EITI -ALBANIA

Presentation by Ilir Aliaj

A difficult transition

-Traditional mining and petroleum country, with integrated production chain -With the general economic decline during the 1990, decrease of production and deterioration of facilities -Qualified international investors not found and fragmentation continued -However, an improvement visible since 2004

Recent encouraging activities

-Significant number of international companies interested in the sector -Workforce in the sector (direct employment) tripled 2004-2008

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Government view:“Mining and petroleum as a core industry would be able to stimulate economic development, provide a means for acquiring foreign currency and will help to reduce poverty”

Oil sector

-In 2009, the oil sector was represented by: Two onshore production companies:

Bankers Petroleum 8000 (bbl/day) 2011- 12000 (bbl/day) Stream Oil&Gas 1500 bbl/day) A National Oil Company, partner for private companies and State Collecting Agencies (Albpetrol) -Six international companies at the exploration phase: Capricorn Albania (subsidiary of Cairn) IEC Visioka Island International Exploration (subsidiary of San Leon Energy) Manas Adriatic (subsidiary of DWM) Sherwood International (subsidiary of Bankers Petroleum) Sky Petroleum

Mining sector

-Chromites (Albanian Chrome with around 1/3 of the national production). Numerous medium and small scale players. Exploration Jab Resource, Empire Mining. 65,2 million ton reserves with Cr2O 3 approx 38-40 percent -Cooper (Ber Al the main player). Numerous medium and small scale players. Exploration Tirex Exploration, Balkan Resource. 53 million ton reserves with Cu approx 2 per cent.

-Fe-Nickel (Balkan Resource). 220 million ton reserves with Fe approx 42,3 per cent and Ni approx 1,3 per cent

Albanian request for EITI

-By Prime Minister order 27/12/2008, set up of inter- institutional working group, leaded by Deputy Minister of Economy and Energy.

-Letter of Albanian Prime Minister towards EITI Secretariat at Doha Conference, February 2009.

-March 2009, Ministry of Economy and Energy present for the first time to the different stakeholders (business, NGO’s, etc) the EITI.

-April 2009 member of CSOs start to be part of local Multi Stakeholder Group.

- May 2009 Washington Board accept the candidacy of Albania at EITI

CSO’s activities -September 2009, first training of CSO’s, media conducted by EITI General Secretariat -June 2010, training of CSO’s conducted by World Bank -From the first Local Multi Stakeholder Group the representative of civil society present at the meetings -September 2010, start the creation of CSO’s network on the regions reach with chromites and petroleum. Now we already have the network on sectors mentioned above, with more than 100 CSO representatives, individuals, companies and local government. Financed by Soros Albania. Actually we are looking to widen the network with other sectors?

Difficulties for CSOs

- Capacity building for the network.

- Lack of financial means to strength and broadening of the network allover Albania. -Transparency of contracts they are not disclosed by law nr. 7746, 28.07.1993on “Hydrocarburs exploring and drilling” and is not also written in the new law nr. 10304, 15.07. 2010 on “Mining sector –exploring and drilling”

Challenges for CSOs

- Strengthening and broadening of the actual network - Build capacities allover the country -Law amendments -Possible litigation on grounds of FOI and contract transparency

Thank you