DASH report for Albania: Reports of corruption in government procurement are common

2023-07-27 12:49:00, Aktualitet CNA

DASH report for Albania: Reports of corruption in government procurement are

The US Department of State has published its annual report on foreign investments in Albania for 2023.

In this report, some problems that concern the country today, such as corruption, are listed, which according to DASH there is still work to be done in this direction.

"Foreign investors describe Albania as a difficult place to do business. They cite ongoing corruption including the public sector, the judiciary, public procurement, unfair and distorted competition, the large informal economy, money laundering, frequent changes to fiscal legislation as well as poor contract enforcement as ongoing challenges to business in Albania," says the DASH report.

The numerous reports of foreign incinerators who often report cases of government corruption in Albania are also highlighted.

"Reports of corruption in government procurement are common. Investors often report cases of government corruption that delays and prevents investments in Albania. The continued use of public private partnership (PPP) contracts has reduced opportunities for competition, including from foreign investors, in infrastructure and other sectors. Weak cost-benefit analyzes and lack of technical expertise in designing and monitoring PPP contracts are persistent concerns. American investors are challenged by corruption and the perpetuation of informal business practices. Some US investors have faced contentious commercial disputes with public and private entities, including some that have gone to international arbitration. In 2019 and 2020, the investment attempt of an American company was allegedly hindered by several court decisions and questionable actions of interested parties involved in an investment dispute. The case ended in international arbitration.",it is said further.

The American report underlines the fact that Albania has great economic potential, a sound legal framework and has made progress in limiting corruption by digitizing public services for both citizens and businesses.

Despite the tangible progress, foreign investors perceive Albania as a difficult place to do business.

“As a developing country, Albania offers huge untapped potential for foreign investment in many sectors including energy, tourism, healthcare, agriculture, oil and mining, and information and communication technology (ICT). In the last decade, Albania has attracted greater levels of foreign direct investment," says the DASH report.

Investments are concentrated in extractive and processing industries, real estate, the energy sector, banking and insurance, and ICT. Switzerland, the Netherlands, Canada, Italy, Turkey, Austria, Bulgaria, and France are the largest sources of FDI. FDI shares from the United States account for a small but growing share, the report further states. The report assesses that Albania has great economic potential, a sound legal framework and has made progress in limiting petty corruption by digitizing public services for both citizens and businesses./CNA.al