Annual progress report 2015 albanian contribution – input I september 2014 – may 2015 table of contents
Download 3.84 Mb.
|
- Navigate this page:
- Table: Albanian exports according to commodity groups in 2014 compared to 2013
- 20.2 Privatisation and restructuring
- 20.3 Business environment
- CHAPTER 21: TRANS-EUROPEAN NETWORKS Key achievements
- 21.1 Trans-European Transport Networks
- 21.2 Trans-European Energy Networks
- CHAPTER 22: REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS Key achievements
Key achievements The draft Strategy on the Development of the Non-Food Industries is being prepared. Albanian exports of non-food industrial products increased in 2014. The draft law on Tourism was submitted to the Parliament for adoption. The Strategy for Business Development and Investment 2014 – 2020 and the National Action Plan for the Implementation of SEE 2020 were approved. The National Investment Council was set up as a consultative body between the Government, business and donors. The Law on Public Notification was adopted aiming to guarantee and improve the public consultation process on new legislation. Support to SMEs was further consolidated. Two new schemes supporting Start-up businesses and women entrepreneurs were approved. 20.1 Industrial policy The draft Strategy on the Development of the Non-food Industries 2014 – 2020 is being prepared and scheduled to be approved in July 2015. Regarding industrial policies, in 2014, the following activities were carried out: (i) a joint work group of the Ministry of Energy and Industry and the Ministry of Economic Development, Tourism, Trade and Entrepreneurship monitored the implementation of concessionary contracts, identifying the specific issues for each of the monitored industrial parks, (ii) the non-performing concessionary contracts were identified and will be repudiated, (iii) three industrial parks (Spitalla and Rashbulli in Durrësi and Vlora in Vlora) were selected to continue their activity. The current status of the three abovementioned industrial parks is as follows:
In March 2015, terms of reference (ToRs) were defined for three technical and economic feasibility studies: for the processing of quartz and quartz sands, silicate nickel and for the leather-footwear industry. In agreement and with the support of the Ministry of Economic Development, Tourism, Trade and Entrepreneurship and Albanian Investment Development Agency (AIDA), these three studies will start in 2015. The studies will be carried out respectively by the Institute for Mineral Concentration, Faculty of Geology and Mining, Institute of Metallurgy and Materials Technology and Institute of Textile, Faculty of Mechanical Engineering, in cooperation with the National Agency for Natural Resources and Albanian Geological Survey (AGS). These studies will serve as a guide for the development of incentive policies aiming to increase the level of domestic processing of natural resources and assets, to maximise value, increase exports and contribute to GDP and employment growth. Albanian exports of non-food industrial products increased in 2014 compared to 2013, as shown in the table below. Table: Albanian exports according to commodity groups in 2014 compared to 2013 In million ALL
Source: INSTAT The draft law “On Tourism” was endorsed by the Council of Ministers and submitted to the Albanian parliament for adoption. The draft law reflects the inputs of all stakeholders and other governmental bodies. The draft law takes into account the recommendations of the UNWTO, World Bank and is harmonised with the draft law “On Strategic investments”. The draft Tourism Development Strategy and Action Plan 2015 – 2020 is submitted to Council of Ministers for approval. The draft Strategy reflects the suggestions and recommendations of line ministries and stakeholders. 20.2 Privatisation and restructuring Several amendments to the legal framework for the privatization of INSIG and companies in non-strategic sectors and their assets were adopted by the Parliament and the Government. Amendments to the legal framework paving the way for the privatization of INSIG S.A.as:
An ad hoc working group was set up to identify and prepare the procedures for the privatisation of INSIG S.A. The working group is chaired by the Deputy Minister of Economic Development, including representatives from the Ministry of Economic Development, Tourism, Trade and Entrepreneurship, Ministry of Finance and INSIG S.A. The privatisation procedures were further improved through the approval of the following legal acts:
Concerning privatisation, the following activities are carried out:
The privatisation policy of small and medium enterprises in the non-strategic sector with 100% state capital was revised in September – December 2014. Two companies that had a poor economic and financial performance were put into liquidation. Seven other companies were merged and restructured. Unused assets of other companies with poor performance were made available to foreign and domestic investors to be leased for 1 Euro. By the end of 2014, there were signed 9 leases for 1 Euro, according to Decision of Council of Minster No 54 of 5.02.2014 “On defining the criteria, procedures and method to provide under lease, emphyteutic lease or other contracts state properties”. These companies foresee to invest around 3.5 million Euro and employ 1,162 employees in 2015. Two packages of state assets are prepared for privatisation. The detailed information on these assets is put at the website of the Ministry of Economic Development, Tourism, Trade and Entrepreneurship: www.ekonomia.gov.al, aiming to increase transparency. The privatisation documents were prepared for the sale of 40 public assets. The sale procedures were initiated for 12 assets in the first quarter of 2015. Three of these assets were sold for a total value of 148,000 Euro. Sale of assets is carried out through public auctions, providing to the former owners of the land the right of first purchase. The Ministry of Energy and Industry manages 15 obsolete industrial enterprises. Their assets are being privatised or rented to private companies. From the renting of these assets, the state collected in 2014 around 8 million ALL. The privatisation of assets will continue based on the requests from the private businesses. 20.3 Business environment The improvement of the business climate remains a core priority of the Albanian government. The Strategy for Business Development and Investment 2014 – 2020 was approved by the Council of Ministers with its Decision No 635 of 1.10.2014, laying down the main policy objectives for business development for 2014 – 2020, mirroring the EU 2020 Strategy. In addition, the National Action Plan for the Implementation of SEE 2020 was approved with the Decision of Council of Ministers No 611 of 17.09.2014. Following the Doing Business reform, the National Action Plan for the Improvement of Doing Business Indicators was approved by Decision of Council of Ministers No 591 of 10.09.2014. The National Action Plan was prepared with the assistance of the International Financial Corporation (IFC) and in close consultation with representatives of the private sector. A detailed report on measures related to Doing Business indicators taken by the Albanian Government during the period 1 June 2014 – 31 May 2015 is being prepared. Agreement between Albania and EU on participation in the COSME programme was approved in principle by the Council of Ministers with its Decision No 781 of 19.11.2014 and signed on 3 March 2015 in Brussels. Albania has already appointed its representative in the COSME Steering Committee. Albania expressed its interest to participate in the Enterprise Europe Network (EEN), 2nd call. The proposal was selected in April 2015. The agreement between EEN and Albania is scheduled to be signed in June 2015. The National Economic Council, established under the Law 57/2014 of 5.06.2014 “On the set up and functioning of the National Economic Council”, as a single advice/ consultation structure/ forum of consultation between the Government, national and foreign owned companies, financial organisations and academia, has held so far 11 meetings. Many reform and policies affecting economic development of the country were examined in these meetings such as the Memorandum of Understanding between the Ministry of Energy and Industry and the Albanian Renewable Energy Association. Aiming to further improve the business climate and facilitate the dialogue between the government, the businesses and donors, the Decision of Council of Ministers No 294 of 8.04.2015 “On the set up of Investment Council” was approved. The Investment Council aims to improve the constructive dialogue between the government and businesses for the development of the private initiatives, increase of investments, identify the obstacles to businesses, design corrective measures, increase investments, introduce the best practices, discuss new legal acts and policy documents, etc. The Investments Council will be chaired by the Minister responsible for economy and will include representatives from the EBRD, EU Delegation, WB/IFC, three companies and three business associations. The launching meeting of the Investment Council was held on 15 April 2015. Increase of transparency on new legislation and prior consultation with private sector, to ensure stakeholders representation, remains among the core initiatives to improve business environment. To this end, the Law No 146/2014 of 30/10.2014 “On Public Notification”, was adopted and it will be implemented from 30 April 2015. The Law stipulates the mandatory consultation of any new legal draft, providing for a 20 work days consultation period. Any public institution proposing a new legal act must publish it in its respective official website to ensure consultation with stakeholders. In addition, the establishment of a single public website for public consultations is in progress. Further progress was achieved in the area of business inspection. The Central Inspectorate in cooperation with the State Health Inspectorate, the Environment Inspectorate and the National Food Authority, completed the standardisation of all the inspection documents. The standard inspection documents for the State Health Inspectorate are fully implemented in the e-Inspection portal. Part of the inspection documents of the State Environment Inspectorate and National Food Authority are under implementation. The portal in perspective will be used for all inspection procedures. Pursuant to Law No 10433 of 16.06.2011 “On the inspection in the Republic of Albania”, the Central Inspectorate, with Orders of the Chief Inspector No 5, 6 and 7 of 19.02.2015 approved the General Basic Regulations on the Risk Assessment Methodology. In the area of business registration, e-registration is now in place. To this purpose, the Law No 8/2015 of 19.02.2015 “On some amendments and addenda to Law No 9723 of 3.05.2007 “On National Registration Centre” was approved, partially approximating the Directive 2009/101/EC of the European Parliament and of the Council of 16 September 2009 on coordination of safeguards which, for the protection of the interests of members and third parties, are required by Member States of companies within the meaning of the second paragraph of Article 48 of the Treaty, with a view to making such safeguards equivalent. The amendments provide (i) full application of e-registration practice, (ii) online notifications of balance sheets, and other documents included in the Commercial Register. The reform to reduce administrative and regulatory burden for business has progressed. The review of authorisations is completed as the first step in the Deregulation Reform launched by the Government. The working group has finalised the screening of all authorisations issued in Republic of Albania by ministries and the final report is prepared. The first step was finalised with the adoption of Law No 6/2015 of 12.02.2015 “On some amendments and addenda to Law No 10081 of 23.02.2009 “On licences, authorisations and permits in the Republic of Albania”, was adopted. The implementing regulations are at the preparation phase. The merging of National Registration Centre and National Licensing Centre is progressing. The draft law on their merging is finalised and the consultation process with stakeholders already started. Merging of registration and licensing process providing one single window will improve the quality of services and reduce administrative cost for businesses. 20.4 SME policy The policy followed by Albania to support SME-s has a sectoral approach. Facilitation of procedures and removal of unnecessary requirements is part of the legal amendments introduced in 2014 and in the first quarter of 2015. The self-assessment process for Small Business Act is finalised and validation of the assessment is due by 5 May 2015. Fason Package The inward processing industry package (fason package) is generating sustainable results by increasing production and employment. To date, the impact of the package shows: (i) from 32 measures, 27 are being implemented, (ii) exports are increased from 495 million Euro in 2013 to 614 million Euro, exceeding the projected target with an increase of 24% in 2014, (iii) for 2014, the number of unemployed beneficiaries included in the employment promotion programs increased around five times compared to 2013. The fason desk established at AIDA responds to the needs of inward processing entities. The database of the fason companies reached at 410 companies, easing as such the communication with companies on permanent basis. Plastics industry package Based on the experience gained supporting inward processing sector, and upon the proposals of the plastics industry, in January 2015, the Government prepared a package of measures to support the plastics industry. These measures ease the administrative procedures and improve services to this sector, aiming to increase production, employment and exports. 20 measures will be implemented in 2015. Access to finance The credit scheme for SMEs in the framework of the Italian - Albanian is being smoothly implemented. In September 2014 – March 2015, five projects initiated by Albanian SMEs were supported in the following sectors: dairy processing, agribusiness, manufacturing of aluminium, wood processing and motor vehicles services. In total, the support for these projects is 1,107,000 Euro. SMEs operating outside Tirana - Durrësi are favoured, taking about 80% of the financing of these projects, while SMEs registered in Tirana and Durrësi benefited only 20% of the funds. Competitiveness Fund The Decision of Council of Ministers No 754 of 12.11.2014 “On some amendments to Decision of Council of Ministers No 419 of 15.05.2013 “On the set up of the Albanian Competitiveness Fund”, as amended, was approved. The Competitiveness Fund will provide financial assistance to micro, small and medium enterprises up to 1,400,000 ALL (approximately 10,000 Euro), but no more than 70% acceptable costs. According to this Decision, the Fund will be implemented in 2013 – 2015, with 20,000,000 ALL (143,000 Euro) in 2013, 26,000,000 ALL (186,000 Euro) in 2014 and 28,000,000 ALL (200,000 Euro) in 2015. The Fund for 2014 was increased from 20,000,000 ALL to 26,000,000 ALL. In September 2014 – May 2015, 18 applications were approved valued at 18,696,879 ALL (approximately 133,741 Euro). Creative Economy Ten applications were approved from September 2014 – May 2015, valued at 4,728,400 ALL (approximately 33,823 Euro). Innovation Fund Ten applications were approved in September 2014 – May 2015 valued at 3,770,570 ALL (approximately 26,972 Euro). Women Entrepreneurship Fund The Women Entrepreneurship Fund was established by the Decision of Council of Ministers No 592 of 10.09.2014 “On establishing the fund of support to businesswomen”. The Fund aims to ease business entry and support businesses set up and run by women. The fund will be implemented for four years, with a total value of 26,500,000 ALL (190,000 Euro). So far no project is approved. Start-up Fund The Start-up Fund was established by the Decision of Council of Ministers No 593 of 10.09.2014 “On establishing the Fund to support new start-up enterprises”. The Fund aims to provide grants to newly set up businesses. The fund will be implemented for four years, with a total amount of 25 million ALL (178,000 Euro), but so far there is no project approved. CHAPTER 21: TRANS-EUROPEAN NETWORKS Key achievements Albania has actively participated in the Berlin process and the preparation of the Transport Core Network of the Western Balkans. Projects included in the SEETO Comprehensive Network are under implementation. Port infrastructure is being improved partially funded by the Albanian government. Albania is guaranteeing the smooth and timely implementation of the TAP project. Albania is cooperating with Croatia and Montenegro in exploring the possibilities for the realisation of the IAP project. 21.1 Trans-European Transport Networks Albanian has actively participated in the Berlin Process. At the Meeting of the Prime Ministers of WB6 held in Brussels, on 21 April 2015, the Core Network of the Western Balkan, to be included in the TEN–T, was approved. In the Albanian territory, the Core Network was agreed to include the followings:
Corridor VIII railway will be considered in the next review of TEN-T in 2023. For further information on Albania’s participation in the Connectivity agenda, please see the information submitted to the meeting of the Stabilisation and Association Committee, held in Brussels on 20 March 2015. The following roads, parts of the South East Europe Transport Observatory (SEETO) Comprehensive Network, are under construction:
The improvement/ rehabilitation of the border crossing points Saranda – Qafë Botë (connecting Albania to Greece) and Bajram Curri – Qafë Morinë (connecting Albania to Kosovo) is completed. The improvement of the border crossing points such at Leskoviku – 3 Urat (connecting Albania to Greece), Hoti – Vermoshi (connecting Albania to Montenegro) is being carried out. The construction of Arbri Road will be a major link to northern FYROM as well. The project is financed partially under the state budget and partially through a concession granted to a private company. For further information on Arbri Road, please see Chapter 14: Transport policy, Subchapter 4.14.1.1. Road transport. The rehabilitation and expansion of port infrastructure and superstructure (the ports of Durrësi and Vlora) is being carried out in order to increase capacity and standards of operation, service effectiveness and tourism development. The first multimodal terminal in Albania at the port of Durrësi is operational. Based on the Albanian National Transport Plan, for the development of ports, roads within the port area are rehabilitated. The access to the port, directly from the Tirana – Durrësi motorway, is operational. The main developments in the Albanian ports are as follows:
Regarding the railway sector, the rehabilitation of the sector is intended, initially through some internal measures, aiming to increase the transport volumes, mainly from the Port of Durrësi railway connection. Albania aims to improve the railway links with its neighbours (such as FYROM and Montenegro), improve Tirana – Rinasi – Durrësi, etc. In the framework of SEETO cooperation both railway links between Albania and FYROM and Albania and Montenegro are included in the Multi Annual Plan 2015 (MAP 2015). With the support of the EBRD, a Consultancy Contract was signed on 15 April 2015 for the Detailed Design of Railway Line Durrësi – Tirana Public Transport Terminal (PTT), of the new railway connection to Mother Teresa International Airport (TIA) and Financial/Economic Appraisal of the entire Albanian Railway Network. The contract is scheduled to be completed by February 2016. 21.2 Trans-European Energy Networks Concerning the construction of the Trans-Adriatic Pipeline, the State Aid Commission approved its Decision No 49 of 29.09.2014 “Authorisation of the state aid for the implementation of the Trans-Adriatic Pipeline project, based on the Law No 116/2013 of 15.04.2013 ‘On the ratification of the host country agreement between the Council of Ministers, and the Trans Adriatic Pipeline AG, on the Trans Adriatic Pipeline project (TAP project), and the agreement between the Republic of Albania represented by the Council of Ministers, and the Trans Adriatic Pipeline AG, on the Trans Adriatic gas Pipeline (TAP project)”. After approval of the Authorisation of the State Aid Clearance by this Decision of the State Aid Commission and its confirmation by the company TAP AG on 11 November 2014, this date was declared as the date of “entry into the force” of the Host Governmental Agreement (HGA) between TAP AG and the Albanian Government. The Albanian Power Regulator adopted its Decision No 135 of 24.12.2014 “On the examination and approval of “Energy Regulator’s Joint Opinion on TAP AG’s Request for a Prolongation of the Validity Period of Exemption Decision”. Approval of the Compound Development Permit for the TAP project by the National Council of Territory was followed by the approval of:
Based on the provisions of the Law No 107/2014 of 7.31.2014 “On territory planning and regulation”, the Temporary Commission of Ministry of Energy and Industry, set up upon the Order of Minister of Energy and Industry No 317/1 of 20.10.2014 “On the composition of the temporary commission to examine the applications to obtain construction permits for facilities in the field of energy, mining, industrial and high-risk facilities”, started on 12.03.2015, the examination and evaluation of TAP AG’s applications for the Compound Development Permit, for the construction of 17 access road, two new bridges and rehabilitation of 52 existing bridges. This process will be completed within May 2015. Concerning the Ionian Adriatic Pipeline project (IAP project) based on the Feasibility Study completed in April 2014, the final route of IPA in the Albanian territory was identified. Regarding the transition route from Albania to Montenegro, it was concluded to choose the ‘coastal’ option, i.e. in the route between Shkodra Lake and the Adriatic coast. In 2015, all the parties involved on the Ionian Adriatic Pipeline project (IAP project) agreed to continue the cooperation, mainly based on the participation and the contribution of the national gas companies. A meeting of representatives of ministries and gas companies of Croatia, Montenegro and Albania was held on 22 April 2015 in Slano, Croatia, upon the initiative of the Croatian gas transmission company “PLINACRO”. The meeting focused on analysing the situation and expected developments of the Ionian Adriatic Pipeline project (IAP Project):
At this meeting, the Albanian part proposed the set up of a Permanent Operational Unit to coordinate all coming activities and technical operations. This will put the project in a normal development path, beyond the political level meetings. The representatives of Montenegro and Croatia agreed in principle. It will be necessary to determine the organising site and costs that will be borne by the TSO-s of the three countries. The Albanian side committed itself to inform the other parties on the latest developments of the TAP project, conditions and terms of its realisation. Information will include the practices followed for TAP from the beginning until now, and all the steps taken for this project at the political level, as well as for its implementation. In order to further institutionalise the cooperation, in May 2015, the Albanian part will organise a meeting in Tirana, or in Montenegro, between the representatives of the IAP and TAP projects. The meeting will focus on the coordination of efforts between the two projects related to capacity, as well as models and forms of cooperation. CHAPTER 22: REGIONAL POLICY AND COORDINATION OF STRUCTURAL INSTRUMENTS Key achievements During the reported period, the PM’s office focused on drafting NSDI 2015-2020 as well as on implementing Phase II of 2015-2017 PBA. The new concept of Regional Management in Albania was introduced to the Council of Ministers in January 2015, focusing on investment management. IPA 2014 will start its implementation of the actions after signing the Financing Agreement (EC - Albanian Government). Regarding, IPA 2015 and IPA 2016 program are in process of preparation and the priorities are set. With reference to decentralized management for IPA 2013 Programme, the Financing Agreement between the Government of Albania and EC has been signed on November 2014. In the 13th Round of WBIF, Albania submitted for approval two applications in the transport sector. Furthermore, to strengthen the capacities of the Albanian administration to manage IPA funds, a restructuring of resources has taken place in MIE, adopted by the PM Order on February 2015. The CBC programs continued its work for the preparation of programming of the new CBC Programmes under IPA 2014-2020. In September 2014 is implemented Phase II of 2015-2017 PBA hearings with institutions and ministries, organized by the Ministry of Finance in cooperation with the Council of Ministers, Ministry of Economic Development, Tourism, Trade and Enterprise and the Ministry of European Integration. During these negotiations, the Strategic Planning and Programme Development Unit has submitted the relevant comments in relation to compliance with financial requirements, presented in the context of financing Term Budget (PBA) from 2015 to 2017, with the Government Programme, the priorities defined in sectorial strategies and crosscutting, and the National Plan for European Integration. Also during this period, in the context of drafting the NSDI 2015-2020:
|