk. 

72 

Lydian International is listed on the Toronto Stock Exchange (TSX) under the symbol LYD.

Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

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