TIRANA, June.10 – The government has decided, during a meeting of the Water Council, to lower the price of water though Finance Minister Bode opposes the measure. Despite the sector’s losses the council, whose members are primarily ministers, have decided to lower the tariffs. The measure looks even more controversial given the World Bank suggestion to double the water price, as the water becomes more scarce.
The last report of the World Bank also recommended the administration dedicate 0.8 percent of the GDP, or $ 70 million, in investments in this sector. Actually, the government finances only one third of this sum. The World Bank has recommended increasing water prices to 52 lek/ m3. Prime Minister Berisha, who headed the meeting, noted that water is a precious natural reserve with great industrial potential. Hence, it will be rented out to industrialist at the symbolic value of one euro to lower costs in the production of beer, juice and other products.
Minister Lufter Xhuveli, explained that the existing tariffs of 20-41 lek/ cubic meter of water will be reduced to 0.19 lek, causing a 44 million lek loss of revenues. Finance Minister, Ridvan Bode, opposed the price reduction while explaining that water should be turned into a market good in order to avoid problems of distribution and provide incentives for its privatization.
Lack of water, and poor water quality, called an obstacle to tourism
Despite the economic potential that tourism can offer Albania, structural impediments continue to plague the country. The Albanian administration has promised 24 hours of water supply to tourism areas, but reality proves that this is not possible. In the Durres area, water is available for only 8 hours per day, while better conditions exist in Vlora with 20 hours of water per day while Saranda lags behind with 14 hours of water daily. The World Bank report pinpoints the main areas where Albanian needs to make serious changes and that are currently hampering the tourism industry, such as lack of water, poor quality of drinking water, sea pollution, and other problems. Due to these problems, neighboring countries clearly have a competitive edge, offering tourists better living conditions.
