Albania ’s government presented Thursday a €500 million project to construct a new container port in the city of Vlora.
The proposal put to Prime Minister Sali Berisha, by the British-Swiss company Zumax, also includes the construction of an industrial park.
Albania currently only handles container cargo through the port of Durres, which is located 29 kilometres from the capital, Tirana.
The move is being seen as part of Berisha’s centre-right government’s robust campaign to secure greater foreign investment in the country.
Last year the government presented the “Albania for €1” initiative, aiming to increase foreign direct investment after years of stagnation, due to a tumultuous transition from the communist command economy to a free-enterprise democracy.
Under the scheme, publicly-owned land and assets are made available to investors for a token price, in exchange for the promise of substantial capital investment.
The scheme is open to both foreign and domestic investors.
The government is also planning a big round of privatization in 2008, which will spell the end of public ownership of the last major assets currently controlled by the state.
The distribution branch of Albania’s power utility, KESH, the insurance company, INSIG, and the only oil refinery in the country, ARMO, will all be sold off later this year.
The government's sweeping privatization plans follow the introduction of a flat-rate taxation system at an exceptionally low rate of 10% at the beginning of the year.