Three banks agree to finance major infrastructure project

Tirana, Oct. 20 (AlbanianTimes) - Three private banks agreed to lend 10 million euro ($12.95 million) for the construction of Romano Port, the first private jetty in Albania, that will be used to handle the trans of oil, gas and their products in the coastal area of Porto–Romano, Durres

This project represents the first private jetty that will handle the transportation of oil and gas and other such products in Albania.

Total investment for the construction of the jetty reached EUR 16 million of which 63% or EUR 10 million of the total amount was syndicated by three banks, meanwhile the other part was financed by Romano Port sh.a. itself.

The EUR 10 million syndicated loan was made possible through the participation of the American Bank of Albania, Emporiki Bank – Albania and Tirana Bank. The American Bank of Albania acted as lead bank both in regards to negotiations and participation in the syndicated loan. The loan was granted for a 12-year term.

This investment is set to replace the port of Durres and Lezha for the transportation of oil and its products. The importance of this project stands on the fact that it represents one of the largest private industrial investments in this sector.

Growing interest on the part of private businesses led Romano Port sh.a. to acquire the license for the construction of this jetty with private funds. After the signing of the Concessionary Agreement by the government of the Republic of Albania and its ratification by the Albanian Parliament under Law no. 9298, dated 28.10.2004, Romano Port sh.a. received the KRRTRSH license for its construction. Works started immediately and are now at over 50% complete. Meanwhile, unloading of the first ship is projected to happen in the summer of 2007. Upon start of operations all existing oil and gas deposits are expected to move near the new jetty within a 12 to 24 month period.

Signing of the agreement was made with representatives of the concessionary company Romano Port sh.a. and representatives from the three participating banks: American Bank of Albania represented by Mr. Lorenzo Roncari – President & CEO; Emporiki Bank – Albania represented by Mr. George Caracostas – General Executive Director; and Tirana Bank represented by Mr. Bedri Collaku – Credit Division Director; as well as Mr. Artan Dulaku, Piro Bare and companies Inter-Gaz sh.a, Alba – Oil sh.a and Edil Al-It sh.p.k. The agreement was signed on the premises of the American Bank of Albania.

The placement and functioning of the jetty will be in accordance with the recommendations of the World Bank Group and IMF which advocate that oil and gas transportation jetty be constructed in well designated industrial zones.