Albanian referendum aims to put a break on Italian oil and gas plans for renowned Vlora Bay

Vlora, Albania – The city council of Vlora in Albania this week approved a citizens’ initiative to hold a public referendum on the development in the picturesque Bay of Vlora of a 200,000 ton oil and gas terminal that is being promoted by the Italian La Petrolífera Italo Rumena company. If constructed, the terminal would become another component of a controversial industrial and energy park located less than six kilometres north of Vlora, a city of more than 150,000 inhabitants.

The sprawling energy park plans include the hosting of an outlet to the Adriatic for the AMBO pipeline and several thermo power plants. Some of the projects within the energy park have already received the backing of certain international financial institutions such as the World Bank despite protests and warnings from Vlora’s citizens that the park will bring detrimental impacts to the waters and coastal ecosystems of the Vlora Bay, will threaten tourism and fishing, and will harm their quality of life.[1]

Aleksander Mita, of the Civic Alliance for the Protection of the Bay of Vlora, said: “The city council’s approval of the referendum is an important milestone in our campaign. Whether the referendum takes place or not depends ultimately on the state Central Electoral Committee which approves requests for referenda according to the Albanian Constitution. We have reason to believe that the committee could block the referendum. In 2005 it did not allow a referendum on the Vlora power plant even though 14,000 people in Vlora requested one.”

The 50 million euro oil and gas terminal would be constructed on the site of a former caustic soda and PVC factory contaminated by mercury. [2] Although decontamination of the site by the Czech Geotest company allegedly started in 2002, people in Vlora argue that they have been informed neither about the progress of the decontamination nor about plans to rehabilitate the site. According to the last census 141 families live at or in proximity of the site and have heard nothing about potential resettlement.

Gani Mezini, of the Civic Alliance for the Protection of the Bay of Vlora, commented: “We call upon Petrolífera Managing Director Guido Ottolenghi to withdraw from this project. The Bay of Vlora will suffer irreparable harm from the development of the oil industry and from the immense tanker traffic accompanying it. We are ready to repurchase the land at a premium price and completely decontaminate and rehabilitate it.”

The project’s opponents say that La Petrolífera Italo-Rumena obtained a concession from the Albanian government in 2004 that involves extremely disadvantageous conditions for Albania. The Italian company is looking to construct the storage deposit in a public ocean-front property of 150,000 square metres, having paid the Albanian government a price of 1 euro for the entire area. Under the deal, the property will become exclusively Italian after a period of 30 years. La Petrolífera has also reserved the right to be the sole operator in the Bay of Vlora.

With this agreement La Petrolífera Italo-Rumena will control 50-60 percent of the Albanian oil market and will be able to influence internal market prices. In addition the Italian company has arranged tax breaks from the Albanian government which can only help it to squeeze all other local operators from the market, say the local opponents.

Caterina Amicucci, of the Campagna per la Riforma della Banca Mondiale based in Rome, said: “A referendum in Vlora is absolutely vital. It is clear that the agreement between La Petrolífera Italo-Rumena and the Albanian government was signed in the exclusive interests of the economic lobbies close to the former prime ministers Fatos Nano and Silvio Berlusconi. This agreement will not only create a monopoly situation for a foreign company in the Albanian energy sector, but also provides full legal immunity for Petrolífera should there be any environmental and social damage in Vlora Bay.”

For more information, contact:

Aleksander Mita
Civic Alliance for the Protection of the Bay of Vlora
Tel: +355 33 25313
Mob: +355 (0)69 226 0212
Email: aleksander.mita AT gmail.com

Gani Mezini
Civic Alliance for Protection of the Bay of Vlora
Tel: +355 33 25 313
Mob: +355 69 24 46 010
Email: gani.mezini AT gmail.com

Caterina Amicucci
Campagna per la Riforma della Banca Mondiale
Tel: +39 06 782 6855
Mob: +39 349 852 0789
Camicucci AT crbm.org

Notes for editors:

1. The USD 112 million Vlora oil-fueled power plant will be built with public money from the World Bank, the European Bank for Reconstruction and Development and the European Investment Bank. The Albanian Macedonian Bulgarian Oil Corporation promoting the 894,5 km long AMBO pipeline designed to facilitate the transfer of 30-40 million tons of crude oil per year from the Caspian region to the Adriatic Sea has been in discussion over project financing with the European Bank for Reconstruction and Development, the World Bank’s insurance agency MIGA, the International Finance Corporation, the US Overseas Prime Investment Corporation and an Export-Import Bank.

2. It is estimated that the plant released up to 70 tons of mercury into the air, soil and marine sediments until its closure in 1992.