Restructuring the Economy of Albania

The Role of the Scientific Institutions
in the Restructure of the Economy of Albania -
Small and Medium Enterprises in the Production Sector

Prof. as. Doc. Genci Luarasi

COUNTRY PROFILE

Geography and People

Albania is located in southeastern Europe, on the Balkan Peninsula between the Adriatic and Ionian Seas. It is bordered by Serbia and Montenegro on the north, Macedonia on the east and Greece in the south. Italy is 100 kilometers (km) away on the east, across the Adriatic and Ionia Sea.

Albania's total area is 28,750 sq km, slightly larger than Maryland. Its land boundaries are 720 km and its coastline, along the Straits of Otranto, is 362 km long. The country's

terrain is mostly mountainous with narrow plains along the coast permitting agriculture. Its natural resources include petroleum, natural gas, coal, chromium, copper, timber and nickel.

The country's climate can be characterized as mild temperate with cool, cloudy and wet winters and hot, clear and dry summers. Inland areas are cooler and wetter than coastal plains. Some 21 percent of total area (6,038 sq km) is arable, 70 percent of which (4,230 sq km) is irrigated. Meadows and pastures comprise 15 percent of the total land area and another 38 percent is forests and woodlands.

The estimated mid-1996 population of Albania is 3.25 million with an annual growth rate of 1.3 percent. The largest concentration of Albanians abroad is in neighboring Macedonia with approximately 600,000 people, which comprises almost 26% of Macedonia's population.

The ethnic distribution of the population is somewhat homogeneous: Ninety percent Albanian, eight percent Greek and two percent other minorities including Vlachs, Gypsies, and Macedonians. Approximately sixty percent of Albanians are Muslim. Thirty percent of the population is Greek Orthodox and ten percent Roman Catholic. From 1967 to November 1990 all places of worship were closed and religious observances were prohibited. Public Religious practice is now allowed and is widely used.

Government and Political Environment

Today's Albanians, primarily descendants of the ancient Illyrian tribes who settled in the region in the seventh century B.C., are a non-Slavic people with Indo- European roots. Albania became a part of the Ottoman Empire in the 1470s and remained as Ottoman territory until 1912 when the London Conference on the Balkans created an independent Albanian state.

The years between the two World Wars were fraught with internal political instability as a result of regional tensions within the country and foreign influences on domestic politics. In the mid-1920s, the Italian government signed economic and foreign relations treaties with Albania and provided large financial subsidies, ensuring a dominant position for Italy in Albania. In 1939, Italy annexed Albania which was later invaded by Germany when Italy surrendered the territory on September 1943. When the German forces left Tirana in 1944, a brief civil war ensued which led to the formation of a Communist government with Enver Hoxha as its leader.

During the formative years of the Communist rule, Hoxha instituted a government system based on orthodox Marxist ideology and Stalinist practices and allied Albania with the former USSR. Close Soviet-Albanian relationships disintegrated when Khrushchev departed from strict Stalinist ideology. Albania broke off diplomatic relations with Moscow in mid-1960s and sided with China in the Sino- Soviet dispute. After the death of Chairman Mao Ze-dong in 1976, Hoxha severed relations with China in 1978 because of China's overtures to the U.S.

From 1978 to his death in 1985, the Hoxha regime became increasingly autocratic, asserting extreme isolationist policies and stressing national self reliance. A total of 700,000 small concrete bunkers (one for every two people) were built all around the country to protect against an ill-perceived foreign invasion, making Albania one of the highest per capita consumers of cement in the world for a few years. Even after Hoxha's death, the country remained totally isolated until late 1980s when Hoxha's hand-picked successor President Alia re-established political and economic relations with Austria, Germany, and Italy. The refugee crisis in the summer of 1990 when Albanians attempted to escape to Italy and Greece exposed Albania's internal problems to the international community. In early 1991 production began to collapse in both agriculture and industry and in May 1991, following extensive labor strikes, the Alia government fell. A caretaker government came into power as the economy entered a period of even greater crisis marked by mass destruction of state-owned property including factories, schools, transport and electrical systems, food warehouses and hospitals.

After the fall of the previous regime, came a complete breakdown of public order. The first fully democratic elections in Albania were held in March 1992, and Dr. Sali Berisha of the Democratic Party was elected President. The government formed by Aleksander Meksi, the Prime Minister, launched ambitious political and economic reform programs. The basic aims of the economic reform measures were to stop emerging hyperinflation, re-establish control over the budget, privatize agriculture and mobilize foreign economic support. The President was re-elected in national elections in June 1996. This provided a degree of political stability. However, the breakdown of law and order in early 1997 - caused primarily by the failure of private savings institutions operating a pyramid scheme - forced the President to call for new elections in June 1997.

Mr. Rexhep Mejdani of Socialist Party was elected as the President. The Government formed by Mr. Fatos Nano is a coalition of four parties: Socialist Party, Social-Democratic Party, Party of Democratic Alliance, and Party of Human Rights.

Economy

Albania has a large rural economy with agriculture generating close to 60% of output, and industry and construction 20 percent. Albania, which can be considered as an extremely poor country by European standards, has been making the difficult transition to a more open-market economy. A severe depression occurred after the collapse of the previous centrally planned system in 1990, but after large setbacks in 1991 and 1992, the economy started recovering in 1993. Albania recorded the strongest real GDP growth rate in Europe in 1995. Foreign assistance and humanitarian aid also supported the recovery in 1993-1996. Large segments of the population, especially those living in urban areas, continue to depend on humanitarian aid to meet basic food requirements. Another significant factor that supported the recovery process has been the remittances of some 20% of the labor force which work abroad, mostly in Greece and Italy. These remittances make up almost one-third of the overall GDP and help offset the large foreign trade deficit.

Following an impressive transition record and four consecutive years of 9 percent real growth, the recent economic crisis, triggered by the collapse of the pyramid schemes, has caused a reversal of the gains of 1993-1996 and resulted in a negative GDP growth in 1997. Total liabilities of these schemes - which mushroomed to enormous dimensions in the course of 1996 - are estimated at approximately 50 percent of GDP.

The economic fall-out from the crisis was severe. The loss of wealth in the failed financial schemes depressed domestic demand. International trade slowed significantly, remittances from abroad dropped sharply, and foreign aid flows came to a halt. The crisis impoverished many households and the number of registered unemployed increased by 15 percent from January to August 1997.

Source: Albanian Center for Foreign Investment Promotion and Mynistry of Finance and Economy, Tirana. * November 1996 data.

A new government, led by Prime Minister Fatos Nano's Socialist Party was elected in June 1997 and took office on July 28 of the same year. After taking power, the new parliament lifted the state of emergency and passed legislation addressing the pyramid schemes.

Cooperation with neighboring countries has improved tax collection. All these measures resulted in the recovery of the economic activity and foreign trade. By late October 1997, the Lek had appreciated by 28 percent from its pre-election level.

Despite this limited recovery, serious challenges still lie ahead for the Government. Besides undercutting government revenue, the crisis also created new demands to provide social protection, improve public security, and restore damaged infrastructure. Also of concern are the growing trade and budget deficits, both of which need to be handled. Basic restructuring has taken place, but the banking sector in particular needs to be restructured.

Notwithstanding its very low level of income, Albania has economic potential. The arable land is rich and fertile; the country is well endowed in mineral and energy resources; the climate and the coastline are ideal for tourism; and wages are a fraction of those in neighboring countries. If concerted international and bilateral assistance continues and the political situation remains stable, Albania can rapidly achieve sustained economic growth.

INVESTMENT CLIMATE

Foreign Investment

Albanian economy has undergone a substantial transformation from a command economy to a market economy since 1991. The pace of economic reforms especially increased in 1993 to stabilize the economy and sustain the economic growth.

The foreign direct investment to Albania has been increasing rapidly during the last five years. Table 2 provides the flow of foreign direct investment into Albania since 1991. As illustrated, the level of foreign direct investment increased tenfold from 1991 to 1996.

* This figure does not include the money spent in offshore oil and gas exploration and investment in trade sector. Source: Albanian Center for Foreign Investment Promotion;1997.

During the first few years after the economic transition the majority of the foreign investment came from individual investors mostly in trade related industries. This trend, however, has been changing rapidly. Especially during the last few years more companies are investing directly by forming joint ventures and partnerships with local companies and/or establishing subsidiaries or branch offices in Albania. Table 3 illustrates the number of joint venture companies and companies owned by foreigners as of 1996.

Legal and Regulatory Framework

Foreign investment in Albania can be classified under one of the following categories:

· foreign direct investment;
· participation in Albanian companies;
· portfolio investment; and
· other forms of investment specified in the Foreign Investment Law.

Albanian government is well aware of the necessity of an open regime with respect to foreign investment and trade for enhancing international competitiveness and integration into the global economy. For this purpose, Albania adopted the national treatment clause which states that foreign investments are treated no less favorable than investments made by Albanian companies. This principle is based on the general premise that equal treatment of investors in similar circumstances to create free competition is a prerequisite of a positive investment environment.

According to the Law on Commercial Companies, which was accepted on November 19,1992, there are four types of companies in Albania:

· General Partnerships,

· Limited Partnerships,

· Limited Liability Companies, and

· Joint Stock Companies.

The legal foundation of any Albanian company rests on its articles of association and by-laws. In general, the articles may be in notarized form or simply signed by the associates as a private document. The form, name, duration, company designation, principal place of business, purpose and the amount of capital must be indicated in these articles. Additional items are required to establish a limited liability or a joint stock company.

Each associate must make a capital contribution to be involved in the establishment of a company. Capital contributions can take a number of forms: cash, in-kind contribution, or use of property. The essential condition for a capital contribution is that it must have an ascertainable value. The capital contribution by any individual of his technical knowledge or services for a share in the company is rarely permitted since service can not be subject to a forced sale to satisfy the company's creditors.

According to the Albanian Company Law, General Partnership is considered as a separate legal entity distinct from its partners, who themselves may be individuals or legal entities. All partners in general partnership are considered merchants and are personally liable for company debts. The minimum number of partners required to establish this type of partnership is two and there is no minimum capital requirements. Interests in a partnership can not be represented by negotiable share certificates. No securities can be issued by the partnership.

The Limited Partnership has two classes of partners: general and limited. General partners are deemed merchants and have unlimited personal liability. The limited partners, on the other hand, are only liable to the extent of their share in the company's capital.

The associates of a Limited Liability Company are not considered as merchants and are liable only to the extent of their interest in the company. There is no limit on the maximum number of associates. The minimum capital required for the establishment of a limited liability company is 100,000 Lek (roughly the equivalent of $640 calculated at the rate of exchange of May 1998). The capital is divided into interest - shares of equal value. The minimum nominal value is set at 1,000 Lek. All the capital must be subscribed and paid up before the organization of the company.

The Albanian Company Law makes a distinction between Joint Stock Companies that have offered their shares for sale to the public (public joint stock company) and those that have not (private joint stock company). Normally it is quite rare for a joint stock company to make a public offering while it is being organized since formalities are simpler when establishing a private joint stock company. The minimum capital required to establish a public and private joint stock company are 10,000,000 Lek (equivalent of $64,000 calculated at the rate of exchange of May 1998) and 2,000,000 Lek (equivalent of $ 13,000 calculated at the rate of exchange of May 1998), respectively.

The companies established in Albania must be registered with the Office of Registration in the District Court of Tirana. The following is a list of documents that needs to be presented:

· the request to the court

· articles of incorporation

· the statute

· proof of payment of the capital

· identity of the founders and the administrator

Generally, these documents should be in Albanian and must be notarized. This is obligatory when an immovable property is involved. The registration fees paid to the Office of Registration, Albanian Chamber of Commerce (this is an annual fee), and the tax office (including a local tax) is less than $500.

In addition to the types of companies listed above, a foreign investor may operate in Albania through a branch. The branch must also be registered with the. Office of Registration and must have a legal representative empowered by the home office to administer the affairs of the branch. Except for the differences in terms of

internal structure and organization, a branch operates much like a commercial company in its dealings with third parties. Also for tax purposes, a branch is treated in the same manner as an Albanian company.

Foreign investments in Albania are not conditioned by any preliminary authorization. Foreign investors enjoy full protection and security in accordance with the basic principles of International Economic Law. Albania also consents to the submission of the dispute resolution to the International Center for Settlement of Investment Disputes to be treated in accordance with the Convention on the Settlement of Investment Disputes between States and National of Other States.

Taxation and Investment Incentives

Every company (foreign or Albanian) which is involved in any sort of economic activity in Albania is considered as a resident for tax purposes. This applies equally to branch offices of foreign companies. A corporate income tax of 30% is applied to every company regardless of the corporate structure. The corporate income tax increases to 40% and 50% for companies that are involved in tourism and oil and gas exploitation, respectively.

In order to promote growth and increase foreign and domestic investment the following incentives are offered by the Albanian Government:

· A four year tax holiday for all companies that exercise for at least 10 years economic activity in manufacturing or production sector;

· A 60% reimbursement on corporate income tax for re-invested profits in the production sector;

· A five year tax holiday for companies that exercise promoted activity in a priority tourism development zone;

· A tax incentive package for companies operating in a free zone or entering into a concessions contract,

· Losses can be carried on for three consecutive years in addition to the year that the loss occurred;

· No limit on debt/equity ratio; and

· No withholding tax on outgoing dividends.

Profit Repatriatum

All kind of assets can be freely transferred outside Albania subject to the payment of taxes and the satisfaction of claims and adjudicatory judgments. No withholding tax is applied on such transfers.

Privatization in Albania

During the last five years, privatization of approximately 50% of the state-owned enterprises has been completed. These enterprises, however, only make up 20% of the value of the assets. The privatization of the special importance sectors such as oil, mining, telecommunications ,energy, water resources, airport, and transportation, still remains.

The new government which was formed by Mr. Fatos Nano after the 1997 elections has approved a new strategy for privatization. The privatization strategy of Albania focuses on a step by step privatization of small, medium, and large enterprises.

DEVELOPMENT OF THE SME IN ALBANIA

With the politic and social-economic changes in Albania, the centralize economy began too dissolve into a new one, the free market economy. So the product factories that were state property began in a slow rate to face the decentralization of the economy. Now at this time exist these kinds of factories:

-Medium and grate factories that are state property and will begin the transformation by the privatization plan sated up from the Albanian government.

-Factories that were state property and now are private.

- Private factories that were formed from the investments groups.

The number of these kind of factories is greater during the period 1993-1996, and from the other hand they have been traditionally formed where the population density was in a higher rate and the production tradition where like Tirana and Durresi. For the period 1991-1998 the information is given in the table and the graph.

Interesting is also the object of their activity. As you can see the preferences are for these activities that bring economic effect in the market with a low apply of investments. On the other side by the consolidation of these kind of private factories a high level of interest has grown for the productive sector, for sure because the SME in Albania are still from a small and medium stage and they have limited financial possibilities.

The interest has begun to develop for cooperation with science institution to take good advises when they have to do grate investments. The new technologies that have been imported together with the machinery are available with the know-how that brings a lower rate of work from the science institute in Albania. Although these situations, in the future this institutions will be motivated to utilize in a better way the inner wealth and to protect the environment.

HIGHER EDUCATION AND SIENCE

Historical Overview

Higher education was established in Albania after the Second War. It is relatively new in Albania. The first teacher training institution was founded in Tirana in 1946. The first Higher Pedagogical Institute was established in 1948 and the first university in 1957. Until the end of the 1990-91 academic year the University of Tirana was the only university in Albania consisting of 11 faculties, covering the natural sciences, medicine. social sciences and engineering. There were also seven institutes, three of them situated in Tirana, the rests in regional towns: Shkodra. Elbasan. Gjirokaster and Korçe.

In 1991, the University of Tirana was subdivided into parts:

• The University of Tirana, with seven faculties;
• Polytechnic University of Tirana, comprising four engineering faculties.

There have also been changes in the status of some of the institutes. The Higher Institute of Agriculture of Tirana and those institutes located in Shkodra, Elbasan, Gjirokaster and Korçe have gained university status, the institute of Fine Arts has become an Academy of Arts, while the Institute of Physical Education has preserved its old status. In 1994 the newest university was established in Vlora.

Current Higher Education is provided by eight universities and several Institutions of Higher Education under the authority of the Ministry of Education and Science. There are also two Military Higher Schools, which, however, do not come under this Ministry's authority. All of these are public institutions and financed by the State.

Actually the Higher education has a total enrolment of about 18.700 students full-tüne studies and 18.920 students part time studies (correspondence).

Total number of academic staff is 1800 full time and 1100 part time.

Legislative Framework

The Law on Higher Education (February 1999) regulates Higher Education Institutions.Legislative reform program has been involved since 1993. Specific bilateral advisory missions have been held regularly on the issues of new legislation for higher education, revising the statutes of the universities, developing a system of quality assurance and supplementing a new strategy of higher education and research policy. The first law on Higher Education was established on April 1994. The first Law allowed the system to represent itself more favorable in relation to the challenges of the country's rapid development. The Governmental Program of the newly elected Albanian government, which made specific reference to education and science, provided clear guidelines to the university development The discussions within academic environment and recommendations done by international experts moved the idea for changes in existing Law on Higher Education. Main themes discussed in the country considered requiring reform in the legal framework and opened the way for performing the future of higher education future through the adoption of the existing law in a new one. The new Law on Higher Education was set up this year (February 1999). In a new law, it can be identified four main problematic topics:

a. Description the structure of the system ( institutional landscape: universities. professional higher education, private higher education and intermediate bodies as National Agency for Accreditation an Quality Assessment;

b. Defining academic freedom and institutional autonomy, including also accountability mechanisms;

c. It was emphasized the different aspects of institutional autonomy respected in the new legislation through academic, financial, structural and administrative autonomy.

d. Outlines clear principles of governance and management: rules for elections of leading staff and bodies;

e. Define the mechanisms and principles of State funding in higher education through one body (i.e. MES), role of State and non-State institutions to engage in additional activities, tax benefits etc;

f. Defining the mechanisms of the evaluation of the quality of teaching, the role intermediate bodies (accreditation, recognition and the role of quality control)

Private Establishments in Higher Education

The majority of higher education institutions in Albania are state-run institutions maintained by the government. The existing Law on Higher Education does permit the establishment of non-public higher education institutions.

The Financing of Higher Education

The higher education institutes are public and are financed by the State with allocations established under the " Budget Law" and legal acts involved on the new Law on Higher Education. Each university is granted its own budget; in addition they and other higher institutes receive public funding for research activities made available through national research programs. Within the framework of the higher education law there are other possibilities of obtaining funding through joint activities with "third parties" such as private enterprise or state institutions.

Of the total budget for the education sector, 10 % is designated to higher education. Allocations within the higher education budget for 1998 were to cover personnel and material cost as well as investments, in other words expenditure on property, building and equipment.

Some Objectives of the Ministry of Education and Science

On the national level the Ministry of Education and Science (MES) foresees to implement its own strategy relating the higher education development:

• The increase of GNP dedicated to education and to higher education.

• Currently, the participation rate of the relevant age cohort in higher education is under 10%. A little less than half of the students enrolled in higher education are in correspondence courses The students are also concentrated in five universities, the others having very low enrolments. At the same time the number of secondary school graduates is relatively high and large numbers are unable to enter into higher education. For these reasons the increase of enrolments to higher education is an important goal of the government. Although the district universities represent a small number of students, their existence could provide an intellectual and economic stimulus to development as well as potential for increased numbers of study places.

• To implement the newly submitted Law, MES is focusing elaborating of order and rules to manage the funding for public education institutions;

• Implementing of quality assurance system:

Priority is given to establishing the new courses and forms of study which will increase access to higher education and the integration of teaching and research as essential means of adapting to the new demands of the economy and labor market.

SCIENTIFIC INSTITUTION FOR INDUSTRY

Institution of Metallurgy R&D

The Institute of Metallurgical Research and Design ( IMRD ) is established in 1978 as an Industrial Research and Service Center in order to support and to develop the Albanian steel, chromium, copper and nickel industry. By Government decision in 1996 the IMRD is included in the state owned R & D institutions network. Actually the institute is under the authority of Ministry of Public Economy and Privatization.

During 1978 -1991 the activity of Institute ( 90 people in 1991 ) was totally financed by Government. Since 1991 the Institute is self financing it's activity. Nowadays here are working 22 specialized people. Except for it's own specialists, the Institute recruits the best local experts according to the specific project needs.

Following the drastic change of situation in the metallurgical sector of the country characterized with the decrease of production and investments, the Institute has changed the nature of it's activity in accordance with the new environment. Instead of totally research & design work mainly in metallurgical sector in the past, now we aim to strengthen the position in other fields such as environment protection, civil engineering, industrial consultancy, investment assessment, etc.

The IRMD has established close cooperation with domestic and Balkan Institutions. Recently the Institute has been a successful partner for the Government and for the foreign companies in carrying out the restructuring / rehabilitation projects for the various enterprises in the country.

The Main Fields of Activity

• Rational exploitation of domestic metallurgical raw materials.
• Technological improvements in metallurgical enterprises.
• Research on properties of metals and standardization
• Studies and designs in the field of environment protection.
• Complete designs of lines, machineries and equipments.
• Studies in the field of energetic and partial / complete designs for steam, oxygen, fuel,
• Water supplying systems.
• Consulting of industrial enterprises on the restructuring projects.
• Investment assessment.

Some of The Research and Design Works

• Particularities of blast furnace running with high chromium and nickel domestic iron ore.
• The influence of chromium and nickel on the mechanical and technological properties of low and medium carbon structural and constructural steels.
• Thermodynamical property forecast of slogs and activity measurement on Fe0 - Cr203 - 5i02 systems.
• High chromium hot metal dichromate (2.6- 4.0% Cr ) in 20 ton Shaking Ladle.
• Elbasan Steel Mill. Restructuring and Privatization Project.
• ( Albanian counterpart of Vöest Alpine Industrial Service GmbH ).
• On a new standardization of Albanian reinforcing steel in accordance with ISO requirements
• Phase transformation of Albanian laterite ores during it's basic hydrometallurgical treatment.
• The influence of selective reduction roasting of Albanian laterite ores on the nickel recovery.
• Engineering of Elbasan Nickel Smelter ( Albanian counterpart of German Saltsgitter Company).
• Prefeasibility study on Albanian nickel-silicate ore treatment in Rotary Kiln-Electric Furnace for the production of ferronickel.
• Feasibility study and the design of third 9MVA fizrnace and it's gas cleaning system for ferrochrome Burrel Plant.
• Feasibility study and the design for ferrochrome Elbasan Plant.
• Technical prefeasibility for the replacement of existing 9 MVA furnace with 15 MVA furnaces in Elbasan Ferrochrome Plant.
• The project for the reconstruction of Power Plant of former Metallurgical Complexto change it from a steam producer to an electric energy producer.
• Feasibility study for the partial restructuring of Refractory Materials Plant in
• Elbasan to produce ceramic products.
• Study for environznent pollution on Elbasan Region and measures to improve the situation.
• Geo - ambiental study for determination of soil and water pollution from metallurgical industry etc. on Elbasan region. ( Institute of Geology, Tirana ; Institute of Metallurgical R & D, Elbasan ; Institute of Mineralogy and Geochemistry, Aachen - Germany)
• Introduction of STASH-ISO Standard Methods for solid, liquid and gaseous pollutants on Albanian metallurgical industry.
• Performance enhancement of Steel Mill Staff through introduction of new motivation system
• Microsoft Excel Model design for material & heat balance and cost forecast for the Elbasan Ferrochrome Plant
• Solid waste of metallurgical industry; the possibilities for making use of them and environment protection
• Design, experimental production and testing of high strength reinforcing steel
• Alternative energy supply sources for the cutting of the energetical costs at Elbasan Steel mill.
• Development Strategy design for the region of ex metallurgical Combine aiming at the creation of a good environment for investment in metallurgy and in the SME
• Efficiency increasement of metallurgical treatment of domestic chromium raw material through higher performance of management and the design of an optimal development strategy

Study and Design Institute of Mechanics and Wood

Study and design institute of mechanics and wood (SDIMW) is composed from the union of two institutions : "Institute of Mechanical Studies and Design" founded in 1970 and "Study and Design Bureau of Wood and Paper processing industry" founded in 1973, by the Council of Ministers Decrees, to assist the national industry in the domain of industrial design, standardization and technology applications.

In performing its institutional tasks, the Institute could initially count on 45 staff, including scientists, engineers and technicians. During the following decades, also due to the ever increasing number of industrial specialized sectors and the relevant technology implications, the staff was increased as reach about 120 people organized in various departments such as Departments of Design, Technology, Informatics, Economic, etc.

At present SDIMW has a staff of 12 people, including 8 scientists and engineers with various specializations and background experience in the most important fields of mechanical, wood and paper and other industrial activities. It is organized in three departments : Department of Mechanics, Department of Wood and Paper, and department of Management.

SDIMW work program is coordinated by a Management Council, composed by the Director and two of Chiefs of Departments. The organization scheme is :

In establishing the institute medium and long term strategies, the Management Council is assisted by a Scientific Council composed by a group of institute scientists, representatives of the Ministry of Public Economy and Privatization, Ministry of Education and Sciences and the Polytechnic University of Tirana.

Co-operations : SDIMW during the last decade has co-operated with some international institutions and organizations such as :

• GTZ Germany (Address in Albania : Ministria e Financave Tirane) in the framework of the project on Privatization, Transformation and their Legal aspects.
• CESMA Italy (Address : Via Gorizia 49, 42100 Reggio Emilia) in the framework of PHARE program with the objective the `strengthening of Institute of Mechanical

Mechanical Studies and Design'

• TECHNICAL CHAMBER OF GREECE, Section of Central Macedonia (Address: Zefxidos 8, 54622 Thessaloniki)

Some specializations have been made from our specialists last years :

• Specialization in the field of Quality and Standardization, in the framework of PHARE program (Hungary)
• Specialization in the field of SME -s in the framework of UNIDO program (Checz Republic)
• Specialization on `Total Quality' initiative in the framework of PHARE program

  (Albania)

• Specialization on "Wind energy implementation' (the Netherlands)
• Specialization on `Efficient use of energy' (Albania)

Based on its present structure and available knowledge’s SDIMW is in position to offer a range of services in the following subjects :

• Techno-economic studies to assist the Albanian industry in the transional phase from centrallsed to market economy
• Consultative services for state organs, institutions, local and foreign private firms, etc, on situation, assets, performance, human capability, the development possibility etc., of the mechanical and wood and paper processing plants in our country
• Consults on industrial estates and SME-s, the manner of their foundation and

  organization, technical, economical and juridical aspects, their transformation, etc.

• In the framework of the privatization, the evaluation and expertise of workshops, plants, equipment, machineries, etc., both from the technical viewpoint and their real financial value
• Consults on safety in general and the sure work of machineries and equipment, according to the norms, standards and Directives of EU; adaption of international standards to suit Albanian industrial requirements
• Studies and consults on ambiental impact during reabilitation and developing of various industries
• Studies and consults on exploitation of renewable energies, such as small hydro, wind, solar, etc.
• Application of new technologies or up-grading of existing ones for mechanical, wood and paper, and other industries

The institute has a library with about 3000 technical books and an archive with about 1500 constructive and technological designs compiled during its long existence.

Among the important studies performed during last 5 years deserve to be mentioned :

• A study on the possibility of exploitation of wind energy in Albania. Experimental application of a wind pump
• The evaluation principles of metal working machines
• A study on the actual situation of the state enterprises that will go through the

  liquidation or privatization process

• Harmonizing of the Albanian technical legislation with that of EU one in the field of machineries (elaborating of EU Directive on machineries)

• Techno-economic and juridical aspects in processes of transformation of ex-industrial zones into industrial parks

In view of re-definition of its mission and role, SDIMW is now open to co-operate with the growing Albanian private sector as well as potential international partners and investors, by making available its acquaintance of the national industrial base and its wide experience in the domain of industry.

Mining & Processing Technology Institute

This Institute makes different projects and studies in the field of Geologies, Mines, and Environment Protection etc. The results for these projects are gained through studies, pilot program, and analyzes. The main staff off the institute is off about 120 employees from whom 60 of them are specialists with experience in research and in-situ works and more then 150 temporary hired experts.

The graphical structure of the institute is this one:

Projects Rewards by Free Competition & Tenders & Contact

• Application of New or Improved Separation Processing Procedures for the Treatment of Albanian Chromate Ores "COPERNICUS 93" Program
• ASH RECYCLING TECHNOLOGIES "PECO 94" PROGRAMME
• Recyclage des Residues de la Mineralurgie et Metallurgie du Cuivre en Albanie et

  Roumanie, en vue d'en Valoriser Les Metaux Precieux (Or, Argent)"COPERNICUS 94" PROGRAM

• Coal Partners in Europe ("Clean coal technologies") PHARE
• Archeological Site Protection Implementing Renewable Energy "PECO 1994" PROGRAM
• Recycling of Fly Ash for Producing Building and Construction Materials Based on a New Mineral Binder COPERNICUS 1994 PROGRAM
• High Performance Materials Derived from Industrial Waste Gypsum INCO-COPERNICUS 1995-1996 PROGRAM
• Project of the Rehabilitation of "FANI" River polluted from the copper industry activity in ALBANIA (financed by SIDA-Sweden)
• Feasibility Study of the KUKES-TROPJA chromite region -Albania (financed by IDB -Saudi Arabia) 1995-1997
• Geological Studies for industrial viability of Clean carbonates of North and South of Albanian areas Dedaj -Puka and Orikum &Llogara-Vlora (three Projects financed by Italian company AQUATER-Pesaro Italy) 1996-1998
• Geotechnical studies for Road rehabilitation Projects of Albania South Corridor (Contracts with Greek Companies ADK S.A. and Hellen. S.A for Gjirokastra Kakavija Corridor and Contract with PARKMAN LTD for Lushnje -Vlora Corridor) 1997-1998
• Geological Studies for industrial viability of basalt rock of Albania for high speed railways of Italy (financed by SIMEST) 1997
• Geological Studies for industrial viability of carbonates of North and South of Albania for cement production (Projects financed by Swiss company Space lift Engineering Itd) 1997
• Project for Chemical & Mineralogical Lab.Test procedures modernization (Cooperation with Canadian Company :"Can-Tech" 1996-1997
• Project for high tech Geological Drilling program for chrome Shebenik area

  (Cooperation with Japanese Company :"SUMICON" financed MMAJ-Japan State) 1998

• Economic & Environmental Evaluation of copper & Gold potential of Albania (Contratc with Canadian Company :"NEBEX Resources" 1997
• Albanian Uranium Assessment Liabilities (financed by Phare ) 1998-1999

Foreign Experience & Activities

• Participation in International Investment Conference Tirana -Albania 22 November 1993
• Participation in Ohrid Meeting (Macedonian) to establish Environmental Policy and Practices on Lake of Ohri, Struga December 1993
• Participation in the Environmental Protection in Albania Seminar organised by REGIONAL ENVIRONMENTAL CENTER (REC) Tirana, January,5th,1994
• World Mining Congress Sofia Bulgaria June 1994
• Participation in the Seminar "DOING BUSSINESS IN MINING INDUSTRY" July 10-161995 Instambul organized by MIGA
• Participation in International Investment Conference Tirana -Albania June 1995
• Balcan Mining Industry Conference Struga Macedonia June 1995
• Workshop on "Privatisation of Mining Industry" organized by IMCL and M&SH London 20-24 December 1995
• Partner Team leader in "Workshop on Evaluation of Mining Projects" (ITNPM-URANERZ) July 1996 Tirana
• Lecturing on "privatization of Mining Industry in Emerging markets"-Universita di Ferrara Italy June 1996
• "Global Mining Taxation Workshop" San Petersburg ,Russia October 1997 organised by United Nations
• Phare multicountry Energy Program Workshop" Natural gas pricing, a riffs and operational twinning" Aprill 1998 Tirana organised by PHARE
• Crans Montana Forum June 1998 as a member of Albanian State delegation
• Partner Team leader in Workshop organized by UNESCO and EULA Italy on "Environmental Analysis toward a sustainable development" Tirana, Albania June 1998
• Partner Team leader in WORKSHOP PRAQ III-Establishment of National Quality Program project PHARE WP1:EO 03 Tirana June 1998
• LISBON Expo '9810 September 98 as a member of Albanian State delegation
• 62-nd round of Fiera Del Levante Bari -ltaly 17 -20September 1998 as a member of Governmental Delegation
• Workshop on presenting the GTZ privatization consultancy in Albania October 29 Tirana,
• Phare multicountry Energy Program Workshop on "Energy project management" Tirana Albania 5 November 1998
• International Workshop on Harmonization of National Regulations, Standards and Procedures for Certification of Equipments and Materials in the Mining Industry October 15-17 1998.Poland organized by United Nations
• Ankara ,Turkey visit 1-4 March 1999 as a member of Albanian State delegation
• Instambul 16-18 March 1999 "Conference on Mining Economics: Lecture on "Privatization of Mining Industry of Albania" in Technical University of Instambul
• "Spring Fair" 1999 in Tirana 25-30 March 1999.