World Bank supports formulation of the Southern Coastal Development Plan in Albania

Tirana, March 12, 2007 - The World Bank would like to clarify recent press reports stating that the World Bank is supporting a new private-sector investment on the Albanian coast. 

The World Bank works directly with the public sector and does not sponsor private sector initiatives or get involved in their backing.  Instead, the World Bank is assisting the Government of Albania in the implementation of the Integrated Coastal Zone Management and Cleanup Project, which is the first phase of a two-phase Integrated Coastal Zone Management and Clean-up Program. The overall objective of the Program is to protect the coastal natural resources and cultural assets and promote sustainable development of the Albanian coast.

A critical activity being currently implemented under the Project is the formulation of the Southern Coastal Development Plan, which covers the area from Orikum to the Greek boarder. The Plan, once approved by the National Council of Territorial Adjustment, will represent the formal instrument of the Government of Albania that will guide the development of this area.  Although this activity suffers from some delays, it is now on track, and September 15, 2007, has been set as the new deadline.

Under the context of this Project, in April 2005, the Government of Albania decided to put a temporary freeze on the issuing of construction permits and approval of partial urban planning studies in the southern coast (e.g., residential and tourist development land outside urbanized and serviced areas) until the approval of the Southern Coastal Development Plan (the Plan). 

With regard to the implementation of the Plan, particularly about the tourism developments, we would advise the Government that after the completion of the Plan, the Government should follow competitive and transparent process to invite the private sector to undertake investments in the coast based on the recently approved Concessions Law.