Sun02052012

Last update02:54:17 PM GMT

Business and Economy

North Remains Source of Illegal Economy

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Mitrovica

The North of Kosovo continues to be the main source of illegal economic activities, Radio Free Europe reports.

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Ministry of Economy and Finance Tightens Customs

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Customs

According to Kosovo Daily Zeri, Kosovo's Ministry of Economy and Finance (MEF) has increased its revenue plan for customs points around Kosovo, aiming to cover outgoing primer minister Hashim Thaci's earlier decision to increase salaries of civil servants by 50 percent .

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Parliament adopts the Kosovo Telecom privatization plan

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ImageThe Parliament of the Republic of Kosovo adopted the strategy prepared by the Government of Kosovo to privatize 75% of the shares of Post and Telecom of Kosovo.

Kosovar Prime Minister Hashim Thaci said that the strategy for privatization of PTK is part of the reforms in the economy.

With the privatization of 75 percent of the shares in PTK, according to Thaci, Kosovo will liberalize its telecom market and will offer lower prices and better service for its citizens.

PTK is the most profitable company in Kosovo, with over 1 million mobile phone customers.

Technology: Kosovo aims to become 'India of Europe'

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ImageKosovo, the young Balkans nation, is on the right path to become "India of Europe" in terms of information technology development and customer service call center for Europe, especially the German speaking states.

In Kosovo, currently are operating 28 companies as call centers, while the trend of opening of these businesses is growing. In these companies have over 600 employees, whose average age ranges 18-25 years.

These companies provide services to the field of Telemarketing, customer service, billing and account maintenance and technical support.

Vjollca Cavolli, executive director of the Association for Information and Communication Technologies in Kosovo said that Kosovo has the potential and capacity to provide services to call for European countries, in particular the German states.

The number of Kosovars who speak the German language is the highest in the Balkans.

Kosovo: PRN Airport to expand under new operator

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ImageThe Government of the Republic of Kosovo say a French-Turkish consortium Limak-Aeroport de Lyon has won the bidding for a $126 million (euro100 million) contract to run Kosovo's only commercial airport for the next 20 years, Prishtina International Airport (PRN).

Under the deal Limak-Aeroport de Lyon will also add a new passenger terminal at Prishtina International Airport.

Selection was made known during a public ceremony broadcast on television, which has become the opening of proposals submitted by pre-qualified bidders.

"Limak-Aerport de Lyon" was given the contract because the Government has provided an average of 39.42%% of gross revenues, in exchange for concession rights. IC Frapport Havamanli ICTAS, the bidder that has occupied the second place, has proposed an average of 30.37% of gross revenues.

From "Limak Holding" and "Aeroprot de Lyon" will be required to modernize and expand the Prishtina International Airport, investing over 100 million in new infrastructure, including construction of new terminal building. From the next concessionaire will also be required to operate the airport to offer enhanced services and increased levels of quality. The Republic of Kosovo will retain 100% ownership of airport assets.

This is the first successful attempt of Kosovo to attract long-term strategic investments in infrastructure and public services, and the process is publicly announced as a major achievement and as a vote of confidence for the country's government and legal system. It is also considered as a key confirmation of the country's efforts towards establishing a multi-sectoral program of public-private partnerships.

The Procurement process, which has enabled the award of this contract is praiseworthy in the country as well as internationally for its transparency and professional management. The project is managed by the Inter-Ministerial Steering Committee Project, composed of six cabinet ministers. The process is undertaken with the strategic assistance of the U.S. Agency International Development and its implementing partner, Deloitte Consulting, LLP. NACO (Netherlands Airport Consultants), Innova Aviation Consulting and legal firm White and Case from the U.S. have served as advisors to the transaction.

To add transparency to the maximum, the proposed prices were kept in a safe with a key double in the Ministry of Economy and Finance, that the submission of bids on April 28, where one of the keys is kept outside of the Transaction Advisor.Bids were opened and read aloud the prices are under full view of the public and the press.

Prime Minister Hashim Thaci, the process praised for its transparency, stressing that "The Government is steadfast in its commitment to attracting private investment through open and competitive procedures.

Fatmir Limaj, Minister of Transport and Communications and Chairman of the Inter-ministerial Steering Committee of the project stated that "all decisions regarding the award process are taken from an assessment committee consisting of independent legal experts, financial and technical, as and local officials from various ministries.

Before taking over the operations of PRN, as well as government "Limak Aerport de Lyon" will be required to meet a number of legal and technical requirements, including the transfer of existing employees of PRN's new operator. This is expected to last at least six months.

Besides a vital component of transport infrastructure in Kosovo, Prishtina International Airport is one of the busiest airports to work in the Balkans, serving over 1.2 million passengers last year. In recent years, the airport has recorded a growth rate over average passenger traffic.


Anna Wiman

Anna Wiman
Freelance Writer and photographer

Elizabeth Gowing

Elizabeth Gowing
Co-Founder at The Ideas Partnership NGO

Henry H. Perritt Jr.

Henry H. Perritt Jr.
Professor of Law Chicago-Kent College

Drilon Gashi

Drilon Gashi
Comm. Counselor to the Prime Minister

Arlind V. Bytyqi

Arlind V. Bytyqi
Editor-in-chief
New Kosova Report
 

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