Tuesday, June 27, 2006

Kosovo Picks 2.7 Mln Euro Bid for Winery, 2.5 Mln Euro for Quarry

PRISTINA (Serbia), June 27 (SeeNews) - The privatisation authority of the U.N.-run Serbian province of Kosovo said it had picked provisional buyers for a winery, who offered to pay 2.7 million euro ($3.39 million), and for a quarry, who offered 2.5 million euro.

Kosovo Trust Agency (KTA), the body charged with the sale of hundreds of state-owned companies in the province, discloses the names of the buyers only after it signs privatisation contracts with them.

The Kosova Vera winery owns 19 hectares of land with 15,000 square metres of built-up area. It is fully equipped for wine production but relies on third parties for grape supply. The winery was put up for sale in the beginning of the year. KTA had extended the bidding deadline by nearly two months due to lack of bids, KTA said on its website.

The Cikatova quarry assets include some 10,000 square metres of built-up area, while the total land area under its ownership is nearly 64 hectares.

KTA also said it had picked buyers for the companies, offered for sale in the 15th wave of privatisation in Kosovo.

Details follow about prices received by KTA for the companies included in the 15th privatisation wave.

COMPANY.............................LINE OF BUSINESS...........HIGHEST BID (in euro)

1. IFS Progress Prizren..........polyester producer.................1,110,000

2. Kosovotrans ...........................transport............................505,000

3. IFS Progres Istog.............polyester producer....................776,527

4. Agri-Station Gjakove......administrative building ................717,000

5. Restaurant Tirana..................restaurant.............................222,222

6. Magjistrala..........................agricultural land.......................166,000

7. Agri-Land Qesta................agricultural land.........................314,500

8. Malishgan........................agricultural land..........................355,555

9. Motel Nora .......................motel and restaurant.................443,194

10. Gusar ...............................cattle farm...............................131,000

11. Gusar...........................agricultural land...........................240,000

12. Leshan..................................warehouse...........................101,000

13. Koretin...........................agricultural land..........................45,555

14. Kamenica.........................veterinary..................................15,000

15. Viti........................................veterinary.............................91,265

16. Tregtia Shtime ...................shopping mall.........................942,000

17. Tregtia Prishtine & Lipjan......shopping mall.......................384,750

18. Runiku..................................office premises.......................61,235

19. Hotel Palas..............................hotel....................................305,550

KTA, which seeks to sell 90% of the assets of 500 state-owned companies in Kosovo by mid-2006, has sold around 320 of them so far, earning around 250 million euro.

Legally still a province of Serbia, Kosovo has been under U.N. administration since 1999 following NATO bombings that expelled Serb forces to end what Western powers said was repression of civilians in fighting an ethnic Albanian rebel insurgency. U.N.-brokered talks are underway to determine the future status of Kosovo.

13 comments:

DimTuc said...

Hmmm. 320 enterpises, over 60% of the total stock of social enterprises, for 250 m. Maybe that's good, I don't know, depends on the size of the enterprises. Maybe they're not big. Though I remember thinking the price you got for Feronikl sounded like a bargain, to put it mildly, for the buyer, that is.

Is anyone out there able to tell me whether you think you're getting fleeced? I mean, maybe you have little choice, since it is not Kosovars but internationals making the decisons. But would I be right?

ivan said...

250ml $, its quite a lot for Kosova ;)

Dardania 2006 said...

Good question,

Ivan do you have any comparisons? :|

DimTuc said...

250 m a lot for Kosova? Maybe, I don't know. For 60% of all social enterprises in the country? Maybe. But when I read, for example, "A Zurich-based consortium of International Mining Resources (IMR), part of the Eurasian Natural Resources group, and the Alferon management company paid 30.5 million euros for Ferronikeli, which is estimated to have 13 million tonnes of nickel ore", I think, hmm, nice investment, if you can find one: they paid about 2 euro per tonne of nickel. What's the world price of nickel these days?

betabe said...

Well, actually there is high competition in privatisation process in Kosova. According to my estimates, almost each enterprise has been sold with higher value than what the enterprise is really worth. Therefore, taking into account that 90% of enterprises were not active since 1990 with deteriorated assets, or with assets transferred to "parent companies" in Serbia during 90s, 250 m is quite a lot for those enterprises.

Newkirkistanian said...

The biggest determinant on selling the SOE's probably isn't the size, but the condition. A good number of these places have seen almost twenty years of neglect and conflict at this point. There wasn't much capital investment during the conflict years, or even before.

The 2.7 million for the winery is good, probably for all concerned. Its enough that whoever placed the bid is probably looking for the enterprise to become profitable, i.e. their not just strip-mining whatever resources are left. But its also probably a fair price.

I know its a bit crazy sounding, but I think Kosovo may have a strong economic future, at least in the short to mid term. They've got a young, relatively well educated work force. For much of this younger generation, English is a strong second language at this point. Their biggest drawback is probably the question of access to markets. They'll need to work out a stronger regional cooperation system. (Always a tough task in the Balkans!)

NYoutlawyer said...

250 m, gee I wonder how much of that the average kosovar will see, after ali baba ceku and his band of thieves in the government take their cuts.

Dardania 2006 said...

At least we know 250 milion will not go for rape, genocide and attrocities.

My oh my but I forgot, Serbia did this for free!!! On volunteer basis...

NYoutlawyer said...

Don't you shifters ever get tired of those 3 words, rape, genocide and atrocities? Do you think every Serbian raped an Albanian woman?

Every time a comment is made in referrence to kosovo's corrupt government, and we know it is, it was stated as such by the UN, shifters answer with their 3 little words.

Ask your war criminal Ceku how many Serbians he is responsible for killing.

mitrovica pika pika said...

"Ask your war criminal Ceku how many Serbians he is responsible for killing."

Obviously not enough!

mitrovica pika pika said...

Don't you shifters ever get tired of those 3 words, rape, genocide and atrocities?

those three words are synonymous with the word serb. Now go fuck your mother!

NYoutlawyer said...

Go fuck your own whore mother shitpar, if you know who she is?

Newkirkistanian said...

This was the first reasonably informative comment section on this damned site. Put a sock in the ethnic name-calling, okay? Don't you think that maybe all of that crap didn't work out so well?