According to the national office for statistics in Serbia RZS, during the fourth quarter of 2018, the value of construction works performed in the country grew by 8.7% in current prices and by 3 pct in constant prices compared to the same period of the previous year.

\”In Q4 2018, the value of the works performed rose considerably in the Vojvodina region (20.1 pct) and in the Belgrade region (1.9 pct) in constant prices, and the construction activity was at approximately the same level in the regions of southern and eastern Serbia as in Q4 2017,\” the RZS office said in a statement.

A 10.7 pct decline in constant prices was also recorded in Sumadija and western Serbia.

The territory of Serbia accounts for 96.8 pct of the total works performed in Q4 2018, with foreign construction sites making up the remaining 3.2 pct, the office said.

Serbia has moved up in the World Bank’s Global Doing Business ranking during the past 2 years, coming in 43^rd out of 190 ranked countries, thanks to its improved reliability of the land administration systems by implementing a geographic information system.

Recent changes to Serbia’s Planning and Construction Act made dealing with building permits faster. The so-called “integrated procedure” for obtaining all necessary documentation for construction, electronically, on a “one stop shop” basis was created. This procedure encompasses all actions in the construction process, from determination of adequate location conditions, through the issuance of the building and use permits, up to the registration of ownership of a newly constructed facility in the Real Estate Cadaster.

Currently, the biggest construction project in Serbia is the Belgrade Waterfront project: A EUR 3.5 billion residential and business complex in Belgrade. The project is being conducted by the Republic of Serbia and an investor from the United Arab Emirates.

Copyright @2019 TiranaEcho.com  All Rights Reserved (Source: Tanjug)

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In its 2018 Article IV Consultation with Albania, the IMF Executive Board concluded that Albania’s economic growth has trended upward in recent years as the country has benefitted from the implementation of reforms and from the economic expansion of its European trade partners. Growth is estimated at 4.2 percent for 2018 and is projected to stay close to this level over the medium term, supported by stronger exports, including tourism, and investments in infrastructure.

However, the IMF says Albania is strongly exposed to the increasing risks to growth in Europe, notably in its main trading partners.

“A downturn in these countries could spill over through lower exports, remittances, and foreign direct investment. Moreover, the expected tightening in global financial conditions would raise Albania’s cost of financing.” Says the IMF Executive board in its final report.  

More crucially, the IMF Directors warn the small Balkan nation on containing fiscal risks stemming from its widespread PPP strategy, as increasing reliance on PPPs, often without transparent competitive bidding for national infrastructure projects has resulted in rising contingent liabilities.

“Directors highlighted the need to consolidate and strengthen the decision-making processes in public investment management and underscored the importance of ensuring value for money for PPP projects through competitive bidding. Directors also called for determined measures to halt the persistent build-up of government arrears, as these hurt private economic activity and undermine trust in the public sector.” – says the IMF.

The Albanian government has embarked upon an ambitious scheme of PPP projects to finance its national infrastructure, often prompting opposition criticism who accuse the government of careless economic policies and corrupt noncompetitive bidding practices. 

While the global financial body welcomed planned amendments to the PPP legislation by the Albanian government in order to enhance the role of the Ministry of Finance and Economy as a gatekeeper in containing the potential fiscal cost of PPPs, they also noted that it will be critical to ensure value for money through a competitive bidding process for all projects, warning the socialist led government of PM Edi Rama to stay away from unsolicited PPP proposals.

While annual PPP-related government spending is projected to remain below the legal limit of 5 percent of tax revenues, this ceiling leaves little room left for additional government-funded PPPs, especially given the need to incorporate risks from contingent liabilities.

On the domestic side, the IMF has noted that Albania’s public debt remains high, while low domestic savings and the absence of large institutional investors amplify dependence on foreign sources of financing. The domestic risks also include the impact of drought on electricity generation, creating risks to the budget.

Despite robust GDP growth, projected at 4 percent in 2018, Albania’s inflation remains below its 3 percent target. The fiscal deficit has stabilized around 2 percent of GDP, implying a modest gradual reduction in public debt, which remains high at close to 70 percent of GDP.

The Albanian government relaxed its monetary policy in June 2018 following a rapid appreciation of the exchange rate against the Euro, probably due to the influx of tourists during the summer season as well as high levels of money laundering activities in the country.  

The IMF says the economic outlook for Albania is mostly positive, with GDP growth projected to converge to 4 percent over the medium term and with inflation stabilizing around its target by 2021.

“Further fiscal consolidation and an accommodative monetary policy, combined with growth-promoting structural reforms represent the right policy mix,” – the IMF Board of Directors have said in their statement.

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DW has visited the Charité in Berlin, Europe\’s largest university hospital, which lacks hundreds of caregivers.

To make up the shortfall, the clinic has hired nursing staff from Albania who have integrated very well in the new system. DW says that soon nurses from Mexico will follow.

DW interviews 24 year old Kristian Gazulli who following the completion of a special training in Albania was immediately recruited by the Charité in Berlin. 

Gazulli says that \”hospitals back in Albania run through a very different system. In Germany hospitals are more structured, documentation is very important and everything has to be recorded.\”

The drain of nurses and doctors has been a major problem for Albania as most of its youth would seek to leave the country for better employment opportunities elsewhere. Germany is a lucrative destination and is highly preferential among young Albanians. 

To watch the full DW video click here.

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Balfin will hold the shares of Newco Ferronikelli via the UK based company, NKL Limited the Group\’s website has announced after its representatives succesfully signed an agreement with Newco.

Newco Ferronikelli had struggled with low global nickel prices during the last few years and has not been able to operate at full capacity during the last 18 months.

\”Balfin is proud to welcome Newco Ferronikelli to the Balfin Group,\” – read a statement on the company\’s website, as the Group announces it will immediately inject sufficient funds to put the plant back to work and bring it back to full production within August, while it has agreed to repay the existing supplier debts of the company as soon as possible. Balfin has also vowed to guarantee all outstanding salaries of employees.

Newco Ferronikelli, with over 800 employees represents a major employer in Kosovo and is responsible for at least an additional 1500 other jobs related to supplying the plant with raw material and logistics in both Kosovo and Albania.

The ferronickel complex in Drenas includes a nickel ore production plant, while the surrounding area is rich in mineral deposits, the facility in question was built in 1984, using the Soviet-era technology of the time. Balfin plans to make additional investments in Newco Ferronikelli to be able to realize the full potential of the mining sectors in Albania and Kosovo and increase the production of nickel in from the current levels of 7200 MT per annum to over 10 000 MT.

In acquiring Newco Ferronikelli, Balfin has a similar experience in acquiring Albchrome in 2013 and revitalizing the chrome ore and smelting industry in Albania. Albchrome is completing a $ 70 mln investment plan that has a new shaft being extended in the mine to increase the ore reserve life of the company by 20 years, restarting and investing in new furnace in Burrel and making significant improvements in the Elbasan smelting facility. With 2 smelters operating a total of 4 furnaces, and the mine in Bulqize, Albchrome has over 1100 employees and represents a significant player in the Albanian mining sector.

Balfin Group is the largest privately held Group of investment in South East Europe, with activities in Albania, Kosovo Macedonia and Bosnia, Netherlnads, and activities in real estate construction and development, such as shopping malls in Albania and Macedonia, retail activities through its major brands such as Neptun, Jumbo, Spar, rela estate development in resort properties such as Green Coast Resort and Vala Mar Residences, and the mining sector with Albchrome.

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KESH announced and closed three separate actions on April 1, 6 and 13, with the highest price offered set as the most important criteria, according to the final reports on the results of the auctions posted on the company website on Saturday.

Thirteen domestic and foreign power suppliers and traders participated in the auctions, and KESH selected four of them: Alpiq Energy SE, LE Trading, GSA, Axpo doo Beograd, NOA Energy trade, AYEN Energy Trading, HSE doo, Danske Commodities AL, Green Energy Albania, EFT AG, Future Energy Trading and Exchange Dynamics, and Group Trans Energy.

Albania produces 98% of its electricity at hydro power plants (HPP). Most of it is generated at three power plants on the Drin River, in the northern part of the country.

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\”With our great climate, low prices and hard workers, Albania is the secret treasure of Europe. I am convinced that there will be a time when everyone will know, but in the meantime we need to cooperate with the western countries to continue with a good pace of growth,\” shared Edona Blakaj from Connect Albania.

The Ministry of Agriculture recently helped the country achieve 1000 hectares of greenhouses, which was a big boost for production. This has made it possible for the country to have year round greenhouse production of cucumbers, zucchini, capsicum, broccoli, cauliflower, kaki and tomatoes, along with open field production of leek, cabbage, blueberries wild and cultivated, raspberry, chestnut, pine nuts and truffles. For seasonal products, the season is just starting for watermelons.

\”The strawberries coming out of Albania are first class. Most of the Albanian growers worked in Greece in the past which helped them gain knowledge about production before starting for themselves. We have the climate, good soil, along with intelligent and honest business people to become the next Italy in terms of production, but now it is just about overcoming past political turmoil for our people to gain the belief that they are good enough for markets beyond Albania,\” Edona continued.

\”Along with supplying neighbouring countries around Albania, we have had a lot of interest from Italy, which has started importing our products. The next step is to help boost the Albanian economy by helping connect producers with Dutch partners and beyond.\”

Author: Heather Wicks
Copyright: www.freshplaza.com

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Most of the family owned shops across Albania today shut down their doors for an hour in protest of their new measures taken by the socialist government of Edi Rama, including them in the Value Added Tax (VAT) national scheme. Shop owners say the new measure will result in higher prices and subsequently less business for them. Opposition parties supported the protest, although in certain shops opposition MPs were refused entry.

Talking to roundtable of business owners yesterday, Democratic Party chairman Lulzim Basha said: “Stand up, refuse it, shut down your doors, boycott the VAT scheme in all forms and manners. Hundreds and thousands of people across Albania will force this criminal government down. Today we are on your side.”

Last week the opposition called for civil disobedience and blocked Albania\’s main highways for several hours.

However, Albania’s Finance minister Arben Ahmetaj said the new measure introduced on April 1^st will not affect prices.

“The opposition seeks to stir up Albania’s political milieu. We will show this month that this was the right measure to be taken. I invite anyone to demonstrate what prices have risen across our local neighborhoods since April 1^st,’ said a defiant Ahmetaj.

Starting from the 1^st of April, over 11,000 small business whose annual turnover is more than 2 million lekë, are obliged to be involved in the VAT scheme. The government has currently postpoed any punitive measures to the end of the year, giving shop keepers a last chance to correctly declare their turnover and profit.

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Euromoney notes that improving risk on a total risk score of just 38 points from a maximum 100 available in the survey, Albania is still a high-risk borrower within the fourth of Euromoney’s five risk categories. However, its score and ranking have improved, pushing Albania higher to 89th out of 186 countries surveyed, above FYR Macedonia – now two places below – and with similar EU ambitions to Serbia (75th) and Montenegro (112th).

Albania would be a higher, tier-three risk were it not for concerns about non-performing loans (NPLs) in the banking system, a tricky investor climate and large public debt burden. Exacerbated by liabilities linked to the use of public-private partnerships, and with some liabilities in arrears, the debt burden makes state-owned enterprise reforms, better debt management and tax changes urgently required.

Short-term prospects, moreover, are hindered by the winding down of large-scale energy projects potentially softening GDP growth, while the country is vulnerable to worse scenarios involving financial meltdown, political crisis or a transatlantic trade war.

However, Euromoney says that Albania’s rise is unlikely to stop long-term. The country is enjoying one of the fastest annual growth rates in the region – the latest figures showing 3.6% in the third quarter of 2017 – with a good deal of stability in the political and economic environment fuelling improving economic scores for the growth outlook and regulatory and policymaking environment, among others.

Dimitria Rotsika, senior economist at Piraeus Bank Group, is one of several Euromoney survey contributors with a generally favourable impression of Albania’s prospects.

“The country has been showing steady signs of a strong momentum, with radical structural reforms already paving the way of a new growth model,” she says. “The combination of relatively high economic growth in the coming few years, fiscal consolidation and correction of the banks’ NPL balances is positive for the country’s aim of future EU accession.”

Further reforms hold the key to Albania’s prospects and receiving its allocated pre-accession funding. The debt is high, and the country must continue to grow briskly, but with the political will, and EU accession targeted, the country will stay on a steadily improving trajectory.

Source: https://www.euromoney.com/article/b17g51vpgb46jm/albania-leaps-forward-in-euromoneys-risk-rankings?copyrightInfo=true

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Albania’s gross domestic product (GDP) expanded marginally by 4.1% year-on-year in the second quarter from a revised 4% in the previous three months, the report said on Tuesday. It dynamics was supported by a growth in investments of 14.3 %, backed by foreign direct investments, while net exports also contributed, fuelled by a 22 % rise in services, including tourism and transport. Construction recorded the highest growth, of 22.7 %, reflecting the peak of investments in the energy sector.

Unemployment, which is generally high for the Western Balkan, declined by 1.6 pps to 14.3 % in the second quarter, compared to the previous quarter, whereas youth unemployment declined by 3.4 pps to 26.4 %.

Low inflation remains a key characteristic of the Western Balkans, reflecting low commodity prices and exchange rate stability. Albania’s annual consumer price inflation stood at 1.6% in August and September, still below the central bank’s 3% target. The regulator has kept its key policy rate at a historic low of 1.25% since May 2016.

Bank lending continued to be supportive of growth in the Western Balkans. However, Albania and Serbia are still recording the highest non-performing loan ratios in the region – 15–16 % of total loans, the report said.

In the first eight months, budget revenues and expenditure rose more vigorously, and the budget recorded a small surplus, of close to 0% of GDP.

The report also said that continued fiscal discipline is necessary in a number of countries to rebuild fiscal buffers and reduce public debt which is especially high in Albania, at 66.9% of GDP

Source: SeeNews

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TAP has said that it will additionally create job opportunities for Albanian companies during construction with more than 2,800 people already working directly for the project.

“TAP will directly contribute to Albania’s gross domestic product, contributing as a substantial taxpayer, and investing in social and environmental projects that will improve many peoples’ lives,” Ulrike Andres, TAP’s managing director ad interim in Albania tells Emerging Europe. “Just one example: it will upgrade Albania’s road infrastructure, increasing road safety.”

The pipeline will be connected to the Trans-Anatolian Pipeline (TANAP) on the Turkish-Greek border, running through Greece, Albania and under the Adriatic Sea over a total length of 878 kilometres.

“As a consequence of building TAP, it is expected that Albania’s regional and geo-strategic significance will increase,” Mrs Andres adds. “This will contribute to the country’s commercial and physical integration into Europe. Additionally, many local businesses have already become involved in the project and opportunities will increase during the next phases of the project.”

According to Albanian Ministry of Energy and Industry, the country’s energy sector continues to suffer from losses despite improvements over the last three years to curb theft and non-payment. TAP is expected to increase demand for gas-fired energy and manufacturing investments in Albania, with the first gas deliveries scheduled for 2020.

“TAP will help to establish the basis for the diversification of the Albanian energy sector and the potential for its transformation into a regional natural gas hub,” Mrs Andres says. “Albania will be able to grow the country’s natural gas network, and together with strategic partners develop the commercial offers customers in other European countries are already benefiting from. Developing a gas network will mean that the dependence on coal for electricity generation will be reduced, and as a result, the environmental performance of the Albanian energy sector will improve significantly. Albania will be able to play a key role in the gasification of South East Europe, enabling other countries of the region to connect to natural gas supplies from the Caspian area.”

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