Kosova Airlines Seeking Partners to Achieve Ambitious Growth Plans

KOSOVO
Environment & Spatial Planning
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