September, 2008
What is AlbInvest?
• Government agency created in March 2006• Member of the Ministry of Economy, Trade
and Energy (METE)• Mandate covers Foreign Investment
Promotion, SME-s & Exports• Board consists of Government & Business
Representatives
• It is a dynamic and client oriented agency• Staff body: 32 members, graduated from
schools from 9 countries and speak 11 foreign languages
AlbInvest’s Mission
AlbInvest
Business communities Central and local Authorities
International Partners
Image BuildingFor Albania
Building capacities, Boosting ExportsImplementingGov policy
Increasing FDI
AlbInvest’s Mission
• FDI Promotion– Assistance from A-Z in the initial steps: Information, Visit organisation,
Investment possibilities.– Identification of potential advisors, suppliers, as well as projects in Albania– Business Missions – in Albania and Overseas– Promotional materials & campaigns
• SME Support– Influences Government policy on a range of issues affecting SMEs– SMEs Credit Guarantee Fund and SMEs Competitiveness Fund – Interreg programs - in support of SMEs– European charter of SMEs
• Export Enhancement and Needs Identification– Export guarantee credit fund – 200 million ALL for 2007– Market research for Albanian products– Business missions in potential markets for the Albanian Brand– Training for export companies– Exporters’ Guide
Services to Potential Investors
• Gather/Provide updated information (service free of charge)– Information on government initiated incentives and
programmes in support of investment decision-making• Identify sites and buildings for conducting business • Set up a manufacturing operation or business service in Albania • Find indigenous suppliers/JV partners• Signpost you to the right person from the public sector (Central
and Local Government Body, Municipalities and Communes)• Provision of Aftercare Services
Project WorkflowInvestment Department
Lead Generation Unit
Project ManagementUnit
Client AftercareUnit
Macroeconomic Stability
Economic growth around 6% National Income per capita
about USD 2, 887 (year 2006) increased to USD 3, 408 in 2007
Inflation 2.9% Foreign Direct investments:
260 million EURO in 2006, reached 460 million EURO in 2007
Unemployment reduced to 13.2 percent
High export growth rate of 27 percent in 2007 compared to the previous year
GDP Structure by sectors 2006 (in %)
22.1
14.3
33.3
12.5
17.8
INDUSTRY
AGRICULTURE
CONSTRUCTION
TRANSPORT
OTHERSERVICES
NATO & EU
• EU integration. On 12 June 2006, Albania signed in Luxembourg the Stabilisation and Association Agreement and the Interim Agreement with the EU. As of 1 December 2006, the Interim Agreement for trade and related issues has come into force.
• NATO integration. All political parties support integration into the NATO and the EU are dedicated to reforms and necessary changes in order to realise them.
Investment climate: Government reforms.
• Shorting the time needed for registration new business-One Stop Shop NRC .
• Simplification of licensing procedures.• Reorganization of the inspection system• Reform in tax and procurement system- e-tax
and e-procurement.• Reduce fiscal burden- implementation of flat
tax, small business profit, and profit tax reduced by 50 %.
• Reduction in health and social contribution.
Investment Incentives• 100% VAT credit - importers of machinery and equipment for use in taxable economic activity
• Façon producers are not subject to VAT - for services provided to their contractors.
• Encouragement of power production
Fiscal incentives, such as customs duty exemption on imported machinery and reimbursed customs and excise duties for imported liquid or solid combustibles, are aimed at investors who:
– establish new production plants with an installed power over 5 MW, , using liquid or solid combustibles, and
– rehabilitate existing plants. (Law no.8987, dated 24.2.2002 “For the creation of facilitated conditions, concerning the establishment of new plants for the production of power”).
• Status of “Favoured Persons” – Relates to tourism activities. A “Favoured Person” investing in tourism development is entitled to:
– Exemption from the customs duties and excise taxes on imported goods for the sole purpose of investment and functioning of the “favoured activity”
– Exemption from the profit tax for 5 (five) fiscal years from the time of development completion of the investment. For the 5 following years he/she will pay only 50% of the profit tax. (10 years tax incentive)
– Profit from a reduction of the profit tax up to 40%, if the profit is reinvested in Albania– The criteria to receive the status of the “Favoured Person” are elaborated in article 7 of the law
no.7665, dated 21.1.1993 “For development of tourism zones”.The criteria to receive the status of the “Favoured Person” are elaborated in article 7 of the law no.7665, dated 21.1.1993 “For development of tourism zones”.
• Leasing of the state-owned property at below-market rent rates and, for production activities, with rate reductions according to investment and employment levels (Refer to Fact Sheet No.9).
Energy
The only country in Europe offering immense opportunities for hydro power.
44,000 m2 total hydrographical area, or 57% more than it’s total territorial surface area
• 70 small and medium Hydro Power Plants up for concession.
• Fieri and Vlora Thermo Power Plants– Joint venture: Atermon SA - Roder &
Blackwell [Fier TPP)
• Opportunities for solar and wind energy once hydro power is exhausted.
• Combined with the new Concession Law, the Government and KESH will guarantee the market for energy produced from the above, for a period of 10-15 years.
ENERGY
Opportunities: strategic sector privatizations to come:
• ARMO –Albanian Oil Refining and Marketing Company (already privatized)
• Distribution Department of KESH (the Albanian Power Corporation)
• Privatization of the ARMO Marketing Company (ARMO sh.a)• Two refining plants in Fierand Ballsh strategically located
close to the most populated areas of the country and both of the main ports (Durresand Vlore)
• Terminal in the port of Vlore, strategically located both for import and export purposes with large storage capacities.
• Privatization of the Distribution Sector of the Albanian Power Corporation Albanian Power Corporation.
SEA PORTSSEA PORTS
SEA PORTS
•Durres
•Vlora
•Shengjin
•Saranda
DurresDurres
VloraVlora
SarandaSaranda
ShengjinShengjin
1212
CIVIL AVIATION AND AIRPORTS
Infrastructure and facilities:
• Tirana International Airport
• BOT Concession to a German Concessionaire, since 2004. There were 600 000 passengers during 2004
• New modern Terminal for 3 Million passengers/year, foreseen up to 2024
• Only during 2007 were 1,1 Million passengers
• Another new Airport in Kukes (North Albania)
• 7 other civil and military airports
• No regular internal civil aviation service Traffic:
• ~ 600% more passengers/year than 12 years ago• more than 50 flights/day• 9 Italian cities with direct connection
1313
Industrial Zones
• 6 potential Industrial Zones Identified.• Cooperation with GTZ and World Bank for
three feasibility studies.• The Albanian parliament passed the law on
Free Zones.• The identified sites are Greenfield, with
perfect vicinity to infrastructure, sea port and logistics.
• Bid for “ Developers” to start soon.• Full government support for the
development of the sites.
Spitalle - Durres• Total surface of 850 ha.• Almost 50% of the
population living between Tirana and Durres and over 70% of business operating from this area.
• Tirana-Durres area, the most numbered qualified workforce in Albania.
• Within close vicinity to Durres Port and Mother Theresa International Airport.
• Excellent connection with Kosovo market through transnational road segment Durres – Morine – Prishtine
• International Conference: Appointment June 10th, 2008, in Tirana
8th CORRIDOR AND 8th CORRIDOR AND DURRES-MORINE MOTORWAYDURRES-MORINE MOTORWAY
PRISHTINEPRISHTINE
Korce
Shengjin
Sarande
Vlore
THESALONIKITHESALONIKI
GREECEGREECE
NISSUSNISSUS
DURRES TIRANE
1616
• Ju Mirepresim Ne Shqiperi
• We Welcome You To Albania
Address: Blvd. Gjergj Fishta, P.
Shallvareve
Tirana, AlbaniaTel: + 355 4 252
976/886 Fax: + 355
4 247633 E-Mail:
[email protected] Website:
www.albinvest.gov.al
