Albania

In the context of the SAA to support the Government in improving the abilities of Albanian economy to compete in regional markets and to attract new job creating investment in both traditional and new sectors.

The Follow on to enhancing regional trade and attracting investment to Albania Project is managed under UNDP Albania’s Democratic Governance cluster. It focuses on building the capacity in the Albanian Ministry of Economy, Trade and Energy and AIDA (former AlbInvest) to attract foreign direct investment and develop industrial zones. This follow-on project will emphasize strengthening and institutionalizing capacities in investment promotion and FDI policy development, and identifying effective activities for the Government in industrial zone development.

In order to assist the Government of Albania to achieve its objectives regarding economic development and in attracting foreign direct investments in the country, the strategy of the project consists of three main components:

The first component is to continue efforts to develop better FDI data and policy analysis in METE. The current FDI statistics produced by Albania do not separate portfolio investment from direct investment, do not cover outward FDI, include the debt component of FDI, or the contribution of enterprises with less than 10% investment. It should be noted that the participation of UNCTAD is a continuance of the direct support to the previous project and is predicated on the mutual agreement and availability of all parties. Within this activity and in close collaboration with UNCTAD, an Albanian FDI team will be established and the beneficiaries will disseminate the first Albanian Investment Report. Its main purpose is to provide the Albanian Government with analytical tools and monitoring capacities in the area of FDI and economic development .The Report will provide a clear picture of the FDI and their impact on the macroeconomic situation in the country.

The second component of the project will focus on the former Albinvest’s capability to better promote FDI and upgrade its capacities in regard to information, communication technology and the absorption of technical assistance. Since October 2010, the new agency called AIDA (Albanian Investment Development Agency) was established. In this context the Project has been requested to hire a local law consultant to support and prepare the AIDA’s new statute. Within this component the project contracted a local consultant to recommend appropriate systems and design the e-portal which will serve as a one-stop-shop website for all the interested stakeholders providing the latest information and services.

The third component is support to Industrial zones. The previous project successfully delivered training and operational advice to METE and the municipalities developing industrial zones. The need for industrial zone development has been developed along two main paths. Firstly, to check for the possibility of a new industrial zone in the city of Korca and second, the possibility of re-investments in the old Cooper Refinery in Rubik, aiming to create more jobs for the underdeveloped region.

• Legal decree and establishment of the national FDI team.
• Publication of national FDI report that will help the Government of Albania to monitor and analyze the impact of FDI in the Albanian economy. The is ready to be launched from the end of January 2011.
• Environmental audit study for the Rubik Refinery including chemical samples extracted in the old refinery for heavy metals and other contaminated elements.
• Technical specifications for a portal WEB for AIDA.
• Legal draft(statute) of AIDA, to be endorsed by the Board.
• Feasibility cost study for the Rubik Refinery.
• Promotion materials for the Rubik refinery.
• Guidance on how to develop an IZ for the Korca Region and relevant training materials for both cities.
• Tailored training session on FDI’s data for the FDI team.

• Ministry of Economy, Energy and Trade
• AIDA (former AlbInvest)
• Bank of Albania
• INSTAT

Tirana, Rubik, Korca

The “Follow on to Enhancing regional Trade and attracting new investment to Albania will be implemented by UNDP, in accordance with UNDP’s Direct Execution (NIM) modalities

Support for Enhancing regional Trade and attracting new investment to Albania

Diana Leka
Project Manager
diana.leka@undp.org
Tel: + 355 221666
Fax: + 355 230406