Today’s address of Prime Minister Edi Rama at the Assembly:

Given that the project we are discussing today is in the wake of a major reform to transform this sector, I believe this is the right moment to talk with figures and facts about the legacy of the sector, the current situation of the sector and the expected situation of the sector.

It is amazing how the people responsible for this legacy of the sector have the courage to speak as if they were watching the horizon from the beach towers, and not as if until yesterday, until 18 months ago, they had the power to do the things they say today. Not only did they not do them, by they have left behind an unutterable mess.

Concretely;

The Albanian Power Corporation, a key public enterprise for this sector, was left by them with 540 million dollars of debts created by made directly and blindly by the government.

The Transmission System Operator is another key enterprise of this sector which was left by them with a debt of 20 million dollars, and without any possibility to perform its function of operator in the market and transmission system, because they failed to pay dues to the distributor.

Everybody knows that the interconnection line with Kosovo was left blocked for totally completely unknown reasons.

In addition to a totally absurd legal situation, the Distribution Operator was left in complete economic and technological collapse, with a debt of 1 billion dollars which exceeded by several times the company’s capital. Not to mention uncollected invoices that totaled 1.3 billion dollars and led to an historical level of 48% in losses, which in the last moments ended up to 51% of loss!

Only in the period from January to August 2013, when they thought that they could keep the power by using and abusing everywhere, they accumulated $ 220 million of debts at the expense of the company by winking at every king of law offenders in order to not pay for electricity.

The 150 million Euros lost every year from theft of electricity were directly offset with the budget created by those who pay for electricity and those who pay taxes. With a ridiculous and scandalous tariff system that would only stimulate abuse and did not meet any need, neither for investment nor for content. With a production partially liberalized, but with outrageous contracts that still to this day represent a noose around the neck of the system, in addition to being a debt paid off again by citizens who are paying for energy, and by citizens who pay taxes; with a model of blocked and non-functional market in continuous emergency; with a legal framework that does not respond to the reality of the sector and did not absolutely guarantee any future for the sector.

This is the situation we have inherited.

What is the current situation and what have we done in just 18 months? I will show again figures and facts, because it’s not worth arguing with them using reason and logic beyond figures and facts.

We managed to considerably reduce the level of annual losses and today we are at a level of 31%, which is like night versus day compared to 18 months ago and, now on the basis of a fundamental stability in the sector, we have full right to believe it will go below 30%.

We increased by 100 million dollars the level of annual receipts by the beginning of April 2015. Imagine that until early April 2015, within a period of 18 months, we have managed to exceed 300 thousand contract agreements with debtors, whom they abandoned on the street along with entire system, because their minds were focused on streets, and only on streets, and as a consequence everybody was left on the street!

The total financial value of the contract agreements signed is 50.5 billion ALL, or 505 million dollars. On the other hand, the amount of arrears written off by the mitigation scheme that we proposed to debtors is 39 million dollars. In 2014, the Albanian Power Corporation purchased at a price less than 2.89 Euros compared with 2013, and less than 15.98 Euros compared with the average price of the last 5 years.

In 2014, the Albanian Power Corporation sold at an average price higher than 15.51 Euros compared with 2013 – and I am talking here a about sales made abroad – and 31.4 Euros more than the average price of the last 5 years. Calculations are simple and clear, and the difference is like night versus day and darkness versus light.

Compared with 2013, although with 40% less flow Fierze, resources have been used more efficiently and energy reserves have significantly increased. Investments made during 2014 have enabled 12 hydropower stations to start working with a total capacity value of 480 million dollars. Another 8 hydropower stations are expected to start working by 2015, with a planned investment of 280 million dollars. Debts accumulated by small producers, who used to receive contracts with children’s drawings and then bear the entire burden of the funding, have been paid by 70%.

This debt we have to small producers, to private producers, and which exceeds 60 million dollars, will be fully repaid by the first half of 2015. Meanwhile, it is clear that the support received by the World Bank and other financial institutions to invest in the system is a direct result of the reform that we have made in this sector, as a precondition to have this support.

This condition has existed before, but nobody committed to meet it because, for them, the policy of winking to thieves of and abusers with energy was the only policy.

The total chaos of the system, the total confusion within the system and violation of the rule of law in the system were clear political choices to keep the power at all costs, and which pulled the state to pieces. A first funding of 115 million dollars has been guaranteed from the World Bank to launch a major project for the recovery of the energetic system. This project is expected to exceed 400 million dollars for the distribution sector, which is our major challenge. For now, thanks to a total understanding of the vast majority of citizens and thanks to their support for this reform and these measures, we are able to start investing in the sector. Precisely because this reform has yielded results and has already a future, since the road opened ensures sustainability and has been set in motion by grant funding. So far, to this day, we have 15.2 million grants for projects to increase the efficiency of electricity. The tariff reform, the much sought after reform, the long-awaited reform, the long-delayed reform of the energy sector that revised the fundamental distortion of the market and ensured alignment with costs, by removing abusive ceilings of 300 kilowatts and by unifying the price, lower than the price of yesterday, from the average of 10.5 to an average of 9.5, has secured another cornerstone to take the sector in the right direction.

In addition, as we committed, we indemnified with an addition to the payment, rather than with compensation theories of “Bring us the bill and we will compensate for”, over 210 thousand families classified as poor and needy. There are over 210 thousand families who receive each month, directly, as an addition to the salary, a pension supplement to face the effect of the tariff reform.

We have revised the formula to determine the purchase price of energy by private HPPs, thus ending a scandalous chapter of abuse and financial speculation at the expense of public finances and at the expense of taxpayers and consumers who pay for energy in the country.

We have increased by $ 40 million dollars the funds for production and have moved to a whole new stage for the management of the cascade, through water control and an optimal regime. This has stopped political interference such as “let it be filled because we are going to sell”, and when it was filled more than it could hold, the whole area of Shkodra and lower Shkodra would be flooded, and people would be told “this was because we had the heaviest rainfall of the last 100 years”. The heaviest rainfall of the last 100 years occurred for five consecutive time within one year, but this one was slightly heavier than the one that occurred a few weeks ago.

We started procedures to breach concession contracts with over 30 hydropower plants in potency, when the concessionaire has failed to fulfill obligations. The time when concession contracts were signed and left in the drawer, unmonitored, and the so-called concessionaires would made of it a bond for the illegal market of contracts is over.

We have solved the problem for building the infrastructure that will replace project of the cascade in Devoll. Like all the problems inherited in all sectors, this was also an inherited problem, the big the problem inherited across their major project that was roads, roads and only roads, by those who not only did not complete even one road, but abandoned every road project.  While we, in addition to covering all the debts they had to enterprises for what small proportion of road they did, they have done little way, are facing the challenge to provide funding in order to conclude the projects that were started with 5%, 3% and sometimes even 1% of the total amount in order to have the election ribbons cut.

We have ensured to continue and have the construction of the 110KW South Ring line thoroughly funded. In addition, the investment for both lots in 2014 amounted to 186 million dollars, work for the construction of Tirana-Pristina interconnection line of 400kW has started and investment for the preliminary phase in the first Lot has exceeded 4 million Euros.

A very important agreement has been signed on the project for the market liberalization that will be followed by the integration of the market on a regional level with Kosovo. This is the beginning of a larger project for a regional market on which we are discussing with other countries.

To conclude, let me say that we have invested approximately 9 million dollars on dam safety in the HPPs of Fierzë, Koman and Vau I Dejës.

I believe that all these figures and all these facts clearly show where the sector was 18 months ago, where it is today and where it will be by the end of the next 5 years. We are confident that for a sector with the biggest problems, the heaviest burden of obligations and of the greater financial pit, we will turn the energy sector of our country in a sector that not only is independent without any need to be financed from taxes to compensate for losses, but it will be a profitable sector of our economy.

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Second speech of Prime Minister Edi Rama at today’s parliamentary session:

As for the “bad things” let’s talk again with figures and facts, because the effort of entering an alogical discussion it’s not worth it.

What was the situation, what is the situation now and what is the situation to be expected in relation to the whole list of “bad things”?

In September 2013 we had the accounts of five consecutive years which marked and economic decline. Actually, from a point where the increase was 7.5% in 2008 – and we are taking it for granted, although we know how INSTAT used to give numbers back then – it went down to 1% in 2013. Taking into account the figures by INSTAT, which also are to be taken with due reservation, state budget revenues have been marked only by decline for three consecutive years, as they have been, according to the figures of your INSTAT, for five consecutive years.

Along with this office, we received a mountain of debts of 720 billion dollars. They were debts to companies for uncompleted roads which were financed by companies themselves and were left unpaid. They were debts to companies that furnished hospitals which, we shall not forget, were lacking drugs back then. And I don’t think this was so long ago so that people have removed from their memory the endless news showing desperate people in queue in pharmacies or hospitals, with prescriptions issued by doctors in the hospitals to buy the missing drugs. Meanwhile, not only hospitals have been furnished with drugs today, but the decrease of drugs price, as we committed, has allowed us to save 70 million dollars.

The real public debt that was kept from Albanians, that was kept from our international partners, was much higher than the one that was stated to be 60%.

The state coffer was empty. Let me remind you the conditions in which you left the state reserves for emergencies.

150 million Euros would be systematically lost in the black pit of the power sector, and so on. I’m not dwelling into this.

Now, let’s count the bad things.

Starting from the last quarter of 2013, we have generated 63 million dollars more than the same period of the year before, or 6.4% more income.

In 2014, we collected 395 million dollars more than the same period of last year, or 12.1% more.

Revenues in 2013 were actually 359 million dollars more than the income of 2008.

From 2008 to 2013 your revenues increase was lower than our revenues increase in a just one year.

During 2013 you reimbursed 7.4 billion Leke, and I am including here also the share reimbursed by us in the last period of 2013, such as the Value Added Tax. In 2014 we brought the reimbursement level to 100 million dollars, and in addition it can be done automatically. There is not a single company today that can claim that, in order to have VAT automatically reimbursed, they have to pay as they used to do, and share the reimbursement amount with the finances ‘’swarms’’ or with those connected to these swarms, who stood in a position even superior that finances in the same building.

Let’s look at customs, another ‘‘bad thing’’ we have done to this country. Actually, we have collected 175 million dollars more.

Let’s move to another ‘‘bad thing’’ we have done to this country. 350 million dollars of debt already paid to the companies that you left on the threshold of bankruptcy – I am talking about 2014 – while we have committed to fully repay every cent of the debt that you left weighing on us.

Hadn’t you left behind those debts, you would be entitled today to ask us why we haven’t done more investments, but you don’t have the gall to do this – actually, you do because it takes just your insolence to have the gall to say such a thing – since, indeed, we are repaying one by one every debt.

Let’s continue with another ‘‘bad thing’’ we did to entrepreneurship. We included in the 2014 package 10 facilitating measures that have enabled 97% of Albanians to pay less than they used to. In addition, after removing the notorious flat tax, they now receive even an higher salary than before.

We added another 12 facilitating fiscal measures in 2015.

Another ‘’bad thing’ we did to Albanians was the removal of the ceiling pension and the radical change of pensions’ scheme. This brought the end of the abusive and asphyxiating pressure of the 240 thousand Leke ceiling that nobody could overcome, because that was the limit laid down by you, and you would keep playing around every year with inflection indices that were passed off as pension increase.

Thanks to our pension reform:

·   All those women, mostly housewives who were destined to receive no pension, because they are unemployed or because they don’t have any contributions paid, receive today a social pension.

·   Likewise, another “bad thing” we have done was increasing up to 350 thousand Leke the pension of ordinary people who have paid social insurances.

·   It’s better to point out here that, instead of another pit where the deficit would increasingly deepen at the expense of contributors and of the future, and it would be increasingly impossible to maintain a pension scheme within which each year the number of those who are entitled to receive a pension would grow every year, today we are proud to say that throughout the first year of our government we succeeded in marking a positive sign. This means that we have ensured more contributions than pensions to be provided. This is another ‘’bad thing’’ within which we can say to have increased the number of contributors and of direct income for the Institute of Social Insurances. So, fearlessly we can say that this is an absolutely exemplary figure, which last year reached approximately 95 thousand new contributors.

·   After years of abuse, disregard and travesty towards the battered category of miners, who were promised over and over to have the retirement age lowered, we succeeded in lowering this age to 55 years.

Actually, 2280 was the number of miners who until today received a pension of 8 thousand Lekë – a real shame – while today thanks to our scheme they receive as much as twice the amount.

These are some of the “bad things” of which we are very proud.

Let’s move to the economic growth. I told you that the figures of your INSTAT show that the growth trend has increasingly gone down. Actually, as the last report by the IMF confirmed, but as it is confirmed also by figures, economic growth is back. If we refer to 2.4% growth of the fourth quarter of 2014, we are totally correct when we say that the target of 2% economic growth in the first year, in the most difficult year and the most scandalous year of your legacy, was totally achieved. Likewise, the target of 3% growth for this year is totally achievable.

Now, let’s look at employment, since we are very fond of this issue. In the most speculative way, you refer to a figure which for us is encouraging, the figure of people registered in the job offices in order to find an employment. It is an elementary thing, world widely known, not to specialists, but also to those who heard about this topic even once, that increased employment expectancy is accompanied by an increased number of people who seek employment in the job offices. But, if you do not want to speculate but to rather look at the real employment figure, then I will refer to the same source, which is INSTAT, to which you refer when saying that unemployment has increased. Actually, it is not unemployment to have increased, but rather the number of jobseekers who address to the state offices. Meanwhile, the same source, according to the survey on labor forces related to the fourth quarter, shows an increase of 8.5% in the number of jobseekers in 2014 compared with 2013. In addition, it indicates an increase of 82.629 people employed and provides clear references to the areas where this employment increase has occurred.

Let’s look at another “bad thing” of which we are still proud. It is about consumption. If we were in a depressive phase – as the DP is and it tries to convey its depression to Albanians and share it with them – we would not see an increase in consumption, but rather a decrease. This is the simplest indicator, but the more meaningful.

In the fourth quarter of 2014, sales in retail trade have increased by 4.1%, and this is the most significant indicator. In the fourth quarter of 2014 this increased index shows clearly that there has been a steady growth of consumption, not to mention specific consumer growth within other items, such as food consumption increased by 11.3%. This fact shows what we said earlier: by easing the fiscal burden of small taxpayers, we create the opportunity for them to buy more.

Actually, economy has responded us with figures.

In January 2015, exports have reached 180 million dollars. In February 2015, they have increased again and if we refer to March, there is a clear trend of stable growth compared to the previous year.

Having said all these, I want to put an emphasis on a true and very simple conviction. What I just said does not mean that we have passed from hell to heaven, nor from a total economic and social depression that you left behind in a state of happiness. They just mean that we have turned the country in the right direction and have laid the foundations in all sectors through our reforms, in order to ask for more and get even more positive results, whether this year or in the following years.

And to conclude, I will answer to a question I received from the beach tower. Why are Albanians leaving?

First is, I believe that it is an insult to the intelligence of Albanians telling them that what is happening in these last weeks is connected to some sort of decline in the economy or to some sort of destruction that is easily readable, if we compare it to one, two or three years ago,

No, it is not!

Just as neither I nor we will say after a month or two, when everything will be back to normal: see? The sudden flow of Albanians leaving the country stopped because the economy improved in such a way that they decided not to leave. These are ridiculous abuses.

The fact is that we are dealing with a moment of huge misconception created on the one hand, in relation to a declared need of Germany for approximately 45,000 foreigners, who are skilled professions and are required based on certain reasons of the German economy, in relation to people’s need, desire and aspiration to seek there a better life. This is something about which we cannot say why they are doing it, because we are not the ones who we say that we are second after Germany. We were second after Germany yesterday, we are second after Germany today and we do not claim that we will make Albania second after Germany, tomorrow.

On the other hand, the criminal element has entered into action based on this misconception. Suffice it to look at the neighboring countries to understand that we have the same situation. Exodus from Kosovo that happened in parallel is today amortized. What happened? Did the economy of Kosovo changed within these weeks? No! The flow stimulated by criminal elements was curbed. Meanwhile, if we look at the region, Serbia has had an exodus trend much higher than ours for years, in many years, and still to this day it has a much more massive departure than ours.

Nobody can deny the fact that there are poor areas, especially in the northeast, and that to some people it is extremely difficult to earn a living today. Nobody has denied this and shame on you for connecting this fact to this government.

We did not commit ourselves to transforming Albania into paradise. We do not have a magic wand with which we can rebuild and rearrange in 18 months what you ruined brought to pieces in 8 years.

We strongly believe that Albania is moving in the right direction, and we are fully convinced that Albanians are not sheep so that you can be their shepherd. Albanians are much more intelligent than that and have the skills to evaluate, judge and then give their judgment. I am absolutely ready to wait together with you for Albanians judgments, on June 21 or after two years. And be sure that I am not wrong if I say that the negative judgment of Albanians will be again on you, because not only did you left the country in such miserable situation, but you haven’t reflected at all about what you did and above all, what you are trying to do in leaving on our back everything negative that was inherited. This is something that nobody buys anymore.

Thank you!