Albanian Railway to Undergo New Restructuring

Albanian Railway to Undergo New Restructuring

TIRANA, August 9

Ministry of Infrastructure and Energy has initiated the draft law for the division of Albanian Railway. According to the version chosen in this draft law, the Albanian Railway will be divided into 4 independent units, each one of the joint-stock companies, completely independent from the others.

When the law will come into force, the companies listed below will be created :

1.    The joint-stock company, of Infrastructure of Albanian Railway

2.    The joint-stock company, of Passengers Transportation

3.    The joint-stock company, of Goods Transportation

4.    The joint-stock company, of Maintenance of Movable Railway Cars

These companies will be a property of the Republic of Albania and will be governed as enterprises in public ownership or controlled from the state by following the law for public enterprises.

Besides the division of assets and accounts, the most important transactions during the 6-month phase of the establishment will be:

-The preparation and connection of contracts between the Ministry of Economy and Finances, and four new companies that will be established after the division of assets and accounts.

-The creation of a board of directors for all four companies, including the selection of the board members

The first transactions that will be executed from all 4 board of directors will be:

The approval of the status for each of the companies

The development and implementation of their organizational structure

The division of the personnel of Albanian Railway into 4 new companies

The minister of Economy and Finances will submit the request for the registration of 4 new companies at the National Business Center. This draft decision is not accompanied by additional financial effects for the state budget. In the program of the middle-term budget 2020-2022, a Lek400 million is mentioned for the support of the Albanian Railway sector.

Right now, with this fund covers the expenses for the salaries and social insurances, respectively for the existing employees of the administration that will be spread onto the four new companies that will be created by the restructuring.


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