IMF Backs Albania-Kosovo Highway
BIRN Agency, 25 09 2007 Tirana_ The International Monetary Fund has endorsed a controversial highway project, currently under construction, which will link the Albanian coast with Kosovo.
“We are monitoring the budget and large capital investments, like the Durres-Kukes highway. Though their cost is high, we are in favour of this project”, said Gerein Bell, head of the IMF mission, on Tuesday.

The project is the largest public works scheme in Albania’s recent history, and is being financed through commercial loans.However, the prosecutor-general’s office has been investigating possible irregularities in the tender for the construction of the highway.

Prosecutors have already questioned the former deputy Minister of Transport, Armand Teliti, and are seeking a similar meeting with the former Minister of Transport, Lulzim Basha, now the Minister of Foreign Affairs.

Basha has refused to cooperate with prosecutors, and has said the charges against him are politically motivated.

Bell dismissed fears that the energy crisis that has hit Albania through frequent power cuts will substantially reduce economic growth.

“Trembles from outside factors have not affected economic growth until now, but they have raised inflationary pressures. The performance of exports has been better than expected; the same can be said about tourism, which has helped compensate for the negative effects of the energy crisis,” she said.
According to the Finance Ministry, last year’s power cuts cost Albania one per cent of its GDP growth in 2006.