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1 Invest in KAÇANIK.$þ$1,..$d$1,..$ÿ$1,. MUNICIPALITY

2 2 Invest in KAÇANIK KAČANIK For Contact Details Visit us at: Layout and Design: Photography: Kaçanik/Kačanik Municipality

3 3 SERBIA Mitrovicë/Mitrovica MONTENEGRO ONTENEGRO 3HMs 3Hý Pristina Gjilan/Gnjilane Ferizaj/Uroševac *MDNRYs ĂDNRYLFD.DoDQLN.DÿDQLN Prizren/Prizren ALBANIA MACEDONIA

4 4 Foreword by the Mayor The Municipality of Kaçanik is making continues efforts in creating a healthy environment for general development, and with particular emphasis on economic development of the municipality, by taking into consideration the competitive advantages compared to the countries of the region. Kaçanik today has its plan for integrated development which determines the primary objectives in all the sectors for the purpose of creating a favorable climate for investments and development. The future of Kaçanik as a municipality is very promising having in mind the large surface and sub-terrain resources, nature and landscape for the development of rural tourism, the climate and suitable terrain for the development of winter tourism, abundant supply of water, a signifi cant wealth of cultural heritage, history and archeology. Furthermore, Kaçanik has a considerable advantage by having easy and quick access to the main transport arteries of both people and goods. Its proximity to two important airports and its neighboring position with one of the largest trade partners of Kosovo Macedonia places Kaçanik in a more privileged situation in comparison to other municipalities. Additionally, the municipality is favorably predisposed for the development of agriculture and forestry, and has an admirable tradition in both industrial and artisanal activities. Our strategic orientation is to capitalize all of these resources and opportunities by utilizing the extraordinary potential of water resources, very good climate conditions for agro-economic activities and the generation of renewable energy, and lastly, also the extraordinary potential of a very young and active population. We are critically interested to utilize the wealth of the municipality for the purpose of capital investments which would improve the wellbeing of the citizens through economic growth and creation of jobs. The Municipal Administration has recently identifi ed a range of locations which it would make available to potential investors. With this particular aim, we have applied a large package of facilitative measures which are aimed at promoting investments; starting from the removal of municipal taxes and up to the maximal simplifi cation of procedures for business registration in the municipality. Finally, but equally important, the municipality is distinguished by a professional and effective administration, while from this year onwards it has its own Center for Municipal Services which operates according to the one-stop-shop principle (bringing all the service to one place), something which guarantees swift and quality services. Thank you, Mr. Besim Ilazi Mayor of Kaçanik/Kačanik Municipality

5 Country Data 5 Kosovo Southeast Europe, in the heart of the Balkans, time zone GMT+1. Part of the Central Europe agreement on free trade (CEFTA). Geostrategic position: in the crossroads of European corridors 7 and 10 main route between Europe and Asia. Four neighboring countries: Albania, Macedonia, Montenegro and Serbia. Territory: 10,887 km2 encircled by mountains and divided into two sub-regions with similar size, population and terrain. Soft continental climate, with average temperatures in January of -5oC and 24oC in June with favorable downfall. Kosovo has favorable business conditions in the region. Based on the business report indicators of the World Bank, the government of Kosovo has undertaken fundamental reform initiatives for the improvement of the business environment, specifi cally the government has: Removed the business license requirement; Has reduced the required documentation for export-import; Has removed the tax for all business registrations; Has removed the requirement for depositing the foundation capital for companies with limited liability; Has increased investor protection;

6 6 Municipal Profi le The municipality of Kaçanik is situated in the southeastern part of Kosovo with a surface area of 211 km2, specifi cally 1.94% of the total surface area of Kosovo (10,887 km2). The municipality of Kaçanik is comprised of 31 settlements, 1 with an urban character and 30 rural ones, while it borders with the municipalities of Viti, Ferizaj, Shtërpce and in the south with Hani i Elezit and the FRY Macedonia. A key predisposition in the development capacities of Kaçanik is the position of the municipality in the fl ow of road and railway traffi c. The main road Prishtina-Skopje, as well as the railway, Fushë Kosovë Thessaloniki, as two vital arteries in land transport in Kosovo, passes through the territory of the municipality and close to the urban center. Additionally, Kaçanik is the main border crossing between Kosovo and Macedonia in two points Hani i Elezit and Glloboçica. The municipality is at a distance of 50 kilometers from the capital of Kosovo (Prishtina) and a distance of 35 kilometers from the capital of Macedonia (Skopje), whilst the average distance to their airports is 50 kilometers. As for maritime transportation since the construction of the National Highway a few years ago access to the port of Durrës and port of Shëngjin (Albania, both at a distance of 280 kilometers) is reached in about 4 hours. Also the port of Thessaloniki (Greece) is a good alternative option which enriches the transport potentials. The economy of Kaçanik is based on the production of construction materials like: cement, special adhesives, concrete, etc. There are potential opportunities for the development of agriculture-animal farming, beekeeping, plantation farming, different crafts, as well as winter and summer tourism. Kaçanik has a tradition of private industrial activity and is known for its good wood processors, for its skilled construction masons, craftsmen, limestone quarries, wood products for the construction industry and craftsmen in wood processing, tailors, goldsmiths, etc. Kaçanik is distinguished by the fact that two rivers pass through its territory Lepenc and Nerodima which join together in the southern exit of the city. In addition to two rivers, two different climate zones persist in Kaçanik. In southeast of Kaçanik the warm Mediterranean climate meets the cold Continental one. According to health experts this feature makes Kaçanik a favorable region for those suffering from tuberculosis and bone illnesses. Consequently, only a few decades ago in the eastern part of the city the sanatorium for those suffering from tuberculosis was in function.

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8 8 Municipal administration The local government in Kaçanik is comprised of two bodies: the Municipal Assembly (legislative body) which is the highest local government institution comprised of plenary and permanent commissions, and the Municipality, the executive body, comprised of the Offi ce of the Mayor, municipal directors and staff. The Mayor of the Municipality is the highest executive authority in the municipality and is elected directly by votes of the population for a four-year mandate, which means that the local elections are organized every four years according to the legislative framework. One of the most important institutions which operate in our municipality is the economic development offi ce. The offi ce is equipped with trained and proactive staff, which provides full support for business and economic development in the municipality, starting from business registration services and up to full support for investors. The administration pays particular attention to effi ciency. All the requests of the business community are processed swiftly and with particular attention in order to fulfi ll all of their needs. By seeing the need to create an improved business environment, the municipality has undertaken an initiative to provide particular attention to attracting investment through the provision of different opportunities, in other words by reducing taxes, with incentives and other preferential benefi ts for investment. With the review of the law on awarding municipal real-estate for utilization, the Municipality has the right to award the property it owns in order to stimulate economic growth. In this context, the Municipality has recently identifi ed 713 parcels of municipal property which represent 2.4% of its overall territory, which it could award for utilization for a period of 99 years. In line with this opportunity, the process of awarding municipal property has been simplifi ed through organizing an auction. These elements create a favorable environment for the attraction and implementation of investments by having the Municipality as a trusted partner throughout the whole process and in your business activities.

9 Incentives facilitative measures for investment 9 The Municipality has adopted formal legal acts with the aim of stimulating investments. These facilitative measures are even more noticeable for business that employ a large number of people and are foreseen in specifi c legal acts adopted by the Municipal Assembly. Furthermore, also the Value Added Tax, Income Tax, Profi t Tax are of the lowest norms and levels in the region and represent a driver for investments. Property tax which is collected by the municipality continues to be favorable to business operators. During the recent increase in the property tax norms, the increase of the norm for buildings of a commercial character was excluded. Obtaining of the license The licensing of business in Kosovo is done through the Business Registration Agency in the Ministry of Trade and Industry, which has offi ces in each municipality. The registration is done within hours with a cost of 5.

10 10 Natural Resources, Tourism and Competitive Advantages Kaçanik has a tradition of private industrial activity and is known for its good wood processors, for its skilled construction masons, craftsmen, limestone quarries, wood products for the construction industry and craftsmen in wood processing, tailors, goldsmiths, etc. Determined mineral reserves are estimated to be around 15 million tons of marl in Hani i Elezit and about 30 million tons near the village of Paldonica. Reserves of limestone in the Kaçanik Cape are in the amount of 127 million tons, while considerable reserves are found in the vicinity of the village Ivajë. Kaçanik has natural wealth in forests, land and water. The amount of forest area accounts for about 60% of the territory, while, the amount of agricultural land represents 35% of the territory. Kaçanik is considered as one of the wealthiest Albanian places with abundant and beautiful forests. The Kaçanik Mountains, known throughout the region, make it attractive for holidays. What make it special in this regard, or for holidays, are the Luboteni Peak and the picturesque slopes of the Sharr Mountains which provide great opportunities for the development of mountain tourism. Kaçanik is known also for important locations of national historiography. The Kaçanik Gorge a prominent natural beauty is of particular historic importance for all Albanians, as it is where crucial battles took place for the freedom of the nation. This makes it very attractive, especially for visitors from Kosovo and other Albanian lands. The Cultural Centre in the city is the location where the Constitution of Kosovo was announced in 1990, which is also known as the Kaçanik Constitution. The cultural heritage of this area represents a huge wealth of spiritual and material values from antiquity and up to current times. According to information and historical and archeological discoveries, the municipality of Kaçanik, part of the ancient Dardania, is also considerably wealthy in indigenous material values. Archeological discoveries have been found in Bob, Kaçanik, Old Kaçanik, etc., which date back to the II century A.D. The data speaks of about 60 heritage objects of cultural, historical and archeological values. The Kaçanik Castle is a cultural and historic monument which enriches the tourism offer of these lands. The Castle is located in the center of the city. It was constructed at the end of the XVI century (1995). Also in this period the Kaçanik Mosque was built by the Great Vizier, Imam Sinan Pasha (1594), a Turkish Pasha of Albanian origin who is known as the founder of the Kaçanik town.

11 Quality of life 11 The territory of Kaçanik municipality offers a very clean and healthy environment. In the southeast of Kaçanik the warm Mediterranean climate meets the cold Continental one, which enables a very favorable environment for lungs and bones. (Unclear in the original) The western and eastern part of the Kaçanik mountains offer extraordinary opportunity for rest and recreation. The best of these today is the location called the Meadows of Strazha. The possibilities for a qualitative life are enriched by the proximity of the municipality with the ski center at Brezovica and the clean Sharr Mountains. A suffi cient number of hotels, commercial facilities, banks and restaurants operate in the territory of the municipality, as well as having recreational areas, cultural center and religious sites. There are many cultural and artistic, and sports events organized in Kaçanik aslo. Unemployment is one of problems which the local population of this area is facing, like the Kosovar society in general. Different research has shown that the level of unemployment in the municipality of Kaçanik is quite high. About 32.8% of the active population is recorded as unemployed in the employment offi ce registers. The jobseekers reporting to the employment offi ce in this municipality recorded as unemployed are about 32.8%. (Repetition)

12 This publication was funded by the United States Agency for International Development (USAID), Democratic and Effective Municipalities Initiative Program in Kosovo. The views expressed in this publication do not necessarily refl ect the views of the United States Agency for International Development or the United States Government.