The European Times - Albania

ALBANIA

The European Times congratulates Albania on 100 years of Independence!

“During a century, we proved to the whole world that for Albanians, as a civilized nation, freedom has no price...”

Sali Berisha, Prime Minister

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Content

INTRODUCTION• Architect of Albania’s Economic Miracle 4• Foreign Minister Supporting Regional and Global Partnerships 7• New Mayor Making Tirana More Liveable and Business Friendly 8• European Integration Ministry Promoting Constructive Dialogue 10• Regional Cooperation Is Delivering Tangible Results Regional Cooperation Is Delivering Tangible Results and Accelerating Albania’s European Integration 11• Strategically Located Trade Hub Undergoing True Industrial Revolution 12

BUSINESS & INVESTMENT OPPORTUNITIES• Economy Minister Driving Forward Measures to Attract FDI 15• Transformed Economy with Strong Growth Potential 16• Fier 18

FINANCE• Minister Committed to Bringing Financial Sector up to EU Standards 20• Banking Association Helping to Upgrade Financial Sector Performance 21• Sigal Uniqa Group Austria 22• Ongoing Reforms Strengthening Financial Sector 22• ProCredit Bank 24• Emporiki Bank 24

ENERGY & MINING• Making the Most of Significant Energy and Mining Resources 26• Devoll Hydropower 27• Europetrol Durrës Albania 28• CEZ 29• Tirex Resources Ltd. 29

Albania

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Project Manager: Elliott Wood - Business Analyst: Michael Frisbie - Project Coordinator: Joe Cushing - Regional Director: Lieve Leysen - Editorial: Emily Emerson-Le Moing - Proofreading: Vicky Kox - Production Coordinator: Katrien Delamotte, Vicky Kox - Head of Production: Fatima Darghal Offi ce Manager: Samira Darghal - Photography: LSA Photo, Albanian Ministry of Foreign Affairs, Albanian National Agency on Tourism - Design: Martine Vandervoort, Carine Thaens, Johny Verstegen, Walter Vranken, Dirk Van Bun

Special thanks to Ralf Gjoni, Director General of Communications and Spokesperson of the Ministry of Foreign Affairs, for all the help in fi nalising this magazine.

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Every effort has been made to ensure information contained in this publica-tion is correct and up-to-date. The authors and publisher accept no respon-sibility for any errors it may contain, or for any loss, fi nancial or otherwise, sustained by any person using this publication.

IT & TELECOM• Minister for Innovation and ICT Promoting Competitive Telecom Sector 31• Building a Knowledge Based Economy 32• ALBtelecom & Eagle Mobile 34

INFRASTRUCTURE• Construction Sector Reviving 37• ALB-STAR 38ALB-STAR 38• Alb-Building 39• CO 1 RROKU CONSTRUCTION 40• Alumil Albania 40• UKT 41

AGRICULTURE• Ministry Ensuring International Competitiveness of Albanian Agriculture 43• Boosting Production of Agriculture and Food Products 44• Atlas Mills 46

TRANSPORT• Vast Infrastructure Projects with Investment Appeal 49• Major Transport Infrastructure Projects in the Works 50• Free Trade Hub of the Western Balkans 52• Port of Shengjin 52

HEALTH• Minister Overseeing Ambitious Healthcare Modernisation 54• Making Progress in Upgrading Healthcare System 55• Rejsi Farma 56

TOURISM• Everything It Takes to Become Top Tourism Destination 58• Albania Car Rentals 60• Hotel Arber 61• Treasure Trove of Tourism Attractions 62• Japan Servis 63

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Architect of Albania’s Economic MiracleAs Albania celebrates the 100th anniversary of its inde-pendence, Prime Minister Sali Berisha seems unstoppable in his reform drive. Sali Berisha is by far Albania’s most prominent and longest serving politician in the past 20 years. A former cardiologist, he was elected Chairman of the democratic party in 1991 and from 1992 to 1997 he served as President of Albania, the country’s fi rst non-communist head of state. He returned as Prime Minister in 2005, leading a coalition of fi ve centre right parties. Four years later, in 2009, he won a second mandate by forming a governing coalition with the Socialist Movement of Integration (LSI).

Now, halfway through Sali Berisha’s second mandate as Prime Minister, Albania continues to enjoy one of the most vibrant economies in Europe, with exports and FDI growing every year. Albania boasts a fl at tax of 10%, is a member of NATO, and aspires to become part of the EU. Despite the global economic crisis, Albania’s government has managed to maintain growth at around 4% and the defi cit at a steady 3.1% with a GDP per capita of US$3,500, a signifi cant increase over the country’s US$200 per capita GDP in 1992. Lonely Planet guidebooks dubbed Albania as the “number one hot country to visit in 2011” while Steve Forbes recently described Sali Berisha as “the architect of Albania’s economic miracle.”

From poverty to prosperity

Discussing Albania’s success story, Sali Berisha says that his country has changed drastically since it fi rst emerged from communism in 1991. Albania has developed from


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Introduction

poverty and misery to a middle and upper income country, from a totally isolated and centralised economy to a fully functional free market country, and from hyper collectivisation to a country with the smallest public sector in Europe, where 84% of the GDP comes from the private sector.

The Prime Minister is keen to emphasise that Albania is now a fully functioning democracy, respecting human rights, rule of law and free speech while minority rights and freedom of religion are guaranteed by the country’s constitution. He says, “I am proud to say that from being the most isolated country in the world, Albania today is a member of NATO and aims to become a member of the EU while continuing to serve as a driving force for stability and peace in the region and further, alongside our international partners. Since 2011, our citizens have been able to travel visa free across Europe and the annual number of tourists has grown from 300,000 in 2004 to 3.5 million in 2011, and it will grow again in 2012.”

Lean, effi cient public sector

Albania’s economic model has been praised throughout the business world for being entirely based upon the principles of economic freedom, small government, low taxation and respect for the freedoms of the individual. Sali Berisha’s gov-ernment has achieved a public sector and admin-istration that are 50% smaller than those of most other countries of Albania’s size in the region or elsewhere, and Albania is proud to be regarded as one of the 10 top governments which do not interfere in the economy.

Sali Berisha believes that bold economic and fiscal policies, operative budget cuts and a flat tax of 10% across the board have saved Albania from recession and the global economic crisis. Foreign direct invest-ment in Albania has grown by 316% since 2006 while Albania’s exports have risen by 300% and poverty has fallen by 30% over the same period.

Satellite image of the port of Shengjin

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Developing renewable energies

While introducing Albania’s liberal economic model and structural reforms during a recent visit to Paris, Sali Berisha said, “Power is found in freedom” and added that the purpose of his government is to make Albania a ‘green’ country by developing its huge hydropower pro-duction potential and agricultural assets. “My ambition is to see Albania as a mini superpower of renewable energy in the region,” the Prime Minister explained.

Regarding FDI, Sali Berisha’s strategy has been to turn Albania into an economic gateway to the region, building on the country’s low cost labour force and highly skilled workers. “Albania’s access to the sea, combined with huge infrastructural investments in recent years, are turning the country into a perfect des-tination for investors who wish to expand their activities in the Balkans,” he says. In fact, around 80% of Albania’s GDP has gone toward building more than 8,000 km of roads and highways. A brand new highway to Kosovo has now been fi nished, while the aim for the next two years is to cut travel time from Tirana to any corner of the country by 60% through infrastructure development.

Sali Berisha is proud that Albania offers the lowest fi scal burden in Europe, with a 10% fl at tax and extremely easy procedures for opening a new business. Albania has also drastically reduced bureaucratic procedures in order to create a business friendly climate. During all his public appearances, the Prime Minister highlights Albania’s “One-stop shop” and online business regis-tration services, which have helped Albania rank 27% higher than the OECD average in business initiation.

Fighting corruption, promoting transparency

Regarding the fi ght against corruption, the Prime Minister recently said, “Fighting corruption on a constant basis is the ‘sine qua non’ condition for the consolidation of human rights.” He believes that Albania’s business climate can be improved by increas-ing transparency across both public and private sectors. Albania’s government has lowered taxes, privatised almost all major state owned enterprises and ensured increased transparency by making Albania the fi rst country in the world to have 100% e-procurements. The result is that budgetary revenues have almost doubled in the past fi ve years.

Albania has one of the youngest populations in the world, with an average age of 29 years old. The country projects a vitality and positive energy that are second to none in Europe. In fact, the Prime Minister believes that Albania’s youthful human resources are among the country’s top attractions for investors and businesses. While offering a low cost labour force, Albania possesses a bright, multilingual, highly skilled, technologically savvy young generation.

Young, multilingual human resources

Sali Berisha is committed to creating new opportuni-ties for Albania’s younger generation. “It is our priority to make sure that after receiving a good standard of education, our youth have the best possible opportuni-ties of employment,” said the Prime Minister during a recent meeting with young people in Tirana. In fact, some years ago, most Albanian young people wanted to leave their country in search of better opportunities abroad, but now Albania is witnessing a positive trend of brain gain. Many Albanian students educated in some of the best universities in the West have chosen to return to Albania to contribute to their country’s development.

Albania today is a solid factor of stability and peace in the Balkans and enjoys a great working partnership with the EU, which the government will continue to work hard to join. Prime Minister Sali Berisha wants to see Albania become a truly developed country, achieving the highest possible standards for its citizens while increasing its renewable energy capacities. His governing coalition aims to turn Albania into a shining example of sustain-able development, respecting the environment but at the same time keeping its competitive edge in regional and global markets.

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Foreign Minister Supporting Regional and Global PartnershipsAlbania’s foreign policy aims at opening Albania to the world by opening Albania to the world by promoting regional and interna-tional partnerships. At a meeting of foreign ministers of Adriatic Charter countries, held in New York City, in September 2011, Albania’s Deputy Prime Minister and Minister of Foreign Affairs Edmond Haxhinasto commented, “The Adriatic Charter is an important element in helping countries to prepare for NATO membership and we would like to see more countries of the region joining the group. It is very important that an open door policy be maintained for all the countries in the region.” Albania is serving as the president of the Adriatic Charter in 2011.

Adriatic Charter countries develop joint activities and cooperate closely for a range of local and regional issues, including projects related to security. Edmond Haxhinasto says, “The dif-ferences that may exist between the countries in the region should be viewed from the perspective that we all share a common future – a future which we should work together for to make sure that it will be the one involving more stability, cooperation, development and progress.”

Preparing for EU membership

Albania’s Ministry of Foreign Affairs is also stepping up its cooperation with European groups as part of the process of preparing Albania for EU membership. Edmond Haxhinasto recently met with a delegation of representatives from the Council of Europe and members of the Advisory Committee of the Framework Con-vention for the Protection of Minori-ties; at this meeting the Deputy Prime Minister stressed that Albania is an

Edmond Haxhinasto, Deputy Prime Minister and Minister of Foreign Affairs

excellent example of a country which shows respect to diverse minorities, religions and ethnic groups in the region and beyond. “Respect for minorities is a fundamental precept of Albania’s domestic and foreign policies,” he added.

Albania is involved in a number of partnerships and joint projects with its neighbours in the Balkans region and beyond. Edmond Haxhinasto, who has recently met with his coun-terpart from China as well as with US Secretary of State Hilary Clinton, says that Albania aims to participate in more regional and international projects in the future. He explains, “The spirit that should guide us should be all inclusive, a matter of peoples and societies, and not an issue of national boundaries. Regional and international initiatives are designed to bring people closer – politicians, societies, cultures. Respecting this fun-damental principle is the basic reason for such initiatives. It is also essential in establishing a united Europe.”

Introduction

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New Mayor Making Tirana More Liveable and Business FriendlyLulzim Basha, Tirana’s new mayor, unveils his plans Lulzim Basha, Tirana’s new mayor, unveils his plans for truly sustainable development for the capital city.

European Times: Please provide an introduction to the city of Tirana, its economic growth and your plans for the capital.

Mayor Basha: Tirana was established in 1614 and became the capital of Albania for the fi rst time in 1920. Since then the city has undergone immense transfor-mations. Its population increased from 25,000 in 1938 to 250,000 in 1990, but the biggest physical and demo-graphic transformation has occurred in the past 20 years. The population of the capital is now estimated at around 800,000 and is rapidly growing, due to internal demographic movements in Albania. The city has also known a huge geographic expansion through the establishment of new neighbourhoods. Almost a third of Albania’s population now lives in Tirana, which is the political, administrative and economic heart of all activity in the country.

I grew up in Tirana, and I had my own dreams of what the city could be. The present state of the city is not satisfactory to me, and it is clear that it was not acceptable to its citizens, who voted for change during the last local elections. We are now faced with major challenges in turning Tirana into a fully functional, modern metropolis, a business friendly space closer to European urban standards, and a pleasant place to live for its residents.

European Times: What specifi c plans do you have for the capital city?

Mayor Basha: Since I was elected mayor in June 2011, my team has worked hard to start delivering on our electoral promises. It is imperative that we turn Tirana into a citizen friendly space and business friendly metropolis. This begins with rethinking the city’s neighbourhoods. We should move away from the cosmetic fi xes the city has undergone during the past few years and deliver real alternatives for our citizens. This also involves respect for private property. This

is why we have begun to work on delivering property titles for thousands of residents who were unclear about their ownership. Now we plan to regulate the city’s chaotic traffi c and infrastructure, improve public transport and create more green spaces and play-ground areas for our children. Cleaning up the city is a key priority in our immediate plans, and our children deserve better standards of schools.

To make Tirana business friendly, we are steadily reducing bureaucracy and the costs of registering a new business. Tirana will have a One Stop Shop Centre offering services and advice for its business clients. We expect investment to increase dramatically in the next few years thanks to these innovations.

Improving the business climate is crucial for my two key pri-orities for Tirana: ensuring the capital’s economic growth and creating employment opportunities for our citizens. We have already delivered on one of our main promises by reducing taxes and removing about 60 tariffs for busi-nesses. Within the next few months, we aim to simplify administrative procedures and offer online services to help ensure that investment grows rapidly in the capital.

Lulzim Basha, Mayor of Tirana

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Introduction

European Times: How will your leadership and direction of the city differ from the previous mayor’s administration?

Mayor Basha: Despite the problems Tirana faces today, the previous mayor made a positive contribution in his early days in offi ce. But I believe that Tirana has entered a new era thanks to Albania’s demographic changes and the urban challenges of the 21st century. When the former mayor became the leader of the opposition Socialist party, Tirana was left in the shade, and was taken hostage by personal political interests. Tirana needs a dedicated mayor, free of political agendas and totally focused on improving the lives of its citizens. I believe that this is the key difference between the current new style of management of the city and the old leadership, which actually suffocated the city’s development.

To be more concrete, in our fi rst 100 days in offi ce, we have already delivered on some key promises we made to our citizens. We have reduced taxes and business tariffs, and we are working very hard to produce a proper urban development plan for Tirana, something the city has never had before. Citizens will have the property titles they have been lacking for years. Meanwhile, future building permission will be granted through transpar-ent and faster procedures by making use of our new one stop shop service.

I am pleased to announce that Scanderbeg Square has just been opened to traffi c, ending a long period of nightmare traffi c chaos in the centre of the city. Now we plan to extend Tirana Boulevard and equip it with

modern public transport services, including a new tramway service. Meanwhile, construction of a ring road around the city has begun, and this will greatly relieve traffi c congestion.

In addition, the town hall is now much more open and accessible, and we are decentralising our decision making concerning mini-municipalities, in order to ensure more effective service for our citizens. Regarding our youth, we have already signed an agreement with our main universities to begin offering the Mayoral Student Card, which will offer numerous free services to our students for the fi rst time in our city’s history. We have also established the Consumer Protection Agency, which will be an effi cient instrument in protecting our citizens against price speculation and abuses concern-ing the products we consume, including food products, thus ensuring food safety.

We are determined to deliver on our common project for the rehabilitation of the capital city by attracting investment, creating thousands of new employment opportunities and improving the physical and cultural life of our citizens.

European Times: What is your personal message to our readers and to Albania’s partners the EBRD, the World Bank, the EIB and the European Parliament?

Mayor Basha: Come and enjoy the culture and business opportunities Tirana has to offer. In my team you will fi nd a trusted partner for your future projects, and in the city you will fi nd ample evidence of Albania’s charm and cultural heritage.

Tirana

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European Integration Ministry Promoting Constructive DialogueOn her recent visit to the Centre of European Perspective, Majlinda Bregu, Albania’s Minister of European Integration, commented, “Albania has a strong European perspective and clearly sees its future as a member of the EU.”

One priority for the Minister of European Integration is to promote regional partnerships. In September 2011, she signed a cross border agreement between Albania and Kosovo as part of the European Commission’s Pre-Accession Instrument (IPA) dealing with cross border cooperation. The IPA’s cross border policy is to promote cooperation between the people and institu-tions of neighbouring countries with the aim of sup-porting economic development, social cohesion and environmental awareness in a sustainable manner.

Under the terms of the agreement between Kosovo and Albania, projects and municipalities in both countries will receive support from a €1.2 million IPA grant through the end of 2012. After signing the agreement, Majlinda Bregu commented, “Albania has demonstrated that it is a nation with a western culture, open to dialogue, and with respect for other cultures in the region. Cross border cooperation and cross border projects will help strengthen this dialogue.”

Promoting greater cooperation between political groups

In addition to productive dialogue between countries, Minister Bregu is promoting more produc-tive relationships between opposing political factions in Albania. In a recent speech to the Committee of European Integration, Majlinda Bregu said, “Political dialogue remains a priority in accelerating Albania’s EU integration process. The opposition’s boycott of Albania’s parliament puts Albania’s EU integration at risk. We should guarantee that Albania’s parlia-ment can continue to function through promoting a constant dialogue between majority and opposition parties so that we can work together to accelerate the integration process.”

Majlinda Bregu, Minister of European Integration

This opinion is shared by European observers. At a recent meeting of the EU Stabilisation and Associa-tion Council focusing on Albania’s efforts to achieve EU candidate status, Catherine Ashton, High Repre-sentative of the EU, and Štefan Füle, Commissioner for Enlargement, urged the restoration of political dialogue in Albania and the return of the opposition to Albania’s parliament so that it can participate in Albania’s reform agenda.

After the meeting, Majlinda Bregu explained, “The EU welcomed the smooth implementation of the Stabilisa-tion and Association Agreement by Albania, including the recommended election reforms which we are currently establishing. The SAA meeting focused on how Albania should look forward, and looking forward surely does not mean blocking integration reforms. We would appreciate the opposition’s constructive contri-bution to the European agenda.”

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natural beauties, history and culture, and Albanians hospitality are attract-ing tourists from all around the world. Thanks to major recent public invest-ment in improving Albania’s part of regional and pan European corridors, such as Corridor VIII, a new motorway from the port of Durres to Morine across the Kosovo border will provide rapid links to Prishtina, Belgrade and Budapest. “The involvement of all Western Balkans countries in transport initiatives will enable us to build and integrate our transport network with the EU one in a consistent way,” Mimoza Halimi points out.

The Ambassador notes that Albania and other countries in the region continue to face a number of chal-lenges, including the effects of the global crisis, fi scal consolidation, the need to further improve the business climate and the need to accelerate structural reforms in such areas as education, healthcare, the labour market, property rights and pension schemes. She concludes, “There is room for better fi scal policy coordina-tion (rather than competition) among western Balkans countries, which will pay off in preserving our economies from the effects of the economic crisis, attracting more FDI and upgrading the competitiveness of our economies.”

Regional Cooperation Is Delivering Tangible Results and Accelerating Albania’s European IntegrationMimoza Halimi, Albania’s Ambassador to the EU, emphasizes the constructive and active role Albania is playing in enhancing the Balkans region’s cooperation.

She says, “Albania has a tradition of peaceful cooperation, as is widely recognised throughout Europe. Dialogue, transparency and interac-tion in regional partnerships consti-tute some of the guiding principles of Albania’s foreign policy. Moreover, regional cooperation is delivering tangible results and accelerating the European integration process of Albania and other countries in the western Balkans.”

A commitment to constructive regional cooperation is one of the EU’s criteria for EU membership. The EU wishes countries in the Balkans to demonstrate a willing-ness to cooperate with each other no matter how painful memories from the recent past might be. Mimoza Halimi notes that throughout the Balkans region, countries are making progress in addressing regional political, economic and security issues in a cooperative way. “The active participation of all countries in the region, including Kosovo, will further enhance the progress made so far and ensure that it is sustainable. The Regional Cooperation Council is playing a catalysing role in this respect and can do more not only to ensure regional cooperation, but also to promote the region in the EU.”

Through working together and with EU support, Albania and other western Balkan countries have been able to strengthen their border man-agement and fi ght against organised

Mimoza Halimi, Ambassador to the EU

Introduction

crime, illegal migration and corrup-tion. “In return, Albanian visas have been liberalised, which is leading to more people to people contacts, enhancing business opportunities and giving the possibility to our citizens to get to know the EU better,” the Ambas-sador points out.

Mimoza Halimi highlights the crucial role the Central European Free Trade Agreement (CEFTA) continues to play in stimulating the regional market and integrating it with the EU market through Stabilisation and Association Agreements (SAA) as well as with the global market through the participa-tion of CEFTA countries in the World Trade Organisation.

Thanks to new trade regulations and other investor friendly legislation, Albania is experiencing a signifi cant increase in exports, foreign direct investment in green-fi eld and steady economic growth. “This is enabling our economy to produce more tradable goods, become more competitive and better meet the economic criteria of European integration,” Mimoza Halimi says.

The Ambassador cites the energy sector as one of Albania’s high potential indus-tries. She says, “Having a comparative advantage of being rich in hydropower and other renewable energy resources, Albania is increasing its green energy generation capacities, upgrading inner power distribution grid and inter-connection lines, which all ensure a reliable power supply to our economy. Albania’s energy sector remains very attractive for investors.”

Tourism and transport are other emerging growth sectors in Albania. Being a Mediterranean country, its

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Strategically Located Trade Hub Undergoing True Industrial RevolutionAlbania, once known for its closed borders, is becoming a productive member of the global economic community. Strategically located on the Balkan Peninsula with coastlines on both the Adriatic and the Ionian seas, set between Greece to the south and Montenegro and Kosovo to the north, Albania was a thriving trade hub for centuries until its economic development stalled during the almost 50 years it spent under Communist rule. In the early 1990s, however, Albania held its fi rst multiparty elections, established a parliamentary democracy, and began the process of developing a free market economy.

Billions in FDI from 2006 to 2010

Over the past decade, Albania has been one of Europe’s success stories. As Albania’s Prime Minister, Sali Berisha, points out, “Albania attracted €2.7 billion in foreign direct investment between 2006 and 2010 while our exports tripled over the same period. These investments were mainly in our country’s industrialisation; Albania is experiencing a true industrial revolution as advanced technologies are being imple-mented in every sphere. For example, thanks to investments in telecommunications technologies, Albania’s Internet penetration has been boosted tenfold. These investments have also resulted in the creation of thousands of jobs, and Albania is in fact experiencing a decline in unemployment.”

Albania continues to face a number of stumbling blocks to sustained economic growth, including cor-ruption, outdated infrastructure,

organised crime networks and political upheavals. It remains one of the poorest countries in Europe, hampered by a large “grey” economy and inadequate energy and trans-portation systems. In spite of the challenges, Albania continues to move forward. It joined NATO in April 2009 and is now a candidate for EU accession.

Achieving EU membership a key goal

The EU is Albania’s top trading partner by far, and achieving EU membership is one of the country’s top goals. Albania signed a Stabili-sation and Association Agreement with the EU which came into force in April 2009, the same month that Albania submitted its formal appli-cation for EU integration. As part of the EU pre accession process, Albania has received fi nancial aid to improve its public institu-tions and to enhance cross border cooperation under the EU Instru-ment for Pre-Accession Assistance funding mechanism.

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to Austria, Italy, Kosovo, Macedonia, Spain and other countries have increased in 2011, while imports from Greece, Italy, Kosovo, Macedonia, the US and other markets have risen as well. Albania’s exports of minerals, fuels and electricity rose by 30.3% from January to July 2011, while exports of textiles and footwear rose by 13.3% and exports of wood and paper by 6.7%.

Attracting foreign investors to key sectors

Albania’s current government is focusing on maintaining the fl ow of foreign direct investments into Albania. A number of sectors offer interesting prospects, particularly agriculture, energy, mining and tourism. Albania’s natural resources include petroleum, natural gas, coal, bauxite, chromite, copper, iron ore, nickel, salt, timber, arable land and hydropower.

In addition, Albania’s tourism attractions are considerable: with unspoiled beaches along two coast-lines, a Mediterranean climate, rugged mountains, an easy to reach location in south-eastern Europe, low costs, a welcoming population and many historic monuments, Albania is poised to become a thriving European tourism destination with some help from foreign investors.

Just one example of Albania’s tourism potential is Butrint, one of the world’s archaeological wonders and a UNESCO World Heritage site. Butrint offers a glimpse of Mediter-ranean culture from the Bronze Age through the Greek, Roman, Byzantine, Venetian and Ottoman periods, all atop a cliff in southern Albania with a stunning view of Corfu. Visiting Butrint is a not to be missed experience and just one example of Albania’s unique appeal.

Albania received around €81.2 million in EU funding in 2009 and an additional €93.2 million in 2010. In 2011, Albania is expected to receive around €95 million with a further €96.9 million in EU fi nancial assistance scheduled for 2012. This funding (along with foreign invest-ment and remittances from Albanians living abroad) is supporting Albania’s economy as the country continues to develop its various sectors.

Both exports and imports up in 2011

In July 2011, Albania posted an encouraging drop in its trade defi cit and a rise in both imports and exports, according to the country’s Institute of Statistics. Albania’s exports rose to around €127.4 million in July, an increase of 7.75% compared to June and a signifi cant 32.4% rise compared to July 2010, while imports increased by 2.4% compared to June and 7.4% compared to July 2010. Overall, Albania’s trade defi cit was 3.5% lower in July 2011 than a year ago.

Albania’s trade with the EU accounted for 69.1% of the country’s total as of July 2011, with Italy and Greece still the country’s two biggest trade partners. The Institute of Sta-tistics reports that Albania’s exports


Business & Investment Opportunities

• Economy Minister Driving Forward Measures to Attract FDI

• Transformed Economy with Strong Growth Potential

“Albania, although a small country, has played a big role in the region to create a vision for a

more prosperous Balkans.”Nasip Naço, Minister of Economy, Trade and Energy

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Economy Minister Driving Forward Measures to Attract FDIForeign direct investment in Albania surpassed the US$1 Foreign direct investment in Albania surpassed the US$1 billion mark (€billion mark (€billion mark ( 738.3 billion) in 2010, making Albania the second largest investment recipient in Southeast Europe after Serbia, and the only country in the region in which investment has increased despite the global economic downturn. This international confi dence in Albania’s long term potential will help the country reach its goal of joining the EU and becoming a more important player in the European and global economy.

Nasip Naço, Albania’s Minister of Economy, Trade and Energy, explains, “Over the last two decades, Albania has gone through a tremendous political, institutional, and socio economic transformation. The Euro Atlantic integration process has been the driving force behind several institutional and struc-tural reforms that have contributed to the ongoing democratisation of Albania, and naturally EU mem-bership remains our priority.”

Minister Naço added that Albania is committed to sup-porting the growth of the Balkans region. He noted, “Albania, although a small country, has played a big role in the region to create a vision for a more prosper-ous Balkans, where peace and stability have replaced ethnic confl icts, where economic growth has prevailed over stagnation, and where Europeanization has triumphed over nationalism.”

Europe’s lowest corporate taxes

As Nasip Naço pointed out, Albania’s economic growth rate has been one of the highest in South Eastern Europe since 2000, reaching an average of 6% per year with a peak of 8% in 2008. Albania has also maintained macroeconomic stability, cut taxes on small businesses in half and reduced corporate and personal income taxes from 25% to 10%. As the Minister points out, “Albania is among the countries with the lowest fi scal burden in Europe, applying a fl at tax regime of 10% for individuals and businesses.”

Nasip Naço, Minister of Economy, Trade and Energy

Nasip Naço notes that Albania has successfully pursued an ambitious privatisation programme and the gov-ernment is actively supporting public private partner-ships. He says, “The private sector of Albania’s economy has been the main driver towards economic growth with a contribution of about 85% of GDP, and most importantly providing about 80% of employment. The Albanian government has undertaken a comprehen-sive regulatory reform in order to establish a business friendly climate. Due to these reforms Albania was ranked the second among top ten reforming countries in the World Bank Doing Business Report concerning protecting investors’ interests.”

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Transformed Economy with Strong Growth PotentialAlbania has transformed itself. Once one of the world’s most closed economies, Albania has been successfully making the diffi cult transition from a centrally controlled system to a modern, market oriented one. This transition has involved a number of challenges, and the economy is still being driven mainly by foreign investment, support from international funding organisations, public sector debt and remittances from abroad.

Nevertheless, Albania managed impressive average growth of 6% between 2004 and 2008 and was one of the few countries in Europe with a positive economic growth rate in 2009. Now Albania is working hard to join the EU, enhancing its invest-ment appeal in the process.

Albania has already earned a stellar track record in attracting foreign investors. Prime Minister Sali Berisha commented recently, “We promised to transform Albania into the most attractive country

for foreign investments in the region and beyond. This dream has now become a reality. Albania was the only country in the region to record an increase in foreign investments in 2010. Our government has clearly met one of its major objectives: to create in Albania a friendly environment for investment and business. Naturally, Albania has great needs because the country started almost from scratch in the 1990s, and foreign investments were formerly banned by the Albanian Constitution. Hence, this is an historic achievement.”

World Bank takes positive view

The global economic crisis has taken its toll on Albania, but much progress continues to be made. GDP growth dropped to around 3% in 2009 and 2010, but the Albanian government has demonstrated a commitment to ensuring strong macroeconomic fundamentals and to providing the right conditions for foreign investment. Kseniya Lvovsky, World Bank Country Manager for Albania, comments, “Albania’s ability to sail through the diffi cult post crisis years better than most other European countries, admirably

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THE EUROPEAN TIMES


maintaining positive growth rates, was partly thanks to a fi scal cushion created before the crisis. With the debt level stubbornly near 60%, this cushion is no longer there. Yet, the risks of another economic shock are not negligible. In this situation, foreign investors have become more risk averse and more valuing economic stability when assessing alternative investment destinations in the region. There are ample reasons for a set of measures that would strengthen Albania’s budget planning process, increase predict-ability and enhance debt reduction. The authorities have recently indicated their readiness to work towards these improvements. The World Bank stands ready to support the needed actions with expertise and technical assistance.”

Fighting corruption, promoting transparency

Albania’s government has already adopted strong policies against organised crime, the “grey” economy and corruption. During a recent meeting of Albania’s Council of Ministers, Prime Minister Sali Berisha noted, “The fi ght against corruption remains our govern-ment’s top priority, and my cabinet is committed to further increasing transparency.”

To keep foreign investment on track, the government has created new investor friendly legislation and is promoting key sectors which are seen as having particularly attrac-tive growth prospects, including agriculture, mining and energy, all of which need foreign investment in order to fl ourish. The agriculture sector, for example, which accounts for over half of the employment in Albania but only about one fi fth of the country’s GDP, needs modern equipment and expertise to realise its potential.

In the energy sector, Albania has sig-nifi cant hydropower resources but energy shortages remain common because of outdated infrastructure. A new thermal power plant near Vlore has helped Albania diversify its energy supplies, and planned links between Albania’s electricity trans-mission lines and those of Montene-gro and Kosovo would help relieve energy shortages and create more attractive conditions for foreign and local investors. Albania’s gov-ernment aims to use EU funding support to upgrade the country’s infrastructure, including the road

and rail network, in an effort to provide the right conditions for long term economic expansion.

According to the World Bank’s recent report on Albania, “The New Growth Agenda”, the country’s two most pressing concerns are to upgrade its human capital by training Albanians in marketable skills, and to modernise and expand

the country’s energy, telecommu-nications and transport infrastruc-ture. The report adds that further improvements in public adminis-tration, property rights legislation and regulations concerning the business sector are also crucial for Albania. Kseniya Lvovsky explains, “For a middle income country like Albania, it will be diffi cult to be com-petitive, and to return to and sustain strong growth, if these factors are not dealt with. The global crisis has signifi cantly reduced the appetite of foreign investors to take risks, and capital is likely to be scarce in the

next few years. Accelerating the pace of reforms in these critical areas will increase Albania’s competitiveness as the destination of new capital infl ows.”

Given the great progress it has made so far and its outstanding investment potential, Albania is clearly on the right track to achieving long term economic success.

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Fier

Ancient Trade Centre Now Modern Economic and Cultural HubFier has been a trade and cultural hub since the 6th century BC when it was founded as Apollonia, named for the Greek god, Apollo. Located on the Via Egnatia, the ancient route linking Rome and Constantinople, Fier attracted traders, artisans and travelers from all over the world. Today, the city is still known for its thriving economy (which is the third biggest in Albania) and for its cultural attractions.

and forage as well as poultry and livestock. Fier enjoys a sunny, mild Mediterranean climate and has ample water resources from the three rivers that pass through the city. Baftjar Zeqaj says, “A rich and long tradition paired with modern values and technology have combined to make Fier the largest producer of natural and organic agricultural products in Albania.”

The city’s tourism industry is also growing thanks to Fier’s strategic location, natural beauty, wealth of archi-tectural treasures and lively cultural scene. Fier is also only 18 km from some of Albania’s most beautiful beaches along the Adriatic. Baftjar Zeqaj points out, “Fier is the home of many artists, painters, writers, musicians, sculptors, singers, actors, and performers. The city is looking to capitalise on its long history and strategic location by organising cultural, historical and artistic events year round. Our aim is for Fier to be identifi ed as a centre of culture and art within Albania and the region, and we welcome international partners who can help us achieve our goals. Fier currently has 23 cultural projects in need of funding, one of which is the reconstruction of the city theatre.”

Fier will play an important role in helping Albania prepare for EU membership. As Baftjar Zeqaj explains, “The plans and the goals are there, and now we need capital to make these dreams a reality.”

ALBANIAALBANIATHE EUROPEAN TIMES

Mayor Baftjar Zeqaj explains, “Fier has developed a diverse economy based on oil extraction and refi ning, construc-tion, food processing, international trade, retail sales, and textiles and apparel manufacturing. The city has attracted foreign as well as local investment.” Fier has large deposits of petroleum and natural gas and produces some 2,800 barrels of oil per day along with around fi ve million cubic metres of natural gas per year. Other exploitable natural resources include bituminous sand and clay.

Albania’s biggest producer of agricultural products

Fier also supports a thriving agricultural sector. Local farmers produce signifi cant amounts of wheat, corn, olives, tomatoes, potatoes, grapes, apples, watermelon

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Apollonia

Finance

• Minister Committed to Bringing Financial Sector up to EU Standards

• Banking Association Helping to Upgrade Financial Sector Performance

• Ongoing Reforms Strengthening Financial Sector

“We will carry out the World Bank’s reforms successfully,

because the Albanian government is very committed to timely

implementation.”Ridvan Bode, Minister of Finance

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Minister Committed to Bringing Financial Sector up to EU StandardsAt the annual Bank of Albania conference held in September 2011, Ridvan Bode, Albania’s Minister of September 2011, Ridvan Bode, Albania’s Minister of Finance, urged the country’s banks to increase transpar-ency, one example of the minister’s drive to implement EU standards throughout Albania’s fi nancial sector. Ridvan Bode is currently working with the World Bank and the Swiss State Secretariat for Economic Affairs to create a transparent policy environment and effective institutional framework for corporate fi nancial reporting in Albania in line with good international practices and the EU acquis communautaire.

In April 2011, the Ministry of Finance launched the Corporate Financial Reporting Enhancement Project (CFREP), which is part of the “Road to Europe: Program of Accounting Reform and Institutional Strengthening” (REPARIS) regional initiative in which Albania plays an important role. In June, the Minister of Finance signed an agreement with the World Bank through which the World Bank will provide Albania with a €18.4 million (US$25 million) Social Sector Reform Development Policy Loan that will be used to enhance the effi ciency and equity of health fi nancing in Albania. This key measure is designed to help to bring Albania’s health-care sector up to international standards.

World Bank providing strong support for policy reforms

Albania became a member of the World Bank in 1991, and since then 69 projects with a total value of over €1 billion (US$1.4 billion) have been completed in Albania with the support of the World Bank’s Inter-national Development Association and the Interna-tional Bank for Reconstruction and Development. In addition, 10 projects totalling €136.5 million (US$185 million) have been completed in Albania with the help of the International Finance Corporation within the World Bank.

The World Bank currently has 15 active projects in Albania involving social initiatives, health, education,

Ridvan Bode, Minister of Finance

natural resources, water and energy, municipal infra-structure, and public sector management. All are helping Albania to achieve sustainable economic and social development and are paving the way for Albania’s European integration. At the June ceremony to announce the Social Sector Reform Development Policy Loan, Ridvan Bode commented, “I would like to thank the World Bank for its commitment to Albania and its support of the government’s reforms in the social sector, areas in which the expertise of this Bank is signifi cant. In addition, I would like to assure the World Bank that we will carry out these reforms successfully, because the Albanian government is very committed to timely implementation.”

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THE EUROPEAN TIMES

Banking Association Helping to Upgrade Financial Sector PerformanceAlbania’s economy is underpinned by a sound and stable fi nancial system dominated by an expanding banking sector. According to the Bank of Albania, the country’s central bank, as of the end of 2010 the Albanian banking sector’s profi t indicators had improved and both capi-talisation and liquidity were good. The Bank of Albania noted, “Stress test exercise results show banks’ resilience to assumed adverse economic and fi nancial shocks.”

The Albanian Association of Banks, the banking sector’s professional organisation, is a non profi t entity that seeks to promote world class standards, stability and effi ciency in the Albanian banking system. The Association is playing a major role in harmonising Albania’s fi nancial sector regulatory environment with that of the EU. It regularly collaborates with govern-ment leaders, the Bank of Albania, fi nancial services authorities, and European and other international institutions in its efforts to continue to upgrade Albania’s banking sector.

Reliable source of information

The Albanian Association of Banks also serves as a reliable source of information about banking activi-ties in Albania. For example, the association recently

reported the results of a study it had undertaken on fees and commissions charged for 20 typical retail banking products by banks in Albania, Bulgaria, Croatia, Cyprus, Greece, Kosovo, Macedonia, Serbia and Turkey. The Association comments, “The study showed that Albania is either on par or cheaper than other countries in the region concerning 17 products, while slightly more expensive in three products, but even for these three products, there are banks in Albania that charge lower than the regional average or nothing at all.”

The Albanian Association of Banks also reports that the Albanian banking sector achieved impressive results in 2010. According to the Association the assets of the Albanian banking system increased at a higher pace in 2010 both in nominal terms and in their contribution to the GDP. During 2010, the total assets of Albanian banks increased by about 12% compared to 2009, account-ing for 81% of the GDP. At the end of 2010, deposits had an even higher weight on the total fi nancing of the banking system, accounting for almost 82% of total assets, compared to 78% in December 2009. Overall, deposits had reached their pre-crisis levels by June 2010 and rose by almost 18% during the year.

The Albanian Association of Banks is making sure that Albania’s strong banking system remains a key attrac-tion for foreign investors.

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Bank of Albania

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ALBANIA

Ongoing Reforms Strengthening Financial SectorAlbania was one of the few countries in Europe which managed to weather the global fi nancial crisis without the need for a bailout, winning praise from interna-tional observers. Moody’s comments, “The Albanian economy recorded growth of over 6% from 2001 to 2010, one of the strongest performances in Europe, and grew by 3.5% to 4% [during the fi nancial crisis] in 2009 and 2010.”

The World Bank points out in a recent report that the Albanian fi nancial sector’s success during the global recession was mainly due to the Albanian govern-ment’s ongoing reform programmes. The World Bank notes, “Since 1997, the Albanian government has liqui-dated the state owned Rural Commercial Bank, priva-tised the National Commercial Bank, and furthermore has included the advisory efforts of the World Bank Group, the IFC, and the EBRD in the process.”

Signifi cant presence of foreign banks

The World Bank adds that Albania’s fi nancial sector is dominated by banking and that the strong banking sector includes a high percentage of foreign owned banks. “Most of these institutions belong to larger corporate groups that provide stability and security to both domestic and foreign investors in Albania,” the World Bank explains. In fact, Albania’s strong and stable fi nancial sector has proved to be one of the country’s key attractions for international investors.

The Albanian fi nancial sector is overseen by the Central Bank, the Ministry of Finance and the Albanian Financial Supervisory Authority. A top priority of Albania’s fi nancial sector leaders is to implement EU standards throughout the fi nancial sector.

The Central Bank of Albania has initiated a rela-tively conservative monetary policy which has helped the country protect itself against external fi nancial shocks. Early in 2011, the Central Bank reported,

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“As of the end of 2010, Albania’s fi nancial system and banking sector are assessed as being stable. The banking sector’s activity has expanded further and its share to the Albanian economy has increased. Profi t indica-tors have improved relative to the previous period. Capitalisation and the operating liquidity position are good. The need to improve loan quality remains the main challenge facing the banking sector.” The Central Bank also pointed out that stress tests undertaken to judge Albanian banks’ resilience to potential external fi nancial shocks have shown that the banks are in a healthy position.

Banking sector instrumental in underpinning economy

Albania’s banking sector has proved instrumental in underpinning the country’s economic development. Banks in Albania are involved in a wide range of sectors and have provided fi nancial support for both major enterprises and small and medium sized companies (SMEs). The banking sector’s support of SMEs has been particularly crucial for the Albanian economy, which is currently dominated by small and micro enter-prises, many of them receiving assistance through the Southeast Europe Enterprise Development (SEED) ini-tiative and other international programmes.

Tax amnesty designed to combat “grey” economy

Another goal for Albania’s fi nancial sector leaders is to improve the taxation process, currently plagued by tax evasion. In April 2011 Albania’s Minister of Finance, Ridvan Bode, announced a new tax amnesty designed to encourage Albanian citizens and businesses to

Finance

come forward to declare unpaid taxes and undeclared capital and register both for a small fee. Minister Bode’s announcement came just after the Albanian parliament passed Albania’s fi rst major fi scal amnesty since the end of the communist regime.

Insurance sector gets a boost

Albania is also building up other fi nancial services. Ridvan Bode has announced a new draft law on mandatory insurance for the transport sector that is designed to help stimulate Albania’s insurance market. Speaking to representatives from insurance companies, the Albanian Insurance Bureau and the Albanian Financial Supervisory Authority, Ridvan Bode said, “The new law for mandatory insurance for the transport sector has been drafted in the framework of reforms that the Albanian government has undertaken to speed up the process of harmonising our legislation with that of EU. In this context, the draft law constitutes an effort to provide better legal regulations concerning protecting consumers’ interests, supervising the insurance market and building the conditions for meeting the require-ments and standards set out by the new law, which follows on from the existing insurance law of 1992.”

In 1992 when its fi rst mandatory insurance law was passed, Albania had only one insurance company and it was owned by the state. Today, there are several insurance companies operating in Albania and only one, INSIG, is state owned; it will be privatised. Foreign investors in Albania’s insurance sector include Uniqa Group Austria, Vienna Insurance and Aspis Group. As Ridvan Bode points out, “Their presence has encour-aged other foreign investors in Albania’s high potential insurance sector.”

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Emporiki Bank

Building on International Ties to Grow LocallyLeading Greek Emporiki Bank Group, a member of Crédit Agricole, the largest banking Group in France, has been operating in Albania since 1999 and is known for its reliable, customer friendly banking services. CEO Luc Beiso explains, “Emporiki Bank Albania is a universal bank that focuses on maintaining excellent client relationships.”

Emporiki Bank Albania has a strong track record in corporate banking and is steadily expanding its retail services. The bank now has 24 branches throughout Albania to serve around 80% of the population. “We have rapidly added to our branch network to be closer to our customers. We aim to be a leading fi nancial institution here in Albania,” Luc Beiso says. He notes, “Emporiki Bank has a balanced, prudent commercial strategy and is here in Albania for the long term. We are building on our in depth know-how developed by Emporiki Bank in Greece as well as the strength, stability and international expertise of Crédit Agricole.”Emporiki Bank is playing a key role in bringing EU standards to the Albanian fi nancial sector. Mr. Beiso concludes, “We aim to provide possibilities for international investors and to develop new relationships with foreign partners.”

“Kavaja” str., Tirana Tower, Nr. 59Tel. +355 4 225 8755

email: headoffi [email protected]

ProCredit Bank

Top Bank for SMEs in Emerging Markets“ProCredit Bank, headquartered in Germany, is considered to be the bank for small and medium sized enterprises in all the emerging markets in which it has a presence, and ProCredit Bank Albania is no exception,” says Flutura Veipi, spokesperson of the Management Board. Back in 1995 ProCredit Bank Albania was the country’s fi rst microfi nance institution which provided Albanians with access to lending, today it is the only bank operated by a 100% Albanian team.

ProCredit Bank also dis-tinguishes itself from its competitors through its emphasis on staff training. “We really focus heavily on our staff and personnel, and as a result we are able to enjoy a relatively decen-tralised management structure where branch managers are given a large degree of autonomy,” says Flutura Veipi.

Stimulating Albania’s economic development is ProCredit Bank Albania’s top priority. The young executive says, “ProCredit Bank Albania focuses on impacting the domestic market. We are not as concerned about making high profi t as facilitating economic growth. We want to provide local companies and entre-preneurs with the fi nancial support and advice they need in order to make their businesses a success.” ProCredit Bank Albania demonstrates Albania’s potential as a target for international investors and is competent to serve new investors entering the local market.

ProCredit Bank sh.a.Dritan Hoxha Street, Tirana

P.O Box 2395Tel: + 355 42 389 300

[email protected]

Energy & Mining

• Making the Most of Signifi cant Energy and Mining Resources

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Making the Most of Signifi cant Energy and Mining ResourcesAlbania’s energy and mining industries will serve as key drivers for the country’s economic development in the future. In the energy sector, Albania’s government has implemented legislation designed to draw investment to a full range of energy initiatives, from Albania’s traditional hydropower to wind and biomass, while the mining sector, a mainstay of the Albanian economy for decades, has been growing rapidly since it was opened to private investment in 1994.

Potential to become regional energy hub

Albania has the potential to develop reliable energy supplies for domestic use as well as to export energy to its neighbours, and the government is determined to position Albania as a regional energy hub. Only around 33% of Albania’s estimated hydropower potential is currently being utilised, but Albania has over 150 rivers, including eight major rivers with an average fl ow of around 1,245 cubic metres per second.

Albania’s main hydropower plants are on the Drin river; the three plants there have a total installed capacity of 1350 MW and supply 92% of the country’s power gen-eration. Two hydropower plants are operating on the Mat river with a total installed capacity of 49 MW, while a plant on the Bistrica river has a capacity of 27.5 MW.

Small hydropower plants are also making a contribution to Albania’s energy security and present an investment opportunity.

Hydropower projects currently underway include one on the Drin river being developed as a conces-sion by Austrian enterprise Österreichische Elek-trizitätswirtschafts-Aktiengesellschaft. Another Austrian fi rm, EVN AG, has signed a concession contract to build three hydropower plants on the Devolli river.

The challenge of fl uctuating water levels

In spite of these hydropower facilities, Albania still fi nds it diffi cult to meet energy demand and maintain energy supply due to fl uctuations in rainfall and other precipi-tation on which hydropower depends, as well as a history of ineffi cient management of water resources. Albania’s hydropower production can be cut in half in very dry years, and in 2007, a drought in the Drin’s watershed led to severe electricity shortages and blackouts.

According to a recent World Bank report, Albania is making progress in addressing these challenges. In 2008, for the fi rst time, no electricity load shedding was programmed, and losses from Albania’s electricity distribution system are being reduced. Albania is also improving its water use effi ciency. In 2007 and 2008, infl ows to the Fierze Reservoir were similar, but power generation in 2008 was 29.4% higher than in 2007 thanks to better management.

Tyrex Resources: Drilling rig north of Munella

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THE EUROPEAN TIMES

Energy & Mining

Overall, Albania’s energy security is steadily being strengthened. The World Bank reports, “Through a new Energy Community of South East Europe – Albania Dam Safety Project that aims to safeguard Albania’s major hydroelectric dams, the government will also support improvements in the operational effi ciency of dams and enhance the stability of power supply for the regional electricity market. Overall, this will assist Albania to maximise its benefi ts from existing hydro-power and regional interconnections, thus increasing energy security.”

Other renewable energies also have development potential in Albania. Several wind farms are currently under construction, and biomass has strong prospects thanks to Albania’s signifi cant supplies of wood – around 125 million cubic metres of forest reserves – and by products produced by the agriculture sector.

Rich supply of proven minerals resources

Along with its renewable energy potential, Albania has a rich supply of proven minerals resources. The mining industry has long been a key sector of the Albanian economy, and minerals exploited in the past continue to be mined today, including chromite, copper, iron-nickel and coal. Albanian chromite is recognised as being among the fi nest in the world due to its high chrome to iron ratio; in fact, Albania is ranked along with Kazakhstan and Turkey as the world’s top sources of high quality ore used in the production of stainless steel.

Albania was the fi rst country in the Balkans to complete a full geological map of its minerals resources (in 1922), and in 1929 Albania enacted its fi rst mining law. Between 1944 and 1994, Albania’s mining industry was controlled by the state, but as Albania began to open its economy, the mining industry was one of the fi rst to attract strong interest from the private sector and from international investors.

The Albanian government instituted a new, modern mining law in 1994 with the help of the World Bank, and between 1994 and 2008, Albania issued 738 mining permits. Around 590 of these were exploita-tion permits, mainly for the mining of chromite and limestone.

Albania also offers potential for investors in oil and gas. In 2008, Switzerland-based Manas Petroleum announced that it had found an estimated 3 billion barrels of oil and 3 trillion cubic feet of natural gas in Albania waiting to be exploited, one more indication that Albania’s natural resources are certain to draw signifi cant FDI in the future.

Devoll HydropowerDevoll Hydropower Project to Serve as a Driver for Albanian EconomyAlbania accounts for large unexploited Hydropower water resources in the Balkan Peninsula. Albania produces 95% of its energy through hydropower, with only 35% of the river potentials exploited so far.

On April 1, 2009 the Albanian company Devoll Hydro-power Sh.A., a joint-venture between the Austrian EVN AG and Norwegian Statkraft AS, was awarded a BOOT Concession to plan, build and operate three hydropower plants on the Devoll River, in the South-eastern part of Albania. The Concession, implemented as an Albanian Law strengthens Devoll Hydropower’s mission to harness the hydropower potential of the Devoll Valley, while respecting social and environmental aspects.

Helwig Überacker, CEO of Devoll Hydropower Sh.A., explains, “EVN has been a valuable partner with its key knowledge and experience in the Balkan region, whereas Statkraft brings a history of expertise in hydropower plant construction and operation. Both of our mother companies have found in Albania a good infrastruc-ture for doing business, surrounded by a friendly and welcoming business atmosphere.”

The hydropower plants will have a combined installed capacity of approx. 280 MW. The project will have a large economic impact for the region and for Albania, and it will be marked as a signifi cant source of green energy. To see Albania well into the future, Devoll Hydropower Project will provide reliable, clean and renewable energy based on European Standards.

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Europetrol Durrës Albania

Local Petroleum Enterprise Growing ExponentiallyEuropetrol Durrës Albania (ELDA), a 100% Albanian private company, focuses on importing and trading petroleum products. The company has been growing steadily since it was founded in 2001. It boosted its trade volume from 75 million litres in 2007 to 85 million litres in 2009 while increasing its turnover from US$104 million (€US$104 million (€US$104 million ( 73.2 million) in 2008 to US$110 million (€million (€million ( 77.4 million) in 2009. ELDA’s management continues to set ambitious new goals for the company.

Expanding network of petrol stations

ELDA has become a familiar name among drivers in Albania thanks to its network of modern, international standard petrol stations. Frident Kuqi, President, says, “We started from scratch with one station. Today, ELDA has around a 26% share of the Albanian market, where we operate more than 50 petrol stations, almost half of which we own; we opened 10 new stations in Albania last year. We are continuing to expand our network and last year we began trading in Kosovo, where we now have around 12 petrol stations.” Now that the company has developed a strong retail network throughout Albania, it is working on building up its network in Kosovo.

ELDA has invested signifi cantly in its transport fl eet and storage facilities. The company now has a storage capacity of around 35,000 million tonnes at Albania’s Porto Romano in Durres and it aims to boost its storage capacity at the port to 70,000 million tonnes. ELDA has also installed new tanks for gasoline, diesel, fuel and bitumen at the port.

Innovative new projects in the works

Always ready to innovate, ELDA is currently involved in preparing a case study for a biodiesel project in part-nership with a German enterprise. “This effort demon-strates that ELDA is a dynamic company which is always ready to identify and invest in new growth opportuni-ties,” Frident Kuqi says.

Albania’s economic development is creating out-standing investment potential and ELDA welcomes the chance to form more international partner-ships. Frident Kuqi explains, “As we invest in ELDA’s future, we are very open to new partnerships and joint ventures with investors who share our goals and who want to work along with us. ELDA is a reliable, trust-worthy partner to do business with. Investors can be confi dent that ELDA is an Albanian company which always plays by the rules.”

Zhan D’Ark Boulevard, 5/1Tirana

Tel: +355 4 2347 [email protected]

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THE EUROPEAN TIMES

CEZCzech Energy Leader Upgrading Electricity Sector

CEZ, the Czech energy enterprise, entered the Albanian market with its purchase of a 76% share of Albania’s electricity generation and transmission services and is the biggest foreign investor in Albania to date. Martin Roman, CEZ’s CEO and Chairman of the Board, explains, “For CEZ, Albania – where electricity consumption is growing by 5% per year – is another step in the consolidation of our position in South-Eastern Europe.”

Working in close cooperation with the Albanian govern-ment, CEZ has invested over €100 million in expanding Albania’s low voltage grid and an additional €40 million in reducing losses, in line with its ambitious goal of reducing losses by 15% within fi ve years. This target is impressive since Albania’s electricity transmission grid is in poor condition and consumers commonly use elec-tricity without paying for it.

Josef Hejsek, CEO of CEZ Albania, says, “We need around €1 billion to achieve our goals, which we expect to do within the next three years.” CEZ aims to upgrade transmission lines, improve metre reading and customer service, and educate the Albanian people about the need to pay for electricity.

Long term commitment to Albania

CEZ has made a long term commitment to Albania. Josef Hejsek says, “There is a great potential for foreign invest-ment in hydropower production here, and this is an avenue our company would be open to pursuing after we have stabilised the transmission and distribution sectors.”

CEZ offers the advantage of its in depth local experience and close ties to the Albanian government. Josef Hejsek explains, “There are some reforms in legislation that we would like to see, but we have a very productive relation-ship with Prime Minister Berisha and other leaders. We invite more foreign capital into Albania, and are open to potential partnership opportunities in due course.”

CEZ AlbaniaEGT Tower, 2nd fl oor

“Abdyl Frashëri” street, TiranaTel: +355 4 242 1480 - www.cez.cz

Tirex Resources Ltd.Developing Albania’s Rich Mining ResourcesTirex Resources Ltd. is spearheading the growth of Albania’s high potential mining sector. The company has invested around €16 million in mining exploration in Albania since 2006 and has acquired a 553 sq km area in the Mirdita district.

Perparim Alikaj, Tirex Country Manager, explains, “We are focusing our efforts on developing the potential of the Mirdita project into a major volcanogenic massive sulfi de (VMS) district with multiple large deposits of copper, zinc, gold and silver. Leading the way into Albania and employing modern exploration techniques in an area with a rich mining history, Tirex is in the right country at the right time.”

Tirex, the fi rst mining exploration project to receive EBRD funding, offers signifi cant investment potential. Tirex has several projects in the works, has obtained equity fi nancing without attaching warrants to common shares during the equity issuances, and plans to fast track into production without any share dilution.

Tirex has located signifi cant copper, zinc, gold and silver mineralisation in six separate zones within the Mirdita district and has recently announced produc-tion plans in partnership with a leading Turkish metals trading and mining company. Prof. Perparim Alikaj, concludes, “The opportunity that Tirex has at Mirdita is unique because of the company’s fi rst mover status in this geologically rich country.”

The Albanian Subdivision of Tirex Resources Ltd.Rr. Deshmoret e Shkurtit, P.30, Sh.B, Apt.4

Tirana - [email protected] - www.tirexresources.com

Perparim Alikaj, Country Manager

Energy & Mining

IT & Telecom

• Minister for Innovation and ICT Promoting Competitive Telecom Sector

• Building a Knowledge Based Economy

Without ICT and telecom growth and development, how

can we expect to reach a level of innovation that is truly respectable in the international community?”

Genc Pollo, Minister for Innovation and ICT

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Minister for Innovation and ICT Promoting Competitive Telecom Sector

Genc Pollo, Albania’s Minister for Innovation and ICT, is very confi dent that Albania will attract continued foreign investment in its ICT sector as it works to develop advanced telecom and ICT services. He says, “The Ministry of Innovation and ICT is working hard with key private sector partners to ensure that Albania’s ICT sector continues to become more competitive in the future.” As part of this effort, in autumn of 2011 the Albanian government will award a concession for installing, developing and managing Albania’s National Broadband Network (REKAB).

Genc Pollo, Minister for Innovation and ICT

The ministry has also liberalised telecom regulations to promote competition. Genc Pollo explains, “We have made efforts to reduce the level of regulation imposed on this very dynamic industry. In effect, expanded the obligations for operators with signifi-cant market power with regard to tariffs and access to their networks. Vodafone and Albanian Mobile Com-munication received a license to be 3G operator for the country, as further licensing will follow ”

Ambitious e-government programme

Other efforts by the ministry to modernise Albania’s ICT services include an ambitious e-government programme, Gov.Net, which is designed to connect all public institutions throughout the country; it will be completed by the end of 2011. Minister Pollo says, “All documentation, legislative initiatives, and other key information will be stored in a digital format open to public access. The processing of applica-tions within the bureaucracy will be followed on line increasing good governace and transparency ”

In its drive to develop a knowledge based society, the Government has completed a programme to equip all Albania’s schools with computer labs equipped with Internet connections. In addition, the ministry’s PAP project has brought widely used public Internet access to 550 post offices all over the country.

Strengthening links with the EU through ICT

Although Albania’s infrastructure and energy projects have attracted most of the FDI in the country in recent years, the ICT sector deserves an equal amount of investor attention, Minister Pollo believes. He says, “Why is it so important for Albania’s ICT industry to develop? The answer lies in our country’s need to leapfrog and to become more closely aligned with the EU. Without ICT and telecom growth and development, how can we expect to reach a level of innovation that is truly respectable in the international community?”

IT & Telecom

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Building a Knowledge Based EconomyThe second annual “Albania on the Road to Broadband” forum organised by Intracom Telecom in Tirana in December 2010 highlighted the impressive progress Albania has made in modernising its ICT networks and telecom services. At the forum, Albania’s Minister for Innovation and ICT, Genc Pollo, noted that Albania has liberalised its ICT sector and is rapidly bringing it up to EU standards. He added that Albania aims to step up ICT training and continue to expand and upgrade its telecom infrastructure in order to foster a true knowledge based economy.

Among key accomplishments in recent years, Albania has established the Ministry of Innovation and ICT and a National Agency for Information Society; implemented processes to achieve the transition from analogue to digital; launched an e-government drive (Gov.Net); and devised a system for allocating digital dividends and adopting spectrum policies in accordance with EU criteria for the development of broadband services. Albania has also privatised former monopoly player ALBTelecom, which remains the market leader with an 80% share of Albania’s fi xed line market and a 75% share of the Internet market; ALBTelecom also fully owns successful mobile services provider Eagle Mobile.

Ambitious “Digital Albania” programme underway

At the recent forum, Genc Pollo added that the govern-ment has adopted a “Digital Albania” programme in line with the EU Digital Agenda target, which is to provide Internet access to 100% of the population by 2013. Minister Pollo said, “Albania today has a penetration

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THE EUROPEAN TIMES

IT & Telecom

rate for mobile telephony of near 140%, a fi gure above the EU average. Internet use has increased signifi cantly to reach around 45% of the population. Broadband use in Albania will continue to increase as a 3G mobile network is rolled out, while the entry of a fourth mobile telephony operator will increase competition that will lead to falling prices for the benefi t of the consumers.” This progress is particularly impressive since Albania’s telephone density was the lowest in Europe in the early 1990s and the country’s telecom equipment and infra-structure were completely outdated; users had to go through an operator to make long distance calls within Albania.

International investors entering market

Today, that picture has changed completely, and inter-national investors, including Vodafone, have taken note of the ongoing growth potential of Albania’s liberalised telecom sector. Albania’s Internet market offers particu-larly strong prospects thanks to the government’s push to boost Internet access. Dial-up, leased line, microwave radio, ADSL, Wi-Fi and fi bre Internet access is currently available in Albania; public Internet access is also provided through Internet cafes.

After broadband tariffs were reduced in late 2008 and 2009, broadband services have been growing particularly rapidly in Albania. ADSL is overwhelmingly the most popular broadband access platform. In a country where fi xed line and Internet penetration is low, broadband

presents an opportunity to entice fi rst time fi xed line subscribers, and providers are capitalising on this.

Digital TV is available via cable, satellite and DTTV, and cable operators in Albania offer triple play services, bundling VoIP telephony, broadband Internet access and cable TV services. A satellite based digital pay TV platform began broadcasting in MPEG-2 format via the Eutelsat W2 satellite in October 2008.

Concerning mobile telecom, the majority of mobile users in Albania opt for prepaid services. With the mobile voice market maturing, adding new subscrib-ers has become more of a challenge, so mobile network operators are turning their attention to increasing average revenue per user levels. Initiatives include encouraging prepaid users to take up post-paid offers and promoting mobile data services. GPRS and EDGE based mobile data services are already available.

UN providing key support

Albania will continue to modernise and upgrade its telecom and ICT services. In May 2011, Genc Pollo and United Nations Resident Coordinator Zineb Touimi-Benjelloun signed an agreement through which the UN will support the Digital Albania initiative. Genc Pollo commented, “The Albanian government has made ICT development one of its top priorities and intro-duced the Digital Albania programme which calls for an acceleration of ICT penetration and use in govern-ance processes in Albania. Achieving the objectives of Digital Albania will require infrastructure investment, institutional reforms, legislative improvements, capacity building and effective implementation of these policies. The agreement signed today with the UN will support our efforts to improve the legal and technical founda-tions for Albania’s ICT infrastructure.”

By the terms of the agreement, the UN will also help the ministry manage its national informa-tion society agenda more effectively. The UN will provide technical assistance to the government as it continues to develop a world class legal framework for the ICT sector, strengthen public and private ICT partnerships, and implement EU standards. Zineb Touimi-Benjelloun points out, “This new project is designed to help Albanians become active players in a knowledge based society and to help Albania develop a knowledge based economy.”

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ALBtelecom & Eagle Mobile

New Era of Telecommunications in Albania In a world where the pace of life is becoming ever faster, we need something to give us back our time. something to give us back our time. We are asking for better education, improved incomes, modern healthcare, and other benefi ts of modern life. More and better information and communi-cation technology can give us all this. Information and communication technology furthers the development of a society, and ALBtelecom takes very seriously its role in improving quality of life for its customers.

Albania, and ALBtelecom has posi-tioned Eagle Mobile as a true leader in providing world class mobile services. Growing rapidly since its launch in 2008, Eagle Mobile has proven to be Albania’s most innova-tive and preferred mobile operator, known for implementing technology and services that had never been seen before in the local market.

Stellar accomplishments

The CEO of ALBtelecom and Eagle Mobile, Dr. Orhan Coskun, comments on what the companies have accom-plished so far. He says, “After privati-sation, from day one, we set ambitious targets: to be the fi rst choice in every house, every offi ce, and every pocket in Albania. We began with under-standing our customers, their needs and demands. The customer has always been at the centre of both ALBtelecom and Eagle Mobile. In order to respond to our customers’ needs and demands, we have invested heavily in infrastructure.”

Dr. Orhan Coskun explains that ALBtelecom has increased the length of its fi bre backbone from 500 km to 1,500 km and used ring topology to ensure a protected network. In addition, ALBtelecom has established fi bre optic connections with all neigh-bouring countries and boosted the IP capacity of the Bari-Durres undersea fi bre optic cable. He says, “The IP capacity of ALBtelecom before priva-tisation was only 300 Mbps, but now it has reached 30 Gbps.”

Reducing the digital divide

ALBtelecom has also improved its access network and added 200,000 new lines to reach a total 500,000

The market environment in which ALBtelecom is active is very demanding but at the same time full of opportunities. ALBtelecom has set out a growth strategy that will ensure the realisation of these opportunities. ALBtelecom has achieved remark-able results since its privatisation and has received a number of awards for its performance, including being named Albania’s best Internet services provider in 2011 by Intracom Albania. ALBtelecom has become a top choice among individual and corporate customers thanks to its high quality services, attractive prices and world class customer support.

Calik Holding, one of the largest business groups in Turkey, owns majority shares in ALBtelecom. As a result of this strong backing, ALBtelecom and its fully owned GSM operator, Eagle Mobile, have been able to invest around €150 million over the past four years in upgrading their infrastructure, tech-nologies, services, and brand recog-nition. Eagle Mobile is now ranked the third biggest GSM operator in

lines. It has also increased its xDSL capacity to 150,000 from 1,500 in 2007. Dr. Orhan Coskun points out, “We have tremendously boosted Internet connection speeds so that we can offer up to 100Mbps with VDSL, and by the end of 2012, we plan to deploy 150,000 additional xDSL ports. We have established fi xed broadband coverage in rural areas; 80% of rural Albanian house-holds now have access to broadband connections via Albtelecom’s fi xed wireless broadband network. This will help to decrease the digital divide in Albania and will have a very important positive impact on the development of the country’s rural areas.”

ALBtelecom will become one of Europe’s fi rst fi xed line operators to transform its network into an all IP one when its IP/MPLS network is completed by the end of 2012. ALBtelecom has also deployed several VAS platforms, including the Unifi ed Messaging System, Online Collaboration, Convergent Virtual PBX and others, which will result in greater effi ciency and lower costs for ALBtelecom’s business customers.

Eagle Mobile serving more than one million customers

Eagle Mobile is another success for ALBtelecom. Eagle Mobile offered 97% network coverage in Albania only six months after its launch and now has 3G ready mobile technol-ogy throughout the country, serving even the most remote areas. Eagle Mobile also offers innovative lifestyle services such as mobile TV, vehicle tracking, e-mail, a Mobile Apps portal and diverse “infotainment” services, all available for the fi rst time in the Albanian market. Eagle’s Super

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www.albtelecom.alwww.eaglemobile.al

Riniring has a loyal youth following for prepaid services, and Eagle is also a top choice among business and gov-ernment entities for its post-paid plans.

Eagle Mobile now serves over one million customers in Albania. “Since we started Eagle Mobile, we have dem-onstrated economical, ecological and social responsibil-ity,’’ Dr Orhan Coskun emphasises. He adds, “As we have established a very powerful brand, when our customers choose our products, they are also identifying themselves with the values we stand for. Eagle Mobile takes its name from the symbol of Albania. The eagle is strong, wise, sees far away and always one step ahead, has the ability to feel and above all is free. For this reason we say ‘fl y like an eagle’, which means ‘fl y free as an eagle’. Thanks to our investments and advanced technologies, we can offer freedom to our customers so that they can access any content, be it voice, video or data, anytime, anywhere.”

Living up to motto, “The client is king”

For its corporate customers, which include the public sector and large, small and medium sized private enter-prises, ALBtelecom offers a range of targeted services, such as fi xed line telephony, ADSL Internet connec-tions, Dedicated Internet Access, Intranet, ISDN, Optical Fibre leasing, LAN connections and more. Such clients as the Bank of Albania, Ministry of Finance, Albanian Postal Service, ANTA, National Commer-cial Bank (BKT), Raiffeisen Bank and Sigal know that ALBtelecom lives up to its motto, “The client is king”.

ALBtelecom is playing a key role in Albania’s develop-ment. “We work to give back our care, funds and energy to the Albanian people through our corporate social respon-sibility projects and sponsorships,” Dr. Orhan Coskun says.

He adds that ALBtelecom and Eagle have provided 20 orphaned young people with full scholarships covering their entire education in the best high schools and univer-sities in Albania. ALBtelecom and Eagle have also supplied more than 5,000 books, 500 computers, Internet labora-tories, modern classrooms and more to Albania’s schools. The Domenick Scaglione Albanian Children’s Foundation recently gave its “Excellence Award” to Albtelecom and Eagle for their support for children in need, particularly their support for a centre for autistic children. “We will continue to contribute, and the year 2012 will be the year of technology in our priorities concerning social responsi-bility,” Dr. Orhan Coskun promises.

ALBtelecom is playing a crucial role in enhancing Albania’s attractions for foreign investors. As Western and Central European nations continue to look for out-sourcing and call centre services in the Balkan region, ALBtelecom instils confi dence in Albania’s present and faith in the country’s future. Dr. Orhan Coskun explains, “We at ALBtelecom and Eagle Mobile are here to stay. Economic gains are one thing, but we would not be here if it were not for our strong commitment to Albania’s future and to the Albanian government’s efforts to support Albania’s growth.” With the fi rm backing of majority shareholder Calik Holding, dynamic ALBtele-com is only at the beginning of its long term success story.

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IT & Telecom

Dr. Orhan Coskun, CEO

Infrastructure

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Construction Sector RevivingAlbania’s construction sector contributed from 10% to 20% of the country’s GDP on average between 2000 and 2009, and its continued growth is critical for the Albanian economy. Hard hit by the global economic crisis and its effects on international investment, crisis and its effects on international investment, Albania’s construction sector slowed signifi cantly in 2009 and 2010, particularly building construction. To reverse this trend, the government has been rolling out new policies designed to stimulate the construction sector’s recovery. These efforts seem to be bearing fruit.

Albania’s Ministry of Public Works and Transport and the German Development Bank, was launched in May 2011.

Local leader Alb Building has positioned itself as an ideal local partner for investors looking to get involved in construction projects in Albania. Alb Building is well known for its high quality, on time completion of major construction projects ranging

Katër GrykëtConstruction Firm Looking Forward to Stability

Katër Grykët, with over 20 years of experience in the construction sector, has completed projects throughout Albania and in Kosovo. The company has several major projects underway, including the construction of large apartment buildings. It is currently focusing on the Kosovo market.

Sulejman Lala, Director, explains that he is very hopeful about the future of his company and of Albania. He says, “Political instability has been a challenge over the years, as has the diffi culty of accessing construction permits, but with the current government in Albania, we are looking forward to stability in both the private sector and in Albania’s public sector.”

Rr. Don Bosko prane shkolles Qazim Turdiu, TiranaTel: +355 682041225

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Infrastructure

The Albanian Institute of Statistics reported that Albania’s construction confi dence index, which by the fourth quarter of 2009 had dropped to its lowest level since 2002, had risen by 7.3 percentage points by the fourth quarter of 2010. This improvement is linked to a new balance of demand, production and employment; recognition of the government’s efforts to combat the “grey” economy in the construction sector; and improved processes for obtaining building permits. In fact, according to the statistics institute, the number of construction permits issued in Albania in 2010 rose by 51% over 2009 and totalled almost 3,400. Most of these permits were for projects outside Tirana; now the government is working to stimulate continued building construction in and around the capital as well.

Infrastructure projects driving construction sectorAnother positive sign is that the American Chamber of Commerce in Albania announced in January 2011 that it expected an upward trend in infrastructure construc-tion in Albania to continue and to compensate for the decline in the construction of private buildings resulting from saturation in Albania’s real estate market.

Idajet Ismailaj, CEO of ALB-STAR:“We have a large portfolio of major projects, and our partners trust us and continue to

collaborate with us.”

A number of massive public works projects are currently underway throughout the country, including a €30 million initiative to upgrade water and sewerage systems in several municipalities. This project, a joint venture between

38


from roads and water systems to hydropower plants and residential developments. The ISO 9001:2000 certified company has made significant invest-ments in upgrading its technologies and equipment and operates one of Albania’s few asphalt plants. Alb Building is committed to playing a key role in building green energy solutions for Albania and aims to be involved in several hydropower projects currently being planned.

One growth segment in Albania’s construction sector is the production of construction materials. Between January and April 2011, Albania’s exports of con-struction materials rose to 22% of the country’s total exports compared to 18% the previous year due to increased exports of cement. In August, the Kosovo Business Alliance reported that Albania had moved up from seventh to third place as Kosovo’s top trade partner, and that most of this growth was the result of Kosovo’s increasing imports of construction materials from Albania. Overall, Albania’s construction sector seems set for steady growth over the long term.

ALB-STARConstruction Leader Expanding RegionallyALB-STAR, launched in 1995, has completed a wide range of construction projects, including water supply and sewerage systems, roads, buildings, waste water and industrial waste treatment facilities, and diverse projects for the oil sector. It also manufactures world class products for the oil industry.

Idajet Ismailaj, CEO, explains, “ALB-STAR is currently building a long bridge in Fier among others and has fi ve projects underway in Kosovo, and we are looking into hydropower projects.” ALB-STAR has established partner-ships with global players, and companies in different fi elds of activity. Ismailaj says, “ALB-STAR is growing every year in turnover and staff. We are open to forming partnerships with big international companies for big projects.”

ALB-STAR Ltd.Zona Industriale Patos

Fier, Albania - tel: +355 385 400 61email: [email protected] - www.albstar.al

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THE EUROPEAN TIMES

Infrastructure

Alb-Building

Construction Sector Leader Playing Major Role in National DevelopmentAlb-Building, a privately held limited Albanian company, was founded in 1994 to provide world class construction services in the Albanian market. Ever since it began, this dynamic enterprise has been playing a key role in upgrading Albania’s existing infrastructure, building new infrastructure, and providing modern housing facilities for a population which had been denied adequate housing options for nearly 50 years.

Alb-Building grew by over 1,050% between 2001 and 2010 alone and has proven its expertise through suc-cessfully completing a diverse range of major projects. The award winning company’s recent initiatives range from infrastructure projects to sanitation systems, water supply systems and residential construction in Tirana and Durres.

Investing in new equipment and technologies

Alb-Building always takes a proactive approach. CEO Odhise Bresha explains, “Alb-Building has reinvested its earnings every year in expanding both its plant and equipment to meet the needs of its projects and its clients. The company owns three asphalt plants and maintains an extensive equipment storage and maintenance facility.” He adds that Alb-Building has also made major investments in new technologies, including a recent investment of some €10 million in state of the art technologies and machinery imported from top German suppliers.

Alb-Building has been certifi ed ISO 9001:2000, dem-onstrating its commitment to meeting the highest international standards. Alb-Building is regularly sought out by international construction fi rms and contractors seeking a reliable local partner for projects in Albania.

Alb-Building also works closely with all the ministries in the Albanian government which are involved in Albania’s infrastructure and housing development.

Pellumb Beta, General Director and Odhise Bresha, CEO

In addition, Alb-Building enjoys the strong support of local banks and insurance companies as well as foreign lending institutions.

Open to new joint venture partnerships

Alb-Building continues to grow and is looking to get involved in some major power projects in Albania. Odhise Bresha explains, “We are currently vying for at least fi ve hydroelec-tric power plant (HPP) projects. Alb-Building aims to play an integral role in the construction of ‘green’ solutions for producing energy here in Albania. Alb-Building is open to joint venture opportunities with international partners, par-ticularly those based in Europe.” Alb-Building will continue to serve as one of Albania’s most reliable, responsible and progressive construction enterprises.

Rr. “Reshit Petrela”, Pallati Pranë Arkivit të Shtetit, Seksioni 2, Kati 2,TiranaTel/Fax +355 4 2420 748

E-mail: [email protected]

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Alumil AlbaniaLeading Producer of Aluminium Profi les Ready to Enter New MarketsAlumil Albania, part of the European Alumil Group, is Albania’s biggest manufacturer of aluminium profi les and is ranked among the country’s top enterprises. Alumil Albania has participated in several major projects in Albania, including Tirana International Airport and the Port of Durres.

Alumil Albania also exports to Kosovo and Montenegro and recently participated in a €2 million construction project in Kosovo. Sotirios Boulios, General Adminis-trator, explains, “We have a large production capacity and are ready to enter new markets, for example Italy.”The company continued to perform well even during the global fi nancial crisis, achieving more than €11 million in annual turnover. Alumil Albania has made signifi cant investments to bring its entire production process up to EU standards and its aluminium profi les are certifi ed by a German organisation. Alumil has warehouses in six cities in Albania and has established a strong reputation for reliability and quality. Sotirios Boulios is very positive about the future of Alumil and of Albania. He explains, “Albania offers great invest-ment potential, particularly in construction, infrastructure and green energies. We are open to forming joint ventures with companies which share our vision. They will fi nd that Alumil Albania is a very good partner to do business with.”

Alumil Albania Sh.P.K.Highway Tirana-Durres, km 7

Tel :+355 48 300 230/231 , +355 47 800 230/231Fax: +355 48 300 234/238

E-mail: [email protected], www.alumil.com

Sotirios Boulios, General Administrator

CO1 RROKU CONSTRUCTION

Local Firm Working to Upgrade Construction Sector

CO 1 RROKU CONSTRUKSION has 15 years of experi-ence in completing major construction projects for the public and private sectors in Albania. CO 1 RROKU CON-STRUKSION contributed to Albania’s reconstruction of public buildings between 1995 and 2000, and since then it has been focusing on building residential property. CO 1 RROKU CONSTRUKSION’s projects include 120,000 sq m of apartment buildings, and the company will soon begin three more apartment projects totaling 50,000 sq m. “We have fi nanced all our projects with our own capital and have not needed the assistance of local banks,” says Viktor Caushi, President.

Viktor Caushi urges his country’s political leaders to work together to develop a world-class business environment for all sectors in Albania. As for the construction sector, he says, “Construction permits should be given more frequently to legitimate companies in order to make the sector’s growth more effective.”

Once construction restrictions are lifted, CO 1 RROKU CONSTRUKSION welcomes the chance to form partner-ships with foreign companies and investors concerning construction projects in Albania. Viktor Caushi concludes, “Our partners can be sure that CO 1 RROKU is well qualifi ed and has the experience to meet high standards, and Albania has the potential to become the most competi-tive market in the region.”

Daniel Matlia Nr. 777Shkodër

tel: +355 22 242 016email: [email protected]

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THE EUROPEAN TIMES

UKT

Water Company Investing in Signifi cant UpgradesUKT, Tirana’s water company, is playing a key role in preparing the country for EU membership. Under new management for the past 18 months, UKT has been making signifi cant progress. It has rebuilt its water transmission system, increased the capacity of its water reservoirs by 8,500 cubic metres and installed new water pressure metres, and it is in the process of installing 30,000 water metres to better monitor water supplies and usage. UKT has also invested signifi cantly in employee training and salaries and has implemented new ICT systems to enhance customer service.

Current priorities for UKT include boosting Albania’s water supplies, assessing the needs of communities throughout the country to provide adequate water for all, enhancing processes for ensuring clean drinking water, investigating new water sources, and upgrading equipment and machinery. “UKT has taken a very proactive approach,” explains CEO Sahit Dollapi.

Major projects currently underway

One of UKT’s projects is to expand Bovilla’s plumbing system to increase its accumulative and generative capacity by 30,000 cubic metres and equip it with a new supply chain system. UKT would also like to build a ring system around Tirana to streamline users’ access to water supplies. Sahit Dollapi points out, “These two investments combined will total around €48 million. We are investing €9 million of our own capital in our current projects, including the construction of trans-mission and distributive lines for running and drinking water in six informal regions, inhabited by houses and private businesses.”

While UKT is a public company, it is run like a private enterprise. Sahit Dollapi says, “A unique aspect of UKT is that, despite being offi cially regarded as a state owned company, we are open to all joint venture opportuni-

Sahit Dollapi, CEO

ties and are able to work as if we were privately held and owned. We are currently capitalising on our profi ts by pursuing an aggressive policy of investments in physical capacity, increasing employee salaries, and exploring our territories.”

Rruga “5 Maji”, prane MedresesëPhone: +355 4 2225572

Email: [email protected]

Infrastructure

Agriculture

• Ministry Ensuring International Competitiveness of Albanian Agriculture

• Boosting Production of Agriculture and Food Products

“Organic farming has enormous potential for investors in Albania and will bring about more added value in the agriculture sector.”

Genc Ruli, Minister of Agriculture

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THE EUROPEAN TIMES

Ministry Ensuring International Competitiveness of Albanian AgricultureAgriculture is one of Albania’s key growth sectors. Genc Ruli, Minister of Agriculture, explains, “In 2008, the agriculture sector generated around 18.5% of Albania’s GDP and provided employment for around 48% of the population. Agricultural production in 2010 rose by 8% compared to 2009, marking the largest increase in 20 years.” This growth is particularly impressive since the Albanian agriculture sector is dominated by small farms with an average size of only 1.2 hectares.

To support the agriculture sector, Albania has launched an ambitious rural development programme that includes the digitalisation of key information related to agricultural activities. “Without this, Albania’s agri-culture sector would not be able to achieve EU inte-gration,” Genc Ruli explains. The programme also covers technical assistance for the establishment of the Agency of the Rural Development Programme and Managing Authority, whose task is to ensure that Albania’s agriculture sector meets the criteria set by the EU acquis communautaire.

In its previous rural development programme (2005 to 2010), the Ministry of Agriculture focused on publicly fi nanced rural infrastructure projects (including schools, healthcare facilities, water systems and transport infrastructure) as well as agricultural subsidies. “In the future, we will gradually increase direct support to farmers,” Genc Ruli says. Agricultural subsidies for olive and fruit production, irrigation systems, milk and cheese production, beekeeping, organic farming, the production of vegetables and meats for export, and other agricultural activities will be continued until set goals are reached, Minister Ruli adds.

Organic farming and olive production

Albania’s agricultural sector offers competitive advantages for the production of a wide range of

Genc Ruli, Minister of Agriculture

products. Minister Ruli highlights organic farming; he says, “Organic farming has enormous potential for investors in Albania and will bring about more added value in the agriculture sector.” Olive oil production also has strong prospects and the Ministry of Agricul-ture is promoting investment in olive oil technology, manufacturing and marketing as well as in planting large groves of olive trees. Albania has also begun a major project to plant more nut trees with the aim of producing nuts for export.

Albania’s Ministry of Agriculture is committed to ensuring that Albania’s agriculture sector meets inter-national standards. Genc Ruli says, “Our primary goal is to enable Albanian agricultural products to fully supply domestic market needs and then, through the consist-ent application of CAP criteria, to export products to international markets. Both producers and consumers of Albanian agricultural products will benefi t.”

Agriculture

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ALBANIATHE EUROPEAN TIMES ALBANIAALBANIATHE EUROPEAN TIMES

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Boosting Production of Agriculture and Food ProductsAlbania’s agriculture and food processing sector has Albania’s agriculture and food processing sector has successfully made the transition to a free market system and plays a key role in the Albanian economy, con-tributing 18.9% of the country’s GDP and employing almost half of the working population. According to a recent World Bank report on Albanian agriculture, the sector has maintained around 5% average annual growth since 1994.


Albania produces a wide variety of agricultural products, including wheat, corn, potatoes, vegetables, fruits, sugar beets, grapes, meat, dairy products, and niche items like frogs’ legs and sage leaves, all of which are achieving success in export markets. Albanian farmers have dem-onstrated an ability to adapt to an open market, in spite of the constraints they are facing; these include a lack of improved seeds, modern fertilisers and up to date machinery as well as a need for better technologies. International observers agree that agriculture and food processing in Albania offer excellent growth potential given adequate investment support.

World Bank sees excellent growth prospects in Albanian agriculture

The World Bank Group has invested around €14 million in Albania’s agriculture sector to date, mainly focusing on building irrigation systems in areas of Albania with a long tradition of agricultural activity. The World Bank believes the Albanian agriculture sector has excellent growth prospects given Albania’s temperate climate, fertile soil, many days of sunshine, low labour costs, rural areas with a more educated population than is

Vermosh

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THE EUROPEAN TIMES

Agriculture

common in the region, growing domestic market and proximity to top export markets like Greece and Italy as well as Russia and Belorussia.

Foreign investors should take a look at Albanian agri-culture, the World Bank believes. As a recent World Bank report states, “The Netherlands’ agricultural pro-duction exceeds that of Albania’s, and yet Albania has a much greater abundance of sunlight at its disposal. Thus, there is a very real possibility for foreign investors to work with local farm cooperatives, companies, and institutions such as the World Bank to ensure favour-able growth within the sector as well as favourable returns on investment.”

USAID has launched fi ve year agricultural development programme

The United States Agency for International Develop-ment (USAID) is another believer in Albania’s agricul-ture sector. In 2007, the USAID launched a fi ve year development programme for Albanian agriculture that aims to boost the income of rural households and strengthen the competitiveness of Albanian producers of high value agricultural products. The programme assists farmers in improving the productivity of their operations and their responsiveness to trade conditions and opportunities. It focuses on farmers growing fresh fruits, fresh vegetables, melons and olives, and comple-ments other USAID programmes in Albania.

The USAID and Albania’s Ministry of Agriculture launched Albania’s fi rst multi-media information system in January 2009; known as SITA (Information System for Trade and Agribusiness), the system has been providing thousands of farmers and traders in Albania with daily wholesale and retail prices for 22 commodities from four major markets around the country. SITA also produces weekly and monthly market analysis reports. In 2010 USAID opened the Market Information and Trade Facilitation Offi ce in Tirana, which is designed to help farmers meet market demands.

Focus on niche and early harvest products

The Swiss Agency for Investment and Cooperation has also expressed its confidence in the Albanian agriculture sector. In a recent report, the agency commented, “Labour intensive vegetable and fruit crops grown during the winter season in the lowlands along the Adriatic Sea are attractive and competitive products with a good potential for Albania. Early harvesting during the off season in Northern and Eastern Europe can bring high prices for Albanian

farmers due to product scarcity on these markets at those times.” The Swiss agency also cites the growth potential of cultivating medicinal and aromatic plants as well as mushrooms in remote areas of Albania. The demand for such fresh and processed crops in the international market is growing fast, especially for products with organic certification.

Focus on developing organic agriculture

In fact, Albania’s Ministry of Agriculture, Food and Consumer Protection recently announced that it aims to promote the development of organic agriculture in Albania to meet rising global demand. Genc Ruli, Minister of Agriculture, Food and Consumer Protec-tion, said in July during a conference on organic agri-culture, “Demand for organic products in European markets is high and therefore Albanian farmers could gain more revenues by growing them.” Minister Ruli added that around 4% of the arable land under cul-tivation in Albania is being farmed organically at present, and that the Albanian government wants that percentage to rise to 5% by 2013.

Albania’s efforts to join the EU are adding to its appeal as a target for investment in agriculture and food enter-prises. As Albania steadily improves its transport infra-structure and implements new technologies, it is certain to carve out a bigger share of the European market for agricultural and food products.

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Atlas Mills

Successful Flour Mill Demonstrates Potential of Albanian MarketAtlas Mills has been growing rapidly since it was founded in Tirana in 2003 and has already earned a 33% share of Albania’s fl our market. Atlas Mills a 33% share of Albania’s fl our market. Atlas Mills was part of the Greek owned Loulis Group, a 300 year old enterprise which operates fl our mills throughout Greece and the Balkans and has garnered a 20% share of the regional market of 50 million consumers. In 2009 Loulis Group’s stake in Atlas Mills was acquired from Mr. Dimitrios Thomoglou.

The Atlas company has been active in Albania since 1995. In addition to Atlas Mills, it has also launched Atlas Transport, which handles the transport of Atlas Mills’ raw materials and fi nished products, and Atlas Grain Shipping, which transports wheat. Atlas Mills’ CEO, Dimitrios Thomoglou, says, “Our aim is to maintain a wonderful relationship with our customers and the market by constantly producing the best products at the most attractive prices.”

State of the art mill

Atlas Mills invested €12 million in a new state of the art mill which began production in 2005; it is ideally located 6 km from the centre of Tirana, 10 km from the airport and 35 km from Durresi Port. Now the company is continuing to expand its markets. In addition to its dominant position in Albania, Atlas Mills currently exports its products to Montenegro, Kosovo and Greece. The company imports wheat from Russia and Ukraine, being hampered by tariff restric-tions from importing from Europe. With its drive, fl ex-ibility and impressive track record in spite of Albania’s economic challenges, Atlas Mills demonstrates the potential of the Albanian economy.

Strong commitment to quality

An emphasis on quality and the willingness to move into new activities have given Atlas Mills its compet-

itive edge. Explaining the company’s success story, Dimitrios Thomoglou says, “The focus on quality is a huge drive behind Atlas’ strong performance. Atlas uses only the finest ingredients for its flour, which is designed for individual consumers as well as for professional uses.” Atlas Mills’ product portfolio includes Atlas Flour 100, for home cooking; Atlas Farin’ AP, with added rising agents; self rising Farino Flour, perfect for cakes; all purpose Flour Ola; and Natural, the ideal flour for bread.

Atlas Mills operates according to the highest inter-national standards, including ISO 9001:2000 quality standards and HACCP (Hazard Analysis Critical Control Point) specifications. All the mill’s equipment and production processes are continu-ously inspected and upgraded in order to maintain the high quality of Atlas Mills’ flour and to guarantee that all health, safety and quality criteria are met. Atlas Mills also invests significantly in staff training to ensure the best possible human resources.

Move into pasta production, hydropower

CEO Dimitrios Thomoglou aims to continue to increase Atlas Mills’ market share and boost its pro-duction capacity while also getting involved in new activities that make the most of Albania’s develop-ment potential. He says, “We are contemplating a move into pasta production. We believe that develop-ing production capacity for a pasta plant in Albania will both lower the company’s costs as well as add a key ingredient to Albania’s domestic agriculture industry, which has been largely neglected since the fall of communism in the early 1990s.”

Hydropower is another sector targeted by Dimitrios Thomoglou. He explains, “We are also considering investing in hydropower plants, using Atlas Mills’ success to leverage our investment potential in this new field of activity, which we believe offers excep-tional prospects thanks to Albania’s rich hydropower resources. In fact, Albania has the greatest hydro-power capacity in the Balkans.”

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THE EUROPEAN TIMES

ATLAS SARruga Nacionale Tirane - Durres

Km 6 (Yrshek)Tirane, Albania

Tel.: +355 48 30 11 47-9Mail: [email protected]

www.atlasmills.com

Agriculture

Looking for foreign partners

Atlas Mills welcomes the chance to work with foreign investors in its many projects and is ready to serve as the ideal local partner for investors looking to get in on the ground fl oor in Albania. Dimitrios Thomoglou explains, “Atlas is open to joint venture and partnership opportunities with international investors, for example in our planned pasta production facility and our hydro-power initiatives.”

Dimitrios Thomoglou cites a number of viable invest-ment opportunities in Albania’s agriculture sector, including irrigation systems and subsidising larger plots of land for local farmers. He says, “Local produce is of very high quality, yet the conditions for developing this important industry are not currently fostered in Albania. There needs to be more investment channeled into Albanian agriculture, and investors in Albanian agriculture can certainly count on attractive returns.”

Supporting Albania’s economic growth

Albania needs strong private companies, and Dimitrios Thomoglou is committed to making sure that Atlas Mills

continues to play a key role in the country’s economic development. He urges international investors to look into opportunities in Albania, and explains, “The positive experience of Atlas Mills here in Albania shows that this country can support economic successes by foreign investors. Our history should reassure any investor thinking of getting involved in projects here.”

Transport

• Vast Infrastructure Projects with Investment Appeal

• Major Transport Infrastructure Projects in the Works

“The question should no longer be why should European investors

come to Albania, but why have they not come here already.”Sokol Olldashi, Minister of Public Works and Transport

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THE EUROPEAN TIMES

Vast Infrastructure Projects with Investment AppealSokol Olldashi, Albania’s Minister of Public Works and Transport, discusses the major infrastructure and Transport, discusses the major infrastructure projects now underway throughout the country.

European Times: What are the Ministry of Public Works and Transport’s main objectives for Albania’s national infrastructure?Minister Olldashi: Our main focus concerning infrastruc-ture development has been upgrading Albania’s road network. We have managed to build 8,000 km of roads within fi ve years, and in the next three years we aim to equip Albania with a complete road infrastructure that meets European standards.

There are two main reasons why we are concentrating on roads. First, because the roads system we inherited from the communist years was appalling, and second, because road development will not only streamline transport within the country but also between Albania and neigh-bouring markets.

We are particularly focusing on upgrading the roads between our national ports and the borders of Albania in order to improve connections to and from Montenegro, Kosovo, Macedonia and Greece. We have also boosted the capacity of our main ports, particularly Durres, our key port on the Adriatic.

European Times: How is Albania fi nancing its infrastructure development?Minister Olldashi: Most of the fi nancing comes from the national budget, but we also work with international fi nancial institutions such as the World Bank, the IBRD, the EIB, the IDB and other banks, and with fi nancing made available by partner governments. In cases such as the International Airport of Tirana, we have successfully applied concessionary contracts, making use of business investments to improve important transport infrastructure.

In addition to improving major roads, we also have a programme to upgrade and expand our secondary road network. This project is being funded by the World Bank and other donors. We have obtained around US$400 million (€296 million) to improve thousands of kilome-tres of rural and secondary roads.

Sokol Olldashi, Minister of Public Works and Transport

Transport

All procurement procedures in Albania are fully trans-parent and electronic, which means that construction companies from most European countries and beyond can be present in Albania through signing contracts for road construction, water supply chains or ports develop-ment projects.

European Times: What makes Albania attractive to European investors? Minister Olldashi: Albania has achieved stable economic growth, and thanks to carefully tailored fi scal policies, it has escaped the crisis that has threatened our continent. We offer a favourable fi scal system for foreign investments, a fl at tax rate of 10%, agreements with most European countries for double taxation exemptions, a very sound legislation for the protection of foreign investments, a well educated and relatively cheap labour force, and a highly advanced legisla-tive package for public private partnership projects.

Albania has huge unexplored investment potential in developing roads, railways, ports, marine transport, water supply systems, waste recycling plants, tourism, energy and mining. Most of all, Albania is the country with the fastest foreign direct investment growth in Europe. Foreign busi-nesses already have a strong presence here, and perhaps the question should no longer be why should European investors come to Albania, but why have they not come here already?

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Major Transport Infrastructure Projects in the WorksAlbania is engaged in an ambitious, far reaching programme to upgrade its transport infrastructure and logistics services in order to support continued economic growth and enhance international trade. As Minister of Public Works and Transportation Sokol Olldashi points out, “A comprehensive, well functioning transport infrastructure is of crucial importance for effi cient and cost effective mobility and especially for rapid freight transport to interna-tional markets. Improved infrastructure along the Pan European Corridors in particular will help Albania meet EU standards of operational effi ciency.”

Transport Corridor VIII

According to Minister Olldashi, planned transport infrastructure projects for Albania range from Pan European Corridor VIII to further road and rail construction and major development initiatives at Albania’s ports and airports. Corridor VIII, a Trans European Network Corridor, is of particular impor-tance for Albania; it will include not only new roads but also new rail and pipeline connections between Albania, Macedonia and Bulgaria.

“Many of the components of this project are already underway, but many more are still unfunded,” Sokol Olldashi points out. He adds, “Once the rehabilitation of the rail network is well underway, Albanian Railways will need to complete the connection to Macedonia. We have already seen an increase in freight transport in Albania beginning in 2010 and this will continue to grow, while new regulations allowing visa free travel for Albanians will step up passenger traffi c as well.”

Port of Durres being upgraded

Developing world class port services is a top priority for Albania, which has a 440 km long coastline. Albania currently has six commercial ports, the most important of which is the Port of Durres. “The Port of Durres is Albania’s Corridor VIII gateway for manufactured goods, containers and passengers. Despite recent investments made in the rehabilitation of the port’s infrastructure, more investment is needed to achieve European standards,” Sokol Olldashi points out. The Port Authority of Durres is fi nancing the construction of a new berth budgeted at €9.8 million; Austrian enter-prise KALMAR won the contract to maintain cranes and vehicles for the project.

While the Port of Durres will remain Albania’s top port for international trade, the minister of Transport

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THE EUROPEAN TIMES

Transport

notes that the ports at Vlora and Shengjin also need modernisation and expansion. He says, “Ferry traffic is very important for the Port of Vlora, while conventional cargo ships still use the port, espe-cially for construction materials. Vlora’s commercial port facili-ties are getting a major upgrade thanks to €15.3 million in funding from Italy.”

The port of Vlora has two petroleum terminals that serve regional markets, and Minister Olldashi believes that additional facilities to handle other types of cargo may be needed there. He adds, “Before beginning these improvements we need a coastal management plan that takes into consideration land use and environmental factors, for example concerning the impact of port development on tourism as well as industry.”

Management of the port at Shengjin may be turned over to Kosovo but increased traffi c at this port will boost trade in Albania. Minister Sokol Olldashi adds, “For all three ports, offshore explora-tion and development of petroleum resources could have a major impact.” Albania also has a port at Saranda which is seeing increasing passenger traffi c from Corfu as well as from cruise ships. The port is getting a new cruise ship terminal funded by the World Bank.

To complete its many infrastruc-ture projects, Albania is stressing international cooperation, public private partnerships, and the creation of opportunities for FDI. Albania is also stepping up its par-ticipation in regional infrastructure projects. At a meeting in Tirana of the South East European Transport Axis Cooperation (SEETAC), Sokol Olldashi commented, “For countries such as Albania, having the possibility of working in the

framework of a regional initiative is a very important aspect of coop-eration. Albania is a crucial actor in the Western Balkans and Europe is the way ahead for this region.”

Opportunities for international investors

Investors will fi nd a wealth of opportunities in Albania as it works to bring its transport infrastructure up to international levels. The Port of Durres, for example, has only one container handling facility in spite of rapidly growing container traffi c, and Albania still does not have any logistics centres. The gov-ernment also wants to enhance links between Albanian ports and other countries.

Projects with particularly strong potential for international companies and investors include creating manufacturing clusters around the Port of Durres and other areas, opening and operating world class logistics centres, and partner-ing with international organisations and other foreign and local fi rms in major infrastructure projects. Minister Sokol Olldashi explains, “Many construction companies in Albania have long standing traditions of success, and a large portion of them have been in the business for over 20 years. As the EU continues to invest in trans-conti-nental highways and infrastructural projects involving Albania, the time is ripe for foreign investors to enter the Albanian market.”

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Fierza Hydro

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Free Trade Hub of the Western BalkansAlbania – with its well established ports, strong economic performance and strategic location – is positioning itself as a trade hub for the Western Balkans. A member of the World Trade Organisation since 2000, Albania enjoys signifi cant free trade advantages.

Like other Western Balkan countries, Albania has signed a Stabilisation and Association Agreement (SAA) with the EU, and since 2000, almost all exports from the Western Balkans have been able to enter the EU without customs duties or limits on quantities.

Albania is also a member of the European Free Trade Association (EFTA), and since November 2010 all trade between EFTA member countries has been free of customs duties on industrial products. EFTA member states can freely import materials from other EFTA countries plus Turkey for manufacturing products to be exported to EFTA and the Turkish market. Albania has signed bilateral agreements with individual EFTA states concerning trade in agricultural products. Total trade between Albania and other EFTA countries reached €27.9 million in 2010.

In addition, Albania benefi ts from its participation in the Central European Free Trade Agreement (CEFTA), which links all countries in the Western Balkans plus Moldova. Albania has also had a bilateral free trade agreement with Turkey since 2008. Albania clearly has signifi cant appeal for trade oriented enterprises.

Hydro power plant

Port of Shengjin

Port Areas Offer High Potential Investment OpportunityThe Port of Shengjin has recently completed a number of major upgrades that will make it even more effi cient and competitive, including a new passenger quay, a deeper channel for ferries, and an improved facility for passenger vehicles.

The port handles around 350,000 tonnes of cargo per year and has a modern quay with the latest equipment for stevedoring operations. A new road to Durres Morine has boosted the port’s traffi c.

General Director Zef Gjoka calls for more infrastruc-ture investment in Albania’s port areas, and notes that investment in the Port of Shengjin will have a multiplier effect on the local economy. He says, “We are open to partnerships and investors. We can offer a favourable return on investment given our geographi-cal advantage in the region.”

www.portofshengjin.com

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Health

• Minister Overseeing Ambitious Healthcare Modernisation

• Making Progress in Upgrading Healthcare System

“Albania has established a new occupational health and safety law and the Ministry of Health will play an important role in ensuring that this law is

implemented.”Petrit Vasili, Minister of Health

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Minister Overseeing Ambitious Healthcare ModernisationAlbania’s Minister of Health, Petrit Vasili, is overseeing an ambitious long term effort to upgrade Albania’s an ambitious long term effort to upgrade Albania’s healthcare system. Among many recent projects, in 2009 the minister presented the results of a successful six year effort to develop Albania’s primary healthcare system; this initiative has made high quality primary healthcare services available to people all over Albania, including in remote areas.

Albania’s Ministry of Health has also implemented new e-health services, upgraded treatment of HIV/AIDS patients, and, with support from the govern-ment of Japan, recently launched a programme to improve emergency care throughout the country. In this programme, Japan will provide advanced life support ambulances, CT scanners, patient monitors and other emergency lifesaving equipment to Mother Theresa Paediatric Hospital, Kukes Regional Hospital, and other hospitals.

Upgrading fi nancing structures for healthcare

In a major step forward, Albania’s Ministry of Health is modernising its fi nancing structures for healthcare with the help of a World Bank loan. Reforms of the healthcare system that will be supported by this loan include strengthening mechanisms to allocate funds and select benefi ciaries in Albania’s main social assis-tance programme; initiating the process to create a unifi ed registry of benefi ciaries of social assistance pro-grammes; and enhancing the effi ciency and equity of healthcare spending.

In addition to the World Bank, the USAID, the UN and a number of other international organisations have provided assistance to Albania as it upgrades its healthcare sector, and the Ministry of Health continues to form international partnerships related to healthcare. In 2010, Petrit Vasili addressed a meeting of the International Labour Organisation in Tirana which focused on occupational health and safety. At the event, Minister Vasili said, “Albania has

Petrit Vasili, Minister of Health

established a new occupational health and safety law and the Ministry of Health will play an important role in ensuring that this law is implemented. We need to further develop the legislative framework in this fi eld, and I would also like to see stronger collaboration between the Ministry of Health and the International Labour Organisation.”

Providing high quality healthcare means having a clear picture of local healthcare needs, and Albania completed its fi rst Demographic and Health Survey in 2010. Of this effort, Petrit Vasili said, “Population based studies of this magnitude are a major undertaking that provide information on important indicators which measure the progress of a country.” Albania is clearly committed to bringing its healthcare sector up to inter-national standards.

© Foto LSA

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THE EUROPEAN TIMES

Making Progress in Upgrading Healthcare SystemAlbania is steadily upgrading its healthcare system and pharmaceuticals sector with the help of international pharmaceuticals sector with the help of international organisations and investors. The challenges are great but signifi cant progress is being made.

In 2009, Albania’s healthcare system had the lowest budget of any country in the region, totalling only 2.74% of GDP, or €238 million. The healthcare sector has also been plagued by ineffi ciency, a problem the current Minister of Health, Petrit Vasili, is determined to solve. Speaking during a conference to present a United States Agency for International Development (USAID) healthcare project in Albania, Minister Vasili said, “Sometimes, often subjectively, we seek large hospital buildings to solve small clinical problems, bypassing the primary healthcare system. I insist and will continue to insist that the power of the system remains in the equilibrium of care.”

Over the past few years the Albanian Ministry of Health has launched several ambitious reform pro-grammes designed to upgrade primary healthcare as well as decentralise healthcare services for maximum effi ciency, reorganise the national hospital system to eliminate redundancies, create treatment centres for certain diseases and for certain types of patients, adopt a rigorous accreditation scheme for healthcare facili-ties, stimulate the development of the national health insurance scheme launched in 1995, and implement new equipment and technologies.

Partnership with the World Health Organisation

Albania signed a partnership agreement with the World Health Organisation that outlines specifi c projects for the healthcare sector for the period 2008 to 2013. Medium term goals include strengthen-ing the stewardship role and capacities of the health system through developing key policies and strate-gies, including disaster preparedness and response; strengthening health fi nancing policies; increasing access to quality healthcare services throughout the country; ensuring continuity of care; providing free widespread essential public health services and phar-

maceutical coverage at all levels of the health system; and upgrading the training of healthcare professionals.

More specifi c goals outlined in the WHO agreement include improving the enforcement of international health regulations and the surveillance and control of communicable diseases, including TB and HIV/AIDS. Upgrading healthcare for mothers and children, enforcing higher standards for food safety and water/air quality, and promoting healthy lifestyles are other goals outlined in the programme.

According to the WHO, major stumbling blocks to healthcare development in Albania include a brain drain of qualifi ed health professionals, fragmented fi nancing systems for healthcare, outdated public health services, and inadequate education and training systems for healthcare professionals. As the USAID notes, “Albania’s health system standards are a constraint on its accession to membership in the EU.”

USAID targeting primary care

To help cope with these problems, the USAID has focused on funding improvements in primary health-care in Albania. The USAID provides intensive, in-coun-try technical assistance to upgrade management cost effectiveness and the quality of and demand for primary

Health

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healthcare in fi ve districts around the country, concen-trating particularly on family planning and reproduc-tive health, HIV/AIDS, and family medicine.

Recent success stories in Albania’s healthcare sector include the adoption of a Health Information System funded by the USAID, the establishment of continuing medical education boards in fi ve regions to monitor healthcare quality, new family planning services provided nationwide, the adoption of a USAID funded Contraceptive Logistics Management Information System, and the launch of Albania’s fi rst Demographic Health Survey.

The Albanian healthcare system has also received essential support from the United Nations. In 2009, when Albania was awarded fi nancing from the UN-Spain Millennium Development Goals Achievement Fund, Minister of Health Petrit Vasili commented, “We look forward to working with our colleagues in the Ministry of Agriculture and UN Agencies UNICEF, WHO and FAO in meeting our commitments to the Millennium Development Goals, specifi cally in the areas of child nutrition, child mortality and maternal health.”

Investors targeting pharmaceuticals

While healthcare services in Albania are mainly publicly funded, the pharmaceuticals sector is now dominated by private companies; former monopoly player Profarma was privatised in 2001. Albania’s liberalised pharmaceu-ticals market has been growing by around 10% per year, and a number of foreign pharmaceuticals groups have opened offi ces in Albania while others are represented there by importers.

Some pharmaceuticals are reimbursed by the public health service while out of pocket payments account for the remainder of pharmaceuticals expenditures. Total spending on pharmaceuticals in Albania accounts for around 30% of healthcare spending in the country.

Albania’s Law on Medicines requires that all pharma-ceuticals sold in Albania be registered and licensed by the National Centre for Drugs Control, while drug prices are set. To increase the hurdles for illegal imports and to eliminate a widespread practice of overcharg-ing patients for medicines, a drug labelling system has been introduced. In addition, new registration require-ments call for an EU certifi cate for drugs from develop-ing country manufacturers. Albania’s bid for EU mem-bership will certainly lead to higher quality healthcare services and a more competitive pharmaceuticals sector in the future.

Rejsi FarmaPharmaceuticals Leader Welcomes More International PartnershipsRejsi Farma has been Albania’s number one distributor of pharmaceuticals products for the last fi ve years. The innovative company, which achieved €20.8 million in turnover in 2010, demonstrates the talents and potential of Albania’s private sector. Rejsi Farma works with many of Europe’s leading pharmaceuticals companies – including Roche, Sanofi , Novartis, Bayer, GSK and AstraZeneca – and has earned a strong reputation as a reliable, stable business partner in Albania.

Explaining Rejsi Farma’s competitive edge, Nexhat Sheqi, Director, who runs the company with his wife, Merita Sheqi, says, “We offer high quality products and we work only with serious companies. We are good about making payments and have built up the business slowly and steadily.” He welcomes the chance to work with more international pharmaceuticals companies.

Rejsi Farma has helped build strong foundations for the future growth of Albania’s high potential pharma-ceuticals sector and is playing a key role in the drive to make Albania a member of the EU. “We need to brand Albania for the EU and make the country more competitive in dealing with international funders and partners,” Nexhat Sheqi believes. As for Rejsi Farma, he adds, “We will continue to be number one in Albania’s totally open pharmaceuticals sector.”

Rejsi FarmaRejsi FarmaRr: Elbasanit, P. Edil al-it/1

TiranaTel. +355 4 374925www.rejsifarma.com

Tourism

• Everything It Takes to Become Top Tourism Destination

• Treasure Trove of Tourism Attractions

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Everything It Takes to Become Top In the heart of the Mediterranean, with a coastline of almost 500 km on the Adriatic and Ionian Seas, a rich and diverse cultural heritage, many natural wonders and a welcoming population, Albania has wonders and a welcoming population, Albania has what it takes to become a leading European travel destination. Still unspoiled, Albania offers visitors an inspiring mixture of cultures as well as some of Europe’s most beautiful mountains, beaches and architectural treasures. Albania lives up to its slogan, “A New Mediterranean Love”.

Among Europe’s top 10 destinations

Guidebook publisher Lonely Planet singled out Albania as one of its top 10 tourism destinations for 2011. Explaining its choice, Lonely Planet said, “Not so long ago, when the Balkans were considered an ‘only for the brave’ travel destination, only the bravest of the brave trickled into Albania. Since backpackers started coming to elusive Albania in the 1990s, tales have been told in ‘keep it to yourself’ whispers of azure beaches, good cuisine, heritage sites, nightlife, affordable adventures and the possibility of old style unplanned journeys complete with open armed locals for whom travellers are still a novelty. Albania won’t be off the beaten track for much longer.”

Located between Greece, Macedonia, Kosovo, and Montenegro, and across the Adriatic from Italy,

Albania has been a key trade hub for centuries, and throughout the country visitors can fi nd remnants of Albania’s long history. Butrint, one of the world’s archaeological wonders and a UNESCO World Heritage site, offers a glimpse of Mediterranean civi-lisation from the Bronze Age through the Greek, Roman, Byzantine, Venetian and Ottoman periods, all atop a cliff overlooking Corfu. And it is just one of Albania’s many cultural sites.

The Albania tourism industry has seen a signifi cant growth spurt 2011, attracting more than 400,000 more travellers between January and August than it did over the same period in 2010. Outbound tourism also increased, with nearly 350,000 Albanians travelling abroad. Albanians are also increasingly discovering the charms of their own country.

Outstanding tourism investment potential

The potential of Albania’s tourism sector has already attracted foreign direct investment. Lalzit Bay Resort & Spa is one example. Ravin Maharajah, Partner, explains, “Albania is a distinctive emerging market, one that investors can see potential in. There are vast monetary opportunities in Albania and investors want to take advantage of the growing tourist market, competitive business environment and of course the property development opportuni-ties. We are proud that our five star development lies within Albania and are delighted to be a part of the country’s growth.”


THE EUROPEAN TIMES

Albanian Diving

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Albania’s capital city, Tirana, is set between mountains and the sea and is the centre of the country’s business and cultural activities. Easily reached via Mother Theresa International Airport, Tirana offers a lively cultural scene, many convivial cafes and restau-rants, and up to date services for business travellers. Theranda, a new boutique hotel in the heart of the city offers world class services to business and leisure travellers and illustrates the potential of Albania’s hotel sector for investors. www.therandahotel.com

Paradise for beach lovers

For beach lovers, Albania is a paradise, and just needs investment in resorts and hotel properties to bring more travellers flocking to its beach destinations. One of the most popular beaches in the country is Mali Robit, only a 45 minute drive from Tirana on the southern Adriatic coast. Shengjin also offers fine beaches and is also known for its unspoiled wetlands. Vlora, home of Albania’s second biggest port, combines lovely beaches with many histori-cal monuments, including the Great Mosque built in 1542 and the 3rd century AD Kanina castle on a hilltop just outside the city. Sazan island, a one hour boat ride from Port Vlora, offers its own pristine beaches. Other attractions in the area are Appol-lonia, one of Albania’s most significant archaeologi-cal sites, and Oricum, founded in the 7th century.

Albania’s Ionian Coast is characterised by striking landscapes, unspoiled rocky beaches and quaint

beach towns, along with many castles, national parks and ancient villages. It is a hub for adventure sports and is another good choice for investment in hotels and tourism related services.

Albania is much more than beaches, however. Just one example of the country’s beautiful mountain destinations is the village of Boga in the Albanian Alps, a popular ski resort. Albania has several national parks, including Prespa, Butrint and Thethi, all illustrating the diversity of the country’s natural heritage. Sports enthusiasts can enjoy mountain climbing, skiing, kayaking and many other activi-ties, and investors in sports facilities will find a ready market.

With its diversity of attractions, off the beaten track appeal, and growing reputation as a preferred travel destination, Albania is an outstanding choice for tourism investment in hotels, resorts, cultural and other special interest tours, and services for business and leisure travellers.

© National Tourism Agency of Albania© National Tourism Agency of Albania

THE EUROPEAN TIMES

Tourism DestinationBerati ChurchAlbanian Alps Trekking

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Albania Car Rentals

Car Hire Firm Guarantees Great Prices, Great Cars, Great ServiceAlbania Car Rentals is the partner of choice for visitors to Albania as well as corporate clients seeking top quality vehicles and international standard car hire services. Founded in 2009, Albania Car Rentals has grown rapidly, from a fl eet of only fi ve cars when the company was launched to 50 cars today, all of them brand new, from economy cars to minibuses and luxury models. Albania Car Rentals is playing a key role in boosting the development of Albania’s high potential tourism sector.

Albania Car Rentals is well known for offering service with a smile. In fact, one result of the company’s high quality is that word of mouth advertising, beside internet and commercials, has brought the company many of its new customers. “We try our best to make our clients happy and to always provide the best services for them. Our clients recommend us to others, and these

Gert Gjeli, owner

referrals have been the source of much of our new business,” says Gert Gjeli, owner.

Albania Car Rentals serves customers throughout the country and offers a number of value added options, including free airport pickup and delivery, drivers on request, four-wheel-drive vehicles, and special transport for tourists. Most of Albania Car Rentals’s vehicles are automatic transmission to suit the demands of an international clientele.

Rruga Pashko Vasa Nr 1, TiranaTel & Fax: +355 4 22 50 363Mobile: +355 684 023 218

email: [email protected] www.albaniacarrentals.com

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Expanding range of services and growing fl eet

Albania Car Rentals is continuously working to expand its range of services as well as add to its fl eet to satisfy the rising demand for rental vehicles in Albania, particularly in the busy summer tourism season. Gert Gjeli points out, “Albania’s tourism sector is growing so fast that many visitors make their summer reservations in January. We are also seeing an increasing number of business visitors, who often rent a vehicle for the weekend to explore the countryside.”

A proactive company determined to grow with the Albanian economy, Albania Car Rentals has ambitious plans for the coming years. Gert Gjeli explains, “We are always looking to the future, and we plan to open an offi ce at the international airport to better serve our customers. Most of our clients are from the UK, Germany, the US, Ireland and Australia. They know that Albania Car Rentals offers great prices, great cars, and great service!”

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Hotel Arber

World Class Accommodations in the Heart of TiranaHotel Arber offers world class accom-modations for visitors to Tirana. The modern hotel has 24 elegantly decorated, recently refurbished rooms and one spacious suite. The hotel is ideally located in the heart of the city just two blocks from the National Museum and near all of Tirana’s key government offi ces, businesses, shops and cultural sites. By car it is only around 20 minutes from the international airport.

Hotel Arber’s amenities include digital television, laundry service, central heating and air conditioning, a restaurant and a coffee shop, breakfast buffet service, telephone and Internet connections, minibars, and 24 hour concierge, guard and taxi services. For executive travellers, the hotel has a large conference room equipped with the latest technologies.

Prestigious corporate customers

Hotel Arber has hosted many high profi le visitors to Tirana and regularly serves a number of corporate clients, including ALBtelecom, AMC, Eagle Mobile and BKT. General Manager Joana Kushe explains, “Our prestig-ious customer list refl ects the fact that Hotel Arber meets the needs of discerning business travellers and companies, and is a reliable choice and partner in Tirana.”

Hotel Arber’s English speaking staff can be counted on to provide a warm welcome as well as professional, per-sonalised service. “Hotel Arber has a comfortable vibe, making visitors truly feel at home here. We offer the kind of hospitality that makes guests feel they are staying with family here in Albania,” says Joana Kushe.

Hotel Arber is playing a role in helping to draw investment to Albania by providing high quality hotel services at competitive prices. As Joana Kushe puts it, “We welcome the chance to serve more interna-tional travellers. For quality, comfort, service and attractive prices, visitors

Hotel ArberStr. Bardhok Biba no.59

1000, Tirana Phone: +355 42 273811

[email protected]

Tourism

to Tirana should look no farther than Hotel Arber.”

Hotel Arber’s owners are looking to expand in Albania’s growing hotel sector and recently bought another hotel on the Adriatic coast in Durres. This new property gives visitors to Tirana yet another reason to choose Hotel Arber. Joana Kushe explains, “Now our customers can stay here at Hotel Arber in Tirana for business during the week and then visit our sister hotel, which has 14 rooms, for a weekend getaway at the beach just 40 minutes away. Our guests can have the best of both worlds.”

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Treasure Trove of Tourism AttractionsAlbania offers a wealth of tourism attractions of all kinds. Key cultural sites include Kuzum Baba in Vlora, a natural terrace carved out by the sea that is the home of a religious centre as well as Kuz Baba Mosque; Butrint, Albania’s best known Greek site and one of Europe’s archaeological wonders; Apollonia, a trade hub during the Greek and Roman eras; Amantia, dating from the 4th century BC; and Bylis, an Illyrian stronghold known for its six basilicas with mosaic fl oors repre-senting early Christian motifs.

Berat, one of the oldest towns in Albania, is a new entry on the UNESCO World Heritage list. It has long been known as the “city of 1,000 windows” because of its unique Ottoman/Albanian architecture. Durres, or Dyrrhachium as it was called in ancient times, is Albania’s oldest and second largest city. Now the country’s top port, it is fi lled with historic architecture and sur-rounded by beautiful beaches.

Sarandë, the gateway to southern Albania, is set on a picturesque horseshoe bay between the mountains and the Ionian Sea just opposite Corfu, to which it is linked by daily ferry service. Vithkuq, one of Albania’s lovely mountain villages, has been a cultural hub since the Middle Ages. Shkodra, idyllically set between the Albanian Alps and the Adriatic, features narrow, stone walled streets and many architec-tural wonders.

Albania is fi lled with religious monuments from many faiths. Pojan near Apollonia was old in the Byzantine period when it was restored and given splendid Byzantine decor; it hosts a popular regional fair

dedicated to St. Mary every August. Muradie Mosque was built by an Albanian architect in the Ottoman period, while Ceta Church, built in the 13th century, has many frescoes.

Tirana, gateway to Albania

Albania’s capital, Tirana, has its own collection of historic archi-tecture as well as a lively cultural scene that includes many museums, art galleries, theatres and music venues. Tirana’s Mother Theresa International Airport is the gateway to Albania for most business and leisure travellers.

Albania has many natural wonders, from the Albanian Alps with their ski resorts, picturesque villages and many sports opportunities, to lakes, rivers and pristine beaches along the Adriatic and the Ionian seas. The “Albanian Riviera” on the southern coast offers crystal clear waters, unspoiled beaches and postcard perfect villages. It is rightly billed as the Mediterranean coastline as it once was.

These sites are just the beginning of what travellers will discover in Albania.

© LSA

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THE EUROPEAN TIMES

Japan Servis

Innovative Auto Enterprise Offers Wide Range of ServicesJapan Servis, launched as a small family business selling spare auto parts, now provides a wide range of world class auto services. The company opened a garage in 2000 and three years ago it began operations as an auto dealership and car hire enterprise. “We have been very successful since we already had our own garage and a very qualifi ed staff, so we have been able to grow rapidly,” explains Florian Voko, Administrator.

Japan Servis currently has 50 vehicles in its car hire fl eet and aims to increase this to 120 vehicles by the end of July. With its new fl eet, Japan Servis will be able to offer customers a wider choice of cars, from high quality sedans to four wheel drive vehicles.

Latest technologies mean savings for customers

Japan Servis has invested in the latest technologies, including cutting edge stock and fl eet management systems as well as a system in each car to check the number of kilometres driven, the location of the car and each driver’s driving practices. Florian Voko says, “We are implementing a new ‘driver behaviour’ system which will be costly, but it will help us to offer lower car hire prices per day for good drivers.”

Japan Servis’s competitive edge is its in depth under-standing of the Albanian market, its focus on providing high quality services, and its use of innovative technolo-gies. Florian Voko explains, “By the end of 2011, we will introduce a ‘euro per kilometre’ service that involves a GPS system with an online programme that helps provide customers with the vehicles they need when they need them and they can pay as they pay their cell phone bills. This will allow us to offer 30% discounts.” Japan Servis will share the costs of the €150 million programme with partners in Kosovo, Macedonia and Montenegro.

Florian Voko, Administrator

As an additional service, Japan Servis will soon offer motorcycle rentals, which Florian Voko believes will prove very popular for customers looking for a way to visit off the road destinations in Albania. Albania already attracts motorcycle buffs from all over the world for its annual motorcycle rally. “In most of western Europe, there is a big market for motorcy-cles but few opportunities to take them off the road. Albania is different,” Florian Voko points out. He concludes, “Here at Japan Servis, our customers pay for service, not the vehicle. There is no need to go elsewhere.”

Japan ServisAutostrada TR - DR km5 perballe QTU - Tirana

Tel.: +355 42 240 7221Mobile: +355 67 20 33 591

[email protected]

Tourism

A new era of telecommunicationin Albania

A new era of telecommunicationin Albania

www.albtelecom.al www.eaglemobile.al

Look to the future

The European Times - Albania

Travel

Transcript of The European Times - Albania