Strategic Projects & Investment Opportunities

in Tirana

June 2012

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Municipality of Tirana as an important

factor in the city economic development.

In order to improve dialogue Business - Institution –

Community, the policies are designed and

incentives are implemented for businesses, to

establish and maintain a favorable economic

climate, employment growth, protection of free

competition, the expansion of trade and policies tax

reductions.

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Business Climate

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Main reforms during 2011 – 2012

STARTING A BUSINESS: One Stop Shop was opened in 2012, through which it is possible: Reduction of documentation, simplified procedures, reduction of time for application and review, reduction of business costs.

DEALING WITH CONSTRUCTION PERMITS: With the new reform it will be possible to issues a building permit in 45 days as compared to around 350 days that it was before.

PAYING TAXES: Reduction & elimination of 65 taxes out of 85 that were in force before -

Online payments.

PROTECTING INVESTORS: By adopting the new structure is created Directorate of Foreign

Investment Promotion at the Municipality of Tirana, a structure which will assist foreign

investors and will attract foreign investments in the city

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Improving the business climate

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One-Stop-Shop-Center"provides services and advice to clients, quality and in real time, ensures a

more successful business versus a lower cost. With the establishment of this center becomes

possible even execute on-line procedures, which are another bonus for business.

This approach brings advantages for the business organizations and significantly improves the

quality of services by:

• Reducing the documentation;

• Simplifying the procedures;

• Reducing time for application / review;

• Reducing costs.

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One Stop Shop

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A number of fiscal incentives and exemptions for fees have been applied:

• The property tax for family category is reduced by 30%;

• For manufacturing business category decreased by 30%.

• Tax reduction is also applied to the tax on SB (manufacturing business category ) by

reducing the tax level by 30%.\

• A reduced rate of tax on hotel accommodation from 5 to 3% of the price;

• Green provisional tax is cancelled for family and business category;

• Are excluded from household cleaning fee the categories as follows: Retirees, Veterans,

War and Labor Invalids, welfare beneficiaries, the blind, the paraplegic tetraplegic sick

person;

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Fiscal Policies

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For a more favorable climate for business, the following incentives have

been introduced:

• Are exempt from paying taxes on property, identifying Tax table, cleaning and waste

treatment Tariff for four years, all new business entities in Tirana, which employ over 50

employees, taken from the list of unemployed by the Employment Office in Tirana.

• The obligation is reduced by 30% for Tax impact on infrastructure on construction permits for

all the subjects of construction, employing over 75 employees, taken from the list of

unemployed by the Employment Office in Tirana.

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Fiscal Policies

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What will be achieved:

• The employment of youth; university and non university graduates

• The employment of vulnerable groups

• Vocational rehabilitation

• Access to internship and programs for students

• Support for Business founded by young people

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Employment Program 2012-2014

The lack for many years of Tirana General Urban Plan (GUP)

for the city and the whole region has leaded to an unbalanced

development and misusage of the land. The new plan aims to

be a working tool to coordinate the urban development issues

and to lead the public investments of the region. GUP other

main issues are to:

1. Create a sustainable urban structure for the city and the

region

2. Lead the public and private investments for the

development of the city

3. Provide a balanced development between public and

private interest in the region

4. Create an offer with equal opportunities between actors

and factors in the process of territory planning and

development

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Current Regulatory Plan of Tirana provides five economic

poles, (including governor institutions; banks; art, culture &

religious institutions; retail & commercial centers; sport & play

activities), as follows:

1. Northern Pole: Railway station - Tirana River shore - New

Boulevard CBD (Central Business District)

2. Western Pole: Field of Aviation - CBD

3. South - Western Pole: Artificial Lake Dam - Recreational

4. South - Eastern part: Student City – Educational

5. Eastern Pole: Hospital "Mother Teresa" - Health

Tirana General Urban Plan and Innovation

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Tirana spatial Growth

Tirana General Urban Plan

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• Creation of new suburban parks (Vaqarr hills,

Paskuqan lake, Fark hills)

• Green ecological corridor, Tirana river

• New green areas within the residential zones

and the rehabilitation of the existing green

areas

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Green & Recreational Space - New Regulatory Plan

• Restructuring of new urban

areas,(rehabilitation of clean industry

areas)

• Encapsulation of industrial zones and

the transformation of contaminated

areas in green areas

• Creation of green ecological walls

along the road and the city's main axis

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Proposed Economic Zone UPNA

Characteristics:

• Plot Area 8 ha;

• 42.7 km or 38 minutes from the

Port of Durres;

• 22.7 km or 28 minutes from the

airport "Mother Teresa";

• 6.5 km from the center of Tirana;

• 9.8 km from TEG Trade Center;

• In the vicinity of the Great Ring of

Tirana;

• Equipped with electrical

substation.

1.5 ha

6.5 ha

Potential business activities to

be located:

• IBP (Industrial busines park)

• Tekstile

• Footware

• Agrofood

Focus

Regional development

Industry developmen

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Innovations, start-

ups, R&D

Business developmen

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Public alliance driven

Company driven

Cluster driven

University driven

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• Tirana Industrial Business

Park (IBP) will be built in a

30.000 m2 plot as a part of

Economic Zone UPNA .It will

be the first of its kind in

Albania and aims to bring

together in one place a

series of national and

international companies who

will invest in projects for

research and development.

• Well established companies

or start-ups businesses by

researchers or academics

wishing to commercialize

their research or spin-offs to

larger industrial companies.

• Usually, but not exclusively,

the companies located in a

Technology or Science Park

started their entrepreneurial

activities in a BI, which can

be an integral component (“a

nursery”) of the TP.

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Techno Park (TP), Science Park (SP) & Bussines Incubator (BI)

Tirana Industrial Bussines Park ( IBP )

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• Master plan area: 14 km2 (1,400 ha)

• Projects is consists of a wide boulevard axes, a Green River Corridor and

the Northern Ecological Park.

• Justice Square, Town Hall, Tirana Mall, Underground Parking, Civic Center,

City Gardens, Expo and Technology Parks, Sports and Recreational Areas.

Northern Boulevard and Rehabilitation of Tirana River Project (Grimshaw Architects, Arup, Grontmij and Technic Consulting Engineers)

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• The European Living Hub

• Multifunctional Arena

• Restore, Reconnect and Transform

• New urban management methods and

instruments

Northern Boulevard and Rehabilitation of Tirana River Project (Grimshaw Architects, Arup, Grontmij and Technic Consulting Engineers)

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• New vision and identity of

sustainable development

strategy

• Green Mobility (LRT, Cycling and

pedestrian paths)

• Urban Living rooms

• Urban Acupuncture (immediate

interventions, iconic projects and

pragmatic approaches)

•The 1st phase comprises of 2 lines with a total

length of 16.7 km, connecting the east - west

and north - south, with the largest passenger

flows.

• Aiming to adress aproximetly 100.000

passengers, replacing nearly 90 buses with 20

trams and improving significantly the

environment.

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1° phase: East – West (Kinostudio - Kombinat)

North – South (Student City – Mother Teresa Square – Multimodal Terminal)

2° phase: The Ring Road

Multimodal Terminal – Mother Teresa Airport

Tirana Light Rail Transport System (T-LRT )

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•The tram lines proposed here solve the

transportation demand for the incoming 30

year city of Tirana and to create more

pedestrian and recreation zones in city

• The project is being carried out to solve an urban transport deficiency in the City, namely the lack of a

public transport terminal. As such, the proposed project is part of a wider urban transport strategy.

• Seeing the terminal built, the objective of the City is to improve overall mobility by providing a full-

capacity transport terminal to allow the new train station, tram station, inter-urban buses, retail areas

and intercity coaches to unload passengers to urban buses and taxis along the city’s principal

corridor to the rest of the country, thereby reducing traffic congestion in the city, improving air pollution

by reducing fuel consumption for public transport.

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Multimodal Passengers Terminal

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In structuring the project as a

PPP (concession), the City

has offered an 85,000 m2 land

plot situated along the main

corridor leading north-westerly

out of the city toward Durres to

be contracted on a long-term

basis (+20 years) to a future

concessionaire to build,

operate, maintain the terminal

for the benefit of the citizens,

passengers, operators and the

environment. The docking

fees, retail rental revenues,

and parking fees generated

will be collected and shared

between the City and

concessionaire .

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T-UTCC (Tirana Urban Traffic Control Center) Implementation phase

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This project consists in:

• Fully Adaptive Real-Time Management Control Center

• Synchronization of all signaling system, installation of 60 control

units and new traffic lights

• Traffic monitoring system with CCTV cameras, VMS Variable

Massages system.

• Integration into GPS network, etc.

The Project is financed by the EBRD and will be completed

within 2013.

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Street Lighting (Upgrading of lighting system with new technologies)

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Main Objectives are to:

• Reduce Energy Consumption about 45%

• Improve Light Quality

• Improve Energy Efficiency (Reducing Energy Costs)

• Improve Operation Efficiency (Reducing Maintenance Costs)

• Reducing Carbon Footprint.

• Infrastructure for the Future Digital City Management

Beyond energy consumption, outdoor lighting applications involve issues ranging from public

safety, visibility, maintenance and quality of light. Based on international experience the project

will be implemented as a PPP and integrated with the current T-UTCC project.

Current situation: 12,831 lighting points, projected to increase to 20.000 modern lighting points

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Automatization of Urban Transport & Parking

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Automatization of Urban Transport & Parking the

“indispensable key to urban life” Installs and

operates:

1. Electronic Fare Collection Systems with the

integrated validator models reading both smart

cards and magnetic tickets.

2. Integrating additional functions to the T-UTCC

with centralized control system.

3. Provides easy, low-cost transport payment

management solutions.

4. Provides transportation and payment services

using high technology.

Smart Public Transportation Tracking System

1. Vehicles rendering public transportation

service are monitored on a real-time basis

2. The current number of passengers on board is

indicated

3. The operating statistics of the vehicles

included in the system are received

4. Speed and route violation reports are received

5. The routes are used effectively and planned in

the most productive manner

Smart Card “City Card”

1. The removal of cash in public transportation

2. Convenience for people in municipality

services

3. The practical and efficient use of a single

card for a wide range of purposes, other

than bus ticket: Parking, Museum etc

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Future Strategic Projects Urban requalification and restoration of the amortized buildings

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Reconstruction of the:

1. Facades

2. Roofs

3. Common Spaces

(Stairs, Railing, Main

Door, Electrical and

Mechanical installation,

PO Box, ect)

4. Parks

5. Sports and Play

Thank You

for Your Attention

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