This project is funded by the European Union

Adriatic Cooperation for Industrial Development NPPA INTERREG III A / CARDS PHARE

Feasibility study for the development of industrial areas of Scutari ALBANIA

Ottobre 2008

Feasibility study for the development of the industrial area of Shkodr a October 2008

Page 1 of 71

INDEX

Chapt. I

INTRODUCTION

Page.

Chapt. II

THE OPERATIVE MODALITY OF THE INTERVENTION TRACES OF THE INDUSTRIAL HI STORY OF SHKODER

Page.

Chapt. III

Page.

Chapt. IV

MACROECONOMIC OUTLINE OF ALBANIA

Page.

17

Chapt. V

THE INDUSTRIAL PARC OF SHKODER

Page.

29

Chapt. VI Chapt. VII Chapt. VIII Chapt. IX

ASPECTS OF THE ACTUAL SITUATION

Page.

38

THE NEW INDUSTRIAL PARK S IN ALBANIA CRITICALITY AND POTENTIALITY OF THE INDUSTRIAL AREA OF SHKODER THE RECUPERATIVE INITIATIVES LAUNCHED

Page.

50

Page. Page.

53 60

Chapt. X Chapt. XI

PROPOSALS AND IDEAS FOR THE REUSE CONCLUSIONS

Page. Page.

64 68

ATTACHMENTS

Page 2 of 71

ATTACHMENTS A) MAPS
A.1) A. 2) A.3) Industrial park of Shkoder Urban development plan of Shkoder The new road network of Shkoder

B) PROPOSALS OF RECUPERATION MANUFACTURE OF THE EX CIGARETTES FACTORs

B.1) Aerial and panoramic photo of the ex fabric of tobacco and cigarettes and of the fabric of cigarettes. Proposals for the reuse of the buildings of the ex fabric of tobacco and cigarettes of the fabric of cigarettes. Panoramic photos of the industrial area and a proposal of reutilization of an industrial shed.

B.2)

B.3)

C) EXAMPLES OF INDUSTRIAL RECOVERED SITES C.1) C. 2) C.3) C.4) Dafinor Shpk Progress Metal G Shpk Adelchi Bertton Sh.p.k. G.r.e.n Shoe S.r.l.

D) EXAMPLES OF DIFFICULT RECOVERABLE SITE D.1) Tannery and manufacture of leather

E) TECHNICAL REPORT FOR THE LOCALIZATION OF THE EVALUATION PARAMETRES OF RECUPERATION INTERVENTIONS

Page 3 of 71

Chapt I)

INTRODUCTION

Structure of the document The present document is substantially divided into two parts: - The first has a descriptive c haracter that illustrates the arguments of proper thematic analysis for the aim of the present study. - The second is illustrated through elaborated graphics and photographs (attachments) for a tangible presentation either of the fact situation, with its h istorical evolutions, or of the consequent proposals.

The present document represents the product realized as a consequence on the behalf of TEULEDA The Agency for the Local Economic Development of Shkoder which is holderof the project INTERREG TRAN SFRONTALIERO ADRIATICO with the title Project ACIND Adriatic Cooperation for Industrial Development at the Interconsulting Studio of Venezia. The INTERCONSULTING Studio of the Ing. Loris Favero of Venezia , called previously INTERCONSULTING, has realised the present actions with : - The employment of its own consultants that have operated in Albania, in the areas of Shkoder and Tirana, as well as by the studio in Venezia - The use of local professional resources regarding the graphic survey nd process - The informative cooperation of the local entrepreneurs - The prforming of meetings with Local Institutions and Entrepreneurship associations, such as Communes of Shkodra, Northern Albania Development Union(USNA), and local entrepreneurships. - The performing of meetings aimed at the Albanian and Italian entrepreneurs for the launching of the operations of macthing aim for the development of joint initiatives. The mix of consulting and professional assistance used in the realization of specific actions previously described, have allowed reaching the multiple results pre-arranged in the proposed topic. It has been particularly kept as evidence the finality to motivate the economic cooperation which was productive through the development of strategic areas with indu strial destino and especially the territorial re-qualification, in eco-supporting optic, of the area with industrial destination placed in the north-east suburbs of the town of Shkoder called Industrial Park of Shkoder

The principal finalities of the pr esent initiatives regard:

Page 4 of 71

1. the study and the presentation of proposals for the reuse of productive areas in the industrial zone of Shkoder with indication of the feasibility of proposed initiatives. 2. the launching of a cooperative dialogue among the produc tive realities that could be aggregated in such areas. 3. the promotion for the launching of bilateral initiatives of Italian -Albanian industrial cooperation aiming as well at the reuse of productive areas proposed by the Local Community, 4. the launching of matching activities among the Venetian and Albanian entrepreneurships 5. the predisposition of necessary indicators and parameters for economic and convenience evaluations.

The activities of the consulting have been structured in the following actions: Action A) o Historical social research for the industrial development of Shkoder and analysis of the actual factors of criticism and potentiality. o The survey of the productive areas of the Industrial area of Shkoder and representation of them.

Action B) o Census of the productive significant products that could find it necessary the installation in such areas. o Research of inter-boundary initiatives (Italy and Albania) that could be collocated/ collocazione in such areas.

Action C) o Elaboration of a proposal for the reuse of the offered areas underlining the convenience and the development opportunities. o Study of proposals of feasibility for the use of play areas and buildings of the industrial area of Shkoder.

Chapt II) THE OPERATIVE MODALIT IES OF INTERVENTION

Page 5 of 71

The operative modalities of the present intervention Like all the interventions of analysis and study there have been defined the operative modalities of development of intervention and therefore there are displayed the specific actions that Interconsulting has developed in the sphere of the activities of consultingconsisting of : study, analysis, projection and definition of the final proposals.

The intervention of consulting has been developed according to the following phase/proj ect actions:

PHASE 1) Survey of the productive areas of the industrial area of Shkoder

The activity has been developed in the realisation of an analysis turned to the production of the existence of the indicated productive areas, finalis ed by their revitalisation and productive restructuring in eco-compatible key. The referring information, aimed at effect the survey of the state of fact, has touched the following aspects: Localisation of the site, dimensions, infrastructure; state of conservation; feasibility, Access; etc. Vocation at specific productive sectors; strong points and characteristic valenze; weak points and criticism. Substantial survey of the current possible proposals.

The survey phase has been developed through the elaboration of adeq uate technical-descriptive forms for the collecting of the information and they have been completed together with the responsible by the public and private structures involved in the initiative. Teuleda has favoured the access to the present institution al information, relative to the arguments, objects of analysis. It has been therefore possible elaborate a mapping of all the available areas and evaluate the possibility of an effective use. The elaborated graphics bring back the reproduction of the named areas.

Page 6 of 71

PHASE 2) Census of the productive significant sectors that could find necessary installation in such areas

The activity has been allowed in the research of Albanian and Italian firms to realise a monitoring of the productive comparts that more than any other could launch a short initiative of commercial industrial cooperation. The sectors of cooperation have been individuated in the following comparts: Manufacture (clothes, textile, shoe, etc.) Building trade (new materials, logistic for shipbuilding etc) Metal mechanic (mechanic work, stamping plastic materials; etc.) Environment and energy (new sources of energy: fotovoltaiche applications, biomass, eolico, etc) Manufacture (restoration, conservation, building trade); Pharmaceutics; Agro aliment; Extracing minerals

The phase has been developed through visits and interviews aimed by the firms, using appropriate forms of collecting data, purposely studied and predisposed according to the requirements.

PHASE 3) The elaboration of a proposal for the use of the areas offered evidencing the conveniences and opportunities of development.

The result of this phase is concretised in the realisation of the elaborated present that brings together, after an opportune analysis, the results of the previous propaedeutic actions to the predisposition of the present proposal having as objective to the redaction of the present Study of feasibility for industrial areas in the area of Shkoder The document could become a means of appreciated in terest for the diffusion of the results achieved with the realisation of this project, offering an important instrument to the local community for the support of the entrepreneurship initiatives.

Page 7 of 71

Chapt. III) HINTS OF THE INDUSTRIAL HISTORY OF SHKODER

SHKODER (Scutari)
It has been considered necessary a calling back to the industrial history of this territory to represent the aspects of the propension of the same, intense and as population towards the commercial and productive activities. The city of Shkoder is situated in North -East of Albania, at the border with Montengero, 30 km away from the Adriatic sea, in a strategic position for Albania with the bordery country Montenegro and Adriatic sea. SHKODER (Scutari) is one of the antique Albanian cities, an important economic and cultural centre with about 190.000 inhabitants. It is expanded in the meridian part of the over Shkoder valley by the lake of Shkoder (Liqeni i Shkodres), between the rivers of Drini and Bune, the montuosa chain of Tarabosh and the castle of Rozafat. Shkoder, the only city with the majority of Catholics in Albania, with a very open vision towards West. The city preserves still the antique traditions in the productive activities connected to the manufacture. Shkoder has for centuries developed close relationships with the Serenissima fo r Veneziana. The story proves that the town of Shkoder since ancient times has been an environment of culture with honourable traditions in many fields of music, painting, architecture, literatur e, etc. The first encounters of the productive economic activity date back around the XVII century, a moment in which the city under the Turkish domain started to prosper and became the centre of the sanjak, administrative Turkish units. This became the economic centre northerner Albania, there were opened fabrics of cotton, guns and the first silver manufactures were produced. There were constructed two -floor buildings, the bazaar and the bridge of Mesi (Ura e Mesit) on the river Kir. The road activity built during the second half of the XVIII century, presents a length of about 100 metres, with 13 arches of stone, the biggest is 12 metres high and 22 metres large. In the XVIII century the city became the centre of the pashallek of Shkodra, under the government of the Bushati family, which ruled from 1757 until 1831. fter their fall, the people of Shkoder made many resurrections against the Ottomans, during 1833 -1836, 1854, 1861-1862, and 1869. Shkodra became an important commercial centre in the secon d half of the XIX century. The seminar of the Jewish and the council of the Franciscans was opened at the same XIX century. Shkodra had an important role during the Prizren association, the liberal Albanian movement where the Albanians participated and defended the Albanian land.
Page 8 of 71

In the XIX century the Shkodra was described as culture town. The Bushati bookstore, built during 1840, served as centre for the Prizren League. Many books were collected in bookstores of Catholic missionaries that worked in Shkoder. There were formed the literature, the culture and the associations of sport, such as "Bashkimi" and "Agimi". It was opened here the first typography and in 1555 the Missal of Gjon Buzuku was created, the first document in Albanian language. The Marubi family, constituted an incredible photo archive that collected photos of the Albanian history; during the free Albanian movement and the raise of t he Albanian flag in Vlora, its negative went over 150.000. furthermore Pietro Marubi immortalise d other moments as well, significant to the Albanian history during the end of the XIX century and of the beginning of XX century. The city was object of conquer, conquer by confined such as Serbs and Montenegrins until the Austrians against which they opposed with local resistance movements between the end of the XIX centuryuntil the beginning of the XX century.

Productive and commercial activity in Shkoder in the second half of the XIX century During the second half of the XIX century, when Al bania was at the end of the Turkish Empire, it was noticed a certain economic and commercial development, specially in the main Albanian cities among which was Shkoder. In fact, the Decree of the Ottoman Empire of the 1861 allowed the local Albanian authorities to directly give the permissions and licences to the Albanians for the opening of the own manufacture and commercial activities. In the coming years, it was finally opened the road to free competition for the manufacturers and commercials in the determination of the prices according the rule of the free market, a meeting between demand and offer, and as a consequence it asked to lowerthe roduction costs and increase the volume of production. During the end of the XIX century there were many turns activities such as: Sea transport; exchange; shoe trade; trade of food ; working with iron; manufacture of clothes; manufacture of the national clothes with embroidery in gold and silk; watches; hotel. The products that were at the time imported to Shk oder were: 1. Food 2. Dried fruits 3. Material for building trade 4. Metals 5. Pharmacy 6. Oil 7. Alcohol 8. Map The products on the other hand they wre eexported from Shkoder abroad were: 1. Animals 2. Skin of animals half-worked 3. Wool
Page 9 of 71

4. 5. 6. 7. 8.

Wood for the fire Grain and mais Fish Tobacco Tissues of silk and wool

Nel 1880 il valore dei prodotti che venivano esportati da Scutari verso lestero costituiva il 54% del totale del valore dei prodotti che venivano importati dallestero a Scutari. I due punti importanti da dove entrava e usciva tut ta la merce a Scutari erano: 1. Il Porto di Shengjin a Lezha dove le navi Italiane e Austriache delle grandi societ di trasporto marittimo come la Pulia, Adria e Llojdi venivano due volte alla settimana a sbarcare nel porto dellNord Albania. 2. Oboti nelle vicinanze del Fiume Buna - dove veniva la nave austriaca (Bojana) ogni 15 giorni Lo sviluppo del commercio port anche allesigenza e al bisogno di servizi legati alle attivit finanziarie e del movimento pi veloce della moneta cos come anche lo sviluppo del settore di cambio moneta. Si vede quindi nascere la prima Cassa di risparmio che era La Banca Agricola Ottomana (Ziraat Bankasi) la quale effettuava anche operazioni di concessione dei debiti a medio e lungo termine ai nuovi imprenditori e c ommercianti di Scutari. In questo clima si vedono le nuove Agenzie di Assicurazione di Generali aprirsi a Scutari, Durazzo e Valona. Si apre a Scutari la prima Camera di Commercio, il Tribunale, Uffici Postali e Agenzia di trasporto marittimo. Circa 60 imprese produttive e commerciali di Scutari avevano i loro agenti o rappresentanti commerciali a Trieste, i quali servivano come punto di riferimento informativo e commerciale con il mercato italiano ed austriaco. In questi anni di sviluppo economico prendono vita anche le prime iniziative industriali. Alcuni artigiani e commercianti arricchiti velocemente cominciano a portare a Scutari i primi macchinari per la lavorazione della materia prima locale. Si vedono le prime macchine motorizzate che effettuano la lavorazione del filo di seta. Le piccole fabbriche che vengono aperte in questi anni a Scutari sono: Fabbrica di produzione di sapone (180 tonnellate allanno) Fabbrica di produzione di pasta Fabbrica di produzione di stoffa in lana e cottone Fabbrica della produzione del vino e dellaccetto Fabbrica delle sigarette (con 100 operai nel periodo migliore) Produzione di Laterizi Tegole Lavorazione del grano Tipografia Piccolo cantiere navale The constitution of these firms, wvwn though slow, indicaed that Shkoder was in the way of starting the economic and commercial development. But it must be underlined that all these firms had a reduced capacity if reproductive number of employers. However, the installing of the produced articles from the fabrics was a little in comparison to those put in the local market from the many small manufacturers that worked and with their products filled the inner market.
Page 10 of 71

The first fabrics and the first manufacturers present in Shkoder since the beginning of the XX century but they never managed to effectuate the quality leap for their transformation into a real and proper industry. The factors that have negatively marked in the economic-industrial development of Shkoder are the following: 1. every year a great sum of money, collected through the fiscal system of the ottoman Empire, was sent to Istanbul to enrich the Turkish administration. To give an example that the Albanian wealth was directly sent to Turkey, you should take into consideration the following data: 80% of the complex import constituted by the fiscal tax revenue collected every year from the Albanian citizens was transferred in Turkey and only 20% remained in Albania to support the public administration. This policy has been followed in the 1860 1912 until independence of Albania by the Ottoman Empire. 2. In Albania entered goods by the foreign markets and especially from Austria and Italy through the sea different products with very low customs duties. European product which were more competitive, than albaninan ones, strongly reducted the inner demand toward These two factors have contributed in principle negatively in the productive and commercial activity of the Albanian fabrics and especially in those of the city of Shkoder. The fabrics of Shkoder not be ing able to compete with products of the European market of high quality, and the other part suffocated by the west fiscal system, have entered into a strong crisis that has brought a heavy deterioration to the Albanian economic system. The consequence of this was perceived already in the first years of the XX century where the commercial balance had changed a lot. The value of the products imported was three times the value of the exported products. This strong commercial deficit that has continued fo r decades even during the First World War, has brought the Albanian economy into a limit situation. A help and support to the Albanian economy was provided the income of the Albanian emigrants in the countries of the Western Europe and in America, and t hey have been supporting their families for years. At the end of the first Balkan war, the 28 November 1912, some political exponents of the country among whom Ismail Qemali declared independence of Albania from the Ottoman Empire while the country entered a civil and political disorder. Several governments followed trying to develop a laic county, independent and democr atic. Such tentative were supported by the intellectual elites, by small and medium urban and nationalist bourgeoisie, by the nobility and representatives of high class of the nationalist Albanian families an by the community bounded with the Albanian Diaspora in Europe and in USA, with the support and intervention of the Society of Nation in the 20s. The process of democratic and laic reform was interrupted by the political military coup-detat lead by Ahmet Zogu, that transformed the nation in a monarchy, self declaring king with the name Zog I.
Page 11 of 71

During 1924-1943 there developed intensive bilateral economic relationships between Albania and Italy. From 1924 to 1939, Shkoder had a slow industrial development. Small factories producing food and cloth were opened, and the production of cement was launched as well. In 1924 their number was around 43 units, in 1938 there existed 70. Shkoder was the shelter of Catholic Archbishops. In fact, there weer opened many religious schools. The first laic school was opened in 1913, and the state gymnasium was opened in 1922. In 1937 it was founded the communist group of Shkoder. It was the largest Albanian organization that spread its ideology in the whole Europe. During the Second World War, the inhabi tants of the city fought against the Italian armed forces and resisted long with demonstrations and attacks. The resistance was organized by the communists that later formed the fighting group of the Partisans. During the 50 years of communist regime t hat followed, Albania was a national communist country, extremely isolationist, Stalinist and anti revisionist, which dedicated few energies to the political cooperation with the other communist countries. The country, saved by a fierce communist dictatorship, suffered an international isolation and a grave economic underdevelopment. Il In the city of Shkoder, like in all Albania every kind of private initiative was suspended. All the manufacture, fabrics, typographies, agricultural properties, shops etc. of private property were nationalized in the first years of the communist regime. The entrepreneurs found themselves without any good or civil and human right. There were the years of terror and human tortures towards the intellectuals e the medium -high class of Albania. The productive reality, starting from 1950s until the 1990s was state owned, thus having cancelled the existence of any productive form of private origin. Consequently every economic productive initiative started only after a decision of government high levels. The economic state politics has addressed Albania according to the 5 -year-development five-year planning. The decisions are taken at a central level to arrive then at the executive levels to the local authorities for every type of investment

In the 60 80s the economic development of the city of Shkoder has lived a period of opening of new state fabrics in different sectors. The industrial reality of the city of Shkoder consisted primarily of the flowing types of activities: Manufacture of the tobacco and production of cigarettes Manufacture of wood and production of diverse furniture
Page 12 of 71

Production of cloth for clothes Electro mechanics Building trade Cementmakers Artistic works Production of electric cables Production of various foods Manufacture of leather Production of shoes Factory of wood and paper Production and reparation of Pullman Production and reparation of agricultural machines Transport Services

In spite of the variegated productive activity existing in Shkoder, the quality level of the finished goods was not satisfactory. The motive consisted in the reduced organising frim capacity, missing the technological know how and having a low quality of raw materials.

The majority of the products was address ed to the local inner market. But there were as well products that were exported abroad, especially in countries of Eastern Europe. Among the products that the state owned firm that were exported were cigarette, electrical caves, manufacture products that used as raw material hay, artistic products of watermark. Those few commercial relationships that Albania had during the 50 years of communism, were only with the countries of the communist block, there didnt exist an economic - commercial relationship with the developed countries of Western Europe. This almost total closure towards the outside world had very much conditioned not only the economic industrial development of the country, but it had as well negatively conditioned the freedom of people regarding the human rights, there was the lack of political and religious freedom as well. After the fall of the Berlin Wall in 1991 even in Albania the general situation started to change. SHkodr was the major centre of democratic movements in 1990 and 1 991. there were many demonstrations and conflicts with the police forces, when the population asked for the end of the communist regime Under the popular pressure and of the massive escape abroad of the populations, Ramiz Alia successor of the dictator H oxha, admitted the political pluralism and accepted the first free elections.
Page 13 of 71

In 1992 the new elections brought to power the democratic party of Sali Berisha. This was the year of the turning point for the history of Albania. The results were immediately visible not only in the political and religious liberty, but in the opening of the borders and especially in the fact that there were straight away attracted foreign investments in the country. In the following years it was one of the best periods in whic h many Italian entrepreneurs among whom many from Puglia, decided to internationalise their firms and opened new ones in the main Albanian cities. In Shkoder the two most significant Italian investments were in the sectors of: 1. Shoe : Calzaturificio Adelchi 2. Underwear: Cottonella In 1997 a insurrectionary movement destabilised the country creating non few difficulties to the productive commercial activities. Following months of high insecurity, of a strong anger of the population which felt hard done -by the phantom financial societies that promised high interest rates, but which in the end were discovered to be a fraud. There was a disastrous initiative that produced another humiliation and subtraction of those few monetary funds possessed by a population who had just come out of a fierce dictatorship. In a political situation where the presence of the state was practically inexistent, the bands of foolish and criminals who escaped prison, took possession of guns spreading a strong fear and insecurity. As a result, the majority of the state owned firms were attacked, dmaged robbed and some of them even burned. The revolts and the difficult situation brought to the anticipated political elections. The elections of 1998 were won by the socialist oppos ition, lead by Fatos Nano. Rexhep Meidani took the position of S. Berisha as president of the Republic. One year later with a referendum it was approved the new Constitution and the inner agitation provoked the dismissal of Nano where Pandeli Majko enters into the scene. Ilir Meta was in charge of forming the new government. The large influx of refugees from Kosovo in 1999 following some movements in that country, made possible that a part of the refugees arrive to Shkoder. It was meant to give hospitality to such refugees in the building of the of the ex tobacco and cigarettes firm and there are still remained traces of the modifications made to make the furniture inhabitable.

The recent historical evolution has seen many foreign entrepreneurs, main ly Italians, approaching this country with different types of initiatives. From these though, only a part is still present, the others have retied. The essential reason of the retirement of the first foreign entrepreneurs in
Page 14 of 71

Albania is mainly related to th e general instability that was created in the country in 1997 as well as in the following 2 3 years. But at the basis of this phenomenon, there are also the following reasons: 1. The population, and therefore even the potential economic operators, were not ready to perceive the change conserving all the problematic and negative factors of the communist regime (concept of ownership, abuse of the welfare state , motivation, poverty, etc.). 2. there werent the right conditions in the country to launch or manage a ccording to the European examples the entrepreneurship activities, including the firms conceived according to the communist model applied in Albania, after thorough evaluations. The culture of entrepreneurship was still inexistent. 3. the entrepreneurs that dared hadnt profoundly analysed the country, its situation, or the persons proposed to cooperate in launching the activities individuated as business.

In 2005 after the last elections, the Democratic Party came into power with the Prime M inister Sali Berisha. From the historical analysis that precedes it can be affirmed that only lately (4/5 years) the country has hired a behavioural aspect according the European models. Even the area of Shkoder has changed and is following the transformations, even of mentality of the most advanced parts of the country. The story of this city and of its territory proves that the local social cloth is able to interact with other populations and cultures, to achieve what could be advantageous to achieve in this part of Albania.

Page 15 of 71

THE POTENTIALS OF THE LOCALITY OF SHKODER As illustrated in the previous historical economic analysis, the area of Shkoder can offer even interesting logistic potential for the development of the economic and productive activities even though it could seem decentralised in comparison the big axes : Tirana - Durazzo

As it can be noticed from the map, it can interact with territories and economic konteste of great interest, Albanian as well as foreign, and be an important crossway of trafficking and transborder services. All the potentials of the logistic factor could be associated by the historical cultural background of the local population that could support important initiatives of interaction with operators, local or foreign ones. The union thus of these factors : Strategic territory, Infrastructural axes, Qualitative level of the populaton Opening of the Local Administrations Industrial history Allow to create the basis for initiatives of rebirth and of economic development of the area.

Page 16 of 71

Chapt. IV)

MACROECONOMIC FRAME OF ALBANIA

This chapter serves to frame better the object of the present study regarding the ongoing of the whole country. It represents a general view of the country seen in the optic of the Albanian Italian relations and it constitutes a reference for the constatation of the fact situation and for the connection with the conclusive proposals of the present document. 1) MACROECONOMIC FRAME 1.1) Economic ongoing and risks of the country

The Albanian economy keeps growi ng with an average of 6% annual taking into consideration the period 2003-2007, however it remains one of the poorest countries in Europe. According to the Bank of Albania the income pro-capita in 2007 has been about USD 3.200, and the tax of unemployment 13,5%. About 60% of the labour occupies the agricultural sector although the construction and services sectors are quickly expanding. However in 2007 the sector of building trade suffered a reduction of 19% because of the lack of issuing permissions to bui ld, in spite of the high demand of investments. Despite the growth of the PIL of about 6 % for the 2007, the annual inflation has been attested 3% with a strong increase of the food products in the last period of the year. The deficit of the balance for 2007 has reached 344,9 million Euro and it is foreseen a worsening of such trend for the 2008 where it should reach 7,9% of PIL, while the public debt in 2007 reached 54,1% of PIL. The custom rent in 2007 has been favourably going registering an in crease of 16% compared to the previous year, going over the 2% predicted by the Finance Minister. Even the foreign sector has been characterized by a continuous increase of the deficit of the current partes and of the commercial balance which in 2007 reached 22% of PIL. The agriculture that represents 1/3 of the PIL is stagnant because of the frequent draught and of the absence of an adequate modernisation. Almost the whole 2007 is characterized by draught and non favourable climatic conditions for the agricultural production and by a strong energetic crisis especially in summer period. The climatic conditions, the problems relative to the infrastructure of the energetic sector, the lack of energy supply from abroad are reflected on the internal p roduction and on the commercial and services balance. The touristy sector is improving and it has been approved a new law for the developing of the services. In 2007 there was an increase of 11% of tourists in comparison to 2006.

Page 17 of 71

However, the main suppo rt factor to the Albanian economy remains the one from the income from abroad, mainly from Greece and Italy that help the imports and consequently the commercial deficit. The energy sector has strongly conditioned the economic growth for the production lack, is becoming an urgent sector and the government has undertaken expansion policies to recuperate the strong dis-level between the national demand and production. It is initiated the construction and reconstruction of various thermoelectric and hydroel ectric centrals and new initiatives are on the way, to use the oil resources in Central South Albania. The macroeconomic data of the official Albanian economy do not include the submerged economy that has reached very high levels. Recently the Albanian authorities have launched some mechanisms among which the prohibition to make cash transactions above a certain sum of money (about Euro 2.300), aiming at reducing such phenomenon. The SACE (a group which operates in the sector of credit insurance, protection of investment, financial cautions and guarantees) keeps Albania at the 6th category of risk (minimum risk category 0, maximum risk category 7 ). However, the fact that the country has undertaken a wide program of reforms makes possible for the medi um long prospective period to be favourable. It is hoped that in a near future the country can enter the 5 th category of risk. Though the international observers the risk rating of the country at a high level. 2003 P.I.L. (increase %) P.I.L. (mil $) Income pro-capita $ Tax of inflation Commercial balance Imports (mil. ) Exports (mil. ) Income (mil. ) I.D.E. (mil. ) Unemployment tax % Deficit balance/PIL Source: Bank of Albania 6 5.600 1.806 3,3 -1.243 1.638 395 782 158 15,0 4,5 2004 6 7.452 2.329 2,2 -1.276 1.762 485 1.028 278 14,6 5,1 2005 5,5 8.382 2.619 2,0 -1.476 2.006 530 939 224 14,2 3,6 2006 5 9.136 2.855 2,4 -1.685 2.316 630 933 260 13,8 3,1 370 (a) 13,6 (b) 3.150 3,0 -2.134 2.918 784 2007 6 (*)

Page 18 of 71

1.2) The level of the opening of the country in the international trade and foreign investments The access of Albania to the World Trade Organization, in September 2000, has allowed the application in loco of the policies and rules of the international trade, that assure the foreign investors the equality of treatment in the trade relations. The country enjoys a preferential access in the market of the European Union, benefiting the fiscal tax breaks on exports. On 12 June 2006 the European Union and Albania have signed an agreement of stabilisation and association (ASA/MSA) and a further Interim Agreement that allows the free import of goods from countries of the European Union. Such agreements are ratified by the Albanian parliament on the 3 August 2006. The Interim Agreement entered into power 1 December 2006 and based on the new normative 83% of the industrial products imported in Albania from the countries of the European Union is exempted by customs taxes. For the remaining 17% (that includes hydrocarbon, fertilisers, plastic products, etc.) it is foressen a gradual reduction of the entrygases in a period of five years . Furthermore, in the frame of the Stability Pact, Albania in the previous years has co ncluded agreements of free exchange with some countries of the Balkan area. From 1 May 2007, Albania is part of CEFTA (Central European Agreement on Free Exchange ) where adhere also countries like C roatia, Serbia, Bosnia-Herzegovina, Montenegro and Moldavia. Such agreement is important for the creation of an area of free regional exchange always advancing to actuate a harmonisation of the customs and fiscal normative of the adherent countries, propaedeutic to a future adherence in the EU. In 2007 the deficit of the commercial balance has reached the 2.134 million Euro, with an increment of 26,4 in comparison to the previous year, wighing upon in a relevant way the import of energetic products (+51,5%) to stand for the continuous heavy crisis that the c ountry is facing. In 2007, the Albanian foreign trade had an increment of 25,6% reaching 3.702 million Euro. Particularly, the settings have increased with 26% and the exports 24,5% in comparison to the previous year. The imports regard mainly the machi nes and equipment (20% of the total); food and beverages (16,6%), energetic products (16,6%), building materials (15,8%), chemical and plastic products (15,8%), textile and shoe wear (10.3%). About the composition of the exports, at the first place there are the textile and shoes (manufacture faon) with 43,9%, followed by building materials and metals (15,8%) and food, beverages and tobacco (7,3%). The main commercial partners of Albania are: Italy , Greece, Turkey, Germany, China and Macedonia. Following the recent accords for the creation of an area of free exchange there is a net increase of the percentage of inter-exchange with the Balkan partners especially Bulgaria, Romania, inter -exchange Croatia; in strong increase also the trade with Russia and Ukraine. Foreign Albanian trade (million EURO)
Page 19 of 71

2003 Albanian import Albanian export Inter-exchange Saldo Source: Bank 1.638 395

% variat. 10,3 19,6

2004 1.762 485 2.247 -1.277

% variat. 7,5 22,7 10,5 2,7

2005 2.007 530 2.537 -1.477

% variat. 13,9 9,2 11,4 15,6

2006 2.316 630 2.946 -1.686

% variat. 15,4 18,8 14.9 14,1

2007 2.918 784 3.702 -2.134

% variat 26 24,4 25,6 26,5

2.033 -7,6 -1.243 7,6 of Albania

Albanian Import 2006-2007 (% on total) 2006 % COUNTRIES 1 Italy 28,7 2 Greece 15,72 3 Turkey 7,62 4 China 5,97 5 Germany 5,66 6 Russia 4,07 7 Ukraine 3,83

2007 % 27,13 14,56 7,29 6,66 5,47 4,08 2,62

Albanian Export 2006-2007 (% on total) 2006 % 2007 % PAESI 1 Italia 72,61 68,09 2 Greece 9,60 8,32 3 Germany 3,16 2,45 4 Macedonia 1,60 2,27 5 Turkey 1,27 2,27 6 China 1,10 2,52

1.3)

Ongoing of the commercial inter -exchange with Italy

Italy represents the main commercial partner for Albania, with a quote of about 35% of the whole Albanian foreign trade. In 2007 the Albanian imports from Italy increased about 21,72%, while the exports increased 16,79%, but the quote of the imports in comparison to the total has decreased from 28,07%, to 27,13 and the quote of exports has decreased from 72,61 to 68,09, lowering the quote of the internal inter-exchange from 37% in 2006 to 35% in 2007. The main products exported towards Italy are : clothing and shoes (manufacture faon), construction material, minerals , machines and exchange parts and wood manufacture. In 2007 there was a rilevante increase of the exports of minerals and energetic products (+148%), the work with wood has increased to 30,39% and the manufacture a faon textiles eand shoe to 11,4%. The imports from Italy regard carburize, food products, machines and exchange parts, building materials, chemical and plastic products .
Page 20 of 71

In 2007 the import of the construction materials had an increase of 37,4% those of the machines and exchange pieces of 33,5% and of food products 13,5%.

2)

CHARACTERIZATION ASPIRING TO THE INTERVENTION

2.1) Evaluation of the commercial penetration of the Italian products on the local market

The commercial penetration of the Italian products in Albania is good but it could be extended to other market segments especially in the emergent sectors. In fact, more than 1/3 of the Albanian imports come from Italy. The made in Italy implements a strong fascination on the Albanian consumer. In substance with the increase of the life tenure it increases also the orientation towards the Italian product of major life quality, not only in the clothing and food products, but also in other sectors (decoration, materials for edilizia, etc.). 2.2) Evaluation of the investments directed to and from Italy

During 2000-2007 the foreign investments have gone over the milliard and a half in the first nine months of 2007, they were equal to 370 million Euro. Albania offers notable natural resources such as: petrol, gas, coal, hay, chromo, cave of primary materials for building trade, water and potential electrical power. There are more than 1.000 foreign companies in different European countries and America. The sectors where there are more investments are the one of telecommunication (35%) and the industry one (32,5%). Furthermore, the process of privatisation in act of various states owned societies presents the opportunity in strategic sectors like the mineral one, of energy, gas, telecommunications, and finance. In the last period, many foreign societies have been interested in the construction of hydro electrical implants and eolic that the government is programming to face the energetic power crisis and the use of the oil resources of the country. There have been launched in fac t privatisations of diverse state owned societies such as Albpetrol, INSIG (state company for the insurances and KESH (National Electric Company of the state). For the Italian entrepreneurships there exist good opportunities of investment in this field . The society Albtelecom has been recently sold to a Turkish group (Calik Enerji). Italy occupies the first place regarding the number of the firms with participated capital (51,1%) followed by Greece (24,3%); and then regarding the quantity of investment s, Greece
Page 21 of 71

occupies the first place with 4 8%, followed by Italy with 30%. The investments coming from the countries of the European Union are 82% of the total. About the economic sectors of destination, at the first place its the trade (67%), therefore industry (17%) and services (6%). The Italian investments are mainly concentrated in the western part of the country, along the Adriatic coast. It is about intervention of small medium entrepreneurships that operate for the 35% in the builng trade sector; 21% in the textile and shoes (production a faon); 16% in trade and services; 8% in the agro alimentary industry. The main strong points that attract the interest of the Italian investors are especially : the geographical nearness; the favourable climatic conditions; the diffusion of the Italian language in the local population; the low cost of the half qualified labour with much lower wages than the Italian ones. The sectors where it would be desirable to develop a strong action of direct prom otion are: infrastructure, logistics, energetic and public utilities sector , the textile and clothing sector, road and docker structure, which are in a rapid improvement (supported also by the Italian cooperation). In 2006 the Italian presence in Albania was reinforced with the buying of 80% of the shareholder capital of the BIA ( Banca Italo Albanese) by the Gruppo Intesa Sanpaolo. Another Italian bank presence is represnted by the Banca Italiana di Sviluppo (B.I.S) initially controlled by the Banca Popolare of Puglia and from the second semester 20 08 by the Veneto Banca SpA. From this follows that the presence of qualified financial institutes offers an important support to the firms of the North East Italy interested in the investments in Albania. On the 1 January 2008 entered into power the fiscal reform that should contribute the realisation of a more competitive economy and to create a better climate for the foreign investments. It has been adopted a flat tax of 10%, while the previous fiscal system foresaw a tax on the firm of 20% and a progressive taxation from 1 to 2 0% for the physical persons, while the VAT remained unvaried at 20%.

2.3)

Evaluation of the potentiality of commercial and industrial cooperation in the sectors of high technolog ical content

There is a strong technological demand in the country, matching the standards of the western type. It is enacted a process to bring the technological aspect of the infrastructure at a higher level. Such a process could generate interesting opportunities for the Italian firms in the energetic sector and the touristy one. Another interesting sector for the Italian firms is the telecommunication one for the improvement of the internet network and the connected services; it has been required by the Albanian Prime Minister the intervention of Italian societies for the empowerment of the information connection between Albanian and Italy.
Page 22 of 71

2.4)

Suggestions for the activation of instruments of financial and public insurance support for SACE and SIMEST

The SACE has given a signal of appreciation towards this economy reducing the risk of the country from the 7 to the 6 category, as indicated above. Such interest and opening towards Albania follows auspicabile in the future as well. Regarding SIMEST, a positive result has been obtained thanks to the extension of Albania to the Balkan Fund that consists in a rotating and finalised by the financing of added interventions of the SIMEST to favour the constitution of the firms in the member countries. Beneficiary subjects are the Italian firms that realise investments in some countries with or without a local partner. The maximum sum of the participation of the Fund is 516.465 euro for operating. Such fund for the number of the countries that it co ntemplates appears still limited and it is desirable to be incremented in the future after the opportune evaluation of the results.

3) COMMERCIAL POLITICS AND ACCESS TO THE MARKET

3.1) Tariff barriers

Albania, as member of the World Trade Organization (WTO), has progressively reduced the customs tariffs on imports, in line with the rules of the organization itself. Based on the new economic relations established by the Agreement, 83% of the industrial products imported in Albania by the countries of t he European Union, will be exentuated by the customs taxes. For the rest of 17% that includes hydrocarbon, fertilisers, plastic products etc. is foreseen a gradual reduction of the entering gas in a period of five years.

3.2)

Non tariff barriers

High discretion and missing respect for the norms by the operators of public structures, unfortunately still spread in sectors of this economy, end up creating some barriers to the commercial penetration and investments. The Italian Embassy and especially the Sportello Unico for the firms operate attentively to monitor, facilitating thus the dialogue with the entrepreneurs and more transparent decisions of this administration. Thanks to the international support that has made possible the introduction of informatic control systems, the customs administration resulted more efficient and transparent being able to achieve always better services. In 2007, the customs inputs were equal to 765 million Euro registering an increase of 16% compared to the previous year. 3.3) Violations of the norms on the protection of the intellectual propriety rights

Page 23 of 71

The general discipline regarding the topic of protection of the authors rights is contained in two distinct provisions, one on the industrial property and the other on the authors rights. In Albania, to be able to register patents, brands, industrial designs and denominations of origin, it has to be presented a proper request to the Albanian General Directory brands and patents . The law provides for the pate nt a duration of 2 decades; the extension of the deadline for the industrial designs and for the registered brands it is respectively five and ten years. On the slope of the authors right , the law accords a protection at any form of individual creative activity. Such norm acknowledges a moral right as much as a moral of use. The law contains some norms that similarly to the Italian norm, regulate the conditions of the inventor that is in the meantime subordinate worker. The Republic of Albania is part o f the European Patent Organization (EPO) and member of WIPO (World Intellectual Patent Organization). However, the violations of brands and intellectual ownership are common. This administration acknowledges the international norm, doesnt have at disposa l the proper means of verification and control and looks for the Italian and international assistance to reach the adequate standards in this material.

3.4)

Problematic relative to the foreign investments in the country

In Albania there is a strong growth of the inner competition. New groups of entrepreneurs in some cases able to control the Albanian media, require with major insisting a government protection for their investments particularly by the external competition. In other terms, in the frame of the ongoing privatisation, the new Albanian businesspersons require to be inserted. They are united and tend at contrasting the big foreign groups. Therefore, emerge signals of renovated dynamism of the local entrepreneurship, which apart from the sectors of building trade, commerce, and finance, of the private sanitary assistance it shows itself more and more aggressive even in strategic sectors such as electrical power, insurance, warehousing, and commercialisation of the hydrocarbon, tele communications. Thus, the Italian most expert entrepreneurship that appears on this market has among various possibilities, the alliance and the joint venture with the local entrepreneurs (if accurately selected) to ensure better development prospective for investment. Lately it seems to be reactivated a major interest in investing in Albania for the low cost of the labour force in comparison to the countries of the Balkan area, such as Romania and Bulgaria. Some Italian entrepreneurial groups are moving from Romania set up in Albania. Regarding the main problems signalled by the Italian societies and by the entrepreneurial associations operating in Albanian there are : - Delayed reimburse VAT. Many Italian business firms in Albania are essentially exp orting. They put the VAT on the internal purchase and export in exemption. Thus they accumulate some credits, often very considerable in comparison to the Treasury that does not respect the deadlines foreseen by the norm in force, for the reimbursement. - Customs problems.
Page 24 of 71

The operators complain the length of the time necessary for the development of the customs practices. The Albanian government has launched (through one group of inter -ministerial work) a process of administrative simplification and eli mination of non-physical barriers aiming at facilitating the free movement of people and goods. For this problematic the remedy comes from M.O.U. through the Italian Ministry of Economic development and the Albanian Ministry of Finance relative to the ac tivity of the customs to favour the development of the commercial relations regarding the project of Corridor VIII signed on 5 March 2007. In February 2008, the mixed Italian Albanian Commission for the international road and passengers transport, has increased the reciprocal contingent of the bilateral authorization to adjust them to the progressive increase of the quantity of the goods exchange. Regarding the investments requiring purchase of territory, it is noticed that still today, there exists in Albania a relevant insecurity on the territory ownership and on the certificate attributed to them, nevertheless the approval by the Parliament, Law n. 9235, on 29.07.2004 for the per la restitution and compensation of the propriety .

4) THE PROMOTIONAL POLICY AND OPERATIVE PROPOSALS OD JOINT INTERVENTION

In the country, there is a high demand of technology according the western standards . At the moment, there is a process to bring the technological aspect of the infrastructure at a higher level. Such a process could generate interesting opportunities for the Italian entrepreneurships in the energetic sector, touristy one, alimentary, extraction of resources from subsoil and building trade. The Italian Embassy in Albania, the sportello Unico for the entrepreneurships and the Foreign Trade Institute in Tirana, they are giving life to a series of promotional initiatives to bring at a more important level the cooperation between the two countries, not only at an institutional level but also the one between Italian and Albanian entrepreneurs. The foreseen initiatives in the sectors considered more dynamic for the System Italy in Albania, have been individuated as follows: 4.1) ENERGY

The promotional action is perceived in three phases consisting in: 1. Market research including a census of the producers / distributors of electrical material of high voltage such as cables, electrical squares, trellis, etc. in loco . The creation of a link inside the webpage of the ICE Tirana concluding thus the first phase with e presentation of the research in Torino and/or Milano for the North Italy and in Bari for the South Italy. 2. Analysis and projecting of an available informative website where it will be published not only the study but it will be a website with interactive pages where the Italian entrepreneur can be
Page 25 of 71

directly registered expressing its interest as a possible joint venture with Albanian entrepreneurs. 3. Organization of bilateral meetings between the interested firms of both countries.

4. 2)

TOURISM PROJECT

There have been held different seminars and others are planned in different Albanian localities, in cooperation with the Albanian Union of the touristy operators and other local organizations for the management and marketing referring the tourism sector. The workshops, lead by docents and Italian experts, focus on the relative topics on territorial touristy marketing, in teaching the techniques of management and create p artnership between Italian and Albanian firms in the sector . 4. 3) FOOD

To enlarge the knowledge on the Made in Italy products to intensify the commercial rela tions between the two countries , consolidating and increasing the commercial exchanges between the Italian entrepreneurship already present in the market and the moti vation of the introduction of new operators. On this purpose, it is proposed the organization of tasting by the large distribution of typical Italian products such as cold cuts, pasta, peeled tomatoes, and wine . At the moment there is a spread of su permarkets that prepare in their environment a host angle of the high quality products, where the Italian products are even more present. The tasting and a specific exhibition will be followed by bilateral meetings aiming at the large distribution and particularly the restore to reach a larger distribution of the typical alimentary products of diverse Italian regions. Therefore, every year (three consecutive years) there will be organized the weeks of exhibition and tasting of typical alimentary product s by Italian regions, that will be preceded by a publicity campaign, more articulated in comparison to the previous years.

4. 4)

STUDY AND MARKET ANALYSIS ON THE MINERAL SECTOR , ADDRESS: CAVE

1 Year Although having successfully ended a study valid on the building business sector and machines for building, there is a lack of detailed information on building materials and various components related to them such as the subsoil resources. The Public Board and Ministries, are not able to supply u pdated data and indications, therefore the Italian firms, that are really intentioned to invest in the cave face a restraining situation for lack of serious studies and realistic maps. The aim of the study is not limited only at the market analysis, bu t it aims as well at the census of the firms, Italian ones included, that for the moment operate on the sector interviewing them on the encountered difficulties.
Page 26 of 71

2 Year - The creation of a link inside the webpage of the ICE Tirana to conclude with a presentation of the research in Italy. 4. 5) THE STUDY IN THE FREE ZONES AND DOCKER STRUCTURES WITH REFLEXES ON THE LARGE DISTRIBUTION There will be promotional actions and study for the sector of the dock worker infrastructure and logistic platforms in function of the large distribution that in Albania, is registering a rapid development. The fulfilment of a study would aim at analysing the diverse prospective of the development of the connection in the dock worker area of Durres with that of Bari , through the creation f two analogue logistic platforms made to speed up the commerce between the two countries and the two Adriatic shores. This could develop new techniques of marketing and shorten the distributive channels with consequent reduction of costs and with an increase of sales. Moreover, the large distribution i n Albania is developing: imminent is the opening of some hypermarkets for the distribution of various general products, among which fresh alimentary products, clothes, electronic, sport, and domestic items. As development indicator in such sector, it is registered that an Italian group, the Conad, has already opened three commercial centres and it is opening other 5 in other cities of the country, such as a holding with Albanian c apital is moving into the same direction, with the advantage of a consistent financing by the BERS. 4. 6) THE TECNOLOGY OF THE INFORMATION AND OF THE COMMUNICATION In spite of the presence of the representative of the IBM, HP, Acer, etc, and of two societies of projection and programming of software, for firm managing and not only, the market nowadays is invaded by the obsolete technology, used and no brand name. Even though having professional graduated by the Electronic Engineering Faculty and Info rmatics in Tiarana (Albania) that abroad these are not consulted for the projection and the actualisation of the vanguard technologies. Thus, the necessary is to be noticed : 1- one market research to individualise the problematic of the sector and the possibility of assistance and commerce of equipment in the ICT sector for the Italian entrepreneurship ; 2 - the intervention of the Institute with a collective ICE of Italian firms of the sector by a local Fair International Trade Fair organized by Klik Eksppo Group, one of the most important fair companies in the country, accompanied by a seminar of technical presentation . The sector of informatics is still under the European level and a division that could grow and give many satisfactions to investors interested to develop it.

Page 27 of 71

Chapt. V)

THE INDUSTRIAL PARC OF SHKODER

The actual structure of the industrial park of Shkoder represents that remains from an industrial settlement very articulated, set up by the communist regime in the period of its b lossoming, i.e. from 1945 to 1990. The aim of this chapter is to present the current situation under the urban point of view, or : its la collocation in town, the spaces, and the infrastructure. In this area there were present different types of producti ve activities, among these there can be cited the most important and precisely : 1. The industry of manufacture of the tobacco and of the production of cigarettes 2. The industry of manufacture of wood until to the production of furniture 3. The alimentary industry 4. the industry for the production on cables 5. The agro industry 6. The clothing and manufacture 7. The manufacture of the leather 8. The mechanical manufacture 9. The manufacture of the paper 10. Other minor activities By the analysis of the recent story, it can be affir med that in this area there are multiple aspects, of string socio cultural value, that allow to put the basis for the initiatives in diverse economic fundamental divisions such as : - the commerce - the industry - the agriculture - the tourism - the services it is on the basis of this competition that the arguments connected to the topic of belief that when it will be proposed it will have good probabilities of carrying out, have been broadened. In the tables and graphical representations that follow, there are r epresented the areas, the buildings, the current utilisations, the indications of propriety aiming at having a first systemic approach with this examination site under its point of view, even coming from different experiences, it intends to get the positive value necessary for one their recuperation. In addition, it is properly this basic concept on which basis the consul ting has worked after having verified the real possibilities of feasibility, accepting the proposals that can spring by what is said in the present report.

Page 28 of 71

In the following table there are some activities originally developed in the site and confronted to the actual situation. Sector original activity 1) 2) 3) 4) 5) 6) Tobacco manufacture Production of cigarettes Manufacture of wood and furniture Clothing Mechanics Artistic manufacture Actual Situation and Activity Shoe factory in part In disuse Part production of furniture Privatized on behalf of private persons Privatized - Clothing Varnishing outlines in aluminium Serramenti Clothing A part for rent, state - owned A part used for: Production clothing; Manufacture wood, Manufacture artistic ceramics . Manufacture of threads for electrical lines conn ected to a Turkish firm Privatized - Production of the flower Manufacture of the wood, production of furniture Partially used, the remaining in disuse In disuse Partly used by small manufacture firms Partly used with abusive inhabitations Partly disused manufacture profile of aluminium In disuse Partially In disuse Varnishing of outline in aluminium and systems for serramenti Services Transports Partially used

7)

Electro-mechanic Implant

8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20)

Fabric of production of electric cables Mill and production of bread Collecting and manufacture of milk Food Manufacture leather Fabric wood and paper Manufacture of bread Cement factory Bus Machines for agriculture Services Transport Building trade

Page 29 of 71

To represent the city in its all, it is reported a general vision of this t erritory with some indications of productive activity

The industrial area is in the eastern part of the town. In this area have always been situated the different industrial firms of small and medium dimensions especially those : Of the manufacture of the metals, Of tobacco, Of wood, Of clothing, Of ceramic, Of agro-industry, From the general plant of Shkoder it can be e xtrapolated the industrial area that has been examined. Details of this area and of the building can be noticed better in the att achments.

The infrastructure and road netw ork in the industrial area of Shkoder - 1
Page 30 of 71

CITY CENTRE

Page 31 of 71

The infrastructure and road network in the industrial area of Shkoder - 2

Page 32 of 71

Division of the areas of the City Regulatory Plan

Elaborated taken from the regulatory plan of the city. The industrial area of Shkoder is developed in a complex of about 157 ha. The reported colouring represents the subdivision of the diverse areas, precisely: - Those of public relevance, - Those private, - Those informal - And finally the residential ones

Page 33 of 71

The entrepreneurship activities present today in the industrial area of Shkoder In the actual industrial area, taking into consideration the inheritance of the firms previously there, there are concentrated among small and medium entrepreneurships that develop diverse activities. Among the various typologies of firms, there exist also forms of joint venture in the sector of textiles, footwear, food, manufacture of wood . The majority of the furniture (soil and fabricated) belonging to the ex state owned firms existing before 1990 have been privatised. The remaining parts of public propriety are : A large part of the big firm of the manufacture of electrical cables The fabric for the production of cigarettes . Regarding the other public structures which were privatised, there have been carried out many divisions and breaking downs, including the change of destination of respective use to the preceding activity. The general situation indicative and not exhaustive, of the a ctivities and firms now present in Shkoder, is represented in the following table : Nr. The firms according to activities The number of firms 10 2 7 8 7 1 1 1 1 9 5 52

1 Clothing 2 3 4 5 6 7 8 9 Footwear Manufacture of wood Building trade Alimentary production Cigarettes production Manufacture outline aluminium Production of electric cables Transport

10 Commerce 11 Services Total:

From these 44 are small medium firms ( classified according to the European definition ) and those in function of the origin or composition of their capital are subdivided in this form .

Type of society Foreign Join Venture Local Total

Nr. 5 9 30 44
Page 34 of 71

Representations of the industrial areas (parcels) of Shkoder according to the typology of the propriety

Page 35 of 71

The subdivision of the Industrial Park according to the typolo gy of the propriety Public surface Other (Hectares) (Hectares) 6,7 6,7 6,2 4,3 10 9 5,2 2,7 3,8 6,3 10 6 6,2 5,8 11,7 14,5 6,4 14,4 10,9 10,1

Index of the parcelle I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII XIX XIX

Typology of the propriety Public Private Private Public Public Public Private Public- Private Public - Private Illegal buildings Private Public- Private Illegal buildings Public- Private Illegal buildings Private Illegal buildings - Private Residential Publics + Private Public + Private Road + Large square

Surface (Hectares) 6,7 6,7 6,2 4,3 10 9,0 5,2 2,7 3,8 6,3 10 6 6,2 5,8 11,7 14,5 6,4 14,4 10,9 10,1

Total

157

30

127

Chapt. VI)

ASPECTS OF THE ACTUAL SITUATION

Page 36 of 71

VIa) Examples of buildings of the industrial area of Shkoder to be examined for a possible recuperation

Some situations of analysis for the recuperation

On the side there are shown some buildings practically abandoned, once used in the agro alimentary sector for the production of oil and wine.

They are constructions in masonry that could be a basis for a reuse even in the originally sector, the agro alimentary one.

The availability of volume is interesting and after an opportune study of requalification, could be evaluated and show employment even in other spheres such as stores and de posits.

Their placing in the urban level allows even to hypothesize many solutions, including those of manufacture laboratories and hydraulic maintenance, mechanic, electrical etc.

Page 37 of 71

The photo by the side represents parts of the building belonging to the so-called fabric for the manufacture of leather.

It is a structure inserted in the urban contest, now private property.

The recuperation for the original use becomes very committing, even not advised.

Considering the nearness with the inhabitations and given the age and the criticity of the walls, the most interestingpart of this area regards the territory and the use that could be once free from the constructions in ruins.

Page 38 of 71

The photos on the side repres ent some glimpses of the buildings, part of the manufacture of tobacco and cigarettes.

The buildings are still in a state of possible reuse, once the employ potential is individualised. Given their consistence, they could have several uses, and the simulations that follow give the idea of possible solutions.

Page 39 of 71

Unfortunately, today they are neglected and if there is no intervention, theyare destined to degrade leaving a few possibilities for a convenient recuperation.

Page 40 of 71

Another example of a recuperable building has been given by this building with 3 floors : Ground floor, I and II floor In general, its structure its good . After an adequate intervention of restore, in function of what you want to insert, it could be usable in short terms.

The ground floor is occupied by a firm that produces furniture.

The propriety of this building is private

Page 41 of 71

The photos by the side represent the extreme point towards North of the industrial area of Shkoder. Shkoder . In the past, in this side was situated the Factory of manufacture of wood and paper.

In the remains of the structures there have been realized some illegal houses.

The road brings the main road towards North.

In the background, you can notice the complex of the manufacture of tobacco.

Page 42 of 71

The photos on the side retake the railway line in anaction that connects Albania with Montenegro.

The network, although it presents signs of maintenance necessities, it is functional.

This kind of infrastructure, an adjacent space,it is very interesting because it could allow the launching of a series of activities related to the inter -modal transport and the logistics.

Page 43 of 71

The area with interesting dimensions, along this railway axes could be a use of logistics kind.

The idea could be the one of realising a platform of goods exchange through railway and road vehicles. ( Example : Camion and TIR)

Page 44 of 71

Examples of sheds to reuse, they are state owned

External of the offices of the ex manufacture of tobacco and cigarettes.

It has the structure of a kind of consistence, to be noticed at the attachment for the proposal of reusing it.

Page 45 of 71

The reuse of the presented constructions in the previous photos or the structures that present a discreet consistency, allows on one hand the recuperation of the buildings that at the moment weigh negatively upon the area and on the other hand, the placing in the market of important infrastructure for the economic and productiv e activities. How it is noticed in the photographic examples these abandoned buildings become a receptacle of weeds and stray animals and in the future there will be security problems because inevitably they will decline. The recuperation becomes thus a n obligatory way because it responds to diverse strategic requirements of the community and it allows to : 1. put in the market important buildings with strategic value 2. respond to the requests of industrial space for the development of activity 3. reclaim an important part of the citizen territory 4. put into motion the machine of investments with consequent economic and occupational fall 5. motivate the development in loco of the productive activities .

Page 46 of 71

VIb) Examples of initiatives of reuse

The process of privatisation of the ex -industrial areas, thanks to the courage of some entrepreneurs, has allowed the reuse of some of these structures as follows. For some of these are sent to the attachments where it is reported the photographic confront of the recovery.

The photos on the side report the external of the buildings of the Former Tobacco Factory now Green Shoes shoe fabric. The building, propriety of the state has been given in conduction to the Italian firm that runs it.

The tenant has undertaken the work of reconstruction based on a contract of location of a long period. In the attachment, it is presented a schedule that illustrates the initiative of recuperation. The restructuring work articulated on many planes are in the ultimate phase and it is foreseen that with a regime there could be employed more than 400 subordinates.

In the photo on the side is brought the example of another initiative of recuperation. The firm Dafinor Shpk that operates in the sector of the wood work. In the past, in this buiding group it was worked with milk. As it is a buiding group that has been restructured according to the modern productive needs, how can it be detected by the schedule reported in the attachments.

Page 47 of 71

Another example of interesting recuperation is presented by the fi rm Progress Metal G A firm produces systems for aluminium serramenti. In the attached schedule it is reported a photographic confront that illustrates the line of reconstruction.

In the past in this building group was set up the mechanic establishme nt for the production of agricultural machines UMB Uzina Mekanike Bujqesore.

The establishment of the production of electric cables. Today ALCABLE Sh.p.k.

Page 48 of 71

The photos on the side report the fabcric of shoes obtained with an operation of ind ustrial recuperation of the ex fabbrica of manufacture of wood, furniture, chairs, tables, etc.

Even for this initiative, it is to be looked at the detailed schedule reported in the attachment.

Another example of the reuse of is represented b y the fabcric of production of Venetian masks, obtained from a building where in the past the broad for the city of Shkoder was produced. The production realised in this conveniently stable reconstruction which is of a very high level and occupies more than 50 subordinates.

Of these initiatives it is to be seen the attachment where there are exposed in a photographic report the details of the operations of recuperation. In the examinated territory there are present other fabrics as well,of the m anufacture type that work the wood for the furniture or for the building trade complets: doors , windows, etc., iron carpentry, electrical and autoclave implanting, etc.

Page 49 of 71

VII) THE NEW INDUSTRIAL PARKS IN ALBANIA

In the present chapter it is exposed the theme of the new initiatives of the Albanian government for the industrial development of the country to report the correlation with the use of the area of the ex Industrial zone in Shkoder.

It has been stabilised by the Albanian government the definit ive choice on the construction project of six industrial parks aimed to the development of the large manufacture industry and of other economic activities. The decision has been taken after a deep study brought forward by the foreign consultants. There have been discovered 6 coastal areas and industrial parks or economic industrial areas near 1) Shengjin, 2) Koplik, 3) Shkoder, 4) Durres, 5) Vlora, and in the end 6) Elbasan.

The approval of the prediction for their construction opens the way to a high er level of investment and of the employment of new labour force, which evolution depends on the strategy that will be followed by the large commercial companies. The societies that will participate at an open international tender, could obtain a govern ment concession of 35 years to build a real proper industrial district along the Albanian coast. Such provision will allow the entry of foreign capital and private companies to realise an industrial development of the country that required hundreds of millions of lek, only partly put at disposal by the Albanian government. Therefore, regarding the construction licence of these areas, the economists qualify such actions as important provisions but with a critical intrinsic, until it is reached a solut ion on the question of the restitution of the proprieties and on the relative cadaster, the construction of parks will be difficult. The Ministry of Economics will lead the process of attribution of the status of development of the 6 economic areas though a government concession of 35 years, according to the rules of the open contract competitions in contest as disciplined by the law nr. 9663 of 18.12.2006. n r. Inside the areas and the industrial parks, the local authorities, in cooperation with the central one, will preliminarily guarantee all the basic structures, as energy, the road infrastructure, water and sewerage services, telecommunications, in such a manner to make the industrial areas real and proper "oasis" for the private investment, national or foreign ones. The economic areas will develop at the senses of a legal framework that precise all the rules to discipline the productive activities and the free areas. The main objectives that the industrial areas should reach are related to the pro cedures of administration, of surveillance and control of the economic areas.
Page 50 of 71

The projects will be approved by the regional administrative authorities (KRRT) and from the Ministry of Economy that will direct the relative proposal submitted for approval of the Council of Ministers. By the contests of participation as developer for the creation of the free economic areas, no foreigners are excluded. They have to present all the documents according to the legislation of the country where the person is resi dent. The Minister of Economy in the role of the development control observer of the economic areas, it has to select the developers through the procedures defined by deadline terms and proceeding of the contest. The main criteria is related to the relevance, economic priority, value of investment, introduction of the developed industry, number of employments, speed of circulation of goods and capitals and other specific indexes. Every proposal will be analysed by a Commission for the evaluatio n of the offers, approved by the Ministry of Economy, together with the representatives of the Ministry of Finance and Economy. The developer assigned with the construction licence, will follow the procedures for the approval of the project for the construction following the legislation in power.

The modalities of participation and the regulations will be defined following the necessary documentation and constituted in line with the utmost from the following documents. All the juridical persons Albanians of foreigners, that want to obtain a licence of business developers, should present the following documents : 1. Certificate of the foundation of the society ; 2. Sentence of registration as juridical person ; 3. Statute of the society; 4. Fiscal code 5. Copy of the activity licence ; 6. Balance of the last three revision years, by the accounting expert 7. Technical Economic profile of the society; society ; 8. Documents of the propriety or rent for the territory or the furniture good of t he economic area; 9. business-plan of the activities of the society that is candidate for the development ; 10. Complete project of construction for the inner infrastructure and connection modality with external infrastructure; 11. Sources of financing of the project; 12. Authentication that the society is not in procedures of liquidation; 13. For the main directors, even the court records

The Ministry of Economy, Commerce and Energy has been defined as contracting authority for the building the industrial parks, while they will be administered on basis of the regulation of the single private societies.
Page 51 of 71

In the area of Shkoder, with a total surface of about 140 hectares, it is foreseen the building of a general industrial park, with different economic activities, with different alimentary industrial productions, such as commercial services and import-export. The project of the industrial park in K oplik, with a surface of 61 hectares , with be an industrial pack with a general character, with an investme nt of 17 million euro, while it is expecte that there will be employed until 19.000 persons. For the third industrial park in Shengjin, of 4 hectares, it is foreseen the occurring of an activity for the agricultural manufacture with an investment of 1 7 million euro and the employment of 3 .000 3.000 persons.

The government of Tirana has given way to the creation of the industrial park in the area of Koplik promoted by the Association of Italian entrepreneurships in Alban ia (Aiioa). The objective of the projec t is to re-launch strategically the development of the whole region. The operation foresees the handover in rent of a surface of 70 hectare to a pool of Italian investors guided by the Volalba group, through the payment of the symbolic sum of one euro. Volalba operates already in Albania with a fabric localized in Lushnje, on a surface of 120 000 m2 that produces 650 tons of daily bricks with holes , on two different production lines. Koplik, at about 100 kilometres by the port of Durres and from the c apital Tirana, is considered a particularly advantageous localisation for the connections with Montenegro, Macedonia, Serbia and Kossovo. It disposes of important deposit of clay and coalmine, and marble. There are also mines and an implant of refined copper, actually not active. In the town there operates also the only University in the Northern Albania, with more than 6 thousand students and 500 graduates each year. The master plan of the new industrial Park foresees three entries on the motorway E762 direction Montenegro, an area dedicated to the logistic services with customs office attached an area of offices and a reserved area to the productive activities with lots of different dimensions. It is also foreseen the realisation of a expositive centre, a hotel and restaurant area and of catering, green spots and dedicated to the social services . There will be implants of water capitation and treatment of the effluent waters and of an electrical substation.

Page 52 of 71

Chap. VIII)

THE CRITICAL POINTS AND THE POTENTIALS OF THE INDUSTRIAL AREA OF SHKODER

a)

The weak points

As reported in the historical analysis in the history, Albania is suffering now an isolation which lasted about 60 years by the productive contests of the rest of the world . It is a discrepancy that can be found : o In the productive systems , o In the organisation of the country system , o In the judiciary system o In the scholastic system o In the use of the local resources o In the mentality of people o In the approach to thematic for the developm ent of cooperation o In the way of offering vs. the foreign investors . The above expressed referring represent some gaps of Albania compared to the more advanced countries. Some of these, though, have been exceeded in the mentioned area. To give more details, in the area of the present project, some elements of criticism are represented by: Infrastructural lacks The infrastructural lacks represent one of the major obstacles to the development of the country. In the periphery and in the mountain areas. T he situation of the roads is very critical, some villages are even nowadays reachable exclusively by off roads. The urban and province roads are under the standard European conditions and still used by horses, cars and pedestrians. One must take into consideration the scarce ability by the locals and the signal lack horizontal and vertical in the periphery areas. The road that connection Shkoder with Tirana has been completed recently. Many villages situated in the mountains along the line pf border w ith Montenegro are excluded by the road network and by the railway one. The reconstruction of the roads is indicated by the state like absolute priority. The situation of the railways is very critical. The fixed network although existing suffers a lac k of maintenance and update. It is activated the railways line that connects with Montenegro on which there transit one or two trains per day. The few railways means, vans and carts, are presented in a degraded state and very little useable.
Page 53 of 71

Practically the whole railway system should be reconsidered and brought to European standards. This initiative could be object of a project ad hoc. The industrial area of Shkoder, its a historical place for the productive activities, it is well served under the profile of road network. There exists a back area of the railway line that could make a good basis foe the connected activities with the trans border railways transport to Montenegro. The new regulating plan of the city foresees the strengthening of the inter nal road network of the town and of the industrial area. The above mentioned initiative would allow on one hand the launch of a productive activity in the railways field, of reparation and reconstruction o charts and carries, as well as to give a country a system of a logistic platrform for the exchange of road goods road railway and vice versa.

Energetic Situation The region of Shkoder occupies the first place for the energetic electric production in Albania. This is proven by the contracts o Vau i Dejes (always net. Or 500 millions die servonun dommert. v

The society that deals with distribution of the electrical power is a private firm called SESA. He present centrals do no have the accumulative capacity, the distribution networks are in very bad conditions, from where the interruptions of the power are a daily phenomenon and last 7 or 8 hours. The necessary condition to develop any kind of economic activity is to possess a generator. The system of collection of consumes is inefficient and to tally non-functional (it is evaluated that only 20% of the population tat owns a regular contract pays regularly the electric power ), the phenomenon of the tied knots is a diffuse practice. Every citizen pays a fix quote for consuming of the electrical p ower (2.400 Lek monthly for private use), this surely does not induce to approaches of saving energy. Barely any implant is provided with security norms.

In the country there is no Liquid Gas distributing system, therefore the electric power is used for warming, cooking, and warming water. The use of methane or another gas would allow a series of savings and benefits such as : - A real saving for each user, with 20% in comparison to the actual form of electric alimentation - The possibility to liberate el ectrical energy for other uses of industrial type
Page 54 of 71

- The conditioning of continuous alimentation without black out - The diversification of the energy consume. In the district of Shkoder it is produced 60% of the electricl energy of the whole country and the structures of the implants are very deficient. You feel the necessity of qualified structures of the induce for the activities of electrical and mechanical type for reparations and maintenance of the implants.

b) The general potentiality The potentiality for an industrial development will be researched in the following factors present now in the territory of Shkoder : 1. The availability of labour force at lower costs in comparison to average European ones 2. The availability of young people with good cultural basis, necessary for a technical formation aiming to prepare new qualified resources for new productive units 3. The availability in areas and buildings rehabilitated by dismissed industrial sites. 4. The availability if required, of new areas in new industr ial parcelling out 5. The nearness of the industrial areas with the centre of the city and with the services that it can offer 6. The availability of people with the know how necessary to launch new productive initiatives similar to those already existing bef ore 1997 These elements alone cannot constitute the conditions for an industrial development of the area. These in fact, are necessary to give a push or motivation to crate new productive with high competitive characteristics. The lines of economic deve lopment will be researched thus in the following procession : 1. Manufacture activities in the sector faon (example the clothing, foot wear ) already present with improvement points for the production of own products 2. Manufacture activities in the metal mechani c sector nowadays rarely present, but needed in either supporting the manufacture entrepreneurships, or those producing goods and services (example: firms of mechanic construction, electro mechanic firms for maintenance and repair, in reparation of the ind ustrial implant, the electrical centrals, mineral an extracting industries etc. included .) 3. Development of basic or primary industry where there are resources to reduce the dependence of Albania from other countries (importation) 4. Development of the producti ve filial (for example in the agro alimentary sector ) 5. Development of the national and international tourism 6. Development of services (public and private transport) 7. Development of commercial services 8. The activation of structures for the logistics such as a n inter port railways road.
Page 55 of 71

9. Development of local public infrastructure ( gasification, energy) 10. Development of the translational infrastructure ( corridor VIII, port, methane pipeline, regasification, ) 11. Development of the informative applications 12. Development of new structures of Information Technology (ICT) and of

Telecommunication c) A local initiative It is constructed a local association called The Union for the Development of the North Albania (USNA) which is already an institutional reality acknow ledged also by the Albanian state. The organisation that is hired to be a promoter of the development in North Albania has had the status from the last approval of the Albanian court according to the legislation in power. At the official proclamation of the union it made also use of the meeting occurred on 6 September 2008 in the ambient of BIA in Shkoder, where there were present among other important representatives of the constituency of the Consulate of Italy and the Delegate Administrator of the BIA in Albania, the Italian consul in SHkoder etc. In the hosting role, the la BIA of Shkoder, made known the notice of the legalisation of the Union, and informed the present people on the formation of the operative commissions for the problematic of the economy, social questions, tourism and ecology, infrastructure public services, political reports with thirds, international relations. The idea for the foundation of the Union that has found a comprehension and support from the BIA and the Italian Consulate in Shkoder, has found a natural and stimulating course . This is, for the simple fact that Italy is the largest investor in Albania, followed by Greece. For the moment, it is noted a positive area in the development of the Northern region, but also i n the support to business. The investments of the government have multiplied in the last time bringing notable infrastructural improvements . Especially, in spite of the difficult energetic situation, because of lack of rain, the large business have had electricity power 24 ore in 24. One of the aims of the new generation is to support the initiatives in Shkoder, where today there are presumptions to invest, the conditions have notably improved, making it a place that attracts many serious firms.

Page 56 of 71

d) The general potential of the ex -industrial-area of Shkoder From the exam of the initiatives like the one for the new industrial parks and the birth of the new entrepreneurship association of north Albania, emerges the strong potential of the idea t o recuperate the ex structures, no is disuse of the industrial zone of Shkoder. The opportunities offered by the recuperation of this area of it building consist of : 1. etc. 2. Nearness to the city and its services 3. Availability and mastering in loco 4. Buildings of recoverable industrial type with costs contained in comparison to the construction ex novo 5. The presence of the voluntary local entrepreneurs, to engage themselves as soon as possible. These factors co constitute a small treasure that allows to laun ch quickly the productive initiative without having to do with an industrial division into lots that will bring longer available hours and costs regarding constitute a small treasure that allows to launch quickly the productive initiative without having to do with an industrial division into lots that will bring longer available hours and costs regarding the realisation of the infrastructure. For sure the above mentioned industrial parks will be structures of referring for the development for the development of the country, but today you can quickly realize work environment how they are later represented in the graphic proposal that can give immediate answers at comptetitive costs and at compettive for interested investors and invest in loco. It is often reminded how in this important and the compaction how often the economic factor can be elements of determined competition for the launch of other initiative, the time is though that in these of these not onto the elements An indicative non-exhausting name indicates some useful economic parameters to illustrate the convenience of this recuperation type. The cost of recuperation and use ( location) allows affirming where the present structures are compatible with the activities to develop. The grandeur or der of the costs is about the half of what is needed for the realisation of an initiative ex novo. Another aspect of interest is given by the secondary firms that can be created to offer their technical service to the firms in process such as mineral and extractive process. In the area surrounding Shkoder, different types of natural resources such as mineral ones are present (for example the copper, the silicon, the dolomite, the iolite, the bauxite and primary material for the production of cement and of lime. There are also present cables for marble, decorative stones, inert material with firm ceramic products, the bricks and the tiles become the offer basic materials for the construction sector and construction in general.
Page 57 of 71

The architectonic attached proposals taken into consideration for the localisation of the area, included in the urban issue, the possibility of insertion of activities of such services as industrial tertiary including: Sheds for the production (sectors: metal mechanic, alimentary, electrical, etc.) Buildings for the manufacture type activities Offices in general, and for the commercial activities i mport export Professional studies, Banks, Insurance, Different agencies, like the Customs , Sanitary services, Centres of formation Laboratories for the certification of products or environments Centres of assistance and consultancy for the firms Call centre Etc. There are some necessary economic parameters for the development of a business plan for the firms of the area in the objec t.
IMMOBILI 1 Terreno - Parcelle IV ,V,VI 2 Terreno - Parcella I Superfici mq 233.000 67.000 300.000 Acquisto (/mq) 129 62,3 Da valutare caso per caso 50 165 Ristrutturazione (/mq) Locazione Annua (/mq) 9,72 9,72

3 Edifici 4 Intervento di minima (*) 5 Intervento di massima (*)

14,64

Notes for the table The quotations of the purchase of the above reported terrain are obtained by the studio of the Regional Public Office for the compensation of property of the proprietary of Shkoder. They are provisional prices waiting for confirmation by the Government. Such evaluations take notice of the area of a subdivision of the territory of the city of Shkoder from n.3 zone to n. 5 zone. (*) The interventions of restructure are meant without the warming and conditioni ng implants. The above reported quotations have an indicative value and may constitute on one hand a basis for an economic convenience calculation and on the other hand the starting point for a negotiation with the property. The factors in play are tw o: I. The activities aiming at development . II. The necessary modifications at the existing structures for the launching of the new firm .
Page 58 of 71

Another factor of occult potentiality is represented by the actual international economic-financial situation. The present crisis that has touched the European and American financial markets, will not much influence the East European countries, such as the financial markets of the eastern countries especially Albania and in the Balkans where there was no exposition towards the mutual insolvent and moreover the level of their financial products, it does not arrive to the derivates or structured financial products. Therefore, these markets and consequently those of the Balkans will not significantly be influenced by the actual in ternational situation and meanwhile they could benefit some interest points for new possible investments. In fact, in these countries because of their continuous characteristic of following recuperation in comparison to other European countries, the growth trend is constant with the years and the stability following is a factor not to be negligible.

Page 59 of 71

Chapt. IX)

THE LAUNCHED RECUPERATION INITIATIVES

In this attachment by means of a photographic report there have been reported some cases of recuperation effectuated in the industrial site in the object. A) Examples of recovered industrial sites A.1) DAFINOR Sh.p.k. Fabrication of wooden products: Joint finger Panels, interne and external doors, Boiserie. Surfaces: Completive 13.000 sq/m out of which 5.000 sq/m covered Subordinates : n. 50 Quote export = circa 35% Strong point = Product quality. In the photographic report, there are reported phases of the site recuperation .

A. 2)

PROGRESS METAL G Sh.p.k. Production: Varnishing of prophylactics in al uminium and stockade, systems for the production of aluminium pressing Surfaces: Completive 7.500 sq/m: 5.200 covered. Subordinates: n.24 Quote export circa = 15 % Strong point = range of colours and high performance of the components for the pressing system. In the photographic report, there are reported phases of the site recuperation .

A.3)

Adelchi BertTon Sh.p.k. Production: Shoes and components Productive volume = 70/80.000 pair /month Surface: Completive 5.200 sq/m: 1.200. covered Subordinates: n.430 Quota export circa = 100 % (Italia) Strong point = Product quality In the photographic report, there are reported phases of the site recuperation .

Page 60 of 71

A.4)

G.r.e.n Shoe S.r.l. Production: Shoes and components Surface: Completive about 9.000 sq/m out of which covered on many floors : 5.000 sq/m Subordinates: n.300 Quota export circa = 100 % Strong point = Product quality In the photographic report, there are reported phases of the site recuperation .

B) Other initiatives presents on the si te

A.5) ENSAD Sh.p.k. Production: Pipes and plastic joins for the building sector Productive volume = 40 Ton./month Surface: Completive about 3.000 sq/m out of which covered: 500 sq/m. Subordinates: n. 6 Market = Albania Strong point = Product quality. Flexibility. A.6) BELLA CONFEX Production: Underwear ( child, woman, man) Productive volume: 10.000 items/month Surface: Completive about 1.500 sq/m out of which covered: 1.500 sq/m. Subordinates: n. 250 Quota export circa = 100 % Italia

A.7)

VLLEZRIT KOKAJ Production: Shoe sewing ( faon) Productive volume: 100.000 pair /month Surface: Completive about 900 sq/m out of which covered: 725 sq/m. Subordinates: n. 54 Quota export circa = 100 % ( Italia)

A.8)

FANI FOOD Agro alimentary Sector Production: Concentrate tomato sauce Productive volume: 100-120 Ton/year Surface: Completive about 2.500 sq/m out of which covered 1.950 sq/m. Subordinates: n. 20 Export Montenegro e Kosovo Strong point = Product quality

A.9)

ITAL SHQIPJA
Page 61 of 71

Wood work : Seats and handles Productive volume: 5.000 chairs e 100.000 handles/year Surface: Completive about 10.800 sq/m out of which covered: 800 sq/m Subordinates: n. 30 Export : Italia A.10) MADIISH Sh.p.k. Textile sector ( faon) Production: Sewing underwear and military clothing Surface: Completive about 2.340 sq/m out of which covered: 1.120 sq/m. Subordinates: n. 107 Export: Work account with Italy Strong point = Product quality RUBIN Sh.p.k. Textile sector ( faon) Production: Sewing underwear Volume: up to a 7.000.000 items /year Surface: Completive about 900 sq/m out of which covered: 900 sq/m. Subordinates: n. 20 100 Export: Work account with Italy Strong point = Product quality Moda TELI Sh.p.k. Textile sector ( faon) Production: Sewing trousers, skirts, dresses, jackets etc. Productive volume:150.000 items /year Surface: Completive about 4.100 sq/m out of which covered: 2.900 sq/m Subordinates: n. 90 Export: Work account with Italy Strong point = Product quality Meat Master Alimentary sector Work with meat Production: Salami, ham, other meat derivate. Productive volume: 2.000 Kg /day Surface: Completive about 7.000 sq/m out of which covered: 4.500 sq/m. Subordinates: n. 50 Market : Albania Strong point = Product quality

A.11)

A.12)

A.13)

Page 62 of 71

A.14)

Rozafa KAI Alimentary sector Work with meat Production: Salami, ham, other meat derivate. Productive volume: 300 Kg /day Surface: Completive about 5.300 sq/m out of which covered: 2.600 sq/m. Subordinates: n. 14 Market : Albania Strong point = Product quality AZIENDA TRASPORTO PUBBLICO Sector : SERVIZI Service of transport: 104.809 persons /month Surface: Completive about 600 sq/m out of which covered: 200 sq/m. Subordinates: n. 63 Market :area Shkoder Strong point = Product quality

A.15)

Chapt.X) PROPOSALS AND IDEAS FOR REUSE

Page 63 of 71

The architectonic proposals reported in the attachment take into consideration, for the localisation of the area, compressed in the urban textile, the possibility of inserting activiti es already in production, not of heavy type, of services that emerge from the industrial tertiary. It is true that if it doesnt exist a primary and secondary production it is difficult to require a tertiary, however in this sector nowadays are identifi ed all those activities that are not directly connected with a production of process or line and that can be externalized or date in out sourcing.. The typology of the buildings that are proposed, that come out by the structures that are available see photo) , representing large polyvalent containers where there can be allocated different types of solutions or requests.

Proposed solution for the recovery

1 example of recovery of the industrial shed

Situation before the recovery

Page 64 of 71

Proposed solution for the recovery

2 example of recovery of another industrial shed

Situation before the recovery

Proposed solution for the recovery

Example of recovery of building for tertiary use

Situation before the recovery

Page 65 of 71

In the following table are indicated the various utilisations of the locals to restructure TYPOLOGY OF RECOVERED LOCALS Large places with rent(width minimum from 10/12 m and length from 50100m) where a overhead travelling crane can be inserted PRODUCTIVE ACTIVITIES OR TERTIARY Of possible installation Metal mechanic sector in general (carpentry and montage) Mechanical work Alimentary sector Electro domestic montage Stamping of plastic materials Electrical implanting Small mechanical work Furniture work Packages Carpentry ( doors and windows) Manufacture activity ( mechanics, electricists, plumbers, etc.) Work a faon of high quality Banks, financial services Different agencies, example eh customs , Training centres Laboratories for the certification for the product or ambient Offices, in general and for the commercial import export activity Chemical work Sanitary services Diverse offices Professional studies (lawyers , engineer, Architect, etc.) Study of engineering Insurance Associations of category Medical ambulatory Financial society Public offices Centres of assistance and consulting at the firm Call centre Cooperation of services Etc.
Page 66 of 71

Large locals with width inferior to 10 m

Medium locals with sides about 10 m

Fractionated locals of large dimensions

Fractionated locals of large dimensions

The present chapter resends to the vision of the elaborated graphics reported in the attachments relatively to:

B) Proposals for restoration B1) Area Ex Tobacco Cigarettes firm In the attachments there are reported a range of constructive and architectonic solutions that sprout from the buildings of the ex fabric of cigarettes production, about the possible reuses in the industrial sector as well as in the tertiary and services. In the contest there are presented other types of solutions.

D) Examples of sites hardly restorable D.1) Tannery work with leather It is also reported a photographic report of a n examined site that refers to its actual condition and presents scarce values of use for productive use. Taking into consideration its collocation near a inhabiting unity, it could be taken into account for a residential restructuring.

Page 67 of 71

Chapt. XI)

CONCLUSIONS

He effectuated analysis in the present intervention evidences the macro facts, exposed in positive terms and interest ones for the possible development of the area in the object. A From what is noticed there are present today some positive valences under the furniture and infrastructural pr ofile to affect the reuse of the ex-industrial structures of the North District of the industrial area of Shkoder. Thanks to the evolution of commercial exchange there is moreover present some potential trans border collaboration between North East Italy and Albania dictated by interesting situation n evolution of demand and offer.

C The presence of new local organizations such as: Teuleda , Association of Entrepreneurs North Albania, the Commune , Chamber of Commerce, etc. , represent the referring points for the assistance and promotion of necessary initiatives for the development of cooperation for the industrial activities in the high sites. All the factors mentioned above can buil d a basis and platform to develop interesting entrepreneurship initiatives in loco. Regarding point A) the following parameters of qualification of the above mentioned potential can be offered. As indicated already in the previous chapters for reasons of practice, the attention of the consulting is concentrated on the areas of public property linside the industrial district of Shkoder. Nothing can deny that analogue reasoning can be made with private owners of other present areas in the site in object. A following of the evaluation of the initiatives already finished by local entrepreneurs, mentioned in the examples, and those that could potentially be launched, is thought to focus on the formula of the use of public goods at disposal through long -term contracts ( at least 25 years). Indicated contracts could have more incentive quotations in comparison to the values reported in the following tables that follow a part that can take into consideration the recovery work and adjustment for the locals, ad a lso to be a motivation for the use in comparison with the new one. Being the only parcels or public lots distributed in the form of leopard stains on the whole object area, the public initiative of launching on the market such building resources, could t hen be a motivation factor for the recuperation of the other buildings in hands of the private parties.

Page 68 of 71

A) THE POSITIVE VALENCES A1) The areas The examination of the sites, building structures and present infrastructures, facing the State and consequently the local organs that they can be trusted for a period, it allows the formalisation in synthesis that there can be present the surfaces in the industrial area of Shkoder reported in the table that follows. Moreover, there are as indicated the parameters of the cost for the use of the buildings and areas with long -term localisation contact. long-term

Compone nti de l sito

m q Utili

Q uotazione unitaria annua della locazione (/m q)

Potenziali ricavi annui ()

Superfici utili com presi piani superiori Aree e piazzali

109.796 238.400 T otale

14,64 9,72

1.607.413 2.317.248 3.924.661

As already mentioned before proceeding the solution that is prospected as simpler is the long term localisation with recovery work on expe nses of the tenant or the locator in forms and modality to concord. This formula would allow the public organ some important entries for the infrastructure public activities and would not burden financially the firm that expects to launch its own activit ies. The quotations indicated are only representative. They will be evaluated time after time also in comparison to the interventions of restructuring with what will be accomplished. A2) Human resources The human resources present on the territory can satisfy the requests coming from listed sectors but other joints as well.

SECTORS 1) 2) 3) 4) 5) 6) 7) Metal mechanic (in all its multiple repartitions) Wood (from the raw material to the finished product ) Agriculture medial plants Agro alimentary Building trade Shoes Clothing
Page 69 of 71

8) 9) 10)

Handicraft Logistics Tertiary

B)

THE POTENTIALS OF COOPERATION . They can be developed in two fronts B1) From Italy to Albania B2) the new initiatives for Albania connected to the necessary opportunities for the growth.

Regarding point B1), following the precedent studies and initiatives it cane be affirmed that there could be a short concretizing of a series of productive initiatives that regard the following sectors : 1) Production and commercialization of equipment of building trade . 2) Production and commercialization of innovative materials for the building trade . 3) Centre of fine mechanic work 4) Centre for the electro mechanic construction and maintenance 5) Centre for the stamping of plastic materials for the building sector 6) Centre for the stamping of plastic materials components of product ( example : electro domestic) 7) Centre for the packing of finished products utilizing components realised in loco 8) Logistic Platform Regarding point B2) inherent the new opportunities for A lbania they could be individualised in the following segments of market connected to the Venetian productive Districts aiming at: a) The development of the account work in the already known sectors : a1) a2) a3) a4) a5) Shoe shop Clothing shirt shop Clothing leather The work with plastic materials The building trade

b) The development of new productions to make autonomous from some types of imports on the Balkan market, they would be individualised in the following sectors: b1) Mechanic work b2) b3) b4) Electro mechanic work Stamping of plastic materials Production of new materials for the building trade

All these suggestions together connecting the various types of request and offer of trans border character constitute the basis to emerge new initiatives.

Page 70 of 71

By the contacts with different entrepreneurs Venetian and Albanian, for the development of the intervention in the object, there have emerged some ideas that could flow into some important initiatives to develop in the object area. The proposlas of the present study have an indicative value but they could surely constitute a basis to launch some proposals to the entrepreneurship world to invest in SHkoder. The string points regarding the following aspects : 1. Local availability 2. Labour availability qualified and non -qualified 3. Low costs of launching 4. Low costs of practice 5. Favourable fiscal conditions These elements could surely be the basis to build a business !!

Moreover, when the negotiation emerges, the recupe ration of the industrial area of Shkoder could bring the following results and benefits : 1. An immediate answer, in terms of time and infrastructure , to whom wants to invest with close deadlines. 2. The presence of the costs of investment in building very inferi or in comparison to the construction ex novo of other industrial parks in Italy 3. An interesting recovery of building trade to a degrade area 4. New Investments in loco with use of local resources 5. Occupational Increment connected to the new activities 6. Consolidation of the productive textile on an important city centre 7. Increment of the volume of local business for the investments and the launching of the new business 8. Re-launch of the City of Shkoder as productive economic centre

****************

Page 71 of 71

2008