Kosovo government has decided to privatize Kosovo Post and Telecom (PTK) and its mobile operator Vala.
The government has estimated the value of the company to be around EUR 700-800 million.
According to Prime Minister Hashim Thaçi, Kosovo Telecom and Vala present attractive assets, able to draw interest and considerable private capital.
“The government believes that this project will make possible a larger number of infrastructural projects. Privatization of Vala and the telecom will be accompanied by the highest standards of transparency and competition, through an open and professional offering process,” said Thaçi.
Minister of Economy and Finance Ahmet Shala said that the decision to consider the involvement of the private sector in this sector is necessary, maybe even late.
An inter-ministerial commission will be formed which will create the tender to select an international consulting company which will suggest options and create the tender on how best to involve the private sector.
PTK is currently the most profitable public company in Kosovo. It has a history of mismanagement and corruption by locals and, previously, its international supervisors, and critics have accused government officials for conflict of interest with ownership in competing companies, which they say, have led to policies which prevent PTK from competing in the market.
The EU Special Representative (EUSR) to Kosovo Pieter Feith has welcomed the news, after earlier criticizing the government for failing to work on the privatization of public companies.
New Kosova Report