ABA in infrastructure projects with private investors

TIRANA, Nov. 26 – The American Bank of Albania and a group of private investors signed a 10 million euro loan, the bank said. The agreement, signed Nov. 20, is a 10 million euro syndicated loan granted to Romano Port sh.a., which has undertaken the construction of a jettyؒomano Portئor the transportation of oil, gas and their products in the coastal area of Porto-Romano, Durres.
Since 2000, there have been some 20 large containers on the eastern side of the Durres port, with a total capacity of 41 million liters, something which is a great threat to the port, as well as the surrounding the area and the city of Durres. The Rira and Intergaz companies have started to build their deposits in Porto Romano, 9 kilometers from Durres, several years ago. They will have capacity of 1,000-10,000 tons each for oil and butane gas. The downloading platform will be some 1.8 kilometers from the shore. There will be a wave breaker 12-16 meters deep and 700 meters long to protect the 1,500 meter pier where ships will dock. The oil and gas terminals will be separate from each other. The infrastructure will make possible the downloading of 6-7,000 tons a day. Ships with 100-160 meters long tankers will be able to dock there. This project represents the first private jetty that will handle the transportation of oil, gas and other such products in Albania. Total investment for the construction of the jetty reached 16 million euros, of which 63 percent, or 10 million euro of the total amount, was syndicated by three banks, while the rest was financed by Romano Port sh.a. itself. The 10 million euro syndicated loan was made possible through the participation of the American Bank of Albania, Emporiki Bank – Albania and Tirana Bank. The American Bank of Albania acted as lead bank both in regards to negotiations and participation in the syndicated loan. The loan was granted for a 12-year term. This investment is set to replace the port of Durres and Lezha for the transportation of oil and its products. The importance of this project lies in the fact that it represents one of the largest private industrial investments in this sector. Growing interest on the part of private businesses led Romano Port sh.a. to acquire the license for the construction of this jetty with private funds. After the signing of the Concessionary Agreement by the government of the Republic of Albania and its ratification by the Albanian Parliament under Law no. 9298, dated 28.10.2004, Romano Port sh.a. received the KRRTRSH license for its construction. Work started immediately and is now over 50 percent complete. Meanwhile, unloading of the first ship is projected to happen in the summer of 2007. Upon the start of operations, all existing oil and gas deposits are expected to move near the new jetty within a 12 to 24 month period. The agreement was signed by representatives of the concessionary company Romano Port sh.a. and representatives from the three participating banks: American Bank of Albania, represented by Lorenzo Roncari, the President & CEO; Emporiki Bank – Albania, represented by George Caracostas, the General Executive Director; and Tirana Bank, represented by Bedri Collaku, the Credit Division Director, as well as Artan Dulaku, Piro Bare and companies Inter-Gaz sh.a, Alba – Oil sh.a and Edil Al-It sh.p.k. The agreement was signed on the premises of the American Bank of Albania. The placement and functioning of the jetty will be in accordance with the recommendations of the World Bank Group and the IMF, which advocate the construction of oil and gas transportation jetties in well-designated industrial zones.