Albtelecom's privatization postponed

Albtelecom's privatization postponed

Turkish prime minister, Erdoğan Recep Tayyip, postponed his two day visit to Tirana due to health problems, while the Albanian minister of Economy, Genc Ruli, announced there was a lack of progress in privatization of Albtelecom, Albania’s fixed line telecommunication corporation.

Mr. Erdogan's visit had raised expectations about ending the two year up-and-down privatization process of Albtelecom by the Turkish company, Calik Enerji. An agreement was signed in April 2005 where 78% of Albtelecom was sold to the Turkish company for EUR 120mn, but the new right-wing government stopped the procedures, claiming irregularities.

"Last week we talked with Calik Enerji, but they have not yet resolved the biggest issue", Mr. Ruli said in a press conference in Tirana Tuesday. According to Ruli, Calik Enerji should present a partnership agreement with an experienced telecommunications company in order to fulfill requirements under Albanian laws. Albanian government is under pressure from Turkish diplomacy to finish selling Albtelecom to Calik Enerji.

Last month, Turkish foreign minister Abdulla Gül, visited Tirana and declared full support of its government for Calik Enerji’s ambition to buy Albtelecom.

Albtelecom has 250,000 customers and a reported revenue of USD 120 million. The corporation is currently working to expand its broad band internet service, and has also a strategic international position with interconnection lines from Bari (Italy) to Istanbul, (Turkey).