TIRANA, June 12- Foreign investments in our country amounted to 286 million euros in the first quarter of this year, marking a slight increase of 2 percent compared to the same period last year, according to the statistics of the Bank of Albania. Compared to the last quarter of 2018, foreign investments were 8.3 percent higher, as the Trans Adriatic Pipeline (TAP) pipeline works continued intensity.
According to the Bank of Albania, the inflow of foreign direct investment (FDI) in the form of capital expansion is estimated at 266 million euros, and was mainly focused on the energy sector which amounted to 49 percent, hydrocarbons with 18 percent, and financial intermediation to 8 percent. The foreign direct investment reached a record level of 1 billion euros in 2018, an increase of about 13 percent compared to a year ago, recording a record high.
For about four years, FDIs have remained at high levels due to two major energy projects, the hydropower works on the Devoll River by Statkraft and the TAP. Other Bank of Albania statistics show that the stock of energy investments grew rapidly, from just 13 million euros in early 2014 to 2 billion euros at the end of 2018, accounting for 27 percent of the direct investment stock and passing on first, as a result of telecommunications stagnation and banks.
These investments however, are coming to an end. TAP which was the largest investment ever carried out in Albania, is almost finished. According to sources from the company, the cleaning of the pipeline route and the welding of the pipes have entirely finished in Albania. More than 200 kilometers of pipeline is already underground. The Compressor Station in Fier and the Meter in Devoll will be finished in the fall. The works in the maritime section are continuing at the point of exit. The focus is on the operational part, such as the upgrading and training of human resources to handle pipeline maintenance, which is being done in cooperation with the joint company Albgaz-Snam.
The pipeline investment in Albania is estimated at around 1.5 billion euros by the company itself. Works started in the summer of 2015 with road infrastructure, but the two most intensive years were in 2017-2018 where it is estimated that more than 500 million euros have been invested annually. For this year it is estimated that some 200 million euro of investments are yet to be done.
The hydropower plants (HPP) that are being built on the Devoll River by the Statkraft company, is at its end. Banja HPP is already operational, while Moglice HPP is progressing rapidly. Official sources from Statkraft said that in 2018 investments were about 86 million euros and in 2019 they are expected to be around 73 million euros. The second HPP is expected to be completed this year. According to official sources Devoll’s total investment is 590 million euros.
From 2.1 billion euros which was the total planned investment of these two major projects, less than 300 million euros remain to be invested during 2019, while in 2020 these two sources will be fully exhausted. International institutions have often drawn attention to the need to replace these projects with high value-added and technology-oriented investments.
