TIRANA, July 18 – A UK-based company is planning to invest a staggering $5 billion on the construction of a new port, a regasification terminal and a thermal power plant in a special economic zone in central Albania, rivaling the country’s biggest port of Durres and an already operational oil and gas terminal outside the country’s second largest city.
The Albanian government says it is negotiating with UK-based Star Bridge Port Developments Limited over the construction and operation of a container port in Karpen village of Kavaja, some 17 km from the country’s biggest port of Durres and 60 km from Tirana. The company’s unsolicited bid has already been submitted to Parliament with the government offering the company special expedited procedures under a strategic investment law.
The government says the proposed port at Karpen will allow handling of large commercial ships which cannot anchor at Durres port and serve investors both in Albania and landlocked regional countries.
The port expected to complete in 5 to 6 years and will be situated in a special economic zone of 1,700 hectares which also includes logistics facilities.
Developers say local residents could be offered the construction of a new modern greenhouse to increase their agriculture earnings or compensation at market prices for their expropriated lands.
Some 220 structures of buildings, farms are affected by the project.
“The proposal brought forward is a strategic investment, the first of these dimensions in Albania, offers a unique development opportunity for the area where it expected to be implemented but also for the whole Balkan region,” says the government in the draft law.
“This is a crucial project for the Albanian economy. In addition to serving as a catalyst for economic growth, the level of investment is such that it will have an obvious impact on the Albanian economy. Only the construction stage, will bring annual investment equal to 57 percent of the annual GDP and 6,200 jobs,” adds the government.
The contract negotiation process will be carried out by a commission headed by government experts while a foreign consultant will be hired to conduct legal and financial due diligence.
Economy Minister Milva Ekonomi has described the bidder as a serious investor engaged in key port constructions around the world and believes their initiative in Albania will be a success story.
The minister says the company is working on its expropriation plan and first construction works are expected by 2018.
UK-based Star Bridge Port Developments Limited and its affiliates say they have has completed high-profile port projects across the globe with its maritime projects including a vast range of developments in container liquid and dry bulk terminals, waterfront developments, cruise and ferry terminals, recreational marinas and military installations. High-profile projects include Hamad Port in Qatar, the London Gateway and Denmark’s Skagen port.
If finalized the project would prove a great boost for the ailing Albanian economy and the slowdown in foreign investment affected by a sharp cut in international commodity prices affecting local oil and mining investment.
The current two biggest foreign investments under construction in Albania include the Trans Adriatic Pipeline bringing Caspian gas to Europe and a major hydropower plant by Norway’s Statkraft.
Several concession initiatives under the “Albania 1 Euro” initiative offering investors free land for up to 99 years in return for investment and job creation have failed to attract foreign investors, including the Spitalla industrial park outside Durres.
In late 2015, the Albanian government awarded a new 35-year concession to a consortium to build and operate a multy buoy mooring that will handle tankers transporting fuel of more than 20,000 tonnes in Porto Romano, outside Durres, where a smaller oil and gas terminal already operates.
The consortium led by Singapore-based Adriatik Petroleum Platform PTE LTD” and composed of Italy-based “ATEC S.r.l” , Netherlands-based “Mampey Offshore Industries B.v” and Albania-based “Salillari” will build an off-shore port which is expected to increase the handling of fuel imports and exports to 1 million tonnes a year.
Back in 2015, foreign investors were offered simplified and accelerated procedures for strategic investments in energy, mining, transport, telecommunication, infrastructure, urban waste, tourism, agriculture and fishing and special economic zones. The law which extends its effects until December 2018 is a temporary measure targeting to attract foreign direct investment and know-how in strategic sectors by lifting barriers such as red-tape and lack of transparency which have prevented FDI inflows in key sectors.
