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POE Division

The Kosovo Trust Agency and the Publicly Owned Enterprises

Mission

The United Nations Interim Administration Mission in Kosovo entrusted the Kosovo Trust Agency (KTA) to administer the following publicly owned enterprises (POEs):

  • District Heating Enterprises in Gjakova and Pristina;
  • Kosovo Electricity Corporation (KEK);
  • Kosovo Railways; 
  • Post and Telecommunication of Kosovo (PTK)
  • Pristina International Airport ; and
  • Water, Waste and Irrigation Enterprises.

With a total staff of about 14,000 people, the POEs rank among the largest employers in Kosovo. Given the large annual turnover, they also reckon among the major contributors to the consolidated budget.

The administrative authority of the KTA, as set forth in the UNMIK Regulation 2002/12 , “shall include any action that the Agency considers appropriate to preserve and enhance the value, viability or governance of the enterprises.” To achieve this, the Agency should:

  • Ensure that the enterprises exploit their market opportunities to the fullest;
  • Make sure that the enterprises are managed as profitably as possible;
  • Make sure that when the enterprise provides a public service, the quality of the service provided is high and reasonable and that it complies with all applicable regulations;
  • Seek payments from the public entities mandating the provision of services, when the value of the public service provided cannot be recovered in the market.

Incorporation

The KTA has launched a major incorporation program to transform these enterprises into modern corporations with clearly defined entities, corporate governance, and audit structures. However, this process also includes a meticulous assessment, review and appraisal of all existing assets/liabilities, operations, contracts and cadastre and other official records and management structures, as well as a wide range of other legal, commercial and financial matters.

The purpose of such an exercise is to ensure that everything is properly and correctly documented, recorded and registered, that assets and contracts are identified and transferred to the right entities, cadastre records and other registrations are updated or recorded in the correct name.

To date, the KTA has incorporated all major POEs. In cooperation with PISG (Provisional Institutions of Self-Government) and UNMIK institutions, KTA has appointed POEs Boards of Directors, consisting of members from KTA, PISG and UNMIK, which supervise the management of POEs, strategic planning and vote on major issues regarding the POEs. 

Corporate Governance

Following incorporation, regular Boards of Directors have been established as the highest governing body in all incorporated POEs. PTK, Pristina International Airport, KEK, Transko, Kosovo Railways and the two District Heating enterprises have their Boards of Directors in place.

KTA has also introduced a policy of subsidy monitoring and control, which allows POEs to self sufficiently manage its entire budget regardless of its funding source.

Kosovarisation 

A major step towards the Kosovarisation of POEs has been achieved with the appointment of a local Deputy Managing Director of KTA for POEs, and all all incorporated POEs have appointed a local managing director.

Individual succession plans have been drawn by the respective POEs to Kosovarise the senior management positions in these enterprises. Kosovar Directors have been appointed to The Boards of POEs with at least three members from the Kosovo Governemnt (PISG) in each Board of incorporated POEs.

Water, Waste and Irrigation Consolidation

In 2003 and 2004, t he KTA conducted a successful project of consolidation of the 45 Kosovo water, irrigation and waste enterprises into 17 regional companies. Water, Waste and Irrigation enterprises will be incorporated in 2007 with funding from EAR and KfW.

Regular auditing of the POEs continues to be implemented and audit recommendations are being supervised by the Boards of Directors of the incorporated companies. 

Click here to view the audit reports of POEs

Click here to view the Corporate code of conduct

Click here to View the List of POE Boards of Directors

Click here to View the List of Water, Irrigation and Waste Boards of Directors

Web links:

 
KTA