Identifier
Created
Classification
Origin
06PRISTINA863
2006-10-13 17:14:00
UNCLASSIFIED
Embassy Pristina
Cable title:  

KOSOVO: KOSOVO PROPERTY AGENCY BOARD MEETING

Tags:  PGOV KJUS KCRM EAID KDEM UNMIK YI 
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VZCZCXRO0548
PP RUEHAST
DE RUEHPS #0863/01 2861714
ZNR UUUUU ZZH
P 131714Z OCT 06
FM USOFFICE PRISTINA
TO RUEHC/SECSTATE WASHDC PRIORITY 6597
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUCNDT/USMISSION USUN NEW YORK 0877
RHMFISS/CDR USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
RHFMIUU/AFSOUTH NAPLES IT
RHMFIUU/CDR TF FALCON
RHEFDIA/DIA WASHDC
RUEKJCS/SECDEF WASHINGTON DC
RUEPGEA/CDR650THMIGP SHAPE BE
RHEHNSC/NSC WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUFOANA/USNIC PRISTINA SR
UNCLAS PRISTINA 000863 

SIPDIS

SIPDIS

DEPT FOR DRL, INL, AND EUR/SCE, NSC FOR BRAUN, USUN FOR
DREW SCHUFLETOWSKI, USOSCE FOR STEVE STEGER

E.O. 12958: N/A
TAGS: PGOV KJUS KCRM EAID KDEM UNMIK YI
SUBJECT: KOSOVO: KOSOVO PROPERTY AGENCY BOARD MEETING
HIGHLIGHTS RENTAL SCHEME, NEW DRAFT LAW, FUNDING WOES


SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY.


UNCLAS PRISTINA 000863

SIPDIS

SIPDIS

DEPT FOR DRL, INL, AND EUR/SCE, NSC FOR BRAUN, USUN FOR
DREW SCHUFLETOWSKI, USOSCE FOR STEVE STEGER

E.O. 12958: N/A
TAGS: PGOV KJUS KCRM EAID KDEM UNMIK YI
SUBJECT: KOSOVO: KOSOVO PROPERTY AGENCY BOARD MEETING
HIGHLIGHTS RENTAL SCHEME, NEW DRAFT LAW, FUNDING WOES


SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY.



1. (SBU) SUMMARY: At an October 10 meeting of the
five-member supervisory board of the Kosovo Property Agency
(KPA),which includes USOP, KPA head Knut Rosandhaug
confirmed that the rental property scheme by which illegal
Albanian occupants pay rent to Serb owners had begun on
October 2. Rosandhaug also shared a draft law, soon to be
promulgated by UNMIK, that would provide for resolution of
claims by means of a property claims commission, rather than
through the Kosovo court system. PDSRSG Steve Schook, who
chaired the meeting, said that UNMIK would call a donors
conference to fund KPA operations, which Rosandhaug later
estimated at around 6 million euros over two years. The
launch of the rental scheme, even if not yet on a massive
scale, is good news and is an important step toward
fulfillment of one of the most important of the Contact
Group's 13 priority standards for Kosovo. END SUMMARY.

Background


2. (U) On October 10 the Supervisory Board of the KPA met
for the second time since the KPA's establishment in July

2006. The KPA took over responsibility from UNMIK's Housing
and Property Directorate and is mandated by UNMIK to resolve
claims relating to private immovable property, including
agricultural and commercial property, arising out of the 1999
conflict. The KPA currently has some 5,400 properties under
its administration and has worked toward institututing a
rental scheme to provide an income source to displaced
owners, mostly Kosovo Serbs who now reside in Serbia,
Montenegro or Serb-majority municipalities in Kosovo.
Implementation of the rental scheme is one of the Contact
Group's 13 priority standards for Kosovo. The Supervisory
Board consists of five members: PDSRSG Steve Schook (chair);
Ardian Gjini, Minister of Environment and Spatial Planning;
P/E Chief, as USOP representative; David Blunt, Head of the
UK Liaison Office; and Milorad Todorovic, former deputy CCK

leader, representing Kosovo Serb interests.

Rental Property Scheme Underway


3. (SBU) KPA head Knut Rosandhaug told the KPA's 5-member
supervisory board that the rental property scheme had begun
on October 2. Although the initial number of properties
involved thus far is small (in the tens),Rosandhaug said
this figure was growing by about 5-6 properties per day, and
predicted this would increase even more as the KPA mounts a
media campaign, including in Serbia and Montenegro, on how
owners can file claims. (Rosandhaug later told P/E Chief
that of the 5,400 properties under KPA administration, some
1,800 involved owners who could not be identified or who did
not want to participate in the rental scheme. He said he
favored collecting rents from these properties, but that the
PISG had not yet agreed to this.)

New Draft Law to Speed Up Adjudicating Claims


4. (SBU) Rosandhaug shared with the board a draft law, soon
to be promulgated by UNMIK, that would provide for resolving
claims by means of a property claims commission composed of
two international members and one Kosovar member. In this
way, he went on, claims could be processed faster and more
effectively than relying solely on domestic courts, as is the
case at present. Domestic courts could play an enforcement
role, he noted, if the two sides in a dispute came to
agreement on their own. Rosandhaug added that after six
months, the draft law provides for the replacement of one of
the international claims commission members by a Kosovar
member, if the SRSG deems it appropriate, and stressed that
the KPA is a "joint venture" between the PISG and UNMIK, with
strong buy-in from local institutions.

KPA's Funding Problems


5. (SBU) PDSRSG Steve Schook said he feared that KPA

operations would come to a halt if donor funding could not be
secured soon. He faulted the KPA's current legal framework
for remaining in force only until the end of February 2007,
saying this had caused donors to shy away from committing
themselves, and asked UNMIK legal adviser Borg-Olivier to
ensure the draft law was more open-ended. Everyone present
agreed with this reasoning, although Minister Gjini asked if
the timeframe could be given a specific limit (two years, for
example) so as to encourage greater involvement by local
institutions. Schook took this on board and said he would
soon make a presentation to key donors, including USAID, the
European Agency for Reconstruction, and the UK's DFID, on
KPA's activities and needs. After the meeting, Rosandhaug
told P/E Chief that KPA would need around six million euros
over two years for its operations.


6. (SBU) COMMENT: The KPA has a hard slog ahead of it, but
getting the rental scheme off the ground, even if not yet in
a massive way, is a start. It represents a serious attempt
to fulfill a priority standard set by the Contact Group. The
KPA will need to secure funding, including for a media
campaign, to get the word out on how to file claims and keep
the momentum going. END COMMENT.


7. (SBU) U.S. Office Pristina clears this cable in its
entirety for release to U.N. Special Envoy Martti Ahtisaari.
KAIDANOW