Albanian Government Council of Ministers

Press release of the Minister of Economic Development, Trade and Entrepreneurship, Arben Ahmetaj:

Hello!

First of all, let me wish everybody a prosperous year full of achievements!

2014, the first year of government has been without any doubt a difficult year, but it has also marked the economic recovery of the country and the start of the most necessary reforms for the consolidation of a sustainable economic growth;

It was the year of support to sectors in view of the implementation of a new economic model, that guarantees the strengthening of the economy by increasing domestic production and exports;

It was the year of employment. Over 81.000 vacancies were opened or registered during 2014; And it was, undoubtedly, the year of a totally new relation with entrepreneurship. The government paid off over 360 million dollars of debts arrears and it keeps paying off those debts.

It was the year of the radical change in the climate of business and investments in the country.

2015 will be, as I have referred many times, the year of our challenge to move to the next level of growth, actively assisting new sectors with high potential and producing support packages that will have a direct positive impact on the economy and on citizens.

Also, 2015 will be the year of fight against informality; the year in which reforms will go on; the year of fiscal justice, of foreign investment and of further increase in employment.

Today, I want to focus on an element which is actually the first novelty of 2015: the PPPs.

The Ministry of Economic Development, Trade and Entrepreneurship has been working for some months, in collaboration with many Ministries, institutions and international partners, in order to redesign the current procedures of concessions and of the Public-Private Partnership for the benefit of citizens.

In this regard, a deep and detailed analysis of concessions and public services has been conducted, in order to enable the standardization and the facilitation of procedures, and to move to concrete projects that can be provided as concession agreements, as a new public-private relationship.

Our different approach relates to a new relationship, as I said, of the Public Private Partnership, and it comprehends the possible largest range of public-private contractors, including also services that so far have had a cost for the public finances, besides leaving much to be desired among citizens. Through the new format of the PPP, the new public-private relationship, our goal is not only to increase the efficiency and quality of these services. In addition, instead of absorbing and spending public funds, we can make them produce quality services for citizens and public funds in favor of the state’s budget.

For the first time, a number of sectors such as agriculture, health or realities registration, food safety, hospital service that traditionally and naturally have been at the expenses of the state budget, today they are being seen differently and are approached through public-private contracts in favor of the citizens, providing better quality services. There are approximately 65 projects brought by the line ministries and institutions, with a total value accumulated over the years of 375.6 billion ALL, as a source of direct support for the economic growth.

In transports novelty consists in the interface of concessions for construction, maintenance, practicability of the main roads in order to improve road safety. I would mention here two projects that are already being dealt with as public-private contracts. One is the construction of the segment of the road of Arber, which I believe will be a novelty by the end of winter, so at the end of February, and there will be a tender, and the other one is the maintenance of the road Durres-Morine. There are a number of other roads that will be taken into consideration and put on the market for a public-private contract.

In agriculture – I stressed that this is the first time it is being considered part of the public-private contract – food safety, which is very important for the citizen, besides being one of the European Union’s request, and veterinary service are the two main services.

In health, the main services are the basic medical control, the dialysis service – the first phase is in Korçe, Vlore and Shkoder – possibly the management of a regional hospital and the management of hospital waste.

As far as environment is concerned, the service consists in the collection and management of differentiated waste of central institutions and their dependence; electronic waste; electrical waste; packaging wastes; used oils; organic waste; waste from vehicles to be scrapped; used tires; batteries or the full range of waste that damage the environment and public health. In addition, there is the reforestation of protected areas.

In social welfare there are projects for investments in homes for the elderly, for children, development centers for persons with disabilities, shelters for women victims of domestic violence, etc., as well as projects for the opening of new vocational schools and Vocational Training Centres for new professional studies.

In addition, there are projects in the touristic areas to promote tourism.

In finance or tax collection, there is the e-taxation. One of the most interesting projects being studied by the Ministry of Finance today is the property tax, a new relationship, a concession of the collection but also of the documentation of the property, which will not only make the correct identification of properties, but will also increase revenues from property tax. There are, I have to emphasize, 146 billion ALL funds to be released for the state budget and of course, they will finance other projects, which until now could not be financed due to lack of funding. So the scheme of the new public-private relationship, of the contract, of the public-private concessions, will not only bring more than 350 billion ALL in the Albanian economy, but will also release to the state an amount of approximately 150 billion ALL.

I reiterate, 2014 has been a difficult year for the Albanian economy, but it has been successful. Remember, we started 2014 with huge difficulties because of an irresponsible legacy, with a pronounced economic decline, with irresponsibility in the management of public finances and actually of the entire state, and ended with a growth on 2% and a decisive and positive turn of economic growth.

Today I want to invite Albanian and foreign entrepreneurship to submit their ideas, proposals, studies and concrete projects for public-private partnerships in various sectors of the economy, without restrictions.

This is the first page of 2015 to restore basically a new way of managing public property, which provides modernization of services for our citizens and maximizes profits for them, increases efficiency, reduces costs and relieves the state budget.

Thank you!

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