TIRANA, Sept. 26 – The IMF Mission has expressed positive remarks over the contested project on the Durres-Kukes road. The IMF has also declared that the expected economic growth of Albania will remain at six percent, despite the energy crisis and the associated price increases. The new Director of the Mission in Albania, Gerwin Bell, has explained that the inflationary trends are caused by external factors. The energy crisis and the industrial products decrease have been partially countered by the high performance of the exports and tourism industries. “The credibility of the central bank should help in keeping inflation under control,” Bell concluded.
Regarding KESH, the tones of criticism towards the Albanian Electroenergy Corporation has been more aggressive. The IMF has judged that the energy crisis has become a huge financial problem that puts at major risks the budget of next year. IMF has expressed fear that the funds allocated to KESH to solve the crisis will harm other projects of public investments. The IMF has been direct in its accusations towards the company. Bell said that things have deteriorated not only due to the extended draught but also due to the poor performance of KESH, which has been unable to meet some set goals. In order to avoid problems for next year’s budget, KESH should do more to increase the energy price and better manage its revenues and losses, Bell explained.
Bojaxhi reacts
The declarations of the IMF over the energy crisis and the role of KESH in the crisis have not been welcomed by KESH Director Gjergji Bojaxhi who has said these assertions are not true. “KESH has surpassed its expectations about managing losses, all revenues have increased and this goes beyond what we had predicted in the beginning of the year,” Bojaxhi said. He added that the concern of IMF are raised by the revenues from the aqueducts and the change in power rationing schemes. “The IMF perceives the situation differently, looking only at the numbers and not being very considerate towards Albanian consumers,” Bojaxhi said. The suggestion of the IMF to increase energy prices has another side effect on the Albanian economy, the KESH head explained, hence should be carefully considered before acting upon it. KESH data reveal that the number of households that have problems paying has been halved while the indicator of regular customers has reached 84 percent.
Support for Durr쳭Kuk쳠
The IMF has also commented on the most controversial debate that is surrounding the project along the Durres-Kukes road, the largest public investment ever carried out in the country. Bell has expressed support for the continuation of the road. Three years ago, when then-Prime Minister Fatos Nano launched his electric train project, the IMF opposed the plan explaining that an investment of 80 million euro, out of which 50 million would have to be financed by commercial loans, was unaffordable for the Albanian government. The attitude of the IMF has shifted completely on the issue of the Durres-Kukes road, whose investment value is tenfold, around 700 million euro out of which 230 million have already been borrowed in the market at rates of 5 percent.
