During a seven-month-period the Swiss Government supported the Albanian Ministry of Energy and Industry in renegotiating the Host Government Agreement with the TAP consortium. On Wednesday, 21 December 2016 the Minister of Energy and Industry Damian Gjiknuri and the managing director of the Trans Adriatic Pipeline consortium Ian Bradshaw signed a renegotiated Host Government Agreement.
In contrast to the original agreement signed in April 2013 the renegotiated deal guarantees Albania the same terms and benefits as Greece.
The renegotiated agreement ensures a positive effect on the state budget, as Albania will benefit from increased income tax gains of approximately 60 million Euro during the next 25 years. The amendments will additionally double the investment in community development up to 14 million Euro. Furthermore, the funds for training in the gas sector will be raised from 350’000 to 700’000 Euro. Finally, based on a Memorandum of Understanding, the newly established Albgas company will be supported with capacity building in order to be part of providing operational and maintenance services for TAP during its operational duration of 25 years.
Minister Damian Gjiknuri thanked the Government of Switzerland for its steady support to Albania with the 6 million € grant for developing the gas sector and facilitating the implementation of the TAP agreement. He commended the work done by the Swiss project through the Roland Berger consultancy and the Albanian negotiation team for their extraordinary work.
In his speech Deputy Head of Swiss Mission Philipp Keller stated that “Albania is now officially in the international gas and energy grid.” The managing director of the TAP consortium Ian Bradshaw also stressed that the TAP project is becoming a reality in Albania. He added that roads and bridges are completed and the first kilometers of the steel pipes are already laid.
The renegotiated Host Government Agreement will get into force after its approval by the Albanian line ministries and its ratification by the Albanian Parliament which is expected to take place in spring 2017, prior to the parliamentary elections in June 2017.
