Capacity Building for large Gas Infrastructure Developments


The Project aims to build technical and managerial capacities for the management of large gas infrastructure developments in the Albanian public sector with reference to the implementation of the Trans Adriatic Pipeline (TAP) and the development of an Albanian gas market.

Country/region Topic Period Budget
Albania
Urban infrastructure and utilities
01.06.2014 - 31.12.2019
CHF 8'500'000
Background Albania is confronted with important challenges in the energy sector, despite the progress made in recent years. Particularly the security of energy supply remains fragile due to lack of diversification. Electricity demand is exceeding domestic production. The supply gap is closed with pricey, imported fossil-based energy from the surrounding countries. Business development is severely constrained by recurring power outages, high electricity prices and administrative obstacles in power supply. The development of an Albanian gas market based on the implementation of TAP represents a valid option for energy supply diversification.
Objectives The project is expected to impact on three levels: 1) Albania's current domestic energy production is substantially relying on climate change vulnerable hydro power. Volatilty of its production is at the heart of the fragil energy supply. Gas, as a new energy source, will contribute to an increased energy security in the country. 2) The project will built gas-related technical and managerial capacities within the Albanian institutions that are necessary for the development of the Albanian gas sector. The built competences will lead to a more stable investment framework fostering economic development in Albania. 3) Domestic gas production gives Albania the opportunity to reduce its fossil-based imports from surrounding countries and in consequence reduce the green house gas emissions deriving from energy production.
Medium-term outcomes The initiation and the development of a domestic gas market in Albania - based on the realization of TAP.Improved governance of the infrastructure projects that will be realized in the context of the implementation of TAP and the establishment of the Albanian gas market.
Results

Expected results:   Work stream #1 'Sector Strategy and and policy': The Albanian intervenients are held to produce analysis papers on the energy markets and update the energy strategy of the country.Work stream #2 'Regulation and Permitting': The Albanian Government will develop the legal framework necessary for the implementation of TAP.Work stream #3 'Projet Development Interface': Procedures and instruments for the realization of downstream gas infrastructure projects are elaborated.Work stream #4 'Institutional building': Organization and Roles of domestic agencies and service providers, such as th Albanian Energy Regulator or the Transmission and Distribution operators are defined.Work stream #5 'Coordination and Implementation': The Albanian Government acquired the capacities to coordinate the inter-ministerial tasks related to TAP implementation and gas market development.Work stream #6 'Communication and representation: Procedural tools and templates are elaborated and applied.


Results from previous phases:   With its first intervention, the Project for Capacity Building for Large Gas Infrastructure Developments in Albania I, SECO significantly contributed to build the necessary framework conditions in Albania to meet the requirements for the realization of the Trans Adriatic Pipeline TAP and to lay the grounds for a future gas supply to the country. The project was considered an overall success with substantial achievements such as the timely signature and ratification of the Host Government Agreement HGA and the Inter-Governmental Agreement IGA, both indispensable conditions for the selection of TAP. In view of the gasification of Albania reports, opinions and analytical papers have been prepared showing economic development opportunities of an Albanian gas market out of the TAP project.


Directorate/federal office responsible SECO
Credit area Swiss cooperation with Eastern Europe
Project partners Contract partner
  • Ministry of Economy, Trade and Energy, Albania


Budget Current phase Swiss budget CHF   8'500'000 Swiss disbursement to date CHF   0 Budget inclusive project partner CHF   8'580'000
Project phases Phase 10 01.06.2014 - 31.12.2019   (Current phase)