On January 20th, 2014 FIAA organized the Economic Forum on the Issues and Challenges that Foreign Investors are facing in Albania.
The Forum was organized with two separate panels focusing on Finance, Energy and Industry. Through this Forum, the Foreign Investors Association aimed at further strengthening of the dialogue and collaboration with the Government for a better investment climate in Albania.
During the First Session, the Foreign Investors had a dialogue with the Minister of Finance, Mr. Shkelqim Cani who treated issues related to Finance in particular the New Fiscal Package, recently passed. During his word Minister Cani apologized to the business for not having consulted the Fiscal Package with the Business, explaining that this happened due to the short time in disposal and the pressure of the High Debt.
However, he highlighted the importance of the Business involvement in the Consultation Process and invited them to be part of the Fiscal Package 2015 consultation, which starts this June and of other Laws in Albania, doing it throughout the year, not just waiting at the end of it. “By having more time in disposal and with prior consultation we will correct our mistakes done during the first Fiscal Package, to reshape our ideas and pay back the business for what we have done wrong”, said Minister Cani.
Businesses addressed several questions to Minister Cani in particular questions related to the VAT Reimbursement Process. Related to this question the Minister answered that due to the high amount of VAT to be reimbursed (350 ml USD), the process will be slow and incomplete. According to the Minister, this is because the Government doesn’t have enough funds to cover all the government obligations to business, despite the loan that IMF and WB have given.
Other questions made from the Business, were related to the tax evasion and informality. They stressed that the unfair competition in the market continues to be a problem which puts the honest businesses into difficulties.
II- Panel discussion with the Minister of Energy and Industry
In the second session of the FIAA Economic Forum, the Minister of Energy and Industry Mr. Damian Gjiknuri was present.
Related to the Energy Sector, during his word, the Minister mentioned that the today’s situation reflected in the energy sector of Albania, is due to the lack of Investments and because was not sustained by a well planned policy which brings loss of energy, power losses etc. He highlighted that the government is not against the investments in energy but they need to be sure on the results and on who will pay the final invoice. He also said that they are working a lot on the energy law in order to create a much regulated Albanian energy sector and have a proper unit price which will be paid by every citizen. This will create potential for new energy traders in the country, investments in the transmission lines etc. Another point was that there will be an extension of the entry into power of the renewable law as it is not in line with the EU one, inviting also the business community to be part of its consultation.
Related to the Mining and Oil and Gas, the Minister stressed the need for fair rules of the game, created proper strategies for these sectors and this will be done by making a check up of the concessions given, their transparency and status. “This will create better rules and fair competition in every sector of the industry” Minister said.
Another Speaker who greeted the FIAA Forum and extended a message to the Minister of Energy was the Chairman of FIAA’s Energy Committee, Mr. Dietmar Reiner who addressed the view of the foreign investors about the energy sector, specifically the electricity sector to the Minister.
Mr. Reiner highlighted that Foreign Investors are ready to step in and to invest but the Government needs to provide sufficient investment security. However, for the investors issues like illiquidity of the entire sector remains a concern, losses and bill collection rates remain at an unsustainable level.
Given this occasion we would like to thank VERBUND AG for supporting this Forum.