MZHE: Kosovo Telekom towards recovery

The Ministry of Economic Development says Kosovo's Public Association Telechemy U.S.A. Since 2015 it has been facing a deep financial and operational crisis. Over the past three years, according to the ministry, the financial losses of the company are worth between 8m and 52m euros a year. Beyond the measures taken by the board of directors and current management, this company continues to mark financial losses that seriously jeopardise its liquidity.

“In an operational respect, the board of directors in May 2018 has made a decision to open the phase of restructuring, halt employment and promotions at the company. Also, measures have been taken in reducing operational spending. Furthermore, a plan for emergency investments, which they expect to be realised within a short time of”, has been drafted, the MZE communiqué said.

In co-operation with the Board of Directors, according to the comical, Minister Valdrin Luka, who is responsible for Public Enterprises, has asked the European Bank for Reconstruction and Development (BERZH) to provide technical assistance (in the form of the grant) for the restructuring and reposition phase of the company. In demand, Luka has noted the fact that the Government of Kosovo, on the basis of its governing plan, envisions the privatisation of this company. It has also made it clear that before each privatisation decision, improved performance of the company, as well as the practices inside it is priority and would precede any other process.

“The EBRD has responded positively, in which its readiness is expressed: providing technical assistance in the restructuring phase, providing a loan of up to 25m euros, and drafting a document on steps Kosovo Government must follow for the privatisation of this company, which, among other things, is based on principle as follows: the fair assessment of each bid for privatisation of Telekom, commitment and transparency in this process, encouraging competition and reviewing of processes and processes within Kosovo Telekom <11x>, among other municipalities.

In addition, this procedure has begun to take into account that so far, at least 4 companies from different EU and US countries have expressed interest in the partial or inflammatory takeover of Kosovo Telecom Company.

In order to prepare this process, which, as mentioned earlier, will only be initiated after the completion of the company's restructuring and increased value, the International Administration Commission's recommendation for Public Enterprises authorisation of the government commission for privatisation of the company was approved.

It is noteworthy that the social dialogue between the shareholder and the labour union will be an important part of this process, as it has been so far, to ensure that workers' interests are deemed worthy.

Meanwhile, the European Bank for Reconstruction and Development (European Bank for Reconstruction and Development (EBRD)) will ensure not only transparent process, but more importantly, confidence in all concerned in the process.