TIRANA, Dec. 24 – Gerwin Bell of the International Monetary Fund in Albania said that 2007’s negative effects were characterized by less power supply and less agricultural production.
But Bell also said that the economy was better than a year ago due to e better production in general and some more exports from the mines.
Albania had also an increased inflation in the last few months, or higher than the limit set from the central Bank of Albania but that was kept under control with some steps taken from the bank.
“In general I may say it has been a good year,” he said in an interview to the Voice of America in Albanian.
Bell said that what made Albania special compared to other countries, which have also suffered from a higher inflation, higher agricultural products, is the lack of energy.
The official also said that together with the central bank they were closely following developments with the crediting for new houses, in order not to have the same effect as in the big market of the United States.
Rreshen-Kalimash road project
Bell also spoke on the road projects of Durres-Kukes-Morini segments, and especially that Rreshen-Kalimash one.
He said they were concerned on its cost and the fiscal danger coming out of the contract of that project.
Bell said that the project was contracted in a different way and that “It is not clear how expensive this project will be,” he said.
“More cost in this project will leave unrealized other projects,” he said.
Bell said they were still not clear how much that project would cost.
Energy crisis
The energy crisis may become harsher unless urgent steps are taken, he said. The main thing being the collection of money from the consumers.
He said that only half of what is used is paid compare to 75 percent in other problematic countries in the region, according to Bell.
But even if collection would be good the existing tariff, price would still bring losses, he said, referring to their pressure on increasing the price.
Bell said that this year the Albanian Electro-Energy Corporation, or KESH, has had 20 billion leks of losses and the only way to avoid such a loss is to increase the tariff at least up to the cost level.
Bell said they have been asking the government to speed up efforts to increase the energy price and also to explain to them how they will cover the KESH losses.
That was required ahead of the approval of the fourth part of the deal they have with the Albanian government.
Bell suggested that the energy price should be increased to those who can manage that and the government subsidizes the poor strata.
