Albania
Infrastructure
As of May 2003, EUR 402 mln were allocated for infrastructure projects in Albania.
Roads / Highways
Many roads in Albania need complete re-construction. In Albania the roads are either newly rehabilitated or badly in need of complete reconstruction because the traditional pavement is penetrated macadam which is not able to resist present and future axle loads. The major project, according to the Transport Infrastructure Regional Study (TIRS-2002), is the upgrade of Shkoder– Pristina link amounting to EUR 250 mln. The objective is to upgrade the existing sub-standard carriageway (single lane in places) to a modern 2-lane highway and to provide a strategic link between the border with Kosovo at Morine and the Adriatic Port of Durres. Another significant project is the upgrade of the final link of the East – West Highway between Qafe Thanes and Pogradec that should connect Qafe Thanes and the eastern end of Corridor VIII with the southern sections of the East – West Highway through to the border with Greece at Kapshtice. Under the Regional Balkan Infrastructure Study (REBIS), the major ongoing project for 2003 concerns the Elbansan-Librazdh road and amounts to EUR 25,6 mln.
In June 2003, the World Bank’s Board of Executive Directors approved a $13 million Supplemental Credit to the Albania Road Maintenance Project (initially supported by a $17 million credit). The Supplemental Credit would be used to help this project implement the investment programme by improving about 1,000 km of the national road network and about 1,000 km of the rural road network. The project has two main components. The road maintenance component includes the maintenance and repair of about 1000 km of national roads and bridges, and maintenance and repair of about 1000 km of rural roads and bridges; capacity building for more effective management of the country's road networks; increasing the funding for road maintenance; and reform of fuel taxation to favor the usage of lead-free gasoline. The traffic safety component includes improvement of roads in black-spot locations; improvement in traffic control; increasing of emergency response in accidents, and strengthening of institutional capacity to monitor and manage road safety activities. The project will be co- financed by the World Bank and the Albanian Government. The credit will be payable in 20 years with a 10 years grace period.
In 2002, the Albanian government began to collect a new tax to fund the reconstruction of its road link with Kosovo-- the 180-km Durres- Kukes- Pristina. While the project was not included in international aid budgets for the next three years, new channels of funding may come about through the Stabilisation and Association Agreement negotiations with the EU.
Rail
Albania's geographical location offers many possibilities for rail connections with its neighbours - Montenegro, Macedonia and Greece, but Albania has relatively small international traffic. In addition its railway systems are in a particularly poor condition and are unable to offer through services within their respective countries at this time. Albanian Railways company is still state- owned. The national transport of goods rose from 19 mln. t/km in 2001 to 21 mln. t/km in 2002, while the passenger traffic fell to 124 mln passengers/km in 2002. The major railway project, according to the TIRS, is the upgrade of Durres- Qafe Thanes- Pogradec rail, aimed to upgrade the rail network in Albania relating to Pan European Corridor VIII. Albania is currently working on re- establishment of links with Montenegro and Macedonia.
Civil aviation
According to Eurocontrol, air traffic in Albania has increased by 9% in 2002 compared to 2001. There are projects, at different stages, concerning the Tirana International Airport which are aimed at improvement of safety and security to meet ICAO standards.
Ports
The principal port of Albania and the Adriatic Gateway for Corridor VIII is Durres. It has been transformed into a state-owned limited liability company. A new law under preparation will allow the government to privatise, through concessions, the port's operations as well as the port's facilities. There are ongoing projects concerning the rehabilitation and modernisation of port of Durres and the improvement of safety of operations in the port. The projects are financed by the European Investment Bank and the World Bank. The Albanian merchant fleet is fully privatised. Another project concerns the improvement of safety and efficiency of operations and processing capacity of Albania’s second principal port of Valora.
Oil
The oil and gas sector in Albania is administratively headed by the newly established (in 2002) Ministry of Industry and Energy (MoIE) and commercially supervised by the Ministry of Economy. Under the MoIE, the National Petroleum Agency (NPA) is the responsible government entity for oil and gas licensing activities in Albania. The Albanian Petroleum Corporation (APC) is the parent to the three companies that manage the oil and gas sector:
• ALBPETROL, responsible for exploration and production;
• ARMO, responsible for refineries (Ballsh, Fier) as well as fuel wholesale and retail activities (based on indigenous resources);
• SERVCOM, supporting Albpetrol in the field of development and drilling affairs.
They are undergoing restructuring with a view to the implementation of the Government policy for the privatisation of the petroleum sector. Following the downward trend in the oil production that reached its peak in 2001, the production levels are far lower than the potential levels.
Internet and mobile communications
Albania has the poorest Internet and mobile communications in Europe. The Internet users in September 2003 are only 10, 000 i.e. 0,3% penetration. These figures, however, indicate a significant 300% growth compared to the Internet penetration levels in 2000. The largest mobile service- provider is Vodafone. As of September 2002, the company had a customer base of 270,000, translating into 40% market share.