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NEW methods for financing construction, Rama: No pit sales or clearing!

2025-07-28 18:23:12Politikë SHKRUAR NGA REDAKSIA VOX
Edi Rama

The Albanian government believes that the time has come for important projects in the construction sector not to be financed solely by bank loans, but to explore other instruments as well.

During the meeting with representatives of construction companies, Prime Minister Rama made it clear to them that the sector must switch to the use of new financial instruments.

"So that construction is not based on pre-sale and not based on clearing, because these are two forms that were understandable and acceptable for a certain period of time, but can no longer be understandable or acceptable today, when opportunities exist to have access to other forms of financing," said Rama.

The formula that the head of government proposed is related to the fact that whoever throws the money will be called an investor and not a buyer.

"These are projects financed by institutions and investment funds that are not banks directly and that represent interested investors, from large investors to very small investors, who are investors who want to buy an apartment or want to buy a house on the beach. This investment formula is a pre-sale, but it is a pre-sale based on the investment guarantee, so in fact having your wings covered with financing and managing to increase the value of your final product, which is one thing when you sell it in the hole, another when you sell it at the end", said Rama.

The new proposal will also have stricter control measures for builders, as according to Rama, international funds in particular require guarantees of quality and completion of works according to the deadlines set in the contract.

"So "carrot on one side, stick on the other", because otherwise we have it impossible. We have seen it, there are some funds that have come to us here and are talking in figures from 100, from 500 to 1 billion, to 2 billion, to 3 billion, ready to invest in various forms with co-financing and in cooperation with investors and our builders, but what has prevented us from encouraging them to do this immediately is the great fear of finding ourselves in conditions where the two basic conditions for these funds, which are time and quality, are not met and if they are not met, a major failure is enough for these funds to no longer come to Albania for 20 years. Those institutional investors want time, they want to know the time. So, you cannot give them a project for a building in Tirana and then the project takes ten years to be realized, it does not work", said Rama.

The architects will be responsible for the projects until the building is delivered. But for this, Edi Rama thinks he needs the help and experience of foreigners, as Albanian architects are not yet up to the level of quality he demands.

"If we manage to realize those projects faithfully, Albania will become one of the most important destinations in Europe for architectural tourism. One building made Bilbao and changed the economy of that city. If we manage to realize the projects that we have put in process, I tell you, it will be an extraordinary thing for culture, for heritage, but also for our economy. And to return to the subject of the meeting, I think that the most appropriate thing is for you to get special contacts with the group of these financial architects I am calling them, who really have a great potential to develop and help in the development of your projects."

The government will force Albanian builders to monitor construction sites with cameras 24 hours a day, while large companies with over 100 employees must establish innovation centers.

Finally, Rama once again reminded the blacklist of all those who do not meet the conditions and violate the law, that they will no longer have access to construction permits./ a2


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