Newborn State Peers Into a Hazy Future

KOSOVO FINANCIAL TIMES SPECIAL REPORT | Friday June 5 2009

www.ft.com/kosovo2009 Newborn state peers into a hazy future

An enthused population fly. Legal ambiguity has plagued Kos- and other groups make up the rest. ovo ever since Nato warplanes pushed Kosovo’s constitution, adopted last still faces big economic Serb forces out in 1999. Earlier, the June, incorporates the entire “settle- and political hurdles, autonomous Serbian province enjoyed ment package” proposed by the status similar to a republic in the former UN envoy, Martti Ahtisaari, writes Neil MacDonald Yugoslav federation – but without the before independence. After Russia right to split from Serbia. The separa- blocked the plan at the Security Coun- ewborn, the block letter tist Kosovo Liberation Army (KLA) cil, the western powers gave the green monument to Kosovo’s inde- eventually attracted support because light to the frustrated Kosovo Albani- pendence, has lost its glossy of the harsh repression under Slobo- ans to declare independence as a mul- sheen since it was installed dan Milosevic, the 1990s Serb leader ti-ethnic democracy. Nin central Pristina 16 months ago. who later died while on trial for war Kosovo’s leaders accepted EU-led The signatures of citizens and well- crimes. supervision for an open-ended period, wishers – scrawled in black marker US diplomats said independence mainly to guarantee minority rights. over the yellow-painted sheet metal – would be “the last piece of the puzzle The Ahtisaari plan calls for extreme now mingle with urban grime, shreds [to re-stabilise the region] after the decentralisation, even allowing Serb of kebab wrapper and the occasional break-up of Yugoslavia”. communities to maintain financial flyer for an upcoming concert. Pristina’s state institutions largely ties to Belgrade. The 24m-long, 3m-high English word took shape during the nine years of Several international “presences” has becomes a familiar part of the UN post-war rule. In the end, Kosovo remain closely involved. More than untidy cityscape. Yet the new Balkan had to split from the UN mission as 14,000 Nato-led troops keep a lid on state, which declared independence on much as from Serbia. ethnic tensions, although the alliance February 17 of last year, continues to Ethnic Albanians comprise 90 per could soon downsize the force. struggle for international acceptance. cent of the territory’s roughly 2m peo- Brussels has mobilised nearly 2,000 While the US and most European ple. Serbs now account for just 5 per mainly EU police, judicial and cus- Union members recognised Kosovo cent, while Turks, Bosniaks, Roma toms officials to bring their local promptly, other countries support Ser- counterparts up to speed. Eulex, as bia, which claims the ethnic Albani- the mission is called, must constantly an-dominated territory as a province. dance around the delicate “status” On May 19, Bahrain became the question. Five EU countries have 60th United Nations member to declined to accept Kosovo’s independ- extend recognition, and the number ence, and Eulex works under a UN promises to keep growing. Kosovo last legal umbrella. month gained enough votes to join North of the Ibar river, where eth- the International Monetary Fund nic Serbs predominate, UN officials (IMF), a diplomatic victory that could remain vital intermediaries. Belgrade reassure investors. “This marks a also co-operates on policing and bor- very important moment, a turning Inside this issue der control, despite its more visible point for the Republic of Kosovo,” campaign to thwart Kosovo’s world- Politics Television is giving voters an says Fatmir Sejdiu, president of the wide recognition. insight into the lives of leaders such newborn state. “IMF acceptance as former guerrilla Ramush Haradinaj Another EU-linked organisation, the shows that Kosovo follows contempo- (above). Neil MacDonald and International Civilian Office (ICO), rary fiscal policies.” Krenar Gashi report Page 2 explicitly supports independence. Hashim Thaci, prime minister, says: Pieter Feith, international civilian “Membership means a success for us, Economy Greater investment is representative, holds executive but also a real responsibility going needed to boost ailing domestic authority, including the power to dis- forward to create new, well-paid jobs, production, says Kester Eddy Page 2 miss elected leaders for breaching the build modern infrastructure and Ahtisaari plan. So far he has limited reform health care.” World Bank Privatisation Ownership of selloffs himself to “gentle persuasion” and membership looks certain to follow. has become a complex business, kept his arguments with the govern- Yet UN membership, the surest with officials accused of underselling, ment behind closed doors. stamp of sovereignty, will be impossi- writes Neil MacDonald Page 3 Mr Feith – who works simultane- ble as long as Russia and China – ously as a “status neutral” EU envoy both permanent, veto-holding UN Energy Kester Eddy on the state’s – hopes to persuade Serbs to accept Security Council members – insist new lignite power plant that aims to their future as part of Kosovo. He has that Kosovo belongs to Serbia. stabilise electricity supplies Page 4 yet to make a breakthrough. “Hard- International telecommunication, line leaders in the north manipulate Telecommunications Kosovo is the aviation and sporting organisations, Serb fears about independence,” he only telecoms territory using three among others, have shut out the international prefixes. Krenar Gashi says. breakaway state, even if pragmatic reports on the convolutions Page 4 He also aims to encourage stricter “borrowing” of foreign code numbers Wordplay: a girl nestles in the letter ‘O’ of the graffittiscrawled Newborn sculpture in central Pristina Kester Eddy allows phones to ring and airlines to Continued on Page 2 2 ★ FINANCIAL TIMES FRIDAY JUNE 5 2009 Kosovo State Television shines a light on the political stage faces POLITICS showing hanging under- forces in 1999. With the main competition comes efficiency during his 100 Mr Thaci, at 41 years old, with municipal elections wear – with a mixture of uncertainties of status talks from another former guer- days as prime minister and Mr Haradinaj, at 40, this November. The Organi- Personalities take a fascination, disgust, envy now past, his nominally rilla leader, Ramush Harad- starting in late 2004. Even could remain on Kosovo’s sation for Security and Co- hazy leading role, say and admiration. “People centre-left government inaj, leader of the Alliance after he resigned to face political stage for many operation in Europe, which rise early on Saturdays to courts voters with roads, for the Future of Kosovo trial in The Hague for years. provided monitors for past Neil MacDonald catch it,” an RTK official schools and promises of (AAK), whose boxy hillside alleged war crimes, United Although Mr Haradinaj’s elections, can no longer do and Krenar Gashi says. jobs. mansion has become a Pris- Nations administrators party has rebounded to so because of Serbian objec- future In the second year after Despite rising disappoint- tina landmark. On the praised him for keeping the nearly 15 per cent, most tions. But European and US the new state’s independ- ment with government weekend programme, Mr territory’s ethnic Albanian analysts see no combina- organisations can prevent Continued from Page 1 One Saturday morning just ence declaration, many citi- institutions on his watch, majority calm during fruit- tion that could bring Mr rampant ballot-stuffing, after nine o’clock, a promi- zens have become more support for Mr Thaci’s Dem- less talks with Serbia. Thaci’s PDK down. international diplomats say. standards in Pristina. “Cor- nent cabinet minister sets critical of the political class. ocratic Party of Kosovo Acquitted two months Despite the provisions of Jakup Krasniqi, speaker ruption is a serious prob- his coffee pot onto the Rival party leaders slam (PDK) remains stable at 30 after independence, he the western-backed status of parliament, shocked lem,” he says. burner and fiddles with the each other for alleged cor- per cent or more, according received a warm welcome plan adopted in Kosovo’s viewers with his portrait of Previously, the need for stove dials. His wife, by his ruption like never before. to opinion polls. He rules and resumed active politics. constitution, the prime min- Enver Hoxha, the late Alba- political stability has over- side, giggles: “He never But the linkage of wealth with a lesser partner, the But in his absence, former ister has prevented new nian dictator. Hajredin ridden other considerations. makes coffee without the and power surprises no one, Democratic League of Kos- AAK ministers had become elections until the end of Kuci, deputy prime minis- “Criminal relationships per- camera here.” Radio Televi- says Avni Zogiani, Pris- ovo (LDK), the declining notorious for greed. “The his current term in 2011. He ter, appeared “boring and meate even political parties sion of Kosovo (RTK) has tina’s most vocal anti-cor- remnant of a once-dominant ‘Every country has top-level leader must set the achieved this through a formulaic, just as in poli- and power structures,” an this season offered an ruption activist. party. corruption and example,” Mr Haradinaj controversial power-sharing tics,” the RTK official says. international diplomat says. unprecedented peek into Not all of the leadership, Kosovo’s president, Fat- says. deal with the president and An AAK member, Ardian “But if we are to bring Kos- the private lives of the of course, has welcomed mir Sejdiu, took over the Kosovo is no Mr Thaci says he fully the approval of interna- Gjini, gained popular ovo closer to the EU, we political elite. RTK in. pacifist-leaning LDK after exception’ agrees, pointing out how Mr tional diplomats. esteem by showing off his must clean this up.” “A cup of coffee Hashim Thaci, Kosovo’s the death of Ibrahim Rug- Haradinaj kept control Pieter Feith, Kosovo’s bookshelves. Kosovo faces huge eco- with...”, the state-owned prime minister, heeded ova, still regarded by many Hashim Thaci behind the scenes for the international supervisor, Mr Feith hopes the local nomic hurdles: high unem- broadcaster’s top-rated Sat- advice from his inner circle as the “father of Kosovo”. Prime Minister whole time the AAK held approved the postponement. elections will help to rein in ployment, heavy reliance urday morning programme, and declined, the RTK offi- Without equivalent his- office. “It is not illegal. It allows abuses of power, since “pol- on foreign remittances and visits the homes of Kos- cial says. Elected shortly toric credentials, Mr Sejdiu “Every country has cor- this government to take a iticians are more sensitive daily power cuts. But these ovo’s rich and famous. before independence, Mr could never keep squab- Haradinaj showed off his ruption, and Kosovo is no crack at reforms,” he says. to criticism and advice” problems are surmountable, Besides actors and singers, Thaci continues to enjoy bling party factions antique daggers. He ini- exception,” Mr Thaci says. “Democracy is about rule of during the run-up. Critics says Ahmet Shala, minister the RTK camera crew has western backing and strong together. But his personal tially toned down his ex- “But we had the region’s law, not just elections. increasingly accuse the of economy and finance. called for coffee with many popular support. approval ratings remain guerrilla image by donning worst governance before. There are too many elec- Thaci government of tight- “We will closely co-operate of Kosovo’s elected leaders. A former guerrilla leader, high, as his grey eminence glasses, but more recently Now, we are following EU tions in the Balkans.” ening its grip on the media. with all our partners to Viewers watch – as some he first served as provi- persona fits with the largely went for laser surgery, he recommendations to insti- But the two parties, based Yet politicians remain free make Kosovo sustainable,” politicians open their sional prime minister after ceremonial presidency. says. Many citizens recall tute transparent govern- on ex-guerrillas, will surely to choose about “A cup of he says. “The picture of clothes wardrobes, even Nato expelled Serbian The prime minister’s Mr Haradinaj’s drive and ance.” jostle for economic leverage coffee with . . .”. Kosovo as a non-sustainable country is increasingly out- dated.” At a donor conference last year, Kosovo secured promises of €1.2bn in international aid for two years. The government, in return, Law and order accepted strict budget conditions from the IMF. “We are mostly on the same page as the IMF and forced to adapt the World Bank,” Mr Shala says. In practice, however, the government has veered away from the agreed to circumstance framework, instead adopt- ing “an unrealistic picture of available resources” and JUSTICE The third judge in the Peja “overly optimistic” growth trial – a Kosovo Albanian from expectations, international Neil MacDonald on the district court – hardly partic- economists say. The financ- the unique operation ipates at all. ing gap could force Kosovo Only the Italians dissect all the to turn to donors again. of the state’s EUled testimony and point out contra- The latest budget, final- ‘rule of law’ courts dictions. ised a month ago, forecasts The fidgety man at the witness 4.1 per cent economic stand says he “can’t remember” growth this year, lowered In a courtroom packed with griz- his written statement from a only slightly because of the zled, hawk-eyed young men, the year ago, when he gave evidence world economic crisis. witness shifts uneasily from one against the defendant. “In terms of realism, the foot to the other. “There is a big discrepancy,” [budget’s] authors are still The chief judge asks: “Were the chief judge warns. “Either on a learning curve,” says you threatened before coming you accuse the defendant, or you Ranjit Nayak, World Bank here?” accuse the prosecutor . . . of forg- representative in Kosovo. “So far I have not been in dan- ing your signature on the letter.” “Every transitional country ger or threatened,” replies the Bringing local judges up to coming out of a post-con- reluctant witness, a local prison solid European standards could flict situation and into a guard called to testify in a mur- take five years or more, says a market economy goes der case. “But maybe tomorrow former UN jurist in the system. through similar paces.” it could happen.” In the meantime, Kosovo’s con- Before, Kosovo’s leaders In one sense, the Peja district fusing patchwork of local and could blame the UN. Nowa- court appears loaded with local international authorities raises days, citizens expect more flavour. questions about the legal basis from the people they elect. The case involves a classic for Eulex’s work. Approval for interna- family vendetta killing, still Recent history has left the ter- tional and domestic institu- fairly common in Kosovo’s ritory with a complex mix of old tions has declined, says a mountain areas. The proceedings Yugoslav law, UN decrees and report from the United look strikingly ordinary, with now, given last year’s independ- Nations Development Pro- the witness, defendant, prosecu- ence declaration and new consti- gramme (UNDP). Over the tors and defence lawyers all com- tution, pure Kosovo law. six months up to April, ing from the majority ethnic But Serb areas, since they approval for Kosovo’s gov- group. But the chief judge speaks reject independence, cling to the ernment fell 19 percentage in accented English, pausing for UN as the final legal authority. points to 38 per cent. (Four the translator to give the Alba- Eulex’s mandate, endorsed by years ago, the provisional Glass ceiling: Sylejman Shala (second from right) at his window workshop. High interest rates on loans are impeding growth, he says Kester Eddy nian version. the UN, vaguely calls on judges government scored above 80 The panel of three judges to apply the “applicable law”. per cent.) But the UN mis- includes two Italians, part of the The potential for divergence sion – Kosovo’s least popu- European Union-led “rule of law” makes legal theorists squirm. lar institution – has mission launched last year in “Now, there is no substantial dropped to 16 per cent, its Kosovo. lowest level yet. Eulex, Local enterprises still “This is not normal adminis- uniquely, climbed to 39 per tration of justice,” admits cent. Alberto Perduca, head of the jus- Fisnik Ismaili, whose tice component with the so- Ogilvy Kosovo advertising called Eulex mission and also an team hit on the Newborn Italian judge. idea just in time for inde- struggle for a hearing “Our current effort is to find a pendence, expresses mixed very pragmatic, practical solu- feelings. He had hoped to tion, at least for these old crimi- ‘Our current effort is to repaint the monument for ECONOMY Even at the best of times, Kos- in south-east Europe, ranks Pris- account deficit, which hit 23 per nal cases.” find a very pragmatic, each anniversary, starting ovo, with a small population and tina 12th overall in terms of ease cent of GDP last year. The mission’s more than 40 with the flags of all the Paltry domestic disputed independence, would of doing business, while Prizren, “The main source of revenues judges and 20 prosecutors aim to practical solution, at countries recognising Kos- production requires not find it easy to attract foreign in southern Kosovo, comes is our diaspora; last year we had “mentor” their local counter- least for these old ovo. He wanted a kiosk to direct investment – it has an eighth – both cities are put foreign direct investment of parts as well as to plug holes in sell Newborn souvenirs. urgent attention, archetypical Balkan business ahead of the heavyweight some €350m, against over €550m an overburdened court system. criminal cases’ Instead, the government writes Kester Eddy environment, fraught with cor- regional capitals Belgrade (13th) in remittances. This goes into Other Eulex components bolster Alberto Perduca paid him a year late, with a ruption and legal uncertainty. and Zagreb (19th). consumption, allowing Kosovo to the local police and customs Head of Justice, Eulex discount shaved off the Mr Shala, however, shows it The new state has undoubtedly run up its huge trade deficit,” services. agreed fee, he says. t is a hot, Sunday after- can be done and without using come a long way since the dark she says. Direct courtroom participation But the stark English noon, and in the small town friends in high places. “We do days of 1999, although percep- As a result, the service sector will be “most important in the gap between the two sets of word – chosen to catch the of Bibaj, 40km south of Pris- only private work; I don’t go in tions abroad have been slow to makes up 60 per cent of the econ- initial period”, Mr Perduca says. rules,” Mr Perduca says. “In eye of foreign television tina, the Balkan slumber is for government stuff; I can’t change, says Mimoza Kusari- omy, and the country imports “We have to move forward, future, if the Assembly of Kos- crews – has gained local Ialmost complete; except, that is, afford the time for all the tender- Lila, executive director of the most of its food. “There’s really piece by piece, to create a system ovo were to make substantial currency. Pristina today for the steady, determined move- ing papers,” he says. He would American Chamber of Commerce huge potential for investment in of justice with the trust of public changes, the situation would be boasts a Newborn café, a ments at Sylejman Shala’s work- like capital to expand his work- in Kosovo. “I’ve just come back agriculture, which would provide opinion.” more difficult.” Newborn pizzeria and a shop, where a clutch of workers shop, but says bank loans are from the States, and perceptions jobs in the countryside for the Of all Kosovo’s state institu- Unfortunately, while the two Newborn hotel. One local sets about making windows by out of the question. “Interest are from 10 years ago. Now Kos- unemployed, as well as in tions, the judiciary stands out as ethnic groups have wrestled over music group calls itself the side of the road. rates are just too high,” he says. ovo is stable within the Balkans; energy, tourism, recycling and the least satisfactory to citizens legal jurisdictions, around 60 Newporn. “I’ve got work alright; work for Ahmet Shala, Kosovo’s minis- outsourcing,” she says. across the fragmented territory, arrested suspects have lan- Mr Ismaili gave up worry- three months,” says Mr Shala as ter of economy and finance (no The government has similar a recent report from the United guished in detention for up to ing about copyright viola- he leafs through the order book. relation to the window maker) ‘There’s really huge thoughts, and has identified the Nations Development Pro- two years without trial. tions. “It’s a national monu- “For the past fortnight I’ve been insists that things are on the potential for agricultural sector for special gramme (UNDP) suggests. The Mitrovica courthouse, the ment,” he says. “We didn’t doing two shifts, from eight mend after the turmoil of the treatment, with plans to intro- Local judicial weakness stems scene of riots last year in a hard- do it for money.” o’clock to 11 o’clock every day, past two decades. investment in duce financial guarantees for partly from the discrimination line Serb neighbourhood, suffers just to keep up.” “If you look at the GDP, in 2002 agriculture, which farmers, says minister Shala. He against ethnic Albanians in legal from the worst bottleneck. Mr Shala, 38, founded his com- it was just €800m, and now it’s is, however, less inclined to con- education before the 1998-1999 Eulex, therefore, has no option Contributors pany five years ago with “twenty €3.9bn, so Kosovo is moving would provide jobs sider subsidies to help the likes war, Eulex officials say. but to skip legal hairsplitting. Neil MacDonald euros in my pocket and using ahead quite fast. Of course, there in the countryside’ of Sylejman Shala and his small Then, the sudden departure of “We must make an abstraction Balkan Correspondent borrowed machines”. Turnover are big challenges, but we are window business. Serb judges after the war left the from the notion of justice as an hit €300,000 last year, and his taking measures on key areas “I think the low taxes make courts paralysed. expression of sovereignty,” Mr Kester Eddy workshop now employs six. such as privatisation, electricity, the streets are safe,” Ms Kusari- best competitive conditions, but UN administrators partly filled Perduca says, “and concentrate FT Contributor “They’re all registered and education, infrastructure and Lila says. Although she admits interest rates are coming down; the void, managing trials and on justice as a service . . . for the legal. I’ve trained them myself legislation. I believe the energy that many Kosovars still do “not there is competition between training local jurists. Yet the victims, for the community and Krenar Gashi and the best, on top salary, gets we have put into making a busi- quite get how a [legally transpar- banks,” he says. case backlog steadily mounted. for the accused.” Kosovo Stringer €300 a month,” he insists – citing ness-friendly environment here ent] economy should work” after Indeed, with its strategy to When the UN mission scaled Two trials since Mitrovica’s Seb MortonClark a figure 20 per cent above the will move the country ahead,” he becoming accustomed to “using diversify risk while expanding, down last year, Eulex judges reopening have dealt with rob- Commissioning Editor average wage. says. loopholes” for survival during Raiffeisen International, the Aus- took over 180 criminal cases, beries – one ending in acquittal, Mr Shala’s venture would not The minister points to reduc- the Milosevic years, she agrees trian bank that is the second- including 60 on old war crimes. the other in a conviction. Steven Bird warrant a mention in western tions in taxation as an example. the business environment is largest commercial bank in Kos- Many UN court officials trans- The third (about to start at Designer Europe, but in job-starved Kos- “The highest personal income improving. ovo, is now seeking to serve ferred to the EU-led mission. Spe- time of writing) was for an ethni- ovo, where official unemploy- tax bracket is 10 per cent, and However, Ms Kusari-Lila says small businesses, says Iliriana cial cases, such as organised cally-motivated assault. Andy Mears ment is estimated at 40 per cent, corporate profit tax is also 10 per the government should do much Jakupi, head of retail banking. crime and war crimes, remain Many Serbs appear grateful for Picture Editor his success is significant. cent. I think we have the lowest more to boost domestic produc- “Twelve per cent might seem reserved for international judges. law and order, regardless of The breakaway state ranks as tax burdens in Europe,” he says. tion, thereby improving the dis- expensive to him [Syleman But the new mission takes a Eulex’s growing ties to the Kos- Advertising: Regina Gill one of the poorest in Europe – Critics say this is an exaggera- astrous trade figures that reveal Shala]. But I know the window different approach overall, Mr ovo state. Phone: +49 69 156 85 161 GDP per capita was a miserable tion, and Kosovo needs more imports, at €2bn, are a stagger- business; if he came into the Perduca says. “We aim to put “No lawyer has so far chal- Fax: +49 69 596 44 78 €1,800 last year, roughly a 10th incentives to boost its economy. ing 10 times the volume of bank, it would be easy to explain our judges and prosecutors at lenged the authority of Eulex, Email: [email protected] that of Slovenia, the richest part However, the World Bank, in a exports, at a paltry €200m. This the cost-benefit argument to the service of Kosovo’s judici- not even Serb lawyers in the of former Yugoslavia. recent report comparing 23 cities in turn boosts the current him,” she says. ary.” north,” Mr Perduca says. FINANCIAL TIMES FRIDAY JUNE 5 2009 ★ 3 Kosovo

Builders stake claims in divided city of Mitrovica Transfer of At the grassy summit overlooking Mitrovica a few weeks ago, gangs of workmen in yellow Tshirts scrambled over halfbuilt walls and rooftops. The “ISO 999” logo on their backs marked them as authorised power sees builders from an ethnic Albanian firm on the other side of the river. Just a few metres downhill, a noisy pair of dump trucks prepared the ground for a rival set of houses. Older Serb builders legal tangles relaxed around a picnic table, waiting for their United Nations construction permit. Usually, contractors in the area are neither speedy nor worried about permits. But in their rush to repopulate the hilltop, proliferate the two work crews have staked out Crossing the River Ibar Reuters political turf claimed for their respective ethnic communities. Pristina. Around 13,000 Serbs reside in “This housing thing is not about building northern Mitrovica, with perhaps 2,000 PRIVATISATION Agency (KTA) retained a houses,” says an international official. “It ethnic Albanians and fewer than 1,000 “call option” allowing it to has more to do with the evolving local others, according to European Stability UN officials have repossess assets. political situation and the evolving Initiative research. The southern part has been accused of “The call option for Llam- international situation.” swelled to some 65,000, almost entirely kos is under consideration,” Five weeks ago, Serb protesters Albanian. Despite the mayor’s claim to underselling, says says Dino Asanaj, chairman clamouring about an “invasion” marched up citywide responsibility, the Serb community Neil MacDonald of the Privatisation Agency the hill and scuffled with European Union maintains a whole parallel municipality, of Kosovo (PAK), the riot police, who had formed to protect the dominated by nationalist hardliners. recently formed replace- ethnic Albanian workmen. Mayor Rexepi says he cannot talk to such hree years ago, the ment for the KTA. Refer- Ali Kadriu, leader of the ethnic Albanian illegal institutions, but could “meet them as international offi- ring to the subsequent low reconstruction effort, had pestered UN citizens from time to time”. Northern cials handling pri- levels of investment in the Llamkos workers protesting in April. Legal wranglings left them unpaid for nine months officials for years to let him reclaim his Kosovo’s Serb leaders, Marko Jaksic and vatisation sales in sheet metal mill, he says: house in the Kroi i Vitakut neighbourhood, Milan Ivanovic, have declined his offers to TKosovo heralded Llamkos “Small infractions are nego- But the government, eager tions about the whole con- has kept on 1,000 workers known in Serbian as Brdjani. But the UN, meet with international mediation, he says. as an exemplary success. tiable. But this looks like to demonstrate newfound cept of special spin-off sales, and already invested nearly which governed Kosovo for almost nine Decentralisation plans in Kosovo’s The rolling mill for galva- the worst case.” sovereignty, would prefer which can arguably end up triple its obligatory €20m in years after the war, discouraged returns to constitution would split the city into two nised sheet metal in Vush- Under the 2005 sale agree- not to ask him. restricting rational manage- three years. “Dozens of the mainly Serb north because of security legal municipalities, with a joint board for trri, 25km north of Pristina, ment, the UN-led agency The Llamkos problems, in ment choices. “If the condi- companies work for fears. “Eulex [the new EUled police and water supply, electricity, environmental was set for a surge of could have repossessed fact, became evident soon tions were sensible or sus- Feronikeli indirectly, so the justice mission] took a different view – that protection and urban planning. Mayor improvements. The buyer, Llamkos at nominal share after privatisation. An tainable, private owners impact is quite significant,” the right to reconstruct your own house Rexepi sees potential in such arrangements: Bulgaria’s Kremikovtzi, had value, amounting to just Indian group, Global Steel, would make similar deci- Mr Asanaj says. was important,” says David Slinn, the British “This could be a bridge for cooperation,” paid only €4.2m, but had €2,000. Yet for PAK, which took over Kremikovtzi at sions anyway,” an EU econ- Out of 24 special spin-offs diplomat who monitors Mitrovica for the he says. committed to investing took over the privatisation almost the same time as the omist says. completed by the KTA, only International Civilian Office. Serbs and Albanians work well together, €15m over two years. How- portfolio last August, the Llamkos privatisation. Such free-market logic about 20 per cent went bad, With the retreat of the UN into a passive the mayor adds, even if too much happens ever, the level of subse- call option could be more According to UN docu- provides little comfort to he says. “Non-success else- role, Kosovo’s own authorities have tried to on the wrong side of the law. Ultimately, he quent investment is mired difficult to use now. ments, a dispute followed laid-off workers. Kosovo’s where could affect a com- assert their relevance in the north. would rather see the construction sector in controversy. “Our agency has inher- between Global Steel and parliament and Vushtrri’s pany here. One fifth failing Mitrovica’s ethnic Albanian mayor, Bajram busy with industrial parks or shopping The last FT special report ited significant problems former Bulgarian share- mayor are demanding re- would be normal in any Rexepi, describes home reconstruction as “a malls. “People all want to move toward on Kosovo, in May 2006, from the predecessor holders about whether cer- nationalisation of the fac- economy.” humanitarian project . . . not a political normality and economic development.” said Llamkos showed how a agency,” says Shkumbin tain assets, including Llam- tory. Kosovo’s last government project,” although he also hopes to bind Mitrovica once prospered thanks to the cheap sell-off, combined Becaj, PAK’s deputy manag- But international supervi- accused international offi- together all of Kosovo’s territory. Starting Trepca mining complex. But with the mines with commitments on ing director. sors with seats on PAK’s cials of selling prized com- on the outskirts, rather than smack in the nearly dormant since the conflict, the city investment and employ- Confusion has arisen ‘With the specifics board warn that any cancel- panies too cheaply. PAK middle of North Mitrovica, was deliberate now has Kosovo’s highest rate of ment, “can work” to revive because of the UN’s ambig- Kosovo has, it’s lation of the privatisation officials downplay such and diplomatic, he says. “We hoped to unemployment. “Serious companies hesitate moribund industries. The uous handover to new would send a terrible signal objections. decrease tensions with Serbs, to gradually to invest here because of the political and plant had by then resumed authorities. extremely difficult, to other would-be investors “Even in perfect situa- improve relations, not create a provocation.” security situation,” Mr Rexepi says. exports around the region. Because of Russia’s veto- but not impossible, in Kosovo. tions, privatisation can be The municipality had already rebuilt Serb The contested hilltop was completely Soon, however, Llamkos power in the UN Security Mr Asanaj of PAK has difficult,” Mr Asanaj says. houses on the ethnic Albaniandominated ethnic Albanian before the war. But as soon became the textbook case of Council, the mission that [to privatise]’ kept his options open. Spe- “And with the specifics side. But few returnees came, and hardly as rebuilding started, Serbs bought adjacent a failed privatisation – had governed the disputed cial spin-offs in general are Kosovo has, it’s extremely any stayed for long. “They decided to leave tracts at inflated prices. The funds may exposing the pitfalls of Serbian province for nine not problematic, he says, difficult, but not impossi- again because they found no chances for have come from Belgrade, but all what Kosovo’s former years could not completely kos, were included in the because the investor – not ble.” employment or education,” Mr Rexepi documents were in order. United Nations administra- close. But the UN scaled deal. Global Steel finally the agency – proposes the Primod Mittal, the owner admits. The Serb construction foreman, Dragoslav tion termed “special spin- down its presence, transfer- won, but the level of invest- exact conditions and price. of Global Steel, did not Although unofficial, the River Ibar forms Zivkovic, says he has no wish to partition off” sales. ring policing and justice to ments promised at the time “The best proposal wins,” reply to e-mailed questions, the starkest dividing line through the former Kosovo’s territory. “To divide Kosovo would The government, having the EU, and implicitly of the initial sale had fallen he says. The Peja brewery, and other officials from his Serbian province. Serbs concentrated on be to divide Serbia,” he says. declared Kosovo independ- allowed local institutions to behind. the Rahovec winery and company declined to com- the north side, with unbroken ties to Musa Haliti, a representative from the ent in February 2008, wants assume day-to-day power. Then, as metal industries several flour mills have all ment. Belgrade, have mostly ignored Kosovo’s neighbourhood, says he expects no trouble to take the company back Technically, enforcing a foundered worldwide, local done well. Privatisation proceeds transition to independence. Serbian dinars living alongside the Serbs: “We were and start the sale again. call option on a company managers said Llamkos Feronikeli, Kosovo’s big- worth €450m are in a trust are the north’s main currency. neighbours before.” This is possible because for would still require approval could no longer cover its gest privatised company, account pending settlement But in the new state’s second year, all special spin-offs, the by the latest UN mission payroll of 500 workers. has hit a rough patch in the of creditor claims, including pressure has mounted to integrate with Neil Macdonald former Kosovo Trust chief, Lamberto Zannier. The case has raised ques- world nickel market, but those of Serbia. Poor state protection risks souring local wine success

DOMESTIC INVESTMENT priced wines in non-commu- receive no stimulus for for- for several more years. nist Europe for hard cur- eign sales, while their com- The newly proclaimed A stimulus is rency – remains the largest petitors in other Balkan country has lost out badly needed to keep wine storage site in the countries benefit from 10 in the Central European former Yugoslavia and per cent subsidies on each Free Trade Agreement producers among the largest on the bottle exported. (Cefta), the largely theoreti- competitive, write continent, Mr Hulaj says. The state sees the need to cal customs-free area for Yet Stone Castle, recent pay more attention to agri- countries still outside the Krenar Gashi and quality upgrades notwith- culture – an underdevel- European Union. Kosovo Neil MacDonald standing, now sells only a oped sector for the new belongs to the trade zone fifth of that capacity each state. “We are importing only through the UN mis- year. Turnover for 2008 around 80 per cent of our sion that ruled after the Beneath the undulating ter- came to €3m, with profits of agricultural products, says 1998-1999 war. rain around Rahovec, enor- just 10 per cent. Ahmet Shala, minister of Neighbouring countries mous oak casks, stained The domestic market pro- economy and finance. have hesitated to accept with nearly 40 years of local vides a dubious foundation. Kosovo’s new customs vintages, are enjoying their Kosovo has only 2m people, stamp on export shipments best time yet, says Valdet mostly without strong wine- ‘We’ve made it, this year, even after recog- Spahiu. The barrel-chested drinking traditions. And despite all the nising the new state’s inde- oenologist, a 38-year vet- while the company does its pendence from Serbia. But eran of the cavernous own bottling, the bottles are obstacles, despite these fellow Cefta members underground wine cellar, imported at extra cost from the global financial have mainly used the stamp says the private owners Bulgaria because no one excuse to keep up unfair who took over three years makes them locally. downturn’ trade barriers. “We as Kos- ago have shown a passion But the bigger problem is ovo belong to Cefta, just for their product that was the lack of state protection, like Montenegro does, missing since the 1980s. Mr Hulaj says. Go into any The government will soon which obliges everyone to The weather has treated grocery shop in Kosovo, initiate a risk-guarantee allow free economic access the Stone Castle winery and you are more likely to scheme for agricultural pro- and free movement of kindly. “And we receive our find Montenegrin Vranac ducers, giving them help goods,” Mr Shala says. salaries on time,” Mr Spa- on the shelf. “All sorts of with financing rather than Most of Kosovo’s 4,000 hiu says. products enter Kosovo with- direct subsidies, Mr Shala hectares of vineyards are in Stone Castle stands out as out interference, and this says. The plan includes pay- the Rahovec area, where one of Kosovo’s successful definitely affects our busi- ing part of the steep inter- wine was made as early as privatisation stories – a ness,” he says. “Our govern- est rates on investment 28 BC, according to a stone “special spin-off” where the ment needs to change the loans. tablet unearthed nearby. buyers have largely met fiscal policy to protect our Even so, Balkan trade Stone Castle owns some 600 their obligations to keep domestic products.” disputes could hinder Kos- hectares, but also buys workers and improve the Local wine producers ovo’s few serious exporters grapes from local farmers. facility. Harry Bajraktari The big winery – unlike and Rrustem Gecaj, a pair some smaller ones along of Albanian Americans orig- the road to Prizren – suf- inally from Kosovo, bought fered little war damage. the Yugoslav-era NBI Exports resumed in small Rahoveci site three years quantities even before pri- ago, paying €5m to the vatisation. Since last year’s United Nations trust independence declaration, agency, which was then Stone Castle has dropped responsible for disposing of the cumbersome “UN Secu- “socially owned” assets. rity Council Resolution Although they had to ask 1244” stamp from most of for a one-year extension, its bottles. they will soon complete Buoyed by greater free- their promised investment dom, the company hopes to of a further €5m, spent on crack the US market soon. site renovations, technologi- But the “Made in Kosovo” cal upgrades and newly success story remains a introduced grape varieties. work in progress. This year The workforce hovers just promises to be tough, with over the agreed minimum foreign distributors making of 250, rising above 300 with increasingly late payments. seasonal labour, says Ismet “We’ve made it, despite Hulaj, Stone Castle’s chief all the obstacles, despite the financial officer. More than global financial downturn,” 90 per cent of output goes says Shani Mullabazi, gen- for export, mainly to the eral manager. UK, Switzerland and Bal- The company next kan countries. intends to open its doors for It all sounds tremendous wine tourism. Talks are until you look more closely. underway with the UK- The 50m litre plant – based Regent Holidays, Mr which used to sell low- Weathered well: a Stone Castle vineyard near Rahovec Mullabazi says. 4 ★ FINANCIAL TIMES FRIDAY JUNE 5 2009 Kosovo University trains ‘honest business leaders’ of the future

EDUCATION strongly believe that people shift, patchy system at best. degrees in association with ease the financial burden. “we are seen as equals, And to ensure these peri- should get credit for their Judging by the relaxed, Rochester Institute of Tech- Prof Hall, keen to make given the opportunity to ods, and the pay, are genu- Kester Eddy visits work; I think that we all yet clearly serious, students nology, New York, has AUK available to talented express ourselves and work ine and completed, students AUK, Pristina’s signed fully aware of the on campus, AUK has since expanded to offer students regardless of on our skills. You feel that are required to produce doc- meaning,” she says. already made a strong start. majors in public policy and income, works aggressively you are among the best and umented evidence as proof. youthful and The university, located in “The founders asked: media with information at fundraising, and is also being taught by the best, Students learn from the idealistic academy the hilly eastern outskirts what does Kosovo need? technology. planning dormitory space to which increases the will to experience and in many of Pristina, was founded Does it need more lawyers But fees, at some €5,000 cut costs for students with work harder,” she says. cases have jobs waiting for just six years ago, with and economists – the per annum – although homes outside of Pristina. The school is also con- them at one of the place- A framed pledge hangs in much of the initial support default subjects here? No, it cheap by US standards – Despite the financial hur- cerned to attract ethnic ment companies upon grad- the reception hall of the and funding from the Kos- needs practical, entrepre- represent a fortune in Kos- dles, the university is popu- minorities, and currently uation, says Prof Hall. American University in ovo global diaspora. neurial, honest, innovative ovo. lar, with current intakes at has six Kosovo Serbs “We have, I think, only Kosovo (AUK), signed by It aims to give the bright- business leaders. So we “Fees are really expen- 150 students each year. enrolled. two Kosovar graduates, every student. Each has est local youth a better began by offering a degree sive compared to average Without exception, stu- Prof Hall revels in the from our first two graduat- publicly vowed not to chance of a good-quality, with a management major,” incomes here; I’m especially dents refer to the methodol- enthusiasm and educational ing classes, working outside “cheat, steal or plagiarise” practical, US-based educa- says Chris Hall, AUK presi- grateful to my parents, who ogy and dedication of teach- standards already achieved, the country, though we and to “show respect to all” tion and thereby help build dent. financed my first year at ers – about half are local, but says he does not want have about a dozen doing at the institution. a better future for Kosovo. One to benefit is Ramush AUK,” says Mrika Aliu, ‘My goal is to the remainder foreign – as Kosovo graduates to see the postgraduate studies in the For Diellza Gashi, a The need was particularly Haradinaj, Kosovo’s former who has just completed her positively an inspiration. US degree as a “ticket out EU or US,” he says. 21-year old from Pristina acute because the Milosevic prime minister, who com- second year. “In the public universities of the country”. Ms Gashi is adamant who graduated last week, it regime of the 1990s had in pleted a management Ms Aliu, who chose AUK contribute to in Kosovo, students are “Our job is not to acceler- about where her skills will is a daily reminder of the effect shut out ethnic Alba- degree from AUK by corre- because its degree is “recog- the economic looked upon as inferior; it is ate the brain drain, but to be used: “After finishing university’s core values. nian children from the pub- spondence course while on nised all over the world, all about the professors, [so] enable students to pursue my graduate studies I plan “The pledge is put there lic school system. trial in The Hague for giving me the opportunity development of the will to study and attend careers here,” he says, to come back and begin my because AUK, as an educa- As a result, the Kosovo alleged war crimes. (He was to work in other countries,” classes all but fades away,” Hence the university professional career in Kos- tional institution, together Albanians organised a so- acquitted last year and has has won financial support my country’ says Donjeta Haliti, who requires students to com- ova. My goal is to positively with the students, values called “parallel education” since attempted a political for her academic excellence, Diellza Gashi has just completed her sec- plete two 400-hour stints in contribute to the economic individual work and intel- system, whereby teachers comeback.) and works in the career Student ond year. salaried internships at local development of my coun- lectual property rights. I taught in homes – a make- AUK, which offers services department to By comparison, at AUK companies. try.” Plant raises Privatisation hope in battle tests water in between light outdoor idyll TOURISM adviser to draw up a framework development plan for Questions hang secure, long-term invest- over ownership of ment in and around and dark Brezovica, Mr Asanaj says, holiday facilities, stressing that this will says Kester Eddy include full consultation ENERGY pany, struggle to keep the tur- with the local population. bines spinning at the old plants, “We hope to present this Power cuts and creaky assuming, that is, there is fuel. Few stumbling upon the to potential investors at a distribution continue to The conveyors that bring the lig- Hotel Narcis, in the village conference next year,” he nite from adjacent mines have a of Brezovica, southern Kos- says. plague the industry, habit of seizing up. The plants ovo, would feel welcome, Bora Milosevic, an ethnic writes Kester Eddy have an effective capacity of except perhaps a filmmaker Serb who owns the roughly 800MW, which still falls out to reproduce the grim- Ljuboten, a smartly-run short of peak demand, now mest memories of commu- boutique motel up the road aatchi & Saatchi Israel has approaching 1,100MW. nist-era tourism. from the hapless Narcis in won the contract to Traversing the creaky transmis- Inside the vast, ill-lit Brezovice, says the recent develop the new Kosovo sion and distribution systems – reception hall, a score of skiing season has been a “national brand”. Last also starved of investment – an armchairs await non-exist- success, with “too many” Smonth David Kosmin, vice-presi- alarming quantity of electricity ent guests, a mixture of guests. dent of the public relations goes astray, either lost through stuffing and springs visible His response to news of agency, was in Pristina to tell the resistance or stolen via illegal through the gashes of their the privatisation plans was media. connections. Even when power once-plush leather. positive: “That sounds Like any PR professional, Mr makes its way to a legal con- At the counter, a middle- great. We could have 15,000 Kosmin declines to dwell on the sumer, there are problems with aged receptionist, speaking beds here.” negative; so when asked by the billing and non-payment. only Serbian, reveals the Mr Milosevic advocates FT about the less-appealing As a European Commission rates at €30 per person, more co-operation with the aspects of Kosovo, he replied: report concluded last year, a stag- before declining to answer authorities in Pristina, “Everyone knows the main nega- gering 44 per cent of electricity questions on business. meaning an end to the prac- tive images; [I’d rather] look for- entering the distribution network Dig for victory: an excavator extracts lignite, or brown coal, at the Mirash coal mine in Obelic Bloomberg To ever be more than a tice in Serb enclaves of non- ward . . . and focus on people.” in 2007 was “stolen or not paid cheap weekend getaway, payment of taxes and elec- At that point, the lights went for, representing revenues of tion in the first quarter of this year limited hydroelectric capacity by the power shortage problems. Brezovica needs to attract tricity bills. out. about €99m. Theft accounts for up “an astonishing 46 per cent,” Mr 400MW. But the biggest issue is “If the government made a deci- foreign tourism developers. “The time has come to It was a stark reminder of the more than half of this...often Gjukaj says. the future of New Kosovo – a mas- sion before the summer break, we But Kosovo’s ethnic Albani- start changing; people problems that bedevil Kosovo’s facilitated by KEK employees.” While citizens concede that sup- sive 2,100MW installation could close the deal early next an-dominated government should pay for electricity, electricity system, which has suf- Arben Gjukaj, the engineer ply has improved, critics remain designed ultimately to replace the year, with the first unit generat- must strike a delicate bal- but of course this means we fered frequent shortages ever appointed to head KEK last year sceptical. The government mean- existing plants and make the sys- ing in 2015,” says Mr Haxhiu. ance with economic growth should have reliable serv- since the conflict of 1999. The to clean up operations, insists while insists it is addressing the tem self-sustainable for decades. But the project has attracted and the wishes of a hesitant ices and infrastructure in breakaway Balkan state relies on things are improving. industry’s structural problems to The four consortia successful in fierce criticism, not least from ethnic Serb enclave. exchange,” he says. two ageing, inefficient power A focus on the lignite conveyors attract private capital. It says it pre-qualification bidding in 2006 Luan Shallaku, executive director About 12km to the south, With such enthusiasm on plants for all but a fraction of has led to “a full month’s supply will introduce cost-based pricing (see box) have waited in frustra- at the Kosovo Foundation for at the beginning of a dozen the ground, the privatisation domestic generation. of fuel”, which in turn has and spin off the distribution net- tion as the government elected in Open Society. or so meandering ski runs, plans should forge ahead. Successive administrations improved power plant output. work prior to privatisation, and is 2007 has re-examined plans, and, “I’ve shouted for two years the air is fresh and moun- But Mr Milosevic admits have recognised that a reliable “Last year we generated 85 per working on legislation to expand its alleging wrong-doings in the origi- about the environmental damage tain scenery attractive, but electricity supply is crucial for cent of total demand, with 15 per nal tender, dallied over crucial this plant will create. Now I’m here too – at least out of the economic development. Kosovo’s cent imported. This year, consum- points – such as whether the suc- turning to more patriotic rhetoric skiing season – it is eerily ‘What we need is huge reserves of lignite (a type of ers in category A [those that pay The bidders cessful investor should take on to make people understand,” he devoid of tourists and privatisation – the low-grade coal) became the basis reliably] have not had any power Groups that have prequalified to the existing units, together with says. Mr Shallaku, a chemical marred by a profusion of for new generation capacity plans cuts, and in the past two months bid for Kosovo C, the new their potentially horrendous engineer, argues Kosovo does not plastic bags and bottles. management and developed this decade. even category C customers [who lignitefired power station: clean-up costs. need such a large power station. “It’s all very sad; workers there want The government sees the owe debt] have seen no big reduc- “There’s no doubt that [in He supports, at maximum, a Brezovica used to be one of project – originally known as Kos- tions,” he says. AES (USA) with CEZ (Czech) order] to move fast it would be 1,000MW plant, but insists the Yugoslavia’s best ski-re- that – to get ovo C and now dubbed New Kos- To improve revenue collection better to exclude existing assets state should have a 49 per cent sorts, with wonderful hospi- EnBW (Germany) with ovo – as the future of the power and combat theft, the entire oper- and all the associated complica- stake in whatever project goes tality,” says Zeke Ceku, business moving’ Washington Group Int’l (USA) system, despite the environmental ation has been restructured, with tions,” says Lorik Haxhiu, who ahead. president of the Kosovo difficulties associated with this individual staff trained in cus- Enel (Italy) with Sencap heads the agency co-ordinating Anything less is simply eco- Tourism Association. “not everyone” in the vil- dirty, low-energy fuel. tomer relations and given per- (GreeceUSA) the project. nomic madness for Kosovo, and Brezovica has fallen foul of lage shares his opinion. But the sector’s problems are formance-related incentives. With electricity demand “only makes perfect business for the economic disruption in There is also a question manifold; every winter engineers The results overall are “very RWE (Germany) increasing at 7 per cent annually, foreign investors for the next 40 Kosovo over the past two mark over who exactly owns of KEK, the state electricity com- encouraging”, with cash collec- further delay exacerbates years”, he says. decades, leaving the non- the hotels and ski facilities – private hotels and ski-facili- which were both legally des- ties starved of maintenance ignated as “socially-owned” and care. True, the majority in Yugoslav days, with ulti- Serb area welcomes visitors mate direction exercised – largely middle-class eth- from Belgrade. nic Albanians from around Mr Asanaj brushes aside Pristina. any doubts on title: “We Callers forced to talk in foreign codes “I go skiing there every own it. The area was all year. The majority of work- under ‘social ownership’ in ers are [ethnic] Serbian, the former system,” and as TELECOMMUNICATIONS breakaway state, while China,” says Mr Berisha, mobile network. With €170m turnover of the PTK, Despite Belgrade’s retreat most skiers are [ethnic] the successor administra- many others – including whose mandate as chair has €200m more invested since whose net profit of €60m in 1999, Serbian mobile Albanian, so we are their tion, Kosovo inherits the Krenar Gashi key UN Security Council expired, although no one then, it has become Kos- makes it one of Kosovo’s operators have put their clients. They are very inter- title, he says. unravels the members – back Serbia’s has replaced him yet. ovo’s biggest foreign invest- most sought-after assets. antennae on Kosovo’s soil. ested in being tolerant, He concedes that under claim to Kosovo. But the Serbia – backed by the ment, and Slovenia’s big- After several false starts, State-controlled MTS and there’s no politics. It’s sur- the Kosovo privatisation complexity of a fast-expanding telecommu- same two big powers – gest venture abroad. the government hopes to Norwegian-owned Telenor real,” says Jeta Xharra, law, all stakeholders – simple phone call nications sector has bigger keeps lobbying to block Thanks to Slovenian state privatise the domestic tele- Serbia work without executive director of the meaning the managers and problems than reliance on Kosovo from joining inter- ties, IPKO pays only €0.01 com company this year. licences from the authori- Balkan Investigative workers at the Brezovica the Serbian prefix. Mobile national organisations. per minute on international PTK boosted its visibility ties in Pristina. Kosovo’s Reporting Network in Kos- facilities – must reach a More than a year after Kos- telecom companies – com- As states sprang up calls with its +386 country by winning a tender in ethnic Serb minority relies ovo. consensus before any sales ovo’s declaration of inde- ing on the scene since the around eastern Europe in code. The resulting saving April 2009, at the head of a on the two services. Still, tourist numbers are can go ahead. pendence, its officials still withdrawal of Serb forces a the 1990s, they demanded helped the newcomer lure consortium, for the fourth In 2006, the UN adminis- “way down” on what they But with the Serbian gov- have Serbian telephone decade ago – had to “bor- their own codes. Other mobile network in Albania. tration gave permission to were, or what they could ernment continuing to exert numbers on business cards. row” dialling codes from small countries, which had Critics say Kosovo should Kosovo’s authorities be, says Mr Ceku. influence in the enclave, Serbia’s international foreign operators. Kosovo shared with larger neigh- Kosovo has not invest there while to remove antennas of “The season is much privatisation could prove dialling code, +381, remains has become the world’s bours, suddenly wanted dis- become the world’s struggling to attract its own operators reaching outside shorter now, maybe two tricky. for landline calls. Mobile only telecom territory using tinct numbers too. foreign investments. PTK’s the Serb-dominated settle- months only. What we need “The locals need the busi- networks have taken three international prefixes, Monaco obtained its +377 only telecoms chief executive, Shyqyri ments. Some were removed, is privatisation; I know the ness in Brezovica, but the another route, bringing two none of them its own. code in 1996, and by 2000 territory using three Haxha, responds: “We will but after an attack management and workers problem is you need consen- more dialling codes to the The PTK’s state-owned was selling usage rights to not invest money. All we on Anton Berisha – a rock- there want that, to get busi- sus to privatise. territory. mobile operator, Vala, uses Kosovo. The fees have international will invest is our expertise.” et-propelled missile was ness moving,” he argues. “I’m not a political man, The array of prefixes is a Monaco’s prefix, +377, based fallen, but it still costs the Mr Haxha also hesitates fired at his vehicle – the This scenario dovetails but there are signs of pres- hurdle the new state must on a deal reached in 2000 by PTK €19m per year, or €0.08 prefixes, none of to talk about the PTK’s deal process stopped (Serbs were with the thoughts of Dino sure from Belgrade there,” overcome to make a suc- the UN mission in Kosovo per minute of international them its own with a US-based investor, not suspected in the Asanaj, chairman of the Pri- Mr Ceku says. cessful sale of its prized (UNMIK). Borrowing the calls. But increasing compe- UNIFI Holdings, for a “vir- attack). vatistion Agency of Kosovo, Mr Milosevic, similar to Post and Telecom of Kosovo telecom code was the only tition has helped, Mr Beri- tual” mobile operator. The As a consequence, for this “God-given beauty” Mr Ceku, underpins his (PTK) in the months ahead. solution, says Anton Beri- sha says. In 2006, Mobitel, a users while retaining an joint venture, Dardafon, Kosovo’s telecom compa- of a location. vision for Brezovica’s future Yet without membership sha, outgoing head of the Slovenian state-owned firm, enormous profit margin. would be run by UNIFI and nies claim they lose 200,000 “Brezovica and the region on a straightforward eco- of the United Nations, Kos- Telecommunication Regula- took over IPKO, Kosovo’s Akan Ismaili, IPKO’s resell part of PTK’s GSM users to “illegal” operators. should become an all-year nomic rationale. ovo cannot obtain a unique tory Authority, Kosovo’s first internet service pro- youthful chief executive, bandwidth. Another virtual Mr Berisha, recalling his tourist destination. You Proudly indicating the dialling code number from independent regulator. vider, for €20m, with an eye beams with pride about mobile operator, D3, already time as chief regulator, says have 150 days of snow for Ljuboten menu in both Ser- the International Telecom- “UNMIK had initiated on expanding mobile teleph- achieving positive earnings feeds from the IPKO net- he could never clamp down skiing in winter, and could bian and Albanian lan- munication Union (ITU), a talks with ITU to get Kos- ony. After winning the just a year after starting. work, making four licensed on the infringement, which add hiking, biking and [sim- guages, he says: “Many UN body based in Geneva. ovo a temporary interna- licence for €75m, IPKO’s Turnover last year was mobile operators in all. But stems from “a combination ilar pursuits] in summer,” don’t think like me; but Only around 60 countries tional code, but that was consortium in April 2007 €41m, he says. Still, that is a the complexities do not end of political and criminal he says. they have to understand have recognised the Balkan blocked by Russia and launched Kosovo’s second pittance compared with the there. activities”. The agency has chosen an and look to the future.”