TIRANA, May 8 – Albania offers Italian investors great opportunities in renewable energy, mining and tourism, said Prime Minister Sali Berisha at a joint Albanian-Italian economic forum held in Rome this week.
“Albania will become a developed country and an EU member first of all with the participation of Italian investors. I invite Italian investors that before considering China or India they should take a look at the small neighbouring country which offers plenty of opportunities and advantages,” said Berisha. He promised Italian investors tax-free opportunities for up to 8 years in return for investments in mountain areas.
“With 400 Italian or Italian-Albanian companies operating in Albania, Italy is the country’s leading investor in terms of number of operators, and the second for the value of our investments,” said Italian Foreign Minister Giulio Terzi at the joint forum “Albania in Europe: New opportunities for economic and industrial cooperation for Italian businesses”.
Economic collaboration has also benefited from the greater movement of individuals between Albania and the European Union as a result of the visa liberalisation that entered into force in December 2010, added Terzi
Minister Terzi pointed out that “the Italian government has every confidence in the future of Albania and intends to go on supporting the country in its pathway to economic and social modernisation”. It is no coincidence, he said, that “in the last 20 years Italian Development Cooperation has devoted over 540 million euros to Albania in the form of donations and credits. The Memorandum signed in 2010 envisages a further 51 million euros, and a debt conversion agreement. This is the first agreement of this kind that Albania has signed with a donor country.”
Giovanni Firera, the Honorary President of Albania’s Konfindustria in Italy said during a recent visit to Albania some 30 Italian investors have expressed their interest to invest in Albania after the turmoil in their North Africa traditional partners.
Government officials 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 export, 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.
Energy permit procedures cut
In another meeting in Tirana, Prime Minister Sali Berisha pledged government would cut procedures to obtain an energy permit from 22 to 12. Albanian investors complained about inability to connect to the main grid after the completion of the hydro power plants and their availability for use.
Failure to get paid by cash-strapped state-owned power corporation KESH is another issue private investors raised.
Prime Minister Berisha said government was drafting a law which will enable public entities to give a priority to the construction of transmission line in the most problematic areas.
An annual report published by the country’s Energy Regulatory Entity (ERE) shows six new HPPs, with installed capacity of 17.25 MW were made operational in 2011. ERE data show power generated from the 58 HPPs managed by 26 concession companies dropped by 14 percent to 136.8 GWh because of the unfavourable hydro situation, accounting for only 2 percent of total domestic production.
The companies’ revenues also dropped by 10 percent to 1 billion lek (Euro 7 million).
