Kosovo: 23rd wave of privatisation announced

Prishtina, 15 February 2007 The Kosovo Trust Agency (KTA) yesterday formally launched the 23rd wave of privatization of Socially Owned Enterprises (SOEs).

The KTA notified the SOEs management and the relevant municipalities in the beginning of February, following the KTA Board meeting on Thursday, February 1st – that they would be privatised.

The list of privatisation tenders for the 23rd wave includes 20 SOEs, which will create 25 new companies (NewCos). 19 SOEs will be privatised via Regular Spin-off, creating 24 NewCos, while one SOE will be privatised via Special Spin-off, creating 1 NewCo. The last day for pre-qualification is April 11, 2007.

Following is the list of SOEs to be privatized in this round.

NewCo “Domestic Products” L.L.C. – provides an excellent opportunity to purchase commercial area and huge warehouse space as well as good location for business expansion, situated in two separate locations very close to each other on the outskirt of Ferizaj/Urosevac. After popping into venturexfranchise.com, it is being found out that the total area of the offices and warehouses is approximately 3,434 m² (0.34.34 ha).

NewCo Morava e Binçës Administration L.L.C. – this tender provides an investor with the opportunity to acquire one of the largest administrative buildings in Gjilan/Gnjilane located in a prime location in the town. The property subject of this tender has a total area of approximately 20678 m² (2 ha 6 are 78 m²). The administrative building covers a surface of approximately 836 m² and has B+3 floors with approximately 2580 m² of total floor surface. Other supporting buildings cover approximately 2830 m² in total.

NewCo Morava e Epërme “Shopping Mall Viti” L.L.C. – this NewCo will provide an excellent opportunity for purchasing of the only shopping mall together with office space that comes with glazed partitioning, located in the centre of town. This will be a major commercial opportunity. Total area of the shopping mall with the offices is approximately 2500 m².

NewCo Forestry Koshutan Hill – Çubrel/Cubrelj Skenderaj/Srbica L.L.C.- provides the potential investor with an excellent opportunity to acquire about 5.12.06 m² (5ha 12are 06 m²) of pasture land suitable for different kind of business located in very convenient location near the main road from Skenderaj/Srbica towards Peja/Pec

NewCo Farm Picel/Picel – AC 23 Nëntori L.L.C. – includes 632,115 m² (63 ha 21 are ) of pasture land located in Picel location in the Bajgorë/Bajgora village Mitrovicë/a municipality

NewCo Malishgan Jashanicë/Jošanica Agricultural Land L.L.C. – includes about 193 ha of fertile agricultural land near Klinë/Klina.

NO premises, livestock or moveable assets are included in this tender.

NewCo Agricultural Land Shaptej/Šaptelj – Gramaçel/Gramocelj L.L.C. -offers to investors about 170 ha of agricultural land in Deçan/Decani Municipality. The land is suitable for cultivating different crops and vegetables.

NewCo Agricultural Land Irzniq/Rrznic – Gllogjan/Glodane L.L.C. – offers to potential investors about 125 ha agricultural land in Deçan/Decani Municipality. The land is suitable for cultivating different crops and vegetables.

NewCo Malishgan Bingjë/Bica Agricultural Land L.L.C. – offers investors the opportunity to buy about 142 ha of agricultural land in Klinë/Klina Municipality. The land is suitable for cultivating crops and vegetables.

NewCo Mulliri Shops Ferizaj L.L.C. – offers the possibility to aquire a commercial property located in Ali Kelmendi Street which is located in the south part of the centre of Ferizaj. The premises have a total surface area of approx. 36 m².

NewCo Mulliri Shops Fushë Kosovë L.L.C. – provides potential investors the opportunity to acquire commercial property located with a total surface of approx. 89.61 m² which is located in in Nëna Tereze Street, Fushë Kosovë. The assets include two shops located in the basement of one building. The first shop is situated on the front side of the building and has a surface of approx. 55.5 m². The second shop is in the back of the building and has a surface of approx. 34.11 m².

NewCo Pashtriku L.L.C. – offers an excellent opportunity to potential investors to acquire a two-storey commercial facility strategically located in Dardania, Prishtine/Pristina. The conditions of the premises are in a fairly good state and comprises approx. 325 m².

NewCo Besa Agriculture Land L.L.C. – offers good agriculture land and strategic location of administrative building. With a small investment, output of agricultural products can be increased significantly.

NewCo Ingenering Dardania Shop L.L.C. – provides an opportunity to acquire a shop of approximately 807m². The shop appears to be in a good state and is situated in basement block of flats BL-7 in Dardania, Ilaz Kodra Str, Prishtinë. Currently it is rented on a commercial basis.

New Co Ingeniering Tregu Shops L.L.C. – provides an opportunityto acquire five shops in the centre of Prishtinë/Priština. The shops are located on the first and second floor of the Shopping Center, Maliq Pashë Gjinolli Str, Prishtinë, near the Green Market. The total area of shops is approx. 59 m² The shops appear to be in good state of repair and are currently vacant.

NewCo Furniture factory – 28 Nëntori L.L.C. – provides an investor with the opportunity to acquire a Furniture Factory with attractive store facilities on a single land area of approx. 6,485.32 m² with a very attractive commercial position in the centre of the town of Podujevë/Podujevo.

NewCo Magjistrala Peja L.L.C. – provides investors an opportunity to acquire a land plot of approx. 30865 m² including two buildings with a surface of approx. 432m² located near the centre of Pejë/Pec. The unit has the equipment to maintain roads, clear the roads from snow, repair street lights etc.

NewCo Sharrprodhimi “Farms in Mejdan” L.L.C. – will include land of 3 cadastre zones in Bellobrade (PL No 69), Buzez (PL No 89) and cadasatre zone of Kapra (PL No 92), the total surface of land for the NewCo will be of approximately 450 hectares of land including farm buildings (7) each with an approximate surface of 1,500m² registered in the name of SOE.

NewCo Zhupa Recane – Supermarket in Donje Lubinje L.L.C. – includes Supermarket located in attractive part of village Donje Lubinje, on a site of approximately 3 ares 21 m² and which includes a 2 floors building with a total surface area of approximately 260 m² and 61 m² of yard registered in the name of SOE.

NewCo Mirusha “Vineyards/Agricultural Land Banja” L.L.C. – will include vineyards (non active), as well as arable land with a surface of approximately 1,100 hectares and including a number of buildings with a total surface area of approximately 2,200 m².

The New Co offers sufficient farmland suitable for grape production as well as cultivating different crops on an industrial scale. Conditions like soil and climate enable the future owner to continue with the cultivation of grapes.

NewCo Mirusha “Vineyards/Agricultural Land Malisheva” L.L.C. – will include vineyards (non active), as well as arable land with a surface of approximately 400 hectares and including a number of buildings with a total surface area of approximately 3,000 m².

The New Co offers sufficient farmland suitable for cultivating different crops on an industrial scale. Conditions like soil and climate enable the future owner to cultivate various crops and other agricultural products.

NewCo Liria “Sheshi i Lidhjes së Prizrenit” Shops L.L.C. – comprises a commercial complex in Prizren’s city centre, which is divided into two shops at present with a total surface of approximately 397,59 m² . Currently one shop is leased to a third party while one shop is closed.

NewCo Liria “Dardania” Shop Prishtinë L.L.C. – comprises a commercial complex in Prishtina’s city centre in “Dardania” location, which is composed of one shop (ground floor and basement) with a total surface of approximately 159,63 m². Currently the shop is rented out by the Enterprise.

NewCo “Thertorja-Exportuese” L.L.C. – is an attractive meat processing company and the only licensed producer in Prizren region.

The production facility is located in the industrial zone of Prizren on a site with a surface of approximately 1.76.61 hectares, includes 3 (three) production units and an administration building.

Last Day for Pre-qualification is: 11 April 2007

The Day for submitting bids is: 18 April 2007

KTA is pleased to invite potential investors to bid on the 23rd wave NewCo’s tendered with Special Spin-off

NewCo Minex L.L.C. – the premises subject to this spin-off are located on the outskirts of Ferizaj town, Gjilan Region and comprise a number of buildings of about 8,500 m² total floor area equipped for the manufacture of snack foods. The facility is located in a total of about three hectares of land, some of which could be used for alternate development.

Note: Bidders should be aware that special conditions regarding credit investments and employment of staff are attached to the tender.

Last Day for Pre-qualification is: 11 April 2007

The Day for submitting first bids is: 18 April 2007

The Day for submitting second bids is: 25 April 2007

For the following NewCo the Date will be Determined

NewCo Bauxite Mine in Volljak L.L.C. – bauxite operations were initiated in 1966 and have exploited a series of bauxitic lenses with overlying limestone which occur in the area of Klina. The bauxite resources have been mined from a series of open pits, and traditionally were trucked approximately 3 km to an open storage area where they were subsequently loaded into railcars. Ore reserves (using the A, B, C1 socialist categorization) are in the region of 1.7 million tones of bauxite grading between 46.7 and 52%. Resources (c2, D, indicated0 are in the region of 4 million tones of bauxite. Associated limestone overburden totals approximately 40 million tones. This limestone sufficiently pure to traditionally be sold to the Trepca and Feronikeli smelters.

More information at www.kta-kosovo.org

ECIKS