AGP Executive Report

Energy & Infrastructure: Argent LNG and the Albanian government signed an MoU to jointly evaluate a large onshore LNG storage and regasification terminal on Albania’s coast, targeting up to ~5 million tonnes/year capacity and positioning the country as a regional energy gateway with links to TAP, IAP and the Fier–Vlorë corridor. EU Funding & Water Services: The EU, France’s AFD and Albania launched the first phase of an €118.4m Durrës wastewater upgrade (EU grant + AFD loan), with works due to start in 2027 to bring sanitation closer to EU standards. Digital Finance: Albania’s digital banks are pushing for European market access as EU rules on payments and digital identity wallets tighten, with Jet Bank highlighted as a branchless model preparing for SEPA cross-border euro payments. Legal & Governance: SPAK is expected to seek Parliament’s approval again to lift immunity for former Deputy PM Belinda Balluku as the corruption/money-laundering case expands. Tourism & Hospitality: METT Ksamil signed for Albania’s Riviera, adding a new year-round leisure and wellness hotel concept in Ksamil. Economy Watch: Albania’s inflation hit 3.2% in August, with transport and food driving the biggest increases.

LNG & Energy Security: Argent LNG and the Albanian government signed an MoU to jointly evaluate a large onshore LNG storage and regasification terminal on Albania’s coast, targeting up to 5 million tonnes per year and positioning Albania as a regional gas gateway for the Western Balkans and parts of Southeast Europe, with possible links to TAP, IAP and the Fier–Vlorë corridor. EU Infrastructure Upgrade: The EU, France’s AFD and Albania launched the first phase of Durrës’ wastewater upgrade (Euro 85m EU grant plus Euro 33.4m AFD loan), with works due to start in 2027. Digital Finance Push: Albania’s digital banks are preparing for deeper European market access as Brussels rewrites payment rules and rolls out EU digital identity wallets, with Jet Bank highlighted as a branchless model. Housing Reform: Prime Minister Edi Rama unveiled a National Housing Program using social rentals, direct purchases, conversions of state/confiscated properties, rent subsidies and public-private partnerships. Tourism & Local Tensions: Albanians protested a Trump-linked luxury resort plan tied to Sazan and nearby areas, adding to a wider Europe-wide backlash against mass tourism models. SPAK & Corruption Case: SPAK is expected to seek Parliament’s approval again to lift Belinda Balluku’s immunity as the Balluku case expands around alleged tender violations and luxury villas. Inflation Watch: INSTAT reported August inflation at 3.2%, with transport and food among the biggest drivers.

SPAK & Anti-Corruption: Albania’s Special Prosecutor’s Office is set to ask Parliament again to lift former Deputy Prime Minister Belinda Balluku’s immunity, as the Balluku case expands with allegations tied to major infrastructure tenders (including the Llogara Tunnel and Tirana ring road) and luxury villas. Digital Finance & EU Rules: Albania’s digital banks are positioning for European market access as the EU rewrites payments rules and pushes Digital Identity Wallets, with Jet Bank highlighted as a branchless model preparing for SEPA cross-border euro payments. Energy Infrastructure: Argent LNG and Albania signed an MoU to jointly evaluate a large-scale LNG storage and regasification terminal on the coast (up to ~5 million tonnes/year), aimed at boosting Western Balkans supply flexibility and reducing disruption risk. EU Funding for Water & Sanitation: Durrës wastewater upgrades got the green light with an €85m EU grant plus €33.4m from France’s AFD, with works expected to start in 2027. Construction & Urban Works: The Albanian Development Fund launched a tender for Mother Teresa Square renovation and an underground parking facility in Tirana (about €22.6m), with bids due Oct 9. Fuel Costs: Fuel prices remain a pressure point for drivers, with higher diesel and petrol costs and increased state fuel-tax receipts reported for March–July. Tourism & Hospitality: METT Ksamil signs in Albania’s Riviera, adding a new year-round resort concept designed by Studio Fuksas.

SPAK & Anti-Corruption: Albania’s Special Prosecutor’s Office is set to ask Parliament again to lift former Deputy PM Belinda Balluku’s immunity as the case expands, with allegations tied to tender violations in major infrastructure projects (including the Llogara Tunnel and Tirana ring road) and alleged illicit rewards via luxury villas. Energy Infrastructure: Argent LNG and Albania signed an MoU to jointly evaluate an onshore LNG storage and regasification terminal on the coast, with regasification capacity up to about 5 million tonnes per year and potential links to TAP and other gas corridors to boost Western Balkans supply flexibility. EU Funding for Water: Durrës wastewater upgrades get a major push with an €85m EU grant plus €33.4m from France’s AFD, with works expected to start in 2027. Digital Finance & EU Rules: Albania’s digital banks are positioning for closer integration with Europe’s payment market as Brussels rewrites payment and authentication rules, with SEPA membership steps already underway. Fuel Costs: Higher diesel and petrol prices are hitting drivers hard, with fuel price rises costing about €80m extra for the March–July period and taxes taking roughly half the pump price. Procurement & Public Works: Albania’s Development Fund launched a tender for renovating Mother Teresa Square in Tirana and building an underground parking facility worth about €22.6m. Business & Tourism: METT Ksamil signs in Albania’s Ionian Riviera, adding another high-end hospitality project aimed at year-round leisure demand.

Energy Infrastructure: Argent LNG and the Albanian government signed a non-binding MoU to jointly evaluate a large-scale onshore LNG storage and regasification terminal on Albania’s coast, targeting up to 5 million tonnes per year and positioning Albania as a regional energy gateway linked to TAP, the Ionian Adriatic Pipeline and the Fier–Vlorë corridor. Housing & Construction: Prime Minister Edi Rama unveiled a National Housing Program built around social rental housing, using tools like direct market purchases, conversion of state/confiscated properties, rent subsidies and public-private partnerships. Public Works: The Albanian Development Fund launched a tender for renovating Tirana’s Mother Teresa Square and adding an underground parking facility worth about €22.6m, with bids due Oct 9. Port/Environment: Work has started on an €85m EU-backed wastewater upgrade in Durrës, adding 113 km of sewer lines and about 13,000 new connections. Corruption Watch: SPAK seized a villa in Palasë tied to former deputy PM Belinda Balluku, alleging asset concealment via former footballer Igli Tare and benefits linked to a Tirana road tender. Industry Policy: A “Made in Albania” law draft is nearing public consultation, aiming to support local producers and exports and prepare firms for EU market rules. Macroeconomy: INSTAT reported August inflation at 3.2%, with transport and food among the biggest drivers. Energy Prices: Fuel price rises are estimated to have cost Albanian drivers about €80m extra between March and July, while the state collected roughly €18m more in taxes. Security & Trade: Police seized 107.7kg of cannabis hidden in a camper shipped from Canada to Durrës, with suspects sought.

Inflation Watch: Albania’s August inflation hit 3.2% year-on-year, with the biggest pressure coming from Transport (+12.0%) and Food (+0.95 percentage points), while Clothing and footwear (-3.2%) pulled the other way. Energy & Industry: Argent LNG and the Albanian government signed a non-binding MoU to evaluate a coastal LNG storage and regasification terminal (up to 5 mtpa) aimed at boosting Western Balkans gas security and linking into regional pipelines. Public Works: The Albanian Development Fund launched a tender worth €22.6m for renovating Mother Teresa Square in Tirana and building an underground parking facility. Housing Reform: Rama unveiled a National Housing Program using social rentals plus tools like direct purchases, conversions of state/confiscated properties, rent subsidies, and public-private partnerships. Anti-Corruption: SPAK seized a villa in Palasë tied to former deputy PM Belinda Balluku, alleging hidden ownership via Igli Tare and benefits linked to a Tirana road tender. Transport Costs: Higher fuel prices are estimated to have cost drivers about €80m extra from March to July, while the state collected €18m more in taxes. Wastewater Upgrade: Durrës starts an €85m EU-backed wastewater upgrade adding 113 km of sewer lines and about 13,000 new connections.

Fuel Costs Watch: Albania’s drivers paid about €80m extra for fuel between March and July as diesel and petrol prices climbed, while fuel imports stayed nearly flat but the state collected roughly €18m more in taxes. Public Works & Cities: The Albanian Development Fund launched a tender for renovating Tirana’s Mother Teresa Square and building an underground parking facility worth Lek 2.08bn (€22.6m), with bids due Oct 9. Energy Infrastructure: Argent LNG signed an MoU with Albania to evaluate an onshore LNG storage and regasification terminal (up to 5m tonnes/year), aimed at regional energy security. Anti-Corruption: SPAK seized a villa in Palasë tied to former deputy PM Belinda Balluku, alleging hidden ownership via Igli Tare and benefits linked to a road-tender consortium. Industry & Trade Policy: Albania is preparing a “Made in Albania” law to support local producers and exports, with public consultation expected before year-end. Wastewater Upgrade: Durrës started an €85m EU-backed wastewater upgrade adding 113km of sewer lines and about 13,000 new connections. Construction & Consumer Impact: Inflation rose to 3.2% in August, driven mainly by transport and fuel-related costs. LNG Regulatory Steps: Argent LNG also advanced its US LNG project by submitting key FERC resource reports 11 and 13. Tourism & Business: TGI Fridays signed a development deal with Devolli Group for 10 restaurants across Kosovo, Albania and North Macedonia. Drug Trafficking Case: Police seized 107.7kg of cannabis hidden in a Canada-shipped camper arriving at Durrës, valued at about €1.2m.

Anti-Corruption: Prosecutors charge former deputy prime minister Belinda Balluku with corruption, asset hiding and money laundering, alleging she steered a Tirana outer ring road tender to Alko Impex General Construction and received work worth up to €410,000 via a Palasë villa, with SPAK also accusing football figure Igli Tare of money laundering tied to the property. Drugs & Ports: Police seize 107.7kg of cannabis worth about €1.2m hidden in a camper shipped from Canada to Durrës, packed in 190 packages behind wooden panels, with two suspects sought. Energy Infrastructure: Argent LNG and the Albanian government sign an MOU to evaluate a large-scale onshore LNG storage and regasification terminal on Albania’s coast, positioned as a regional energy-security asset for the Western Balkans. Industry Policy: A draft “Made in Albania” law is set for public consultation, aiming to support local producers and exports across industrial goods, services and crafts, with an EU-prep programme starting in January. Wastewater Upgrade: Work begins on an €85m EU-backed wastewater upgrade in Durrës, adding 113 km of sewer lines and about 13,000 connections, with a second phase planned for surrounding areas. Construction & Housing: New data highlights Albania’s fast construction pace alongside persistent severe housing deprivation, showing a gap between building activity and living conditions. Inflation Watch: INSTAT reports August inflation at 3.2%, driven mainly by food, transport, and housing-related costs. Renewables Targets: Government plans to add 1,525 MW of solar and wind by 2030 (1,005 MW solar, 520 MW wind), alongside grid and storage upgrades. Sanctions & Shipping: Ukraine’s intelligence says Albania barred the Russian-linked tanker Hanuman from docking in Durrës, citing its role in Russia’s “shadow fleet” fuel exports. Hospitality Expansion: TGI Fridays signs a development deal with Devolli Group to open 10 restaurants across Kosovo, Albania and North Macedonia, using a franchise-first expansion model. EU Integration: EU accession talks accelerate as Albania pushes for faster integration, framed by Brussels as a geopolitical strategy tied to energy security and border defense.

Protest & Property Pressure: In Tirana, police clashed with protesters blocking access to parliament over a Trump-linked luxury hotel plan, as demonstrators say early works damaged nesting sites for flamingos and loggerhead turtles. EU Energy Buildout: Albania’s energy roadmap targets 1,525 MW of new solar and wind capacity by 2030 (1,005 MW solar, 520 MW wind), with grid upgrades and storage flagged as key. Inflation Watch: Albania’s inflation hit 3.2% in August, driven mainly by food, transport, and housing-related costs; transport prices rose 12% year-on-year. Sanctions & Ports: Albania barred the Russian-linked product tanker “Hanuman” from docking in Durrës, with Ukraine citing sanctions enforcement and shadow-fleet fuel shipments. Manufacturing Policy Push: The Albanian Manufacturing Association submitted six requests for Fiscal Package 2027, including easing labor costs, customs relief on raw materials, and support for technology and automation. Hospitality Investment: TGI Fridays signed a development deal with Devolli Group to open 10 restaurants across Kosovo, Albania, and North Macedonia, using a franchise-first expansion model. Digital Identity Move: Albania expanded ALBTrace’s mandate to cover the design, operation, and protection of biometric digital identity infrastructure ahead of a national digital ID rollout.

Sanctions & Shipping: Albania’s port authorities in Durrës barred the Russian-linked product tanker “Hanuman,” after Ukraine’s intelligence flagged it as part of a “shadow fleet,” underscoring tighter enforcement of maritime sanctions. Inflation Watch: INSTAT data shows Albania’s inflation rose to 3.2% in August, with transport and food leading the push, while the Bank of Albania kept its 2.5% rate unchanged. Retail & Hospitality Expansion: TGI Fridays signed a landmark development deal with Devolli Group to open 10 restaurants across Kosovo, Albania and North Macedonia, marking the brand’s first Balkans expansion. Energy Buildout: Albania targets 1,525 MW of solar and wind by 2030 (1,005 MW solar, 520 MW wind), alongside grid upgrades and more storage. Digital Sovereignty: Albania expanded ALBTrace’s mandate to cover the design, operation and protection of biometric digital identity infrastructure ahead of a national digital ID rollout. Manufacturing Policy Push: The Albanian Manufacturing Association submitted six requests for Fiscal Package 2027, including lower labor costs, customs relief on raw materials, and support for automation and technology. Housing Pressure: Despite fast construction growth, severe housing deprivation remains high, highlighting a gap between building activity and living conditions. Construction & Cost of Living: Buyers in Tirana are getting more selective as home prices rise, focusing on location, access and construction quality. Protest & Environment: The “Flamingo Revolution” continues in Italy and Albania over a luxury resort plan in protected areas, keeping pressure on development decisions tied to the Kushner-linked project.

Manufacturing Push for Fiscal Relief: The Albanian Manufacturing Association has sent six priority requests for the 2027 fiscal package, asking for lower labor costs, reduced customs duties on raw materials, tax relief for reinvested profits, and grants for technology and automation as EU competition and exchange-rate swings squeeze producers. Digital Identity Expansion: Albania is expanding ALBTrace’s mandate to cover the design, operation and protection of biometric identity systems, as the country ramps up preparations for a national digital ID rollout. Housing Market Watch (Tirana): Buyers in Tirana are getting more selective as prices rise, focusing more on location, access and construction quality, with demand spreading to areas like Farka, Sauk and Kashar. Border Tech Pressure: IATA is urging the EU to keep temporary “safety valve” flexibility for biometric Entry/Exit System procedures to avoid worsening congestion while EES stabilizes. Wildfire Response: A large wildfire in Himara is threatening homes and orchards, with firefighters seeking extra support as winds drive rapid spread. Flamingo Revolution Abroad: Albanians in Lombardy kept protesting in Milan for the 16th Saturday, linking environmental concerns over a protected-area resort to broader calls for political change. EU Security Industry Signal: A Western Balkans security conference in Sarajevo said around 200 regional companies can produce NATO-standard ammunition, with Serbia and Bosnia highlighted for capacity. Croatia Timber/Logging Governance Gap: A regional report points to governance delays and loopholes fueling illegal logging, with Albania named among affected areas as EU deforestation rules approach.

Wildfires and corruption myths: A major wildfire in Himara is threatening homes and orchards as strong winds spread flames, while a separate debate is raging over conspiracy claims that fires are being set to clear land for resorts or other “projects.” Protest and resort politics: In Tirana and across Europe, the 100-day “Flamingo Revolution” continues over a luxury resort in a protected area linked to Jared Kushner, with activists also reporting Instagram account blocks tied to protest coverage. Industry pressure ahead of EU competition: Albanian manufacturers are asking for tax cuts and lower import costs (including raw materials not made locally) as EU competition nears, citing higher labor costs, shortages, and the strong lek. Energy pipeline updates: Albania is advancing major energy plans, including Energy Community status for projects such as the Moglica pumped-storage expansion and a new 400 kV Albania–Kosova interconnection. Housing demand shifts: Tirana buyers are getting more selective as home prices rise, focusing more on location, access, and construction quality. Maritime and fisheries cooperation: The Adriatic Sea fisheries science unit was inaugurated in Split to strengthen sustainable management across the region.

Tourism & Protests: Albania’s “Flamingo Revolution” hit 100 consecutive days of street protests in Tirana over a Kushner-linked luxury beach resort in a protected area, with Meta/Instagram restrictions also becoming part of the fight over who controls the narrative. Manufacturing Competitiveness: Albanian factories are pushing for tax cuts and lower import costs ahead of tougher EU competition, asking for reduced employer social contributions, relief on duties for non-domestic raw materials, and faster write-offs for machinery plus grants for automation. Energy Projects: Albania is set to advance three major energy investments after new Energy Community rules—Moglica pumped-storage expansion, a new 400 kV Albania–Kosova interconnection, and rehabilitation of key 220 kV lines. Transport & Trade: Italy remains Albania’s top trading partner (27% of total trade; 39% of exports), while vehicle registrations reached about 1.1 million by end-August, with electric cars growing fastest. Maritime & Fisheries: A new Adriatic Sea fisheries science unit was inaugurated in Split to strengthen sustainable, science-based management across shared waters. Industry Events: Tirana’s National Film Festival returns after a 14-year break, signaling renewed momentum for Albania’s creative industries.

Maritime & Industry Diplomacy: The Balkans Blue Economy Summit, held within the Balkans Sea Fair, secured patronage from Italy’s MIMIT, with three-day focus on ecological transition, marina development, and logistics/corridor links. EU Trade Pressure on Local Industry: Albanian manufacturers are pushing for tax cuts and lower import costs to stay competitive as EU competition tightens, citing higher labor costs, shortages, and the strong lek. Energy Projects Move Forward: Albania is set to advance three major energy investments under the Energy Community framework, including Moglica pumped-storage expansion, a new 400 kV Albania–Kosova interconnection, and rehabilitation of key 220 kV lines. Tourism Under Scrutiny: Protests over a Jared Kushner-linked luxury resort have escalated into Meta/Instagram account blocks affecting activists, journalists, and an opposition MP—raising fresh questions on transparency and public debate. Security & Ports: Albania blocked a Russian shadow-fleet tanker from entering Durres, citing sanctions evasion linked to fuel exports. Local Business Conflict in Vlora: A hotel owner in Radhimë alleges armed threats and a €5m extortion demand; police arrested suspects after a fast-moving operation. Transport & Mobility: Albania’s vehicle fleet topped about 1.1 million by end-August, with electric cars growing fastest. Digital Identity: Albania expanded ALBTraceCo’s remit toward biometric and digital identity governance as the country prepares a nationwide digital identity platform.

Manufacturing Pushback: Albanian manufacturers are asking the government to cut taxes and import costs to stay competitive in the EU, citing higher labour costs, worker shortages and a strong lek; they want lower employer social contributions, reduced or zero duties on imported raw materials not made locally, no profit tax on reinvested earnings, faster machinery tax write-offs, and grants for automation and new tech. Energy Projects: Albania is set to move forward on three major energy investments after the government approved new Energy Community rules—expanding the Moglica hydro plant with pumped storage, building a new 400 kV Albania–Kosova interconnection, and rehabilitating 220 kV lines linking Bosnia and Herzegovina, Montenegro and Albania. Trade & Industry Links: Italy remains Albania’s top trading partner (27% of total trade in the first half of 2026), taking 39% of exports and supplying over 22% of imports, reinforcing the “Made in Italy” supply-chain and customs simplification push. Digital Identity & Biometrics: Albania expanded the mandate of its state identity enterprise tied to ALBTraceCo to cover biometric and digital identity governance, as the country prepares a nationwide digital identity platform aligned with EU standards. Transport & Infrastructure: Tirana approved land for a new railway station on the New Boulevard as part of a wider government complex, aiming to modernize the capital’s rail access. Tourism & Social Media Clash: Protests against a Kushner-linked luxury resort have escalated into Meta/Instagram account blocks affecting activists, journalists and an opposition MP, with Meta saying some removals were made by mistake while the dispute continues. Public Safety: A large wildfire in Himara threatened homes and orchards, with strong winds complicating firefighting efforts. Security & Crime: Police arrested suspects after an alleged €5 million extortion and firearm threats against a hotel owner in Vlorë, with investigations and checkpoints launched across nearby counties.

Energy Projects: Albania is set to advance three Energy Community projects: Moglica’s pumped-storage expansion (1,620 MW, ~€1.79bn, investment start 2027), a new 400 kV Albania–Kosova interconnection, and rehabilitation of 220 kV lines linking Bosnia and Herzegovina, Montenegro and Albania up to Vau i Dejës. Sanctions & Shipping: Albania blocked a Russian shadow-fleet tanker, Hanuman, from entering Durres, after it had exported hundreds of thousands of tons of Russian fuel to multiple countries. Tourism Pressure: Protests against a Kushner-linked luxury resort have escalated into a Meta/Instagram crackdown affecting dozens of Albanian activists, journalists and opposition figures, raising fresh questions about transparency and public debate. Agribusiness & Exports: A fresh look at EU fruit and vegetable monitoring flags Albania among suppliers underperforming on maximum residue level interceptions, mainly tied to peppers. Transport & Infrastructure: Tirana approved land for a new railway station on the New Boulevard, alongside Albanian Railways offices and new government buildings. Industry & Trade: Italy remains Albania’s top trade partner in 2026’s first half, taking 39% of exports and supplying 22% of imports. Public Safety: A wildfire in Himara threatened homes and orchards as strong winds spread flames, prompting requests for extra municipal support. Road Market: Albania’s vehicle fleet reached about 1.1 million by end-August, with electric vehicles growing fastest.