PDNA report says earthquake caused 1 billion euros worth of damage

Tirana Times
By Tirana Times February 6, 2020 11:52

PDNA report says earthquake caused 1 billion euros worth of damage

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  • Therefore the economic growth rate is expected to be 2.3 percent in 2019 from the 2.7 percent previously stated by the government, and in 2020 the growth rate is expected to be at 3.2 percent from the 4.1 percent which was stated in the budget.

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TIRANA, Feb. 6 – On Wednesday, the Post-disaster Needs Assessments Report in the aftermath of the November 26 earthquake that struck Albania year, showed that the earthquake has caused 958 million dollars worth of damage in the country. Overall, the earthquake is estimated to have caused damage equivalent to 6.4 percent of the GDP and 1.1 percent in GDP loss. Damage costs also amount to 26.4 percent of gross fixed capital formation, indicating Albania’s limited ability to achieve full restructuring within the short and medium term. In terms of sector losses, the most affected economic sectors were tourism and real estate, but significant damage was also done to the sectors of education, health, public infrastructure, manufacturing and commerce as well as agriculture.

As a result of the earthquake, real GDP growth during 2019 and 2020 is estimated to be lower than what was expected. Therefore the economic growth rate is expected to be 2.3 percent in 2019 from the 2.7 percent previously stated by the government, and in 2020 the growth rate is expected to be at 3.2 percent from the 4.1 percent which was stated in the budget. The trade deficit and current account deficit (CAD) are also expected to worsen. The CAD is expected to increase by about 0.2 percent of GDP, rising to 7.3 percent of GDP in 2020.

This was firstly announced by the Minister of Agriculture Bledi Çuçi  during a joint conference with the EU Ambassador Luigi Soreca. He stated that “50,000 buildings were checked in a record time, which make up 80 percent of the total earthquake-damaged buildings.” Further details of the report were made available through ‘Monitor’, as shown below.

 

Education Sector

 

Damages were reported in 321 educational institutions located in the 11 affected municipalities, which make up 24 percent of all educational institutions. The municipalities of Tirana and Durres were the most affected, accounting for 55 percent and 21 percent of total damage, respectively. In addition, losses are estimated at 8.76 million euros.

 

Health Sector

 

36 health facilities (8 percent of total health facilities in 11 municipalities) were partially or completely damaged, of which 22 are primary health care institutions. There were injuries in three regional hospitals, nine university hospitals, two communal hospitals, ten health centers and 12 health centers. Losses of 1.91 million euros were reported, mainly related to the provision of free medical services during the emergency period.

 

Housing Sector

 

A total of 11,490 housing units were categorized as completely destroyed or demolished and will need to be rebuilt, while an additional 83,745 housing units were partially or slightly damaged, requiring repair and overhaul. Overall, 18 percent of total housing units are affected. The recorded losses of 34 million euros are costs related to waste disposal, costs covering temporary housing (hotels and tents), and rental subsidies, as well as loss in rent not received by the landlords.

Of the total damage and loss in this sector amounting to 33.42 million euros, one third was caused in the municipality of Durres. Government buildings and community infrastructure were particularly affected. Damage was done to the two river embankments, a dam, 42 municipal buildings, a prison and 33 office buildings. Total losses of all subsectors amount to 3.01 million euros.

 

Business Sector

 

In the business and employment sector, 714 businesses (8 percent of total businesses) were damaged and, as a result, their activities were also affected. A total of 438 employees from 56 official manufacturing businesses temporarily lost their jobs, in addition to 79 employees from 124 official businesses in the trade industry. The estimated revenue loss is 1.93 million euros. As regards the tourism sub-sector, damage was caused to 18 public and private accommodation facilities in Durres, and 42 food and beverage facilities, again mainly in Durres. While in terms of the Cultural Heritage sub-sector, two national museums and three local museums were classified as unsafe and are still closed to the public, while 23 additional monuments and sites were classified as high risk buildings and 30 other monuments as medium risk buildings. Damages in the agriculture sub-sector were minor and related to inputs and agricultural equipment. 

 

Tirana Times
By Tirana Times February 6, 2020 11:52