Much to the chagrin of Italian and Albanian activists and pressure groups, the Albanian Central Election Commission rejected on October 25, 2007 a public referendum on development of an oil and gas terminal in the port city of Vlora (pop. 150,000). In early October the Vlora City Council, responding to environmental concerns and protests, approved the holding of a citizens’ initiative on construction of the terminal, the latest component of a no less controversial industrial and energy park located just six kilometres north of Vlora.

Isabelle Sorg

Italian company La Petrolifera Italo Rumena is promoting construction of the EUR 50 million terminal, while some of the power-plant projects have already received backing from financial institutions such as the World Bank. An investigation is pending into legal controversies surrounding details of financing and terms surrounding the deal.

Project opponents claim that La Petrolifera received extremely favourable concessions from the Albanian government in 2004, among which was a ‘purchase price’ of one euro for 150,000 square metres of waterfront property on which to construct a storage facility. Also, under terms of the deal, the property is to become completely Italian-owned after a period of 30 years, while La Petrolifera has been granted the right to become sole operator in Vlora Bay.

“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 Petrolifera should there be any environmental and social damage in Vlora Bay,” said Catarina Amicucci from Rome-based Campagna per la Riforma della Banca Mondiale.

Commenting on potential environmental impacts, Gani Mezini from the Civic Alliance for the Protection of Vlora Bay said: “The [bay] will suffer irreparable harm from the oil industry development, and from the immense oil traffic accompanying it. We are ready to repurchase the land at a premium price and completely decontaminate and rehabilitate it.” Development plans have also raised concerns for the local tourist and fishing industries, as well as fears that coastal ecosystems and the protected Narta Lagoon could suffer significant environmental damage.