Albanian - urban infrastructure investment and development privatization pilot program for water enterprises

This report analyzes privatization options for upgrading water supply and distribution systems in Durres and Tirana districts and provides recommendations for applying privatization concepts to water supply and distribution systems throughout Albania. Advocating a definite role for the private sector, the report recommends that: (1) a concession privatization option be applied to the Tirana and Durres water systems as a pilot; (2) the GOA establish a strong regulatory system to monitor the role of the private sector concessionaire; and (3) the GOA make a capital investment in these water systems and continue providing State subsidy to this municipal sector during the start-up years of the concession contract. Finally, to make the sector self-sustaining, the strategy for water needs to include wastewater. (Author abstract, modified)