Albanian Government Council of Ministers

Speech of Prime Minister Edi Rama, at the ceremony for the arrival of first TAP Pipelines in Albania:

Hello to everyone!

There is no doubt that thanks to the TAP, Albania is finally situated in one of the most important arteries of energy in Europe today.

The advantages of this pipeline crossing our territory are really great. Actually, I would not exaggerate if I said that they are countless, considering on the one hand the geostrategic aspect, and on the other hand the whole chain of direct benefits for Albania, ranging from this substantial investment to new ways of learning in this regard, and to indirect employment which, as the minister noted earlier, is the last link of a chain of very positive developments.

However, beyond the geo-strategic aspects, I want to underline the fact that within a few months after the inauguration of works on access roads and the construction of bridges, TAP has become one of the main engines of economic and social growth of the country.

At the moment, 56% of the work envisaged for the first phase of construction of access roads and bridges have been completed. Whereas, the construction and rehabilitation of 100 km of roads and 43 bridges is expected to be completed by the end of this year, with an investment that exceeds the amount of 60 million Euros for this part only.

In addition, we have had the validation of the fact that these access roads and bridges in remote areas have a direct impact on an increase in the standards of living due to the economic growth of rural communities.

Farmers of the district of Korca, from Vishocica to Trestenik, in Shtyllas and Vithkuq; farmers of the district of Berat, from Çorovoda to Potom, and from Seman to Topojë of Fier, do already have a very much facilitated direct access to the markets of the country.

On the other hand, in Çorovodë only hundreds of families have become beneficiaries of the lease for the land crossed by the pipeline. These revenues have a direct impact on the lives of families living in these territories, in areas where the government has not done any investment in over 20 years.

Another very important aspect that I want to highlight today is the social dimension of this commitment. Throughout 2015, TAP has contributed to the rehabilitation of schools, to the organization of campaigns for safety and health in 38 schools and 18 communities.

It took charge of the compensation to 234 families affected by floods in Kutalli and Ura Vajgurore. In addition, other projects are being finalized for school rehabilitation, tourism project for a panoramic view of the Osumi canyon and the expansion of the main bridge in the centre of Çorovodë; the social and environmental program that is expected to have a tremendous impact on the lives of communities living on the trail where the pipeline will pass. And here, I believe that it is worth noting that on the one hand we must absolutely give credit to the Minister of Energy who, since the first day in office, set up a special team to handle all the aspects of TAP-related issues that the government had to solve in real time, and to facilitate the procedures, the bureaucracy of which has often made the Albanian government look ridiculous in the past, in relation to major investments.

Actually, in this regard I am pleased that we have constantly received positive evaluations from the group of investors, and I am proud to note their constant surprise for the fact that the Albanian government responds them in real time and with total efficiency.

On the other hand, we have noted with regret that after entering the contract the Albanian government hasn’t had any kind of symmetric benefit, like any other country where TAP passes, to the neighbouring country in the south, and we have opened negotiations to get a symmetric benefit because we believe that there is no reason that Greece or other countries have benefits for the same work, for the same service, for the same availability, while Albania benefit nothing.

We are very pleased with the fact that the TAP team has been willing to listen to our concern and also to negotiate a symmetric benefit that to us is necessary to put Albania on a par with and every other country, and on the other hand to enable communities and people in our country to directly benefit from the special financing package that TAP has made available to countries it crosses.

I am very confident that this negotiation will be closed soon and that it will be successful, and I want to thank the representatives of the other party who are here to show their willingness and sensitivity in relation to our request which I believe is a very legitimate one.

With the arrival of the pipelines, the project has entered a new and very important phase of its implementation. The technical details of this phase are impressive. I won’t enumerate the tons and the meters and kilometres of length, but I simply want to highlight another fact that makes us happy. A major French company, the Spiecagap, which won the tender for the construction of the Pipeline lot from Bilisht to Topojë in Fier, and which has been having an extraordinary success story for nearly a century, will begin work in Albania.

It is a leading company in this field, and has delivered in complete safety over 50 thousand kilometres of pipelines throughout the world. We consider the arrival here in Spitallë of such an important base of materials as a good omen for our project to create a free economic zone, where we intend to absorb investments for approximately 1 billion dollars, and create at least 15 thousand jobs in the next 5 years.

TAP is a key partner of the government in our endeavour to directly influence the social aspect, where employment, both direct and indirect, of thousands of Albanians through training programs of vocational specialization is extremely important. According to the information we have received, the number of these programs is impressive.

I want to thank TAP’s representatives here, for establishing a group of training centres providing knowledge and specific skills to hundreds of people employed in various construction processes of this magnificent engineering work, and help us in our overall endeavour as government to increase knowledge and professional capacity. This training will enable all these people who receive very specific training, to be ready in the future not only in the domestic market, but also abroad as Albanian specialists.

I remember one year ago that we talked about 500 Albanians who were employed directly in the first phase, which is about to be completed. Actually, we mentioned only half of them, because the number of directly employed people is 1 thousand. Meanwhile, there are several thousands of indirect employed people for services that support this investment. Just as no less important is the progressive increase we expect to have due to the oil import for this investment.

In conclusion, I want to emphasize that if it is true, according to a 2013 study of the University of Oxford to which we have referred, that the GDP increase is expected to be € 160 million in the time frame from the beginning of works for the TAP by the end of 2018, the first phase of works has proved that the first impact of TAP in our economy is and will be even more positive than that. In addition, according to this same study, revenues will multiply as soon as the gas starts flowing, and the Albanian economy will benefit over 1 billion Euros in 20 years. I hope that even in this aspect the study is, not wrong, but conservative, and the figure will be higher.

It is worth noting in conclusion that TAP is not just an investment in itself, but it is an important milestone that allows us to go further, by building the Adriatic-Ionian Pipeline which will link our country with Montenegro, Bosnia and Croatia. A goal of our government, which is already part of the Berlin process and is included in the joint agenda of cooperation in the Western Balkans, to be discussed along with the Blue Corridor Blue, which is the tourist highway that will close the Mediterranean ring, crossing the same trail, in Paris, in the third station of the Berlin process, in July this year. In addition, the construction of the TAP segment to Kosovo is another goal of ours, to build one more connection with Kosovo after the high voltage line will be completed this year.

As the Minister mentioned, another important element is the operation of the ghost TPP in Vlora, for which millions have been invested, and which we believe will be finally used by using gas as an energy source.

Taking into account the very optimistic first data about the possibility discovering a new gas reservation in Albania, which currently is expected to be equal to what Albania has envisaged as exploitable part by TAP, we are put in new conditions strategically speaking, and I believe that the work on the design of the gas master plan started by the ministry with EU support, has come in the right time, in addition to being a step further in the right direction.

Many thanks for your attention!

I wish you further success to continue this work with the same quality, with the same speed and with these positive surprises for the company and all its constituent elements. I assure you once again that unlike what they heard before coming to Albania, and unlike what they could expect if we did not come to government, the Albanian government will guarantee everything in real time, and they will leave in the end with the idea that in Albania there is no bureaucracy, which in fact is not true.

Thank you!

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The arrival of the steel pipes and first machineries that will be used for the construction of the Trans Adriatic Pipeline on the Albanian soil is another step further in the implementation of this project.

The incoming materials will be temporarily stored in Spitallë, Durres, where the main storage of pipes and machinery is located on an area of 90.000 square metres. The materials will be later transported near the pipeline route. The 13.000 pipes with a length ranging from 12 to 18 meters, will be used for the pipeline construction in Albania. They have been produced by the German company Salzgitter Mannesmann International GmbH.

The first ship has transported from Germany 1.390 pipes and 73 elbows. The transportation of pipes, elbows and equipment will be carried out in full compliance with the legislation in force and international best practices, in order to ensure high security and the lowest impact on communities and the environment along the way.

TAP will transport natural gas from the giant field Shah Deniz II in Azerbaijan, to Europe. The 878 km-long pipeline will be connected with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border in Kipoi, passing through Greece and Albania and the Adriatic Sea, before arriving on the shores of southern Italy.

The route crossed by TAP will facilitate gas supply to several Eastern European countries, including Bulgaria, Albania, Bosnia and Herzegovina, Montenegro, Croatia and other countries. TAP will promote economic growth and job creation along the pipeline route. In addition, it will be a major source of foreign direct investments, and this is something that does not depend on grants or subsidies.

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