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Albanian Times, Vol. 2, No. 1, January 8, 1996From: Albanian Times <[email protected]>The Albanian Times (by AlbAmerica TRade & Consulting International) DirectoryIn this issue:CONTENTS[1] Flights to Tirane on Rise[2] Montenegrin Authorities Block Two Way Traffic With Albania[3] Albania Cracks Down on Customs Fraud[4] Albania Ranked 82nd Best Place to Live[5] Privatization Grows in Albania[6] Greece Welcomes Move On Visa Requirements[7] Industrial Production Fell in Third Quarter[8] ATMs Soon in Tirana[9] Albanian Tourism on Rise[10] Handbook on Albanian Labor Market[11] $800 Million Investments In Tirana During 95[12] Albanian Left Backs Market Reforms Before Elections[13] Albania Lifts Visas For Greeks[14] Job Training Center Opens in Vlora[15] Cigarette Smuggling Hurts Domestic Production[16] Bulgaria to Complete Rail Link With Macedonia[17] Albania May Send Troops To Bosnia[18] Albania to Reopen Rail Link With Montenegro[19] Privatization Vouchers for Unemployed[20] Nebex Targets Gold Prospects in Albania[21] Government Clears Infrastructure Bills[22] U-S Plans Office in Kosova[23] Albanian, Italian Companies Have New Heating Solution[24] Half of Albanian Exports Go To Italy[25] Greece Continues to Expel Albanian Migrants[26] To Drink Or Not To Drink[27] Berisha Outlines Targets, Calls for Social Programs[28] As E-U Chair, Italy Vows Support for Albania[29] Official Paints Rosy 96 for Oil, Energy[30] Albania's Mining Output on Rise[1] Flights to Tirane on RiseFlights to Tirane's Rinas Airport are set to increase to 60 per week, nine times the 1991 figure, the Albanian news agency ATA reported. The number og passengers using the airport has risen to an average of 4,000 per week. Some 14 airlines, including Malev, Alitalia, Swissair and Austrian Airlines, now operate services to Rinas, some for the first time, ATA said. In 1991, 60 percent of passengers were foreigners. Now, 55 percent are domestic travellers, mainly business people, the agnecy added.
[2] Montenegrin Authorities Block Two Way Traffic With AlbaniaMontegrin custom officials have blocked passage of vehicles carrying goods from Albania into Montenegro, Voice of America in Albanian reported on January 12. Montenegrin trucks are also blocked at the border with Albania. The move comes after Podgorice authorities doubled tariffs imposed on Albanian citizens entering Montenegro since the beginning of the year. The reasons for stalling border traffic are still unclear. The border checkpoint at Hani i Hotit was opened weeks ago after a three and a half year long closure due to the UN economic embargo on the former Yugoslavia which Albanian had pledged to help implement. The new move by Montenegrin authorities has frustrated hopes among Albanian business people, VOA said. Both sides are expected to hold discussions on the issue.
[3] Albania Cracks Down on Customs FraudAlbanian authorities have discovered financial abuse in some customs agencies in the city of Durres, officials said. A number of customs agencies engaged in illegal activity by using false clearing papers. The false customs receipts and stamps were said to belong to Italian companies operating in Albania and were confiscated. Authorities have begun a large scale investigation believing that the incident may be related to a fraudulent ring with outside connections. (Albanian Times, January 12)
[4] Albania Ranked 82nd Best Place to LiveUsing its controversial yardstick, the Human Development Index, the United Nations ranked Albania the 82nd best place in the world in which to live. The index takes into account income rankings and less easily qualifiable dimensions such as political freedom, environmental sustainability and racial and gender equality. The 10 best places to live, starting with the most desirable are Canada, the United States, Japan, Netherlands, Finland, Iceland, Norway, France, Spain and Sweden. The 10 worst places to live, ranked starting from the worst, are Niger, Sierra Leone, Mali, Ethiopia, Afghanistan, Burkina Faso, Guinea, Mozambique, Somalia and Burundi.
[5] Privatization Grows in AlbaniaThe head of the Albanian National Privatization Agency, Niko Glozheni said 7,150 people have become shareholders in the second group of 30 commercial companies which were created by the government's mass privatization program. "The process of privatization has been successful in 1995," Glozheni said. He told reporters that at the end of the second round of privatization, the total value of bonds used was estimated at about $1 billion. Glozheni said that the enterprizes set up in this round were more successful than those of the first round. The plastics factory in Lushnja had the largest number of shareholders with 750. The registration of 20 companies in the third round started on December 29. (Reuters)
[6] Greece Welcomes Move On Visa RequirementsGreece welcomed Albania's lifting of visa requirements for Greeks, saying the move will help improve fragile relations between the two Balkan neighbours, Reuter reported on January 11. ``This decision now ends discriminatory treatment, eases contact and especially economic cooperation between the two countries,'' a Foreign Ministry statement said. Albanian business community in Gjirokaster also expressed satisfaction over the move, Voice of America in Albanian reported. President Sali Berisha issued a decree on January 11 lifting the visa requirement he had imposed in September 1994 during a crisis in Greek-Albanian relations. Since then Greeks had been the only European Union nationals to require a visa. Albania lifted visa demands for all EU nationals after emerging from decades of Stalinist isolation in 1990. Athens and Tirana clashed after Albania convicted five ethnic Greeks on espionage and arms charges, which led to mutual recriminations and a tit-for-tat expulsion of diplomats. A visit by Greek Foreign Minister Karolos Papoulias to Tirana last March warmed relations but talks in Athens in August failed to resolve a disagreement over independent schools for ethnic Greeks in southern Albania. Also testing relations is a long-standing demand by Tirana for Athens to allow some 300,000 illegal Albanian immigrants in Greece to take up seasonal jobs legally. Athens says the illegal flow of immigrants, who are a major factor in supporting the Albanian economy, must be stemmed before they acquire legal status.
[7] Industrial Production Fell in Third QuarterThe index of industrial production has in the third quarter of 1995 reverted to a lower figure of 71,9 percent (although about 33 percent higher than in 1994). Apart from electric energy and metallurgy, all other sector of of industry achieved between 30 and 90 percent production, testifying to failure to exploit existing production capacity. During the third quarter, production of phosphate fertilizers began, but the chemical industry remained at a production rate of 32 percent. Mine production has yet to reach triple figures, but has done better than the 32 percent production of food industry, 35,2 percent in the clothing industry, and 32 percent in shoe leather. And while agricultural production is increasing, the food industry is not responding with processing capacity, leaving the market open to a flood of imoported food. (Koha Jone)
[8] ATMs Soon in TiranaAlbanian Savings Bank has plans to introduce automatic tellers in 1996, Radio Tirana reported. The first ATMs (bankomats) will be set up in Tirana to gradually expand in all other districts. The bank also plans a massive introduction of checking activity in a country where many people still go around with cash stashed pockets or bags.
[9] Albanian Tourism on RiseIn 1995, Albania was visited by 57,000 tourists or 27.8% more than the previous year, newspaper Dita reported on January 11. Most of the visitors were from European countries. Last year, investments in tourism amounted to about $150 million. Such type of investments are exempted from income taxes for the first five years. For the subsequent five years, investors in tourism pay only 50% of the normal taxes. Land rents are also indirectly subsidized by deductions. Customs regulations concerning the import of materials needed for the construction of hotels and other tourist infrastructure have also been simplified. Southern Albania is a preferred target for most tourist. They travel there from Corfu or other parts of Greece but spend only a few days.
[10] New Book on Albanian Labor MarketThe Statistics Institute Instat has published the handbook "The Albanian Labor Market in Transition." This is the first publication of its kind in Albania, and contains detailed data about workers, unemployment, and pay. The figures have been extracted from essential data recorded in the last 10 years in Albania. The most noticeable changes occurred during the fall of communism. This inevitably difficulyt transition for Albania was accompanied by a great deal of social distress in both employment and living standards. The labor force shrank significantly. The working age population of Albania is now 1,780,000 or about 100,000 less than in 1989. Labor force in 1995 included 1,420,000 people, of whom only 1,160,000 are considered as employed, the rest are job seekers. The most painful aspect of the Albanian society is the number of working age invalids, which has risen to 23,138 or 12 percent more than in 1989. Unemployment in 1995 fell to 12 percent, the lowest level in the last 4 years. Most of Albanians are employed in the private sector. (Republika)
[11] $800 Million Investments In Tirana During 95In 1995, foreign and domestic private investments in Tirana alone amounted to $640 million against $160 million in public investments. Priority sectors for both foreign and domestic investments in Albania during last year were the Telecom, Energy Corporation (KESH) and infrastructure in general. (Albanian Times, January 11)
[12] Albanian Left Backs Market Reforms Before ElectionsLeaders of Albania's opposition Socialist Party, pledging to press on with market reforms, said on January 10 they were confident of ousting ruling Democrats from power in a general election this year. ``We are heading for elections with the growing confidence of achieving a convincing victory,'' Socialist vice chairman Servet Pellumbi told a news conference. Parliament must be dissolved in March but no date for Albania's third free general election has yet been set. Pellumbi said the Socialists would draw up an election manifesto in March, sanctioning further market reforms but with a kinder social face, introducing packages to aid those hurt by the economic transition. He added: ``There will be neither a turning back nor a lowering of the speed in proceeding with reforms.'' International financial organisations have praised Albania's economic record since the Democrats took over government, reining in galloping inflation to six percent in 1995, boosting economic growth, and keeping a stable exchange rate for the local currency, the lek. Allegations of corruption in the government and judiciary, unemployment and crippling power shortages might turn the tables in favour of the left, political analysts said. Pellumbi said the Socialist Party was open to alliances before and after the elections in order to secure a more professional government with a broader social base. Pellumbi gave a guarantee that if his party came to power, it would respect all international agreements and seek to comply with conditions to gain membership of NATO. (Reuter)
[13] Albania Lifts Visas For GreeksAlbanian President Sali Berisha issued a decree lifting visa requirements for Greeks in a further effort at improving relations between the two Balkan neighbours, Reuter reported on January 10. ``The presidential decree orders the removal of visas for Greek citizens entering the territory of the Republic of Albania,'' a statement from the presidential office said. The Greek embassy in Tirana said it had no immediate comment on the surprise move. Athens had long wanted Tirana to allow Greeks to travel freely in and out of Albania without a visa, along with citizens of other European Union countries. Albanians still require visas for Greece. Berisha slapped a visa requirement on Greeks in September 1994 after Athens closed its border with Albania. The two Balkan states clashed after Albania convicted five ethnic Greeks on espionage and arms charges, which led to mutual recriminations and a tit-for-tat expulsion of diplomats. Ties began improving following a ground-breaking visit by Greek Foreign Minister Karolos Papoulias to Tirana last March but subsequent talks in Athens failed to resolve a disagreement over the establishment of three independent schools for ethnic Greeks in southern Albania. The stalemate led the Greek government to refuse a deal allowing some 300,000 illegal Albanian immigrants in Greece to be able to take up seasonal jobs legally, a long-standing demand by Tirana.
[14] Job Training Center Opens in VloraA Danish-Albanian training and employment center has opened in Vlora, Rilindja Demokratike reported on January 10. The project, offers computer and language courses as well as training for plumbers, heating installators, electricians and other job professionals. The Albanian government is providing $200,000 and the Danish Ministry of Labor is adding $280,000 to fund the center. Danish and Albanian personnel will be teaching there. (OMRI)
[15] Cigarette Smuggling Hurts Domestic ProductionAlbanian tobacco and cigarette production is being hit by by increased smuggling of foreign brands, newspaper Dita reported on January 7. Albania's tobacco industry employs about 100,000 people. In 1994, domestic production was 28% of that in 1990, according to the Ministry of Agriculture and Food. It increased again in 1995 but only to 43% of the communist-era production. Albanian tobacco can hardly compete with Bulgarian, Greek or Italian products, which are directly or indirectly subsidized, the paper said. About 80% of all cigarettes consumed in Albania are imported. According to government figures, only an estimated 27% of imported cigarettes are taxed. A cigarette factory in Shkoder has been closed down and another in Durres, the largest in Albania, works on reduced capacity. (OMRI)
[16] Bulgaria to Complete Rail Link With MacedoniaBulgaria plans to complete its section of a railway link with Macedonia several months before its Balkan neighbour builds the rail route on its territory, a senior railway official said on January 10. ``We will complete all our construction works a few months before our neighbours,'' Bulgarian State Railway (BSR) director general Anguel Dimitrov told reporters. Bulgaria and Macedonia agreed to complete construction of a railway and motorway link between Sofia and Skopje last October. The planned routes are part of an agreed project for constructing an East-West link from Turkey via Bulgaria, Macedonia and Albania and by sea to the Italian port of Brindisi. All five countries are involved with the project. Dimitrov said he had information that work on Macedonian territory had been slowed down. Bulgaria has only two km left to complete of its railway link from Sofia to the Macedonian border but the Macedonians still have long and complex stretches to build, transport officials said.
[17] Albania May Send Troops To BosniaAlbania may send a peacekeeping contingent to Bosnia to help promote peace in the Balkans and strengthen NATO ties, the newspaper Albania said on January 10. Quoting sources from the contingent of about 30 soldiers, the paper said the troops had begun preparations for deployment to Bosnia. No comment from the defense ministry was immediately available. The newspaper quoted legal experts saying the necessary legal basis for deployment was in place, based in part on the Partnership for Peace program Tirana signed with NATO in February 1994. A contribution by Albania to the NATO peace force in Bosnia would be the first such move by a non-alliance Balkan country. (Reuter)
[18] Albania to Reopen Rail Link With MontenegroAlbanian officials are working to reopen within January a railroad linking Bajze in the northern Shkodra district with Montenegrin capital Podgorice. Preparations are under way to start shipments via this rail link. Anton Leka, head of Shkodra's Chamber of Commerce, said that the lifting of the embargo (on the former Yugoslavia) and the reopening of the rail road will have an effect on activating the resources in the northern part of the country. Albanian government has also decided to open two more border checkpoints at Moriqan and Vermosh, which experts believe will improve border trade with Montenegro. (Albanian Times, January 9)
[19] Privatization Vouchers for UnemployedAlbanian authorities have begun distribution of privatization vouchers for the unemployed. The distribution of the first installment for the entire country is expected to be completed within one month, Savings Bank officials said. (Albanian Times, January 9)
[20] Nebex Targets Gold Prospects in AlbaniaNEBEX Resources Ltd. (ASE: NBX) has obtained another concession in Albania of special interest for its gold potential, reports Brian Douglas, President. "The gold exploration potential of Albania has only been recently recognized. This 200 square kilometer concession increases NEBEX's total holdings in Albania to four concessions covering 1,050 square kilometers," he notes. The newest concession, Radomir, is located near Albania's eastern border with Macedonia. This area is known to host gold-bearing shear zones in Paleozoic sediments and volcanics. Preliminary work on the main showing found gold values, with assays up to 11 grams/ton, associated with arsenopyrides, mercury, copper, and zinc sulphides in a quartz-sericite-chlorite shear zone 50 to 60 meters thick. The main mineral showing extends about 1,000 meters on strike. The vertically dipping structure has not been drilled. Under the agreement with the Albanian government agency GJEOALBA, NEBEX can earn an 80% interest in this concession by spending U.S.$750,000 on exploration within four years. NEBEX has established an exploration team in Albania and is currently conducting an extensive evaluation of its concession areas with drilling to commence shortly. (PRNewswire, January 9)
[21] Government Clears Infrastructure BillsAlbanian government has drafted a measure which would guaranty the investment of the European Bank for Reconstruction and Development in an electricity transmission and distribution project. EBRD is pouring ECU 10 million, a 15 year loan, to be administered through the Albanian Electricity Corporation (KESH). The government also approved an agreement with the Europian Investment Bank concerning portions of the East-West Corridor project. The project will be coordinated through the General Management of Roads in Tirana. EIB is investing a total of ECU 24 million for the Rrogozhine-Elbasan portion of the road. The funding project will be submitted to parliament for ratification. (Albanian Times, January 9)
[22] U-S Plans Office in KosovaThe United States is seeking Serbian permission to open an office in Kosova, the chief U.S. negotiator for the region said on January 8. Assistant Secretary of State Richard Holbrooke said extensive talks had taken place with Serbian President Slobodon Milosevic. `We are going to try to establish in the very near future a United States official presence in the capital of Kosova,'' Prishtina, probably a U.S. Information Agency office, Holbrooke said in an interview with the Voice of America. ``The United States is not seeking or supporting its independence. We are simply seeking -- and this is essential -- the equitable treatment of its people in terms of human rights,'' he said. (Reuter)
[23] Albanian, Italian Companies Have New Heating SolutionAn Albanian fuel company has been introducing compressed fuel tanks to improve heating conditions for the population. Petrolimpex, recently turned into a share-holding company with 51 per cent of government control, is working with Agip Petrol of Italy to import about 3,000 fuel tanks as a substitute for the traditional heating wood and coal. Half of the compressed fuel tanks have been shipped into Albania, Petrolimpex director Genc Gjonca said. The fuel tanks, imported under a memorandum of understanding between both companies, will be sold at prices not to exeed 50 leks per kilo ($.5) Gjonca said. The government regulation is also valid for the gasoline prices, which cannot exeed 20 leks per liter ($.20). According to company officials, the use of such fuel is both profitable and problem-solving since the country's electric network is unable to support population demands for heating. A filling installation with a 120 tank per hour capacity is expected to be completed this week, Gjonca said. Petrolimpex is also considering the possibility of expanding the new heating pattern to the whole country by building a large deposit on the Adriatic coast to attract suppliers from the Mediterranean nations. Mr. Gjonca says if the project proves feasible, Petrolimpex may create a joint venture with Agip Petrol for the production and distribution of fuel tanks. Petrolimpex has 150 employees and operates in the major districts of Albania with gas stations and fuel deposits.(Albanian Times, Jan 7)
[24] Half of Albanian Exports Go To ItalyAbout half of the Albanian exports go to the neighboring Italy, the Institute of Statistics reported. In total, 78 per cent of Albanian goods find their way to the EU markets, compared to only 8 percent that go to EFTA countries. Exports to Eastern Europe occupy a mere half per cent of the total. For the last 9 month period, Albanian exports amounted to about 14 billion leks (roughly $140 million). Major partners after Italy are also Greece, Belgium, Germany and France.(Albanian Times, Jan 7)
[25] Greece Continues to Expel Albanian MigrantsAbout 15 hundred Albanians have been expelled from Greece since December 31, Albanian media reported. According to other reports, 8 dead bodies of emmigrants have been brought back to Albaniafrom Greece since the beginning of the new year. (Albanian Times, Jan 7)
[26] To Drink Or Not To DrinkAccording to statistics, only 47 percent of Albanian families in rural areas have drinking water installations or water wells at their homes. The rest have to share a fountain or a well. About 95 per cent of city residents have no regular water supply and are forced to store water in makeshift tanks. Poor maintainance of water pipes causes pollution and is becoming a health hazard. The situation is even worse for the estimated 40,000 families from rural areas that have settled in the suburbs of Tirana and other cities, where water pipes or sewers are non-existant. A host of international institutions have undertaken a joint effort to solve the water problem in the capital by the years 1996-97. The situation in the cities of Durres and Elbasan is less likely to improve any time soon, officials say.(Albanian Times, Jan 7)
[27] Berisha Outlines Targets, Calls for Social ProgramsPresident Sali Berisha outlined his country's development targets for the next century. In a meeting with cabinet officials on January 5, Berisha called for preserving the present rate of economic growth into the 21th century, the consolidation of what he termed "social dimension" of the country and the integration of Albania into Europe. Berisha repeated his calls for raising lower pensions and salaries. Implementing programs to help low income groups and regions and creating new jobs is a fundamental aim of our social program, Albanian President said. The date of Albania's parliamentary elections, scheduled for the first half of this year will be set in consultation with the political parties as soon as the mandate of current legislature expires, Berisha explained.(Albanian Times, Jan 5)
[28] As E-U Chair, Italy Vows Support for AlbaniaItalian officials pledged support for increasing Albania's political and economic ties with Western Europe during Italy's E-U presidency. The first foreign policy action of the Italian presidency in the E-U will be a meeting in Rome with an Albanian foreign ministry delegation to prepare for an official encounter between the E-U and Albania on January 29, the Italian ambassador To Albania, Paolo Forresti told reporters on January 4. Italy will also support Albania's participation in the Central European Initiative, where Tirana has an observer status. In April this year, the group will consider the admission of Albania as full partner, the ambassador said.(AT, January 3)
[29] Official Paints Rosy 96 for Oil, EnergyAlbanian officials say oil has been the most successful sector for the country's industry during 1995. Foreign companies invested more than $45 million in oil and natural gas prospecting both off-shore and on land, Abdyl Xhaja, Minister of Energy and Mining Resources said. In 1996, oil industry is expected to enter the drilling phase, which the minister described as very promissing. By the end of January, U-S and Austrian companies will start off-shore drilling with Italy's Agip expected to join during the first half of this year. Privatization in mining and energy is expected to continue, according to Xhaja. About 3 billion leks ($30 million) will be invested in the nation's hydropower system during 1996, a three fold increase compared to last year. The investments will involve intervention to restore existing hydropower stations on the Drin river and construction of a new station in Bushat, northern Albania.
[30] Albania's Mining Output on RiseAlbania's chrome mines are being seen as an important factor in invigorating the industrial sector, giving the country a much needed economic shot in the arm, with the help of foreign investors. Albania's industry closed down almost entirely after the fall of Communism, the antique equipment lay rusting as the country struggled to to gain a foothold on democracy. And the country is now trying to get its industry going again according to a report in "The Financial Times". Production of ore was expected to hit 300,000 tons lats year compared to 223,000 tons in 1994. Output of ferrochrome, the most important value-added product fromj the ore was forecast to rise from 33,760 tons in 1994 to 44,000 tons last year. Driving the increased output, Albanian officals say, is the doubling in ferrochrome prices from around 30 cents per pound in 1994 to around 73 cents last year. Demand is stroong from the stainless steel industry which consumes around 80 percent of world chrome output. Wages are on the rise too owing in part to company's improved fortunes. The earnings of the 1,900 underground workers at Bulqiza are growing from $70 a month to about $200. Production at Bulqiza is expected to rise by almost a quarter to 130,000 tons, close to the production level of the Communist era. |
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