THIS WEEK IN ALBANIA - THE ROAD ISSUE, JUNE 21 - JUNE 27,

UNCLAS TIRANA 000487

DEPT FOR EUR/SCE

E.O. 12958: N/A
TAGS: PGOV PREL ECON AL

SUBJECT: THIS WEEK IN ALBANIA - THE ROAD ISSUE, JUNE 21 - JUNE 27,
2008


1. (U) The following is a weekly report prepared by Embassy
Tirana's local staff to provide political and economic context and
insight into developments in Albania. This week's issue focuses on
the current state of the construction of Albania's most ambitious
road project to date.

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INFRASTRUCTURE DEVELOPMENTS
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2. (U) Massive Road Construction Project Underway: The most
ambitious road construction project in Albania's history is underway
as we speak. The new four lane highway connecting Albania's largest
port in Durres with Kosovo will be 170 km long and is expected to
cut travel time from six hours to just two. About 111 km of the
road will be completely new, cutting across the mountain valleys of
northern Albania, and ensuring a low altitude for the road in order
to avoid heavy winter snowfalls in the area. The most important
stretch of the highway, the 61 km Rreshen-Kalimash segment, includes
two six-km tunnels and 27 bridges and involves the movement of more
than 19 million tons of cubic meters of land. Both tunnels and one
of the bridges (80 m long) are some of the most impressive ever
built in the region. The new road is expected to increase travel
speed from a mere 20 mph to about 70 mph.


3. (U) All of these figures, however, don't sink in until you go
and visit the construction site for yourself. From Tirana it takes
roughly two hours to reach the main base camp of Bechtel-Enka, the
joint venture building the road. The base camp provides lodging and
office facilities for the approximately 3000 people currently
engaged in this enormous construction project; dozens of
prefabricated offices and apartment houses dot the landscape.


4. (U) One can get an initial grasp of the sheer magnitude of the
project by looking at the blueprints and the number of design
engineers moving about the site. The true picture, however, becomes
clear when you begin traveling along the stretch of the new road
leading through one of the most impressive valleys of Albania's
northern region. Heavy-duty machinery, bulldozers, and trucks are
constantly changing the landscape of the lower hills, removing whole
segments of the mountain as they prepare the ground for the road.
Several newly built bridges are already in place and most of the
material for the 20 other bridges have been prefabricated.

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TWIN TUNNELS
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5. (U) Once you reach the second camp located at the end of Mount
Thirra you can get a glimpse of the two new tunnels underway. They
cut through the mountain in what is the first tunnel project in
Albania - blasting through 12 km of solid rock. Bechtel-Enka built
a dirt road across the mountain that provides transportation for the
workers needing to reach both sides of the tunnels, while inside the
mountain work continues uninterrupted. According to site engineers,
50 percent of the tunnel excavation has already taken place with
assurances that one tunnel will be completed by June 2009.


6. (U) Inside the tunnel American design engineers, Turkish
specialized staff, and Albanian local employees work together
seamlessly. Many Albanians speak some Turkish, and many Turkish
workers have an Albanian family background, an example of the
enduring legacy of the Ottoman Empire. Work is conducted
simultaneously at four tunnel worksites, and heavy machinery removes
the dirt while iron supporters are placed, bracing the roof of the
new tunnel. Every day six meters of tunnel on each end is
completed, shortening the distance to when the two ends will finally
meet.

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WHAT'S AT STAKE?
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7. (U) Prime Minister Berisha has staked a lot on the success of
this road project. The GOA has so far invested 640 million euros,
and it is estimated that the cost may shoot up to as high as 800
million euros. The government has also faced significant legal
challenges. The current Minister of Foreign Affairs Lulzim Basha (he
is the former Transportation Minister who initiated the project
during his tenure there) has been investigated over allegations of
violations of legal codes related to the project. Three other
senior officials have been charged with abuse of office, again over
allegations that they bypassed legal procedures to get the project
underway.


8. (U) The continually increasing cost of the project has also
become a matter of significant controversy. The initial cost
estimate of 450 million euros has long since been surpassed. So
far, however, the government has been able to compensate for the
increase of cost with greater revenue collection and
commercial-based loans. While assertions of illegal actions have
yet to be proven, one thing is clear: that PM Berisha considers the
project a top priority for his government, and he will not let any
legal technicalities get in his way. His hopes are that the road
will provide a new transportation link to the coast for land-locked
Kosovo and significantly deepen regional economic ties.
Furthermore, he believes that successful completion of this road
will, in the end, dispel any controversy and give him the boost he
needs to win reelection in 2009.

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QUOTES ON THE ROAD
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9. (U) "Prime Minister of Albania, Sali Berisha, all Albanians will
be forever grateful to you for this extraordinary contribution. We
also commit ourselves to push ahead with the project of the
Prishtina-Vkrnica-Merdare road [Kosovo road segment of the highway]
and will start construction work this year." Excerpted from Kosovo
Prime Minister Hashim Thaci's address to Albanian PM Berisha on the
importance of the Albania-Kosovo road project.

WITHERS