Albania, Italy discuss TAP, energy projects

TIRANA, Jan. 22 – The Trans Adriatic Pipeline (TAP) and other energy projects were the focus of a meeting between Albania’s Economy Minister Edmond Haxhinasto and Italian Ambassador to Tirana Massimo Gaiani this week. The ministry says Albania, Italy and Greece are expected to sign an inter-government agreement on TAP next February after reconfirming political support to the pipeline bringing Caspian gas to Europe in an earlier deal few months ago.
TAP, which also includes Albania in its route, is competing with Nabucco West which passes Bulgaria, Romania, Hungary to end up in Austria. Azerbaijan’s Shah Deniz II consortium is expected to decide on the winning project to transport Caspian gas to Western Europe by this year.
The construction of interconnection lines which would serve both countries to exchange energy was described of special importance.
Renewable energy, mining and tourism are some of the sectors Italian investors travelling to Albania are offered as priority sectors during meetings with Albanian officials.
Government officials say Albania offers investment opportunities not only because of the flexibility of its labour market and one of the world’s lowest fiscal regimes, but also because of the tangible assistance to domestic and foreign investors.
Italy is Albania’s top trade partner with 50 percent of total exports and 30 percent of imports. More than 80 percent of footwear and garment products manufactured in Albania, which are the country’s main exports, go to Italy. According to Italy’s Confindustria lobby group, some 300 Italian companies operate in Albania, mainly in the footwear and garment manufacturing.
Italy is the second biggest foreign direct investor in Albania with 401 million Euros of FDI until the end of 2010. FDI inflows from Italy have been on a rising trend climbing from Euro 213 million in 2007 to Euro 401 million in 2010, according to Bank of Albania data.