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