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					DOING BUSINESS
  - TOURISM –
  IN ALBANIA
KALO & ASSOCIATES is active in the legal
market for over 15 years acting as legal counsel to major
investors, and IFIs. Some of our clients:
YESTERDAY – The check list of investors was
quite long: type of legal system, type of vehicle,
entry options, cost of starting and continuing a
business, form of government support, tax,
employment cost and rules, safety, incentives,
re-imbursements, exit options, etc.
 TODAY – Check list is rather short, Albania
being a member of NATO, a member-candidate
to EU and signatory of many conventions on
investment protection and enforcement of
claims, so there are less questions on the list
QUESTIONS NOW INVESTORS ASK
 ARE OF A PURE LEGAL NATURE:

 status of title of land
 fairness in tender processes/appeals
 secured transactions system
 enforcement of contracts and
 enforcement of claims
STATUS OF TITLE OF LAND

- Restitution process.
- Legalization process
- From-scratch registration.
- Recent amendment to FDI Law
- Amendment of expropriation law enabling
  GOA to take land for important projects
FAIRNESS IN TENDERS/LICENSING

 Procurement,     Concession,     Economic
 Zones laws establish tender procedures
 (often tender documents are specified by
 Council of Ministers resolutions)

 One guarantee is evaluation commission
 is not part of drafting of tender documents
  FAIR     TREATMENT         OF     APPEALS

  We are witnessing introduction of several new
  special structures, like:

  Public Procurement Appeal Commission
  Ombudsman
  Procurement “Ombudsman”
  Taxpayers “Ombudsman”


gover
SECUREDTRANSACTIONS SYSTEM
A modern secured transactions system which
recognizes all forms of security interests that
exist in modern societies will developed financial
markets.

All financing transactions are secured through
mortgages, possessory pledge and non
possessory pledge and registries deal with such
security routinely
ENFORCEMENT               OF        CONTRACTS

- Civil Code offers sufficient guarantees

-   “Doing business” culture has improved

-   Government Contracts – no difference,
    except Governing Law restrictions

-   Limitation of liability issue
   ENFORCEMENT OF CLAIMS
Local courts will usually handle disputes with
public administration, whereas contract disputes
can be resolved elsewhere

Recognition of foreign judgments/awards

An additional force of private bailiffs recently
introduced as licensed
   INVESTMENT OPPORTUNITIES:
 Energy and Natural Resources
 Communications/Technology
 Tourism, Leisure, Hotels
 Food/Beverages
 Infrastructure (ports, roads)
 Agriculture
 Retail/Commercial Centers
 Air Transport
     TOURISM
regularly defined as a




  Strategic Sector
     LEGAL FRAMEWORK

International Conventions
Foreign Investments
Small Entrepreneurs/Company Law
Tourism Law
Policy Statement 2007-2013
 Regulation on Water Tourism
         NEW INSTITUTIONS


 Inter-ministerial Committee
 Advisory Committee of Private Sector
 Information Centers in 12 Counties
                        STATE AID

State aid in tourism is to be granted in accordance with
Albanian Tourism Law and State Aid Law, and also with
SAA, CEFTA. It can be provided in the form of:

   Subsidies , grants, soft loans; guarantees
   Tax exemptions or deferrals, lowering of tax rates;
   Lowering of social security contributions;
   Equity participation

         Role of National Tourism Agency (NTA):
   Support investors in tourism sector to secure financing;
   Managing the national fund for tourism development
       EFFECTIVE DOUBLE TAX TREATIES:

Austria, Belgium, Bosnia Herzegovina, Bulgaria, China,
Croatia, Czech Republic, Egypt, France, Republic of
Macedonia, Greece, Hungary, Italy, Kosovo, Latvia,
Luxembourg, Malaysia, Malta, Moldova, Netherlands,
Norway, Poland, Romania, Russia, Serbia, Slovenia, South
Korea, Sweden, Switzerland and Turkey.

DOUBLE TAX TREATIES EFFECTIVE 1.1.2011

Estonia, Germany, Ireland and Kuwait.
                 REGULATIONS

The sector is regulated:

      Regulations for hotels, restaurants, travel
      agents/agencies, tour operators, souvenirs
      shops, touristic villages, tour guides,
      designing and building of tourist units
    SECTOR’S OPPORTUNITIES

-   Privatization of assets under Defense Ministry

-   Investments in the southern coast

-   Albania good location is fit for business tourism

-   Industrial parks and complexes

-   Access to 500 million Euros government has
    allocated in the 2011 budget for
WHAT INVESTORS EXPECT:

(i) Finalization of restitution/legalization process
(ii) Law enforcement (construction, environment)
(iii) Specific industry incentives (bonuses, VAT)
(iv) Clear cut powers of local-central government
…to be continued…
WHAT INVESTORS EXPECT:

…continued
(v) Mapping and Urban Planning
(www.gc-al.com ;
http://tpi.mcata.org.al:8080/Map.aspx)
(vi) a better coordination with local authorities
(vii) improve websites, including GIS/GPS
(viii) improve education, continued training
    CLOSING NOTE TO INVESTORS:
    Albania is a country with great potential and recently has
    demonstrated to have a healthy business environment,
    however it is recommended to:

   Due diligence on Status of Title/Standing of Target or
    Terms of Green Field Project

   Check bankability of project and financing terms

 Engage in negotiations on Terms of Contract(s). Try to
  mitigate the risk of payment of purchase price (Escrow is
  recommended)
 Ensure investment benefits the special State protection
   Hope these slides were useful!

However, should you have questions
    feel free to contact us at:

     www.kalo-attorneys.com

				
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posted:12/12/2010
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