Transcript Doing business with the Netherlands”

September, 2008
What is AlbInvest?
• Government agency created in March 2006
• Member of the Ministry of Economy, Trade and
Energy (METE)
• Mandate covers Foreign Investment Promotion, SMEs & Exports
• Board consists of Government & Business
Representatives
• It is a dynamic and client oriented agency
• Staff body: 32 members, graduated from schools from
9 countries and speak 11 foreign languages
AlbInvest’s Mission
Alb
Invest
Business communities
Increasing
FDI
Implementing
Gov policy
Central and local
Authorities
International
Partners
Building capacities, Boosting Exports
Image Building
For Albania
AlbInvest’s Mission
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FDI Promotion
– Assistance from A-Z in the initial steps: Information, Visit organisation, Investment
possibilities.
– Identification of potential advisors, suppliers, as well as projects in Albania
– Business Missions – in Albania and Overseas
– Promotional materials & campaigns
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SME Support
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Influences Government policy on a range of issues affecting SMEs
SMEs Credit Guarantee Fund and SMEs Competitiveness Fund
Interreg programs - in support of SMEs
European charter of SMEs
Export Enhancement and Needs Identification
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Export guarantee credit fund – 200 million ALL for 2007
Market research for Albanian products
Business missions in potential markets for the Albanian Brand
Training for export companies
Exporters’ Guide
Services to Potential Investors
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Gather/Provide updated information (service free of charge)
– Information on government initiated incentives and programmes in support
of investment decision-making
Identify sites and buildings for conducting business
Set up a manufacturing operation or business service in Albania
Find indigenous suppliers/JV partners
Signpost you to the right person from the public sector (Central and Local
Government Body, Municipalities and Communes)
Provision of Aftercare Services
Project Workflow
Investment
Department
Lead Generation
Unit
Project Management
Unit
Client Aftercare
Unit
Macroeconomic Stability
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Economic growth around 6%
National Income per capita about
USD 2, 887 (year 2006) increased
to USD 3, 408 in 2007
Inflation 2.9%
Foreign Direct investments: 260
million EURO in 2006, reached 460
million EURO in 2007
Unemployment reduced to 13.2
percent
High export growth rate of 27
percent in 2007 compared to the
previous year
GDP Structure by sectors 2006 (in %)
INDUSTRY
17.8
22.1
12.5
AGRICULTURE
CONSTRUCTION
14.3
33.3
TRANSPORT
OTHER
SERVICES
NATO & EU
• EU integration. On 12 June 2006, Albania signed in
Luxembourg the Stabilisation and Association Agreement
and the Interim Agreement with the EU. As of 1
December 2006, the Interim Agreement for trade and
related issues has come into force.
• NATO integration. All political parties support
integration into the NATO and the EU are dedicated
to reforms and necessary changes in order to realise
them.
Investment climate:
Government reforms.
• Shorting the time needed for registration new
business-One Stop Shop NRC .
• Simplification of licensing procedures.
• Reorganization of the inspection system
• Reform in tax and procurement system- e-tax and eprocurement.
• Reduce fiscal burden- implementation of flat tax,
small business profit, and profit tax reduced by 50 %.
• Reduction in health and social contribution.
Investment Incentives
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100% VAT credit - importers of machinery and equipment for use in taxable economic activity
Façon producers are not subject to VAT - for services provided to their contractors.
Encouragement of power production
Fiscal incentives, such as customs duty exemption on imported machinery and reimbursed customs and excise duties for
imported liquid or solid combustibles, are aimed at investors who:
– establish new production plants with an installed power over 5 MW, , using liquid or solid combustibles, and
– rehabilitate existing plants.
(Law no.8987, dated 24.2.2002 “For the creation of facilitated conditions, concerning the establishment of new plants for the production of power”).
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Status of “Favoured Persons” – Relates to tourism activities. A “Favoured Person” investing in tourism development
is entitled to:
– Exemption from the customs duties and excise taxes on imported goods for the sole purpose of investment and
functioning of the “favoured activity”
– Exemption from the profit tax for 5 (five) fiscal years from the time of development completion of the investment.
For the 5 following years he/she will pay only 50% of the profit tax. (10 years tax incentive)
– Profit from a reduction of the profit tax up to 40%, if the profit is reinvested in Albania
– The criteria to receive the status of the “Favoured Person” are elaborated in article 7 of the law no.7665, dated
21.1.1993 “For development of tourism zones”.
The criteria to receive the status of the “Favoured Person” are elaborated in article 7 of the law no.7665, dated
21.1.1993 “For development of tourism zones”.
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Leasing of the state-owned property at below-market rent rates and, for production activities, with rate
reductions according to investment and employment levels (Refer to Fact Sheet No.9).
Energy
The only country in Europe offering immense
opportunities for hydro power.
44,000 m2 total hydrographical area, or 57% more
than it’s total territorial surface area
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70 small and medium Hydro Power Plants up for
concession.
Fieri and Vlora Thermo Power Plants
– Joint venture: Atermon SA - Roder &
Blackwell [Fier TPP)
Opportunities for solar and wind energy once
hydro power is exhausted.
Combined with the new Concession Law, the
Government and KESH will guarantee the market
for energy produced from the above, for a period
of 10-15 years.
ENERGY
Opportunities: strategic sector privatizations to come:
• ARMO –Albanian Oil Refining and Marketing Company (already
privatized)
• Distribution Department of KESH (the Albanian Power
Corporation)
• Privatization of the ARMO Marketing Company (ARMO sh.a)
• Two refining plants in Fierand Ballsh strategically located close to
the most populated areas of the country and both of the main
ports (Durresand Vlore)
• Terminal in the port of Vlore, strategically located both for import
and export purposes with large storage capacities.
• Privatization of the Distribution Sector of the Albanian Power
Corporation Albanian Power Corporation.
SEA PORTS
SEA PORTS
Shengjin
Durres
• Durres
• Vlora
Vlora
• Shengjin
• Saranda
Saranda
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CIVIL AVIATION AND
AIRPORTS
Infrastructure and facilities:
• Tirana International Airport
• BOT Concession to a German Concessionaire, since 2004. There were 600 000
passengers during 2004
• New modern Terminal for 3 Million passengers/year, foreseen up to 2024
• Only during 2007 were 1,1 Million passengers
• Another new Airport in Kukes (North Albania)
• 7 other civil and military airports
• No regular internal civil aviation service
Traffic:
• ~ 600% more passengers/year than 12 years ago
• more than 50 flights/day
• 9 Italian cities with direct connection
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Industrial Zones
• 6 potential Industrial Zones Identified.
• Cooperation with GTZ and World Bank for three
feasibility studies.
• The Albanian parliament passed the law on Free
Zones.
• The identified sites are Greenfield, with perfect
vicinity to infrastructure, sea port and logistics.
• Bid for “ Developers” to start soon.
• Full government support for the development of the
sites.
Spitalle - Durres
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Total surface of 850 ha.
Almost 50% of the population
living between Tirana and
Durres and over 70% of
business operating from this
area.
Tirana-Durres area, the most
numbered qualified workforce
in Albania.
Within close vicinity to Durres
Port and Mother Theresa
International Airport.
Excellent connection with
Kosovo market through
transnational road segment
Durres – Morine – Prishtine
International Conference:
Appointment June 10th, 2008,
in Tirana
8th CORRIDOR AND
DURRES-MORINE MOTORWAY
NISSUS
PRISHTINE
Shengjin
DURRES
TIRANE
THESALONIKI
Vlore
Korce
Sarande
GREECE
16
• Ju Mirepresim Ne
Shqiperi
• We Welcome You To
Albania
Address:
Blvd. Gjergj
Fishta,
P.
Shallvareve
Tirana,
Albania
Tel: + 355 4 252
976/886
Fax: + 355 4
247633
E-Mail:
[email protected]
Website:
www.albinvest.gov.al