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 capacity in the Albanian Ministry of Economy and the Albanian investment agency (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 State in industrial zone development.

In order to assist the Government of Albania to achieve its objectives regarding the 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 the efforts to develop better FDI data and policy analysis in METE. UNDP will follow-up the well-received UNCTAD seminar on FDI statistics to support a national FDI statistics team and an improved FDI survey that meets international standards in order to produce an annual FDI report that meets international standards. The current FDI statistics produced by Albania do not separate portfolio investment from direct investment, does not cover outward FDI, does not include the debt component of FDI, and does not include 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.

The second component of the project will focus on AlbInvest’s capability to promote and absorb technical assistance. The previous project successfully upgraded programs, projects and the skills of staff members through its specific activities. Additional effort is needed to improve the overall capability of Albinvest and its capacity to maximize the technical assistance. The project proposes to hire a former director or deputy director of an investment promotion agency to devise an investment promotion strategy, and to optimize workflow and agency operations. AlbInvest’s IT systems require modernization. The project will bring in a consultant to recommend appropriate systems and the project will provide funding for a local company to provide such systems and to update AlbInvest’s website.

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. However, Albania is in the initial phases of industrial zone development. There is a significant need for guidance in development, tendering, contract award, licensing, monitoring, etc. A consultant will follow up on the work of the previous project to train and advise the municipalities on the requirements of identifying, planning and marketing industrial estates, and continue to advise METE about its role along the lifecycle of industrial zone development . The study tour to Croatia in the previous project provided valuable insight to the METE staff.

• Establishment of national FDI team and preparation of national FDI report that will help the Government of Albania to monitor and analyze the impact of FDI in the albanian economy

• Upgraded capacities of Albinvest regarding promotion of Foreign Direct Investment and IZ in Albania

• By end of July 2010, METE is better able to license and regulate industrial zones and AlbInvest is better able to promote industrial zones.

• Ministry of Economy, Energy and Trade
• 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

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

Support for Enhancing regional Trade and attracting new investment to Albania