The round of conversations with the citizens took place in the capital city of Saturday. At a meeting with citizens of all ages and from different walks of life, Prime Minister Edi Rama and the Mayor of Tirana Erion Veliaj focused on a range of issues concerning Tirana citizens, and future development projects in the capital.
Progress of the ongoing post-earthquake recovery and reconstruction programme drew particular attention of the citizens, who began the meeting with a question on this issue. Answering to a question made by a resident in the administrative unit No 4, whether the new residential complexes were going to be built on the site of the destroyed apartment buildings or were they to be relocated in a new residential neighbourhood, Prime Minister Rama said:
I believe it is quite a natural conduct for everyone to hesitate when it comes to the prospect of being relocated in a new residential neighbourhood built from scratch and moving into a new house after having lived in the same apartment and in the same community for many years. However, I am confident that all those who will be relocated and housed in these new residential complexes will be felt a lot better and, in a way, the natural disaster will turn out for them to be a huge fresh opportunity to move in brand new larger and safer living spaces, not only in the case of the apartments, but also the entire area and the surrounding environment, because the new residential complexes are being built from scratch and allow is to plan in advance everything the neighbourhood needs, including essential public services, kindergarten, school and healthcare centre. And of course, this also means having a much more qualitative living and urban environment in terms of space and green areas compared to the place and the buildings unfortunately severely damaged by the earthquake. So, what we are really doing in all worst-hit areas is that where rebuilding the new residential buildings on the site of the old ones is possible, we are doing exactly that. Where rebuilding the new residential complexes on the site of the old ones is just not worth it because of the quality of life that area offers, then residents are provided the opportunity to relocate and move in a new house in a brand new neighbourhood, which of course is not located on the other side of the city, but adjacent to the old neighbourhood.
-Speaking about deadlines for completion of the new dwellings in the administrative unit No.6 in particular, Prime Minister Rama said:
I believe that for us to be correct when it comes to deadlines, since any project is associated with unpredicted developments, I can openly state that construction of the single-family homes will complete by early September, or in the first days of the autumn season, and all of those who have lost their private family homes in the earthquake would have moved into their new houses by then. Normally, this could happen even earlier, but taking into consideration also the potential delays due to various circumstances that don’t depend on us – for example, one of the contracts we had to award for construction of single family homes in a remote area in Tirana was delayed, because no companies showed interest due to the difficult construction process, as the houses were to be built in very remote areas geographically and it is most likely that the contract has not been lucrative enough in economic terms, and therefore, the process was postponed again. So, there are certain things and issues that make the process to take some more time than we predict. Normally, the majority of the affected families would be housed and I am talking about the single-family homes, but anyway, not matter what happens, none of the families that have lost their homes will definitely move into their new houses by early September.
In the meantime, we have also made sure that all those who can’t return back to their homes are granted a rental bonus, which is an adequate solution as it guarantees housing for everyone. The rent is paid by the state, while the quake-affected families calmly wait to return to their new houses. A total of 11 200 families were sheltered in makeshift tents right after the earthquake, whereas only 633 families are still living in tents currently and they are mainly rural households, which although they receive the rental bonus, they still have chosen to temporarily live in tents close to their land plots and care for their livestock and cultivate their agricultural land. However, they are still entitled to the rental bonus and they will receive it until they all move into their new houses.
As to the apartments, I believe all procedures for reconstruction of apartment buildings would complete by end of next year. What we are doing now is a contract, clearly stipulating this is a process of obligations on the state’s part and this contract will also include deadlines and penalties. If these deadlines are not met for objective reasons, as I mentioned earlier, as delays could happen during the process in the construction sites, penalties will be imposed on the state’s expense, so that the state is a correct partner of the citizens. I am confident that no traces of the earthquake damages will exist by end of next year. Quite the contrary, not only the traces of the earthquake damages will disappear, but the quake-hit areas will be a testimony to the radical transformation you all have witnessed regarding construction of the educational facilities. New schools are being built and they are unparalleled to the old ones. The same will be the case with the family homes and the apartments.
-Answering to a question when the Big Ring area, namely the Astir quarter, would be fully functional, the Premier said:
I would like to briefly comment on the near past, recalling your memory about a long period when that area was blocked due to the protests, misunderstandings and manipulations that became the cause for an absurd tension that held hostage not only the project, but also the city’s entrance for several months. As everyone can recall, the movement of vehicles and people turned to be a mission impossible during a at a certain time during the day as the road was totally blocked and paralyzed because of a protest aimed at warding off the project, but in its essence it actually was a strongly politically-motivated protest for already known reasons and with the victims turning out to be precisely the individuals who were being used in this protest, although they believed they were doing the right thing. Why I calling them “victims”?!
I am calling them “victims”, because the residents of that area are indeed the biggest beneficiaries from the project. Of course, the entire city will benefit from the project, as it includes the radical transformation of Tirana’s entrance, which would allow a higher traffic flow to the city and ultimately addresses a problem which was becoming increasingly disturbing in the recent years due to the very high traffic flow. However, local residents in that area are actually the main beneficiaries, as the infrastructure being built there will significantly increase the value of their properties and the demolitions to clear the way for infrastructure development, including all other areas due to be reconstructed, will certainly provide an incredible potential to build qualitatively and develop residential complexes that are much closer and much more valuable in terms of property value.
With the development process of the area advanced that naturally comes as a result of an infrastructure that does not even compare at all with the existing one, which is completely different in terms of the standards, quality, the area will also require construction pre-university education infrastructure and health infrastructure, namely health centers, schools, kindergartens, nurseries.
Basically, I think that project will bring to those who protested and those who live there, but who did not protest, a very significant increase in their property value and a fresh opportunity to live in a neighborhood, in an area so close to Tirana’s centre and which, not long ago, felt so far from the center of Tirana, precisely as a result of the absence of this project.
A great deal of an absurd debate took place regarding the project’s costs and in a very diabolical and devious way – “diabolical” is probably too big a word to value mindless individuals – but in a devious and deceitful way they incite such absurd conflicts, creating the idea that construction of a one-km road incurred such a huge cost that it was a robbery of the century. Indeed, if you are to take a look at what is going on there and if you were to visit that reconstruction site, which is not visible at all to the eyesight, as it is about a reconstruction site with the construction work currently taking place around 20 meters below the Lana River level. The project is about building five tunnels and an extremely complex engineering project that you can best figure out that the kilometres of the road are not like the meters of the fabric with equal cost. The length of the roads depend on what you are building along that road stretch, it depends on terrain where that stretch of the road is located, as it could be located right at the heart of the city, but also at the heart of a marshland, which are two completely different terrains. And if a kilometre of a road at the centre of the city or right through a rocky area, the supporting structure is completely different from a supporting structure that has to be built on a marshy area. Not only that, but it also depends on what you plan to build along that km-long stretch. Is it a kilometre of a linear road that includes layer strengthening and asphalt pavement only, or it includes construction of tunnels, bridges and roundabouts. I am saying all these as it is the moment to clarify on the matter by providing facts. What I am saying is best illustrated by the reconstruction site currently underway. I am talking about a computer-generated 3D design, or a design shown through a video-projector or documents, where people, being sceptical people would tend to say is just a 3D design. The project is underway and is being built there. I hope people won’t fall prey to these repugnant propaganda tools against development projects in the country, with false claims and allegations over incredible project costs, as the debate should actually focus on what is designed or being built along that kilometre of road and where it is being built.
-Another question focused on the food market for the rural areas, currently the only Kashar-based market of its kind, located in a considerable distance from other rural areas like Farke, Petrele, and Baldushk. Commenting on the agriculture in general and development this sector is experiencing in the recent years, the government head said:
I believe there is a number of sectors and certain domains and areas within such sectors that because they no deserved media attention is placed on them and because they are not on the focus of the public debate and interest, they actually have progressed very well. Indeed, such sectors have actually ushered in a wholly new development phase, away from the attention of those not directly involved in these areas. In the meantime, the old perception prevails among people living in urban areas or among those who have nothing to do with agriculture and the agricultural production, who still remember the time when the sector was going through a deep crisis for a reason or another.
I would provide some data, not to say that the Albanian agriculture is thriving, but to show it is on the right path and keeping on moving on this very path is indispensable for this sector.
The area of the cultivated land has doubled over the past seven years. It is a data that would suffice for everyone to realize what has happened with the agriculture and figure out the transformation it has gone through. When we took office, the area of cultivated land in Albania was estimated at around 125.000 hectares. The cultivated land today is estimated at 240.000 hectares. When we took office, Albania exported one and imported seven in terms of the volume of the agricultural production. Albania today exports one and imports three. The export-import ratio has been halved, because today Albania produces a lot more, because the market offers more locally grown agricultural produce and needs less imported products to meet the domestic market demand.
It should be emphasized this is absolutely not the maximum. Agriculture too today resembles to a reconstruction site. The reconstruction sites are still at a phase when they have yet to guarantee housing and quality living spaces, as people wish for, as their construction has yet to complete, but the territories where construction sites have been launched is no longer like it was a day after the devastating earthquake.
The Albania we inherited upon assuming office was precisely the same Albania was just a day after the earthquake. The earthquake in the country’s finance, the earthquake in agriculture, education, the earthquake in health system and in every other area had been hitting gradually not in a single strike, just like it was the case with the fraudulent schemes in 1997. Very soon, Albania wouldn’t be able to pay wages and pensions. Today we have already removed a lot of ruins and rubbles cause by that earthquake, we have launched the foundations and we have built he structures and we would have to go on with the construction, not simply to have a construction site, but a peaceful place to live in.
As far as agriculture is concerned, what we need to strongly push forward today are the projects already underway on the agro-processing industry. When we took office, we inherited a territory where the agricultural collection and storage points could be counted on the fingers of one hand. Many agriculture collection and storage centres have been built and are operational today. A lot more are needed, yet their number is much higher than the ones using to exist few years ago. The thing here is that the good things tend to be quickly forgotten. Production has started to be totally reorganized, as villagers and farmers no longer need to travel to the nearest markets with their heavy sacks on their shoulders, as they can simply go to the collection centres instead. A number of factories collect agricultural products and this is the right path to go on to further deepen the transformation. Not everything goes all right in the process, as there are things that go bad. The 10 900 initial applications have been filed for the excise-free oil for farmers.
I know quite well that a lot of people could say that nothing has been done and nothing has changed in my village when we talk about the Big Ring Road project, the boulevard project and the urban requalification of the cities’ centres. There are many who think that way. There are many roads and healthcare centres in a lamentable state. However, are there theoretical opportunities, since there are no practical ones, so we do in just seven years everything was destroyed over the past few decades? Are we to be blamed for efforts to put things on track over the past seven years, or are our predecessors to be blamed for letting things keep worsening to the point when entire country resembled to the post-earthquake Thumane in 2013? How all rural roads can be possibly built in just seven years?! We couldn’t afford offering oil for free to farmers previously, because the state has to pay for the oil instead but the state couldn’t afford it. If we have changed the taxation system, the state has taken over the burden, because the state coffer is affected for every tax we scrap. And people call for the taxes to be scrapped, yet they also want the schools, the kindergartens, the hospitals be built. But all these public works cannot be built without the revenues from taxes. Around one billion lek has returned to the citizens through the tax cuts we have adopted. A 10% flat tax on everyone was applied by the previous government. We changed it and applied the progressive taxation system and people with a monthly wage less than 1.6 million lek now pay less in income tax.
Yes, there are many other problems that could be addressed only by going on with our work to create fresh opportunities.
Earlier today, I posted the Durres port project. That project, not only will transform Durres port, but it will have a significant impact on the national economy as it will generate revenue we lack today. Transformation will generate incalculable revenue. It is not only the direct effect on people’s employment and the number of tourists who will visit the country and keep a whole chain of services operational, but it will help for many other people to explore Albania and be attracted by Albania, not just to visit it, but also to visit in the country. Nobody talked about foreign investors to come and invest here because of the situation, image, state, etc just few years ago.
–During the conversation, PM Rama was also asked about the government’s ambitious programme to ensure 24-hour water supply to other areas of Tirana besides the city’s central part. The PM said:
The potable water supply issue is actually a very old issue and I would understand anyone who would say that the rest of the world is sending rockets to the cosmos, while we still keep talking about water supply problems. But what else can we do? How could we avoid such a topic? And I would again go back to the starting point when we took office seven years ago. Reconstruction sites on building water supply systems have been launched in all municipalities across the country and this issue will be ultimately tackled in all urban areas within 2022.
Who is to be blamed for this? For what reason should I be held accountable also for what has not been done over the previous decades or should I hold the burden of what has not been done during all this time?
Again, it is necessary to say that there is no magic wand. There is no theoretical opportunities, let alone practical one that all water supply systems should have been built all over Albania during such a short time span. There is no such opportunity, because we would have definitely done it if such an opportunity was to exist, but one should not forget what has happened with the water supply to Tirana. It is not just a matter of what has been invested or not. The problem is that water in Albania has been a commodity that has been extensively stolen more than electricity and the inherited water supply systems have become obsolete to a large extent, first because in municipalities like Tirana or in municipalities where the population has grown, in fact it has been unable to meet the growing demand for 24-hour water supply because, in addition to the fact that population has grown, hundreds and thousands illegal interventions to steal water have been done.
We inherit a mined field in this area and it is not easy at all. If electricity is vital, water is the life itself and it is not easy to do what we did with the power as a completely different power system is now in place.
– Albania’s economic activities are mainly concentrated in Tirana. What is your plan on this country’s sector? – was one of the questions addressed to Prime Minister Rama, who answered:
PM Edi Rama: First and foremost, it is very important for us to maximally support individuals and small business. By individuals I mean hard-working people both in the public and private sector. Stimulating the work of the individual is definitely the A that small business brings as an engine of self-employment and employment. Today, we are the only country in Europe and in the region that applies zero tax on small business. Zero tax is applied if you plan to open an office, a small business to provide your services.
Second, we are finalizing Albania 2030 vision and the action plan for 2021-2025, and we plan to introduce two measures regarding the individuals’ contribution through work, which means the two measures will directly impact the state budget revenue. One of the measures includes the increase of the non-taxable wage base to 400 lek from a current level of 300.000 lek. This measure is planned to enter into force on January 1, 2023, and increase the wage base to over two million lek to which the 23% income tax rate is applied starting January 1, 2022.
The other measure includes the increase of the minimum wage, which currently is 300.000 lek, yet is should be much higher. This is about for individuals and the small business.
We won’t change anything when it comes to the big business. For us, the flat tax system favours the wealthy people only and it harms the poor ones. The ones who level allegations and claims over oligarchs, if a 9% flat tax rate is ever to be imposed, the state budget will be denied of 250 million euros within a term in office, meaning that the state budget won’t be able to support construction of schools, kindergartens, nurseries and hospitals.
Meanwhile, for the national economy to further grow, we need to support more public investment projects and private investments in particular. In terms of private investment, we see a very positive perspective already, because investor confidence has already been established and investing in the Durrës port project is significant in this regard. It is an investment that will further increase the confidence that you can develop major investment projects in Albania.
