World Bank to implement project for the Albanian Business Environment

WASHINGTON D.C, Oct. 27- The World Bank approved last week on Thursday the Business Environment Reform and Institutional Strengthening Project (BERIS) for Albania. The new project will cost a total US$9.3 million and it is financed by a Credit and a Loan, blending resources for an amount of US$3.7 million and US$5.6 million respectively, marking the first ever IBRD loan for Albania. The Albanian government will also contribute with a symbolic fund of $500.000. The project targets the Government’s efforts to strengthen the public sector’s capacity to improve the business environment to attract investments and foster exports. Among the multiple barriers that negatively affect the business environment and the prospects for sustained economic growth in Albania, unfair competition and practices, non-supportive regulatory practices, and bureaucratic and administrative barriers are the most significant ones. The trade deficit continues to widen due to the low level of exports. Albania’s long-term economic growth is unsustainable without a business environment conducive to export-led private sector growth. The BERIS Project aims to address these challenges by supporting improvements in the business environment. Silvia Minotti, head of the World Bank team designing the project said that “This operation will assist the government to facilitate business entry and operations in the formal economy and to strengthen the enterprise sector’s capability to increase exports towards the region and the EU.” The project will facilitate business entry and operations by improving the quality of business regulations, including their potential impact on market competition and strengthen the enterprise sector’s capability to export to regional and EU markets. The last objective will be accomplished by developing further the Metrology, Standards, Testing and Quality (MSTQ) system. It is expected to reduce the costs, the amount of time, and the number of steps necessary for businesses to comply with regulations affecting business entry and operations. The World Bank has committed $855 million for 61 operations to Albania. The latter joined the WB in 1991.