Albania Seeks to Privatise State-Owned Companies
14/02/2005
The Albanian government has set privatisation of state-owned assets as a major goal for 2005. Procedures for the sale of two companies -- Albtelekom and Albania Refining and Marketing of Oil -- are expected to start in April.
By Ardi Pulaj for Southeast European Times in Tirana -- 14/02/05
 "The privatisation of these companies aims to assist the development of economic growth through the greater presence of foreign direct investments," said Albanian Economy Minister Anastas Angjeli. [Gent Shkullaku] |
Albania intends to privatise two of its main state-owned companies, Albtelekom -- the main landline telephony company in the country -- and Albania Refining and Marketing of Oil (ARMO), with procedures scheduled to start in April. The government has said privatisation of state-owned assets is a major goal for this year.
Four companies have shown interest in taking over ARMO, and seven are interested in Albtelekom, according to Economy Minister Anastas Angjeli, who has been discussing the planned sale with the Consulting Commission of Transparency and Privatisation.
"The process of transformation and restructuring these companies in the past four years made the consolidation of their economic-financial activity possible. Now that the government passed the package of laws, they will be offered in an open international tender for privatisation by strategic investors," Angjeli said.
The economy, transport and industry ministries are working with international consultants and the interested parties to prepare for the tender.
The winner of the Albtelekom tender is expected to obtain between 51 per cent and 76 per cent of the shares of the company. The ARMO winner cannot take more than 51 per cent of the shares. ARMO is responsible for oil refineries in Ballsh and Fier, as well as for fuel wholesale and retail activities.
Albtelekom is predicting profits in 2005 of about 16.1m euros, according to Angjeli. The telecommunications company experienced significant profit growth in 2004, largely due to increases in international calling. "
The privatisation of these companies aims to assist the development of economic growth through the greater presence of foreign direct investments, based on concurrency and transparency," Angjeli said.
The process will not end with ARMO and Albtelekom. Authorities also plan to privatise the Albanian Power Corporation, the railway system, the main port in Durres, the coal industry, water supplies and the state transportation company, Albtransport.
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