Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans
Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans
Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans
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KOSOVO<br />
Transport & Communications<br />
<strong>Kosova</strong> <strong>Airlines</strong><br />
<strong>Kosova</strong> <strong>Airlines</strong> <strong>Seeking</strong> <strong>Partners</strong> <strong>to</strong><br />
<strong>Achieve</strong> <strong>Ambitious</strong> <strong>Growth</strong> <strong>Plans</strong><br />
<strong>Kosova</strong> <strong>Airlines</strong>, established in 2003<br />
and headquartered in Prishtina,<br />
is seeing steady growth in turnover<br />
and has ambitious plans <strong>to</strong> expand<br />
its route network and services,<br />
according <strong>to</strong> Remzi Ejupi, CEO,<br />
who founded the airline <strong>to</strong> provide<br />
services in Kosovo.<br />
The airline, which works through<br />
partner airlines and also serves<br />
as Kosovo’s <strong>to</strong>p travel agency, has<br />
boosted its turnover by an average<br />
3% <strong>to</strong> 5% per year since 2006 and<br />
anticipates around €60 million in<br />
turnover this year. <strong>Kosova</strong> <strong>Airlines</strong><br />
owns a 20% share of Hamburg<br />
International via its German Distribution<br />
Partner Eurokoha Reisen<br />
GmbH. Most flights go <strong>to</strong> Germany<br />
and Switzerland and the airline has<br />
established hubs in Dusseldorf,<br />
Stuttgart, Munich and Zurich for<br />
connections throughout the region<br />
and beyond. This year it launched a<br />
new direct flight between Prishtina<br />
and Basel, Switzerland.<br />
Remzi Ejupi, President<br />
In its role as an airline, <strong>Kosova</strong><br />
<strong>Airlines</strong> offers flights via partner<br />
carriers between Prishtina and New<br />
York; Zurich, Basel and Geneva<br />
(Hello and Edelweiss Air); Stuttgart<br />
(Germanwings and Air Berlin);<br />
Dusseldorf (Air Berlin); Cologne/<br />
Bonn and Hamburg (Germanwings);<br />
Munich (Hamburg International);<br />
Frankfurt and Hanover (Air Berlin);<br />
and Antalya (Atlasjet and Sun<br />
Express).<br />
Expanding route network<br />
Albania, Italy, Vienna, London and<br />
Brussels are all destinations Remzi<br />
Ejupi would like <strong>to</strong> add <strong>to</strong> <strong>Kosova</strong><br />
<strong>Airlines</strong>’ route network. Remzi Ejupi<br />
says, “There is significant potential<br />
for routes between Kosovo and<br />
neighbouring countries, including<br />
Albania. Currently we offer flights<br />
<strong>to</strong> Turkey only during the summer<br />
season so we see growth there as well,<br />
particularly for year-round flights for<br />
business cus<strong>to</strong>mers.” <strong>Kosova</strong> <strong>Airlines</strong><br />
offers flights between Germany and<br />
Macedonia during the high <strong>to</strong>urist<br />
season and would like <strong>to</strong> extend its<br />
Macedonia service by offering flights<br />
between Macedonia and Switzerland.<br />
It would also like <strong>to</strong> increase the<br />
number of flights <strong>to</strong> its established<br />
destinations.<br />
The airline welcomes partnerships<br />
with international companies<br />
and inves<strong>to</strong>rs <strong>to</strong> help it achieve its<br />
growth plans. “We are experienced<br />
enough <strong>to</strong> know that we cannot do<br />
everything on our own, so we are<br />
looking for partnerships, and I have<br />
already made some contacts. We have<br />
a great deal <strong>to</strong> offer, including more<br />
long-haul passengers for a partner<br />
company,” Remzi Ejupi says.<br />
<strong>Kosova</strong> <strong>Airlines</strong> also aims <strong>to</strong> help<br />
jump-start Kosovo’s <strong>to</strong>urism industry<br />
by providing more flights between<br />
Kosovo and key European destinations<br />
and by forming partnerships<br />
with major European <strong>to</strong>ur opera<strong>to</strong>rs,<br />
including in Albania, which Remzi<br />
Ejupi sees as a growth market. He<br />
concludes, “We aim <strong>to</strong> focus on<br />
our core activities and <strong>to</strong> become<br />
a leading airline in Kosovo and<br />
throughout the region.”<br />
<strong>Kosova</strong> <strong>Airlines</strong><br />
Vellusha e Poshtme 17<br />
10000 Prishtina<br />
Kosovo<br />
Tel.: +381 38 24 44 44<br />
Fax: +381 38 24 91 86<br />
www.kosovaairlines.com<br />
www.flyksa.com<br />
41
Calling the Shots: Competition Is<br />
Bringing Increased Quality <strong>to</strong> the Sec<strong>to</strong>r<br />
As a crucial component of Kosovo’s<br />
infrastructure roll out, the telecommunications<br />
and IT sec<strong>to</strong>r<br />
has already seen unprecedented<br />
investment which is set <strong>to</strong> increase<br />
yet further. Internet and mobile<br />
penetration are growing rapidly<br />
in the nascent country with a<br />
highly qualified and youthful<br />
demographic providing both a<br />
receptive consumer base and a<br />
potential high skilled workforce<br />
for outsourcing operations.<br />
The telecommunications sec<strong>to</strong>r<br />
is home <strong>to</strong> the country’s largest<br />
company by capital and <strong>to</strong> some of<br />
the most prominent investments.<br />
The incumbent opera<strong>to</strong>r in<br />
Kosovo is the Post and Telecommunication<br />
Kosovo (PTK) which is<br />
responsible for Post of Kosovo, the<br />
fixed line opera<strong>to</strong>r, Telecoms of<br />
Kosovo, and the mobile opera<strong>to</strong>r,<br />
Vala. PTK, which is a public<br />
enterprise under the aegis of the<br />
Kosovo Trust Agency has 107,000<br />
landline users and, through its<br />
subsidiary Vala, 830,000 mobile<br />
users. Furthermore, the company<br />
is Kosovo’s most profitable with an<br />
estimated value of approximately<br />
€1.3 billion.<br />
If more evidence were needed for<br />
the great strides forward that the<br />
country has made, one only need <strong>to</strong><br />
look at the penetration levels in the<br />
telecommunications sec<strong>to</strong>r. Internet<br />
penetration in Kosovo had hit 15%<br />
by the final quarter of 2005 putting<br />
it on a par with Turkey and above<br />
more established regional players<br />
such as Romania and Albania. In<br />
2007, this was given a further boost<br />
with the launch of PTK’s broadband<br />
package, ‘PTK ADSL’. The service<br />
had approximately 10,000 cus<strong>to</strong>mers<br />
or a 25-30% market share by 2008<br />
with Ipko Net and Kujtesa being the<br />
other market players. The country<br />
also had a mobile penetration rate<br />
of 35% in June 2007, a significant<br />
42
KOSOVO<br />
Transport & Communications<br />
figure considering the brevity of the<br />
industry in Kosovo. Nevertheless, this<br />
provides extremely good potential<br />
for rapid growth.<br />
From a network point of view, PTK<br />
is already well placed <strong>to</strong> absorb this<br />
growth. Vala’s mobile network has<br />
been rolled out over approximately<br />
90% of the country. The company<br />
also has 127 roaming agreements<br />
for post-paid cus<strong>to</strong>mers showing<br />
its intent <strong>to</strong> expand its international<br />
network. On the fixed line<br />
segment, Ipko Net, the country’s<br />
largest internet provider has rolled<br />
out an extensive broadband network<br />
which has far-reaching population<br />
coverage.<br />
However, the country is not resting<br />
on its laurels. 2007 saw PTK’s<br />
monopoly of the mobile segment<br />
come <strong>to</strong> an end when Ipkonet<br />
Telekom Slovijne/Mobitel won the<br />
second opera<strong>to</strong>r mobile license<br />
for €75 million. The consortium<br />
announced their intention<br />
immediately with investment in<br />
its network which is expected <strong>to</strong><br />
reach €120 million by the time<br />
roll out is complete. One of the<br />
first contracts for the GSM network<br />
went <strong>to</strong> Ericsson Nikola Tesla<br />
which won a €37 million contract<br />
for the supply, implementation<br />
and operation of the GSM communications<br />
and transmission system.<br />
While Ipkonet Telekom Slovijne/<br />
Mobitel will initially concentrate<br />
on achieving coverage in Kosovo’s<br />
dense urban areas, labelled the<br />
Kosovo city ring, it expects <strong>to</strong><br />
achieve full network coverage<br />
within three years. Indeed, the<br />
consortium has ambitious plans<br />
hoping <strong>to</strong> capture a 50% market<br />
share by 2012 and approximately 1<br />
million GSM cus<strong>to</strong>mers by 2015.<br />
However, competition is likely <strong>to</strong><br />
be stiff with the state planning <strong>to</strong><br />
privatise the incumbent opera<strong>to</strong>r<br />
Vala in the near future. Indeed,<br />
with a young, educated, technologically<br />
savvy population, penetration<br />
rates on both voice and data should<br />
shoot up over the coming years.<br />
This young work force, which has<br />
a competitive cost advantage over<br />
many neighbouring countries, will<br />
also allow Kosovo <strong>to</strong> position itself<br />
as an outsourcing hub following<br />
a model similar <strong>to</strong> the one so successfully<br />
employed by Bulgaria.<br />
Currently, public and private institutions<br />
in the field of information<br />
technology, supported by leading<br />
multinational firms such as CISCO<br />
and Microsoft, are being rolled<br />
out across the country supporting<br />
the development of a knowledge<br />
and high-tech economy. Initially,<br />
Kosovo is certainly well placed<br />
<strong>to</strong> develop the full spectrum of<br />
outsourcing operations including<br />
software development, data<br />
management, call and support<br />
centres and other consulting<br />
services.<br />
The government realises that <strong>to</strong><br />
achieve these aims the regula<strong>to</strong>ry<br />
and legal framework has <strong>to</strong> be in<br />
place. To this end, the Telecommunication<br />
Regula<strong>to</strong>ry Authority<br />
(TRA) has been working on<br />
licensing, encouraging private<br />
sec<strong>to</strong>r participation and ensuring<br />
fair competition. While the country<br />
is still in the process of receiving<br />
recognition from the International<br />
Telecommunications Union (ITU)<br />
which will allow the country <strong>to</strong><br />
register a telephone country code<br />
and internet domain name, much<br />
of the ground work has been done<br />
<strong>to</strong> provide fertile soil for further<br />
investment.<br />
Indeed, the telecommunications<br />
sec<strong>to</strong>r should provide unbounded<br />
opportunities for investment in<br />
the coming years. Indeed, once the<br />
country reaches market saturation<br />
on voice and data, the country<br />
should be in a good position <strong>to</strong><br />
offer fixed-mobile convergence<br />
and bring the next generation of<br />
services <strong>to</strong> a hungry market.<br />
43
KOSOVO<br />
Transport & Communications<br />
IPKO<br />
Dynamic Telecom Provider Aims <strong>to</strong><br />
Offer One-S<strong>to</strong>p Integrated Services<br />
IPKO won the €75 million tender<br />
for the second mobile telecom services<br />
license in Kosovo last year, one more<br />
success s<strong>to</strong>ry for this dynamic telecom<br />
enterprise. IPKO offers a full range<br />
of integrated services and content<br />
for mobile communications, fixed<br />
telephony and the Internet.<br />
After only eight years of<br />
operations, it already serves<br />
around one million cus<strong>to</strong>mers<br />
in Kosovo and is the country’s<br />
<strong>to</strong>p telecom inves<strong>to</strong>r. IPKO has<br />
already invested over €200 million<br />
<strong>to</strong> date in building a cutting-edge<br />
GSM network covering 80% of the<br />
country, with financial support<br />
from the European Investment<br />
Bank. Telekom Slovenia has a<br />
63.75% share in the company.<br />
CEO Akan Ismaili explains that<br />
IPKO earned a 35% share of the<br />
mobile services market and was<br />
providing mobile telecom services<br />
<strong>to</strong> over 300,000 cus<strong>to</strong>mers in less<br />
than nine months after its launch of<br />
mobile services last year. IPKO is not<br />
only the biggest foreign investment<br />
in Kosovo <strong>to</strong> date but also Slovenia’s<br />
biggest investment abroad. “This<br />
shows not only Telekom Slovenia’s<br />
commitment <strong>to</strong> Kosovo but also its<br />
faith in the potential of the <strong>Kosova</strong>r<br />
market,” he says.<br />
Mobile telecom penetration in<br />
Kosovo is currently around 50%<br />
and IPKO aims <strong>to</strong> boost that<br />
percentage.<br />
Akan Ismaili, CEO<br />
Prior <strong>to</strong> mobile, IPKO has heavily<br />
invested in the fixed network. Now<br />
it operates a fixed network in the<br />
main cities and <strong>to</strong>wns of Kosovo,<br />
reaching over 150,000 residences.<br />
The company also has 52,000<br />
broadband subscribers.<br />
IPKO’s competitive edge is its<br />
winning combination of state-ofthe-art<br />
solutions, the latest technologies,<br />
a wide range of packages,<br />
added value services, quality,<br />
reliability, security, and solid user<br />
support 24/7.<br />
Reliable telecom service in<br />
Kosovo and beyond<br />
Mobile services will be the main<br />
driver of IPKO’s continued growth<br />
in Kosovo, but that is not the whole<br />
s<strong>to</strong>ry. “We want IPKO <strong>to</strong> become a<br />
one-s<strong>to</strong>p shop for integrated telecommunications<br />
services,” Akan<br />
Ismaili explains, adding that IPKO<br />
also plans <strong>to</strong> invest in the fibre<br />
optic connections with very high<br />
capacities <strong>to</strong> regional and international<br />
hubs. He points out that<br />
through Telekom Slovenia, IPKO<br />
already offers reliable telecom<br />
connections throughout Europe.<br />
As for the future, Akan Ismaili<br />
explains, “We are here <strong>to</strong> provide<br />
services, but at the same time we<br />
are open minded about any new<br />
partnerships.”<br />
He adds, “IPKO is an initia<strong>to</strong>r<br />
of development within Kosovo’s<br />
telecom sec<strong>to</strong>r. We see ourselves<br />
as setting the standard for doing<br />
business successfully in this<br />
market.”<br />
Mother Theresa Street<br />
RTK Building, 5th floor<br />
Prishtina<br />
KOSOVO<br />
Tel.: +381 38 700 010<br />
Fax: +381 38 700 001<br />
www.ipko.com<br />
44
• Talking Shop: The Ministry Talks About Producing More Goods for Market<br />
• The Lie of the Land: The Government Is Overseeing the Commercialisation<br />
of the Country’s Farms<br />
Agriculture & Food Industry<br />
“My opinion is that inves<strong>to</strong>rs<br />
should look at Kosovo because<br />
we have a young population that<br />
wants <strong>to</strong> work and for less money<br />
than in other EU countries.”<br />
Idriz Vehapi, Minister of Agriculture, Forestry and Rural Development
KOSOVO<br />
Agriculture & Food Industry<br />
Ministry of Agriculture, Forestry and Rural Development<br />
Talking Shop: The Ministry<br />
More Goods for Market<br />
The Ministry of Agriculture, Forestry and Rural<br />
Development is charged with overseeing the crucial<br />
transition from largely subsistence rural farming <strong>to</strong> a<br />
modern industrialised agricultural sec<strong>to</strong>r. The Ministry<br />
has long been working with UNMIK <strong>to</strong> achieve these<br />
goals and since independence has stepped up its efforts<br />
<strong>to</strong> attract foreign investment <strong>to</strong> the potentially lucrative<br />
sec<strong>to</strong>r. In parallel <strong>to</strong> such incentives, the Ministry is coordinating<br />
its efforts with the European Union <strong>to</strong> ensure<br />
that legislation and regulations governing the sec<strong>to</strong>r are<br />
harmonised with the EU’s standards.<br />
Idriz Vehapi, Minister of Agriculture, Forestry and Rural Development<br />
Here, ET talks <strong>to</strong> Idriz Vehapi, the Minister of<br />
Agriculture, Forestry and Rural Development, about<br />
the future of agriculture in newly independent<br />
Kosovo. From wine-making <strong>to</strong> land consolidation<br />
and employment generation, Mr. Vehapi believes<br />
that agriculture will play a vital and prominent role<br />
in the future economic success of his country.<br />
ET: How important is the agricultural sec<strong>to</strong>r for the<br />
economy of Kosovo<br />
I. Vehapi: The agriculture sec<strong>to</strong>r is a very important<br />
part of Kosovo’s economic development, not least<br />
because of the fact that more than 50% of the<br />
population of Kosovo lives in rural areas. Moreover,<br />
the majority of this population is young, so this<br />
means that agriculture can provide a firm basis for<br />
economic growth. However, we recognise that in the<br />
future other sec<strong>to</strong>rs will develop and that less people<br />
46
KOSOVO<br />
Agriculture & Food Industry<br />
Talks About Producing<br />
will be involved in agriculture. For example, in the<br />
UK, a small percentage of the population is involved<br />
in agriculture now and a similar trend will also take<br />
place here in Kosovo.<br />
ET: Tell me a little bit about the development that<br />
has taken place in the sec<strong>to</strong>r since the declaration<br />
of independence in 2008<br />
I. Vehapi: Before the declaration of independence<br />
there was the new election, in which the future Prime<br />
Minister made agriculture one of his campaign<br />
priorities. Subsequently, after the declaration of<br />
independence, we laid out our agricultural priorities<br />
for our donors. Within this program, the new prime<br />
minister has made agriculture an absolute priority<br />
which was stressed at the Donors Conference in<br />
Brussels. Of course, there are also private inves<strong>to</strong>rs<br />
from Switzerland, The Netherlands, Germany, Italy,<br />
and other European countries interested in Kosovo’s<br />
agricultural sec<strong>to</strong>r.<br />
ET: What is the most important role that European<br />
inves<strong>to</strong>rs can play in Kosovo’s agriculture sec<strong>to</strong>r<br />
I. Vehapi: We need them <strong>to</strong> bring technology and<br />
know-how but also the finance for new initiatives. On<br />
<strong>to</strong>p of this, we are looking <strong>to</strong> develop commercial<br />
farms endowed with modern technology, higher<br />
yields and higher efficiency so that labour can be put<br />
<strong>to</strong> work in other sec<strong>to</strong>rs. Most importantly, Kosovo<br />
wants <strong>to</strong> make it as easy as possible for outside<br />
private inves<strong>to</strong>rs <strong>to</strong> invest in the agriculture sec<strong>to</strong>r.<br />
We already have some commitments <strong>to</strong> invest in the<br />
agriculture sec<strong>to</strong>r, primarily from private inves<strong>to</strong>rs,<br />
because agriculture is one of the <strong>to</strong>p five sec<strong>to</strong>rs of<br />
Kosovo’s economy.<br />
ET: What challenges do you see ahead for the<br />
agriculture sec<strong>to</strong>r<br />
I. Vehapi: Firstly, the most important challenge is that<br />
the farms are very small and thus less competitive<br />
and profitable than those in neighbouring countries.<br />
Therefore, the main challenge is land consolidation<br />
which will create larger farms in the future. Beyond<br />
this, Kosovo needs more capacity in processing agricultural<br />
products. Also, food s<strong>to</strong>rage is an issue as<br />
currently farming is determined by the seasons. This<br />
is certainly one area where inves<strong>to</strong>rs can get a high<br />
return on investment.<br />
ET: How do you plan <strong>to</strong> confront these challenges<br />
I. Vehapi: First of all, these challenges are certainly<br />
a priority. Bigger farms are necessary <strong>to</strong> compete<br />
and achieve the necessary productivity. To this end,<br />
we always advise our farmers <strong>to</strong> unite in associations<br />
and cooperatives <strong>to</strong> be stronger.<br />
ET: How do European inves<strong>to</strong>rs look at the<br />
investment opportunities with regard <strong>to</strong> this<br />
consolidation<br />
I. Vehapi: For land consolidation, one of the main<br />
inves<strong>to</strong>rs was the World Bank and EU which is also<br />
investing in the irrigation system. Since the consolidation<br />
and irrigation are our priorities, we<br />
increased our budget regarding these two areas.<br />
The investments in these sec<strong>to</strong>rs will create opportunities<br />
for farms <strong>to</strong> be more competitive which will<br />
attract foreign inves<strong>to</strong>rs. We have a target of 70,000<br />
hectares and so far 12,000 have been recovered.<br />
ET: Why should Europeans invest in Kosovo rather<br />
than neighbouring countries<br />
I. Vehapi: My opinion is that inves<strong>to</strong>rs should look at<br />
Kosovo because we have a young population that wants<br />
<strong>to</strong> work and for less money than in other EU countries.<br />
So it is a low-wage country compared <strong>to</strong> neighbouring<br />
countries. However, at the same time, we have an<br />
educated workforce, a significant percentage of which<br />
has studied and lived abroad. Most of them would like<br />
<strong>to</strong> work here, which is a great opportunity for foreign<br />
companies wanting <strong>to</strong> set up business here.<br />
47
KOSOVO<br />
Agriculture & Food Industry<br />
The Lie of the Land: The Government<br />
Is Overseeing the Commercialisation<br />
of the Country’s Farms<br />
Agriculture has always played a<br />
prominent role in Kosovo’s economy.<br />
With more than half a million<br />
hectares of cultivable land and 60%<br />
of the population living in rural<br />
areas, the country is well set up for<br />
further investment in this crucial<br />
sec<strong>to</strong>r. With the ongoing privatisation<br />
process, Kosovo’s larger farms,<br />
under the stewardship of the Kosovo<br />
Trust Agency, present particularly<br />
good opportunities for investment.<br />
The government has laid out<br />
a detailed strategy <strong>to</strong> further<br />
stimulate agricultural development<br />
in the country. After assessing<br />
the <strong>to</strong>pographical and climate<br />
conditions in the country, the<br />
Ministry of Agriculture, Forestry and<br />
Rural Development will be targeting<br />
high value crops such as fruit and<br />
vegetables. The government is<br />
also keen <strong>to</strong> make the transition<br />
from a largely subsistence base<br />
<strong>to</strong> a commercial base with the<br />
development of the land market<br />
<strong>to</strong> increase the size of farms.<br />
Moreover, the ministry hopes<br />
<strong>to</strong> develop knowledge transfer<br />
that will raise the productivity of<br />
the land. In parallel with these<br />
practical measures, the country will<br />
be looking <strong>to</strong> bring its legal and<br />
regula<strong>to</strong>ry framework in line with<br />
the highest EU standards.<br />
With over 250,000 hectares of<br />
meadow and grassland, Kosovo is<br />
well placed <strong>to</strong> expand its agricultural<br />
base. Currently, grains such<br />
as wheat and maize account for the<br />
largest share of the sec<strong>to</strong>r in terms of<br />
land use. However, the government<br />
is keen <strong>to</strong> re-align the focus <strong>to</strong> fruit<br />
and vegetables which presently<br />
account for just over 38,000 hectares<br />
of arable land.<br />
Kosovo’s viticulture industry is well<br />
established. The public sec<strong>to</strong>r has<br />
a wine processing capacity of 112<br />
million litres while the private sec<strong>to</strong>r<br />
processes approximately 30,000<br />
litres. The government is also looking<br />
<strong>to</strong> revitalise its lives<strong>to</strong>ck production<br />
industry so that the country can<br />
become increasingly self-sufficient<br />
in meat and dairy production.<br />
For all segments of the agricultural<br />
sec<strong>to</strong>r, the government has provided<br />
incentives <strong>to</strong> bring further investment<br />
<strong>to</strong> the country. Most agricultural<br />
inputs and capital goods are tariff free<br />
which is supported by VAT exemption<br />
for a wide range of agricultural<br />
inputs. The government hopes that<br />
this will increase production dramatically<br />
allowing the country <strong>to</strong> become<br />
a significant agricultural exporter.<br />
This is no pipe dream. Kosovo has<br />
a series of competitive advantages<br />
in the agricultural field including<br />
high yields and cheap labour. With<br />
local production currently only<br />
covering 30% of domestic demand,<br />
the potential for growth is sizable.<br />
The stimulation of the sec<strong>to</strong>r should<br />
allow the government <strong>to</strong> both bring<br />
down its reliance on imports as well<br />
as create a liberal environment <strong>to</strong><br />
become a major agricultural exporter<br />
<strong>to</strong> the EU.<br />
48
KOSOVO<br />
Agriculture & Food Industry<br />
Peja Brewery<br />
Market-Leading Local Brewery<br />
Expanding Regionally<br />
Peja Brewery has carved out a 70%<br />
share of the local beer market thanks<br />
<strong>to</strong> its high quality beers made with<br />
cutting edge techniques.<br />
As Sebastjan Gergeta, acting<br />
General Manager, explains, the<br />
brewery was founded in 1971<br />
and acquired in 2006 by leading<br />
Slovenian Pivovarna Laško Group<br />
and local <strong>Kosova</strong>r inves<strong>to</strong>rs,<br />
mainly Dukagjini Group’s owner<br />
Ekrem Lluka. “After the €11<br />
million privatisation tender, we<br />
invested around €12-13 million<br />
in upgrading the brewery’s<br />
facilities, equipment, technologies<br />
and marketing. Now we are<br />
a very well known brewery with a<br />
very well known brand. Any new<br />
product we introduce will most<br />
likely be a success,” he says.<br />
Thanks <strong>to</strong> its upgrades, the<br />
brewery has increased the shelf<br />
life of its beer from three weeks <strong>to</strong><br />
six months. It has been reinvesting<br />
revenues but hopes <strong>to</strong> make a<br />
profit next year and anticipates<br />
an average 10% growth over the<br />
coming five years.<br />
Peja aims <strong>to</strong> expand <strong>to</strong> markets<br />
beyond Kosovo, since it has not yet<br />
reached full production capacity<br />
and believes that the <strong>Kosova</strong>r<br />
market will not be able <strong>to</strong> keep up<br />
with the brewery’s growth. Peja<br />
already has agreements with distribu<strong>to</strong>rs<br />
in Montenegro, Serbia<br />
and Macedonia but its main focus<br />
next year will be Albania, where it<br />
aims <strong>to</strong> boost sales by 5% <strong>to</strong> 6%.<br />
“We are welcome everywhere and<br />
present in every market in the<br />
region,” Sebastjan Gergeta says<br />
proudly.<br />
Signficant investment<br />
potential<br />
Peja Brewery offers very attractive<br />
investment potential. “European<br />
portfolio inves<strong>to</strong>rs, including<br />
smaller inves<strong>to</strong>rs, and funding<br />
organisations are very welcome.<br />
We are a very transparent company<br />
and we would repay the faith that<br />
any European institution has in<br />
us,” Sebastjan Gergeta says. He<br />
adds that new investments will go<br />
<strong>to</strong>ward expanding the brewery’s<br />
product lines and continuing <strong>to</strong><br />
upgrade its technologies. Around<br />
€15 million over the next five<br />
years will be needed <strong>to</strong> bring the<br />
brewery fully up <strong>to</strong> EU standards.<br />
Peja would also like <strong>to</strong> partner<br />
with distribu<strong>to</strong>rs, suppliers and<br />
consultants in Western Europe.<br />
The brewery’s successful<br />
partnership with Slovenia’s <strong>to</strong>p<br />
breweries, Pivovarna Laško and<br />
Pivovarna Union, gives it an edge.<br />
“We have the necessary know-how,<br />
financing and guarantees, as well<br />
as people who know the business.<br />
Our 70% market share, which we<br />
aim <strong>to</strong> boost <strong>to</strong> 80%, gives us a<br />
virtual monopoly in Kosovo and we<br />
Sebastjan Gergeta, acting General Manager<br />
have basically taken over the distribution<br />
system,” Sebastjan Gergeta<br />
explains. He adds, “Inves<strong>to</strong>rs<br />
interested in Kosovo should work<br />
with a strong local partner.”<br />
Peja Brewery<br />
30000 Peje, Kosovo<br />
Tel.: +381 39 432 661<br />
Fax: +381 39 433 989<br />
49
KOSOVO<br />
Agriculture & Food Industry<br />
Meridian Corporation<br />
Dynamic Group Welcomes Joint<br />
Venture <strong>Partners</strong><br />
The Meridian Corporation offers<br />
outstanding potential for foreign<br />
inves<strong>to</strong>rs. The family-owned group<br />
with 170 employees was relaunched<br />
after the war in 1999 and has<br />
since achieved significant growth.<br />
Meridian has operations in 12<br />
locations and is one of Kosovo’s<br />
biggest distribu<strong>to</strong>rs of beverages and<br />
foods, including fresh and frozen<br />
foods as well as organic products and<br />
international brands of beverages.<br />
Meridian works with over 4,000<br />
vendors in Kosovo, including retail<br />
chains, supermarkets, drug s<strong>to</strong>res<br />
and the HoReCa (hotel, restaurant<br />
and catering) sec<strong>to</strong>r.<br />
The Meridian group includes foods<br />
and beverages divisions, Montazhi<br />
(construction), and Energoinvest<br />
(energy activities). “Montazhi<br />
is known for its construction of<br />
both residential and commercial<br />
buildings as well as electrical installations,<br />
heating and cooling systems,<br />
and water and waste treatment<br />
facilities. Energoinvest produces<br />
electrical equipment, transformer<br />
Hakif Gashi, CEO<br />
stations and more. We acquired both<br />
companies a couple of years ago and<br />
now we are looking for partners and<br />
joint ventures,” explains CEO Hakif<br />
Gashi.<br />
Meridian is especially interested in a<br />
joint venture in the fast growing food<br />
and beverages sec<strong>to</strong>r since the group<br />
already has the necessary facilities,<br />
resources and building land. “We are<br />
looking for a partner who can start up<br />
food and beverage production with<br />
us,” Hakif Gashi explains. Meridian<br />
eventually plans <strong>to</strong> expand its<br />
thriving food and beverage distribution<br />
beyond Kosovo, <strong>to</strong> Macedonia,<br />
Montenegro, Albania and Serbia.<br />
Significant potential in energy<br />
sec<strong>to</strong>r<br />
Both Montazhi and Energoinvest<br />
offer strong growth potential as<br />
well. Hakif Gashi points out, “Energoinvest<br />
has the most potential<br />
because Kosovo’s energy sec<strong>to</strong>r is<br />
very undeveloped. We anticipate<br />
significant growth in the near future.<br />
We are looking for joint ventures<br />
and partners that can help us take<br />
Energoinvest and Montazhi <strong>to</strong> the<br />
next level concerning technology,<br />
know-how, experience, access <strong>to</strong><br />
new markets, and financing.” Energoinvest<br />
has already served Kosovo<br />
Electrical Corporation (KEK),<br />
private companies, power plants and<br />
several mines.<br />
Kosovo has outstanding prospects,<br />
Hakif Gashi believes, and Meridian<br />
is the ideal local partner for<br />
inves<strong>to</strong>rs. He says, “Meridian offers<br />
future partners a creative and<br />
capable management, dedicated<br />
and motivated employees, efficient<br />
business processes and structure, a<br />
well-established local presence with<br />
expeditious and qualitative services,<br />
17 hectares of building land, and<br />
construction capacity. In addition,<br />
doing business is not a problem in<br />
Kosovo. We have the same standards<br />
and values as in the EU and we hope<br />
our ties with the EU will grow even<br />
stronger in the future.”<br />
Meridian Corporation LL.C<br />
Bul. ‘ Bill Clin<strong>to</strong>n’, p.n<br />
Zona industriale<br />
10000 Prishtina, Kosovo<br />
Tel.: + 381 38 541 521<br />
Fax: + 381 38 541 524<br />
meridian@meridian-ks.com<br />
www.meridian-ks.com<br />
50
• Infrastructure Development: The Minister Has <strong>Ambitious</strong> <strong>Plans</strong> <strong>to</strong> Improve the<br />
Country’s Infrastructure<br />
• A New Power Plant and Untapped Coal Reserves Are Set <strong>to</strong> Electrify the Industry<br />
• Mine Games: A <strong>Growth</strong> in Exploration and Mining Licenses Should Usher in<br />
Explosive <strong>Growth</strong><br />
Energy & Mining<br />
“Looking at the mining sec<strong>to</strong>r<br />
specifically, there is great potential<br />
<strong>to</strong> mine gold, copper and nickel<br />
amongst other nitrate deposits. On<br />
<strong>to</strong>p of this, ongoing exploration<br />
continues <strong>to</strong> unearth new deposits.”<br />
Justina Shiroka-Pula, Minister of Energy and Mining
Justina Shiroka-Pula, Minister of Energy and Mining<br />
The Ministry of Energy and Mining in Kosovo has been dealt a mixed hand.<br />
On the one hand, the country has almost unlimited potential in this sec<strong>to</strong>r with<br />
rich deposits especially in lignite and in variety of metal minerals such as Lead<br />
and Zinc, Ferronickel, Bauxite, Magnesite, Chrome, Copper, Gold and Silver <strong>to</strong><br />
the rather rare and high value halloysite clay. On the other, much work needs <strong>to</strong><br />
be done <strong>to</strong> upgrade the country’s energy infrastructure. However, the Ministry<br />
remains undaunted by this task and has ambitious plans <strong>to</strong> transform the country<br />
from a net electricity importer <strong>to</strong> a net electricity exporter over the coming decade.<br />
52
KOSOVO<br />
Energy & Mining<br />
Ministry of Energy and Mining<br />
Infrastructure Development: The<br />
Minister Has <strong>Ambitious</strong> <strong>Plans</strong> <strong>to</strong><br />
Improve the Country’s Infrastructure<br />
Indeed, whether you look at the country’s mineral deposits<br />
and mining capabilities or the requirements for power plant<br />
roll out and an increase in capacity of many hundreds of<br />
Mega Watt (MW), it is abundantly clear that the prospects<br />
for investment in the country are strong. The government is<br />
keen not <strong>to</strong> squander these opportunities and is offering a<br />
variety of methods <strong>to</strong> get the most efficient, cost effective and<br />
value added use out of these deposits and infrastructure.<br />
In the mining sec<strong>to</strong>r, mines can either be acquired through<br />
the ongoing privatisation process or re-energised and<br />
re-modelled by entering joint ventures with private owners.<br />
In the energy sec<strong>to</strong>r, Kosovo has embarked upon the path<br />
<strong>to</strong> a new power plant called Power Plant New Kosovo, and<br />
an associated lignite mine which when completed will be<br />
the largest ever private investment in Kosovo’s his<strong>to</strong>ry.<br />
The government has set the ambitious target of starting<br />
operations in the first unit of the new plant in the period<br />
starting from 2013 <strong>to</strong> 2014. It becomes clear why this is such<br />
a pressing concern when one contemplates that Kosovo<br />
would increase its GDP by an estimated 17% or 220 million<br />
with the addition of a further 1,000 MW <strong>to</strong> its capacity in this<br />
short period.<br />
The prospective growth for the country through this sec<strong>to</strong>r<br />
is therefore clear. Here, ET, talks <strong>to</strong> Minister of Energy<br />
and Mining, Justina Pula-Shiroka, about the opportunities<br />
and challenges facing the sec<strong>to</strong>r. From the relative<br />
values of established mines <strong>to</strong> untapped mineral deposits<br />
and exploration, Justina Pula-Shiroka sees a central role<br />
for mining in Kosovo’s future. The Minister also talks<br />
about what makes Kosovo such an attractive proposition<br />
which goes beyond resources beneath the earth <strong>to</strong> those<br />
above it, namely human resources and the young dynamic<br />
population.<br />
ET: How important is the mining sec<strong>to</strong>r for Kosovo’s<br />
economic development in general<br />
J. Pula-Shiroka: The mining sec<strong>to</strong>r is a key sec<strong>to</strong>r for the<br />
development of Kosovo. Kosovo is very rich in minerals and<br />
has a long experience in the mining industry which helps<br />
<strong>to</strong> attract many inves<strong>to</strong>rs. Moreover, we are offering <strong>to</strong> the<br />
interested companies several incentives <strong>to</strong> enter the Kosovo<br />
market. We have several old, pre-existing, functioning<br />
mines with over a numerous qualified mine workers and<br />
employees. One of these has already been privatised. The<br />
mining sec<strong>to</strong>r has attracted considerable British and US<br />
inves<strong>to</strong>rs and is open <strong>to</strong> foreign investment.<br />
ET: What are the major challenges facing the mining<br />
industry<br />
J. Pula-Shiroka: Well, we had a problem with the older<br />
mines where the licenses had passed their expiration date.<br />
Some of these mines were also in need of res<strong>to</strong>ration.<br />
However, having said that, with regard <strong>to</strong> the older mines,<br />
we expect the levels of interest <strong>to</strong> be higher because they are<br />
more attractive for investment given that they are already<br />
established and have an operating his<strong>to</strong>ry. We believe the<br />
time will come when these mines receive the necessary<br />
investment. Some of them are very promising for inves<strong>to</strong>rs<br />
as they have higher returns.<br />
ET: What are the planned investments for the next<br />
five years<br />
J. Pula-Shiroka: The government is planning<br />
development of several interest zones of metallic mines.<br />
Actually, there are ongoing activities in preparing<br />
feasibility studies for these interest zones, in order <strong>to</strong><br />
follow-up with respective bidding procedures.<br />
ET: What would be your personal message <strong>to</strong> our<br />
European inves<strong>to</strong>rs<br />
J. Pula-Shiroka: The European inves<strong>to</strong>rs are definitely<br />
very welcomed in Kosovo. I am certain that they<br />
will encounter here friendly social and business<br />
environment. I am sure <strong>to</strong>o that they will find here<br />
more competitive prices than elsewhere in region,<br />
and transparent procedures of bidding. I am glad <strong>to</strong><br />
remind the interested parties that we have here well<br />
educated young population, skilled in communication<br />
skills, particularly with English speaking people.<br />
Looking at the mining sec<strong>to</strong>r specifically, there is<br />
great potential <strong>to</strong> mine lead and zinc, gold, copper<br />
and nickel amongst other nitrate deposits. On <strong>to</strong>p of<br />
this, ongoing exploration continues <strong>to</strong> unearth new<br />
deposits.<br />
53
KOSOVO<br />
Energy & Mining<br />
A New Power Plant and Untapped<br />
Coal Reserves Are Set <strong>to</strong> Electrify<br />
the Industry<br />
As the country looks <strong>to</strong> move forward following the boon<br />
of independence in February 2008, energy has been<br />
earmarked as a key piece of Kosovo’s development jigsaw.<br />
Indeed, since the turn of the century, the international<br />
community through the UN Mission in Kosovo (UNMIK)<br />
has been working with the Kosovo Energy Corporation<br />
(KEK) <strong>to</strong> help the country meet its energy needs and<br />
rebuild its utilities infrastructure. The state now wants<br />
<strong>to</strong> build on this <strong>to</strong> exploit its abundant resources of<br />
lignite <strong>to</strong> power the country’s future development.<br />
As part of this process, the Ministry of Energy has<br />
drafted a 10 year energy strategy that lays out the<br />
supply and demand dynamics of the sec<strong>to</strong>r up until<br />
2015. With estimated lignite reserves of between 11.5<br />
billion and 14 billion <strong>to</strong>nnes, representing the fifth<br />
largest reserves in the world, the government is well<br />
placed <strong>to</strong> meet the residential and industrial energy<br />
requirements over the coming decade.<br />
Currently, KEK runs two power plants Kosovo A and<br />
Kosovo B. The plants are not currently running at full<br />
design capacity but provide approximately 7,000MW <strong>to</strong><br />
the country. This falls short of peak demand requirements<br />
with the government importing up <strong>to</strong> 400MW of<br />
electricity during the winter months. Kosovo, however,<br />
is working hard <strong>to</strong> bridge this deficit. The government<br />
is in the planning stage for Kosovo C and an associated<br />
lignite mine, which will bring the phased introduction<br />
of 2,000MW <strong>to</strong> both the local market and also <strong>to</strong> the<br />
electricity grid of South East Europe. The ambitious<br />
plan <strong>to</strong> move from being a net importer of electricity<br />
<strong>to</strong> becoming a net exporter is expected <strong>to</strong> be launched<br />
between 2012 and 2014.<br />
With a projected GDP growth of 9% between 2009 and<br />
2015 and investments worth €14.488 billion, the country<br />
will desperately need this capacity expansion <strong>to</strong> fuel<br />
this economic growth especially in the manufacturing<br />
sec<strong>to</strong>r. Moreover, the extra capacity will give the country<br />
an export capability of between 300-500MW helping <strong>to</strong><br />
ease current deficits. Indeed, this surplus energy may<br />
translate in<strong>to</strong> as much as €150 million worth of exports<br />
after 2012. Indeed, even with the Ministry of Energy’s<br />
high growth scenario of an annual increase in demand<br />
of 5.5%, the country would still have surplus energy<br />
upon the completion of Kosovo C.<br />
Therefore, although much work needs <strong>to</strong> be done <strong>to</strong><br />
build on the pre-independence infrastructure, the<br />
government is well placed <strong>to</strong> roll out extra capacity which<br />
will position Kosovo as a major player in the South East<br />
European energy market. As such, and with voluminous<br />
lignite reserves, the future looks bright both metaphorically<br />
and literally.<br />
55
Mine Games: An Increase in<br />
Exploration and Mining Licenses<br />
Should Usher in Explosive <strong>Growth</strong><br />
Kosovo has rich potential in the<br />
mining sec<strong>to</strong>r which has been the<br />
mainstay of the country’s economy for<br />
centuries. With bountiful untapped<br />
reserves, the sec<strong>to</strong>r is positioned for a<br />
dramatic increase in production and<br />
revenues. Indeed, recognising the<br />
potential, the government is actively<br />
working <strong>to</strong> privatise the mining<br />
sec<strong>to</strong>r and present opportunities for<br />
foreign investment in exploration<br />
and production.<br />
56
KOSOVO<br />
Energy & Mining<br />
Kosovo’s mineral reserves speak for themselves. With<br />
estimated lignite reserves of 14.7 billion <strong>to</strong>nnes, the<br />
country has the second largest discovered coal deposits<br />
on the European continent and the fifth largest<br />
lignite reserves in the world. The quality of this coal<br />
is also impressive with an exploitation cost of €1.1/<br />
Gj. This marks it out as the most price competitive<br />
in the region. Beyond coal, the country also benefits<br />
from rich mineral and base metal deposits. Kosovo is<br />
estimated <strong>to</strong> have lead and zinc reserves amounting<br />
<strong>to</strong> 48 million <strong>to</strong>nnes as well as nickel deposits of<br />
16 million <strong>to</strong>nnes. Chrome reserves are estimated<br />
<strong>to</strong> number 89 million <strong>to</strong>nnes while known Bauxite<br />
reserves are in the region of 13.2 million <strong>to</strong>nnes.<br />
The country can also count on significant reserves of<br />
gold, silver, copper and magnesium. The government<br />
estimates that the last of these is found in enough<br />
quantities <strong>to</strong> last 100 years.<br />
This all bodes well for Kosovo’s future economic<br />
success given the current price trends for these<br />
metals and minerals. Although lead prices have fallen<br />
in 2008, they had still maintained a price of well over<br />
€800 in the second half of 2008. Likewise, Nickel<br />
prices were still reasonably strong remaining above<br />
the €8,400 mark in November 2008. This suggests<br />
that Kosovo can garner significant revenue from these<br />
base metals alone. On <strong>to</strong>p of this, the government<br />
recently discovered 3mt of high-grade halloysite at<br />
Farbani Po<strong>to</strong>k. The importance of this should not be<br />
underestimated given the fact that this is only one of<br />
five exploitable sites globally where such high grade<br />
clay, with a value of €112-360 per <strong>to</strong>nne, has been<br />
discovered. Moreover, current world production only<br />
stands at 150,000 <strong>to</strong>nnes per year. This suggests that<br />
Kosovo is well placed <strong>to</strong> exploit its mineral reserves.<br />
However, the country is at the beginning of the process<br />
of taking advantage of this latent wealth. In 2005, the<br />
EU pillar established the Independent Commission for<br />
Mines and Minerals (ICMM), a regula<strong>to</strong>ry body which<br />
is charged with moni<strong>to</strong>ring and attracting investment<br />
<strong>to</strong> the sec<strong>to</strong>r. ICMM has a broad remit which includes<br />
the issuing and relocation of exploration and mining<br />
licenses and special operation permits. It also issues<br />
permits for commercial exploitation in the mining<br />
industry as well as taking responsibility for the<br />
expansion of the mining packages, the collection of<br />
information, distributing information <strong>to</strong> inves<strong>to</strong>rs,<br />
and moni<strong>to</strong>ring reserves through GIS surveys.<br />
According <strong>to</strong> Azem Rexhaj, Direc<strong>to</strong>r of the ICMM, “We<br />
think that the mining sec<strong>to</strong>r is the key <strong>to</strong> Kosovo’s future<br />
development. Kosovo is very rich with minerals. Also if<br />
you look at it from an investment point of view, every<br />
week we have three or four private inves<strong>to</strong>rs coming<br />
here <strong>to</strong> evaluate the possibilities <strong>to</strong> invest here. Kosovo<br />
also has a long experience in the mining industry. The<br />
Trepca Mining Complex has been here since Roman<br />
times. What’s more, in 2006 we did a new geological<br />
survey and the results showed that Kosovo has much<br />
more <strong>to</strong> offer than the Trepca mines.”<br />
Indeed, although the Trepca mines are Kosovo’s most<br />
famous, the country has abundant reserves spread<br />
throughout the country. However, the Trepca mines,<br />
whose lead and zinc deposits are mainly located in the<br />
east of the country, are among the initial priorities<br />
of the government in the mining sec<strong>to</strong>r. The Trepca<br />
metallurgical complexes, with significant deposits<br />
of lead, zinc and silver, were the largest mining<br />
operation in the former Yugoslavia and the Kosovo<br />
government wants <strong>to</strong> re-establish their prominence.<br />
It is believed that an investment of approximately<br />
€200 million will be required <strong>to</strong> revitalise the mines.<br />
Currently, production operations are only running at<br />
a test level.<br />
The Trepca management currently has plans, in the<br />
first phase, <strong>to</strong> attract private inves<strong>to</strong>rs <strong>to</strong> create new<br />
investment opportunities for public private joint<br />
ventures (JV). At a second stage, it is envisaged that<br />
full scale privatisation will take place <strong>to</strong> provide<br />
efficient company management and the market power<br />
<strong>to</strong> pursue investment in value-added zinc products.<br />
The ICMM is working hard <strong>to</strong> attract foreign<br />
investment in this respect and in the mining industry<br />
57
KOSOVO<br />
Energy & Mining<br />
more generally. During 2007, a <strong>to</strong>tal of 70 exploration and<br />
mining licenses were issued with the country’s explosive<br />
security system (ESS) fully up <strong>to</strong> NATO standards and<br />
under the control of the ICMM’s mining inspec<strong>to</strong>rate.<br />
The revenue generated from these licenses is crucial<br />
<strong>to</strong> the country’s budget. In 2007, mining royalties and<br />
other fees amounted <strong>to</strong> an estimated €2 million.<br />
However, this is not a short-term revenue stream.<br />
“According <strong>to</strong> the law a company gets an exploration<br />
license for the first 2 years, and then they can apply<br />
for an extension for another two years. However, then<br />
the licensed area will be reduced by 50%. They [the<br />
company] have the possibility <strong>to</strong> extend the license<br />
three times,” explains Azem Rexhaj. “Within these six<br />
years they will have <strong>to</strong> get the mining license and start<br />
mining or they will lose the license. This is so nobody<br />
loses their money because exploration costs are very<br />
high. Because of these rules we think that in the next<br />
five years we will have a minimum of three new mines in<br />
the beginning stages of operation and this will for sure<br />
continue,” he adds.<br />
There has already been a significant level of interest<br />
in licenses. A series of international companies have<br />
entered the Kosovo market on an explora<strong>to</strong>ry basis.<br />
For example, Lydian Resources of the UK has three<br />
exploration licenses for projects in Drazne amongst<br />
other places. North American companies have also<br />
received exploration licenses with the initial exploration<br />
being so promising that many international companies<br />
have applied for the full mining licenses.<br />
Beyond this, the government has worked on a number<br />
of privatisations. The mining sec<strong>to</strong>r has seven Socially<br />
Owned Enterprises (SOEs) that will be presented for<br />
privatisation. The Ferronikel Company, which s<strong>to</strong>pped<br />
mining as a consequence of conflict in the area,<br />
provides a highly profitable opportunity for investment.<br />
The ferronickel reserves are significant and the mine is<br />
connected <strong>to</strong> the railway giving good access <strong>to</strong> import<br />
additional ore concentrates through Thessaloniki port<br />
and Albania. It also provides good opportunities for<br />
export and employment generation.<br />
The country is therefore well placed <strong>to</strong> position itself as<br />
a leading producer and exporter of minerals and metals<br />
for the whole region. Beyond lignite, which will play a<br />
vital role in powering the local energy market, Kosovo can<br />
draw on its substantial reserves of base metals which are<br />
continuing <strong>to</strong> command significant prices on the interna-<br />
tional market. Therefore, the government is confident of<br />
building effective synergies with the private sec<strong>to</strong>r which<br />
will benefit the country and inves<strong>to</strong>rs alike.<br />
58
KOSOVO<br />
Energy & Mining<br />
Lydian International<br />
Mineral Exploration and Development<br />
Group Confident About Kosovo<br />
Lydian International is a British<br />
Exploration and Development<br />
Company listed on the Toron<strong>to</strong> S<strong>to</strong>ck<br />
Exchange. Lydian is confident about<br />
prospects in Kosovo, where it’s wholly<br />
owned subsidiary Kosovo Resource<br />
Company (KRC) has an advanced<br />
zinc, lead, silver exploration project<br />
in Drazhnje, as well as exploration<br />
projects in Crepulje and Rahovec.<br />
Tim Coughlin, CEO, says that<br />
KRC now accounts for around<br />
35% of Lydian’s project budget,<br />
with the remainder devoted <strong>to</strong><br />
Lydian’s exploration initiative<br />
in Armenia. KRC’s operation in<br />
Drazhnje should begin commercial<br />
production in 2011. “Once you<br />
advance a project like this <strong>to</strong> the<br />
point at which it is feasible and<br />
bankable, which requires a lot of<br />
exploration work, you then move<br />
<strong>to</strong> debt financing and construction<br />
can begin. All our projects in<br />
Kosovo are relatively early stage yet<br />
Tim Coughlin, CEO<br />
Workers from Lydian’s local mining contrac<strong>to</strong>r<br />
S<strong>to</strong>ne International underground at Drazhnje.<br />
interesting for our inves<strong>to</strong>rs since<br />
they show real potential for growth,”<br />
he says.<br />
Coughlin adds that while global metal<br />
prices are always a major concern for<br />
any mining company, Lydian has no<br />
worries about operating in Kosovo.<br />
“Kosovo’s mining laws are already<br />
international standard and there is<br />
significant regula<strong>to</strong>ry emphasis on<br />
protecting the environment and<br />
engaging local communities. In this<br />
sense our operations benefit from<br />
constant review by specialists from the<br />
International Finance Corporation<br />
which is part of the World Bank<br />
Group and one of Lydian’s largest<br />
shareholders,” he explains.<br />
“First mover” advantage<br />
As a potential investment target,<br />
Lydian offers a number of competitive<br />
advantages. “Lydian is the only international<br />
exploration company<br />
currently developing resources in<br />
Kosovo. We are benefitting from<br />
our “early bird” exploration strategy<br />
in developing the best projects and<br />
securing the best people. We are<br />
most proud of our team in Kosovo,”<br />
Coughlin points out.<br />
Branding Kosovo is an important<br />
goal for Lydian, which has quickly<br />
built up its own reputation as a<br />
“first mover” in emerging and transitional<br />
markets. “We try <strong>to</strong> sell<br />
Kosovo everywhere we go in order<br />
<strong>to</strong> attract inves<strong>to</strong>rs and make clear<br />
that this country is on the path <strong>to</strong><br />
European Union accession, that<br />
it is a good place <strong>to</strong> live and work,<br />
and that its mining laws are some of<br />
the best inves<strong>to</strong>rs can hope <strong>to</strong> work<br />
under,” Coughlin says.<br />
Urging European inves<strong>to</strong>rs <strong>to</strong> explore<br />
opportunities in Kosovo, Coughlin<br />
concludes, “When we came here in<br />
2006 there was some risk, but now<br />
the government is very committed <strong>to</strong><br />
supporting foreign direct investment,<br />
and the local workforce is well trained,<br />
enthusiastic and committed. We <strong>to</strong>ok a<br />
bet that in Kosovo everything would be<br />
okay, and it has been. Now we are in a<br />
great position. Lydian is here <strong>to</strong> stay.”<br />
Lydian International Ltd.<br />
Bajram Kelmendi 15 Prishtina,<br />
10000 Kosovo<br />
Tel.: +381 38 249 990<br />
Fax: +381 38 248 518<br />
www.lydianinternational.co.uk<br />
59
• Going Green: The Ministry Talks About How the Environment Can Help Business<br />
• Infrastructure and Housing Requirements Are Driving the Sec<strong>to</strong>r Forward<br />
Environment & Spatial Planning<br />
“All our companies do good work<br />
regardless of their size. Each<br />
company in every segment helps<br />
<strong>to</strong> increase the development of the<br />
sec<strong>to</strong>r because all companies work<br />
in a timely manner striving for<br />
quality, efficiency and excellence.”<br />
Mahir Yagcilar, Minister of Environment and Spatial Planning
KOSOVO<br />
Environment & Spatial Planning<br />
Regional Water Company-Prishtina<br />
Water Company Offers<br />
Outstanding Investment Potential<br />
The Regional Water Company-Prishtina<br />
(KUR-Prishtina) is one of Kosovo’s<br />
post war success s<strong>to</strong>ries. As CEO<br />
Skender Bublaku explains, Kosovo<br />
had around 30 water companies before<br />
the war which served around 40%<br />
of the population. Today, thanks <strong>to</strong><br />
a consolidation campaign between<br />
2002 and 2007, seven regional<br />
water companies handle distribution<br />
of water throughout the country. In<br />
addition, these water companies have<br />
been upgraded <strong>to</strong> meet EU standards.<br />
KUR-Prishtina is now valued at some<br />
€80 million and covers its expenses<br />
with its own revenues. It has doubled<br />
the number of its cus<strong>to</strong>mers since 1999<br />
and now serves 550,000.<br />
Kosovo’s successful model for<br />
water distribution is now being<br />
implemented by neighbouring<br />
countries. “Even though we need a<br />
lot of investments in the water distribution<br />
field, what we have already<br />
achieved is quite an impressive<br />
result. We now serve around 75% of<br />
the population,” Skender Bublaku<br />
points out. Individual wells and<br />
other private water resources supply<br />
the remainder of the population,<br />
but KUR-Prishtina aims <strong>to</strong> serve<br />
the entire population in the near<br />
future.<br />
Privatisation of water distribution<br />
is now allowed by law but the<br />
government has not yet announced<br />
Skender Bublaku, CEO<br />
its plans for the sec<strong>to</strong>r. “Getting the<br />
legislation <strong>to</strong> allow for privatisation<br />
was the initial step in the process,”<br />
Skender Bublaku says, noting that<br />
the government is likely <strong>to</strong> retain a<br />
majority share in the water distribution<br />
sec<strong>to</strong>r but will allow for increased<br />
participation by the private sec<strong>to</strong>r.<br />
The waste treatment sec<strong>to</strong>r, on<br />
the other hand, is likely <strong>to</strong> be fully<br />
privatised. Foreign companies and<br />
inves<strong>to</strong>rs will find significant opportunities<br />
in both sec<strong>to</strong>rs as Kosovo’s<br />
economy expands. Skender Bublaku<br />
explains that private investment<br />
will be needed <strong>to</strong> build a new waste<br />
treatment facility, and another<br />
opportunity for foreign inves<strong>to</strong>rs is<br />
<strong>to</strong> provide drinking water through<br />
operating the existing network and<br />
collecting fees, following the system<br />
currently employed in electricity<br />
distribution.<br />
Providing outsourced services<br />
concerning water distribution and<br />
waste treatment is another avenue for<br />
foreign inves<strong>to</strong>rs. Skender Bublaku<br />
says, “Here at KUR-Prishtina, we<br />
support the entry of the private<br />
sec<strong>to</strong>r in all activities, and Kosovo’s<br />
new law on public-private partnerships<br />
creates an ideal opportunity<br />
for foreign inves<strong>to</strong>rs.”<br />
KUR-Prishtina offers outstanding<br />
investment potential not only<br />
because of the opportunities in<br />
Kosovo’s water sec<strong>to</strong>r but also<br />
because of the company’s successful<br />
reconstruction, sound financial<br />
status and strong track record. To<br />
potential inves<strong>to</strong>rs, Skender Bublaku<br />
says, “Do not hesitate <strong>to</strong> contact us!<br />
Kosovo is a country where you can<br />
make a profit!”<br />
Regional Water Company J.S.C.<br />
rr Tahir Zajmi p.n.<br />
Prishtina<br />
KOSOVO<br />
Tel.: +381 38 541 211/129<br />
Fax: +381 38 541 437<br />
www.kur-prishtina.com<br />
61
KOSOVO<br />
Environment & Spatial Planning<br />
Ministry of Environment and Spatial Planning<br />
Going Green: The Ministry Talks<br />
Help Business<br />
The Ministry of Environment and Spatial<br />
Planning is at the forefront of Kosovo’s ambition<br />
<strong>to</strong> encourage sympathetic and sustainable<br />
development. The work of the ministry <strong>to</strong>uches on<br />
several sec<strong>to</strong>rs such as energy and construction<br />
ensuring modern transparent regulations. The<br />
Minister of Environment and Spatial Planning,<br />
Mahir Yagcilar, <strong>to</strong>ok time <strong>to</strong> speak <strong>to</strong> ET about<br />
the synergies between environmental policy and<br />
economic development.<br />
Mahir Yagcilar, Minister of Environment and Spatial Planning<br />
ET: How important is the development of the construction<br />
sec<strong>to</strong>r for Kosovo’s economy<br />
M. Yagcilar: In every country it is important<br />
especially in a post-conflict situation. In recovering<br />
from the conflict, we need <strong>to</strong> be efficient in every<br />
area. Therefore, quality in construction safety and<br />
efficiency in terms of energy and proper insulation<br />
is what helps economic development. Good infrastructure<br />
can also assist economic development in<br />
other aspects.<br />
ET: Which particular developments have been<br />
significant since the declaration of independence<br />
M. Yagcilar: Firstly, the legal infrastructure was put in<br />
place and transparent competition in the tendering<br />
process for foreign companies was established. In<br />
the construction sec<strong>to</strong>r, government licenses were<br />
issued more easily.<br />
62
KOSOVO<br />
Environment & Spatial Planning<br />
About How the Environment Can<br />
ET: What role specifically can foreign inves<strong>to</strong>rs<br />
play in the development of Kosovo’s construction<br />
sec<strong>to</strong>r<br />
M. Yagcilar: They can play an important role because<br />
we have not remained up <strong>to</strong> date with other European<br />
construction developments especially in the energy<br />
sec<strong>to</strong>r. Even now there is a need for experience,<br />
technology and large projects such as power plant<br />
construction and highways.<br />
ET: Does the Ministry of Environment and Spatial<br />
Planning issue tenders<br />
M. Yagcilar: We are not involved with any specific<br />
project as much as we are involved with environmental<br />
issues. For example, we are involved in issuing<br />
environmental permits for construction. We do,<br />
however, specifically invest in projects for social<br />
housing but these are not large projects.<br />
ET: So <strong>to</strong> what extent do environmental policies<br />
influence the development of Kosovo’s construction<br />
sec<strong>to</strong>r<br />
M. Yagcilar: It is similar <strong>to</strong> other countries. For<br />
example, in terms of constructing a power plant, we<br />
must do everything possible <strong>to</strong> keep pollution below<br />
the allowed level. We must also look at how construction<br />
can impact wildlife habitats. So rather than<br />
just invest in construction and development, we try<br />
<strong>to</strong> make things balanced, not <strong>to</strong> inhibit economic<br />
development, but <strong>to</strong> keep both air and water<br />
pollution in check. Of course, development must be<br />
economic and cost effective. The environment can<br />
help in this regard with energy savings for example.<br />
ET: How can European inves<strong>to</strong>rs help you achieve your<br />
goals of being cost efficient while working within these<br />
guidelines<br />
M. Yagcilar: Well, they have the technology which<br />
we need here and which would provide opportunities<br />
for <strong>Kosova</strong>r subcontrac<strong>to</strong>rs. At the same time,<br />
we know we have a very young population which is<br />
capable and which should learn <strong>to</strong> develop and use<br />
this technology.<br />
ET: People may still have a negative image of Kosovo<br />
with regard <strong>to</strong> corruption and instability. From the<br />
perspective of your ministry, why should Europeans<br />
choose Kosovo as a business destination<br />
M. Yagcilar: Well, corruption and associated<br />
problems are not specific <strong>to</strong> Kosovo. They happen<br />
in all post-conflict countries but our duty is <strong>to</strong> make<br />
the government functional and attractive for the<br />
inves<strong>to</strong>rs. If we achieve this, it promises a good<br />
future. There will be growth opportunities for<br />
companies and sec<strong>to</strong>rs and we will see larger projects<br />
and more competition. This will add quality <strong>to</strong> the<br />
sec<strong>to</strong>r and will create the general impression that<br />
corruption has dissipated. Obviously we are a small<br />
country but we have our natural resources and also<br />
our human resources. At the same time, it is also a<br />
strategic place next <strong>to</strong> Montenegro and Albania and<br />
we have easy access <strong>to</strong> all the surrounding countries.<br />
If you combine these aspects, Kosovo could become<br />
an attractive proposition.<br />
ET: Who would you see as the most successful business<br />
ambassadors within the construction sec<strong>to</strong>r<br />
M. Yagcilar: All our companies do good work<br />
regardless of their size. Each company in every<br />
segment helps <strong>to</strong> increase the development of the<br />
sec<strong>to</strong>r because all companies work in a timely manner<br />
striving for quality, efficiency and excellence.<br />
.<br />
ET: What is your personal message <strong>to</strong> our readers<br />
M. Yagcilar: I think that Kosovo, because of its natural<br />
and human resources, can offer a lot <strong>to</strong> inves<strong>to</strong>rs.<br />
The establishment of stability also helps in this<br />
regard. Kosovo is at the centre of the Balkans and<br />
the surrounding countries need <strong>to</strong> have a balance of<br />
economic, social and political development. So we<br />
invite inves<strong>to</strong>rs <strong>to</strong> come <strong>to</strong> Kosovo.<br />
63
KOSOVO<br />
Environment & Spatial Planning<br />
Infrastructure and Housing<br />
the Sec<strong>to</strong>r Forward<br />
The construction sec<strong>to</strong>r has been a crucial component<br />
of Kosovo’s rehabilitation with millions of Euros being<br />
funnelled in<strong>to</strong> this sec<strong>to</strong>r. According <strong>to</strong> the Kosovo<br />
Chamber of Commerce and Industry, the sec<strong>to</strong>r accounted<br />
for approximately 7% of the country’s economic output<br />
in 2006. However, much remains <strong>to</strong> be done. The<br />
Ministry of Trade and Industry predicts that 60,000<br />
new apartments will be needed over the coming years.<br />
This in itself will create extra investment opportunities<br />
in the construction of infrastructure and associated<br />
social, retail and commercial units.<br />
Beyond this contrac<strong>to</strong>rs and developers alike will be<br />
able <strong>to</strong> benefit from Kosovo’s wider infrastructural<br />
requirements. Indeed, the government has particularly<br />
earmarked the country’s road and highway network for<br />
a major upgrade. The Ministry of Transport and Telecommunications<br />
predicted in 2006 that the country<br />
would need an annual investment of €48 million for<br />
the rehabilitation and maintenance of roads and<br />
bridges which will provide significant opportunities<br />
for private inves<strong>to</strong>rs. The priorities lie in the transport<br />
corridors that plug in<strong>to</strong> the wider European network<br />
with the most prominent being the Merdare – Kukes –<br />
Durres highway that will become part of the European<br />
transport corridor X connecting Western Europe <strong>to</strong><br />
the Adriatic. With the government also earmarking<br />
the energy sec<strong>to</strong>r for investment, with power plant<br />
construction and the associated infrastructure being a<br />
particular focus, there will be plenty of opportunities<br />
for contrac<strong>to</strong>rs.<br />
These projects will be financed through foreign<br />
investment on a public private partnership (PPP) basis.<br />
The government has been laying the legal foundations<br />
for these agreements with a law on concessions being<br />
drafted in 2008. The government is also working hard<br />
<strong>to</strong> create the framework <strong>to</strong> professionalize the construction<br />
industry in other respects. According <strong>to</strong> the<br />
Direc<strong>to</strong>r of Kosovo’s Construction Department, Naim<br />
Mahmutaj, “From the beginning, the Department of<br />
Construction which was established in June 2004, has<br />
made efforts <strong>to</strong> begin with a legal base in conformity<br />
with the European Union’s requests.” One aspect of this<br />
is the plan <strong>to</strong> establish a conformity assessment body<br />
that will make sure <strong>Kosova</strong>r construction materials and<br />
products meet the guidelines set out by the EU.<br />
However, the industry has already come along way. The<br />
country already has a burgeoning building materials<br />
industry. It is estimated that Kosovo has approximately<br />
70 ready mix concrete plants ranging in size and product<br />
delivery. The cement industry has also established an<br />
umbrella organisation for cement related industries<br />
called the Kosovo Association of Concrete Producers<br />
(KACP). The Association will help raise the quality of<br />
concrete-related materials and bring them in<strong>to</strong> line with<br />
EU standards as well as playing a role in overseeing the<br />
design and building of bridges and buildings <strong>to</strong><br />
ensure international<br />
standards.<br />
The country also<br />
has a significant<br />
number of<br />
wood and plastic<br />
producers that<br />
cover domestic<br />
demand with a<br />
nascent export<br />
business starting<br />
in the fields of<br />
wood products<br />
and thermo-insulation<br />
products.<br />
With Kosovo’s<br />
significant wealth<br />
in forests, the<br />
wood processing<br />
industry in<br />
particular is<br />
set <strong>to</strong> become<br />
valuable for the construction<br />
industry. The country currently allows<br />
64
KOSOVO<br />
Environment & Spatial Planning<br />
Requirements Are Driving<br />
almost 1 million m3 of felling and the annual value of<br />
<strong>Kosova</strong>r wood products <strong>to</strong>uches €50-75 million. The<br />
industry is thus capable of providing employment for<br />
10% of the population.<br />
The government is also working in conjunction with the<br />
private sec<strong>to</strong>r and non-governmental bodies through its<br />
plans for a Construction Institute that will deal with certification,<br />
testing and inspection of materials. “The testing<br />
labora<strong>to</strong>ries as well as the inspection and certification<br />
bodies will be accredited.<br />
The producers will<br />
obey the requests<br />
for conformity<br />
assessment and a<br />
large portion of<br />
construction<br />
products will enter the market with the conformity seal<br />
(KC- Kosovo Conformity, identical <strong>to</strong> the EC- European<br />
Conformity),” asserts Mahmutaj. It is estimated that<br />
such a facility would cost approximately €2.1million <strong>to</strong><br />
establish.<br />
The steel industry in the country is also being rebuilt.<br />
In 2005, Kremikovtsi, Bulgaria’s largest steel mill paid<br />
€4.15 million for Kosovo’s Llamkos steel galvanising<br />
plant with plans <strong>to</strong> invest €15 million <strong>to</strong> upgrade the<br />
plant. Llamkos, which has an annual capacity of 150,000<br />
<strong>to</strong>nnes, had lain dormant since 2001. The Kosovo Trust<br />
Agency also lined up the €2.3 million sale of the local<br />
steel manufacturer, Fan, which has a production capacity<br />
of 20,000 <strong>to</strong>nnes annually.<br />
The construction industry is therefore well placed.<br />
As the government concentrates on both the<br />
residential demands of the country and the<br />
infrastructural requirements running from<br />
energy <strong>to</strong> roads, the investment opportunities<br />
for the private sec<strong>to</strong>r are substantial.<br />
Indeed, with a cheap labour force and<br />
a burgeoning building materials<br />
industry, the prospects for future<br />
growth in the sec<strong>to</strong>r are strong.<br />
65
KOSOVO<br />
Environment & Spatial Planning<br />
Dukagjini Group<br />
Building Tomorrow’s Kosovo<br />
Dukagjini Construction, a division of the dynamic<br />
Dukagjini Group, is a recognized leader in Kosovo’s fast<br />
growing construction sec<strong>to</strong>r. The company has already<br />
completed major projects, including residential developments,<br />
and it has been chosen <strong>to</strong> build Kosovo’s World<br />
Trade Centre, which will cover 80,000 square meters and<br />
is set <strong>to</strong> be completed over the next two <strong>to</strong> three years.<br />
Mr. Gëzim Gjikolli, WTC Manager, says that the major<br />
World Trade Centre project welcomes European<br />
partners and inves<strong>to</strong>rs. “Slovenian companies are<br />
already involved in the project, but we are open <strong>to</strong><br />
other European inves<strong>to</strong>rs. This is a unique project for<br />
the Balkan region and will earn very significant profits<br />
for inves<strong>to</strong>rs,” he says.<br />
Dukagjini seeks partners which can help the group<br />
achieve its long term goals. Mr. Agron Sallova, Chief of<br />
Construction Division in Dukagjini Group, explains, “We<br />
are looking for partners that can complement our services<br />
and products in every area of our operations with regards<br />
<strong>to</strong> technology and know-how, and more importantly<br />
partners who can provide access <strong>to</strong> new markets.”<br />
Exceptional investment potential<br />
Dukagjini Construction adheres <strong>to</strong> the highest<br />
European and international standards in all its projects<br />
and employs highly skilled engineers and other professionals<br />
as well as an ambitious management team. The<br />
company also benefits from its membership in the fast<br />
growing Dukagjini Group, which is known for its high<br />
quality services as well as for its corporate citizenship.<br />
For example, Dukagjini is sponsoring a scholarship<br />
programme with American Councils <strong>to</strong> allow promising<br />
<strong>Kosova</strong>rs <strong>to</strong> study for master’s diplomas in US universities.<br />
“Dukagjini’s commitment <strong>to</strong> Kosovo’s future is<br />
strong, and its generosity in supporting our scholarship<br />
programme is a model of philanthropic leadership,<br />
both in the US and in Kosovo,” says Dan E. Davidson,<br />
president of American Councils.<br />
Kosovo’s construction sec<strong>to</strong>r in general has outstanding<br />
growth potential, according <strong>to</strong> Mr. Agron Sallova, who<br />
says, “There will be significant construction of residential<br />
buildings and highways during the next year and beyond.<br />
In fact, the construction sec<strong>to</strong>r will be the target of more<br />
investment than any other sec<strong>to</strong>r in Kosovo.” Dukagjini<br />
Construction has positioned itself <strong>to</strong> grow rapidly along<br />
with the country’s construction industry.<br />
Mr. Gëzim Gjikolli points out that now is the time for<br />
international inves<strong>to</strong>rs <strong>to</strong> target Kosovo. He says, “The<br />
business environment is favourable for foreign companies<br />
and Kosovo is regulated properly. Foreign companies<br />
should partner with a local company <strong>to</strong> best benefit from<br />
the opportunities here. I say <strong>to</strong> potential inves<strong>to</strong>rs, Kosovo<br />
is developing very rapidly. Do you want <strong>to</strong> be part of it”<br />
Agron Sallova – architect<br />
CEO / Design<br />
Construction & Engineering Division Dukagjini Group<br />
“Ismajl Qemajli”Str., No.2 – Pejë / Republic of <strong>Kosova</strong><br />
Tel: +381 39 432 025, mob.: + 386 49 750 302<br />
Fax: +381 39 432 025<br />
agron.sallova@dukagjinigroup.com<br />
www.dukagjinigroup.com<br />
66
• The Industry Has Several Strings <strong>to</strong> Its Bow Pointing the Way <strong>to</strong> an Effervescent Future<br />
Tourism
KOSOVO<br />
Tourism<br />
The Industry Has Several Strings<br />
Effervescent Future<br />
Kosovo might not be the first name on the lips of<br />
<strong>to</strong>urists and those with the travel bug but that might<br />
all be about <strong>to</strong> change as the rewards of stability<br />
brought about by the country’s declaration of independence<br />
has given the authorities the chance <strong>to</strong> put<br />
this impressive corner of the continent firmly on the<br />
European <strong>to</strong>urist map. Indeed, with a diverse range<br />
of sights of natural beauty and interesting activities,<br />
Kosovo has much <strong>to</strong> recommend it.<br />
Kosovo has inherited both a rich diversity of natural<br />
beauty and a physical residue built up over time as<br />
different cultures and traditions have come <strong>to</strong> settle<br />
in this area. The cultural legacy of the land is indeed<br />
impressive. From the Christian heritage of frescoed<br />
monasteries which have been home <strong>to</strong> the Serbian<br />
orthodox patriarchy <strong>to</strong> the imposing mosques of<br />
Prizren, the country has something <strong>to</strong> sate the<br />
appetite of even the most voracious cultural <strong>to</strong>urist.<br />
The Republic of Kosovo also has a rich natural<br />
heritage. The country can count on the Rugova<br />
canyons near Peja in the west of the country, the<br />
Mirusha waterfalls also in the west, the Gadime caves<br />
in the central plateau, the White River spring, thermal<br />
springs, and abundant flora and fauna <strong>to</strong> attract<br />
casual nature lovers. Such a verdant landscape also<br />
provides a fertile habitat for a wide range of wildlife.<br />
Tourists in the country regularly come across boars,<br />
deer, quails, pheasants, the fulvous (brown) bear,<br />
wolves and foxes.<br />
Newly independent Kosovo also sits in a bowl ringed<br />
by a series of dramatic mountain ranges from the<br />
sombre and melancholy Sharr in the South <strong>to</strong> the<br />
68
KOSOVO<br />
Tourism<br />
<strong>to</strong> Its Bow Pointing the Way <strong>to</strong> an<br />
forbidding ‘Accursed Mountains’<br />
in the west. This dramatic landscape<br />
has also presented the opportunity<br />
for the <strong>Kosova</strong>r authorities <strong>to</strong><br />
further develop its activity-based<br />
<strong>to</strong>urism. The country is a haven<br />
for hikers and is working hard <strong>to</strong><br />
build up its nascent ski industry.<br />
The centre of skiing in Kosovo<br />
is currently situated at Brezovica<br />
in the South of the country near<br />
Prizren. The Department of<br />
Tourism is not only planning <strong>to</strong><br />
expand the quality and infrastructure<br />
of the Brezovica resort but<br />
also roll out other winter resorts in<br />
other parts of the country. While<br />
Brezovica may need €50 million <strong>to</strong><br />
turn it in<strong>to</strong> a thriving resort it can<br />
take heart from the experience<br />
of Bansko in Bulgaria which went<br />
through a rapid transformation<br />
and now attracts 150,000 British<br />
<strong>to</strong>urists annually.<br />
However, according <strong>to</strong> Bujar Kuqi,<br />
the Direc<strong>to</strong>r of the Department of<br />
Tourism, the immediate concern<br />
of the government is <strong>to</strong> improve<br />
the general infrastructure for<br />
<strong>to</strong>urists in the country. “We are<br />
focused on repairing the infrastructure<br />
needed for <strong>to</strong>urism,<br />
which will allow the full utilisation<br />
of our <strong>to</strong>urism potential which<br />
until now has not been realised<br />
because of the service level of<br />
<strong>to</strong>urism development,” says Kuqi.<br />
With three Balkan countries<br />
ranking in the <strong>to</strong>p ten countries<br />
in the world for projected 10 year<br />
<strong>to</strong>urist growth according <strong>to</strong> the<br />
World Travel and Tourism Council,<br />
Kosovo can take heart. Initial steps<br />
have already been taken <strong>to</strong> improve<br />
the country’s <strong>to</strong>urism infrastructure.<br />
The ease of visiting Kosovo is<br />
immediately apparent with short<br />
travel times from Western Europe<br />
and no visa requirements. The<br />
government has also already been<br />
working on improving the quality<br />
and quantity of accommodation <strong>to</strong><br />
meet the expected increase in the<br />
number of <strong>to</strong>urists. This will also<br />
allow for niche <strong>to</strong>urist sec<strong>to</strong>rs such<br />
as Meetings Incentives Conference<br />
and Exhibition (MICE) <strong>to</strong>urists.<br />
However, in order <strong>to</strong> achieve<br />
this goal, the authorities have<br />
recognised the need <strong>to</strong> implement<br />
a set of standards and benchmarks<br />
<strong>to</strong> maintain the quality of the<br />
sec<strong>to</strong>r. This will require a rigorous<br />
licensing system that assures the<br />
highest standards of accommodation,<br />
infrastructure and service.<br />
The authorities are also<br />
working hard <strong>to</strong> put <strong>to</strong>gether<br />
a promotional strategy for the<br />
country. According <strong>to</strong> Kuqi, “We<br />
are in close cooperation with other<br />
institutions in Kosovo in order <strong>to</strong><br />
create a greater image of Kosovo,<br />
presenting it as a secure place for<br />
<strong>to</strong>urism, as a new country, as a<br />
place that has enough capacity for<br />
visi<strong>to</strong>rs and <strong>to</strong> finally eliminate the<br />
image that Kosovo has had until<br />
now as a conflict area.”<br />
The country is therefore moving<br />
in the right direction and with<br />
such latent potential the country<br />
could soon be mentioned in the<br />
same breath as more prominent<br />
Balkan <strong>to</strong>urism destinations<br />
such as Croatia, Montenegro<br />
and Bulgaria. With clear and<br />
transparent planning, the<br />
government is well placed <strong>to</strong> lure<br />
many more European <strong>to</strong>urists<br />
looking for a change of scene and<br />
a diverse range of activities and<br />
sights over the coming years.<br />
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KOSOVO<br />
Tourism<br />
Eurokoha Reisen<br />
Top Quality Travel Services<br />
Eurokoha Reisen, founded in Prishtina in 1995, has<br />
grown <strong>to</strong> become one of Kosovo’s leading companies and<br />
a driving force behind the country’s efforts <strong>to</strong> build a<br />
thriving <strong>to</strong>urism sec<strong>to</strong>r.<br />
A shareholder of Hamburg International, Eurokoha<br />
has opened two offices in Prishtina and branches in<br />
Stuttgart, Munich, Dusseldorf, Hamburg, Hanover,<br />
Zurich and Geneva in addition <strong>to</strong> its main office in<br />
Frankfurt. Eurokoha has 41 highly trained employees<br />
in Kosovo.<br />
Eurokoha operates according <strong>to</strong> the highest international<br />
standards and is a member of the International<br />
Air Transport Association. Its certified travel agents<br />
employ the Amadeus system and the Go Global Travel<br />
international system <strong>to</strong> make travel arrangements,<br />
including hotel and au<strong>to</strong> hire reservations, for its clients<br />
all over the globe. Eurokoha’s on-line booking system<br />
is used by more than 300 contracted travel agencies,<br />
which enables Eurokoha <strong>to</strong> provide the best possible<br />
travel options for its clients.<br />
Prishtina Airport now welcomes around one million<br />
passengers per year, and 30% of these travellers are<br />
Eurokoha’s clients. The company is known for offering<br />
tailored solutions and for finding the least expensive<br />
and most convenient travel routes. Eurokoha regularly<br />
provides travel arrangements for Kosovo’s President,<br />
Prime Minister, members of parliament, cabinet<br />
members and their staffs and other prominent organisations.<br />
Eurokoha is also Kosovo’s leading company<br />
in providing holiday packages <strong>to</strong> Turkey, Albania and<br />
Egypt.<br />
After many years of hard work and continuous<br />
exploration of Kosovo’s travel market, Eurokoha<br />
created Kosovo’s first national airline, <strong>Kosova</strong> <strong>Airlines</strong>,<br />
in 2003. The airline, working in partnership with leading<br />
airlines in the US and Europe, now flies <strong>to</strong> destinations<br />
throughout Europe and beyond, and has been seeing a<br />
steady rise in passenger numbers from 172,700 in 2003<br />
<strong>to</strong> 317,711 last year.<br />
Its partners include ATA <strong>Airlines</strong> (New York), Hello (Zurich,<br />
Geneva), Edelweiss (Zurich,Geneva), LTU International<br />
(Düsseldorf, Stuttgart), Germanwings (Cologne/Bonn,<br />
Hamburg, Stuttgart), Hamburg International (Munich), Air<br />
Berlin (Munich, Stuttgart, Düsseldorf, Hamburg, Frankfurt,<br />
Hanover, EuroAirport Basel-Mulhouse-Freiburg), Atlasjet<br />
(Antalya, Istanbul-Atatürk), and SunExpress (Antalya).<br />
It also has co-operative agreements with Austrian <strong>Airlines</strong>,<br />
Air Berlin, Lufthansa, Adria Airways, British Airways,<br />
Malev, Turkish <strong>Airlines</strong>, Macedonian <strong>Airlines</strong>, MNG, Swiss<br />
Air, United <strong>Airlines</strong>, American <strong>Airlines</strong>, Delta <strong>Airlines</strong>,<br />
Continental <strong>Airlines</strong>, Al Italia and many more.<br />
Eurokoha’s flights provide quick links <strong>to</strong> and from<br />
Pristina and destinations throughout Europe, including<br />
Hamburg, Hanover, Frankfurt, Stuttgart, Munich, Köln,<br />
Düsseldorf, Zurich and Geneva. For EU inves<strong>to</strong>rs and<br />
travellers who wish <strong>to</strong> visit Kosovo, Eurokoha and <strong>Kosova</strong><br />
<strong>Airlines</strong> are the right choice.<br />
Eurokoha Reisen<br />
Vellusha e Poshtme 17 - 10 000 Prishtina, Kosovo<br />
Tel.: +381 38 245 998 - +381 38 243 482<br />
Fax.: +381 38 249186 - www.eurokoha.net<br />
70
With special<br />
thanks <strong>to</strong>:
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<strong>to</strong><br />
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Ly<br />
dian International through its local subsidiary, Kosovo Resource<br />
Company, is a proud partner in the economic redevelopment of Kosovo.<br />
Ly<br />
dian International is a diversified British based mineral exploration company with expertise employing “first mover”<br />
strategies in emerging environments. The company is currently focused on Eastern Europe with 3 projects in Kosovo<br />
including a flagship Lead-Zinc project, plus a flagship Gold project in Armenia.<br />
For more information go <strong>to</strong> www.lydianinternational.co.uk.<br />
72<br />
Lydian International is listed on the Toron<strong>to</strong> S<strong>to</strong>ck Exchange (TSX) under the symbol LYD.