Identifier
Created
Classification
Origin
08TIRANA786
2008-10-31 15:10:00
UNCLASSIFIED
Embassy Tirana
Cable title:
Embassy Tirana Weekly Report
how-toVZCZCXRO1372 PP RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHTI #0786 3051510 ZNR UUUUU ZZH ZUI RUEHSD 0004W 3080359 H/W ZDK P 311510Z OCT 08 FM AMEMBASSY TIRANA TO RUEHC/SECSTATE WASHDC PRIORITY 7548 RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
UNCLAS TIRANA 000786
SIPDIS
STATE FOR EUR/SCE
E.O. 12958: N/A
TAGS: PGOV ENRG EFIN PREL PHUM AL
SUBJECT: Embassy Tirana Weekly Report
Giant Paper Projects
--------------------
UNCLAS TIRANA 000786
SIPDIS
STATE FOR EUR/SCE
E.O. 12958: N/A
TAGS: PGOV ENRG EFIN PREL PHUM AL
SUBJECT: Embassy Tirana Weekly Report
Giant Paper Projects
--------------
1. As Albania enters the rainy season, common citizens are waiting
for the rain to provide some security in the supply of electricity
over the winter season. The government is looking forward to a rain
of money, which is expected to hit Albania due to large projects
currently in the planning stage. In spite of the global financial
crisis, which could impede investors from taking action in the near
future, Albania seems to have been blessed with a number of large,
potential projects.
2. Most of the projects are centered in the energy sector. A USD
2.9 billion energy park planned by ASG Power includes a 1.6 GW
thermo power plant, degasification facilities and transmission
lines. Three hydropower plants in the Devolli cascade, a project
worth USD 1.5 billion, is being planned by the Austrian company EVN,
while a container terminal project worth USD 1.8 billion is
envisioned for the bay of Vlora. Other projects include wind parks
all over the country, other large thermo and hydro power plants to
be built by various Italian, Greek, Austrian and other consortiums.
While some of these might actually take place - the Austrian
utility Verbund has signed a 35-year concession for the Ashta HPP,
totaling USD 220 million - many others are like visions in the
desert. On the other hand, there is another giant project, the
Durres-Kukes road, which appears to be on track to be completed by
next summer. Construction has begun as well on two new cement
factories - a project worth some USD 700 million.
3. Despite the recent increase of foreign direct investment over
2007 and another increase this year mainly due to large scale
privatizations, Albania still lags behind its regional neighbors
regarding the stock of" foreign direct investments.
Let the Parties Begin
--------------
4. After months of bipartisan negotiations and deadlock, the
Albanian Parliament is expected to pass the new electoral code
sometime in November. The new electoral code follows on the
amendments made to the Constitution earlier this year, and is
expected to bring major changes to the Albanian political scene, as
well as set the stage for next year's Parliamentary elections
(scheduled for June, 2009). Following the Constitutional amendment,
the Electoral Code will complete the transformation of Albania's
electoral system from the current majority system to a regional
proportional system. According to this system, Albania's electoral
map will be divided into 12 regions, with each region sending to
Parliament a number of MPs in proportion with their population. The
electoral code is also expected to establish an electoral threshold
that will limit the number of small parties that will be represented
in Parliament. In spite of the difficult process leading to the
consensus, it will be the first time that Albania has completed work
on its electoral code eight months before the elections. Such an
achievement could have a potentially very positive impact in the
quality of the upcoming elections (as opposed to the February, 2007
national elections, in which the electoral code was passed at the
very last minute, and only after considerable pressure by the OSCE,
U.S. and EU.)
5. According to the proportional electoral system proposal, it will
be the Albanian political parties that will submit nominal lists in
each region for elections to Parliament. Citizens will now vote for
one of the parties on the ballot, rather than a particular
candidate, as had been the case in previous parliamentary elections.
The two main political parties say that this will increase the
quality of MPs and keep certain rouge elements out of Parliament.
However, there are fears that this will also increase the control of
Party chairman and stifle dissent within the political structures
because the party chairman will have the final say on which
candidates are included - or excluded - in the party lists.
6. Quote of the Week:
"The battle rages on." Prime Minister Berisha refereeing to his
Government commitment to weed out corruption as he was speaking to
the World Economic Forum in Turkey.
WITHERS
SIPDIS
STATE FOR EUR/SCE
E.O. 12958: N/A
TAGS: PGOV ENRG EFIN PREL PHUM AL
SUBJECT: Embassy Tirana Weekly Report
Giant Paper Projects
--------------
1. As Albania enters the rainy season, common citizens are waiting
for the rain to provide some security in the supply of electricity
over the winter season. The government is looking forward to a rain
of money, which is expected to hit Albania due to large projects
currently in the planning stage. In spite of the global financial
crisis, which could impede investors from taking action in the near
future, Albania seems to have been blessed with a number of large,
potential projects.
2. Most of the projects are centered in the energy sector. A USD
2.9 billion energy park planned by ASG Power includes a 1.6 GW
thermo power plant, degasification facilities and transmission
lines. Three hydropower plants in the Devolli cascade, a project
worth USD 1.5 billion, is being planned by the Austrian company EVN,
while a container terminal project worth USD 1.8 billion is
envisioned for the bay of Vlora. Other projects include wind parks
all over the country, other large thermo and hydro power plants to
be built by various Italian, Greek, Austrian and other consortiums.
While some of these might actually take place - the Austrian
utility Verbund has signed a 35-year concession for the Ashta HPP,
totaling USD 220 million - many others are like visions in the
desert. On the other hand, there is another giant project, the
Durres-Kukes road, which appears to be on track to be completed by
next summer. Construction has begun as well on two new cement
factories - a project worth some USD 700 million.
3. Despite the recent increase of foreign direct investment over
2007 and another increase this year mainly due to large scale
privatizations, Albania still lags behind its regional neighbors
regarding the stock of" foreign direct investments.
Let the Parties Begin
--------------
4. After months of bipartisan negotiations and deadlock, the
Albanian Parliament is expected to pass the new electoral code
sometime in November. The new electoral code follows on the
amendments made to the Constitution earlier this year, and is
expected to bring major changes to the Albanian political scene, as
well as set the stage for next year's Parliamentary elections
(scheduled for June, 2009). Following the Constitutional amendment,
the Electoral Code will complete the transformation of Albania's
electoral system from the current majority system to a regional
proportional system. According to this system, Albania's electoral
map will be divided into 12 regions, with each region sending to
Parliament a number of MPs in proportion with their population. The
electoral code is also expected to establish an electoral threshold
that will limit the number of small parties that will be represented
in Parliament. In spite of the difficult process leading to the
consensus, it will be the first time that Albania has completed work
on its electoral code eight months before the elections. Such an
achievement could have a potentially very positive impact in the
quality of the upcoming elections (as opposed to the February, 2007
national elections, in which the electoral code was passed at the
very last minute, and only after considerable pressure by the OSCE,
U.S. and EU.)
5. According to the proportional electoral system proposal, it will
be the Albanian political parties that will submit nominal lists in
each region for elections to Parliament. Citizens will now vote for
one of the parties on the ballot, rather than a particular
candidate, as had been the case in previous parliamentary elections.
The two main political parties say that this will increase the
quality of MPs and keep certain rouge elements out of Parliament.
However, there are fears that this will also increase the control of
Party chairman and stifle dissent within the political structures
because the party chairman will have the final say on which
candidates are included - or excluded - in the party lists.
6. Quote of the Week:
"The battle rages on." Prime Minister Berisha refereeing to his
Government commitment to weed out corruption as he was speaking to
the World Economic Forum in Turkey.
WITHERS