Invest in Albania by Hoteleri Turizem Albania

Content Country Profile Economic Trade Integration Why Invest in Albania Investment & Business Climate Basic Economic Indicators Potential Investment Sectors Economic Zones Investors Already Present in Albania

Country Profile General Information

Official Name: Republic of Albania Capital City: Tirana Main Cities: Durrës, Shkodër, Fier, Vlorë, Korçë, Berat, Gjirokaster, Sarande, Elbasan Surface area: 28,748 sq. km Surface area: 28,747 sq. km Length of Coastline: 316 km Ports: Durres, Vlora, Shengjin, Sarnada Currency: Albanian Lek (ALL) Time zone: GMT +1 hour

Location:

South-eastern Europe, bordering the Adriatic Sea and Ionian Sea with Italy, between Greece in the south, Republic of Macedonia in the east and Montenegro and Kosovo to the north

Population 2.821,977 (INSTAT) Literacy rate: 96.8 % (CIA 2011 est) Median Age: 31.2 years (CIA 2013 est) Life expectancy at birth: 77.77 years

Political System

Government: Parliamentary Republic Prime Minister: HE Mr. Edi Rama President: HE Mr.Bujar Nishani

Climate: mild temperate (270-300 sunny days) Natural Resources: petroleum, gas, solar energy,

hydropower, wind energy, bauxite, chromite, copper, iron ore, nickel, salt, timber

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Economic Trade Integration Albania benefits from extensive Free Trade Agreements with: EU, CEFTA, EFTA and Turkey Giving Free Access to over

600 million customers

Albania is a Member of WTO and applies WTO rules on import licensing.

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Why Invest in Albania

1. POTENTIAL GLOBAL TRADE HUB

• Strategically Positioned for Access to Markets in Europe and the Balkan region • Located in the center of natural crossroads of major corridors in Europe • Entry gate with 4 ports, Durres, Vlora, Shengjin, Saranda: * Port of Shengjin is potentially one of the deepest (25 m) in the region and in the Mediterranean Sea.

2. MARKET ORIENTED • The Albanian economy is now completely open and characterized by fully liberalized trade, • The most resilient of South-Eastern European economies • The only economy in the region that did not go through a recession period.

BUSINESS -FRIENDLY ENVIRONMENT WITH CONVINIENT COSTS

• Tax benefits and incentives in investment strategic sectors • Online system for tax filing and payments • The Albanian business legal framework is in compliance with the EU legislation

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4. ONE-STOP-SHOP MODEL • Fast & transparent business licensing, by the National Licensing Centre • Registration of the new business is done 24 hours at no cost.

5. A VARIATY OF INVESTMENT CHOICES • Rewarding opportunities of investments with public - private partnership • Rewarding opportunities of investments in areas with stability and sustainable growing sectors: * Renewable Energy * Mining Industry * Tourism * Agribusiness * Transport & Logistics * Manufacturing * ICT Services

6. FDI LEGAL FRAMEWORK • No prior government authorization is needed and all sectors are open to foreign investors • No limitation or restrictions for foreign companies • No limitation on the percentage share of foreign participation in companies - 100 % foreign ownership is possible • Special state protection of foreign investors by the Albanian state in legal and civil conflict with private third-party • Foreign investors have the right to expatriate all funds and contributions in kind of their investment. No foreign exchange controls.

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7.SKILLED

FORCE

AND HIGHLY CREATIVE WORK-

• Proficiency in foreign languages. (English, Italian and Greek are widely spoken. French and German included in the education system.) • 57 % of the population under the age of 35 • Over 1,071,948 young, well-educated and motivated professionals • Approximately 116.292 students register annually in all the universities

8. ATTRACTIVE LABOUR COST • One of the lowest minimum wage in the region 157 Euro

FAVORABLE TAX SYSTEM

• Corporate tax rate - 15 % • Personal tax rate from 0 - 23 % • Favorable tax system for Small Businesses • Treaties for the Avoidance of Double Taxation with over 30 countries • Albania’s tax system does not discriminate against foreign investors and no distinction is performed between foreign and domestic investors

10. RAPIDLY DEVELOPING INFRASTRUCTURE • New and fast improving infrastructure in transportation, telecommunications and energy • Well-developed and low-cost sea transport facilities • Well-established transportation routes and direct delivery mechanism to most of the EU countries

11.

RECOMMENDED TOURIST DESTINATION

• Albanian is listed 4th on “52 Places to Go in 2014”by New York Times • Top Destinations 2012- ‘Frommer’s Travel Guide’ • The first of the 10 best places to visit 2011- Lonely Planet Invest in Albania

Investment & Business Climate ECONOMIC FREEDOM SCORE “Albania’s economic freedom score is 66,9 out of 100 (most free) making its economy the 54 Freest in the 2014 Index. Its overall score has increase by 1.7 points, with notable improvements in investment freedom and trade freedom. Albania is ranked 25th among the 43 countries in the Europe region, and its overall score is above the world average”

Source: 2014 Index of Economic Freedom www.heritage.org/index/country/albania

Globally, Albania has a good performance and is ranked 14th out of 189 economies related to investor’s protection. Source: Doing Business 2014

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Double taxation treaties are in force with the following countries: • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Austria Belgium Bosnia and Herzegovina Bulgaria China Croatia Czech Republic Egypt France Greece Hungary Italy Kosovo Latvia Macedonia Malaysia Malta Moldova Montenegro Netherlands Norway Poland Romania Russia Serbia Slovenia South Korea Spain Sweden Switzerland Turkey

INVESTMENT CLIMATE Albania offers a booming market in the region with stable economic, political, legal structure, as well as liberalized economic framework and conditions for doing business. The most important sectors that have contributed to the value of FDI are the energy, financial, telecommunications and manufacturing industry FDI Inflow by Year (in millions EUR)

Source: INSTAT, Bank of Albania, Ministry of Finance, FMN, WB

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Bilateral agreements on the promotion and protection of reciprocal investments are in force with the following countries • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

Austria Belgium Bulgaria China Croatia Czech Republic Denmark Egypt Finland France Macedonia Germany Greece Hungary Israel Italy Luxembourg Malaysia Netherlands Poland Portugal Romania Slovenia Sweden Switzerland Tunisia Turkey United Kingdom United States

LEGAL FRAMEWORK ON FOREIGN INVESTMENT Albania has a liberal framework which encourages investments. Law No.7764, dated 02.11.1993 “On Foreign Investments”, was designed to create a favorable investment climate for foreign investors. The law offers guaranties to all foreigners (either physical or legal persons) willing to invest in Albania. The provisions include: • No prior government authorization is needed and no sector restrictions to foreign investments; • There is no limitation on the percentage share of foreign participation in companies-100% foreign ownership is possible; • Foreign investment may not be expropriated or nationalized directly or indirectly, expect in special cases, in the interest of the public us as defined by law; • Foreign investors have the right to expatriate all funds and contributions in kind of their investment; • In all cases and at all times investments will have an equal and unbiased treatment, and will have complete protection; • In any case foreign investment will have a treatment equal to what common international practice allows; • Special state protection through replacement with full rights of foreign investors by the Albanian state in legal and civil conflict with private thirdparty.

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Business Climate The government is committed in locating and identifying new resources that will ensure sustainable development of the economy. Ongoing reforms aim to increase the efficiency of tax administration and fight against corruption. A constant dialogue is established between the business community and the National Business Council, which operates under the auspices of the Prime Minister The close co-operation with international organizations such as: World Bank, International Monetary Fund and European Union, EBRD etc., are assurance for a steady economic development and termination of the transition stage. The implementation of the economic reforms constitutes the main engagement of the Government for the country’s social-economic development, with the final goal the integration in the European Union.

Administrative Simplification “One Stop Shop” • The application for initial registration of new businesses may be done in 24 hours with a low cost of 100ALL (€ <1) at the service window at NRC’s office in Tirana or any other 32 NRC offices throughout the country. • Requests for linceses/permits or respective subcategories may be done at the service window at NLC’s office in Tirana or any other office window located in a municipality office at a cost of 100 ALL (€ <1).

Favorable Tax and Customs System With the adoption of the new 2014 fiscal package Law no. 179/2013 on the 28th December 2013 the government has taken a number of initiatives such as: • NO VAT on machinery worth over 500,000 dollars that will be used to increase the productivity. • NO TAXES on Small Businesses with an annual turnover less than 2 million ALL. Small Business will pay a tax amount of 25 thousand ALL (177€) per year. • Businesses with an annual turnover from 2 - 8 million ALL (€14,000.00-56,000.00 )will be subject to a tax rate of 7.5% • NO VAT on medicines, health services, as of April 1st 2014. • NO Excise on fuel used for the needs of oil producing companies.

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TYPE OF TAXES Personal Income Taxes 0 – 30,000 ALL (approx 214 €) 30,001 – 130,000 ALL (approx 924 €) 130,001 – and above ALL Corporate Profit Tax VAT Customs/Import Tax Excise Tax

RATE 0% 13% 23% 15% 0% to 20% 0%, 2%, 5%, 6%, 10% or 15%. Depending on goods

WORK FORCE COSTS and AVAILABILITY Albania offers not only a highly skilled workforce, but also one of the lowest costs in the region. Labor relations between employers and employees are regulated by individual employment contracts, according to the Labor Code of the Republic of Albania

Employment/Unemployment rate for the second trimester of 2013: For the second quarter of 2013: • Labor force -1,106,480 • Unemployment rate - 12.8%

Age Group 15-64 years 15-29 years 30-64 years Gender Female Male

Employment % 55.2% 37.4% 70.5%

Unemployment % 16.9% 26.9% 14%

48.9% 69.5%

13,7%. 19,3 %

Source: INSTAT

WAGES Minimal Wage Average Wage

22,00 0 ALL (approx. €157) 50,092 ALL (approx.€357.8 )

Source: INSTAT

NATIONAL SERVICE

EMPLOYMENT

National Employment Service was established and regulates its activity, based on the provisions of the law "On the promotion of employment". Its mission is to optimize the service performance, by pursuing active operations in order to fully support employment, at the same time meeting the EU standards. For more info please visito: http://www.epunesim.gov.al

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BANKING SECTOR • This sector is composed of 16 privately owned banks. • The foreign capital amounts to 93%. • 75% of the whole invested capital in these banks comes from the European Union. • More than 6800 employees

Many powerful European banking groups have invested in Albania:

As the main actors in the finance sector in Albania, banks have:

- Raiffeisen, - Intesa San Paolo, - Pireaus, - Societe Generale, - Alpha, - NBG, - Procredit, - Credit Agricole, - Veneto,

- 560 branches, - 830 ATM - 5,400 (POS)

Also, many other Albanian and foreign investors have invested during this 22 years in banks in Albania.

Source: Albanian Association of Banks (ABA)

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Basic Economic Indicators Albania is one of the most dynamic and fastest growing economies in Europe. Albania has achieved strong economic positive growth despite the global economic and financial crisis with a GDP growth of 6% for the period 2000 â&#x20AC;&#x201C; 2009, and more than 3% for the years 2010 and 2011 respectively. 2008

2009

2010

2011

2012 1.5

2013 (Est) 0.7

2014 (Est) 2.1

2015 (Est) 3.3

Real Growth GDP (%)

7.5

3.3

3.8

3.1

GDP (bill EUR)

8.9

8.7

8.9

9.1

9.5

9.7

10.1

10.7

12.7

13.8

13.5

13.3

13.5

12.9

12.2

10.9

Inflation % (e.o.y)

3.4

2.3

3.6

3.5

2.0

1.9

2.7

2.8

Public Debt (GDP %)

54.7

59.4

58.5

59.5

61.9

Exchange rate, ALL/USD

83.9

95.0

103.9

100.9

108.2

106.0

106

Exchange rate, ALL/EURO

122.8

131.6

137.7

140.5

139.0

140.3

140

Unemployment %

Source : MINFIN

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Potential Investment Sectors RENEWABLE RENEWABLEENERGY ENERGY MINING INDUSTRY MINING INDUSTRY MANUFACTURING MANUFACTURING AGRICULTURE AGRICULTURE TRANSPORT & AND LOGISTICS TRANSPORT LOGISTICS

TOURISM

ICT SERVICES ICT SERVICES

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RENEWABLE ENERGY Albania is the most dynamic renewable energy country in Europe. A strong political commitment and an ambitious national strategy have placed renewable energy at the top of countryâ&#x20AC;&#x2122;s development objectives. The vision of the Albanian Government is to position Albania as a leading renewable energy driven economy. Significant renewable energy resource o Hydro o Wind o Solar The Government of Albania offers o New electricity market laws o Small Hydro Power Plants (HPP) attractive feed-in tariffs Albania has huge hydro energetic potential o Total installed capacity is 1,726 MW; o Average power production is 4.2 TWh; o Potential annual generation of about 16-18 TWh. o To date only 35% of Hydro-Energetic potential of the country is utilized; o Total hydro energetic resources are about 4,500 MW

Production

During the period 2002-2012, there have been noticeable differences in the electricity production Main indicators of electricity 2002

2003

2004

2005

2006

2007

2008

2009 2010 2011 2012

Production 3,204 4,974 5,467 5,409 5,516 2,933 3,770 5201 7743 4185 4725 (GWh) Import 2,072 937 567 365 633 2,828 2,417 1884 0 3262 2538 (GWh) Supply 5,430 5,900 5,945 5,933 6,121 5,750 6,300 6592 6773 7342 7617 (GWh)

Sourse: AKBN Invest in Albania 14

HYDRO POWER Water resources are amongst Albania’s most important natural resources. Eight large rivers, fed by hundreds of smaller rivers and streams, run through the country from the mountainous East to the Adriatic and Ionian seas to the West. The average height of the hydro graphic territory of Albania is about 700 m above sea level.

HYDROPOWER SECTOR PROJECT Vjosa River Drini i Zi River

CAPACITY 300 MW 200 MW

RESEARCH Yes Yes

ELECTRICITY TRANSMISSION PROJECTS: PROJECT Albania – Italy Albania – Macedonia Albania – Kosovo

CAPACITY 400 kWh 400 kWh

RESEARCH No Yes

110 kWh

Yes

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SOLAR ENERGY Albania belongs to the sub-tropical belt and the Mediterranean climatic zone, with a hot, dry summer and a relatively short and mild winter. It has favorable conditions for development of solar energy. (Due to its climate, the high intensity and its relatively long duration, solar radiation is calculated to be more than 1,500 kWh/m2/yr.) • Average daily solar radiation: 4.1kWh/m2 (reaching more than 4.6kWh/m2 in the south-western part of the country.) • Average sunshine hours per year: 2,400 (2,500 hours in the western part and a record of about 2,850 hours in certain locations.) • Solar energy is mainly used for heating purposes, while photovoltaic energy is still unexplored.

WIND ENERGY Albania is an untapped wind power potential, in particular along the Adriatic coast. It has a number of areas with high wind energy potential. • Average annual wind speed of 6-8 m/s and energy density of 250¬600 W/m2, - are already identified. • At least, 20 potential oleic electricity centrals can be constructed in these areas. • Albania does not have any wind power production facility yet. • Several domestic and foreign investors have already been licensed to explore wind power production opportunities; • A major investment for a 150 MW wind farm is in the planning phase. • The Government’s target for the year 2020 is to generate 5 percent of total electricity from wind sources.

PETROLEUM & GAS SECTOR Albania has important oil reserves and produced about 1,205,538 tons (2013). Its oil exports to foreign markets at the end of 2012 amounted to 56.7 billion, dominating the total domestic exports.

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MINING INDUSTRY Mining industry has traditionally been the backbone of the Albanian economy. With its rich mining history, considerable mineral reserves, untapped potential, and favorable investment environment, Albania is emerging as a regional and European leader in mineral production No. of companies: 764 local and foreign companies equipped with mining licenses, 154 local and foreign companies equipped with mining license for search, search-prospection and prospection. The major operators in the sector are foreign investors, mainly from Canada, Turkey, Australia, Austria, UK, China, and U.S.A.

• CHROMIUM: large reserves currently estimated at about 36.9 million tones, of which about 12.8 million tons with 30-42% Cr2 O3. The exploration potential for chromite is high for small to medium size deposits, using modern exploration technologies searching for deeper deposits in prospective areas. COPPER: Copper subsector is underdeveloped and it offers important investment opportunities. The exploration potential for copper is considered very high, in particular for small to medium deposits. Several important perspective exploration areas are already identified. There is also a high potential for large copper mining operations. Investments in mineral processing and smelting are a high priority as currently there is only one beneficiation plant in operation in the country.

•

• NICKEL: reserves are currently estimated at about 322

million tons, of which iron-nickel 220 million tons and nickelsilicate 102 million tons. The ultimate reserve potential is unknown, but is believed to be comparable to Turkey’s.

Current Advantages • Rich in various minerals Oil and Gas Old tradition in mining industry • A huge untapped potential for further investment, both in extracting and processing • A top priority sector for Government and supportive policies • Liberalized market and trade policies • High-quality and experienced engineering and technical workforce • Cheap labor • Easy access to international markets • Priority given to international investors • Proven record of successful foreign investment in the sector

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MANUFACTURING Albania has a strong and vibrant manufacturing sector, shaped by a long and successful Garment and Footwear Industry, which has established extraordinarily close relationships with Italian partners, experts and buyers over the last 20 years. Manufacturing sector: • Average annual export is about €428 million. • Supplies to major brands and retailers throughout Europe • Main markets are Italy, Germany, France, Holland, Denmark and Greece

KEY FEATURES OF GARMENT AND FOOTWEAR INDUSTRY- MADE IN ALBANIA • Highly skilled and cost-competitive workforce • High quality products, reliable delivery • Wide range of products for men, women, and children. • Full cycle production - design, sourcing, pattern making, cutting, finishing • Experienced hand finishing, hand dying and hand sewing of shoes • Accomplished Cut-Make and Cut-Make-Trim subcontractors • New equipment and technological processes • Rapid response to customer orders (short lead time)

Consolidated legal framework in compliance with EU and international standards • Flexible production in terms of order size • Overnight delivery to EU countries • Excellent low cost transport and logistics opportunities • Experience and tradition mixed with Italian design influence • Favorable flat-rate tax regime for personal and corporate income tax • Government incentives available for footwear manufacturers Invest in Albania 18

Agriculture Reasons to invest • Fertile soil, suitable climate and abundant water supply with large production potential • Fruits and vegetables, cooking oils, nuts, herbs and spices, fish, dairy products •

Low wages

• Great potential to improve the technological innovation of the current productivity • Development of organic agriculture • Rapid growth of national markets and the accessibility of regional markets for export • Advantages deductible from preferential trade agreements with the EU on the increase in exports • 20 thousand hectares of agricultural land available owned by the government originating from former agricultural enterprises.

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TRANSPORT & LOGISTICS Albania’s location at the center of a natural crossroad of the main transport corridors across Europe, places the country in a strategic geographic position. Investments made in infrastructure have boosted the development of the infrastructure sector, playing an increasingly important role in fostering the economic development and intensifying the economic ties among various areas of Albania. ROAD TRANSPORT The Albanian National Road Network: • About 3719 km long (1198 km road network and 2,083 km of secondary roads). • All primary roads network and 67% of the total length of the secondary network are paved roads. • Around 48% of the primary roads network traverses flat ground, • 56% of the secondary road network is located in mountainous terrain.

ONGOING HIGH PROFILE PROJECTS 1. TAP pipeline Trans Adriatic (TAP Project). 2. The Ionian Adriatic Gas Pipeline - IAP Project) The TAP project is a very important investment for Albania. TAP pipeline will bring natural gas from Azerbaijan to Europe. The Trans Adriatic Pipeline (TAP) is a natural gas pipeline project. The pipeline will start in Greece, cross Albania and the Adriatic Sea and come ashore in southern Italy, allowing gas to flow directly from the Caspian region to European markets. To demonstrate its commitment to the region, TAP signed two Memoranda of Understanding and Cooperation with developers of the Ionian Adriatic Pipeline (IAP). Starting at a tie-in point to TAP in Albania, the IAP aims to deliver gas to northern Albania, Montenegro, Bosnia and Herzegovina, and Croatia. *Source: (http://www.trans-adriatic-pipeline.com)

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REGIONAL LOGISTICS CORRIDORS Albanian Corridors- Actual Situation Corridor “Durrës - Kukës – Morinë”, also called “The Nation’s Road”, is an important axis. Regionally, this corridor is considered as the best link of the Pan-European Corridor VIII with the Pan-European corridor X. • 170 km long • Connects the capital and the port of Durres, with the new state of Kosovo. Pan-European Corridor VIII • Lies along the East-West line, • Joins the Adriatic Sea to the Black Sea, • Passes through Albania, Macedonia, Bulgaria • Connects locally “Durres-Tirana- Skopje -Sofia-Bourgas-Varna-Plodviv”. Note: Complete construction of the existing road linking Durres and Tirana with the Macedonian border has been finalized. Work is in progress towards completion of other branches of this Corridor in: • East – West, in the section “Lushnje – Fier – Vlore“ (64 km) • “Qafë Thanë – Pogradec – Korçë” (63 km) • “Tirana-Elbasan Highway“- 29 km, an important axis of the Central-South axis and the main link to Corridor VIII. • By Pass Fier- 22 km, a huge project connecting two main highways. North-South Corridor It stretches for 405 km connecting Greece with Montenegro through the itinerary: • “Shkodër – Hani i Hotit” (39 km) • ”Fier – Levan – Tepelenë” (71 km) • “Tepelenë – Gjirokastër” (23 km) • ”Sarandë – Konispol” (40 km) Invest in Albania 21

Transport Investment Opportunities • “Milot-Rrëshen-Morinë”- road maintenance PPP/concession (Where preliminary investment is estimated to be 60-90 million Euros) • Extension of “Tirana-Durres” Highway (There are three lanes on each side, worth approx. 100-120 million Euro)

Projects “ARBRI ROAD” PROJECT

It is the main road which provides the shortest link between the port of Durres and the Republic of Macedonia. • “Arberi Road” is the axis linking Tirana with Macedonian borders, through the city of Peshkopia. • Priority: The establishment of a sustainable transport system, safe and environmentally friendly, integrated into the region and Europe, accessible by all, contributing to economic growth and quality of life of its citizens. • The road segment will shorten the distance between Tirana and Diber, from 173 km approximately to 74 km. • Main objective: To construct the road section as a new shorter connection route of Durres Port with the Republic of Macedonia at Bllata border crossing. Construction of the "Rruga е Arberit" road takes a great importance in the economic development of Mati and Diber regions. • According to the proposed project, the road section "Dajti (village) - Ura е Vashes" with a total length of 26.8 km, will follow a completely new road alignment, which is developed in the hilly-mountainous region of the north eastern part of Tirana.

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“NORTH – SOUTH ROUTE OF ALBANIA” PROJECT “Blue-Highway Concept” The North-South Route of Albania is one of the main arteries of the road network of the country. It covers more than 80% of the populated area, more than 90% of the industrial, agricultural and costal activities. • The North-South Route starts in the North bordering with Montenegro (Ulqin-Ada-Velipoje) and ends to the Greek border, with a calculated length of approx. 350km. • Priority: the establishment of a sustainable transport system, safe and environmentally friendly, integrated into the region and Europe, accessible by all, contributing to economic growth and quality of life of its citizens. • Main objective: to contribute to the economic growth of Albania through improvements of the Albanian Road System in alignment with the European and international standards; to contribute to the establishment of a unique economic area, primarily within the state's territory, but also on the regional and pan European levels. • It is an integral part of the Adriatic - Ionian motorway, which starts from Trieste (Italy, north Balkan Peninsula up to Athens (Greece), alongside the Adriatic and Ionian seas, with a total length of about 1,500 km. • The feasibility study detailed design for the whole corridor and/or construction works in some segments is proposed for under this project.

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SEA TRANSPORT Seaports in the main cities: Durrës, Vlora, Saranda and Shengjini. Port of Durres • The largest and the most important in Albania • The main gate of the Corridor VIII. • Covers 81.8% of all the country’s maritime transport • Processing capacity of 4 million tons per year. Porto Romano: • Located 6.5 km in the north of the city of Durres. • It’s infrastructure supports coastal deposits of oil, gas and of their byproducts and L.P.G

Port of Vlora: • the second largest port • passenger transport

Petrolifera Port • Terminal port for petroleum and by-products and LPG, in the Vlore Bay. • Access with Corridor VIII • Positioned nearby the Greek and Italian refineries.

INVESTMENT OPPORTUNITIES PORTS: Port of Saranda: • The most southern port • Operates only for tourist and passenger transport. Shëngjini port: • The northern port of Albania and the closest to Kosovo, Republic of Macedonia and Serbia and other regional countries. • Three types of activities planned: fishing, passenger transport and stevedoring

The project of “ Shengjini Port” • Funds Required: 1.1 billion Euro ( including the construction cost, port yards, pier and tourism port, installation, machinery etc) • The development of the Shengjini zone provides great possibilities for the development of the northern area of Albania. The port will be the largest employer, both in the region and in the country. It increases the possibility of the development of tourism, trade, the housing construction sector, agriculture etc. • The New Port of Shengjin project is planned to modernize the design standards. All port facilities will meet all the requirements of an international port in terms of construction and function, The structures of the port will be designed to conform organically to the coastal relief. • In addition to the port yards, the port has available a coastal area of (5000 x 300) m = 1,500,000 m2 and behind the tunnels there is large free area for the storage of goods [on Kakariqi plain).

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AIR TRANSPORT “Mother Teresa” - Tirana International Airport The only airport operating in Albania is the “Mother Teresa” Tirana International Airport. The airport is situated about 18 km in the northwest (16 km in the airline) of Tirana. The geographical coordinates are 41°21′54″V, 19°43′14″L •

•

Statistical Data • Passengers for 2012 : 1,665,331 • Cargo for 2012 : 1,866 • Mail : 382 Airlines routes • Regular routes for 2012 : 18,832 • Charter : 1,576

Kukes Airport (for emergency landing) : Situated on the south of Kukes, in “Fusha e Meteorit”, 3 km away from the city and 45 km from Prizren, as well as 120 km from Pristina Kosovo. Saranda Airport (for emergency landing)(Field of Vrion), is located 3 km east of the city and about 6 km from the national road, with a height of 20m above sea level. Field dimensions are 780 x 70 m. After the independence of Albania, Saranda’s aerodrome was never used and to this day it still stands above the old infrastructure. The aerodrome is surrounded by agricultural land which is state property. Basic Data • Runway landing length: 1800 m • Runway landing width : 36 m Source: Institute of Statistics (INSTAT) and Tirana International Airport (TIA)

Concept Project: South Tourist Airport: Saranda- Gjirokaster

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RAILWAY TRANSPORT The Albanian Railway network comprises of 441km of single track rails. The network was built between 1946-1986 to serve the Albanian industry and connects several important cities with the most important passengers connection between the Durres-Tirana line. Furthermore, it connects the Durresi port with the industrial and mining areas. In 2006 the Albanian government signed the Stabilization Association agreement with the European union, in the framework of this agreement the Albanian railway (HSH) is restructured along EU principles. The Project of Railway Infrastructure • The railway network is an important part of the South East Europe Transport Observatory (SEETO) initiative of the European Union. • Within the framework of SEETO, the focus was on the improvement of the core railway network in the region, (corridor VIII and Corridor X relation with Montenegro line) as an important form of transport to increase trade in the region and linking the region with the European Railway Network. • The Albanian Railway network comprises of 441 km (kilometers) of single track rails. The network was built between 1946 and 1986 to serve the Albanian industry, and connects several important cities with the most important passenger connection being the Durres-Tirana line. Furthermore, it connects the Durresi Port with the industrial and mining areas. The connection to Montenegro was built in 1986, rebuilt to its previous conditions in 2003 and gives access to the European railway network • The use of trains for freight transport is growing due to the link with Montenegro which serves as the international link to the rail network for the exportimport goods. (International freight trains are 50 % of total trains of Albanian Railway) • This Project is in line with the long-term vision of the Albanian Government for the railway sector which is the revitalization, restructuring and the integration of Albanian railway network into the regional and European railway network. • Requires necessary measures that shall ensure the development and promotion of the railway transport and other combined forms of transportation, as a mean to ensure transit through Albania.

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TOURISM SECTOR New York Times ALBANIA IS LISTED 4TH on “52 Places to Go in 2014”by New York Times “On a rugged shore, Europe at its best”

Lonely Planet THE FIRST OF THE 10 BEST PLACES TO VISIT IN 2011 «This country is a dizzying mix of religions, styles, cultures and landscapes, from the orthodox Sunni Muslim Albanians, from idyllic beaches to the peaks of the Rocky Mountains and fields for intensive cultivation.’’

Opportunities

Advantages • Favorable geographical position, seasonal climate • Archaeological, historical and religious sites • UNESCO world heritage sites • Stunning 316 km of Coastline • Beautiful Lakes • High mountains • Lagoons, sand belts and sand

• • • •

• •

Sun and Sea tourism Cultural tours Nature and Adventure Winter sports, air sports, fishing, trekking, climbing, rafting Health tourism Golf courses

‘Frommer’s Travel Guide’ TOP DESTINATIONS 2012‘’Unsung, undeveloped and eminently affordable, the Albanian Riviera has all the natural attractions of its Croatian counterpart further north but without the crowds and considerable expense. Here you have white-sand beaches, crystal-clear waters, and Mediterranean villages barely changed since long before King Zog.’’

Source: http://turizmi.gov.al/ Invest in Albania 27

TOURISM DEVELOPMENT PROJECTS SUBDOMAIN Rehabilitation Of Durres Roman Amphitheather

CONTEXT: Aims the revitalization and development of one of the most important archeological touristic sites in the country and an essential European heritage gem

IMPLEMENTER Ministry of Urban Development and Tourism Ministry of Culture Agencies Local Government Units

Tourism Improvement District In Kruja

The rehabilitation of this important zone as well as the revitalization of Ottoman Bazaar of Kruja (400 years old).

Ski Track In Dardha 1600 m above the sea level.

The project aims to create a contemporaneous model of ski track functioning through private public partnership, with direct impact in sustainable tourism for the area. The project aims to set out a new development model of guest houses and service offer businesses in mountain areas in Albania through public private partnership.

Ministry of Urban Development and Tourism Agencies Municipality Partners Donors Ministry of Culture Private Sector Ministry of Urban Development and Tourism Agencies Local Government Units

The Park Of Wooden Houses In Mountains Areas

Ministry of Urban Development and Tourism Agencies Local Government Units

PARTNERS Donors Private Sector

PHASE Duration Of Current Phase 2014-2016

Expected Duration February 2014 â&#x20AC;&#x201C; March 2015

Donors Technical Assistance Companies Private Sector

Expected Duration February 2014March 2015

Donors Technical Assistance Companies Private Sector

Expected Duration February 2014March 2015

Invest in Albania 28

ICT SERVICES Reasons to invest • ICT sector remains on the focus of Government plans for intensifying the process of Digital Albania. Important new initiatives have been launched like the National Spatial Data Infrastructure and the modernization of postal sector, which we have been supporting since 2012. The government initiative of “Digital Albania” will be one of the four pillars of the new NSDI 2013-2020. This will require more infrastructure, reforms, capacities, and improvements in the area of e-governance. Albania has already in place most of basic elements of a governing and regulatory framework for telecommunications. The Postal and Electronic Communications Authority, National Agency on Information Society, National Authority for Electronic Certification, the Commissioner for the Protection of Personal Data, the Minister for Innovation and ICT are all new institutions in charge of the ICT development. What have we accomplished so far... • National Spatial Data Infrastructure legal and institutional frameworks approved and operationalized; • Rights of Way legal and institutional frameworks prepared; • Policy document on the development of postal sector approved, and the legal framework ready to be prepared • An electronic system for monitoring the operations in the sector of gambling being prepared for concession • Web based Electronic Document Management System focusing on citizens’ requests/complaints in the municipalities of Elbasan and Kamez established. Such a system has improved both services and the level of local governance; • The use of e-participation portals that enable citizens to participate in consultation processes such as budgeting and urban planning in the municipalities of Elbasan and Kamez established. E-participation portals have increased transparency to the citizens Year 2011 2012

Donor ONE UN Coherence Fund ONE UN Coherence Fund Government of Albania ONE UN Coherence Fund Government of Albania

2013

Year 2011 2012 2013

Amount contributed $ 175,872 $ 216,379 $ 10,407 $ 187,730 $ 192,664

Total delivery $ 175,872 $ 226,786 $ 380,394 Invest in Albania 29

Economic Zones Economic Zones and Privatization The Government of Albania has as objective the development of economic zones (industrial parks and free zones) on the basis of public-private partnership. The approved operation of 9 Economic Zones, of which nine of them have the status of industrial parks and one has the status of free zone, is currently factual from the Albanian Goverment.

Economic Zones with the status of “Industrial Parks” 1

Location: Koplik, Shkodra DCM: No. 12, dated 4.01.2008 Surface Area: 61 hectares State-Owned

Location: Shengjin, Lezha DCM: No. 11, dated 4.01.2008 Surface Area: 3.2 hectaresx State-Owned

Location: Spitalle, Durres DCM: No. 391, dated 21.02.2008 Surface Area: 850 hecatres 520 hecatres State-Owned

Location: Vlora DCM: No. 774, dated 4.06.2008 Surface Are: 125 hectares State-Owned

6 7

8 9

Location: Shkodra DCM: No. 775, dated 4.06.2008 Surface Area: 137 hectares 11.3 hecatres State-Owned Location: Lezha DCM: No. 81, dated 27.01.2009 Surface Area: 54.3 hectares State and Privatly-Owned Location: Laknas,Tirana DCM: No. 790, dated 22.07.2009 Sufrace Area: 9.48 hectares Privatly-Owned Location: Rrashbull, Durres DCM: No. 105, dated 09.02.2001 Surface Are: 16.52 hectares State-owned

Economic Zones with the status of “Free Zone”

Location: Vlora DCM: No. 628, dated 11.06.2000 Surface Area: 478.14 hectares State and Privatly-Owned Invest in Albania 30

The Privatization Process: In the framework of excellent state property management, to increase transparency and fight against corruption, the entire state property inventory is being verified and will be accessed online. The acceleration of the privatization process consists of: • The sale of 10 commercial companies with 100% state-owned or state-owned enterprise shares, with economic and financial losses in years. • The sale of state package in 10 Joint Stock Companies, with state ownership less 50% of the shares.

There are three industries that have the biggest opportunities in Albania: Insurance:

Telecommunications:

Water Supply and Transportation:

INSIG Sh.A – the only state owned insurance company in the market, which operates in Albania, Kosovo and in Macedonia, offers life and nonlife insurance products.

• Privatization of the remaining stateowned shares of Albtelecom

• The concession for the Durres Port Train ferry terminal; • The water supply systems in Berat and Kucove.

Invest in Albania 31

Investors Already Present in Albania

and more...

Invest in Albania 32

Government Agency: Promoting Albania Internationally. Increasing awareness of Albania as an investment destination. Facilitate and support direct investment in Albania, before, during & after investment process. Increase the competitiveness of small and medium - sized enterprises. Promote and support exports of goods.

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INVESTOR AND “AFTER CARE” SERVICES Albanian Investment Development Agency Blv Gjergj Fishta, Pall. Shallvare. Tirana, Albania Tel: +355 (0) 42251001 Fax: +355 (0) 42250970 E-mail: info@aida.gov.al Web: www.aida.gov.al

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