Commercial Justice Activity

COMMERCIAL

JUSTICE ACTIVITY

Annual Report March 1, 2020 – February 28, 2021

March 30, 2021

This Report is prepared with the support of the American people through the United States Agency for International Development (USAID)

USAID Commercial Justice Activity

Contract No.: 72016719C00001

Prepared by:

Chris Thompson

Chief of Party, Commercial Justice Activity Address: Str. Lorenc Antoni (Mbreti Zogu), no.13, Pejton, 10000 Pristina, Kosovo Email: [email protected] Internet: www.checchiconsulting.com

Delivered on March 30, 2021

DISCLAIMER

The content of this report is the sole responsibility of Checchi and Company Consulting, Inc., and the author’s views do not necessarily reflect the views of the United States Agency for International Development or the Government of the United States.

This report may be reproduced, multiplied, or transmitted in electronic, mechanical, photocopy, recorded, or any other manner, provided that attribution to USAID and the USAID Commercial Justice Activity is clearly indicated on any copy made and distributed. TABLE OF CONTENTS TABLE OF CONTENTS ...... I LIST OF ABBREVIATIONS AND ACRONYMS ...... II I. PROGRAM PURPOSE AND APPROACH ...... 1 II. EXECUTIVE SUMMARY ...... 1 III. PROGRESS ON ACTIVITIES AND TASKS ...... 3 OBJECTIVE I STRENGTHENING KOSOVO’S CAPACITY TO RESOLVE COMMERCIAL DISPUTES AND ENFORCE JUDGMENTS ...... 3 Activity Area 1.1. Improve Resolution of Commercial Disputes in Court ...... 4 Activity 1.1.1 Conduct Commercial Litigation Rapid Assessment (CLRA) ...... 4 Activity 1.1.2 Advocate and support identified reforms to court-based commercial litigation ...... 4 Activity Area 1.2. Training of commercial judges, staff, and business support professionals ...... 5 Activity 1.2.1 Conduct TNA for commercial law training of Judges and court staff ...... 5 Activity 1.2.2 Support development of commercial law training curriculum ...... 6 Activity Area 1.3. Improve accountability, transparency, and professionalism of private enforcement profession ..... 6 Activity 1.3.1 Support strengthening of accountability system over private enforcement agents ...... 6 Activity 1.3.2 Develop capacity of Chamber of Private Enforcement Agents ...... 9 Activity 1.3.3 Build professionalism of private enforcement agents ...... 11 Activity Area 1.4. Improve business perceptions of commercial justice ...... 13 Activity 1.4.1 Conduct Commercial Justice and Business roundtables ...... 13 Activity 1.4.2 Conduct surveys of business to measure perceptions of corruption in commercial justice ...... 15 OBJECTIVE II ENHANCE COMMERCIAL LAW AND USE OF ALTERNATIVE DISPUTE MECHANISMS AND IMPROVE PUBLIC’S AWARENESS AND LEGAL LITERACY ...... 16 Activity Area 2.1. Alternative Dispute Resolution ...... 16 Activity 2.1.1 Increase reliance on arbitration ...... 17 Activity 2.1.2. Increase reliance on mediation ...... 20 Activity Area 2.2. Commercial Legislation ...... 24 Activity 2.2.1. Support anticipated legislative review committee to consider unification of commercial legislation ...... 24 Activity Area 2.3. Strategic Communication of Commercial Justice Institutions ...... 24 Activity 2.3.1 Support communication among commercial justice institutions ...... 25 Activity 2.3.2 Support communication and outreach of commercial justice institutions ...... 25 Activity 2.3.3 Support improved advocacy capacity among commercial justice institutions ...... 26 Activity Area 2.4. Public Awareness ...... 26 Activity 2.4.1 Develop and broadcast public service announcements ...... 26 Activity 2.4.2 Conduct Surveys and Focus Groups ...... 28 CROSS-CUTTING ...... 28 Activity Area 3.1. Internship Program ...... 28 Activity 3.1.1 Develop and implement Commercial Justice Academy Internship ...... 28 IV. PROGRESS ON MONITORING, EVALUATION, AND LEARNING INDICATORS ...... 30 V. PROBLEMS ENCOUNTERED DURING THE YEAR ...... 31 VI. LIST OF REPORTS AND DELIVERABLES DURING YEAR 2 ...... 32 VII. SIGNIFICANT ACTIVITIES PLANNED FOR NEXT YEAR ...... 37 ANNEX 1 – MEDIATION CASE REFERRAL DATA – Y2 ...... I ANNEX 2 – INDICATOR TRACKING TABLE – Y2 ...... II

List of Abbreviations and Acronyms ADR Alternative Dispute Resolution AFLA Agency for Free Legal Aid AI Administrative Instruction AIS Agency for Information Society AM&L Adaptive Management & Learning AmCham American Chamber of Commerce in Kosovo AMIK Association of Micro-Finance Institutions API Application Programming Interface BAR Bank Account Registry CBK Central Bank of Kosovo CEPEJ Council of Europe’s Commission for Efficiency of Justice CLRA Commercial Litigation Rapid Assessment CLTC Commercial Law Training Curriculum CMIS Case Management Information System CPEA Chamber of Private Enforcement Agents EC European Commission EMS Enforcement Management System FLPD Free Legal Professions Department FMCS Federal Mediation and Conciliation Service ICK Innovation Centre Kosova ILE Internal Learning Event ITT Indicator Tracking Table KBA Kosovo Bar Association KBRA Kosovo Business Registration Agency KCA Kosovo Cadastral Agency KCC Kosovo Chamber of Commerce KIA Kosovo Insurers Association KJA Kosovo Judicial Academy KJC Kosovo Judicial Council LEP Law on Enforcement Procedure MATS Mediation Awareness Training Series MEI Ministry of European Integration MEL Monitoring, Evaluation, and Learning MELP Monitoring, Evaluation, and Learning Plan MOC Memorandum of Cooperation MOF Ministry of Finance MOJ Ministry of Justice MOU Memorandum of Understanding MTI Ministry of Trade and Industry OCAT Organizational Capacity Assessment Tool PBC Pristina Basic Court PEA Private Enforcement Agents SDA Service Delivery Assessment PSA Public Service Announcement SCAAK Society of Certified Accountants and Auditors of Kosovo STTA Short Term Technical Advisor TNA Training Needs Assessment TOT Training of Trainers

I. Program Purpose and Approach The Commercial Justice Activity (Program) was designed to reduce opportunities for corruption and improve businesses’ and the public’s perceptions about corruption by improving commercial dispute resolution, enforcement, and fostering an understanding of the processes that enhance investment and promote economic growth in Kosovo. To achieve its objectives, the Program supports reforms on core aspects of Kosovo’s commercial justice environment: 1) improving how courts resolve commercial disputes; 2) strengthening the capacity and readiness of judges and court staff to handle commercial disputes effectively; 3) building the accountability, reliability, and professionalism of Kosovo’s private enforcement system; 4) expanding the availability of, and reliance on, alternative dispute resolution (ADR) mechanisms; 5) enhancing and harmonizing commercial legislation; 6) building the capacity of commercial justice institutions to communicate effectively; and, fundamentally, 7) improving business and general public perceptions of commercial justice in Kosovo. The Program employs a flexible, demand-driven approach that relies on constant two-way communication and collaboration among all relevant stakeholders, other donors, and USAID. With a government context that is often unpredictable and rapidly changing, the Program is designed to respond and adapt quickly to new conditions and opportunities to improve Kosovo’s commercial justice system.

II. Executive Summary Following a rapid and effective start on fast-moving reforms in its first year, in Year 2 the Program concentrated on maintaining and increasing forward momentum on its key reform areas despite significant challenges. In addition to the closures, restrictions, and substantial health hazards posed by the worldwide COVID-19 pandemic, Kosovo experienced serious governmental instability, with two successive governments dissolving and a snap election taking place late in the Program year. For much of the year, Kosovo’s government remained in caretaker status, imposing substantial impediments for decision-making on policy reforms. At the end of the Program year, Kosovo was still awaiting the expected formation of a government following the snap election. Notwithstanding these significant challenges, the Program was able to continue moving reforms forward and to achieve interim results and milestones. COVID-19 pandemic restrictions placed extraordinary pressures on business, generating the need for information about emergency governance measures and plans. Court closures and limitations deeply affected the ability to resolve business disputes. As the Program converted to remote working status during mid-March 2020 – which has continued into the following year – several opportunities arose to adapt programming approaches to address those needs. The Program pivoted rapidly to virtual platforms to conduct outreach and provide technical assistance, overcoming obstacles and, in some cases, significantly enhancing program effectiveness with creative approaches. Key interventions and milestone accomplishments during the year include: Drafting and completion of commercial court legislation. Implementing a reform design set out in a concept note supported by the Program in Year 1, during Year 2 the Program assisted an MOJ-led working group to develop a draft Law on the Commercial Court. This support was provided via working group meetings and discussions carried

1 out entirely using online platforms. The Program worked with the MOJ to conduct an inclusive public consultation campaign on the draft, developing a broad consensus among working group members and core stakeholders. The drafting process was praised by the MOJ Secretary General as: “the most consulted legal reform ever undertaken by the government”. The draft law is ready to move to the next government for further approval. Commencement of TOT program on commercial law for judges and court staff. Building on recommendations set out in its training needs assessment (TNA) conducted in the previous year, the Program formalized a process with the Kosovo Justice Academy (KJA) to design and deliver a Commercial Law Training Curriculum (CLTC) for judges and court staff. With pandemic-related restrictions in place, the Program assisted the KJA to select 18 qualified local professionals and brought them through two of three planned curriculum development trainings using a virtual workshop delivery method. The final workshop will be delivered early in Year 3, after which the trainers will finalize their course modules and prepare for CLTC delivery. The CLTC is expected to be incorporated into KJA’s training delivery program for judges, court staff, and other legal professionals. Strengthening of disciplinary process over the profession. To increase accountability of PEA’s, the Program worked with and trained the PEA’s Disciplinary Commission to better analyze complaints against PEAs and apply appropriate disciplinary sanctions, resulting in an increase in maximum sanctions applied. The Program also helped the commission develop draft standard operating procedures for internal work processes and decision templates to improve the efficiency and effectiveness. At request of the commission, the Program started incorporating the complaint process into automation that the Program is developing for the PEA profession. Finally, the Program worked with the MOJ and the Disciplinary Commission to publicize all decisions on complaints by publishing them on the MOJ’s website, increasing transparency in decision making. Development of professional standards for private enforcement agents. The Program engaged collaboratively with the private enforcement agent (PEA) profession to develop six categories of professional and ethical standards for the profession following guidance provided by the Council of Europe’s Commission for Efficiency of Justice (known by its French acronym, CEPEJ). Professional standards and performance indicators will establish a framework for quality and consistency of service. Professional standards will continue to be developed in Year 3. Development of automated Enforcement Management System (EMS) for PEA profession. Building on initial database design during the previous year, in Year 2 the Program worked with the MOJ, Chamber of Private Enforcement Agents, and individual agents to build the EMS and design web and application programming interfaces (APIs) that will connect the EMS with important public registers. This automation system will improve needed access to PEA performance information while modernizing and streaming the PEA office environment via a web based, browser- accessed application. The EMS is anticipated to be completed in the first half of Year 3. Delivery of business consultation roundtables via online streaming platform. Responding to constraints imposed by the pandemic, the Program converted its outreach approach to conduct online business and law forums in cooperation with the American Chamber of Commerce (AmCham) and the Kosovo Chamber of Commerce

(KCC). Conducted virtually using livestreaming technology, these roundtables dramatically expanded – by orders of magnitude – the Program’s outreach on topics critical to business. A total of 19 roundtables were conducted and livestreamed during the year covering a variety of commercial justice topics and generating more than 21,000 views in total. Going forward, and as circumstances allow, the Program anticipates using a hybrid approach to roundtable events, combining live audience participation with online livestreaming. Increase of civil cases referred to mediation. The Program worked with an expanding number of courts throughout Kosovo building capacity to refer cases to mediation. It also expanded its Mediation Awareness Training Series (MATS) workshop initiative to increase outreach to targeted groups. With the restrictions imposed by the pandemic, the Program worked with the judiciary to develop online mediation as a means to get around the constraints of court closures. The KJC agreed and issued a directive to court presidents to use online mediation. To further support this, the Program identified a simple web-based video conferencing platform, developed a simplified user instruction video, and worked with court clerks and mediators to understand and use online mediation. With Program assistance, despite pandemic restrictions, the number of civil cases referred to mediation increased significantly, from 70 cases in Year 1 to 164 cases in Year 2. Integration of Youth in commercial justice. The Program is implementing an internship activity to work with public and private universities in Kosovo to provide paid internship positions for their students. Opportunities include both activities on the Program, directly, as well as rotating placements at key counterparts. In Year 2, the Program employed 14 interns, including placements at the PBC, Peja Basic Court, MOJ, Kosovo Justice Academy (KJA), Chambers of Commerce, Kosovo Bar Association (KBA), and in the CJA program itself. The Program conducted training and mentoring sessions with each group of interns, and invited interns of other USAID Rule of Law Activities – JSSP and Justice Matters – to join in several of these sessions. The continued learning sessions are designed to serve as inspirational and practical learning opportunities for future leaders of commercial justice in Kosovo.

III. Progress on Activities and Tasks The Program is organized into two core objective areas: I) Strengthening Kosovo’s Capacity to Resolve Commercial Disputes and Enforce Judgments; and II) Enhancing Commercial Law and Use of Alternative Dispute Mechanisms and Improving Public Awareness and Legal Literacy. Except as specifically noted otherwise, this report is structured to address activity areas, activities, and sub-activities as they are set out in the Program’s approved work plan.

OBJECTIVE I STRENGTHENING KOSOVO’S CAPACITY TO RESOLVE COMMERCIAL DISPUTES AND ENFORCE JUDGMENTS

Objective 1 of the Program addresses court-based commercial justice, supporting improved court processes and structure, providing specialized judicial training on commercial topics, strengthening capacity and accountability in enforcement, and building business confidence in commercial justice processes and institutions.

Activity Area 1.1. Improve Resolution of Commercial Disputes in Court All of Kosovo’s commercial cases in court are currently handled by the Commercial Department of the Pristina Basic Court (PBC), which has case resolution times of approximately two years for each case. Business complaints for administrative decisions go to the Administrative Department of the PBC, which is badly overloaded and has even slower case resolution times. Because of the outsized impact that access to commercial justice has on Kosovo’s economic environment and investment climate, the need to reform these dispute resolution institutions is recognized as urgent by all stakeholders, and, despite current government instability, reforms in this area are being treated as an immediate priority by all major political parties. During its first year, the Program had supported government institutions, the judiciary and legal professions, and business stakeholders to examine reform options. The Program found universal support for establishment of a stand-alone commercial court and assisted stakeholders to develop a comprehensive Concept Note defining the scope of the reform. The Program’s activities during Year 2 of the Program encompassed development of a draft law to implement that reform option. Activity 1.1.1 Conduct Commercial Litigation Rapid Assessment (CLRA) This Activity was completed in Year 1. Activity 1.1.2 Advocate and support identified reforms to court-based commercial litigation In Year 1, the Program supported the MOJ in developing a Concept Note on Judicial Reform of Commercial Justice (the Concept Note), which recommended development of legislation to establish a standalone commercial court. On April 23, 2020, during the Program’s Year 2, the Government of Kosovo adopted the Concept Note. The MOJ then undertook development of draft legislation through a working group with broad stakeholder representation. As described in the sub-activities below, the Program supported the working group to develop, solicit comment on, and incorporate changes to a draft Law on the Commercial Court.

Sub-Activity 1.1.2.1 Support MOJ to design and draft legislation for the establishment of a Commercial Court The Program supported the development of the draft-law under two different Ministers of Justice during Year 2. Following the adoption of the Concept Note early in the year, the MOJ’s Secretary General appointed the Ministry’s Legal Department to develop, with Program support, an initial draft Law on the Commercial Court. With the inclusion of the draft-law in the Government’s annual legislative agenda, the MOJ established a formal working group for developing the draft-law. The working group was led by a Deputy Minister of Justice, and the group’s membership encompassed representatives of the MOJ Legal Department, KJC, judges, Kosovo Bar Association (KBA), American Chamber of Commerce (AmCham), Kosovo Chamber of Commerce (KCC), and external stakeholders. Program support included mapping the legislative drafting process and setting an associated timeline, organizing four extended online working group sessions for developing the law and providing STTA assistance through its Senior Court Administration Advisor. Following completion of an initial draft, the Program supported the working group to conduct an inclusive and participatory consultation process on the draft law. The public consultation phase attracted significant input from a broad base of stakeholders, including institutions and international partners, business representatives and civil society. The Program logged all stakeholder comments received in a single table accessible to all working group members.

To complete the draft of the law, the Program worked jointly with the MOJ Legal Department to analyze received stakeholder input and proposed options for updating and finalizing the draft-law. As the consultation period was proceeding, the government fell, and new elections were announced to take place late in Quarter 4. Despite this setback, the Minister, in his caretaker capacity, declared the draft law finished and ready to be submitted for review and adoption by the next government to be formed after elections. The Program undertook additional activities to support the draft law effort during Year 2. To lay the groundwork for speedy establishment of the commercial court after the adoption of the draft-law, the Program initiated drafting of an implementation plan for the draft law, including suggested interventions that the Program and the relevant institutions should contemplate as the draft law moves forward. In particular, the Program developed a process map of the existing litigation process in the Commercial Department and Fiscal Division of the Administrative Department at the PBC and in the Commercial Department of the Court of Appeals. The process maps help identify discrepancies and opportunities for efficiency gains to be factored into the future commercial court’s processes.

Sub-Activity 1.1.2.2 Support MOJ to advocate commercial court reform In Year 2, Program advocacy assistance focused on broadening and strengthening support in the legal and business community for the commercial court as presented in the draft-law. The Program organized a series of virtual roundtables with the American Chamber of Commerce (AmCham) and the Kosovo Chamber of Commerce to discuss the critical challenges posed by the current court setup and how the draft law would address those challenges effectively. The Minister of Justice, KJC representatives, judges, lawyers, and business representatives joined the virtual roundtables as panelists. For advocacy events, such as the virtual roundtables, the institutional representatives worked from a Common Message statement that the Program developed with the MOJ. The Common Message set out a simple, clear statement on why the commercial court is needed, what the commercial court would offer to businesses and citizens, and how it would contribute to Kosovo’s rule of law and economy. The Common Message also identifies and rebuts potential opposing arguments to the commercial court reform. The Program also completed an Explanatory Note to provide context and rationale for key parts of the draft law. The Explanatory Note will serve as a tool to develop strategic advocacy capacity of the Ministry in support of this legislation as the draft-law moves forward to the government and then to the Assembly.

Activity Area 1.2. Training of commercial judges, staff, and business support professionals In Year 2, the Program completed a Training Needs Assessment (TNA) begun during Year 1 and, based on the TNA’s findings, began work with the Kosovo Justice Academy (KJA) to develop a curriculum to train judges and court staff on commercial law topics. The Program entered into a Memorandum of Cooperation (MOC) defining a plan and process to in develop a commercial law training curriculum (CLTC) through a Training of Trainers (TOT) program. Activity 1.2.1 Conduct TNA for commercial law training of Judges and court staff The Program completed the TNA process that began in Year 1 by soliciting stakeholder input on the draft and building institutional awareness and buy-in at the KJA and KJC. The

5 finalized TNA guided the Program in setting the scope and scale of the CLTC (Activity 1.2.2, below). Activity 1.2.2 Support development of commercial law training curriculum To implement the recommendations in the TNA, the Program and the KJA entered into a Memorandum of Cooperation (MOC) to establish protocols and processes to develop the CLTC. This included processes to jointly select candidates, guide them through the process of developing individual training modules – multi-day courses comprising the CLTC. To ensure a transparent recruitment process, the Program initially developed eligibility and selection criteria for prospective local instructors to participate in the TOT Program. The KJA then, through a Selection Committee that it established, selected 18 professionals from various professions, such as judges, attorneys, academics, and other commercial justice professionals. Because of COVID-19 restrictions, in-person training was not possible during Year 2. Consequently, the Program, with STTA support, conducted the first two of three planned, four-day TOT curriculum development workshops virtually. The workshops centered around developing 11 commercial law training modules identified in the TNA. In parallel, the TOT program candidates were equipped with trainer skills to effectively teach their respective training modules to judges and court support staff in the future. The candidates also had the opportunity to discuss current commercial law developments through guest lectures with commercial law practitioners. The CLTC will become an integral part of KJA’s training delivery program for judges, court staff, and other legal professionals. In Year 3, the program candidates will complete their final four-workshops and then deliver initial pilot trainings for judges and court support staff. The CLTC is expected to be included as part of KJA’s training delivery program for judges, court staff, and other legal professionals.

Activity Area 1.3. Improve accountability, transparency, and professionalism of private enforcement profession The Program provides technical assistance to the MOJ to build effective accountability systems over the private enforcement profession and supports the Chamber of Private Enforcement Agents (CPEA) to develop its capacity and sustainability as a self-governing body of the profession. In Year 2, the Program supported training of newly appointed members of a Disciplinary Commission over Private Enforcement Agents (PEAs), facilitated development of professional standards for the PEA profession, supported organizational planning of the CPEA, and started development of an automated case management system for the enforcement profession. Details are set out in the activities and sub-activities below. Activity 1.3.1 Support strengthening of accountability system over private enforcement agents The Program’s accountability support addresses agent inspections and discipline systems.

Sub-activity 1.3.1.1 Support capacity building of new MOJ Inspection Division In the past, Private Enforcement Agent (PEA) inspections were carried out by an ad hoc inspection committee within the MOJ. Under the amended Law on Enforcement Procedures (LEP), the MOJ is now staffing an Inspection Division that was established under the law. While a Head of the Inspection Division was appointed to this office in 2019, the three remaining positions remain vacant. Without appropriate staff to train in the Division, the Program shifted its approach to include the Head of the Inspection Division in training that

6 the Program organized for the Disciplinary Commission, discussed below in sub-activity 1.3.1.3. Once the new government is formed, the Program will again raise the importance of filling the Inspection Division positions as one of the accountability priorities for the new Minister of Justice to consider.

Sub-activity 1.3.1.2 Support restructuring of tariff for private enforcement services Under a 2017 amendment of the Law on Enforcement Procedure (LEP), the tariff structure for fees that agents can charge for their services must be amended. Some PEAs strongly object to the required new fee structure. In particular, they object to a new requirement that performance fee commissions be negotiable, rather than set out as a flat amount in the tariff. Despite PEA pushback, the Minister of Justice established a working group to amend the Administrative Instruction (AI) on Tariffs for Private Enforcement. At the MOJ’s request, the Program undertook to support the working group. The Program delivered research analysis on comparative regional state practice on enforcement tariffs against standard of living and average wage metrics. The analysis compared enforcement fee structures and costs of Albania, Bulgaria, Montenegro, North Macedonia, and Serbia. The analysis also identified legal ambiguities and gaps in the existing AI and provided recommendations to address them through the new AI. The MOJ also submitted a written request to the Program requesting the development of a study of actual costs experienced by PEAs in Kosovo to inform the drafting of the AI on Tariffs. Through a subcontractor, the Program commenced the development of the Cost Study, which will identity and analyze actual costs PEAs incur in offering their services, allowing the future AI to set out a new tariff structure that is based on evidence. The Program commissioned the study after receiving reasonable assurance from the MOJ that it would secure in-person interviews with 12 PEAs across Kosovo. Planned for completion early in Year 3, the Cost Study findings will rely on a questionnaire and follow-on in-person meetings with 12 PEAs operating across Kosovo to understand cost structures and operational/financial processes. The Cost Study process will follow a technical scope developed in coordination with the MOJ, the CPEA, and Society of Certified Accountants and Auditors of Kosovo (SCAAK).

Sub-activity 1.3.1.3 Train Disciplinary Commission on its roles and responsibilities over the private enforcement profession Following the unexpected early dismissal, during Year 2, of the Disciplinary Commission members by the Minister of Justice, the Program adapted its approach by developing an inventory of issues in the disciplinary system for PEAs and used that as a basis to train the new members. The Program, with the support of its Senior Enforcement Expert STTA, held VTC working sessions with the MOJ Legal Department and Free Legal Professions Department to complete an initial draft of the inventory of issues in disciplinary system over PEAs. The inventory identified challenges and provides recommendations for the entire disciplinary review process, including screening of complaints, disciplinary proceedings, enforcement of disciplinary decisions, and administrative disputes against disciplinary decisions. It also identifies legal gaps and uncertainties of the LEP regarding the disciplinary system over PEAs. After developing the inventory, the Program conducted several activities to support the MOJ and the newly established Disciplinary Commission over PEAs in implementing the recommendations deriving from the inventory. The Program conducted an introductory, virtual workshop with newly appointed members of the Disciplinary Commission over PEAs

7 and representatives of the MOJ Free Legal Professions Department (FLPD) to present the identified issues and recommendations to improve the disciplinary system over PEAs. Following that, the Program conducted three additional workshops with the Disciplinary Commission on international principles and best practices in the disciplinary system, organizational aspects, the normative framework in Kosovo, and disciplinary case studies. The workshops were designed to improve the accountability of PEAs by training newly appointed members of the Disciplinary Commission on the disciplinary system, including the application of sanctions in proportion with violations committed by PEAs. In addition, with STTA support, the Program conducted a working meeting with the Disciplinary Commission and MOJ’s Free Legal Professions Department to develop standard operating procedures on internal work processes of the Disciplinary Commission, and associated decision templates to improve the efficiency and effectiveness of the Commission. In response to a written request for support by Disciplinary Commission during Year 2, the Program also commenced assistance in developing a database for the disciplinary proceedings that will be composed of four parts: 1) relevant legislation; 2) past and current Commission members; 3) unified templates for work processes and decisions; and 4) a registry of all decisions. Because of COVID-19 restrictions, the Chairperson of the Disciplinary Commission also requested assistance from the Program to develop capacity to conduct virtual hearings for disciplinary proceedings. In response, the Program supported development of a draft practical guide on online disciplinary hearings. As a result of the above assistance, the Disciplinary Commission imposed two 3,000 EUR fines (the maximum allowed by law). This is significant, as the Commission has imposed the maximum financial penalty only four times since the Program began providing trainings to its members in 2019. Prior to Program trainings, the Commission had issued the maximum penalty only once since 2014. This increase in enforcement fines indicates a substantial improvement in the accountability environment of PEAs.

Sub-activity 1.3.1.4 Support design of processes and templates for screening of complaints to MOJ regarding enforcement The Program supported the MOJ FLPD in drafting a standard complaint template to properly report PEA violations and misconduct. In parallel, the Program raised at the MOJ Secretary General level the absence of complaint procedures in the MOJ as a significant issue to address. Even though the MOJ FLPD has argued that the LEP prevents them from developing internal processes for handling complaints, the Program continued to raise the absence of a process guide as a worrying accountability gap. The Program developed a process guide setting up detailed procedures and template forms to handle all received complaints. In Year 3, the Program will rely on the process guide it developed in designing an additional module under the Enforcement Management System (EMS) for handling complaints. The Program’s EMS development support is detailed below, at sub-activity 1.3.3.2. Upon the recommendation of the Program made based on the provisions of the LEP, the MOJ Free Legal Profession Department (FLPD) stopped filtering enforcement complaints and now passes all of them directly to the Disciplinary Commission. The Program also collected data from the MOJ Free Legal Professions Department on the number of complaints received annually by parties. The MOJ published on its official webpage a total of 28 decisions issued by the Disciplinary Commission. Out of 28, 11 decisions impose fines and warnings to PEAs. These decisions were published after the Program advocated publishing all decisions pursuant to LEP requirements. The Program also supported the MOJ

8 in developing a comprehensive landing page on the MOJ website that allows legal professionals and citizens to learn about MOJ’s private enforcement policies and actions. Activity 1.3.2 Develop capacity of Chamber of Private Enforcement Agents Even though the CPEA was established in 2015, it remains in the early stages of development. The Program has directed its support for the CPEA toward enhancing its self- governance capabilities through improved strategic, financial and communication planning that contributes to CPEA’s journey to self-reliance. The CPEA has commenced relying on processes and templates developed with Program support, including for its communications, financial and annual planning and reporting. The Assembly of the CPEA held an annual meeting in January 2021 for electing a new Executive Board and Control Council. The newly elected Executive Board, comprised of four re-elected members and three new members, reappointed the sitting CPEA president for an additional term. This activity is broken out into sub-activities below.

Sub-Activity 1.3.2.1 Support strategic planning capacity the Chamber of Private Enforcement Agents The CPEA has a Mission-Vision-Values statement and strategic objectives. After appointment of the Director of Professional Services (Director) during Year 1, the Program shifted its approach to focus instead on guiding the CPEA through an annual Organizational Capacity Assessment Tool (OCAT) process (addressed under sub-activity 1.3.2.5). Support under the current sub-activity converted to periodic coaching of the Director and Executive Board members following the first OCAT session, to implement the plans made during the OCAT process. The Program also provided support to the Director of the CPEA to implement the annual work plan activities. Deliverables stemming from coaching sessions include the development of a template that sets the scope and scale of a future draft Regulation on the Work of the CPEA Assembly and developing and populating data to the registry of private enforcement agents pursuant to Article 334 of the LEP, which obliges the CPEA to develop and maintain the registry. The Program may continue with support during Year 3 if requested by the upcoming Executive Board.

Sub-activity 1.3.2.2 Support update of organizational structure and processes of Chamber The CPEA continues to operate under its Interim Statute (Charter) and Code of Ethics. The Program, with the support of its Senior Enforcement Expert, provided concrete recommendations for the CPEA to revise the Interim Statute to better define and clarify the role authorizations and responsibilities of the CPEA and its bodies, and concrete recommendations to revise the Code of Ethics as an important framework for professional PEA behavior. The CPEA has yet to move forward with revising the Statute and the Code of Ethics. In Year 3, the Program will advocate that the CPEA and the MOJ complete and approve the Statute of the CPEA and Code of Ethics of PEAs.

Sub-activity 1.3.2.3 Support development of guidance policies of the CPEA Lack of uniform PEA reporting prevents the MOJ and the public from having accurate PEA performance indicators. In Year 2, the Program worked with the CPEA and developed a standardized reporting template for PEAs to use for their annual reporting requirements. The annual report template is intended to improve PEA reporting prior to introducing the automated Enforcement Management System (EMS). The Program also supported the CPEA in developing a draft policy on compliance with the Bank Account Registry of the Central

Bank to collect against bank accounts and a policy on protection of data by agents and the CPEA. The draft policy introduces security rules and procedures for PEAs to access and use the electronic system of the Bank Account Registry of the Central Bank. Finally, the Program supported the CPEA in developing a guidance policy manual with templates for the processes and tracking of complaints made to the CPEA regarding enforcement. In Year 3, the Program plans to integrate the guidance policy into the EMS.

Sub-activity 1.3.2.4 Support CPEA develop strategic communications capacity The Program supported drafting revisions and updates to the CPEA’s communications strategy and action plan, though they remain to be adopted by the CPEA Executive Board. The Program organized two coaching sessions for the CPEA’s operational staff for proper implementation of the strategy and action plan. The coaching sessions prompted discussion on the need for unified communication templates for more effective internal and external communications. The Program then supported the CPEA in developing unified templates for the annual bulletin, annual report, press releases, crisis communication template, invitations and agenda template, media contact list, template of certificate of appreciation, info-graphic templates and media monitoring templates. The templates were subsequently incorporated to the draft Communications Strategy. The coaching sessions helped the CPEA staff implementing communications plan on its own, despite lack of formal adoption. In Year 3, the Program will continue to advocate for the approval of the updated CPEA’s Communications Strategy and dedicate resources for engaging a communications specialist.

Sub-activity 1.3.2.5 Support development of organizational self-assessment of the Chamber of Private Enforcement Agents Despite six years of existence, the CPEA still displays a low level of organizational capacity as a professional self-governance institution. Instead, it tends to focus on issues of the day rather than establishing a professional governance environment for the private enforcement profession. To help the CPEA develop an enhanced awareness of its level of development and greater understanding of its responsibilities and opportunities, in Year 1, the Program facilitated the CPEA to conduct an Organizational Capacity Assessment Tool (OCAT) exercise. During Year 2, the Program supported the CPEA by offering guidance to implement the action plan developed under first OCAT. Later in Year 2, the Program worked with the CPEA Director to develop an OCAT questionnaire, so that the CPEA could self-evaluate its organizational capacities, institutional abilities, systems, procedures, and policies in several capacity areas: governance; legislative framework and initiatives; organizational management; CPEA’s accountability and performance; human resources; communication strategy; advocacy planning; financial management; and internal control systems. The CPEA then conducted a second annual OCAT workshop exercise, with the Program assuming an active monitoring role. Under this role, which involved providing guidance and prompting, but leaving core actions to be conducted by the CPEA itself, the CPEA identified and undertook a wide array of follow-on activities as listed in the action plan developed, such as the supervision of PEA offices and a mandatory continuing training program for PEAs. The CPEA also formalized its relations with a wide array of institutions for more effective information acquisition, including the Kosovo Customs, Kosovo Judicial Council, Kosovo Prosecutorial Council, and the Cadastral Agency of Kosovo. In Year 3, the Program will further reduce its role by only observing the CPEA going through the OCAT process, and without Program involvement.

Activity 1.3.3 Build professionalism of private enforcement agents The Program supports increased professionalism and responsiveness of private enforcement agents by assisting the profession to design and adopt modern professional standards and develop case management automation. This activity is broken out into sub-activities below.

Sub-activity 1.3.3.1 Support design and adoption of professional standards for the private enforcement profession The Program is working with the MOJ, CPEA and select private enforcement agents, and other stakeholders to develop professional standards and performance indicators for the profession, following guidance provided by the Council of Europe’s Commission for Efficiency of Justice (known by its French acronym, CEPEJ). The Program, with Senior Enforcement STTA offsite support, developed a plan that maps the process and suggests a timeline for developing PEA professional standards. The Program subsequently held an online working meeting with the PEA working group on professional standards. The attendees, including the head of the MOJ Inspection Division and CPEA Executive Director, went through the initial set of 23 draft professional standards provided by the Program. The Head of MOJ Inspection Division and a representative of the CPEA Executive Board volunteered to serve as points of contact for soliciting further input among MOJ personnel and PEAs on the scope and content of the professional standards identified. The Program also undertook to develop a training video on professional standards as an advocacy tool to explain the need for standards and attract greater participation of PEAs in the development of professional standards. With support of its Senior Enforcement Expert STTA, the Program supported the development of six categories of professional standards. The Program prioritized the following six categories of professional standards that, if implemented across PEA offices, would make the PEAs effective users of the future EMS and, in turn, deliver professional services to creditors and debtors: 1) initiation of cases; 2) case management; 3) closing of files; 4) archiving; 5) compliance; and 6) automation. To develop professional standards, the Program, with STTA support, conducted three virtual workshops with the informal working group, comprised of the MOJ Legal Department, Free Legal Professions Department, Inspection Division, Chamber of Private Enforcement Agents, and individual PEAs. Professional standards and performance indicators will establish a framework for quality and consistency of service. In Year 3, the Program, with support of its Senior Enforcement Expert STTA, will support designing other categories of professional standards presented in the Plan on process and timelines for establishing professional standards.

Sub-activity 1.3.3.2 Support development of case management automation for private enforcement agent profession The Program is supporting the CPEA and the MOJ in developing an Enforcement Management System (EMS) application to improve access to PEA performance information. This system will modernize and streamline the PEA office environment, from case intake to enforcement activity, to case closure, and detailing financial transactions, all through a web based, browser-accessed application. During Year 2, the Program formed a development group consisting of representatives of the CPEA, PEAs, MOJ, and the Program Team. EMS development is being carried out principally by the Program team, with a portion carried out through a subcontractor. The

Program team, through its Automation Development Manager, developed the data flow (logic) of the system, as well as the database consisting of tables, stored procedures, functions, and reports. The Web and API interfaces are being developed by the subcontractor following specifications designed by the Program and managed closely by the Automation Development Manager. The Program presented to the MOJ the EMS features relevant for its oversight function and discussed the future ownership of the EMS. Concomitantly, the Program also briefed the CPEA on advantages of the EMS. The Program, in cooperation with CPEA, met with the Kosovo Cadastral Agency (KCA) to present the Enforcement Management System (EMS). The CPEA and KCA have signed a Memorandum of Understating (MOU)to establish cooperation between the PEAs and to have access to cadastral records for their enforcement activities. The Program participated in a KCA training by invitation of the CPEA to learn about KCA technical and operational processes, as well as PEAs’ requests towards this Agency. Through virtual meetings, conducted by the Program, the members of the MOJ, CPEA, and PEA Development Group provided input on their respective EMS modules. The PEAs agreed on the functions of their module. The PEAs requested to add an additional function for the PEA module of EMS to create automatic request/notification to the Bank Account Registry (BAR) for changes in debtor accounts that affect enforcement. The CPEA also agreed on the function of its module and requested two additional functions: 1) to secure more equitable distribution of cases within regions; and 2) to condition PEA usage of the EMS on payment of the CPEA annual membership fee. The Program prepared and shared with the MOJ Development Group an initial draft of the process flow for the Disciplinary Case Module of the EMS. The process flow identifies each step of handling a complaint from filing to archiving. To present and discuss the draft of the process flow for the Disciplinary Case Module of the EMS, the Program held a meeting with the MOJ Development Group and went through proposals for process flow and mockup details of module interfaces. Several meetings were conducted with key institutions on the Development of EMS. The Program met with the Kosovo Cadastral Agency to find ways for communication of EMS with the KCA system. The Program also had a meeting with the Agency for Civil Registry, which expressed willingness to collaborate on connecting the EMS for data exchange. The Program decided to connect all public agencies through a Government Gateway located in the Agency for Information Society (AIS). AIS is willing to support EMS and is willing to develop those services even for the agencies that they do not otherwise communicate with. In Year 3, the Program will develop specific process flows and mockups of the PEA, CPEA, and MOJ modules. During development of the EMS, the Program will conduct workshops with the EMS development group.

Sub-activity 1.3.3.3 Support development of training capacity of private enforcement agents The Program plans to provide training to PEAs and stakeholders on the EMS when development is completed during Year 3.

Activity Area 1.4. Improve business perceptions of commercial justice Despite recent positive movements on international indicators, such as the World Bank annual report on Doing Business, commercial justice institutions are still very negatively viewed by Kosovo’s key economic stakeholders—businesses. This has a substantial impact on the business climate, and therefore on the outlook on quality of life in Kosovo going forward. Results of a 2020 survey conducted by the American Chamber of Commerce in Kosovo (AmCham) provide stark evidence the business sector’s low opinions of Kosovo’s commercial justice institutions: 97% of business either completely do not trust courts or only partially trust the courts. The negative effect these perceptions have on businesses’ participation in the economy feeds a vicious cycle, reinforcing negative performance. Program activities seek to disrupt this cycle through technical interventions in each area of commercial justice and through extensive outreach to business promoting awareness of those interventions and engaging business in shaping commercial justice. The details of interventions are set out in the activities below: Activity 1.4.1 Conduct Commercial Justice and Business roundtables To build awareness and engage the busines community, the Program developed a business consultation roundtable concept and began organizing and holding roundtables in close cooperation with AmCham, the Kosovo Chamber of Commerce (KCC), and industry associations. As the effects of the COVID-19 preempted plans to conduct in-person business consultation roundtables, the Program rapidly converted its roundtable approach to a virtual livestreaming platform, working together with AmCham and KCC. Virtual business consultation roundtables were conducted, to cover essential commercial justice topics faced by private sector under great stress during COVID-19 restriction measures. The roundtables were broadcast via livestreaming on AmCham’s, KCC’s, and Gjirafa’s websites, as well as social media platforms, such as Facebook and LinkedIn. More details on the business consultation roundtables are as below: 1. April 28, 2020: “How are courts handling commercial cases during the crisis?” As the courts were handling only the urgent cases, such as domestic violence and detention, this topic draw private sector attention, as they had an opportunity to hear and discuss with the head of Commercial Department of Pristina Basic Court and the head of Fiscal Division of Pristina Basic Court the management of business cases and court decisions during the crisis. The need for online solutions was raised among private sector representatives. 2. May 5, 2020: “Handling Enforcement Cases in time of emergency”. The panel was comprised of representatives of the MOJ FLPD and the President of the Chamber of Private Enforcement Agents. The discussion focused on the enforcement of business requests during the crisis and the need for online solutions. Businesses asked questions about case management and decisions during the pandemic period. 3. May 12, 2020: “Women in business during the crisis, challenges and management”. The panel consisted of female business owners. The discussion focused on business challenges in general with a special focus on businesses owned by women during the crisis and the need for online solutions. Businesses raised discussions on the disputes not settled in the courts during COVID-19 and in general on the problems they faced. 4. May 19, 2020: “Force Majeure clauses in Contracts – usage and challenges”. The panel consisted of two attorneys, members of the Kosovo Bar Association, and

discussion focused on the challenges faced by businesses during crisis and the actions foreseen in such situations. The panelists also discussed the disputes not addressed in the courts during COVID-19 and in general the problems businesses face. 5. June 3, 2020: “Mediation as an effective tool for dispute resolution”. The panel consisted of the Deputy Chair of the KJC and the President of the Mediators Chamber. Discussion focused on the challenges of courts and mediation during the pandemic and the foreseen actions taken in such situations. The panelists also discussed the low number of civil cases referred to mediation and encouraged judges, businesses, and citizens to resolve their disputes through mediation as a very effective tool. During the roundtable, the panelists highly praised the benefits of mediation, the chance to use online mediation, and support of KJC for better services on mediation. 6. August 5, 2020: “The Economy during Covid-19 Pandemic: How will the Commercial Court Help?” The panel consisted of the Minister of Justice and a Court of Appeals Judge, moderated by the President of the KCC. The discussion focused on the challenges of courts on dealing with commercial cases in general and during the pandemic crisis and the actions foreseen in such situations. The panelists highly supported the steps undertaken and support provided by the Program on the draft Law on the Commercial Court. 7. August 12, 2020: “The Economy during COVID-19: The Role of Enforcement Proceedings”. The panel consisted of the MOJ General Secretary, the President of the CPEA, a business representative and was moderated by KCC President. The panelists discussed the challenges behind the execution of enforcement titles due to the pandemic and actions that the MOJ and Chamber could undertake to make the enforcement profession more responsive during and after COVID-19. 8. August 25, 2020: “The Economy during COVID-19: The Need for Online Alternatives in the Judiciary”. The panel consisted of a Basic Court Pristina – Fiscal Division judge and an attorney and was moderated by KCC President. The panelists discussed the challenges of the judiciary during COVID-19, and the use of online measures as an alternative to resolve court cases. The need to improve courts efficiency and equipment for online solutions was raised. 9. September 3, 2020: “The Economy during COVID-19: ‘Contract law’”. The panel was moderated by KCC President, with two panelists: an attorney at law and a representative of the Gastronomic Association of Kosovo. The panelists discussed the importance and the need for businesses and commercial lawyers to draft more inclusive force majeure clauses in future business contracts. 10. September 29, 2020: “The Economy during COVID-19: ‘The need and opportunities for online arbitration and mediation’”. The panel was moderated by the KCC Arbitration Tribunal Secretary with the panelists consisting of a Program representative, a mediator, and a business representative. The business representative shared the experience of having an arbitration case administered by KCC Arbitration Tribunal. The panelists discussed the use and benefits of such mechanisms for the businesses. Key takeaways focused

on the need for development of online mechanisms for arbitration and the usage of current online mediation platform. 11. October 16, 2020: “Business and Property Rights – Challenge and Opportunities”. The panel was moderated by the Secretary General of AmCham’s Arbitration Centre and panelists consisted of the USAID Private Enterprise Officer, a business representative from a construction company, and an attorney at law. The discussions raised were the challenges and opportunities of businesses for property rights and recommended solutions to address such problems, from the private sector engagement concept. In total, the business consultation roundtable discussions above have attracted 7,860 views so far.1 AmCham continually organizes livestream business consultation roundtables and is becoming a great platform for the private sector to engage. For example, AmCham organized an event where businesses listed a number of issues for the future government to prioritize to help the private sector overcome the COVID-19 crisis. One of the priorities the private sector outlined for the future government was the creation of the commercial court. Obtaining stakeholder feedback is a key element of the Program’s approach. As part of the initial Business Consultation Roundtable series, the Program developed an Adaptive Management and Learning (AM&L) data entry tool and piloted it at the roundtables. This learning tool helped the Program in capturing stakeholder input at roundtables and adapting activities so that the concerns raised by stakeholders are identified and evaluated by the Program and, in some cases, used to adapt approaches. In the next Year, the Program will continue to support both Chambers in organizing virtual/live stream business consultation roundtables on different topics concerning the private sector and the business community in general. Activity 1.4.2 Conduct surveys of business to measure perceptions of corruption in commercial justice As with the previous year, in Year 2, the Program supported AmCham in conducting a corruption perception survey among business. The results were reported in AmCham’s 2020 Corruption Perception Study, published on December 9, 2020 to mark International Anti-Corruption Day. The Program also participated in an event to publicize the results, presenting in panel jointly with AmCham. The 2020 study was based on a survey of 364 respondents, representatives of businesses from various sectors of the country, which is a sample size significantly larger than in the previous years. A summary of some of the most notable results of the survey are as follows: - Both COVID-19 and corruption were identified almost equally as the main issues faced by business, with each issue chosen by over 57% of the respondents in a question that allowed respondents to choose more than one issue among a list of ten. Lack of foreign direct investment (42%) and inefficient judicial system (39%) scored the next highest numbers of responses. - Only 3% of respondents reported “yes” to the question of whether they trust the judicial system, a significant drop from 14% recorded in the 2019 survey. Nearly 50% of respondents answered “no” to the question, which is a substantial increase over

1 The data was retrieved on March 29, 2021 from video.gjirafa.com and from AmCham Kosovo’s Facebook page. 15

the 27% reported for that response in the 2019 survey. Those reporting that they “partially” trust the justice system decreased from 59% in 2019 to 47% in 2020. - Around 42% of respondents reported believing that corruption has increased over the last five years, which is similar to the rate of responses from the previous year’s study. - 38.24% of respondents believe that the outbreak of the pandemic has significantly increased corruption. - Both weak rule of law (81%) and lack of will to fight corruption (80%) were the top two chosen factors perceived as contributing to corruption. The score for weak rule of law marks a 16% increase compared to the same question in AmCham’s 2019 Study. - In addition, 50% of respondents claimed that they do not believe enforcement mechanisms – i.e., police, prosecutor’s office, and courts in Kosovo – are effective in the fight against corruption, an increase over 45% reported for the same question in the 2019 survey. - This year’s survey found that the percentage of those who claim to have reported corruption to the Anti-Corruption Agency increased from 7% to over 22%, compared to 2019. Given the prompt adaptations that were required because of the COVID-19 pandemic restrictions, the data was collected solely online and by AmCham staff only – to ensure data quality and no outside party engagement. The study can be found in the link https://www.amchamksv.org/wp-content/uploads/2020/12/2020-Corruption-Percpetion- Study-1.pdf.

OBJECTIVE II ENHANCE COMMERCIAL LAW AND USE OF ALTERNATIVE DISPUTE MECHANISMS AND IMPROVE PUBLIC’S AWARENESS AND LEGAL LITERACY

Objective 2 of the Program addresses commercial justice outside of the courts, supporting increased reliance on arbitration and mediation, harmonizing commercial legislation, and building strategic communication capacity within commercial justice institutions. It combines these reform areas with outreach to build the public’s awareness and understanding of commercial justice and its role in Kosovo’s society and economy.

Activity Area 2.1. Alternative Dispute Resolution The European Commission’s (EC’s) Kosovo 2020 Report, as in previous reports, urges that Kosovo step up efforts to reduce the backlog of court cases, including using alternative dispute resolution (ADR) – arbitration and mediation – and that ADR opportunities be properly financed and promoted. The report pointed to awareness-raising campaigns and training activities carried out in 2019, emphasizing the positive first steps for online mediation that started in early 2020 - all activities conducted by the Program in 2019 and 2020. Greater use of ADR by litigants will necessarily provide relief to Kosovo’s overburdened courts. The Program will continue to support increasing reliance on each of these methods.

Activity 2.1.1 Increase reliance on arbitration The Program’s baseline study in Year 1 found that businesses largely lacked information about arbitration and very few had used it, while a large majority of the public had never heard of it. To address these findings and increase awareness on arbitration, during Year 2, the Program, in cooperation with AmCham and KCC, began discussions on ways to improve arbitration in Kosovo by assessing the service delivery of the arbitration centers. The assessments were designed to analyze statistical data for cases administered so far by the tribunals, identify possibilities to improve the service delivery, and make recommendations for improvement. The Program also initiated several awareness building activities, notably an intensive roundtable series with businesses to build awareness and understanding of, and reliance on, arbitration. In addition, the Program supported AmCham to re-launch the Arbitration Journal of AmCham, which is expected to publish the latest research papers and articles on arbitration and will serve as an outreach and informative tool for businesses on alternative dispute resolution mechanisms. The Program’s arbitration support work is set out in the sub-activities below.

Sub-activity 2.1.1.1 Work with industry associations to advocate use arbitration clauses in contracts and more actively market arbitration among members To increase the awareness and use of arbitration and its procedures among businesses, the Program conducted several virtual meetings and roundtables with industry associations. This effort resulted in the Kosovo Insurance Association (KIA) drafting, with Program assistance, and adopting a guideline for use of ADR clauses in contracts. The guideline advises KIA’s members (insurance companies) on the opportunities and benefits of using arbitration as an alternative mechanism for dispute resolution. The guideline was distributed to insurance companies to encourage inclusion of arbitration clauses in their contracts. Due to the importance and role of the banking sector to businesses in Kosovo, the Program also worked with the Kosovo Banking Association to promote the inclusion of arbitration clauses in banking sector contracts and agreements with businesses. The Program worked closely with both associations since both provide financial services and are regulated by the Central Bank of Kosovo (CBK). The Program’s coordination effort with the CBK focused on its role, as regulator, to build awareness of arbitration in the banking and insurance sectors. The CBK included advice on using arbitration as a dispute resolution method in their template response provided to parties filing complaints with the CBK against decisions taken by banks and insurance companies. The Program conducted eight roundtable discussions with businesses on arbitration to promote and discuss opportunities to use arbitration clause in contracts. More details on the roundtables are as follows: 1. May 26, 2020: “Arbitration: An Opportunity for Dispute Resolution in the Insurance and Banking Sectors". The roundtable included representatives of the CBK, the KIA, the Kosovo Banking Association, and AmCham. Discussion focused on the challenges the insurance and banking sectors have with a high number of unresolved court cases and the benefits that greater reliance on arbitration would bring. 2. November 13, 2020: “Arbitration as an opportunity for businesses and its correlation with the Commercial Court". The panelists of the roundtable were the Minister of Justice, a Program representative, and an international arbitrator. The

roundtable was moderated by the Secretary General of AmCham’s Arbitration Center. It included discussion with AmCham’s Arbitration Center and the Wood Processing Association on arbitration, focusing on the effectiveness of arbitration and the role that the anticipated commercial court will play in creating better conditions for arbitration. 3-7. December 14 – 18, 2020: “Commercial Justice Week” series of five roundtables – one each day during the week – focusing on Arbitration, conducted, jointly with AmCham. The goals of the series were to build business awareness of arbitration, emphasize the value it can provide to businesses, advise where to find out more information, and explain how to find model arbitration clauses for contracts. The panelists and moderators represented a broad cross-section of professionals with arbitration experience—including as arbitrator, party to an arbitration, and legal representative to a party in arbitration—and featured a greater number of female professionals than male. 8. February 18, 2021: “The court’s performance and arbitration”. The panelists were representatives of the USAID’s Justice Activity and a Program representative, and it was moderated by AmCham. During the roundtable were discussed specific needs for the commercial court and increase in use of arbitration by business. These roundtable events were broadcasted through Gjirafa livestream and though AmCham social media. In total, the roundtables discussions on arbitration have attracted 13,461 views so far.2 In addition to these livestreamed roundtables, the Program conducted two roundtables for members of trade associations. On June 24, 2020 the Program conducted a virtual roundtable, with the Association of Micro-Finance Institutions (AMIK) and its members on arbitration. Twelve representatives of micro-finance institutions participated, mainly from legal offices. On June 26, 2020 the Program held a virtual roundtable with the Kosovo Wood Processing Association and its members. Six business representatives were present. The purpose of this roundtable was to discuss with the sector the viability of arbitration as an alternative for dispute resolution and to promote the inclusion of arbitration clauses in business contracts. The Program also provided two trainings on arbitration. On September 9, 2020 and again on September 10, 2020, the Program, in cooperation with the Kosovo Justice Academy (KJA), organized virtual training sessions on arbitration for judges of the Basic Court Pristina, Commercial Department, Administrative Department, and General Department. Feedback from the participating judges strongly indicated that more training on arbitration is needed for judges, as the topic was not widely understood. Some even admitted that they had no knowledge about arbitration at all. The Program applied its Adaptive Management and Learning (AM&L) tool to categorize the recommendations provided by the participants in both roundtables with the AMIK and Wood Processing Association and shared with the trainers specific solutions addressed in the Program’s AM&L tool. The Program also contributed to an event, at AmCham’s invitation, on August 24, 2020, where the Program participated in a panel discussion organized by AmCham on arbitration, with a focus on the need for online arbitration opportunities. In the roundtable, the

2 The data was retrieved on March 29, 2021 from video.gjirafa.com and from AmCham Kosovo’s Facebook page. 18 panelists included an arbitrator who is a Managing Director of the international consulting firm Emert Group in the USA, an arbitrator of AmCham, a managing partner at a legal office in Beirut, a Kosovo arbitrator, and a Program representative. The discussion focused on the need to promote arbitration and use of online alternatives, particularly considering COVID- 19. The panelists presented arbitration as an enormous potential support to courts in addressing commercial disputes. During Quarter 4, the Program held a coordination meeting with the Innovation Centre Kosova (ICK) with the purpose of establishing collaboration on the activities on commercial justice and ADR mechanisms for ICK members, responding to their needs on mentoring and training startup companies. It was agreed, that in the near future (early in Year 3) the Program will facilitate training on commercial justice topics, such as arbitration, mediation, registration of businesses, patents, and resolving disputes in front of the courts. During Year 2, despite prior good cooperation with the Kosovo Bar Association (KBA) and following several discussions and meetings to organize planned trainings on arbitration for attorneys, the KBA unexpectedly announced to the Program that training for the attorneys was not a KBA priority, including training on arbitration. KBA’s new approach on training appears to have resulted from a change in senior management and, for now, the KBA communicated that it does not plan to provide or organize such training. Because of this new position, the Program was unable to conduct attorney training through KBA during Year 2. Since attorney training has repeatedly been emphasized as a need area during Program roundtables, going forward, the Program will consider alternative ways to provide such trainings for attorneys. The Program and AmCham, in an effort to promote commercial justice, arbitration and mediation among businesses, agreed to work together to produce video testimonials and training videos on commercial justice topics, such as arbitration and mediation. This activity will be implemented on a co-funding basis starting in Year 3, with each side assuming a portion of the production costs. In Year 3, the Program and AmCham will also work together to catalogue events for the arbitration week, which is scheduled to be take place end of March 2021.

Sub-activity 2.1.1.2 Support consolidation of arbitrator lists No activities were planned or conducted under this sub-activity during Year 2.

Sub-activity 2.1.1.3 Improve Arbitration Center Service Delivery To address KCC and AmCham arbitration centers’ concerns about service delivery, lack of staff, and other process administration gaps, including the competencies of arbitrators and procedures taking longer than they should, the Program designed a service delivery assessment (SDA) process for each of the of Arbitration Tribunals at AmCham and KCC. The assessments were based on three surveys to be conducted for each institution: 1) a survey of arbitrators, regarding their training level and handling of cases; 2) a survey of the arbitration tribunal, itself, on how it operates; and 3) a survey of parties who have used the center’s services, to assess their satisfaction. The SDA for AmCham’s Arbitration Center was carried out and completed during Year 2, providing specific observations and recommendations on how the center may improve how it provides its services. Following the completion of the SDA, the Program met with AmCham to discuss the recommendations provided. The Program plans to support AmCham during Year 3 to prioritize and address the recommendations.

The SDA for the KCC was also conducted following the same methodology, resulting in concrete recommendations to improve services on arbitration. The Program plans to share the assessment with KCC early in Year 3 and will discuss the recommendations with KCC’s Arbitration Tribunal. The Program signed a Memorandum of Cooperation with KCC on May 26, 2020 that enabled closer cooperation of Kosovo Chamber of Commerce (KCC) with the Program. This provided the Program with access to statistical data and information on case management of arbitration cases and laid the foundation for the Program to conduct the SDA described immediately above. Activity 2.1.2. Increase reliance on mediation Mediation represents a strong opportunity for moving cases out of, and diverting them from, overloaded courts. The 2018 Law on Mediation regulates the process and profession, provides for mandatory mediation of certain types of cases, and requires courts and prosecution offices to dedicate personnel to serve as full-time mediation clerks. To increase the use of mediation, the Program worked with the KJC and courts to prioritize case referral strategies and processes, and support institutionalization and training of dedicated mediation clerks in each court. The Program also assisted MOJ to define and implement its governance role over the profession and work to build public awareness of mediation as a valuable means of resolving disputes. During the Year 2, as a result of the Program’s efforts in working with the KJC and court clerks, the number of civil cases referred to mediation has increased. In Year 1 only 70 civil cases were referred to mediation, while in Year 2, in spite of restrictions due to the pandemic, the number of civil cases referred to mediation nevertheless increased to 164. The total number of mediation settlements (which include criminal cases) also dramatically increased: the result is 1,471 cases resolved through mediation, some of which were resolved using online mediation procedures. Data for mediation case referrals from March 1, 2020 to the end of the reporting period are presented in Annex I. The sub-activity descriptions below detail the Program’s support efforts.

Sub-activity 2.1.2.1 Design and conduct mediation awareness training series The Program continued its engagement to provide and further develop the mediation awareness training series (MATS) it initiated in Year 1. In early Year 2, the MATS workshops were conducted by local professionals trained during Year 1 by external experts. In the second part of Year 2, the Program engaged Commercial Mediation Expert STTAs to train an additional cadre of six local mediation professionals to deliver MATS workshops. In all, during Year 2, the Program supported delivery of ten MATS outreach and awareness workshops and development of a video on MATS to be made available for streaming on the MOJ’s landing page on Mediation. Two of these MATS workshops were delivered during Quarter 4: 1. On January 27, 2021, a MATS workshop for basic court and appeals court judges was organized in cooperation with the KJA, with 55 participants. This MATS supported, by the STTAs pro bono. 2. On February 16, 2021, a MATS workshop with students with the Economic Faculty of the University “Hasan Prishtina” in Pristina was held. The training was delivered by Program-trained mediation professionals, with total of 13 participants.

During the Year 2, the Program’s MATS workshops were delivered through virtual platforms to three target groups – judges, lawyers, and university students. Throughout the year, 370 participants were trained on mediation at these workshops. During the workshops, various issues were raised, mainly on the usage of mediation in specific fields, and the need to have more awareness activities to the public. Some specific topics were raised, such as the need for specialized mediators on commercial justice, clarification on the scope of mandatory mediation, and referral of other civil cases. Another discussion point raised was that courts keep receiving large numbers of cases brought by civil servants for unpaid salary entitlements under the Law on Civil Servants based on their level of work experience. Public institutions in these cases are reported as generally refusing to participate in mediation. To expand awareness of mediation, the Program met with the Agency for Free Legal Aid (AFLA) to coordinate activities. The AFLA expressed an interest in conducting mediation training for their officials, as well as providing free legal advice to the parties. This activity was coordinated with Justice Matters and Justice Activity. In Year 3, the Program plans to continue providing mediation awareness trainings to the different audiences with the trained local professionals.

Sub-activity 2.1.2.2 Support court filing clerks to advise parties about mediation option Subsequent to KJC approval of the Guidelines on Court Cases Appropriate for Mediation, supported by the Program during Year 1, the Pristina Basic Court (PBC) organized an event on March 5, 2020 with judges to launch the Guidelines. The President of the Basic Court, Deputy Chair of the KJC, and Secretary General of MOJ presented the Guidelines and communicated their importance in increasing the number of mediation cases in civil and commercial disputes. Following the launch event, the Program worked closely and continuously with filing clerks on the Guidelines, advising them on methods to identify cases to be referred for mediation. The work was done on a rotating basis, supporting clerks from all seven basic courts on how to advise parties to try mediation before filing their cases. The Program also supported development of a user satisfaction survey on mediation, to be shared with parties, mediators, and judges. The survey process is intended to help courts provide better service on mediation referrals and to gain information systematically on perceptions of mediator professionalism and satisfaction levels of judges. The survey process was initiated at Pristina Basic Court which, in turn, started providing survey questionnaires to parties, mediators, and judges. Starting in Year 3, the Program anticipates, on a periodic basis, reviewing responses received and discussing observations with the court. The Program plans to expand the survey process to all basic courts for the same purpose.

Sub-activity 2.1.2.3 Build capacity of judges and court clerks to refer cases to mediation During Year 2, the Program continued its efforts to address the need of full-time court clerks to handle mediation referrals full time. The Program met with the presidents of the Basic Court of Gjilan, Peja, Mitrovica, Gjakova, Ferizaj, and Prizren. To date, Pristina, Gjilan, and Peja Basic Courts have assigned existing court clerks dedicated full time to mediation, while Mitrovica, Gjakova, Ferizaj, and Prizren have tasked clerks, part time, to carry out mediation case referral duties in addition to their other duties. To facilitate access to mediation, the basic court branches of Malisheva, Kaçanik, Shterpce, and Vitia have also

21 assigned, part time, mediation referral functions to clerks, so that citizens will no longer have to travel to basic courts of the region for mediation sessions. The Program provided one-to-one training to the assigned clerks in basic court branches and shared the Guidelines on Court Cases Appropriate for Mediation and promotional brochures. For a significant part of Year 2, due to COVID-19 restrictions imposed, the courts were reduced to functioning with very limited capacity – handling only urgent cases, such as detention and domestic violence. This gave rise to the possibility for online mediation as a solution. The Program introduced technology, such as the free Jitsi platform, appropriate for online mediation, to allow parties to negotiate remotely and continue to resolve disputes. The KJC received the idea favorably and, on April 30, 2020, issued an instruction to the basic courts to conduct online mediation sessions. The Program produced a video tutorial on how to conduct online mediation sessions using Jitsi. To launch the video tutorial and promote the platform for online mediation, the Program held a virtual roundtable with key institutions, including representatives of the MOJ, KJC, Mediators Chamber, basic court mediation clerks, court information officers, and the Kosovo Bar Association. The video was loaded onto the KJC’s website and Facebook page and on the Facebook pages of all the basic courts. In addition, the Program conducted virtual training for the mediation clerks of all the basic courts, and with the mediators, on how to conduct online mediation sessions using Jitsi. To avoid technical difficulties that mediation clerks were facing – essentially, lack of computer equipment – in consultation and through KJC, the Program loaned laptops to seven basic courts, allowing the mediation clerks to host online mediation sessions. Following the development of a mediation training module for the KJA the previous year, during Year 2 the KJA conducted three training sessions on mediation for judges, professional associates, prosecutors, and mediators. The training covered the regions of Mitrovica, Peja, Prizren, and Gjakova, educating a total of 109 participants and giving rise to new opportunities for the Program to increase reliance on mediation. Two key feedback recommendations resulted from judges’ feedback: 1) the need to increase the use of mediation in civil cases; and 2) the need for a professional mediation settlement agreement template. The first recommendation – to increase the use of mediation in civil cases – was addressed with the President of PBC and the Head of the Civil Department at the PBC, who then called a collegium meeting with the judges of the general department – Civil Division. The meeting was led by the PBC President and the Head of Civil Division to discuss the use of alternative dispute resolution. The judges were advised to refer more civil cases to mediation because it would help reduce the number of pending cases in the PBC. Since a very large number of civil cases in the PBC are damage claims against insurance companies, during Quarter 4, the Program facilitated discussions between the PBC, the Kosovo Insurance Association, the President of the Kosovo Bar Association (KBA), and certain insurance companies, to inform and advise them about mediation benefits and procedures. The second recommendation provided an opportunity for the Program to draft template settlement agreements for mediators to work from. Working jointly with judges and mediators, the Program drafted a guide containing template settlement agreements for various types of civil disputes. On December 17, 2020, a virtual meeting was held with judges, mediators, and private enforcement agents to jointly agree and complete the mediation settlement agreement templates. When the guide is completed, the templates contained in it will serve as a basis for a civil case settlement documentation that mediators can work from and that judges will find acceptable.

To address the need for institutional incentives to refer civil cases to mediation, the Program, in cooperation with KJC, completed a draft memo on financial incentives that, if implemented, would help increase the use of mediation. In Year 3, the Program plans to advocate that KJC approve the mediation financial incentives memo. Finally, during Year 2 the Program sought, unsuccessfully, to incorporate mediation case referral as a performance indicator for judges’ performance evaluations, which would help provide an incentive for judges to refer more cases. As the KJC announced a period of public consultation on a draft regulation on Performance Evaluation for Judges, the Program commented in writing, proposing such an indicator be incorporated to the performance criteria section of the draft regulation. The comment was provided to KJC. On consideration of the comment, the working group members expressed reluctance to include such an indicator on the assumption that it might unfairly discriminate against judges who do not have cases that would be appropriate for mediation.

Sub-activity 2.1.2.4 Build capacity MOJ to carry out its mediation governance responsibilities under the Law on Mediation Starting in the first quarter of Year 2, the Program continued to support the Free Legal Professions Department (FLPD) of MOJ in establishing a Registry of Mediators. The FLPD, Chamber of Mediators, and the Program conducted virtual meetings to collect data on all mediators for the Mediation Registry, to comply with the MOJ’s Administrative Instruction on the Registry. The Program continued support to complete the regulatory environment for mediation. Following continued Program advocacy, on September 21, 2020 the Minister of Justice signed the founding documents of the Chamber of Mediators – the Statute (Bylaws) of the Chamber of Mediators and its internal regulation – which had been pending for most of the year. Two draft Administrative Instructions (AIs) on Tariffs and on Self-Initiated Cases, incorporating input from the Mediators’ Chamber, KJC, and Kosovo Prosecutorial Council (KPC) are still awaiting consideration by the next Minister for signature. The Program, in coordination with the Mediator’s Chamber, organized six regional virtual meetings with mediators to prepare for online mediation. In-person explanatory meetings on online mediation were conducted with mediators as needed. This support originated with the interest expressed by the FLPD and the Chamber of Mediators, to increase mediators’ capacities to fully implement the Law on Mediation and online mediation. With Program support, the MOJ created a landing page on mediation, under the existing mediation section of the MOJ’s website. The MOJ website has information, such as mediation definition, principles, statistics, mediators, legal framework and will be enriched with additional activities and trainings on mediation. During the Year 2, the Program worked with KJC and MOJ to develop a statistical database to serve as the main repository where data about mediation case referrals are registered and managed. Both the KJC and MOJ supported the idea, and the Program developed the database. Upon the creation of the database, the KJC unexpectedly changed its position, claiming that they would not be able to host the system, and they declined to provide access to their domain for other users, including MOJ users. In view of KJC's sudden change of position, the Program turned to the government’s Agency for Information Society (AIS), to have the database maintained and hosted by the MOJ. In the following year, the MOJ plans to draft a Memo to sign between the MOJ, the KJC, and the Chamber of Mediators laying

23 out specifics for access by the mediation clerks and by the Mediation Chamber (for self- initiated cases). Finally, as a result of dialogue initiated during Year 1 by the Program between the Ministry of Justice and the US Federal Mediation and Conciliation Service (FMCS), the Bureau for International Narcotics and Law Enforcement Affairs is now negotiating with the FMCS to conduct a multi-year mediator training capacity development initiative. As that initiative began planning and development in Quarter 4, the Program met and coordinated extensively with FMCS on the design and detailed work plan for that initiative. The end result is expected to be a collaborative effort between FMCS and the Program to improve the self-sustainability of Kosovo’s mediation environment.

Sub-activity 2.1.2.5 Assess and support development of environment for commercial mediation in Kosovo The Program is deferring the commercial mediation assessment until after completion of the AIs to be promulgated under the Law on Mediation. During Year 3, the Program plans to engage external STTA to assess and support development of environment for commercial mediation.

Activity Area 2.2. Commercial Legislation The Program supports harmonization of commercial legislation with EU requirements and international best practices. During Program Years 1 and 2, the Program assembled an inventory of the main legal acts that may be part of a review and harmonization process for commercial legislation. The completed inventory will serve as the first draft of proposed laws for harmonization and potential consolidation once a governmental working group is established. Activity 2.2.1. Support anticipated legislative review committee to consider unification of commercial legislation The policy reform option of harmonizing commercial legislation is addressed in a draft of the Rule of Law Strategy and Action Plan being developed as part of a Rule of Law Functional Review being conducted by the MOJ. The draft strategy envisions this work commencing in 2022. During Year 2, the Program also learned of an initiative for a concept document, drafted by the working group in Ministry of Trade and Industry (MTI), which was directed towards drafting a Law on Alternative Dispute Resolution for Consumer Protection Disputes. This initiative was supported by an EU Project to draft a Law on ADR for consumer protection. The MTI reached out to the Program and the MOJ to consult on whether there is a need for such an initiative. The MOJ’s Free Legal Professions Department and the Legal Department, after reviewal of the concept document, advised MTI that there is no need for such a revision, since Kosovo’s Law on Mediation does not prohibit the referral of consumer protection disputes to mediation. This was communicated to MTI in a joint meeting where the Program participated. In view of this, MTI indicated that it had decided to withdraw the draft concept document and to not proceed further with this initiative.

Activity Area 2.3. Strategic Communication of Commercial Justice Institutions The Program works to improve strategic communications in commercial justice by implementing facilitative partnering methodology to better align commercial justice

24 institutions to achieve a mutual vision of their roles, responsibilities, and relationships with respect to one another and to the general public. The process applied helps groups, institutions, agencies, companies, or offices, assisted by a facilitator, to commit to establishing effective communications, building trust, and sustaining strategic relationships. Activity 2.3.1 Support communication among commercial justice institutions Communication between the MOJ and the CPEA has been suboptimal for several years. In Year 1, the Program organized initial facilitative partnering sessions through the MOJ’s Department of Free Professions and the CPEA, which were facilitated by the Program’s Mediation Expert STTAs. In Year 2, because of COVID-19 restrictions on in-person meetings, the Program deferred further interinstitutional communications support on commercial justice to Year 3. Activity 2.3.2 Support communication and outreach of commercial justice institutions During the reporting period, the Program continued to facilitate the communication capacities of commercial justice institutions such as MOJ, CPEA, and KJC. These activities were: - The Program provided support to the Ministry in developing a public highlight on the promotion and availability of the mediation landing page. The post was shared and promoted on the Ministry's official website and its social media pages. In addition, the Program supported the Ministry to update and feed the page by including content that provides overarching messages, results, and education. - The Program produced a Mediation Awareness Training Video (https://www.youtube.com/watch?v=GJEdBRNJ91c) to help facilitate MATS workshops held online due to COVID-19 pandemic restrictions. Creating this online version also provided the public with on-demand streaming access to needed information about mediation. The video features a presentation by mediators who have been trained by the Program and includes a discussion by the mediation clerk of PBC on cases referred to mediation in court. The video also contains information about the mediation landing page on the website of the Ministry of Justice and the tutorial video on online mediation. The video was shared through the websites and social media channels of various institutions such as the Kosovo Justice Academy, Kosovo Judicial Council, Ministry of Justice, and basic courts. - To mark Mediation Day, on September 26, 2020, the Program produced a video highlight mediation (https://www.facebook.com/watch/?v=928799610862703), featuring the Minister of Justice, Chairman of the Kosovo Judicial Council, and President of the Mediators’ Chamber. The leaders of these institutions spoke about the benefits of mediation, promoting mediation as a successful alternative resolution method. The video was shared by each institution on their respective Facebook pages and websites. Moreover, as part of the promotion campaign on Mediation Day, the Basic Courts shared on their Facebook pages a message by the presidents of the courts about mediation and its benefits. - Since the MOJ’s website did not contain comprehensive information about enforcement, the Program supported the creation and the content of a landing page on enforcement to be uploaded as a separate sub domain of the website. The content of the landing page requires a regular feed in of information update, so once the page is uploaded, the Program will guide MOJ in creating and updating the content.

- KJC requested support in drafting of a Communication Strategy for 2020-2023. While the KJC commenced drafting of the strategy, the Program supported the process by outlining a draft skeleton of the strategy with commercial justice context, including the activities that are envisioned to be supported within the framework of the Program’s own Communication Strategy. On May 29, 2020, KJC conducted a workshop among the communicators of the other courts featuring representatives from the KJC, Public Information Officers from Gjakova and Peja, and Program representatives. The Program also worked with the KJC in developing content for a landing page on Mediation with specific focus on promoting the availability of online mediation. The Program participated in several meetings with the KJC and its IT maintenance company to work on the design and outline of the sub domain. The content of the landing page requires a regular feed in of information update, so once the page is uploaded, the Program will guide KJC in creating and updating the content. - In support of communications for the Chamber of Private Enforcements (CPEA), the Program produced an awareness video on Professional Standards for the Private Enforcement Profession with the aim of promoting professional standards as a tool for creating and guaranteeing quality, professionalism, and integrity of services for the Profession. The video was shared by the CPEA on their Facebook page as well as on the MOJ’s website and Facebook page. This video was followed by an associated online event with the members of the working group, the Legal Department, FLPD, and the Inspection Division within the MOJ, as well the CPEA. The event discussed the Plan for the process and timeframe for creating professional standards of private enforcement agents, discussing the process as well of developing professional standards based on the experience of other countries, but which must be adapted to the context of Kosovo. Activity 2.3.3 Support improved advocacy capacity among commercial justice institutions In Year 1, the Program conducted a Workshop on Advocacy for CPEA introducing basic advocacy principles and support to forming strategic alliances. Awaiting the approval of the draft-law on the commercial court by the Government and its submission to the Assembly for review and adoption, the Program plans to support the MOJ through advocacy trainings to effectively manage its communications with the Kosovo Assembly and outside stakeholders

Activity Area 2.4. Public Awareness The Program is working with subcontractor Pi Communications to design and carry out a Commercial Justice Public Awareness Campaign. The campaign will include development of Public Service Announcement (PSA) videos and radio spots, supported and informed by focus groups and surveys. The campaign is being developed and implemented in close coordination with the Program’s other outreach events, such as the mediation awareness training series and the commercial justice and business roundtables. Activity 2.4.1 Develop and broadcast public service announcements The Program and its subcontractor Pi Communications developed and launched the first PSA addressing Commercial Justice topic. The production of the first PSA, which included a video and radio productions in both Albanian and Serbian, has been finished and complete. The video PSA was broadcast in several national and local TVs on both Albanian and Serbian channels, as well as being promoted through social media by commercial justice institutions,

26 such as the Ministry of Justice, Kosovo Justice Academy, Kosovo Judicial Council, and Basic Courts. The video broadcast was done throughout the month of November 2020. At the same time, the Program broadcasted the radio PSA on local radio stations in both Albanian and Serbian languages. The radio PSAs were broadcast in November and December. Below are the broadcasting times and advertising channels. Broadcasting period Channels No. of Broadcasts Albanian PSA – November 3rd – Nov Klan Kosovo 44 times in total in Video 27th Prime time T7 KTV RTV Serbian PSA – Video Nov 1st – Nov 17th TV Herc 64 times in total in Prime Time TV Kim TV Most RTK 2 Albanian PSA – November 3rd – 30th Radio Kosova 6 times/day Radio Radio Dukagjini Radio Llapi Radio Malisheva Radio Sharri Radio Vicianum Serbian PSA – Radio November 3rd – Dec Radio KIM 6 times/day 30th Radio Gracanica Radio Kontakt Plus

The PSAs were also broadcast online through various social media channels. The Social Media campaign for the Commercial Justice PSA lasted for 61 days, throughout which PSA in Albanian and Serbian was promoted. The campaign reached 398,575 users, and post engagements reached 238,621. Targeted audience varied based on the videos that were posted, but mainly the targeted audience were audience working in state institutions, media, actors, businessmen, universities, students, NGOs and other stakeholders. In Year 2, the Program also commenced developing a campaign brief for producing the second PSA on mediation, which will be focused on mediation awareness. The PSA scenario and concept ideas were completed, and storyboards were developed. Production of the second PSA on mediation is anticipated to start during Year 3.

The Program also developed a promotional video for the official Instagram Account of USAID/Kosovo. The script and storyboard for the video were presented to USAID/Kosovo Department of Communication Office, which agreed on the content. The video features one of the Program interns introducing the Program and its goals by also inviting the audience to follow the USAID/Kosovo Instagram page. Activity 2.4.2 Conduct Surveys and Focus Groups As part of the Program’s public awareness raising efforts, the Program organized four focus groups to increase businesses’ and the general public’s awareness and level of knowledge of commercial justice institutions. Before launching the first Public Service Announcement (PSA) on commercial justice, the Program conducted focus groups during Year 2 with representative samples of the general public before, and after its public awareness campaigns, in order to pilot, test, and measure the effect of the Public Service Announcements and other relevant public awareness materials produced. With the same purpose, pre-production and post-production focus groups were conducted for another PSA, this one to promote mediation. The mediation PSA is anticipated for launch during Year 3.

CROSS-CUTTING

Activity Area 3.1. Internship Program The Program is implementing an internship activity to work with public and private universities in Kosovo to provide paid internship positions for their students. Opportunities include both activities on the Program directly and rotating placements at key counterparts such as the MOJ (Legal Department and Free Legal Professions Department), courts, KCC, and AmCham. In Year 2, the Program employed 14 interns. Due to COVID-9 restrictions, the commercial justice institutions were temporarily not working, or were working in limited capacities, consequently, placement of the second-round interns was delayed for a few months, until the Program was able to readjust its engagement with the partner/hosting institutions. Activity 3.1.1 Develop and implement Commercial Justice Academy Internship Fifteen interns were selected during Year 2: seven interns for the period June 2020- December 2020, and eight for the period December 2020-June 2021 (ongoing). The interns were selected from public and private universities in Kosovo, and were placed in key partner institutions, such as PBC, Peja Basic Court, the MOJ, the Kosovo Justice Academy (KJA), the Chambers of Commerce, and the Kosovo Bar Association (KBA). Two of the interns were placed at the Program itself: one supporting the Program’s MELP, with the other supporting the internship training program. The interns are focusing on practicing daily tasks, engaging in cases and institutional real work, and attending Program trainings and mentoring sessions to enhance their knowledge on this much unexplored subject in Kosovo. In its efforts to establish a Commercial Justice Academy, the Program worked with interns to draft an operational plan, including laying out the topics and mentoring sessions that

28 students will undertake during their internship. The training and mentoring sessions were open to former interns as well. The events included: - On 14 April 2020, the Program participated in a virtual mediation training for the interns of USAID’s Justice System Strengthening Program (JSSP). SOME DIRECT - On 30 April 2020, the Program delivered a training on QUOTES: arbitration for JSSP’s interns and Commercial Justice Activity interns. Justice Matters Program interns were “Even though I have also invited. been a part of this - On August 27, 2020, two mentoring sessions were held – program for a short one on commercial justice as a development reform area, period of time I feel like and the other on commercial litigation and reforms to it has taught me greatly improve effectiveness. how to deal with commercial matters. I - On October 14, 2020, a mentoring session was held with feel it’s the perfect first the Deputy Mission Director, Zeinah Salahi, sharing the step towards my future inspiring journey of her legal career as it progressed into professional career in development. corporate law.” The interns of other USAID Rule of Law activities – JSSP and Justice Matters – joined the Program’s sessions, giving an “I believe that by opportunity for a broader range of students to learn about the following the goals that commercial justice. The continued learning sessions are designed the program is trying to to serve as inspiring activities and learning opportunities for achieve, I will attain future leaders of Commercial Justice, an activity that will be a exactly what I need to model for the Commercial Justice Academy in the future. take the next step in my professional career, When the third cohort of interns joined the internship program, while also improving the in December 2020, the Program organized a joint event between judicial system and the departing and coming interns, with the purpose of business climate in introduction for the student club activities and share the Kosovo.” experience of the departing interns for the new cohort. The Program facilitated the discussion, and some quotes are “The practical highlighted in the sidebar. experience and training I Given the high unemployment rate in Kosovo, especially among have gained during this youth, and the unprecedented effect that COVID-19 has had on experience have given employment, the interns believe that the Program has offered me an overview of each them an excellent opportunity during an exceptionally difficult branch of law and law time. Many of them appreciate that they are put in a professional enforcement in setting in their actual field of study for the first time and believe Kosovo’s institutions- that they can use this chance to apply their theoretical things I had not learned knowledge in real commercial matters and dispute cases. while studying at Moreover, some interns acknowledge that their universities university.” often embody a lack of focus in commercial justice/law in their curricula, as the main focus of many universities in Kosovo remains civil and criminal law. Similarly, interns have demonstrated that the Program has made them realize how much of people’s daily lives are affected by commercial issues and that the lack of development of this sector in Kosovo truly hinders the overall development of the state. Consequently,

29 after being concerned with the fact that there is a critical need for more professionals in commercial law, they express a desire to be the leading force towards progress in this area in the future. Interns describe the institutions where they are placed, as highly professional environments, where the staff that they have been working with is welcoming, communicative, and cooperative. Lastly, interns believe that their experience in such institutions can be gradually improved if they become a more integral part of these institutions, gain independence to perform more important tasks, and if feedback on their performance is given more regularly.

IV. Progress on Monitoring, Evaluation, and Learning Indicators The Program conducted two Internal Learning Events (ILE) and compiled all Program progress data, using the Program’s AM&L manual. Due to the continuous COVID-19 restriction throughout the year, the ILEs were prepared and held completely online. An all- staff survey focusing on the adaptations, learning, successes and challenges was collected, and all answers categorized. This offered the opportunity for staff to attend the ILE prepared on what the agenda and focus of the event, thus contributing to a very effective online facilitation. Aside from the staff’s points and items of emphasis with the Programs AM&L approach, the ILEs also offered a snapshot progress presentation of the Q2 and Q3 relevant progress indicators, whereby the team reviewed and discussed progress so far, meeting and/or exceeding targets, as well as probable needs for revision of targets and other MEL functions – after the COVID-19 restriction period. The main findings of the ILEs were as follows: Challenges: The main challenges identified by staff during Q2 and Q3 – and consequently the COVID-19 pandemic period, which appeared and occurred in precisely this timeframe were: 1) lack of face to face communication with team and counterparts/stakeholders and maintaining relations as a result of that; 2) adjusting to online/remote work; 3) challenges for team communication; 4) political instability; 5) non-responsiveness of institutions and as a result delay in the implementation of certain activities; 6) difficulty of counterparts to adjust to online platforms and 6) technical difficulties such as connectivity issues. Around 57% of staff declared that they have overcome all their specific challenges over the designated period, while the remaining 43% of staff declared they have overcome most of their challenges. The main examples and ways staff have listed in overcoming these challenges were: 1) insisting on acquiring responses from stakeholders/counterparts; 2) adjusting, adapting and refining online work processes, and 3) improving attentiveness and coordination, using a variety of online platforms and planning, as well as 4) adapting a hybrid approach to meetings while respecting government measures under COVID-19. Some noteworthy triumphs of the program so far include, but are not limited to, the following: 1) completion of the Draft Law on the Commercial Court; 2) Training of Trainers (TOT) on Commercial Law Curriculum; 3) development of six Categories of Professional Standards for Private Enforcement Agents and well as the commencement of the PEA Cost Study; 4) increased awareness over ADR especially through Mediation Awareness Training Series and support for counterparts such as the Commercial Justice Days with AmCham

Kosovo; and 5) the release of the first PSA both on video and radio and the finalization of the second PSA. The Program team members report that they have adapted and incorporated some new approaches to the Year 3 work plan, particularly focusing on making sure that every activity as planned from now can be accomplished online or in-person in case the government measures for COVID-19 are intensified or eased. Some of these activities revolve around a hybrid approach to conducting meetings face-to-face but then, trainings, presentations, business consultation roundtables should be held online subject to the restrictions mentioned above. Most of the challenges faced that were rather hard to overcome, or simply remain ongoing are because of COVID-19 (specifically with short-staffed counterparts), political instability, and weak inter-institutional cooperation among counterparts. Lessons that the program has learned that have made their work easy emphasize the importance of engaging with counterparts more; understanding that remote work works; a hybrid approach (mix of face-to-face and online interaction) is preferable; and the adaptation of more tech-interactive tools is very helpful. Program team recognized the significance of internal and external communication and coordination. Looking ahead, the program team also discussed lessons that are important to carry on in the future: 1) continuing with online work for some activities (online business roundtables or livestream, online trainings); 2) keeping up the great spirit and seeking help from your team in times of adversity; 3) following strict administrative procedures when inquired by operations; 4) cooperating and communicating more; and 5) having virtual lunch or coffee together. The Program team finalized the Year 3 work plan based on the mitigation strategies identified and discussed at the Internal Learning Event.

V. Problems Encountered During the Year Political instability – the dissolution of the government in early 2020 and again in late 2020 – delayed progress in adopting the complete draft of the Law on Commercial Court by the Government and Assembly, respectively. Much of the year was spent, essentially, in caretaker government status. The Program responded as best it could by working intensively, nevertheless, with non-politically appointed officials within the MOJ to keep forward momentum on the draft law in between governments. As a result, although the government changed twice during the year and much of the year was spent in caretaker status, a drafted and fully consulted Law on the Commercial Court was declared by the Minister of Justice, in early 2021, as a completed work product, ready for consideration by the next government. The Program will advocate for resumption of the draft law’s progress as a priority once the next government assumes office. The COVID-19 pandemic restrictions and risks also presented significant challenges to the Program during Year 2. As covered extensively throughout this report, despite converting principally to work from home status in mid-March 2020, the program rapidly assessed its options and found methods of working very effectively remotely, with significant adverse effect on achievements and progress. In fact, several new opportunities arose – such as online mediation, online TOT training capacity, dramatic expansion of outreach to businesses via online, streamed events – which the Program anticipates taking further advantage of going forward.

Another issue encountered during the year involved the KJC unexpectedly backing out of hosting the mediation statistical database that the Program had developed. As detailed above in sub-activity 2.1.2.4, the program rapidly pivoted to hosting at the MOJ as a fallback solution.

VI. List of Reports and Deliverables During Year 2 NO. DOCUMENT CJAY2Q1-001 Presentation on Commercial Litigation First Instance Process Map Lessons – 2020-05-29 (ENG) CJAY2Q1-002 Draft Commercial Litigation First Instance Process Map – 2020- 05-29 (ENG) CJAY2Q1-003 Report on the Draft Law on Commercial Court – 2020-05-21 (ENG) CJAY2Q1-004 Draft Commercial Court Law Implementation Plan – 2020-05-21 (ENG) CJAY2Q1-005 Executive summary of TNA draft report – 2020-03-09 (ALB & ENG) CJAY2Q1006 TNA Infographic – 2020-03-12 (ALB & ENG) CJAY2Q1-007 PP Presentation of the TNA report – 2020-03-12 (ALB & ENG) CJAY2Q1-008 A brief summary of the TNA draft report Presentation - roundtable with Judges – 2020 -03-12 (ALB & ENG) CJAY2Q1-009 Trip Report of the Senior Capacity Building Expert – 2020-03-16 (ENG) CJAY2Q1-010 Trip Report of the Senior Capacity Building Expert revised – Final – 2020-03-24 (ENG) CJAY2Q1-011 Training Needs Assessment Report revised draft – 2020-03-24 (ENG) CJAY2Q1-012 Trainer Profiles – revised draft – 2020-03-25 (ENG) CJAY2Q1-013 Training Needs Assessment Report - Final– 2020-03-26 (ENG, ALB, & SRB) CJAY2Q1-014 Trainer Profiles – Final – 2020-03-26 (ENG, ALB, & SRB) CJAY2Q1-015 The standardized annual report template for PEAs – 2020-03-13 – (ALB) CJAY2Q1-016, Plan on process and timeline for establishing the professional 017 standards of the PEAs – 2020-04-06 – (ALB) (ENG) CJAY2Q1-018, Inventory of issues in the Disciplinary System over PEAs-2020-05- 019 14 – (ALB) (ENG) CJAY2Q1-020 Trip Report of the Senior Enforcement Expert – 2020-05-20 – (ENG) CJAY2Q1-021 Research analysis on comparative regional state practice on enforcement tariffs – 2020-05-22 (ALB) CJAY2Q1-022, Recommendations on revising the Statute of the CPEA -2020-05- 023 29 – (ALB) (ENG) CJAY2Q1-024, Recommendations on revising the Code of Ethics of PEAs - 2020- 025 05-29 – (ALB) (ENG)

CJAY2Q1-026, The service delivery assessment of the arbitration process 2020- 027, 028 05-26 (ALB) (SRB) (ENG) CJAY2Q1-029, The service delivery assessment of the arbitration center 030, 031 administration – 2020-05-26 (ALB) (SRB) (ENG) CJAY2Q1-032, The service delivery assessment of arbitrators to assess their 033, 034 needs for training and better management of cases – 2020-05-26 (ALB) (SRB) (ENG) CJAY2Q1-035 Draft of the Mediators Registry – 2020-05-06 (ALB) CJAY2Q1-036 PP Presentation of the training with the interns of JSSP on arbitration – 2020-04-30 (ALB) CJAY2Q1-037 PP Presentation of the training with the interns of JSSP on mediation – 2020-04-14 (ALB) CJAY2Q1-038 PP Presentation of the MATS with students in Peja University – 2020-05-18 (ALB) CJAY2Q1-039 PP Presentation of the MATS with students in Prizren – 2020-05- 15 (ALB) CJAY2Q1-040 Live Virtual Roundtable Summary -Commercial Justice During COVID-19: How are the Courts handling commercial cases? – 2020-04-28 (ENG) CJAY2Q1-041 Live Virtual Roundtable Summary - Commercial Justice During COVID-19: Handling Enforcement – 2020-05-05 (ENG) CJAY2Q1-042 Live Virtual Roundtable Summary -Women in Business: Challenges and Opportunities during COVID-19 – 2020-05-12 (ENG) CJAY2Q1-043 Live Virtual Roundtable Summary -Commercial Justice During COVID-19: Force Majeure Clauses in Contracts: Implementation and Challenges – 2020-05-19 (ENG) CJAY2Q1-044 Live Virtual Roundtable Summary -Arbitration: An Opportunity for Dispute Resolution in Insurance and Banking Sector – 2020- 05-26 (ENG) CJAY2Q2-001, Draft Commercial Litigation Second Instance Process Map – 2020- 002 09-10 (ALB)(ENG) CJAY2Q2-003 Draft Commercial Court Law – 2020-08-31 (ALB-ENG-SRB) CJAY2Q2-004, Explanatory Note for Draft Law on Commercial Court 2020-07- 005 21 (ALB)(ENG) CJAY2Q2-06 Updated Draft of Commercial Court Implementation Plan – 2020- 07-17 (ENG) CJAY2Q2-007 Draft Commercial Court Implementation Plan – 2020-05-21 (ENG) CJAY2Q2-008, Memorandum of Cooperation between KJA and CJA – 2020-07- 009, 010 20 (ENG)(ALB)(SRB) CJAY2Q2-011 Video production on professional standards of PEAs – 2020-06-18 (ALB-ENG-SRB) CJAY2Q2-012 PP Presentation of the Workshop on professional standards of PEAs – 2020-06-25 (ALB) CJAY2Q2-013 PP Presentation of the Workshop on issues in the disciplinary system over PEAs – 2020-07-29 (ALB)

CJAY2Q2-014 Research analysis on comparative regional state practice on enforcement tariffs - 2020-08-31 (ENG) CJAY2Q2-015 Inventory of decisions and writs issued by PEAs– 2020-07-02 (ALB-ENG) CJAY2Q2-016 PP Presentation of the training with the attorneys on mediation – 2020-07-04 (ALB) CJAY2Q2-017 PP Presentation of the training with the attorneys on mediation – 2020-04-18 (ALB) CJAY2Q2-018 Live Virtual Roundtable Summary - Mediation as an effective tool for dispute resolution – 2020-05-03 (ENG) CJAY2Q2-019 Live Virtual Roundtable Summary - The Economy during Covid-19 Pandemic: How will the Commercial Court help? – 2020-08-05 (ENG) CJAY2Q2-020 Live Virtual Roundtable Summary - The Economy during Covid- 19: The Role of Enforcement Proceedings – 2020-08-12 (ENG) CJAY2Q2-021 Live Virtual Roundtable Summary - Arbitration: An Opportunity for Dispute Resolution in Microfinance Sector – 2020-05-24 (ENG) CJAY2Q2-022 Live Virtual Roundtable Summary - Arbitration: An Opportunity for Dispute Resolution in wood processing Sector – 2020-05-26 (ENG) CJAY2Q3-001 Draft Law on Commercial Court – 2020-11-16 (ALB-ENG-SRB) CJAY2Q3-002, Table of Comments to the Draft Law on Commercial Court – 003, 004 2020-11-16 (ALB)(ENG)(SRB) CJAY2Q3-005, TOT Delivery Plan – 2020-09-09 (ALB)(ENG) 006 CJAY2Q3-007, Curriculum Development: TOT Candidate Deliverables – 2020- 008 09-01 (ALB)(ENG) CJAY2Q3-009, TOT Call for Applications – 2020-09-09 (ALB)(ENG)(SRB) 010, 011 CJAY2Q3-012, TOT Questionnaire – 2020-09-09 (ALB)(ENG)(SRB) 013, 014 CJAY2Q3-015, TOT Letter of Commitment – 2020-09-09 (ALB)(ENG)(SRB) 016, 017 CJAY2Q3-018, TOT Announcement – 2020-09-09 (ALB)(ENG)(SRB) 019, 020 CJAY2Q3-021, TOT Program-Interview questions 2020-10-21 (ENG)(ALB) 022 CJAY2Q3-023, PP Presentation on the TOT Session 1 – 2020-11-09 (ALB)(ENG) 024 CJAY2Q3-025, Course Design Worksheet – 2020-11-06 (ENG)(ALB) 026 CJAY2Q3-027, Course Outline Template -2020-11-06 (ENG)(ALB) 028 CJAY2Q3-029, Participants Guide Template - 2020-11-06 (ENG)(ALB) 030

CJAY2Q3-031, SMART Objectives - 2020-11-06 (ENG)(ALB) 032 CJAY2Q3-033, PP Presentation on the workshop on developing professional 034 standards of PEAs – 2020-10-15 (ALB)(ENG) CJAY2Q3-035, PP Presentation the workshop on international principles and best 036 practices in the disciplinary system over PEAs – 2020-10-22 (ALB)(ENG) CJAY2Q3-037, PP Presentation the workshop on normative framework of the 038 disciplinary system over PEAs and case studies – 2020-10-29 (ALB)(ENG) CJAY2Q3-039, PP Presentation the workshop on organizational aspects of the 040 disciplinary system over PEAs and case studies – 2020-11-12 (ALB)(ENG) CJAY2Q3-041, Questionnaire on the PEA’s professional standards – 2020-11-10 -042 (ALB)(ENG) CJAY2Q3-043 Engagement Report of the Senior Enforcement Expert – 2020-11- 30 (ENG) CJAY2Q3-044 Report on the Service Delivery Assessment for arbitration services at the AmCham Arbitration Centre – 2020-11-29 (ENG) CJAY2Q3-045 PP Presentation of the training with the judges on arbitration– 2020-09-09&10 (ALB) CJAY2Q3-046 Live Virtual Roundtable Summary - “The Economy during Covid- 19: Contract law” – 2020-09-03 (ENG) CJAY2Q3-047 Live Virtual Roundtable Summary - “The Economy during Covid- 19: The need and opportunities for online arbitration and mediation” – 2020-09-29 (ENG) CJAY2Q3-048 Live Virtual Roundtable Summary - “Business and Property Rights - Challenge and Opportunities” – 2020-10-16 (ENG) CJAY2Q3-049 Live Virtual Roundtable Summary - arbitration and the interaction between the Commercial Court and arbitration – 2020-11-13 (ENG) CJAY2Q3-050 Engagement Report of the Senior Mediation Experts on the Mediation Awareness Training Series – 2020-11-30 (ENG) CJAY2Q3-051, PP Presentation of the training with the judges on mediation – 052 2020-11-16 (ALB)(ENG) CJAY2Q3-053, PP Presentation of the training with the students on mediation – 054 2020-11-18 (ALB)(ENG) CJAY2Q3-055, PP Presentation of the training with the attorneys on mediation – 056 2020-11-21 (ALB)(ENG) CJAY2Q3-057, Signed Charter of the Mediators Chamber – 2020-09-21 058, 059 (ALB)(ENG)(SRB) CJAY2Q3-060, Signed Regulation of the General Assembly of the Mediation 061, 062 Chamber – 2020-09-21 (ALB)(ENG)(SRB) CJAY2Q4-001, PP Presentation on the TOT Session 2 - 2020-12-21 (ENG)(ALB) 002

CJAY2Q4-003, Course Evaluation TOT Session 2-2020-12-21 (ENG)(ALB) 004 CJAY2Q4-005, Instructor’s Guide TOT Session 2-2020-12-21 (ENG)(ALB) 006 CJAY2Q4-007, Conflict instrument questionnaire TOT Session 2 -2020-12-21 008 (ENG)(ALB) CJAY2Q4-009, Exercises TOT Session 2-2020-12-21 (ENG)(ALB) 010 CJAY2Q4-011, Course Evaluation TOT Session 3-2021-02-25 (ENG)(ALB) 012 CJAY2Q4-013, Trainer Evaluation TOT Session 3-2021-02-25 (ENG)(ALB) 014 CJAY2Q4-015, Tips for online Training - TOT Session 3-2021-02-25 (ENG)(ALB) 016 CJAY2Q4-017 Engagement Report of the STTA 2021-03-04 (ENG)

CJAY2Q4-018 Summary Report of the STTA – TOT review prior to 2nd Training Session 2021-03-04 (ENG) CJAY2Q4-019 Summary Report of the STTA – TOT review after 2nd Training Session 2021-03-04 (ENG) CJAY2Q4-020, PP Presentation on the TOT Session 3 - 2021-03-11 (ENG)(ALB) 021 CJAY2Q4-022, Do’s and Don'ts on the TOT Session 3 - 2021-03-11 (ENG)(ALB) 023 CJAY2Q4-024 Questionnaire of the Organizational Capacity Assessment (OCA) Tool of the CPEA - 2020-12-01 (ALB) CJAY2Q4-025 Action Plan for the capacity improvement of the CPEA 2020-12- 01 (ALB) CJAY2Q4-026 Results report of the Organizational Capacity Assessment Tool (OCAT) of the CPEA-2020-12-01 (ALB) CJAY2Q4-027 Upgraded Research analysis on comparative regional state practice on private enforcement fees – 2021-01-05 (ALB) CJAY2Q4-028 Upgraded Research analysis on comparative regional state practice on private enforcement fees-2021-01-05 (ENG) CJAY2Q4-029 Draft MOJ’s process guide procedures and template forms to handle complaints against PEAs-2021-02-28 (ALB) CJAY2Q4-030 Live Virtual Roundtables Summary - Commercial Justice Week- Development of Arbitration in Kosovo” – 2020-12-14 (ENG) CJAY2Q4-031 Live Virtual Roundtable Summary – “Arbitration vs. Courts: Pros and Cons “-2020-12-15 (ENG) CJAY2Q4-032 Live Virtual Roundtables Summary - “How to further improve arbitration services: Chat with arbitrators” – 2020-12-16 (ENG) CJAY2Q4-033 Live Virtual Roundtables Summary - “Arbitration in the financial sector”-2020-12-17 (ENG)

CJAY2Q4-034 Live Virtual Roundtables Summary - “Arbitration vs court’s jurisdiction on possessions” – 2020-12-18 (ENG) CJAY2Q4-035 Live Virtual Roundtable Summary - “Court’s performance and arbitration” – 2021-02-16 (ENG) CJAY2Q4-036, Report on the Service Delivery Assessment for arbitration 037, 038 services at the KCC Arbitration Centre – 2021-02-26 (ENG) (ALB) (SRB) CJAY2Q4-039, PP Presentation of the training with the judges on mediation – 040 2021-01-27 (ENG) (ALB) CJAY2Q4-041 PP Presentation of the training with the students on mediation – 2021-02-16 (ALB) CJAY2Q4-042, Satisfactory surveys on mediation directed to parties, judges and 043, 044 mediators - 2020-12-21 (ENG) (ALB) (SRB) CJAY2Q4-045, Guideline with templates for settlement agreements - 2021-02-27 046 (ENG) (ALB)

VII. Significant Activities Planned for Next Year • Advocate for adoption of the Law on Commercial Court. • Develop package of Commercial Court Sub-Legal Acts. • Support oversight of Commercial Court personnel recruitment process and results. • Develop Commercial Court job description recommendations. • Develop performance plans and templates for Commercial Court personnel. • Prepare Commercial Court litigation process map. • Assess Commercial Court automated case management workflow and court user interface. • Conduct inventory of Pristina Basic Court Commercial Cases. • Conduct Commercial Court personnel retreat and development of Charter of Expectations. • Completion of the CLTC curriculum development. • Deliver CLTC-based pilot trainings for judges and court support staff. • Present Comparative Regional State Analysis on Enforcement Tariffs. • Complete and present of Cost Study report and recommendations. • Support working group meetings on AI on Enforcement Tariffs. • Deliver workshop with judges on objections to enforcement and PEA misconduct reporting.

• Support assessment of private enforcement compliance with transparency and accountability principles and associated roundtable with justice sector actors. • Monitor third OCAT workshop for Chamber of Private Enforcement Agents. • Conduct surveys and associated workshops on Professional Standards for PEAs. • Completed development of Enforcement Management System (EMS). • Conduct 15 workshops with developing group on EMS. • Conduct 10 trainings for PEAs and support staff on EMS usage. • Support launch of EMS. • Deliver commercial justice business roundtables for businesses around the country, targeting both urban and rural businesses as well as sole entrepreneurs across multiple sectors. • Support arbitration centers in AmCham and KCC to increase the use of arbitration. • Organize roundtables with industry associations for the promotion of arbitration. • Provide support to the recommendations of the service delivery of arbitration centers. • Conduct Mediation Awareness Trainings. • Support judges and court staff in selecting appropriate cases for mediation, based on the approved Guideline on mediation. • Support court filing clerks to advice parties about mediation option. • Support MOJ implementation of five AIs. • Support MOJ to adopt the remaining AI’s on mediation. • Support MOJ and KJC to develop a consolidated database for mediation data collection. • Develop, produce, and broadcast PSA on Mediation. • Complete and publish Mediation Landing Page under KJC website. • Complete and publish Enforcement Landing Page under MOJ website. • Support Commercial Justice content for KJC Communication Strategy.

ANNEX 1 – MEDIATION CASE REFERRAL DATA – Y2

Court referred cases March 2020-February 2021 Criminal cases Civil cases All

Out of Out of Basic Resolved Unresolved which- Total Resolved Unresolved which- Total Total Courts online online

Pristina 360 68 10 428 19 35 / 54 482

Prizren 366 80 / 446 5 13 / 18 464

Ferizaj 235 6 / 241 13 7 1 20 261

Gjilan 186 1 / 187 10 3 / 13 200

Gjakova 95 7 / 102 11 10 / 21 123

Peja 86 8 / 94 3 20 / 23 117

Mitrovica 75 14 / 89 7 8 / 15 104

Total 1,403 184 10 1,587 68 96 1 164 1,751

Note: The data covers the period March 2020-February 2021.

Annex i

ANNEX 2 – INDICATOR TRACKING TABLE – Y2 Commercial Justice Activity March 30, 2021 Contract No. 72016719C00001

# Indicator Baseline T. A. Targe Actual T. A. T. A. T. A. Comments Y1 Y1 t Year 2 Y3 Y3 Y4 Y4 Y5 Y5 Year 2 Purpose: Improve commercial dispute resolution and enforcement to reduce opportunities for economic corruption, thereby encouraging investment in Kosovo. 1 Freedom House 6/16 6/16 6/16 6/16 6/163 7/16 7/16 8/16 Nations in Transit Judicial Framework and Independence Score 2 Public Pulse 43.6% 45% 39.7 46% 36.664 47% 48% 50% Reported with publication of Public Perception of Pulse XIX in December 2020. Judiciary’s Independence Objective 1: Strengthening Kosovo’s Capacity to Resolve Commercial Disputes and Enforce Judgments 1.1 Average number of PBC: PBC: PBC: PBC: PBC: 1033 PBC: PBC: PBC: The KJC annual reporting format has days to resolve 8226 800 515 800 760 684 531 slightly changed in the KJC 2020 5 commercial cases Annual Report and offers more detail in some respects. However, CoA: CoA: CoA: CoA: CoA: 419 CoA: CoA: CoA: for some other aspects, raw data 304 300 468 300 285 256 218 needed to be requested by the Program in order to report CoA data. Based on available data, annual data fluctuations are historically the

3 Freedom House Report 2019 – Kosovo – Section F: Rule of Law 4 Public Pulse Report XIX – Democratization and Economic Confidences Indices 5 Indicator to be reported to USAID Washington, D.C. 6 Needs revision in PIRS, consequently will need to revise annual targets adequately Annex ii

norm. The surge of 2020, doubling the number of days it takes to resolve commercial cases at PBC compared to the year prior is explained by the closure of PBC due to COVID-19 restrictions. As reported in previous reports, due to non-adequate naming of data by KJC, which was identified during Y1, the baseline value for the PBC disaggregation of this indicator will need to be revised. The actual baseline value has been identified to be 620. Necessary changes in PIRS will be requested and made, and annual targets revised accordingly. Improving data quality and performance at KJC is also one of the Program’s efforts, as listed in the relevant PIRS. 1.2 Percent of businesses 21% - - - 25% 35% Reported at baseline, mid-line, end- including Alternative line Dispute Resolution (ADR) clauses in their contracts 1.3 Number of 0 70 Total 50 Total Q4 50 50 40 A total of 52 government officials government Y2 have been trained in Q4 of Y2 by officials trained in 154 314 37 the Program, of which 37 for the support of first time. commercial justice M: 107 M: 211 M: 22 In total, during Y2, 314 government anti-corruption F: 47 F: 103 F: 15 officials have been trained by the efforts (DR.2.4-1)7 Program (103 women and 211 men). This target was already being exceeded with the adaptation of MATS during Y1, and in Y2 has been exacerbated due to the trainings

7 Indicator to be reported to USAID Washington, D.C. Annex iii

being held online as part of COVID- 19 adaptations, and participation being made even more accessible. 1.4 Number of people 0 70 Total 90 Total Q4 90 40 30 A total of 45 persons affiliated with affiliated with non- non-governmental organizations governmental 145 476 38 were trained in Q4, of which 38 organizations trained M: 70 M: 224 M: 18 persons for the first time. in support of commercial justice F: 75 F: 252 F: 20 Similar to the indicator above, the anti-corruption efforts COVID-19 adaptations have (DR 2.4-3) included ad-hoc trainings on COVID-related issues; furthermore, due to restrictions of movement, all trainings were held online, widening the base of participants significantly.

Comparing to Y1 data as well, MEL suggests a revision of targets to reflect the high interest in these trainings not anticipated to this degree. 1.5 Number of USG- 0 18 Total 20 Total Q4 20 15 10 Q4: assisted trainings on Objective 1: commercial justice 1 online training for trainers on 27 23 3 Commercial Law curriculum Objective 2: 2 trainings 2 Mediation Awareness Training Series/ Sessions (MATS) with judges (1), and students (1) from all regions of Kosovo. ER 1.1. The Economic Departments of the Pristina Basic Court and Appellate Court issue decisions more efficiently and professionally. 1.1.1 Commercial case PBC: PBC: PBC: PBC: PBC: 0.28 PBC: PBC: PBC: Based on available data, annual data resolution ratio 0.39 0.39 0.37 0.40 0.42 0.45 0.47 fluctuations are historically the norm. The dramatic changes for CoA: CoA: CoA: CoA: CoA: 0.64 CoA: CoA: CoA: both PBC and CoA in 2020, could 0.35 0.35 0.52 0.36 0.38 0.40 0.43 be explained by the closure of courts in 2020 due to COVID-19, adding up new cases unable to be

Annex iv

processed (also evident in indicator 1.1). Consequently, PBC not processing cases, decreased the opportunity of cases being sent to CoA, leading to the seeming increase in efficiency of the CoA (which was able to operate and process existing cases). Thus, the CoA is only temporarily more efficient, until the PBC begins to process cases again, and doing so creates a large pool of potential cases for CoA, thus resolution ratio is foreseen to decrease in efficiency as soon as bottleneck of commercial cases are released with the re- opening of the courts. ER 1.2. The Economic Departments of the Pristina Basic Court and Appellate Court improve timely enforcement of their decisions 1.2.1 Number of enforced 13,423 14,094 15,501 14,79 TBR8 15,53 15,538 15,538 cases through PEA 8 8 1.2.2 Collected value by EUR EUR EUR EUR TBR9 EUR EUR EUR PEAs 68,264,5 71,677, 55,803, 75,26 79,02 79,024 79,024,6 00 725 731.14 1,611 4,691 ,691 91 ER 1.3. Ministry of Justice provides appropriate oversight over and holds Private Enforcement Agents accountable as set forth in amendments to the Law on Enforcement Procedure. 1.3.1 Number PEAs with 0 0 2 1 1 2 3 4 Disciplinary measured were imposed significant disciplinary on a total of 4 PEAs, however only 1 action imposed upon was imposed significant measures (the maximum fine – twice, as well as a public notice). ER 1.4. Improved organizational capacity of the Chamber of Private Enforcement Agents to more effectively manage its resources, improve enforcement, strengthen professional standards, and retain and recruit staff.

8 TBR: To be reported upon receiving data from MOJ after April 15, 2021, as PEAs have legal deadline to report until March 31, 2021 9 TBR: To be reported, same as above due to same source Annex v

1.4.1 Performance increase 2.21/4 N/A 2.21 2.54/ 2.92/4 2.92/ 3.21/4 3.52/4 of CPEA as measured 4 4 by OCAT annually. ER 1.5. Increased knowledge and effective application of commercial law by judges, court staff, and other stakeholders. 1.5.1 Number of judicial 0 60 Total 15 Total Q4 30 50 30 During Q4, a total of 51 judicial personnel trained 86 216 28 personnel have been trained by the with USG Program, 28 of which for the first M: 66 M: 144 M: 13 assistance (DR.1.3- time. 1)10 F: 20 F: 72 F: 15 Similar to other Program trainings, targets were exceeded due to additional COVID-issue related trainings organized ad-hoc, and furthermore in online format, granting easy access for more judicial personnel to participate. 1.5.2 Percent change in N/A11 N/A 31% 25% 27.5% increase 25% 25% 25% knowledge as increas measured by pre- and e post-training assessment 1.5.3 Number of judicial 0 0 10/ 30 12 (out of 19 10 15 15 From the follow-up questionnaire of personnel that apply 83% respondents) the training on Mediation as an ADR improved commercial 63.15% mechanism law enforcement 19 respondents, 12 Yes, 7 No. practices, as a result The response rate of judicial of USG assistance personnel to follow-up questionnaires is very low. A little over 100 judges have participated in the above-mentioned training with less than 20% responding to the follow-up questionnaire. MEL suggests revising this indicator into a % instead of the number of respondents. ER 1.6. Perception of corruption and satisfaction of businesses with commercial dispute resolution improved.

10 Indicator to be reported to USAID Washington, D.C. 11 No baseline value applicable, as it measures the level of knowledge of trainees before and after program-related trainings. Annex vi

1.6.1 Percent businesses 28.8% - - 34% 42% Reported at baseline, mid-line, end- satisfied with Disaggre line commercial court gation by services. winning, vs. losing cases: 47% winning, 13% losing, 40% neither).

1.6.2 Number of 0 4 Total 5 Total Q4 5 5 4 During Q4 a total of 6 online commercial justice roundtable events have taken place, and business 6 23 6 all under Objective 2. roundtables events. • VTC- Development of Arbitration in Kosovo • VTC- Arbitration vs. Courts: Pros and Cons • VTC- How to further improve arbitration services: Chat with arbitrators. • VTC-Arbitration in the financial sector • VTC-Arbitration vs court’s jurisdiction on possessions • VTC: Court Performance and Arbitration: Chat with USAID As mentioned in previous reports, these roundtable events were low- cost, virtual adaptations to the COVID-19 situation, and thus not planned in the targets. Thus, as announced, target was exceeded this year.

Annex vii

ER 1.7. Administrative claims of businesses are handled more efficiently and professionally. 1.7.1 Business PBC: 0.27 PBC:0.2 PBC: PBC: PBC: 0.23 PBC: PBC:0. PBC:0.35 administrative case 7 0.32 0.28 0.29 31 resolution ratio CoA: CoA: CoA:0. CoA: CoA: 0.46 CoA: CoA: CoA: 0.69 0.69 60 0.69 0.70 0.72 0.75

Objective 2: Enhance Commercial Law, Use of Alternative Dispute Mechanisms, and Improve Public’s Awareness and Legal Literacy. 2.1 Number of PBC: 697 PBC: PBC: PBC: PBC: 576 PBC: PBC: PBC: 888 PBC’s drop in number of cases is in commercial cases 700 715 700 735 808 line with court closures due to resolved per period COVID-19, as reflected in relevant (year) CoA: 237 CoA: CoA: CoA: CoA: 431 CoA: CoA: CoA: indicators above as well. 240 448 240 252 277 305 Similarly, the CoA, like explained in the relevant indicators above, was able to process appealed cases. As mentioned in previous reports, CoA targets may need to be reviewed and re-adjusted to reflect pivoting number of cases resolved in 2019 and a similar trend in 2020. It should be noted, however, that due to the COVID-related PBC closures in 2020, the CoA may face case bottleneck in the coming year(s). 2.2 Percent of businesses 47.4% - - - - 53% - 55% Reported at baseline, mid-line, end- with trust in line Commercial Justice Institutions (CJIs) ER 2.1. Increased use of Alternative Dispute Resolution mechanisms. 2.1.1 Number of cases Med12: Med: Med: Medi Mediation: 1751 Med: Med: Med: From the 1751 cases, 164 are Civil resolved through 1265 1265 2338 ation 1394 1492 1626 cases whereas the others are ADR : Arbitration: 0 criminal cases. 1328

12 Ministry of Justice – Department of Free Professions – 2018 Annual Mediation summary data Annex viii

Arb: Arb: 6 Arb: Arbit Arb: Arb: Arb: 15 Awaiting data from KCC. Due to 913 4 ratio 11 13 COVID-19 restrictions, arbitration n: 9 cases, which in Kosovo are not the norm yet under normal circumstances, have had a sharp drop due to inability to convene. While online Mediation was promoted, something similar was not possible for Arbitration.

2.1.2 Percent of ADR Arb: N/A Arb: N/A - Arbit Arbitration: Arb: Arb: Arb: Arbitration: 5 respondents to users/businesses ratio 100% 40% 55% 60% arbitration satisfaction survey (2 for satisfied with ADR n: KCC, 3 for AmCham). services 40% Med: N/A Med: N/A - Medi Mediation: 78% Med: Med: Med: Mediation: 45 mediation satisfaction ation 50% 55% 65% survey respondents, with 35 of them : reporting satisfaction 40% ER 2.2. Commercial legislation harmonized with European Union (EU) and international best practices. 2.2.1 Number of new 0 10 5 7 0 4 9 4 The halt on adopting new laws or laws and secondary secondary legislation is tied directly legislation to to the government and political improve instability, coupled with the commercial justice pandemic situation, and intended finalized and efforts are postponed to Y3. adopted using USG assistance14 ER 2.3. Improved strategic communication between commercial justice institutions and the general public. 2.3.1 The number of CJIs 0 1 2 3 3 5 - - The CJIs supported: supported in strategic • Ministry of Justice communication • Kosovo Judicial Council • Chamber of Private Enforcement Agents

ER 2.4. Increased public awareness of commercial law dispute resolution and enforcement mechanisms, including existence and nature of reforms.

13 American Chamber of Commerce- 2018 Annual Arbitration data (1) & Kosovo Chamber of Commerce – 2018 Annual Arbitration data (8) 14 Indicator to be reported to USAID Washington, D.C. Annex ix

2.4.1 Percent of general 23% - - - - Progr - Progra Reported at baseline, mid-line, end- public aware of the Disaggre am m35% line commercial justice gation by 30% gender: Male: 24% Female 23% Disaggre gation by Business- owner: 30% Public P.P: P.P: 50% Pulse 45% baseline result: 39%

2.4.2 Percent of general 31% - - - - Prog: - Prog: Reported at baseline, mid-line, end- public aware of the 33% 35% line ADR mechanisms Disaggre gation by gender: Male: 30% Female 33%

Disaggre gation by Business- owner: 30%

Annex x

Public Public Public Pulse Pulse Pulse: baseline : 40% 42% result: 38%

ER 2.5. Commercial Justice Institutions more effectively advocate for adoption of their initiatives. 2.5.1 Number of initiatives 0 0 Total 6 Tot Q4 4 4 2 Due to government and political adopted instability, coupled with the pandemic situation, advocacy 0 4 0 initiatives are postponed to Y3.

2.5.2 Number of public 0 0 - 6 0 8 8 - Due to government and political officials trained on instability, coupled with the advocacy pandemic situation, advocacy training to public officials is postponed to Y3. Cross-Cutting ER. Commercial justice-related internship program is operating and self-sustainable. CC.1 Number of interns 0 3 2 6 7 6 5 0 5F, 2M. that complete F: 1 So far, the Program has had 9 interns internship program M: 1 complete their internships over the course of the project. 8 more have started in Y2 but will complete their internships in Y3.

CC.2 Sustainable internship No N/A - N/A Partner Sustain Sustainab Reported annually starting from Y3. business model organization able le identified s identified interns commer hip cial busine justice ss internshi model p drafte program d establish ed

Annex xi