An amended deal with Trans Adriatic Pipeline project company has to be ratified by Parliament in order to enter into effect. Albania is expected to benefit an additional amount of 80 million euros under the revised agreement with TAP, the company in charge of natural gas pipeline project designed to carry Azeri gas to Europe via Albanian territory.
The amendments to the agreement include a requirement for TAP to reconsider the fiscal stability period during which the company will pay profit tax to Albanian government, a change that is projected to bring 60 million euro more to Albania than initially planned; requires company to double its investments in Albanian municipalities to 14 million euro from 7 million euro previously planned. Under the revised deal, TAP also should double funds on natural gas training from Euro 350,000 to Euro 700,000. The deal also involves a memorandum pledging support to the newly established Albgaz gas transmission operator in Albania so that it can be part of TAP’s maintenance services in the operational stage.
Albania and the Trans Adriatic Pipeline (TAP) AG agreed last December on a renegotiated deal on the natural gas TAP project to secure Albania similar benefits to those enjoyed by the other countries involved in the project.
Ministry of Energy said they reached agreement on Albania’s benefits from the pipeline project, commitment to the development of the gas market and provision of maintenance services for TAP pipeline system in the Albanian territory.
The agreement, which has undergone several legal procedures and is now waiting for Parliament’s approval, will bring numerous direct benefits to Albania.
The review of the fiscal stability period grants Albania the right to receive higher profit tax, which during the operational lifetime of the project is estimated to create a positive effect of around 60 million euros. Albania was the first to sign and ratify the Host Government Agreement with TAP in April 2013.
TAP is a natural gas pipeline project passing through Greece and Albania and the Adriatic Sea to Italy and further to Western Europe. The 863-km pipeline passes through 38 municipalities across the territory of Albania.