Kosovo Manufacturing Club together with Kosovo Chamber of Commerce visited today the Bonita Water Plant in Lipjan to see more closely and discuss the state of the water sector. After the visit, a press conference was held regarding the situation in the water sector as well as for clarification about the decision of the Government of the Republic of Kosovo (The decision 13/06) on debt rescission.
Kosovo Manufacturing Club and the Kosovo Chamber of Commerce through this visit took the opportunity to once again clarify the opinion of misinformation that over 57 million euro have been rescission for water packing companies. According to them, the amount in question was derived from an analysis which provided three different hypothetical amounts based on water packing with production capacity of 24 hours, 12 hours and 8 hours for 300 days. The amount mentioned is calculated from the hypothesis that packaging companies have been working uninterrupted throughout the year, seven days a week, 24 hours uninterrupted, with full capacity.
Astrit Panxha, the Executive Director of the Kosovo Manufacturing Club, made it clear that no local water packaging company has worked and does not work with full and uninterrupted capacity; on the contrary, most water packagers work with smaller and often halved capacity for certain periods of the year. Mr. Panxha, on behalf of the Kosovo Manufacturing Club, asked to change the approach about the manufacturing sector and appealed to all political parties and non-governmental organizations that, before coming up with allegations of such debt rescission in the sector of production, they should do a professional analysis and be based on data. He also called on all political parties not to use the manufacturing sector for political purposes. “Manufacturing should be seen as a sector that does not have any political coloration and which contributes to the well-being and development of our country,” said mr. Panxha.
In this statement to the media it was explained that the mentioned amount of debt rescission is also inaccurate for the fact that the water market in Kosovo is estimated at nearly 11 million Euros. Local vendors cover only 30% -40% of this market, or otherwise have annual turnover of 4 to 5 million Euros. With the alleged amount of debt forgiveness, water packagers should have an annual turnover of around 70-80 million euro a year.
It results that in the absence of accurate information, the unpaid amount of EUR 57 million and consequently its possible collection by the responsible institutions would be unlawful, since the same would be based on hypothetical parameters and not on the real state of water exploited. Secondly, potential collection would present bankruptcy to the entire sector, as the entire water production sector does not get the high value of the alleged debt.
It was also mentioned that the tariff of 0.009 Euros per liter of sold water of administrative instruction 06/2006 was one of the highest tariffs in the region. Water dispensers have reacted timely to the magnitude of this amount and the side effects that would have on them. Eventually this amount has been dropped to 0.001 Euros per liter of water, enabling the rescission of the previous debt.
While, Safet Gërxhaliu from Kosovo Chamber of Commerce expressed concerns that different perceptions are emerging in Kosovo regarding the protection of local products. He explained that this rescission of debt is not a debt that has to do with added value tax, but basically it refers to an unclear payment in the form of retroactive payments. “The future of Kosovo depends on a strong private sector and that with these kinds of accusations we are not honoring the manufacture sector at all”, emphasized Mr. Gërxhaliu.