Finance Minister makes assessment analysis for 2006 investments

By Alba ȥla
TIRANA, Jan. 31- addressing the increasing need about investment related information, Finance Minister Ridvan Bode answered inquiries in a press conference organized on Wednesday. The minister first made a brief summary of the realized projects. The total amount of investments reaches $ 604 million and was concentrated on infrastructural projects as well as local government programs. The investment scale is almost one third larger than 2005. As a share of GDP it reaches the level of 6.7 percent compared to 5.4 percent in 2005. Internal investments financed directly form government budget have increased by 41 percent, being responsible for the bulk of the achievements. Around $ 140 million have been allocated and spend from the budget. The surplus has been used to finance public investments approved by the Parliament according to all legal rules. The highest achievements should be credited to the Ministry of Public Works, Transport and Telecommunication, Bode said. They have realized 97 percent of planned activities or around three times more than in 2005. A total of $ 7.6 billion leks has been used by this Ministry to invest in infrastructure and water supply systems. An increase from 6 to $ 19 billion leks has been noticed in road related projects while a 50 percent increase has been noticed in aqueducts. Following is the Ministry of Education with a 90 percent realizing rate or around $ 32 million. The Health Ministry that has spent $ 18 million has also realized 90 percent of its plans. Given its efforts to integrate our country into NATO, the Defense Ministry has achieved almost 85 percent of its targets. A special allowance of 2.4 percent of the budget has been planned for this sector in the 2007 budget. Local government has spent $ 20 million more than last year. This sector shows the highest level of non completion for projects whose funds have been allocated at the beginning of the year. These projects will be carried on during 2007. Municipalities and communes in Albania account for a total of $ million 89 and 80 percent realizing of plans. They have a leftover fund of $ 26 million. The much desired and much debated foreign investment has also increased by 15 percent in 2006 reaching a total of $ 162 million. Since the Ministry is only partially responsible for the realizing of these projects it can do its best to monitor and supervise the correct performance. Thus the minister said that there is more potential to exploit in this field. Accompanying the increasing investment the minister emphasized the low level of government spending, a priority of the right-wing government. Only 2.45 percent of GDP has been consumed by government spending in 2006, falling from the previous 3 percent in 2005 and the corresponding 4 percent in 2004. Asked by the media about ongoing projects Bode said that the majority of investments especially the huge infrastructural ones always take a long time to be completed. The ratio between completed projects to ongoing ones is almost two to one. Forty percent of 2007 planned projects have started in 2006. Asked about the stagnant initiative “Albania one euro”, the Minister said that major infrastructural impediments should be removed first before we expect dozens of FDI projects to pour in. given the achievements form the transportation sector though a positive result should be soon noticed in tat initiative too. Asked about the problems of unrealized projects the minister blamed them on the local government. The problem is often politicized as the government is often at head with the left-wing majority of local government. Out of 11.2 billion leks allocated to authorized local government plans the local authorities have implemented work worth only 8.8 billion leks.