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EU Gjilane Regional Office |
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The Department of Trade and Industry-DTI |
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Commercialization |
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DTI-Socially Owned Enterprises, Commercialization and Privatization |
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An important part of the activities of the DTI in particular regions of Kosovo is related to the category of so - called Socially Owned Enterprises (SOEs). The SOEs represent a category of enterprises in social ownership. These enterprises are non-private (in principle State) enterprises managed by collective of workers of the enterprise. Workers exercise these rights on the basic of the Law on Enterprises, bylaws of the particular enterprises and by means of elected Workers Council representing the collective of Workers. The Workers Council has right to appoint the Director of the Enterprise.
The responsibily of UNMIK for SOEs is vested in the UN resolution 1244/1999 and the UNMIK regulation 1/1999, Article 6 "UNMIK shall administer movable and immovable property, including monies, bank accounts, and the other property of, or registred in the name of the Federal Republic of Yugoslavia or the Republic of Serbia or any of its organs, which is in the territory of Kosovo". The responsibility of the Department of Trade and Industry is determined by the UNMIK Regulation 2000/63, which gives to the Department the authority to administer SOEs t hat are of industrial or commercial nature. |
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European Union in joint effort with UNMIK/JIAS Central department and the local administrations is focusing is efforts on the following main task:
1- Establishment of the database of SOEs and assessmant ot the business potential of these enterprises.
2- Commercialization of selected enterprises at the central level and regional level.
3- Preparation of realistic retructuring and downsizing plans for selected enterprises and provision of training in Good
Management Practices.
4- Training of Kosovars in commercialization and Good Management Practices.
5- Preparation of privatization of SOEs after the political decision will be taken and the legal framework approved. |
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Commercialization means the process of leasing assets of a SOE to any forign or local investor. The commercialization process aims to improve assets of the SOE through new investments as well as restarting the production and employment as soon as possible. Other objectives of commercialization are to put the economic activities in the legal framework, creating security for investors and to realize incomes for the Kosovo Consolidated budget. The commercialization is developed publicity and transparently through a Tender process. During the tender process a Notice of Tender is published. The Tender (any interested foreign and local businessmen) prepare and submit Tender Proposals. The tender Committee evaluates these proposals and propose to conclude a Concession Contract with the selected bidder. The period of lease is limited to ten years. The bidder has to enter into commitments regarding investment, level of employment, implementation of necessary enviromental measures and payment of agreed lease fee.
Privatization is considered as a main goal of UNMIK regarding non-private enterprises. It has initiated a wide discussion within UNMIK structures as well as representatives of the local and international community.
UNMIK and municipal authorities are maintaining a database of about 70 Socially Owned Enterprises in the 7 municipalities of the Gjila region, employment of which amounts to about 8900 employees. |
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Municipality
Gjilan/Gnjialne
Ferizaj/Urosevac
Kamenice/Kamenica
Viti/Vitina
Kacanik/Kacanik
Shterpce/Sterpce
Novoberde/Novobrdo
Total |
Number of SOEs
16
13
17
5
5
11
3
70 |
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Number of Employees
3300
1600
1050
550
1350
750
300
8900 |
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Comments
3300
1600
1050
550
1350
750
Not in Operation
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According to the available information to the largest companies (operating) of the region belong the following companies: |
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Company
Sharr Cement
Morava e Binces
Silcapor
Mustafa Goga
Tobacco Factory IDGJ
Banja e Kllokotit
Edibile Oil Factory
Jugoterm
Agrokultura
Agroprodukti JUKO/Kriva Reka |
Municipality
Kacanik
Gjilan
Kacanik
Ferizaj
Gjilan
Viti
Ferizaj
Gjilan
Gjilan
Kamenica |
Sector
Construction (material)
Construction
Construction (material)
Construction
Food processing (cigarettes)
Food processing (Mineral Water)
Food processing (oil and fat)
Metal Processing (radiators)
Agriculture
Agriculture |
Number of Employees
650
650
300
200
300
200
200
170
200
200
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The viability of the SOEs in Gjilan/Gnjilane region varies from sector to sector. The viable sectors of Kosovo economy are mainly related to the activities and funds provided by international donors for reconstruction of Kosovo. Majority of these funds is chaneled into reconstruction of Kosovo infrastructure, public housing and agriculture. The SOEs benefiting from this situation are companies in the construction sector, construction materials suppliers and some agricultural and food processing companies. Largest and most viable companies of the Gjilan/Gnjilane region belong to the companies of construction sector-Morava e Binces (construction company in Gjilan/Gnjilane with 650 employees), Mustafa Goga (construction company in Ferizaj/urosevac with more than 200 employees). Sharr Cement Factory (cement production, Kacanik, 650employees), silcapor (construction materials, Kacanik, 300 employees), Radiator Factory JUGOTERM (radiators for public housing, Gjilan/Gnjilane, 150 employees) and agricultural and food processing sector- Agrokultural (agricultural holding, Gjilan/Gnjilane, 200 employees), Agroprodukti JUKO/Kriva Reka (agricultural holding, Kamenice/Kamenica, 100 employees), AgroMorava (agricultural holding, Viti/Vitina, 200 employees), Banja e Kllokotit (mineral water, Viti/Vitina, 200 employees), Bakeries in Gjilan/Gnjilane and Ferizaj/Urosevac (150 employees), Tobacco Factory IDGJ cigarettes, Gjilan/Gnjilane, 300 employees), Edible Oil Factory (oil and fat, Ferizaj/Urosevac, 200 employees).
The commercialization of SEOs of Gjilan region is gradually progressing. The Sharr Cement factory in Hani Elezit has been successfully commecilised as the first company in Kosovo by the Swiss company Holderbank. Further tenders are in the development for the companies in the Kamenice/Kamenica (Hotel mineral, brick factory Tulara, construction materials manafacturing Karaqeva etc.) Ferizaj/Urosevac (Edible Oil compnay, exotic fruits compnay Minex, brick factory Mustafa Goga) and Viti/Vitina (metal processing company Vinex and the textile compnay Letnice |
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