July 1999

Albania Master Report

No alternative networks can be listed yet. The railways, highways, energy utilities, water and canals are all still owned by the state (historic operator), and years of civil unrest have left them in economic chaos.

However, active consideration is being given to the privatisation of its utilities.

• First, currently work is in hand to decide on the overall privatisation strategy of Albanian Telecom, and draw up plans for undertaking the work necessary prior to the sale. The Government will need to decide whether Albanian Telecom should be privatised as a single entity or split up into smaller units. It will also be important to decide what proportion of shares will be retained by the state, the shares to be distributed to employees and for inclusion under the voucher privatisation programme.

• Second, as far as gas is concerned there already exist some private companies that operate in this field. In fact, they provide gas through foreign sources, not domestic ones, mainly from Italy. One of the biggest companies offering gas in Albania is IAP gas, which has its branches in the most developed cities of Albania.

• Third, the energetic system is organized in Albanian Energetic Corporation (AEC). Actually AEC includes 47 Enterprises from which 12 enterprises are for production and transmission of energy, 29 for distribution and 6 for selling of energy. As a legal base of AEC is the law of Hydrocarbons (research and products), Nr 7746 date 28.07.1993 and the Decree Nr.782 date 22.02.1994 on the Fiscal system in Hydrocarbons Sector (research and products). Albania Energetic Corporation AEC, is under the supervision of Ministry of Energy and Mineral Resources. The Government has decided to proceed with the privatisation of the transmission and distribution divisions to be split into four separate companies, with the majority of shares being offered to strategic (foreign) investors. Initially, the distribution businesses covering Shkoder, Elbasan and Vlora are to be included in the mass privatisation programme on a pilot basis. A new Electricity Law has been prepared; substantial accounting, legal, banking and marketing work is to be carried out prior to inviting bids from strategic investors.

• Finally, there is no private company taking care of public transport, nor are there plans for privatisation. The Ministry of Transport and Public Affairs and its branches are the responsible authorities that direct the activities in this sector all over the country.