Appendix 10 Cost Estimates

Volume III Supporting Report

10.1 MP Sewer Construction Cost...... A10 - 1 10.1.1 Consideration of Conversion ratio from Japan cost to Albanian cost...... A10 - 1 10.1.2 Trunk Sewer Cost Estimation...... A10 - 4 10.1.3 Cost Comparison of B-3routes ...... A10 - 10 10.2 FS Sewer Construction Cost...... A10 - 14 10.2.1 Cost Estimation of Feasibility study area ...... A10 - 14 10.2.2 Cost of Trunk sewer No.3...... A10 - 16 10.2.3 Cost of Open Cut ...... A10 - 19 10.2.4 Basic Cost Data in Albania & EU ...... A10 - 22 10.3 STP and PS Cost Estimate for MP ...... A10 - 30 10.3.1 Project Cost Estimate in each year FC and LC...... A10 - 30 10.3.2 Construction Cost of STP, PS...... A10 - 33 10.3.3 MP STP Direct Construction Cost (personnel and others for LC)...... A10 - 36 10.3.4 Construction Cost of STP and PS by phase and FC and LC ...... A10 - 40 10.3.5 MP-Kashar PS Cost...... A10 - 42 10.3.6 MP- (1 stage) Kashar STP Cost...... A10 - 43 10.3.7 MP- Kashar STP Cost...... A10 - 44 10.3.8 MP- Kamze PS Cost...... A10 - 45 10.3.9 MP- Berxulle STP Cost ...... A10 - 46 10.4 FS STP and PS Construction Cost...... A10 - 47 10.4.1 Basic of Construction Cost Estimate (FS)...... A10 - 47 10.4.2 Cost Estimate for Civil and Architectural Works of Kashar STP...... A10 - 48 10.4.3 Cost Estimate for each Works and Others ...... A10 - 49 10.4.4 Mechanical and Electrical Equipment Cost (FS)...... A10 - 50 10.4.5 Total Construction Cost of Kashar STP...... A10 - 50 10.4.6 Piles for Foundation (FS) ...... A10 - 51 10.4.7 STP Major Civil Structures and Architecture Qualities...... A10 - 52 10.5 MP O&M Cost...... A10 - 61 10.5.1 Sludge Disposal Cost for MP ...... A10 - 61 10.5.2 MP Organization Chart for O&M ...... A10 - 62 10.5.3 O&M Personnel Cost for Master Plan ...... A10 - 63 10.5.4 Cleaning of Sewer (MP) ...... A10 - 64 10.5.5 Total Personnel and Cost of Sewer Operation and Maintenance (MP) ...... A10 - 66 10.5.6 Total of Personnel and Cost of Sewer Operation and Maintenance ...... A10 - 67 10.5.7 OM Cost Basis...... A10 - 68 10.5.8 Power Consumption ...... A10 - 69 10.5.9 MP O&M Cost Details ...... A10 - 70 10.6 FS O&M Cost...... A10 - 72 10.6.1 Sludge Disposal Cost (at FS stage)...... A10 - 72 Volume III Supporting Report

10.6.2 FS Organizational Chart of O&M ...... A10 - 73 10.6.3 O&M Personnel Cost for Feasibility Study...... A10 - 74 10.6.4 Basis of Operation and Maintenance Cost Estimate (FS)...... A10 - 75 10.6.5 STP Operation and Maintenance Costs for FS ...... A10 - 76 10.6.6 Total of Personnel and Cost of Sewer O&M (FS)...... A10 - 78 10.6.7 Total O&M Cost for FS ...... A10 - 79

Volume III Supporting Report

10.1 MP Sewer Construction Cost

10.1.1 Consideration of conversion ratio from Japan cost to Albania cost

Construction cost of sewer pipe excluding pipe material costs base on the cost estimation standard of JSWA(Japan Sewage Water Association) (1) Open cut method Calculation of conversion ration about dia.600-900mm pipes Average Setting figure Personal expenditure ratio set about open cut method(φ600mm-) 39.7% 40.0% Other cost 60.0%

Sewer pipe construction cost example in Kamza (L=3000m, dia.600mm- , excavation depth 2.5m-6m) Average cost 280 US$/m 33,000 Yen/m

Estimated cost from the above example 88,435 Yen/m Covering depth as 1.5-4.0m Other additional cost ratio 70% Total = 150,340 Yen/m

Pipe material prices According to materials obtained at an exhibition in Tirana plastic pipe 630mm diameter 45 Euro/m ⇒ 6,300 Yen/m PVC pipe in Japan 600mm（outer dia 630mm) 21,000 Yen/m conversion ratio to Albanian price 30.0% ⇒ 30.0%

Total Japanese cost 171,340 Yen/m

conversion ratio to Albanian price 19.3% ⇒ 20.0%

Construction cost as Φ600mm-900mm, covering depth of 2.5-6.0m by open cut method Personal expenditure ratio= 25%

Japan Albania(Kamza) Conversion Construction 150,340 Yen/m ratio contents of cost composition pipe 21,000 Yen/m Japan⇒Albania Total 171,340 Yen/m 33,000 Yen/m 100% 0.193 20% personal 60,100 Yen/m 15000 Yen/m 45% 0.250 25% others 90,240 Yen/m 11,700 Yen/m 35% 0.130 12% pipe 21,000 Yen/m 6,300 Yen/m 19% 0.300 30%

Separated sewer Calculation with pipe diameter Φ200mm－500mm Average Setting figure Personal expenditure ratio of open cut method（200mm-500mm） 39.5% 40.0% Other cost 60.0%

Albanian Personal Expenditure=Japan Cost x 40% x 25%

A10 - 1 Volume III Supporting Report

Converted Pipe DiameterCovering Construction cost Personal expenditure Personal personal Inner Outerdepth Incl.pesonal Excl. personal Ratio note expenditure expenditure mm mm m Yen/m Yen/m ％ Yen/m Separated sewer 250 306 1.5 41,085 28,394 12,691 30.9% Average cost 3170 250 306 2.0 47,157 30,511 16,646 35.3% 34,701 4,160 250 306 2.5 56,128 33,875 22,253 39.6% 5560 250 306 3.0 57,436 34,235 23,201 40.4% 5800 250 306 3.5 64,566 37,043 27,523 42.6% 6880 250 306 4.0 80,344 44,146 36,197 45.1% 9050 300 306 1.5 42,761 29,401 13,360 31.2% Average cost 3340 300 306 2.0 49,470 31,642 17,828 36.0% 35,781 4,460 300 306 2.5 58,440 35,006 23,435 40.1% 5860 300 306 3.0 60,039 35,368 24,671 41.1% 6170 300 306 3.5 66,623 38,082 28,541 42.8% 7140 300 306 4.0 82,401 45,186 37,216 45.2% 9300 400 470 1.5 46,188 31,598 14,590 31.6% Average cost 3650 400 470 2.0 53,533 33,963 19,570 36.6% 38,067 4,890 400 470 2.5 62,504 37,327 25,177 40.3% 6290 400 470 3.0 63,688 37,536 26,152 41.1% 6540 400 470 3.5 71,363 40,438 30,926 43.3% 7730 400 470 4.0 87,141 47,541 39,601 45.4% 9900 500 584 1.5 52,612 35,556 17,056 32.4% Average cost 4260 500 584 2.0 62,219 39,045 23,174 37.2% 43,384 5,790 500 584 2.5 68,981 41,121 27,861 40.4% 6970 500 584 3.0 71,851 42,308 29,544 41.1% 7390 500 584 3.5 88,175 49,505 38,670 43.9% 9670 500 584 4.0 96,578 52,768 43,810 45.4% 10950 Mixed sewer 600 630 1.5 56,250 38,216 18,033 32.1% 4510 600 630 2.0 66,493 41,829 24,664 37.1% 6170 600 630 2.5 73,255 43,905 29,351 40.1% Average cost 7340 600 630 3.0 76,269 45,032 31,238 41.0% 46,133 7,810 600 630 3.5 92,593 52,229 40,364 43.6% 10090 600 630 4.0 101,542 55,586 45,956 45.3% 11490 800 932 1.5 65,062 44,434 20,628 31.7% 5160 800 932 2.0 75,941 48,171 27,770 36.6% 6940 800 932 2.5 83,976 50,495 33,481 39.9% Average cost 8370 800 932 3.0 85,934 51,222 34,713 40.4% 52,498 8,680 800 932 3.5 103,349 58,607 44,743 43.3% 11190 800 932 4.0 112,844 62,058 50,786 45.0% 12700 900 1050 1.5 76,030 50,722 25,308 33.3% 6330 900 1050 2.0 84,065 53,047 31,019 36.9% 7750 900 1050 2.5 93,738 56,440 37,298 39.8% Average cost 9320 900 1050 3.0 104,235 61,309 42,925 41.2% 59,296 10,730 900 1050 3.5 114,275 64,854 49,421 43.2% 12360 900 1050 4.0 125,979 69,402 56,577 44.9% 14140

A10 - 2 Volume III Supporting Report

(2) Pipe Jacking method

Construction cost（103Yen/m) Ratio of personal Incl. personal Excl. personal Personal expenditure expenditure expenditure expenditure estimation 500mm 127.2 58 69.2 54% 600mm 133.9 61.9 72.0 54% 700mm 152.6 66.7 85.9 56% Average 55%

Personal expenditure 70% of Japan cost

Diameterconstruction cost （103Yen/m) conversion ratio 500mm 106.44 Yen/m 84% 600mm 112.3 Yen/m 84% 700mm 126.83 Yen/m 83%

Average conversion ratio 84%

Albanian Personal Expense=Japan Cost x 55% x 25%

(3) Shield method Consideration of conversion ratio of shield tunneling construction cost based on technical materials of Nihon Suido Consultants Co.,Ltd Cost Ratio Unit cost per meter personal personal equipments personal equipments Dia. Total equipments cost Total expenditure expenditure cost expenditure cost set set set 103Yen/m 103Yen/m 103Yen/m 1,350 553,947,253 243,767,457 310,179,796 44.0% 56.0% 618 272 346 1,500 553,947,253 243,767,457 310,179,796 44.0% 56.0% 680 299 381 1,650 553,947,253 243,767,457 310,179,796 44.0% 56.0% 698 307 391 1,800 553,947,253 243,767,457 310,179,796 44.0% 56.0% 723 318 405 2,000 553,947,253 243,767,457 310,179,796 44.0% 56.0% 768 338 430 2,200 553,947,253 243,767,457 310,179,796 44.0% 56.0% 800 352 448

Personal expenditure 70% of Japan cost

Unit cost per meter share of personal Dia equipments cost Total ratio personal expenditure expenditure 103Yen/m 103Yen/m 103Yen/m %% 1,350 228 346 574 92.8% 39.7% 1,500 250 381 631 92.8% 39.7% 1,650 257 391 648 92.8% 39.7% 1,800 266 405 671 92.8% 39.7% 2,000 283 430 713 92.8% 39.7% 2,200 295 448 743 92.8% 39.7%

Albanian Personal Expense=Japan Cost x 44% x 25%

A10 - 3 Volume III Supporting Report

10.1.2 Trunk sewer cost estimation

Alternatives A , B-1, B-2 , B-3, B-4

A10 - 4 Volume III Supporting Report

Alternative A Exchange 115.74 Yen/US$ Trunk Sewer (Sewage only) 310 L/d Method:1Shield 2: Jacking 3 Open 107.23 Lek/US$ Pipe Cumulative DMFlow Pipe Length Unit cost for cost per line cost per line Area Division Pipe No. Diameter Method Population (m3/d) (m) construction 106 Yen 103 US$ (mm) Greater Trunk sewer -1st 1 82,262 25,501 900 214 2 Jacking 54 116 1,002 Tirana 2 257,654 79,873 1350 188.7 2 Jacking 62.2 117 1,011 3 5,192 1,610 1500 910 1 Shield 101.6 925 7,992 4 2,293 711 1500 495.5 1 Shield 101.6 503 4,346 5 11,694 3,625 1500 189.2 1 Shield 101.6 192 1,659 6 302,558 93,793 2000 585.7 1 Shield 112.1 657 5,677 7 11,306 3,505 2000 1156.2 1 Shield 112.1 1,296 11,198 9 32,050 9,936 2200 1132.5 1 Shield 117.8 1,334 11,526 Subtotal 705,010 218,553 4,872 5,140 44,411 Trunk sewer -2nd 8 101,368 31,424 1350 1130.8 1 Shield 99.5 1,125 9,720 10 19,821 6,145 500 927.2 2 Jacking 35.7 331 2,860 14 44,502 13,796 1350 1096.4 1 Shield 99.5 1,091 9,426 15 17,911 5,552 1350 727.1 1 Shield 99.5 723 6,247 16 2,680 831 1350 1473.2 1 Shield 99.5 1,466 12,666 17 44,379 13,758 1350 821.3 1 Shield 99.5 817 7,059 Subtotal 230,661 71,505 6,176 5,553 47,978 Trunk sewer -3rd 11 1,253 388 2200 1444 1 Shield 117.8 1,701 14,697 12 6,008 1,862 2200 1867.5 1 Shield 117.8 2,200 19,008 13 3,351 1,039 2200 2549 1 Shield 117.8 3,003 25,946 18 5,652 1,752 1350 678 1 Shield 99.5 675 5,832 Subtotal 16,264 5,042 6,539 7,579 65,483 Total 951,935 295,100 17,587 18,272 157,872

A10 - 5 Volume III Supporting Report

Alternative B-1 Exchange 115.74 Yen/US$ Trunk Sewer (Sewage only) 310 L/d Method:1Shield 2: Jacking 3 Open 107.23 Lek/US$ Pipe Planned DMFlow Pipe Length Unit cost for cost per line cost per line Area Division Pipe No. Area Diameter Method Population (m3/d) (m) construction 106 Yen 103 US$ (mm) Greater Trunk sewer -1st 1 305.972 82,262 25,501 900 214 2 Jacking 54 116 1,002 Tirana 2 1770.41 257,654 79,873 1350 188.7 2 Jacking 62.2 117 1,011 3 51.92 5,192 1,610 1500 910 1 Shield 101.6 925 7,992 4 143.5 2,293 711 1500 495.5 1 Shield 101.6 503 4,346 5 33.3 11,694 3,625 1500 189.2 1 Shield 101.6 192 1,659 6 1420.7 302,558 93,793 2000 585.7 1 Shield 112.1 657 5,677 7 169 11,307 3,505 2000 1156.2 1 Shield 112.1 1,296 11,198 9 427.575 32,863 10,187 2200 854 1 Shield 117.8 1,006 8,692 10 448.2 7,162 2,220 2200 1511 1 Shield 117.8 1,780 15,379 11(STP) 372.9 15,959 4,947 Subtotal 728,944 225,973 6,104 6,592 56,956 Trunk sewer -2nd 8 1102 101,368 31,424 1350 1130.8 1 Shield 99.5 1,125 9,720

Subtotal 101,368 31,424 1,131 1,125 9,720 Trunk sewer -3rd 14 652.7 44,502 13,796 1350 1096.4 1 Shield 99.5 1,091 9,426 15 262.7 17,911 5,552 1350 727.1 1 Shield 99.5 723 6,247 16 39.3 2,680 831 1350 1473.2 1 Shield 99.5 1,466 12,666 17 650.9 44,379 13,758 1350 821.3 1 Shield 99.5 817 7,059 12 - - - 0 13 - - - 0 18(Pri-K) 5,652 1,752 1350 678 1 Shield 99.5 675 5,832 19 5,898 1,828 20(STP) 48,667 15,087 Subtotal 169,689 52,604 4,796 4,772 41,230 Total 1,000,000 310,000 12,032 12,489 107,906

A10 - 6 Volume III Supporting Report

Alternative B-2 Exchange 115.74 Yen/US$ Trunk Sewer (Sewage only) 310 L/d Method:1Shield 2: Jacking 3 Open 107.23 Lek/US$ Pipe Planned DMFlow Pipe Length Unit cost for cost per line cost per line Area Division Pipe No. Area Diameter Method Population (m3/d) (m) construction 106 Yen 103 US$ (mm) Greater Trunk sewer -1st 1 305.972 82,262 25,501 900 214 2 Jacking 54 116 1,002 Tirana 2 1770.41 257,654 79,873 1350 188.7 2 Jacking 62.2 117 1,011 3 51.92 5,192 1,610 1500 910 1 Shield 101.6 925 7,992 4 143.5 2,293 711 1500 495.5 1 Shield 101.6 503 4,346 5 33.3 11,694 3,625 1500 189.2 1 Shield 101.6 192 1,659 6 1420.7 302,558 93,793 2000 585.7 1 Shield 112.1 657 5,677 7 169 11,307 3,505 2000 1156.2 1 Shield 112.1 1,296 11,198 9 427.575 32,863 10,187 2200 1275 1 Shield 117.8 1,502 12,977 10 821.1 23,121 7,168 2200 1511 1 Shield 117.8 1,780 15,379 11(STP) 0 0 0 Subtotal 728,944 225,973 6,525 7,088 61,241 Trunk sewer -2nd 8 1102 101,368 31,424 1350 1130.8 1 Shield 99.5 1,125 9,720

A10 - 7 Volume III Supporting Report

Alternative B-3 Exchange 115.74 Yen/US$ Trunk Sewer (Sewage only) 310 L/d Method:1Shield 2: Jacking 3 Open 107.23 Lek/US$ Pipe Present Planned DMFlow Pipe Length Unit cost for cost per line cost per line Area Division Pipe No. Area Diameter Method Population Population (m3/d) (m) construction 106 Yen 103 US$ (mm) Greater Trunk sewer -1st 1 306.0 82,262 25,501 900 214 2 Jacking 54 116 1,002 Tirana 2 1770.4 257,654 79,873 1350 188.7 2 Jacking 62.2 117 1,011 3 51.9 5,192 1,610 1500 910 1 Shield 101.6 925 7,992 4 143.5 2,293 711 2200 1880 1 Shield 117.8 2,215 19,138 5 33.3 11,694 3,625 1500 995 1 Shield 101.6 1,011 8,735 6 1420.7 302,558 93,793 1500 413 1 Shield 101.6 420 3,629 7 169.0 11,307 3,505 1350 586 1 Shield 99.5 583 5,037 9 427.6 32,863 10,187 1350 1130 1 Shield 99.5 1,124 9,711 10 456.3 5,909 1,832 1350 750 1 Shield 99.5 746 6,445 11(STP) 206.5 17,212 5,336

11(圧送） 800 2750 3 Open 17.6 484 4,182 Subtotal 728,944 225,973 9,817 7,741 66,882 Trunk sewer -2nd 8 1102 101,368 31,424 1350 1130.8 1 Shield 99.5 1,125 9,720

Subtotal 101,368 31,424 1,131 1,125 9,720 Trunk sewer -3rd 14 652.7 44,502 13,796 1350 1096.4 1 Shield 99.5 1,091 9,426 15 262.7 17,911 5,552 1350 727.1 1 Shield 99.5 723 6,247 16 39.3 2,680 831 1350 1473.2 1 Shield 99.5 1,466 12,666 17 650.9 44,379 13,758 1350 821.3 1 Shield 99.5 817 7,059 12 - - - 0 13 - - - 0 18(Pri-K) 5,652 1,752 1350 678 1 Shield 99.5 675 5,832 19 5,898 1,828 1350 856 1 Shield 99.5 852 7,361 20(STP) 48,667 15,087 Subtotal 169,689 52,604 5,653 5,624 48,591 Total 1,000,000 310,000 16,600 14,490 125,193

A10 - 8 Volume III Supporting Report

Alternative B-4 Exchange 115.74 Yen/US$ Trunk Sewer (Sewage only) 310 L/d Method:1Shield 2: Jacking 3 Open 107.23 Lek/US$ Pipe Pipe Planned DMFlow Unit cost for cost per line cost per line Area Division Pipe No. Area Diameter Length Method Population (m3/d) construction 106 Yen 103 US$ (mm) (m) Greater Trunk sewer -1st 1 305.972 82,262 25,501 900 214 2 Jacking 54 116 1,002 Tirana 2 1770.41 257,654 79,873 1350 188.7 2 Jacking 62.2 117 1,011 3 51.92 5,192 1,610 1500 1300 1 Shield 101.6 1,321 11,414 4 143.5 2,293 711 1350 1880 1 Shield 99.5 1,871 16,166 5 33.3 11,694 3,625 1500 350 1 Shield 101.6 356 3,076 6 1420.7 302,558 93,793 1500 350 1 Shield 101.6 356 3,076 7 169 11,307 3,505 1350 586 1 Shield 99.5 583 5,037 12 - - - 2000 1600 1 Shield 0 13 - - - 0 Subtotal 672,960 208,618 6,469 4,720 40,782 Trunk sewer -2nd 8 1102 101,368 31,424 1350 1130.8 1 Shield 99.5 1,125 9,720 9 427.575 32,863 10,187 1350 854 1 Shield 99.5 850 7,344 10 614.6 5,909 1,832 1350 1511 1 Shield 99.5 1,503 12,986 11(STP) 206.5 17,212 5,336 Subtotal 157,352 48,779 3,496 3,478 30,050 Trunk sewer -3rd 14 652.7 44,502 13,796 1350 1096.4 1 Shield 99.5 1,091 9,426 15 262.7 17,911 5,552 1350 727.1 1 Shield 99.5 723 6,247 16 39.3 2,680 831 1350 1473.2 1 Shield 99.5 1,466 12,666 17 650.9 44,379 13,758 1350 821.3 1 Shield 99.5 817 7,059 18(Pri-K) 5,652 1,752 1350 678 1 Shield 99.5 675 5,832 19 5,898 1,828 20(STP) 48,667 15,087 Subtotal 169,689 52,604 4,796 4,772 41,230 Total 1,000,000 310,000 14,761 12,970 112,062

A10 - 9 10.1.3 Cost comparison of B-3 routes

Comparative routes B-3a, B-3b, B-3c, B-3d

A10 - 10 (1) Comparison of MP area (1-3 phases total) Japan Price (Yen) Cost comparison between alternatives of B-3 Trunk sewer Main Sewer Branch Sewer Pumping Station Total Length Construction O&M Construction O&M Construction O&M Flow Construction O&M Construction O&M No. (m) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (m3/s) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) B-3 16,600 14,490 0.50 19,341 3.33 14,972 4.67 11(PS) 0.8 782 19.0 50,050 42.9 18 0.59 466 15.4 B-3(a) 18,525 9,807 0.56 19,341 3.33 14972 4.67 10b(PS) 0.8 782 19.0 45,713 87.6 STP 4.23 811 60.0 B-3(b) 17,966 5,375 0.55 19,341 3.33 14972 4.67 8-1 0.52 466 14.1 43,148 109.0 4-1 3.43 1,747 51.9 18-1 0.59 466 15.4 10b(PS) 0.8 782 19.0 B-3(c) 18,026 6,445 0.55 19,341 3.33 14972 4.67 10b(PS) 4.23 2,292 60.0 43,982 98.1 8-1 0.52 466 14.1 18-1 0.59 466 15.4 B-3(d) 21,619 8,996 0.66 19,341 3.33 14972 4.67 10b(PS) 2.47 741 41.4 44,516 65.5 18-1 0.59 466 15.4

284,984 Main sewer length= 109,570 m Branch sewer length= 153,796 m Albanian Price (Yen) Trunk sewer Main Sewer Branch Sewer Pumping Station Total Length Construction O&M Construction O&M Construction O&M Flow Construction O&M Construction O&M No. (m) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (m3/s) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) B-3 16,600 12,248 0.09 10,933 0.60 2,994 0.85 11(PS) 0.8 625 3.8 27,173 8.4 18 0.59 373 3.1 B-3(a) 18,525 5,447 0.10 10,933 0.60 2994.4 0.85 10b(PS) 0.8 625 3.8 20,649 17.4 4.23 649 12.0 B-3(b) 17,966 1,612 0.10 10,933 0.60 2994.4 0.85 8-1 0.52 373 2.8 18,307 21.6 4-1 3.43 1,397 10.4 18-1 0.59 373 3.1 10b(PS) 0.8 625 3.8 B-3(c) 18,026 1,645 0.10 10,933 0.60 2994.4 0.85 10b(PS) 4.23 1,834 12.0 18,151 19.7 8-1 0.52 373 3.1 18-1 0.59 373 3.1 B-3(d) 21,619 4,687 0.12 10,933 0.60 2994.4 0.85 10b(PS) 2.47 593 8.3 19,580 12.9 18-1 0.59 373 3.1

B-3(a) 18,525 5,044 0.09 10,124 0.56 2,773 0.78 10b(PS) 0.8 579 3.5 19,121 16.1

4.23 601 11.1

B-3(b) 17,966 1,493 0.09 10,124 0.56 2,773 0.78 8-1 0.52 345 2.6 16,953 20.0 4-1 3.43 1,294 9.6 18-1 0.59 345 2.9 10b(PS) 0.8 579 3.5 B-3(c) 18,026 1,523 0.09 10,124 0.56 2,773 0.78 10b(PS) 4.23 1,698 11.1 16,808 18.3 8-1 0.52 345 2.9 18-1 0.59 345 2.9 B-3(d) 20,763 4,340 0.11 10,124 0.56 2,773 0.78 10b(PS) 2.47 549 7.7 18,131 12.0 18-1 0.59 345 2.9

A10 - 11 (2) Trunk sewer comparison in MP area (1-3 phases total) Japan Price (Yen) Cost comparison between alternatives of B-3 Trunk sewer Main Sewer Branch Sewer Pumping Station Total Length Construction O&M Construction O&M Construction O&M Flow Construction O&M Construction O&M No. (m) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (m3/s) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) B-3 16,600 14,490 0.50 11(PS) 0.8 782 19.0 15,737 34.9 18 0.59 466 15.4 B-3(a) 18,525 9,807 0.56 10b(PS) 0.8 782 19.0 11,400 79.6 4.23 811 60.0 B-3(b) 17,966 5,375 0.55 8-1 0.52 466 14.1 8,835 101.0 4-1 3.43 1,747 51.9 18-1 0.59 466 15.4 10b(PS) 0.8 782 19.0 B-3(c) 18,026 6,445 0.55 10b(PS) 4.23 2,292 60.0 9,669 90.1 8-1 0.52 466 14.1 18-1 0.59 466 15.4 B-3(d) 21,619 8,996 0.66 10b(PS) 2.47 741 41.4 10,203 57.5 18-1 0.59 466 15.4

284,984 Main sewer length= 109,570 m Branch sewer length= 153,796 m 1 yen= 0.926 Lek Albanian Price (Yen) Trunk sewer Main Sewer Branch Sewer Pumping Station Total Length Construction O&M Construction O&M Construction O&M Flow Construction O&M Construction O&M No. (m) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (m3/s) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) B-3 16,600 12,248 0.09 11(PS) 0.8 625 3.8 13,246 7.0 18 0.59 373 3.1 B-3(a) 18,525 5,447 0.10 10b(PS) 0.8 625 3.8 6,721 15.9 4.23 649 12.0 B-3(b) 17,966 1,612 0.10 8-1 0.52 373 2.8 4,380 20.2 4-1 3.43 1,397 10.4 18-1 0.59 373 3.1 10b(PS) 0.8 625 3.8 B-3(c) 18,026 1,645 0.10 10b(PS) 4.23 1,834 12.0 4,224 18.3 8-1 0.52 373 3.1 18-1 0.59 373 3.1 B-3(d) 21,619 4,687 0.12 10b(PS) 2.47 593 8.3 5,652 11.5 18-1 0.59 373 3.1

Albanian Price (Lek) Trunk sewer Main Sewer Branch Sewer Pumping Station Total Length Construction O&M Construction O&M Construction O&M Flow Construction O&M Construction O&M No. (m) (106 Lek) (106 Lek/yr) (106 Lek) (106 Lek/yr) (106 Lek) (106 Lek/yr) (m3/s) (106 Lek) (106 Lek/yr) (106 Lek) (106 Lek/yr) B-3 16,600 11,342 0.08 11(PS) 0.8 579 3.5 12,266 6.5 18 0.59 345 2.9 B-3(a) 18,525 5,044 0.09 10b(PS) 0.8 579 3.5 6,569 17.6 18 0.59 345 2.9 STP 4.23 601 11.1 B-3(b) 17,966 1,493 0.09 8-1 0.52 345 2.6 4,056 18.7 4-1 3.43 1,294 9.6 18-1 0.59 345 2.9 10b(PS) 0.8 579 3.5 B-3(c) 18,026 1,523 0.09 10b(PS) 4.23 1,698 11.1 3,911 16.9 8-1 0.52 345 2.9 18-1 0.59 345 2.9 B-3(d) 20,763 4,340 0.11 10b(PS) 2.47 549 7.7 5,234 10.6 18-1 0.59 345 2.9

A10 - 12 (3) 1st phase area comparison Japan Price (Yen) Cost comparison between alternatives of B-3 Trunk sewer Main Sewer Branch sewer Pumping Station Total Length Construction Repair O&M Construction Repair O&M Construction Repair O&M Flow Construction O&M Construction Repair(Pipe) O&M(Pipe) O&M+R(Pipe) O&M+R(Total) No. (m) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (m3/s) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen/yr) (106 Yen/yr) B-3 9,817 7,741 0.64 0.30 8,765 2.4 1.1 7,374 4.8 2.3 11(PS) 0.8 782 19.0 24,662 7.9 3.7 11.6 30.6 B-3(a) 10,766 6,740 0.70 0.33 8,765 2.4 1.1 7,374.0 4.8 2.3 10b(PS) 0.8 782 19.0 24,472 8.0 3.7 11.7 90.7 STP 4.23 811 60.0 B-3(b) 10,716 3,848 0.70 0.33 8,765 2.4 1.1 7,374.0 4.8 2.3 4-1 3.43 1,747 51.9 21,734 8.0 3.7 11.7 63.6 10b(PS) 0.8 782 19.0 B-3(c) 10,776 4,918 0.70 0.33 8,765 2.4 1.1 7,374.0 4.8 2.3 10b(PS) 4.23 2,292 60.0 23,349 8.0 3.7 11.7 71.7 B-3(d) 13,398 6,824 0.87 0.41 8,765 2.4 1.1 7,374.0 4.8 2.3 10b(PS) 0.8 741 19.0 23,704 8.1 3.8 11.9 30.9 O&M cost (inspection, cleaning): 0.0304 103 yen/m/year Main sewer 37,280 m Repairing cost 0.0649 103 yen/m/year Branch sewer 74,470 m 8,126 3,801 0 0.0953 103 yen/m/year Trunk sewer 13,398 m 11,927 *excluding personal expenditure 125,148 m Construction O&M Pipe O&M,Repair cost Pumping ST conversion Albanian Price Estimation (Yen) Cost comparison between alternatives of B-3conversion ratio 100% ratio 80% 20% Trunk sewer Main SewerBranch sewer Pumping Station Total Length Construction Repair O&M Construction Repair O&M Construction Repair O&M Flow Construction O&M Construction Repair(Pipe) O&M(Pipe) O&M+R(Pipe) O&M+R(Total) 建設費 No. (m) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (m3/s) (106 Yen) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen/yr) (106 Yen/yr) 比率 B-3 9,817 4,939 0.64 0.30 5,946 2.42 1.13 1,474.8 4.84 2.26 11(PS) 0.8 625 3.8 12,984 7.9 3.7 11.6 15.4 1.00 B-3(a) 10,766 3,810 0.70 0.33 5,946 2.42 1.13 1,475 4.84 2.26 10b(PS) 0.8 625 3.8 12,504 8.0 3.7 11.7 27.5 0.96 4.23 649 12.0 B-3(b) 10,716 1,172 0.70 0.33 5,946 2.42 1.13 1,475 4.84 2.26 4-1 3.43 1,397 10.4 9,989 8.0 3.7 11.7 22.1 0.77 10b(PS) 0.8 625 3.8 B-3(c) 10,776 1,205 0.70 0.33 5,946 2.42 1.13 1,475 4.84 2.26 10b(PS) 4.23 1,834 12.0 10,459 8.0 3.7 11.7 23.7 0.81 B-3(d) 13,398 3,781 0.87 0.41 5,946 2.42 1.13 1,475 4.84 2.26 10b(PS) 0.8 593 3.8 11,794 8.1 3.8 11.9 15.7 0.91 O&M cost (inspection, cleaning): 0.0055 103 yen/year/m Personal expenditure ratio 90.1 ％ personal expenditure equivarent 0.027 103 yen/year/m convert ratio to Albanian cost 25% coverted personal expenditure 0.007 103 yen/year/m other cost 0.003 103 yen/year/m converted O&M cost 0.010 103 yen/year/m

Albanian Price Estimation (Lek) Cost comparison between alternatives of B-3 1 yen= 0.926 Lek Trunk sewer Main Sewer Branch sewer Pumping Station Total Length Construction Repair O&M Construction Repair O&M Construction Repair O&M Flow Construction O&M Construction Repair(Pipe) O&M(Pipe) O&M+R(Pipe) O&M+R(Total) 建設費 No. (m) (106 Lek) (106 Yen/yr) (106 Lek/yr) (106 Lek) (106 Yen/yr) (106 Lek/yr) (106 Lek) (106 Yen/yr) (106 Lek/yr) (m3/s) (106 Lek) (106 Yen/yr) (106 Yen) (106 Yen/yr) (106 Yen/yr) (106 Yen/yr) (106 Yen/yr) 比率 B-3 9,817 4,574 0.59 0.28 5,506 2.24 1.05 1,365.7 4.48 2.09 11(PS) 0.8 579 3.5 12,024 7.3 3.4 10.7 14.3 1.00 B-3(a) 10,766 3,528 0.65 0.30 5,506 2.24 1.05 1,365.7 4.48 2.09 10b(PS) 0.8 579 3.5 11,579 7.4 3.4 10.8 25.4 0.96 4.23 601 11.1 B-3(b) 10,716 1,085 0.64 0.30 5,506 2.24 1.05 1,365.7 4.48 2.09 4-1 3.43 1,294 9.6 9,250 7.4 3.4 10.8 20.4 0.77 10b(PS) 0.8 579 3.5 B-3(c) 10,776 1,116 0.65 0.30 5,506 2.24 1.05 1,365.7 4.48 2.09 10b(PS) 4.23 1,698 11.1 9,685 7.4 3.4 10.8 21.9 0.81 B-3(d) 13,398 3,501 0.81 0.38 5,506 2.24 1.05 1,365.7 4.48 2.09 10b(PS) 2.47 549 3.5 10,922 7.5 3.5 11.0 14.6 0.91 O&M cost (inspection, cleaning): 0.0055 103 yen/year/m

A10 - 13 Volume IIII Supporting Report

10.2 FS Sewer Construction Cost

10.2.1 Cost estimation of Fesibility study area

(1) Construction schedule and annual investment Pipe Cost Personal No. District 2010 2011 2012 2013 length (106Lek) expenditure Trunk 1 Tirana(Lana-N) 76 41 5.3 1.0 2 Tirana(Lana-S) 75 47 4.7 1.0 3 Tirana-W 4003 1,951 193.1 0.3 0.3 0.3 0.1 Total 585 585 585 283 Main 1 Tirana(Lana-N) 90 1.7 0.12 0.5 0.5 2 Tirana(Lana-S) 130 3.5 0.24 0.5 0.5 3 Tirana-W 130 3.5 0.24 0.3 0.3 0.4 10 Kashar(Yz,Mez) 1000 9.7 0.59 0.5 0.5 Total 6643 Branch 1 Tirana(Lana-N) 5,000 48.6 2.97 0.5 0.5 2 Tirana(Lana-S) 10,000 97.2 5.94 0.5 0.5 3 Tirana-W 5,000 48.6 2.97 0.3 0.3 0.4 10 Kashar(Yz,Mez) 7600 73.9 4.51 0.5 0.5 Total 52 52 92 73

Trunk sewer FC Pers-exp 57.94 57.94 57.94 29.31 Others 527.06 527.06 527.06 253.69 Main sewer LC Pers-exp 0.37 0.37 0.27 0.18 Others 5.63 5.63 3.73 2.82 Branch sewer LC Pers-exp 3.15 3.15 5.64 4.45 Others 48.85 48.85 86.36 68.55 Pers-exp: Personal Expenditure

2010 2011 2012 2013 Total Trunk sewer 1200.9 1200.9 1200.9 551.3 Pipe Main sewer 539 539 162 110 length Branch sewer 5300 5300 9500 7500 7039.9 7039.9 10862.9 8161.3 33104

A10 - 14 Volume III Supporting Report

(2) Contents of construction cost of the feasibility study area 106Lek 2010 2011 2012 2013 FC LC Total FC LC Total FC LC Total FC LC Total

Trunk Sewer 585.0 585.0 585.0 585.0 585.0 585.0 283.0 283.0

Main Sewer 6.0 6.0 6.0 6.0 4.0 4.0 3.0 3.0

Branch Sewer 52.0 52.0 52.0 52.0 92.0 92.0 73.0 73.0

Total(Lek) 585.0 58.0 643.0 585.0 58.0 643.0 585.0 96.0 681.0 283.0 76.0 359.0

FC:Foreign cost LC: Local cost 106Lek 2010 2011 2012 2013 Pers-exp Others Total Pers-exp Others Total Pers-exp Others Total Pers-exp Others Total Trunk Sewer 57.9 527.1 585.0 57.9 527.1 585.0 57.9 527.1 585.0 29.3 253.7 283.0

Main Sewer 0.4 5.6 6.0 0.4 5.6 6.0 0.3 3.7 4.0 0.2 2.8 3.0

Branch Sewer 3.2 48.9 52.0 3.2 48.9 52.0 5.6 86.4 92.0 4.5 68.6 73.0

Total(Lek) 61.5 581.5 643.0 61.5 581.5 643.0 63.9 617.2 681.0 33.9 325.1 359.0 Pers-exp: Personal Expenditure Exchange rate 0.836 Lek/yen

A10 - 15 Volume III Supporting Report

10.2.2 Cost of Trunk sewer No.3

(1) Construction cost of Trunk sewer No.3 Convert coefficient to actual cost 0.8

Digging Volume of Volume of Estimated Cover Depth of shaft Outer Length Calculated construction cost area digged Diameter digged solid actual cost No. depth diameter Unit cost Starting Receiving (center interval) 20 Shaft Jacking Total Total of shaft solid of jacking mm m m2m3mmmm ｍ m3 106 Lek 106 Lek/m 106 Lek 106 Lek 106 Lek 1 6.79 9.5 12.0 114.0 900 1080 76 75 4.6 0.608 46.2 50.8 40.6 2 6.54 9.5 12.0 114.0 1350 1600 75 158 4.6 0.728 54.6 59.2 47.3 3 9.94 13.0 31.0 403.0 1500 1780 100 260 12.1 0.686 68.6 80.7 64.5 4 8.55 11.5 12.0 138.0 1500 1780 123 320 5.2 0.615 75.7 80.8 64.7 5 6.87 10.0 31.0 310.0 1500 1780 196 510 9.5 0.508 99.6 109.0 87.2 6 11.02 14.0 12.0 168.0 1500 1780 93 242 6.0 0.712 66.2 72.2 57.7 7 12.98 16.0 31.0 496.0 1500 1780 178 463 14.8 0.526 93.6 108.3 86.7 8 13.9 17.0 12.0 204.0 1500 1780 167 434 6.9 0.538 89.8 96.8 77.4 9 11.01 14.0 31.0 434.0 1500 1780 190 494 13.0 0.514 97.6 110.6 88.5 10 10.15 13.5 12.0 162.0 1500 1780 223 580 5.8 0.483 107.6 113.5 90.8 11 9.46 12.5 31.0 387.5 1500 1780 174 453 11.7 0.53 92.2 103.8 83.1 12 9.96 13.0 12.0 156.0 1500 1780 134 349 5.7 0.588 78.8 84.4 67.5 13 12.35 15.5 31.0 480.5 1500 1780 246 640 14.3 0.469 115.4 129.7 103.8 14 12.77 16.0 12.0 192.0 1500 1780 141 367 6.6 0.576 81.2 87.8 70.2 15 13.21 16.5 31.0 511.5 1500 1780 154 401 15.2 0.555 85.5 100.7 80.6 16 13.69 17.0 12.0 204.0 1500 1780 183 476 6.9 0.52 95.2 102.1 81.7 17 12.82 16.0 31.0 496.0 1500 1780 182 473 14.8 0.521 94.8 109.6 87.7 18 11.28 14.5 12.0 174.0 1500 1780 105 273 6.1 0.669 70.3 76.4 61.1 19 9.94 13.0 31.0 403.0 1500 1780 69 180 12.1 0.849 58.6 70.7 56.6 20 9.76 13.0 12.0 156.0 1500 1780 131 341 5.7 0.599 78.4 84.1 67.3 21 9.37 12.5 31.0 387.5 1500 1780 165 429 11.7 0.54 89.2 100.9 80.7 22 8.92 12.0 12.0 144.0 1500 1780 200 520 5.3 0.504 100.9 106.2 85.0 23 8.05 11.0 31.0 341.0 1500 1780 190 494 10.4 0.514 97.6 107.9 86.3 24 7.69 11.0 12.0 132.0 1500 1780 201 523 5.0 0.504 101.3 106.3 85.0 25 8.05 11.0 31.0 341.0 1500 1780 174 453 10.4 0.582 101.3 111.6 89.3 26 7.67 11.0 12.0 132.0 1500 1780 100 260 5.0 0.686 68.6 73.6 58.9 27 7.93 11.0 31.0 341.0 1500 1780 184 479 10.4 0.519 95.5 105.9 84.7 28 8.39 11.5 12.0 138.0 1500 1780 0 5.2 5.2 4.1 Total 4,154 244.8 2,304.0 2,548.7 2,039.0

Construction cost Construction cost No. Diameter(mm) Cover depth(m) Length(m) Unit construction cost （103Lek) （106Lek) Main sewer 1400 3 m 90 m 18.6 103Lek/m 1,674 2600 3 130 26.7 3,475 3600 3 130 26.7 3,475 10-2200 2 800 9.7 7,776 200 2 200 9.7 1,944 Subtotal 1,350 18,344 18.3 Branch sewer 1200 2 m 5,000 m 9.7 103Lek/m 48,600 2200 2 10,000 9.7 97,200 3200 2 5,000 9.7 48,600 10-2200 2 4,600 9.7 44,712 200 2 3,000 9.7 29,160 Subtotal 27,600 268,272 268.3

Total 33,104 m 2,326

A10 - 16 Volume III Supporting Report

(2)The contents of construction cost of trunk sewer No.3 Lek Lek Trunk sewer Shaft No. Trunk sewer Shaft No. Item of construction cost 12 3 4567891011121314 Length of span (m) 76 75 100 123 196 93 178 167 190 223 174 134 246 141 Cost (1) Jacking 28,048,572 34,981,168 44,614,069 50,381,310 68,810,201 42,880,800 64,288,395 61,482,758 67,313,599 75,621,210 63,225,427 53,145,347 81,477,051 54,950,116 Pipe laying in shaft 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 Temporary equipment 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 Telecommunication & ventilation equipment 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 Injection equipment 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680

Solid transportation equipment 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 Boring a hole in manhole 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 Total of cost (1) (a) 28,570,683 34,366,334 42,419,439 47,240,852 62,647,405 40,970,426 58,867,175 56,521,663 61,396,246 68,341,409 57,978,534 49,551,587 73,236,892 51,060,374 Cost (2) Temporary work (b) 3,428,482 3,780,296 4,666,138 5,196,493 6,891,214 4,506,746 6,475,389 6,217,382 6,753,587 6,834,140 6,377,638 5,450,674 7,323,689 5,616,641 (a)+(b) 31,999,165 38,146,630 47,085,577 52,437,345 69,538,619 45,477,172 65,342,564 62,739,045 68,149,833 75,175,549 64,356,172 55,002,261 80,560,581 56,677,015 Site management (c) 9,279,757 11,062,522 14,125,672 15,731,203 20,166,199 13,643,151 18,949,343 18,194,322 19,763,451 21,800,908 18,663,289 15,950,655 23,362,568 16,436,334 (a)+(b)+(c) 41,278,922 49,209,152 61,211,249 68,168,548 89,704,818 59,120,323 84,291,907 80,933,367 87,913,284 96,976,457 83,019,461 70,952,916 103,923,149 73,113,349 General management (d) 4,953,470 5,413,006 7,345,349 7,498,540 9,867,529 7,094,438 9,272,109 8,902,670 9,670,461 10,667,410 9,132,140 7,804,820 11,431,546 8,042,468 Total of cost (2) (b)+(c)+(d) 17,661,709 20,255,824 26,137,159 28,426,236 36,924,942 25,244,335 34,696,841 33,314,374 36,187,499 39,302,458 34,173,067 29,206,149 42,117,803 30,095,443 Direct Cost Sum of the costs (1)+(2) 46,232,392 54,622,158 68,556,598 75,667,088 99,572,347 66,214,761 93,564,016 89,836,037 97,583,745 107,643,867 92,151,601 78,757,736 115,354,695 81,155,817 Construction cost ⇒ 46,232,000 54,622,000 68,556,000 75,667,000 99,572,000 66,214,000 93,564,000 89,836,000 97,583,000 107,643,000 92,151,000 78,757,000 115,354,000 81,155,000 Depth of shaft (m) 9.5 9.5 13.0 11.5 10.0 14.0 16.0 17.0 14.0 13.5 12.5 13.0 15.5 16.0 Cost (1) Construction of shaft 1,639,240 1,639,240 6,481,853 1,804,729 5,058,568 2,011,590 7,905,138 2,259,824 6,956,281 1,970,218 6,244,639 1,928,846 7,667,924 2,177,079 Setting of manhole in shaft 1,204,626 1,204,626 1,095,237 1,433,686 859,750 1,720,011 1,330,724 2,063,601 1,173,733 1,662,746 1,055,989 1,605,481 1,291,476 1,949,071 Total 2,843,866 2,843,866 7,577,090 3,238,415 5,918,317 3,731,601 9,235,863 4,323,425 8,130,014 3,632,964 7,300,628 3,534,327 8,959,400 4,126,150

Cost (2) 1,706,318 1,706,318 4,546,252 1,943,048 3,550,994 2,238,958 5,541,518 2,594,058 4,878,010 2,179,778 4,380,381 2,120,598 5,375,639 2,475,689

Direct Cost Sum of the costs (1)+(2) 4,550,184 4,550,184 12,123,342 5,181,463 9,469,311 5,970,560 14,777,381 6,917,482 13,008,024 5,812,742 11,681,009 5,654,924 14,335,039 6,601,839 Construction cost ⇒ 4,550,000 4,550,000 12,123,000 5,181,000 9,469,000 5,970,000 14,777,000 6,917,000 13,008,000 5,812,000 11,681,000 5,654,000 14,335,000 6,601,000

A10 - 17 Volume III Supporting Report

(2)The contents of construction cost of trunk sewer No.3 Lek Lek Trunk sewer Shaft No. Trunk sewer Shaft No. Item of construction cost 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Length of span (m) 154 183 182 105 69 131 165 200 190 201 174 100 184 Cost (1) Jacking 58,214,487 65,501,830 65,252,863 45,885,904 36,847,292 52,433,146 60,985,324 69,808,069 67,313,599 70,091,636 63,225,427 44,614,069 65,750,897 Pipe laying in shaft 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 1,331,292 Temporary equipment 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 2,750,342 Telecommunication & ventilation equipment 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 897,000 Injection equipment 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680 88,680

Solid transportation equipment 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 521,938 Boring a hole in manhole 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 537,635 Total of cost (1) (a) 53,789,388 59,881,607 59,673,471 43,482,693 35,926,413 48,956,187 56,105,808 63,481,623 61,396,246 63,718,685 57,978,534 42,419,439 60,089,827 Cost (2) Temporary work (b) 5,916,832 6,586,976 6,564,081 4,783,096 4,311,169 5,385,180 6,171,638 6,982,978 6,753,587 7,009,055 6,377,638 4,666,138 6,609,880 (a)+(b) 59,706,220 66,468,583 66,237,552 48,265,789 40,237,582 54,341,367 62,277,446 70,464,601 68,149,833 70,727,740 64,356,172 47,085,577 66,699,707 Site management (c) 17,314,803 19,275,889 19,208,889 14,479,736 12,071,274 16,302,410 18,060,459 20,434,734 19,763,451 20,511,044 18,663,289 14,125,672 19,342,915 (a)+(b)+(c) 77,021,023 85,744,472 85,446,441 62,745,525 52,308,856 70,643,777 80,337,905 90,899,335 87,913,284 91,238,784 83,019,461 61,211,249 86,042,622 General management (d) 8,472,312 9,431,891 9,399,108 7,529,462 6,277,062 7,770,815 8,837,169 9,998,926 9,670,461 10,036,266 9,132,140 7,345,349 9,464,688 Total of cost (2) (b)+(c)+(d) 31,703,947 35,294,756 35,172,078 26,792,294 22,659,505 29,458,405 33,069,266 37,416,638 36,187,499 37,556,365 34,173,067 26,137,159 35,417,483 Direct Cost Sum of the costs (1)+(2) 85,493,335 95,176,363 94,845,549 70,274,987 58,585,918 78,414,592 89,175,074 100,898,261 97,583,745 101,275,050 92,151,601 68,556,598 95,507,310 Construction cost ⇒ 85,493,000 95,176,000 94,845,000 70,274,000 58,585,000 78,414,000 89,175,000 100,898,000 97,583,000 101,275,000 92,151,000 68,556,000 95,507,000 Depth of shaft (m) 16.5 17.0 16.0 14.5 13.0 13.0 12.5 12.0 11.0 11.0 11.0 11.0 11.0 11.5 Cost (1) Construction of shaft 8,142,353 2,259,824 7,905,138 2,052,962 6,481,853 1,928,846 6,244,639 1,846,101 5,532,996 1,763,356 5,532,996 1,763,356 5,532,996 1,804,729 Setting of manhole in shaft 1,369,972 2,063,601 1,330,724 1,777,276 1,095,237 1,605,481 1,055,989 1,490,951 938,245 1,376,421 938,245 1,376,421 938,245 1,433,686 Total 9,512,325 4,323,425 9,235,863 3,830,238 7,577,090 3,534,327 7,300,628 3,337,052 6,471,241 3,139,778 6,471,241 3,139,778 6,471,241 3,238,415

Cost (2) 5,707,397 2,594,058 5,541,518 2,298,139 4,546,252 2,120,598 4,380,381 2,002,228 3,882,743 1,883,867 3,882,743 1,883,867 3,882,743 1,943,048

Direct Cost Sum of the costs (1)+(2) 15,219,722 6,917,482 14,777,381 6,128,377 12,123,342 5,654,924 11,681,009 5,339,281 10,353,985 5,023,645 10,353,985 5,023,645 10,353,985 5,181,463 Construction cost ⇒ 15,219,000 6,917,000 14,777,000 6,128,000 12,123,000 5,654,000 11,681,000 5,339,000 10,353,000 5,023,000 10,353,000 5,023,000 10,353,000 5,181,000

A10 - 18 Volume Ⅲ Supporting Report

10.2.3 Cost of Open Cut

(1) Construction cost of open cut method Albanian Lek 103Lek/m Groundwater level = 5m Covering Pipe Pipe inner diameter depth m 150 200 250 300 350 400 450 500 600 700

PVC 0.6 6.3 7.0 8.9 9.5 11.1 13.5 14.9

0.8 6.7 7.5 9.4 10.0 11.6 14.0 15.4

1.0 7.1 7.8 9.7 10.2 12.1 14.5 16.0

1.2 7.7 8.3 10.2 10.7 12.6 15.0 16.5 19.4 22.0 24.0

1.5 8.2 8.8 10.7 11.3 13.1 15.8 16.9 20.4 23.2 25.0

2.0 9.1 9.7 11.8 12.6 14.4 17.1 18.1 21.7 24.7 26.9

2.5 9.9 10.8 12.9 13.6 15.5 18.3 19.3 23.2 26.4 28.7

3.0 10.3 10.9 13.1 13.8 15.8 18.6 20.3 23.4 26.7 28.9

3.5 11.9 12.7 14.9 15.6 17.6 20.6 22.6 25.7 29.2 31.3

4.0 12.7 13.5 15.9 16.8 18.7 21.7 23.9 26.9 30.6 33.1

4.5 13.5 14.5 27.6 61.5 63.3 66.6 68.7 71.9 75.7 77.9

5.0 64.4 65.4 67.9 68.9 70.9 74.1 76.3 79.6 83.7 86.1

5.5 69.8 70.7 73.9 74.9 76.9 80.4 82.8 86.1 90.4 92.8

6.0 92.9 94.0 97.3 98.4 100.4 103.9 106.4 109.7 114.4 116.8

A10 - 19 Volume Ⅲ Supporting Report

(2) u-PVC pipe sewer construction estimation

Diamete AverageExcavation Backfill Sheetpile Backfilling and compacting Materials Total (A) r Crane work Backhoe Soil Manhole Rental fee of Vibration Pipe covering for sheetpiles work transportation gravels, construction sheet piles Total Inner depth volume volume length Backfilling compacting Leveling Construction depth concrete Construction cost(1) 30m/span cost mm ｍｍm3 m3 ｍ Lek/m Lek/m Lek/m Lek/m Lek/m Lek/m Lek/m Lek/m Lek/m Lek/ｍ Lek/m Lek/m

150 0.60 1.10 0.80 0.47 0.00 0 0 839 707 39 676 14 531 533 370 0 3,707 6,300 150 0.80 1.20 0.80 0.45 0.00 0 0 839 753 65 777 14 531 570 370 0 3,918 6,660 150 1.00 1.40 1.00 0.65 0.00 0 0 892 753 91 879 14 531 618 370 0 4,147 7,050 150 1.20 1.60 1.10 0.75 0.00 0 0 919 753 150 1,109 14 531 655 370 0 4,501 7,650 150 1.40 1.80 1.20 0.85 0.00 0 0 946 753 170 1,187 14 531 655 370 0 4,626 7,860 150 1.50 1.90 1.30 0.95 0.00 0 0 972 753 190 1,265 14 531 735 370 0 4,830 8,210 150 2.00 2.40 1.60 1.25 0.00 0 0 1,052 753 250 1,499 15 531 882 370 0 5,352 9,100 150 2.50 2.90 1.90 1.55 0.00 0 0 1,133 753 310 1,733 16 531 991 370 0 5,836 9,920 150 3.00 3.40 2.30 1.95 0.00 0 0 1,054 729 260 2,046 16 531 1,051 370 0 6,057 10,300 150 3.50 3.90 2.60 2.25 0.00 0 0 1,110 729 301 2,280 17 531 1,659 370 0 6,996 11,890 150 4.00 4.40 2.90 2.55 0.00 0 0 1,166 729 341 2,514 17 531 1,789 370 0 7,457 12,680 150 4.50 4.90 3.20 2.85 0.00 0 0 1,222 729 381 2,748 18 531 1,948 370 0 7,946 13,510 150 5.00 5.60 3.70 3.22 8.00 7,509 3,133 1,315 1,000 430 3,037 19 741 2,077 370 18,240 37,872 64,380 150 5.50 6.10 4.00 3.52 9.00 8,214 3,400 1,101 1,000 470 3,271 19 741 1,927 370 20,520 41,033 69,760 150 6.00 6.60 4.30 3.82 10.50 11,119 3,800 1,136 1,000 510 3,505 20 741 2,510 370 29,925 54,636 92,880 200 0.60 1.00 0.70 0.28 0.00 0 0 812 904 56 734 13 619 533 450 0 4,122 7,010 200 0.80 1.20 0.90 0.48 0.00 0 0 865 904 96 891 14 619 570 450 0 4,409 7,500 200 1.00 1.40 1.00 0.58 0.00 0 0 892 904 116 969 14 619 618 450 0 4,581 7,790 200 1.20 1.60 1.20 0.78 0.00 0 0 946 904 156 1,125 14 619 655 450 0 4,869 8,280 200 1.40 1.80 1.30 0.88 0.00 0 0 972 904 176 1,203 14 619 655 450 0 4,994 8,490 200 1.50 1.90 1.40 0.98 0.00 0 0 999 904 196 1,281 14 619 735 450 0 5,198 8,840 200 2.00 2.40 1.70 1.28 0.00 0 0 1,079 904 256 1,515 15 619 882 450 0 5,720 9,720 200 2.50 2.90 2.10 1.68 0.00 0 0 1,186 904 336 1,827 16 619 991 450 0 6,329 10,760 200 3.00 3.40 2.40 1.98 0.00 0 0 1,073 875 264 2,061 16 619 1,051 450 0 6,410 10,900 200 3.50 3.90 2.80 2.38 0.00 0 0 1,147 875 318 2,373 17 619 1,659 450 0 7,459 12,680 200 4.00 4.40 3.10 2.68 0.00 0 0 1,203 875 358 2,607 17 619 1,789 450 0 7,920 13,460 200 4.50 4.90 3.50 3.08 0.00 0 0 1,278 875 411 2,920 18 619 1,948 450 0 8,519 14,480 200 5.00 5.60 4.00 3.44 8.00 7,509 3,133 1,371 1,167 459 3,201 19 846 2,077 450 18,240 38,473 65,400 200 5.50 6.10 4.30 3.74 9.00 8,214 3,400 1,136 1,167 500 3,435 19 846 1,927 450 20,520 41,614 70,740 200 6.00 6.60 4.70 4.14 10.50 11,119 3,800 1,184 1,167 553 3,747 20 846 2,510 450 29,925 55,320 94,040 250 0.60 1.10 0.90 0.39 0.00 0 0 865 1,107 77 801 14 741 533 1,100 0 5,238 8,900 250 0.80 1.30 1.10 0.59 0.00 0 0 919 1,107 117 957 14 741 570 1,100 0 5,525 9,390 250 1.00 1.50 1.20 0.69 0.00 0 0 946 1,107 137 1,035 14 741 618 1,100 0 5,697 9,690 250 1.20 1.70 1.40 0.89 0.00 0 0 999 1,107 177 1,192 14 741 655 1,100 0 5,985 10,170 250 1.40 1.90 1.60 1.09 0.00 0 0 1,052 1,107 217 1,348 14 741 655 1,100 0 6,234 10,600 250 1.50 2.00 1.60 1.09 0.00 0 0 1,052 1,107 217 1,348 15 741 735 1,100 0 6,314 10,730 250 2.00 2.50 2.00 1.49 0.00 0 0 1,159 1,107 297 1,660 15 741 882 1,100 0 6,961 11,830 250 2.50 3.00 2.40 1.89 0.00 0 0 1,266 1,107 377 1,972 16 741 991 1,100 0 7,569 12,870 250 3.00 3.50 2.80 2.29 0.00 0 0 1,147 1,072 305 2,284 16 741 1,051 1,100 0 7,717 13,120 250 3.50 4.00 3.20 2.69 0.00 0 0 1,222 1,072 359 2,596 17 741 1,659 1,100 0 8,766 14,900 250 4.00 4.50 3.60 3.09 0.00 0 0 1,297 1,072 412 2,908 17 741 1,789 1,100 0 9,336 15,870 250 4.50 5.00 4.00 3.49 7.00 6,286 0 1,371 1,072 466 3,221 18 741 1,948 1,100 0 16,222 27,580 250 5.00 5.60 4.50 3.83 8.00 7,509 3,133 1,464 1,406 511 3,486 19 999 2,077 1,100 18,240 39,945 67,910 250 5.50 6.10 4.90 4.23 9.00 8,214 3,400 1,539 1,406 564 3,798 19 999 1,927 1,100 20,520 43,487 73,930 250 6.00 6.60 5.30 4.63 10.50 11,119 3,800 1,614 1,406 618 4,110 20 999 2,510 1,100 29,925 57,221 97,280 300 0.60 1.10 1.00 0.40 0.00 0 0 892 1,298 79 802 14 846 533 1,100 0 5,564 9,460 300 0.80 1.30 1.20 0.60 0.00 0 0 946 1,298 119 958 14 846 570 1,100 0 5,851 9,950 300 1.00 1.50 1.30 0.70 0.00 0 0 972 1,298 139 1,036 14 846 618 1,100 0 6,024 10,240 300 1.20 1.70 1.50 0.90 0.00 0 0 1,026 1,298 179 1,193 14 846 655 1,100 0 6,311 10,730 300 1.40 1.90 1.70 1.10 0.00 0 0 1,079 1,298 219 1,349 14 846 655 1,100 0 6,561 11,150 300 1.50 2.00 1.70 1.10 0.00 0 0 1,079 1,298 219 1,349 15 846 735 1,100 0 6,640 11,290 300 2.00 2.50 2.20 1.60 0.00 0 0 1,213 1,298 319 1,739 15 846 882 1,100 0 7,412 12,600 300 2.50 3.00 2.60 2.00 0.00 0 0 1,320 1,298 399 2,051 16 846 991 1,100 0 8,020 13,630 300 3.00 3.50 3.00 2.40 0.00 0 0 1,185 1,257 320 2,363 16 846 1,051 1,100 0 8,138 13,840 300 3.50 4.00 3.40 2.80 0.00 0 0 1,259 1,257 374 2,675 17 846 1,659 1,100 0 9,188 15,620 300 4.00 4.50 3.90 3.30 0.00 0 0 1,353 1,257 440 3,066 17 846 1,789 1,100 0 9,868 16,780 300 4.50 5.10 4.40 3.63 7.00 6,286 2,867 1,446 1,612 484 3,323 18 1,121 1,948 1,100 15,960 36,165 61,480 300 5.00 5.60 4.80 4.03 8.00 7,509 3,133 1,520 1,612 538 3,635 19 1,121 2,077 1,100 18,240 40,505 68,860 300 5.50 6.10 5.20 4.43 9.00 8,214 3,400 1,595 1,612 591 3,947 19 1,121 1,927 1,100 20,520 44,047 74,880 300 6.00 6.60 5.70 4.93 10.50 11,119 3,800 1,688 1,612 658 4,338 20 1,121 2,510 1,100 29,925 57,890 98,410 350 0.60 1.20 1.10 0.40 0.00 0 0 919 1,512 80 795 14 962 533 1,700 0 6,514 11,070 350 0.80 1.40 1.30 0.60 0.00 0 0 972 1,512 119 951 14 962 570 1,700 0 6,801 11,560 350 1.00 1.60 1.50 0.80 0.00 0 0 1,026 1,512 159 1,107 14 962 618 1,700 0 7,098 12,070 350 1.20 1.80 1.70 1.00 0.00 0 0 1,079 1,512 199 1,263 14 962 655 1,700 0 7,386 12,560 350 1.40 2.00 1.80 1.10 0.00 0 0 1,106 1,512 219 1,341 15 962 655 1,700 0 7,511 12,770 350 1.50 2.10 1.90 1.20 0.00 0 0 1,133 1,512 239 1,419 15 962 735 1,700 0 7,715 13,120 350 2.00 2.60 2.40 1.70 0.00 0 0 1,266 1,512 339 1,809 15 962 882 1,700 0 8,486 14,430 350 2.50 3.10 2.80 2.10 0.00 0 0 1,373 1,512 419 2,121 16 962 991 1,700 0 9,095 15,460 350 3.00 3.60 3.30 2.60 0.00 0 0 1,241 1,465 347 2,512 16 962 1,051 1,700 0 9,293 15,800 350 3.50 4.10 3.70 3.00 0.00 0 0 1,315 1,465 400 2,824 17 962 1,659 1,700 0 10,343 17,580 350 4.00 4.60 4.20 3.50 0.00 0 0 1,409 1,465 467 3,214 18 962 1,789 1,700 0 11,023 18,740 350 4.50 5.10 4.60 3.72 7.00 6,286 2,867 1,483 1,841 496 3,386 18 1,253 1,948 1,700 15,960 37,237 63,300 350 5.00 5.60 5.10 4.22 8.00 7,509 3,133 1,576 1,841 563 3,776 19 1,253 2,077 1,700 18,240 41,687 70,870 350 5.50 6.10 5.50 4.62 9.00 8,214 3,400 1,651 1,841 617 4,088 19 1,253 1,927 1,700 20,520 45,230 76,890 350 6.00 6.60 6.00 5.12 10.50 11,119 3,800 1,744 1,841 683 4,478 20 1,253 2,510 1,700 29,925 59,073 100,420 400 0.60 1.20 1.20 0.38 0.00 0 0 946 1,772 75 763 14 1,107 533 2,750 0 7,959 13,530 400 0.80 1.40 1.40 0.58 0.00 0 0 999 1,772 115 919 14 1,107 570 2,750 0 8,246 14,020 400 1.00 1.60 1.60 0.78 0.00 0 0 1,052 1,772 155 1,075 14 1,107 618 2,750 0 8,544 14,520 400 1.20 1.80 1.80 0.98 0.00 0 0 1,106 1,772 195 1,231 14 1,107 655 2,750 0 8,831 15,010 400 1.40 2.00 2.00 1.18 0.00 0 0 1,159 1,772 235 1,387 15 1,107 655 2,750 0 9,081 15,440 400 1.50 2.10 2.10 1.28 0.00 0 0 1,186 1,772 255 1,466 15 1,107 735 2,750 0 9,285 15,780 400 2.00 2.60 2.60 1.78 0.00 0 0 1,320 1,772 355 1,856 15 1,107 882 2,750 0 10,056 17,100 400 2.50 3.10 3.10 2.28 0.00 0 0 1,453 1,772 455 2,246 16 1,107 991 2,750 0 10,790 18,340 400 3.00 3.60 3.60 2.78 0.00 0 0 1,297 1,717 371 2,636 16 1,107 1,051 2,750 0 10,944 18,600 400 3.50 4.10 4.10 3.28 0.00 0 0 1,390 1,717 438 3,026 17 1,107 1,659 2,750 0 12,103 20,580 400 4.00 4.60 4.60 3.78 0.00 0 0 1,483 1,717 504 3,417 18 1,107 1,789 2,750 0 12,784 21,730 400 4.50 5.10 5.10 4.08 7.00 6,286 2,867 1,576 2,134 545 3,651 18 1,430 1,948 2,750 15,960 39,164 66,580 400 5.00 5.60 5.60 4.58 8.00 7,509 3,133 1,670 2,134 611 4,041 19 1,430 2,077 2,750 18,240 43,614 74,140 400 5.50 6.10 6.10 5.08 9.00 8,214 3,400 1,763 2,134 678 4,431 19 1,430 1,927 2,750 20,520 47,266 80,350 400 6.00 6.60 6.60 5.58 10.50 11,119 3,800 1,856 2,134 745 4,821 20 1,430 2,510 2,750 29,925 61,110 103,890

A10 - 20 Volume Ⅲ Supporting Report

450 0.60 1.30 1.40 0.46 0.00 0 0 999 2,018 93 822 14 1,235 850 2,750 0 8,781 14,930 450 0.80 1.50 1.60 0.66 0.00 0 0 1,052 2,018 132 978 14 1,235 898 2,750 0 9,079 15,430 450 1.00 1.70 1.80 0.86 0.00 0 0 1,106 2,018 172 1,134 14 1,235 972 2,750 0 9,403 15,980 450 1.20 1.90 2.00 1.06 0.00 0 0 1,159 2,018 212 1,290 14 1,235 1,020 2,750 0 9,700 16,490 450 1.40 2.10 2.30 1.36 0.00 0 0 1,054 1,955 182 1,524 15 1,235 1,020 2,750 0 9,736 16,550 450 1.50 2.20 2.40 1.46 0.00 0 0 1,073 1,955 195 1,603 15 1,235 1,134 2,750 0 9,960 16,930 450 2.00 2.70 2.90 1.96 0.00 0 0 1,166 1,955 262 1,993 15 1,235 1,253 2,750 0 10,630 18,070 450 2.50 3.20 3.40 2.46 0.00 0 0 1,259 1,955 329 2,383 16 1,235 1,400 2,750 0 11,328 19,260 450 3.00 3.70 3.90 2.96 0.00 0 0 1,353 1,955 396 2,773 17 1,235 1,479 2,750 0 11,957 20,330 450 3.50 4.20 4.50 3.56 0.00 0 0 1,464 1,955 476 3,241 17 1,235 2,163 2,750 0 13,302 22,610 450 4.00 4.70 5.00 4.06 0.00 0 0 1,558 1,955 543 3,632 18 1,235 2,340 2,750 0 14,030 23,850 450 4.50 5.10 5.40 4.25 7.00 6,286 2,867 1,632 2,393 568 3,780 18 1,575 2,553 2,750 15,960 40,382 68,650 450 5.00 5.60 5.90 4.75 8.00 7,509 3,133 1,726 2,393 635 4,170 19 1,575 2,731 2,750 18,240 44,880 76,300 450 5.50 6.10 6.50 5.35 9.00 8,214 3,400 1,838 2,393 715 4,638 19 1,575 2,649 2,750 20,520 48,711 82,810 450 6.00 6.60 7.00 5.85 10.50 11,119 3,800 1,931 2,393 782 5,028 20 1,575 3,258 2,750 29,925 62,581 106,390 500 1.20 1.90 2.10 1.04 0.00 0 0 1,186 2,284 208 1,264 14 1,372 1,020 4,050 0 11,399 19,380 500 1.50 2.20 2.50 1.44 0.00 0 0 1,293 2,284 288 1,576 15 1,372 1,134 4,050 0 12,012 20,420 500 2.00 2.70 3.00 1.94 0.00 0 0 1,426 2,284 388 1,967 15 1,372 1,253 4,050 0 12,755 21,680 500 2.50 3.20 3.60 2.54 0.00 0 0 1,587 2,284 508 2,435 16 1,372 1,400 4,050 0 13,652 23,210 500 3.00 3.70 4.10 3.04 0.00 0 0 1,390 2,213 406 2,825 17 1,372 1,479 4,050 0 13,751 23,380 500 3.50 4.20 4.70 3.64 0.00 0 0 1,502 2,213 486 3,293 17 1,372 2,163 4,050 0 15,096 25,660 500 4.00 4.70 5.20 4.14 0.00 0 0 1,595 2,213 553 3,684 18 1,372 2,340 4,050 0 15,824 26,900 500 4.50 5.10 5.70 4.42 7.00 6,286 2,867 1,688 2,672 590 3,902 18 1,728 2,553 4,050 15,960 42,314 71,930 500 5.00 5.60 6.20 4.92 8.00 7,509 3,133 1,782 2,672 657 4,292 19 1,728 2,731 4,050 18,240 46,812 79,580 500 5.50 6.10 6.80 5.52 9.00 8,214 3,400 1,894 2,672 737 4,761 19 1,728 2,649 4,050 20,520 50,643 86,090 500 6.00 6.60 7.30 6.02 10.50 11,119 3,800 1,987 2,672 804 5,151 20 1,728 3,258 4,050 29,925 64,513 109,670 600 1.20 2.00 2.70 1.29 0.00 0 0 1,346 3,027 259 1,424 15 1,769 1,020 4,050 0 12,910 21,950 600 1.50 2.30 3.20 1.79 0.00 0 0 1,480 3,027 359 1,815 15 1,769 1,134 4,050 0 13,648 23,200 600 2.00 2.80 3.80 2.39 0.00 0 0 1,640 3,027 479 2,283 15 1,769 1,253 4,050 0 14,516 24,680 600 2.50 3.30 4.50 3.09 0.00 0 0 1,827 3,027 619 2,829 16 1,769 1,400 4,050 0 15,537 26,410 600 3.00 3.80 5.20 3.79 0.00 0 0 1,595 2,932 507 3,375 17 1,769 1,479 4,050 0 15,724 26,730 600 3.50 4.30 5.90 4.49 0.00 0 0 1,726 2,932 600 3,922 17 1,769 2,163 4,050 0 17,178 29,200 600 4.00 4.80 6.50 5.09 0.00 0 0 1,838 2,932 680 4,390 18 1,769 2,340 4,050 0 18,017 30,630 600 4.50 5.10 6.90 5.22 7.00 6,286 2,867 1,912 3,495 698 4,491 18 2,205 2,553 4,050 15,960 44,536 75,710 600 5.00 5.60 7.60 5.92 8.00 7,509 3,133 2,043 3,495 791 5,038 19 2,205 2,731 4,050 18,240 49,254 83,730 600 5.50 6.10 8.30 6.62 9.00 8,214 3,400 2,173 3,495 885 5,584 19 2,205 2,649 4,050 20,520 53,195 90,430 600 6.00 6.60 9.00 7.32 10.50 11,119 3,800 2,304 3,495 978 6,130 20 2,205 3,258 4,050 29,925 67,285 114,380 700 1.20 2.10 3.10 1.38 0.00 0 0 1,453 3,713 275 1,472 15 2,108 1,020 4,050 0 14,106 23,980 700 1.50 2.40 3.50 1.78 0.00 0 0 1,560 3,713 355 1,784 15 2,108 1,134 4,050 0 14,720 25,020 700 2.00 2.90 4.30 2.58 0.00 0 0 1,774 3,713 515 2,409 16 2,108 1,253 4,050 0 15,837 26,920 700 2.50 3.40 5.00 3.28 0.00 0 0 1,961 3,713 655 2,955 16 2,108 1,400 4,050 0 16,858 28,660 700 3.00 3.90 5.70 3.98 0.00 0 0 1,688 3,597 531 3,501 17 2,108 1,479 4,050 0 16,971 28,850 700 3.50 4.40 6.40 4.68 0.00 0 0 1,819 3,597 624 4,047 17 2,108 2,163 4,050 0 18,426 31,320 700 4.00 4.90 7.20 5.48 0.00 0 0 1,968 3,597 731 4,672 18 2,108 2,340 4,050 0 19,484 33,120 700 4.50 5.10 7.40 5.39 7.00 6,286 2,867 2,005 4,202 719 4,602 18 2,577 2,553 4,050 15,960 45,839 77,930 700 5.00 5.60 8.20 6.19 8.00 7,509 3,133 2,155 4,202 826 5,226 19 2,577 2,731 4,050 18,240 50,667 86,130 700 5.50 6.10 8.90 6.89 9.00 8,214 3,400 2,285 4,202 920 5,772 19 2,577 2,649 4,050 20,520 54,608 92,830 700 6.00 6.60 9.60 7.59 10.50 11,119 3,800 2,416 4,202 1,013 6,318 20 2,577 3,258 4,050 29,925 68,698 116,790

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10.2.4 Basic Cost Data in Albania & EU

(1) Worker (Albanian labour) 1.2 0.04 Specifications Prices Applied Including Including prices insurance insurance [Lek/month] [Lek/month] [Lek/day] OPERATION AND Gen.director 109,000 109,000 130,800 5,230 MAINTENANCE Director 80,000 80,000 96,000 3,840 STUFF COST Manager 60,000 60,000 72,000 2,880 Engineer 40,000 40,000 48,000 1,920 Foreman 30,000 30,000 36,000 1,440 Operator 25,000 25,000 30,000 1,200 Chemist 25,000-37,000 31,000 37,200 1,490 Technician 30,000 30,000 36,000 1,440 Mechanic 30,000 30,000 36,000 1,440 Driver 25,000 25,000 30,000 1,200 worker 20,000 20,000 24,000 960

Leks

Insurance excluded (as much as 20%) one family of 4 persons need 1000US$ approximately to live in Tirana

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10.2.4 Basic Cost Data in Albania & EU

Leks

Insurance excluded (as much as 20%) one family of 4 persons need 1000US$ approximately to live in Tirana

A10 - 22 Volume Ⅲ Supporting Report

(2) Pipe prices

Item Products/materials Specifications Note Dia mm Price Price applied PVC pipe DiaΦ150-1500 mm Catalogue obtained 140 220-270 250 Lek/m (Polyvinyl Chloride 150 370 370 pipe or plastic pipe) 160 250-330 290 200 350-550 450 250 1,100 1,100 315 1,600-1,800 1,700 Product 355 2,300 2,300 400 2,600-2,900 2,750 500 3,600-4,500 4,050 PE pipe Dia.Φ 30-300 mm Catalogue obtained 25mm 190 190 Lek/m (Polyethylene) 32mm 80-200 140 40mm 135-230 180 50mm 180-250 215 63mm 280- 400 340 75mm 434-450 442 90mm 600-820 710 110mm 850-1,162 1,006 125mm 857-1,200 1,030 140mm 1,250-1,750 1,500 160mm 1,510-2,115 1,810 180mm 2,290-3,200 2,750 200mm 2,985- 4,175 3,580 225mm 3,050-4,250 3,650 250mm 3,360-4,700 4,030 300mm 3,610-5,050 4,330 350mm 5,300 5,300 355mm 4,000 4,000 400mm 4,290 4,290 500mm 5,400 5,400

Concrete pipe Dia. Φ 200-1500 mm Factories existing in 200 710-850 1,170 Lek/m Tirana,Kamza etc 300 890-1,000 1,425 400 1,100-1,586 2,010 500 1,400-1,850 2,445 600 2,645-3,700 4,755 800 4,215-5,900 7,590 1000 7,750-1,0425 13,635 1200 9,428-1,3200 16,965 1500 11,430-16,000 20,580 2000 21,500 32,250 Centrifugal Dia. Φ 200-1500 mm Reinforced Concrete Inleti Manhole, cover Depth 3-6 m Assemble 1,5x2,05 H=3m 5,800 5,800 Lek 1,5x2,5 H=5m 5,800 5,800 1,5x2,05 H=6m 6,500 6,500 Bricks for Manhole On site construction Street drain U shape box Width 300-1000 mm Submergible pump for 1,5-11 kW Vortex type sewage

A10 - 23 Volume Ⅲ Supporting Report

(2) Pipe prices

Item Products/materials Specifications Note Dia mm Price Price applied Valve Dia.30-300 mm Check valve Φ 80mm 16atm 18,000 18,000 lek Gate valve Φ100mm 16 atm 22,500 22,500 Φ125mm 16arm 30,000 30,000 Φ150mm 16atm 37,000 37,000 Φ200mm 16 atm 55,000 55,000 Φ250mm 16 atm 130 130 Φ300mm 16atm 200 200

Gate of stream Width 2m depth 2m Pile Made of concrete 40 40 Post 2-3m length Woody (3 m) 220 220 Timber50 x 50 mm At markets/shops (4 m) 270 270 100 x 100 mm 800 800 Woody board/plate At markets/shops Equipments of water BOD,COD Ask water quality 835,000 For Jacking method 1.5 times for adjustment

A10 - 24 Volume Ⅲ Supporting Report

(3) Materials prices

Item Products/materials Specifications Price Price applied Cement 9,300-10,000- 10,190 lek/ton 11,274 Sand for concrete 950-1,617 1,280 lek/m3 Materials Gravel for concrete 700 700 lek/m3 Iron (bar, plate) 95,000 95,000 lek/ton

Rifling iron for construction 45,401 45,401 lek/ton

Aluminum Windows 22,503 22,503 lek/m2 Others Man-day cost of workers 1,200 1,200 lek

Rental fee of a lorry/track 3,000 3,000 lek/day

Rental fee of construction machines 5,000 5,000 lek/day (Bulldozer, backhoe etc) Fuel price Gas, petroleum, fuel oil 130 130 lek/liter (heavy oil-light oil) 120 120 lek/liter

Water fee for industrial use 60 60 lek/m3

Material Spec unit Cost(Lek) Steal bar SD 295 D 10 kg 94.2 material SD 295 D 13 kg 94.2 SD 295 D 16 kg 89.5 SD 295 D 19 kg 89.5 SD 295 D 22 kg 89.5 D=10 kg 63.6 D=12 kg 64 D=16 kg 64.6 D=20 kg 64.7 D=22 kg 64.7

From INSTAT Average price 3-d trimester 2005 Material Price applied Steal bar for construction 45,401 lek/ton Cement 11,385 lek/ton Sand 1,617 lek/m3 Bricks 1000 pieces 11,748 lek Plastic pipe 100 leks/kg Plastic pipe 22-26 mm 16 leks/m

From UKT Material Price applied Ready mixed concrete M-200 m3 7,440 lek M-250 m 3 7,600 lek

Excavatio 0.00-1,50m m3 400 n 1,50-3.00m m3 500 3,50-4,50m m3 600 4,50-6 m m3 750 With machinery m3 383 Backfill Manually m3 241

A10 - 25 Volume Ⅲ Supporting Report (4)Electric power supply price

Level of tension Consumer categories Price Lek/kWh Medium voltage Budgetary enterprise 9.4 Non-budgetary, water supply 7 Non-budgetary (oil,cupper,chrom, 8.6 Non budgetary supplied by medium voltage, measured in M.voltage Non budgetary supplied by medium 10.5 voltage, measured in low.voltage Favor showed private – bakery, irrigation pumping station Churches, mosques 11 Media 7 Private supplied by medium voltage, 7 measured in Medium voltage Private supplied by medium voltage, 9 measured in low voltage Average price by medium voltage 10

10.5 8.62

Low voltage Budgetary 10 Non-budgetary, water supply 7.5 Non-budgetary (Oil, Chrome, Cupper, 9.5 Non-budgetary comp. supplied by low 12 Favor showed private bakery, irrigation 7.5 Churches, mosques 8 Normal private 12 Media 9.5 Medium price for low voltage 6.62 Electric supply medium price for 7.01

A10 - 26 Volume Ⅲ Supporting Report

(5) Pipeline earthmoving Italy GermanySwiss Austria 140 Lek/Euro Numbe Item description Unit Quantity Rate Rate Rate Rate average Lek r (€) (€) (€) (€) (€) 2.6 Pipeline earthmoving

2.6.1 Trench excavation in soft or sound rock material for pipeline, according TS clause 4.2 and as shown on drawings from D020FD018 to m3 5.5 1.3 5.8 15.9 7.1 998 D020FD020 and D040FD001 7,866.90

2.6.2 Pipe trench compacted backfilling with class C bedding material, according TS clause 4.2.3 and as shown on drawings from D020FD018 to m3 14.6 9.5 15.2 16.5 14.0 1,955 D020FD020 and D040FD001. 2,759.30

2.6.3 Trench uncompacted filling with excavation material, according TS clause 4.2 and as shown 3 on drawings from D020FD018 to D020FD020. m 2.0 0.8 2.0 3.3 2.0 282 2,311.90

2.6.4 Pipe trench backfilling with blinding concrete class 10/40, according TS clause 4.2 and as shown on 3 drawing from D020FD018 to D020FD020. m 79.3 56.5 82.3 76.2 73.6 10,300

1,963.90

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(6) Day works (EU labour) 25 day/month 7 hr/day Italy Germany Swiss Austlia 140 Lek/Euro Rate Rate Rate Rate Average Average Average No. Item description Unit (€) (€) (€) (€) (€/h) (Lek/d) (Lek/M)

Day works The Contractor is to enter below the rates required for each category of labor listed, in accordance with the principles given in TS and to extend the rates. The Contractor's attention is drawn to Preamble 9.4.15.

9.1 Labour in 9.1.1 Foreman h 25.0 3.9 10.6 12.0 12.9 12,600 315,000

9.1.2 Topo surveyor h 27.0 3.9 11.3 10.8 13.3 13,020 325,500

9.1.3 Skilled workman h 18.0 2.6 7.0 6.0 8.4 8,260 206,500

9.1.4 Laborer h 14.0 1.3 3.2 3.6 5.5 5,460 136,500

9.1.5 Truck Driver h 18.0 3.9 7.0 7.2 9.0 8,820 220,500

9.1.6 Driver h 14.0 2.6 5.8 6.0 7.1 6,930 173,250

9.1.7 Truck operator h 23.0 5.3 9.2 9.6 11.8 11,550 288,750

9.1.8 Provide for labor used in Day works not covered Prov Sum N/A N/A

9.2 Materials in Day works

9.2.1 Provide for materials in Day works Prov Sum N/A N/A 7 Average Rental fee 9.3 Contractor's equipment in Day works (Lek/d) (Lek/h)

9.3.1 Excavator up to 1.1 m3 h 90.0 65.7 39.6 42.0 59.3 8,310 1,187

9.3.2 Rubber tired self propelled vibratory tandem roller 2.5 to h 80.0 32.9 34.8 42.0 47.4 6,640 949 2t/whell 9.3.3 Self propelled vibratory tandem roller 2.5 to 5t h 45.0 39.4 18.0 24.0 31.6 4,420 631

9.3.4 Rubber-tired wheel loader (135 HP) h 65.0 32.9 27.6 30.0 38.9 5,440 777

9.3.5 Dumper truck (<10 ton) h 65.0 32.9 26.4 30.0 38.6 5,400 771

9.3.6 Dumper truck (>10 ton) h 75.0 32.9 32.4 36.0 44.1 6,170 881

9.3.7 Bulldozer > D6 equipped with ripper h 140.0 46.0 58.8 66.0 77.7 10,880 1,554

9.3.8 20 t all terrain mobile crane h 110.0 52.6 46.8 60.0 67.3 9,430 1,347

9.3.9 Tipping lorry up to 25t h 70.0 39.4 30.0 36.0 43.9 6,140 877

9.3.10 Provide for equipment not covered above , used in Day L.S. N/A N/A works

Total Bill n° 9 Day works (Durres) 40000 40000 16000 Carried to Summary

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(7) Process piping (EU prices) 140 Lek/Euro italy Germany Swiss Austlia Number Item description Unit Quantity Rate Rate Rate Rate Ave.Rate converted to Yen (€) (€) (€) (€) (€) 5.1 Process piping 5.1.1 Supply and install of plain steel pipe with external polyethylene coating (PE), internal epoxy lining (400 micron), complete of joint, fittings etc as shown on drawings from D020FD018 to D020FD020: ND 1000 mm Tk 10 mm m 110.0 471.9 426.8 484.3 774.1 539.3 75,500 Lek/m ND 800 mm Tk 8,0 mm m 472.0 307.7 337.6 371.2 494.6 377.8 52,890 Lek/m ND 700 mm Tk 7,1 mm m 210.0 247.6 274.5 309.4 419.0 312.6 43,770 Lek/m ND 600 mm Tk 6,3 mm m 380.0 198.1 219.6 243.1 380.2 260.2 36,430 Lek/m ND 500 mm Tk 6,3 mm m 200.0 169.2 181.2 204.7 295.4 212.6 29,770 Lek/m ND 450 mm Tk 6,3 mm m 160.0 158.5 164.7 183.0 374.1 220.1 30,810 Lek/m ND 400 mm Tk 6,3 mm m 120.0 143.1 145.5 163.2 314.4 191.6 26,820 Lek/m ND 350 mm Tk 6,3 mm m 30.0 127.5 130.4 143.7 327.6 182.3 25,520 Lek/m ND 300 mm Tk 5,9 mm m 77.0 110.6 118.0 119.3 182.6 132.6 18,570 Lek/m ND 200 mm Tk 5,0 mm m 60.0 71.0 68.6 76.6 131.9 87.0 12,180 Lek/m ND 150 mm Tk 4,0 mm m 295.0 48.2 50.8 54.5 88.9 60.6 8,480 Lek/m ND 100 mm Tk 3,2 mm m 295.0 30.6 447.8 36.9 61.8 144.3 20,200 Lek/m ND 65 mm TYK 2,6 mm m 452.0 25.3 19.2 23.2 43.1 27.7 3,880 Lek/m

5.1.2 Supply and install of plain uPVC pipe as UNI EN 1401-1 SN type, complete of pipe testing & cleaning as shown on drawings from D020FD018 to D020FD020: ND 160 mm, Tk 4,0 mm, SN4 m 31.0 13.7 3.6 10.6 27.8 13.9 1,950 Lek/m ND 250 mm, Tk6,2 mm, SN4 m 450.0 23.6 9.6 16.2 55.0 26.1 3,650 Lek/m ND 315 mm, Tk7,7 mm, SN4 m 900.0 32.7 12.7 24.1 90.5 40.0 5,600 Lek/m ND 630 mm, Tk15,4 mm, SN4 m 152.0 100.4 4.5 63.9 145.2 78.5 10,990 Lek/m ND 800 mm, Tk8,0 mm, SN4 m 25.0 177.4 11.4 139.1 168.5 124.1 17,370 Lek/m ND 1000 mm, Tk24,5 mm, SN4 m 55.0 296.1 6.3 221.8 190.5 178.7 25,010 Lek/m

5.1.3 Supply and install of plain HDPE pipe as UNI 12201 , complete of pipe testing & cleaning as shown on drawings from D020FD018 to ND 32 HDPE mm, Tk 3,0 mm, NP 16. m 130.0 3.3 0.5 2.0 8.0 3.4 480 Lek/m

5.2 Valves 5.2.1 Supply and install double flanged ductile iron gate valve, according TS clause 4.3.7 and as shown on drawings from D020FD018 to ND 400 mm, NP 10 bar n° 8.0 1,411.3 2,120.1 2,672.1 2,868.4 2,268.0 317,520 Lek ND 350 mm, NP 10 bar n° 4.0 940.9 1,584.8 2,155.7 2,278.8 1,740.0 243,600 Lek ND 250 mm, NP 10 bar n° 17.0 445.0 510.5 791.5 1,146.7 723.4 101,280 Lek ND 200 mm, NP 10 bar n° 3.0 290.0 326.2 580.7 710.8 476.9 66,770 Lek ND 150 mm, NP 10 bar n° 1.0 177.1 189.7 405.6 480.4 313.2 43,850 Lek ND 100 mm, NP 10 bar n° 6.0 102.0 113.5 270.5 296.8 195.7 27,400 Lek ND 65 mm, NP 10 bar n° 1.0 62.1 95.7 209.0 220.2 146.7 20,540 Lek

5.2.2 Supply and install motorized double flanged ductile iron butterfly valve, including local switchboard, according TS clause 4.3.7 and as shown on drawings from D020FD018 to D020FD020: ND 1000 mm, NP 10 bar n° 2.0 12,825.5 20,766.8 12,666.9 10,593.4 14,213.1 1,989,840 Lek ND 800 mm, NP 10 bar n° 4.0 8,072.9 12,266.9 6,948.0 6,917.4 8,551.3 1,197,180 Lek ND 700 mm, NP 10 bar n° 2.0 6,622.3 12,001.0 6,067.0 6,274.5 7,741.2 1,083,770 Lek ND 600 mm, NP 10 bar n° 6.0 5,670.5 2,180.4 4,436.6 5,577.4 4,466.2 625,270 Lek

5.3 Reed beds piping and valve 5.3.1 Supply and install of plain HDPE pipe as UNI EN 12201, complete of pipe testing & cleaning as shown on drawing D040FD001: a) ND 110 Tk 6,6 mm, NP10 m 1,218.0 11.0 5.6 9.5 19.0 11.3 1,580 Lek/m b) ND 160 mm, Tk 6,2 mm, NP6 m 850.0 15.0 11.6 11.9 38.3 19.2 2,690 Lek/m c) ND 200 Tk 7,7 mm, NP6 m 730.0 20.7 18.2 16.3 49.3 26.1 3,660 Lek/m

5.3.2 Supply and install of plain PVC pipe EN 1401, class sn 4, including fittings and rubber ring joints as shown on drawing D040FD001: a) ND 200 mm, tk.4,0 mm m 375.0 17.9 5.9 8.5 49.3 20.4 2,850 Lek/m b) ND 160 mm, tk.4.0 mm m 1,050.0 13.7 3.6 6.5 27.8 12.9 1,800 Lek/m

5.3.3 Supply and install double flanged ductile iron gate valve including hand wheel command, according TS clause 4.3.7 and as shown on drawings from D030FD007 and D040FD001: a) ND 80 mm NP 10 n 2.0 79.9 95.7 212.2 241.6 157.3 22,030 Lek b) ND 100 mm NP 10 n 42.0 107.5 113.5 254.6 296.8 193.1 27,030 Lek c) ND 200 mm NP 10 n 14.0 281.7 326.2 573.2 710.8 473.0 66,210 Lek

Total Bill n° 5 Pipework Conventional treatment (Durres) Carried to Summary 824512.46 788069.47 1261507.2

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10.3 STP and PS cost estimate for MP 10.3.1project cost estimate in each year FC and LC Case B-3: Two Sewage Treatment Plants Unit: Million Lek 2009 20102011 2012 2013 1st Stage Component FC LC FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer 298 0 298 0 298 298 448 0 448 629 0 629 1,375 298 1,673 Main Sewers 0 70 70 0 70 70 0 118 118 0 118 118 0 376 376 Kashar PS 000000000000 00 0 Kashar STP 0 554 554 458 572 1,030 917 191 1,108 917 209 1,126 2,292 1,526 3,818 Kamza PS 000000000000 00 0 BurxulleSTP 000000000000 00 0 Total of Direct Construction Cost 298 624 922 458 940 1,398 1,365 309 1,674 1,546 327 1,873 3,667 2,200 5,867 Indirect Construction Cost Land Acquisition and Compensation - 3,029 3,029 - 39 39 0 - 3,068 3,068 Administrative Expenses* - 5% - 59 59 59 59 59 59 59 59 59 59 - 293 293 Engineering Services 10% 10% 239 88 327 73 33 106 18 33 51 243 163 406 121 111 232 367 220 587 Physical Contingency 10% 10% 0 92 55 147 92 55 147 92 55 147 92 55 147 367 220 587 Capacity Bilding Cost 0 0 0 32 17 49 32 17 49 32 17 49 96 51 147 Total of Indirect Cost 239 3,176 3,415 165 186 351 142 164 306 367 294 661 245 242 487 830 3,852 4,682 Total Project Cost 239 3,176 3,415 463 810 1,273 600 1,104 1,704 1,732 603 2,335 1,791 569 2,360 4,497 6,052 10,549 The ratio of the administrative expenses is to the total direction cost both foreign and local currency 2009 2010 2011 2012 2013 1st Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Indirect Construction Cost Land Acquisition and Compensation T-K-P STP 46.8 ha T-K-P PS 0.6 ha Administrative Expenses 20% 20% 20% 20% 20% 100% Engineering Service 1st Stage Project 65% 40% 20% 15% 5% 15% 5% 15% 5% 15% 100% 100% Engineering Service 2nd Stage Project 55% 25% 25% 15% Engineering Service 3rd Stage Project Physical Contingency 25% 25% 25% 25% 25% 25% 25% 25% 100% 100%

A10 - 30 Volume III Supporting Report

10.3 STP and PS cost estimate for MP 10.3.1project cost estimate in each year FC and LC Case B-3: Two Sewage Treatment Plants Unit: Million Lek 2014 2015 2016 2017 2nd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer 0 163 163 0 527 527 627 574 1,201 180 116 296 807 1,380 2,187 Main Sewers 0 426 426 0 464 464 0 386 386 0 368 368 0 1,644 1,644 Kashar PS 08080668214813128 159 131 31 162 328 221 549 Kashar STP 0 714 714 590 738 1,328 1,180 246 1,426 1,180 270 1,450 2,950 1,968 4,918 Kamza PS 000000000000 000 BurxulleSTP 000000000000 000 Total of Direct Construction Cost 0 1,383 1,383 656 1,811 2,467 1,938 1,234 3,172 1,491 785 2,276 4,085 5,213 9,298 Indirect Construction Cost Land Acquisition and Compensation - 1,542 1,542 - 8 8 - 1,550 1,550 Administrative Expenses* - 116 116 - 116 116 - 116 116 - 116 116 - 465 465 Engineering Services 20 78 98 20 78 98 111 119 230 62 103 165 409 521 930 Physical Contingency 102 130 232 102 130 232 102 130 232 102 130 232 409 521 930 Capacity Bilding Cost 27936279362793627936 108 36 144 Total of Indirect Cost 149 1,875 2,024 149 341 490 240 374 614 191 358 549 926 3,093 4,019 Total Project Cost 149 3,258 3,407 805 2,152 2,957 2,178 1,608 3,786 1,682 1,143 2,825 5,011 8,306 13,317 The ratio of the administrative expenses is to the total direction cost both foreign and local currency 2014 2015 2016 2017 2nd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Indirect Construction Cost Land Acquisition and Compensation Berxull STP 39.7 ha Kamza PS 0.4 ha Administrative Expenses 25% 25% 25% 25% 100% Engineering Service 1st Stage Project Engineering Service 2nd Stage Project 5% 15% 5% 15% 5% 15% 5% 15% 100% 100% Engineering Service 3rd Stage Project 55% 25% 25% 15% Physical Contingency 25% 25% 25% 25% 25% 25% 25% 25% 100% 100%

A10 - 31 Volume III Supporting Report

10.3 STP and PS cost estimate for MP 10.3.1project cost estimate in each year FC and LC Case B-3: Two Sewage Treatment Plants Unit: Million Lek 20182019 2020 2021 3rd Stage Projects Total Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer 8 229 237 8 165 173 5 36 41 5 24 29 26 454 480 2,208 2,132 4,340 Main Sewers 0 425 425 0 404 404 0 269 269 0 302 302 0 1,400 1,400 0 3,420 3,420 Kashar PS 000000000000 0 0 0 328 221 549 Kashar STP 000000000000 0 0 0 5,242 3,494 8,736 Kamza PS 0494942529483171008319102 208 137 345 208 137 345 BurxulleSTP 0 344 344 283 356 639 568 118 686 568 130 698 1,419 948 2,367 1,419 948 2,367 Total of Direct Construction Cost 8 1,047 1,055 333 977 1,310 656 440 1,096 656 475 1,131 1,653 2,939 4,592 9,405 10,352 19,757 Indirect Construction Cost Land Acquisition and Compensation - 0 0 - 4,618 4,618 Administrative Expenses* - 58 58 - 58 58 - 58 58 - 58 58 - 230 230 - 988 988 Engineering Services 84452844528445284452 165 294 459 941 1,035 1,976 Physical Contingency 41 74 115 41 74 115 41 74 115 41 74 115 165 294 459 941 1,035 1,976 Capacity Bilding Cost 27936000000000 27 9 36 231 96 327 Total of Indirect Cost 76 185 261 49 176 225 49 176 225 49 176 225 357 827 1,184 2,113 7,772 9,885 Total Project Cost 84 1,232 1,316 382 1,153 1,535 705 616 1,321 705 651 1,356 2,010 3,766 5,776 11,518 18,124 29,642 The ratio of the administrative expenses is to the total direction cost both foreign and local currency 2018 2019 2020 2021 3rd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Indirect Construction Cost Land Acquisition and Compensation Administrative Expenses 25% 25% 25% 25% 100% Engineering Service 1st Stage Project Engineering Service 2nd Stage Project Engineering Service 3rd Stage Project 5% 15% 5% 15% 5% 15% 5% 15% 100% 100% Physical Contingency 25% 25% 25% 25% 25% 25% 25% 25% 100% 100%

A10 - 32 Volume III Supporting Report

10.3.2 construction cost of STP and PS allocation of cost to each year Albanian Price Unit: Million Lek

2010 2011 2012 2013 First Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer Main Sewers Kashar PS Kashar STP 0 554 554 458 572 1,030 917 191 1,108 917 209 1,126 2,292 1,526 3,818 Kamza PS BurxulleSTP Total of Direct Construction Cost 1 US$= 107.23 Lek 1 US$= 115.74 Yen 1 Yen= 0.926 Lek Albanian Price Unit: Million Yen 2010 2011 2012 2013 First Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect Kashar PS Mech & Elec Total Civil & Architect 0 577 577 0 577 577 0 144 144 0 144 144 0 1,443 1,443 Kashar STP Mech & Elec 0 21 21 495 41 536 990 62 1,052 990 82 1,072 2,474 206 2,680 Total 0 598 598 495 618 1,113 990 206 1,196 990 226 1,216 2,474 1,649 4,123 Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total Total of Construction Cost 0 598 598 495 618 1,113 990 206 1,196 990 226 1,216 2,475 1,648 4,123

Ratio (%) 2010 2011 2012 2013 First Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect 40 40 40 40 10 10 10 10 100 100 Kashar PS Mech & Elec 0 10 20 20 40 30 40 40 100 100 Total Civil & Architect 40 40 40 40 10 10 10 10 100 100 Kashar STP Mech & Elec 0 10 20 20 40 30 40 40 100 100 Total Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total

A10 - 33 Volume III Supporting Report

10.3.2 construction cost of STP and PS allocation of cost to each year Albanian Price Unit: Million Lek

20142015 2016 2017 2nd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer Main Sewers Kashar PS 0 80 80 66 82 148 131 28 159 131 31 162 328 221 549 Kashar STP 0 714 714 590 738 1,328 1,180 246 1,426 1,180 270 1,450 2,950 1,968 4,918 Kamza PS BurxulleSTP Total of Direct Construction Cost

Albanian Price Unit: Million Yen 20142015 2016 2017 2nd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect 08383083830212102121 0 207 207 Kashar PS Mech & Elec 0 3 3 71 6 77 142 9 151 142 12 154 355 29 384 Total 0 86 86 71 89 160 142 30 172 142 33 175 355 236 591 Civil & Architect 0 744 744 0 744 744 0 186 186 0 186 186 0 1,859 1,859 Kashar STP Mech & Elec 0 27 27 637 53 690 1,274 80 1,354 1,274 106 1,380 3,186 266 3,452 Total 0 771 771 637 797 1,434 1,274 266 1,540 1,274 292 1,566 3,186 2,125 5,311 Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total Total of Construction Cost 0 857 857 708 886 1,594 1,416 296 1,712 1,416 325 1,741 3,540 2,364 5,904

Ratio (%) 2014 2015 2016 2017 2nd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect 40 40 40 40 10 10 10 10 100 100 Kashar PS Mech & Elec 010 2020 4030 4040 100100 Total Civil & Architect 40 40 40 40 10 10 10 10 100 100 Kashar STP Mech & Elec 010 2020 4030 4040 100100 Total Civil & Architect 40 40 40 40 10 10 10 10 100 100 Kamza PS Mech & Elec 010 2020 4030 4040 100100 Total Civil & Architect Burxulle STP Mech & Elec Total

A10 - 34 Volume III Supporting Report

10.3.2 construction cost of STP and PS allocation of cost to each year Albanian Price Unit: Million Lek

2018 2019 2020 2021 3rd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer Main Sewers Kashar PS Kashar STP Kamza PS 0 49 49 42 52 94 83 17 100 83 19 102 208 137 345 BurxulleSTP 0 344 344 283 356 639 568 118 686 568 130 698 1,419 948 2,367 Total of Direct Construction Cost

Albanian Price Unit: Million Yen 2018 2019 2020 2021 3rd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect Kashar PS Mech & Elec Total Civil & Architect Kashar STP Mech & Elec Total Civil & Architect 0 51 51 0 52 52 0 13 13 0 13 13 0 130 130 Kamza PS Mech & Elec 0 2 2 45 4 49 90 5 95 90 7 97 224 18 242 Total 0 53 53 45 56 101 90 18 108 90 20 110 224 148 372 Civil & Architect 0 358 358 0 358 358 0 89 89 0 89 89 0 894 894 Burxulle STP Mech & Elec 13 13 306 26 332 613 38 651 613 51 664 1,533 128 1,661 Total 0 371 371 306 384 690 613 127 740 613 140 753 1,533 1,022 2,555 Total of Construction Cost 0 424 424 351 440 791 703 145 848 703 160 863 1,757 1,169 2,926

Ratio (%) 2018 20192020 2021 3rd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect Kashar PS Mech & Elec Total Civil & Architect Kashar STP Mech & Elec Total Civil & Architect 40 40 40 40 10 10 10 10 100 100 Kamza PS Mech & Elec 010 2020 4030 4040 100100 Total Civil & Architect 40 40 40 40 10 10 10 10 100 100 Burxulle STP Mech & Elec 010 2020 4030 4040 100100 Total

A10 - 35 Volume III S upporting Report

10.3.3 MP STP Direct construction cost (personnel and others for LC) Albanian Price Unit: Million Lek breakdown of LC: personned and other materials

2010 2011 2012 2013 First Stage Component Personnel Others Total Personnel Others Total Personnel Others Total Personnel Others Total Personnel Others Total Direct Construction Cost Trunk Sewer 00000000000000 0 Main+ Branch Sewer 28 42 70 28 42 70 47 71 118 47 71 118 150 226 376 Civil & Architect Kashar PS Mech & Elec Total Civil & Architect 214 320 534 214 320 534 53 80 133 53 80 133 534 800 1,334 Kashar STP Mech & Elec 8 11 19 15 23 38 23 34 57 30 46 76 76 114 190 Total 222 331 553 229 343 572 76 114 190 83 126 209 610 914 1,524 Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total Total of Direct Construction Cost 250 373 623 257 385 642 123 185 308 130 197 327 760 1,140 1,900 1 US$= 107.23 Lek 1 US$= 115.74 Yen 1 Yen= 0.926 Lek Albanian Price Unit: Million Yen 2010 2011 2012 2013 First Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect Kashar PS Mech & Elec Total Civil & Architect 0 577 577 0 577 577 0 144 144 0 144 144 0 1,443 1,443 Kashar STP Mech & Elec 0 21 21 0 41 41 0 62 62 0 82 82 2,474 206 2,680 Total 0 598 598 0 618 618 0 206 206 0 226 226 2,474 1,649 4,123 Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total Total of Construction Cost 0 598 598 0 618 618 0 206 206 0 226 226 0 1,648 4,123

A10 - 36 Volume III S upporting Report

10.3.3 MP STP Direct construction cost (personnel and others for LC) Albanian Price Unit: Million Lek

2014 2015 2016 2017 2nd Stage Component Personnel Others Total Personnel Others Total Personnel Others Total Personnel Others Total Personnel Others Total Direct Construction Cost Trunk Sewer 89 74 163 289 238 527 315 259 574 64 53 117 757 624 1,381 Main+ Branch Sewer 170 186 356 186 278 464 153 230 383 146 219 365 655 913 1,568 Civil & Architect 30 46 76 31 46 77 8 11 19 8 11 19 76 115 191 Kashar PS Mech & Elec 1122463584711111627 Total 31 47 78 33 50 83 11 16 27 12 18 30 87 131 218 Civil & Architect 275 413 688 276 413 689 69 103 172 69 103 172 688 1,033 1,721 Kashar STP Mech & Elec 10 15 25 20 29 49 30 44 74 39 59 98 98 148 246 Total 285 428 713 295 443 738 98 148 246 108 162 270 787 1,180 1,967 Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total Total of Direct Construction Cost 575 735 1,310 803 1,009 1,812 577 653 1,230 330 452 782 2,285 2,849 5,134

Albanian Price Unit: Million Yen 2014 2015 2016 2017 2nd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect 0 83 83 0 83 83 0 21 21 0 21 21 0 207 207 Kashar PS Mech & Elec 0330660990121235529384 Total 0 86 86 0 89 89 0 30 30 0 33 33 355 236 591 Civil & Architect 0 744 744 0 744 744 0 186 186 0 186 186 0 1,859 1,859 Kashar STP Mech & Elec 0 27 27 0 53 53 0 80 80 0 106 106 3,186 266 3,452 Total 0 771 771 0 797 797 0 266 266 0 292 292 3,186 2,125 5,311 Civil & Architect Kamza PS Mech & Elec Total Civil & Architect Burxulle STP Mech & Elec Total Total of Construction Cost 0 857 857 0 886 886 0 296 296 0 325 325 0 2,364 2,364

A10 - 37 Volume III S upporting Report

10.3.3 MP STP Direct construction cost (personnel and others for LC) Albanian Price Unit: Million Lek

2018 2019 2020 2021 3rd Stage Component Personnel Others Total Personnel Others Total Personnel Others Total Personnel Others Total Personnel Others Total Direct Construction Cost Trunk Sewer 126 104 230 90 74 164 19 16 35 13 11 24 248 205 453 Main+ Branch Sewer 170 255 425 162 242 404 108 161 269 121 181 302 561 839 1,400 Civil & Architect Kashar PS Mech & Elec Total Civil & Architect Kashar STP Mech & Elec Total Civil & Architect 19 28 47 19 29 48 5 7 12 5 7 12 48 71 119 Kamza PS Mech & Elec 11222423524671017 Total 20 29 49 21 31 52 7 10 17 7 11 18 55 81 136 Civil & Architect 133 199 332 133 199 332 33 50 83 33 50 83 332 498 830 Burxulle STP Mech & Elec 5 7 12 10 14 24 14 21 35 19 28 47 47 71 118 Total 138 206 344 143 213 356 47 71 118 52 78 130 379 569 948 Total of Direct Construction Cost 454 594 1,048 415 561 976 181 258 439 193 281 474 1,243 1,694 2,937

Albanian Price Unit: Million Yen 2018 2019 2020 2021 3rd Stage Component FC LC Total FC LC Total FC LC Total FC LC Total FC LC Total Sewage Treatment Facilities Civil & Architect Kashar PS Mech & Elec Total Civil & Architect Kashar STP Mech & Elec Total Civil & Architect 0 51 51 0 52 52 0 13 13 0 13 13 0 130 130 Kamza PS Mech & Elec 02204405507722418242 Total 0 53 53 0 56 56 0 18 18 0 20 20 224 148 372 Civil & Architect 0 358 358 0 358 358 0 89 89 0 89 89 0 894 894 Burxulle STP Mech & Elec 0 13 13 0 26 26 0 38 38 0 51 51 1,533 128 1,661 Total 0 371 371 0 384 384 0 127 127 0 140 140 1,533 1,022 2,555 Total of Construction Cost 0 424 424 0 440 440 0 145 145 0 160 160 0 1,169 1,169

A10 - 38 Case B-3: Two Sewage Treatment Plants Unit: Million Lek

1st Stage(2009-2013) 2nd Stage(2014-2017) 3rd Stage(2018-2021) Projects Total Component FC LC Total FC LC Total FC LC Total FC LC Total Direct Construction Cost Trunk Sewer 1,375 298 1,673 807 1,380 2,187 26 454 480 2,208 2,132 4,340 Main Sewers 0 376 376 0 1,644 1,644 0 1,400 1,400 0 3,420 3,420 Kashar PS 000328221549000328221549 Kashar STP 2,292 1,526 3,818 2,950 1,968 4,918 0 0 0 5,242 3,494 8,736 Kamza PS 000000208137345208137345 BurxulleSTP 0000001,419 948 2,367 1,419 948 2,367 Total of Direct Construction Cost 3,667 2,200 5,867 4,085 5,213 9,298 1,653 2,939 4,592 9,405 10,352 19,757 Indirect Construction Cost Land Acquisition and Compensation - 3,068 3,068 - 1,550 1,550 - 0 0 - 4,618 4,618 Administrative Expenses* - 293 293 - 465 465 - 230 230 - 988 988 Engineering Services 367 220 587 409 521 930 165 294 459 941 1,035 1,976 Physical Contingency 367 220 587 409 521 930 165 294 459 941 1,035 1,976 Capacity Bilding Cost 96 51 147 108 36 144 27 9 36 231 96 327 Total of Indirect Cost 830 3,852 4,682 926 3,093 4,019 357 827 1,184 2,113 7,772 9,885 Total Project Cost 4,497 6,052 10,549 5,011 8,306 13,317 2,010 3,766 5,776 11,518 18,124 29,642

A10 - 39 Volume III Supporting Report

10.3.4 Construction cost of STP and PS by phase and FC and LC unit:million yen Project Total 2010-20131st 2014-2017 2nd 2018-202１(2020） 3rd Total FC LC Total FC LC Total FC LC Total FC LC Kamza PS Civil & Architectural 130 0 130 130 0 130 Mechanical & Electrical 242 224 18 242 224 18 Total 372 224 148 372 224 148 Kashar STP Civil & Architectural 3,302 0 3,302 1,443 0 1,443 1,859 0 1,859 Mechanical & Electrical 6,132 5,660 472 2,680 2,474 206 3,452 3,186 266 Total 9,434 5,660 3,774 4,123 2,474 1,649 5,311 3,186 2,125 Ｂerxulle STP Civil & Architectural 894 0 894 894 0 894 Mechanical & Electrical 1,661 1,533 128 1,661 1,533 128 Total 2,555 1,533 1,022 2,555 1,533 1,022 Kashar PS Civil & Architectural 207 0 207 207 0 207 Mechanical & Electrical 384 355 29 384 355 29 Total 591 355 236 591 355 236 Total Costruction Cost 12,952 7,772 5,180 4,123 2,474 1,649 5,902 3,541 2,361 2,927 1,757 1,170

A10 - 40 Volume III Supporting Report

10.3.4 Construction cost of STP and PS by phase and FC and LC見直し unit:million yen Project Total 2010-20131st 2014-2017 2nd 2018-202１(2020） 3rd Total FC LC Total FC LC Total FC LC Total FC LC Kamza PS Civil & Architectural 130 0 130 130 0 130 Mechanical & Electrical 242 224 18 242 224 18 Total 372 224 148 372 224 148 Kashar STP Civil & Architectural 3,302 0 3,302 1,443 0 1,443 1,859 0 1,859 Mechanical & Electrical 6,132 5,660 472 2,680 2,474 206 3,452 3,186 266 Total 9,434 5,660 3,774 4,123 2,474 1,649 5,311 3,186 2,125 Ｂerxulle STP Civil & Architectural 894 0 894 894 0 894 Mechanical & Electrical 1,661 1,533 128 1,661 1,533 128 Total 2,555 1,533 1,022 2,555 1,533 1,022 Kashar PS Civil & Architectural 207 0 207 207 0 207 Mechanical & Electrical 384 355 29 384 355 29 Total 591 355 236 591 355 236 Total Costruction Cost 12,952 7,772 5,180 4,123 2,474 1,649 5,902 3,541 2,361 2,927 1,757 1,170

1Yen= 0.926 Lek

Project Total 2010-20131st 2014-2017 2nd 2018-202１(2020） 3rd Total FC LC Total FC LC Total FC LC Total FC LC Kamza PS Civil & Architectural 120 0 120 120 0 120 Mechanical & Electrical 224 207 17 224 207 17 Total 344 207 137 344 207 137 Kashar STP Civil & Architectural 3,058 0 3,058 1,336 0 1,336 1,721 0 1,721 Mechanical & Electrical 5,678 5,241 437 2,482 2,291 191 3,197 2,950 246 Total 8,736 5,241 3,495 3,818 2,291 1,527 4,918 2,950 1,968 Ｂerxulle STP Civil & Architectural 828 0 828 828 0 828 Mechanical & Electrical 1,538 1,420 119 1,538 1,420 119 Total 2,366 1,420 946 2,366 1,420 946 Kashar PS Civil & Architectural 192 0 192 192 0 192 Mechanical & Electrical 356 329 27 356 329 27 Total 547 329 219 547 329 219 Total Costruction Cost 11,994 7,197 4,797 3,818 2,291 1,527 5,465 3,279 2,186 2,710 1,627 1,083

Replacement(Mechanical & Electrical) Project Total 2010-20131st 2014-2017 2nd 2018-202１(2020） 3rd Total FC LC Total FC LC Total FC LC Total FC LC

Kamza PS 224 207 170000 0022420717 Kashar STP 5,678 5,241 437 2,482 2,291 191 3,197 2,950 246 0 0 0 Ｂerxulle STP 1,538 1,420 1190000 001,538 1,420 119 Kashar PS 35632927000356329270 00 Total 7,796 7,197 599 2,482 2,291 191 3,552 3,279 273 1,762 1,627 135

A10 - 41 Volume III Supporting Report

10.3.5 MP- Kashar PS cost

Kashar PS(for MP)

unit: million yen mechanical and electrical civil and architect remarks construction cost construction cost screen/grit chamber 159 main pump 235 C&A: 35% M&E: 65%

total；A 394 connecting pipes；Ｂ 118 A*30% installation; C 39 A*10% electrical equipment；D 197 A*50% installation；E20A*5% total;F 769 414 1,183 cost in Japan

amended to Albania

construction cost of half the mechanical electrical 384 0.5 equipment Japanese cost civil and architect half the construction cost 207 Japanese cost total construction cost 591 548.0 million Lek

1Yen= 0.926 Lek FCequipment and 710half the 355 million yen other materials Japanese cost 329 million Lek are included

0.5 % of equipment routine repair cost 0.50 1,645 103Lek and materials cost

million yen overall cost of total construction cost : breakdown to FC and LC total FC LC remarks C&A cost 207 0 207 M&E cost 384 355 29 total 591 355 236 note FC includes equipment and other materials (items A, B and D) LC includes installation cost.

million yen breakdown of LC: personnel and other materials total personnel other materials remarks C&A cost 207 83 124 M&E cost 29 12 17 total 236 95 141

note 1)civil and architectural construction cost 207 million yen 40%of civil and architectural construction cost is supposed to be personned cost. 207 *40% = 83 million yen 2)installation cost (items C and E) 59 cost in Japan 29 half the Japanese cost 40%of installation cost is supposed to be personnel cost. 29 *40% = 12 million yen

A10 - 42 Volume III Supporting Report

10.3.6 MP-(1stage)Kashar STP cost

Kashar STP(1stage)

unit: million yen

mechanical and electrical remarks civil and architect construction cost construction cost screen/grit chamber 138 main pump 153 C&A: 35% primary sedimentation tank 101 M&E: 65% trickling filter 869 secondary sedimentation tank 462 chlorination tank 71 thickener 32 digester 526 belt filter press 397

total；A 2,749 connecting pipes；Ｂ 825 A*30% installation; C 275 A*10% electrical equipment；D 1,375 A*50% installation；E 137 A*5% total;F 5,361 2,886 8,247 cost in Japan amended to Albania

construction cost of half the mechanical electrical 2,680 0.5 equipment Japanese cost civil and architect half the 1,443 construction cost Japanese cost total construction cost 4,123 million yen 3,818 million Lek 1Yen= 0.926 Lek equipment and half the foreign currency portion 4,948 2,474 million yen other materials Japanese cost are included 2,291 million Lek

0.5 % of equipment routine repair cost 0.5 11,455 103Lek and materials cost

million yen overall cost of total construction cost : breakdown to FC and LC total FC LC remarks C&A cost 1,443 0 1,443 M&E cost 2,680 2,474 206 total 4,123 2,474 1,649 note FC includes equipment and other materials (items A, B and D) LC includes installation cost.

million yen breakdown of LC: personnel and other materials total personnel other materials remarks C&A cost 1,443 577 866 M&E cost 206 82 124 total 1,649 659 990 note 1)civil and architectural construction cost 1,443 million yen 40%of civil and architectural construction cost is supposed to be personned cost. 1,443 *40% = 577 million yen 2)installation cost (items C and E) 412 cost in Japan 206 half the Japanese cost 40%of installation cost is supposed to be personned cost. 206 *40% = 82 million yen

A10 - 43 Volume III Supporting Report

10.3.7 MP-Kashar STP cost

Kashar STP(for MP)

unit: million yen

mechanical and electrical remarks civil and architect construction cost construction cost screen/grit chamber 175 main pump 258 C&A: 35% primary sedimentation tank 267 M&E: 65% trickling filter 2,317 secondary sedimentation tank 1,230 chlorination tank 78 thickener 53 digester 782 belt filter press 1,130

total；A 6,289 connecting pipes；Ｂ 1,887 A*30% installation; C 629 A*10% electrical equipment；D 3,144 A*50% installation；E 314 A*5% total;F 12,264 6,603 18,867 cost in Japan amended to Albania

construction cost of half the mechanical electrical 6,132 0.5 equipment Japanese cost civil and architect half the 3,302 construction cost Japanese cost total construction cost 9,434 million yen 8,735 million Lek 1Yen= 0.926 Lek equipment and half the foreign currency portion 11,320 5,660 million yen other materials Japanese cost are included 5,241 million Lek

0.5 % of equipment routine repair cost 0.5 26,205 103Lek and materials cost

million yen overall cost of total construction cost : breakdown to FC and LC total FC LC remarks C&A cost 3,302 0 3,302 M&E cost 6,132 5,660 472 total 9,434 5,660 3,774 note FC includes equipment and other materials (items A, B and D) LC includes installation cost.

million yen breakdown of LC: personnel and other materials total personnel other materials remarks C&A cost 3,302 1,321 1,981 M&E cost 472 189 283 total 3,774 1,510 2,264 note 1)civil and architectural construction cost 3,302 million yen 40%of civil and architectural construction cost is supposed to be personned cost. 3,302 *40% = 1,321 million yen 2)installation cost (items C and E) 943 cost in Japan 472 half the Japanese cost 40%of installation cost is supposed to be personned cost. 472 *40% = 189 million yen

A10 - 44 Volume Ⅲ Supporting Report

10.3.8 MP-Kamza PS cost

Kamza PS(for MP)

unit: million yen mechanical and electrical civil and architect remarks construction cost construction cost screen/grit chamber 159 main pump 89 C&A: 35% M&E: 65%

total；A 248 connecting pipes；Ｂ 75 A*30% installation; C 25 A*10% electrical equipment；D 124 A*50% installation；E 12 A*5% total;F 485 261 745 cost in Japan amended to Albania

construction cost of half the mechanical electrical 242 Japanese cost civil and architect construction half the cost 130 Japanese cost total construction cost 372 million yen 344 million Lek 1Yen= 0.926 Lek foreign currency portionequipment and 447half the 224 million yen other Japanese cost 207 million Lek materials are included 0.5 % of equipment routine repair cost 0.50 1,035 103Lek and materials cost

million yen overall cost of total construction cost : breakdown to FC and LC total FC LC remarks C&A cost 130 0 130 M&E cost 242 224 18 total 372 224 148 note FC includes equipment and other materials (items A, B and D) LC includes installation cost. million Lek total FC LC remarks C&A cost 120 0 120 M&E cost 224 207 17 total 344 207 137

million yen breakdown of LC: personnel and other materials total personnel other materials remarks C&A cost 130 0 130 M&E cost 18 7 11 total 148 7 141 note 1)civil and architectural construction cost 130 million yen 40%of civil and architectural construction cost is supposed to be personned cost. 130 *40% =52

2)installation cost (items C,and ) 37 cost in Japan 19 half the Japanese cost 40%of installation cost is supposed to be personned cost. 19 *40% =7million yen

A10 - 45 Volume III Supporting Report

10.3.9 MP- Berxulle STP cost

Berxulle STP( for MP)

unit: million yen civil and mechanical and electrical remarks architect construction cost construction screen/grit chamber 159 main pump 240 C&A: 35％ primary sedimentation tank 148 M&E: 65％ trickling filter 299 secondary sedimentation tank 297 chlorination tank 78 thickener 60 digester 263 belt filter press 158

total；A 1,702 connecting pipes；Ｂ 511 A*30% installation; C 170 A*10% electrical equipment；D 851 A*50% installation；E85A*5% total;F 3,319 1,787 5,107 cost in Japan

amended to Albania construction cost of mechanical half the electrical equipment 1,660 Japanese cost civil and architect construction half the 894 cost Japanese cost total construction cost 2,554 million yen 2,365 million Lek 1Yen= 0.926 Lek

equipment and foreign currency portionother materials 3,064 half the 1,532 million yen are included Japanese cost 1,419 million Lek

0.5 % of equipment routine repair cost 0.5 7,660 103Lek and materials cost

million yen overall cost of total construction cost : breakdown to FC and LC total FC LC remarks C&A cost 894 0 894 M&E cost 1,660 1,532 128 total 2,554 1,532 1,022 note FC includes equipment and other materials (items A, B and D) LC includes installation cost.

million yen breakdown of LC: personnel and other materials total personnel other materials remarks C&A cost 894 358 536 M&E cost 128 51 77 total 1,022 409 613

note 1)civil and architectural construction cost 894 million yen 40%of civil and architectural construction cost is supposed to be personned cost. 894 *40% = 358 million yen 2)installation cost (items C and E) 255 cost in Japan 128 half the Japanese cost 40%of installation cost is supposed to be personned cost. 128 *40% =51million yen

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10.4 FS STP and PS Construction Cost

10.4.1 Basis of Construction Cost Estimate (FS)

unit cost Item unit source (Lek) site leveling m2 50 DPUK demolition m3 3,000 referring to Japanese cost displacement of tower unit 300,000 electric company pile works m 16,000 construction companies excavation m3 500 UKT backfilling m3 250 UKT concrete m3 10,000 UKT reinforcing steel bar ton 100,000 UKT form m2 3,000 referring to Japanese cost

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10.4.2 Cost estimate for civil and architectural works of Kashar STP

unit price cost construction cost unit quantity (lek) (lek) of each facility pumping station area of floor m2 1,220 50,000 61,000,000 10,000*2,124+100,000*170+3,000* subtotal 61,000,000 5,580=54,980, 54,980/1,220=45 grit chamber concrete m3 85 10,000 850,000 steel bar ton 7 100,000 700,000 form m2 450 3,000 1,350,000 subtotal 2,900,000 primary concrete m3 2,240 10,000 22,400,000 sedimentation steel bar ton 180 100,000 18,000,000 tank form m2 5,340 3,000 16,020,000 subtotal 56,420,000 trickling concrete m3 22,870 10,000 228,700,000 filter steel bar ton 1,830 100,000 183,000,000 form m2 22,680 3,000 68,040,000 subtotal 479,740,000 secondary concrete m3 6,110 10,000 61,100,000 sedimentation steel bar ton 490 100,000 49,000,000 tank form m2 6,740 3,000 20,220,000 subtotal 130,320,000 chlorination concrete m3 610 10,000 6,100,000 tank steel bar ton 50 100,000 5,000,000 form m2 2,020 3,000 6,060,000 subtotal 17,160,000 thickener concrete m3 360 10,000 3,600,000 steel bar ton 30 100,000 3,000,000 form m2 920 3,000 2,760,000 subtotal 9,360,000 digester concrete m3 3,300 10,000 33,000,000 steel bar ton 260 100,000 26,000,000 form m2 12,170 3,000 36,510,000 subtotal 95,510,000 dewatering equipment area of floor m2 756 50,000 37,800,000 building subtotal 37,800,000 sludge drying bedconcrete m3 5,400 10,000 54,000,000 subtotal 54,000,000 administration area of floor m2 1,300 50,000 65,000,000 building substation area of floor m2 150 50,000 7,500,000 building generator area of floor m2 150 50,000 7,500,000 building earth works and LS 1 407,326,000 others planting cost LS 1 35,000,000 total (1) 1,466,536,000 small structures LS 1 73,326,800 5% of total (1) total (2) 1,539,862,800 field management 307,972,560 20% of total and overhead round grand total 1,847,835,360 1,848 million Lek

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10.4.3 Cost estimate for earth work and others

Cost for Earth Work unit excavation soil disposal backfilling remarks pumping station m3 8,400 5,000 3,400

Primary sedimentation m3 1,800 1,400 400 tank Trickling filter m3 39,900 26,700 13,200

Secondary sedimentatio m3 47,200 26,400 20,800 tank Chlorination tank m3 6,300 2,700 3,600

Thickener m3 2,000 1,000 1,000

Digester m3 18,100 9,900 8,200

total earth work 123,700 73,100 50,600

Earth work Item Quantity (m3) Unit price(Lek/m3) Cost(Lek） Excavation 123,700 500 61,850,000 Soil disposal 73,100 0 Backfilling 50,600 250 12,650,000 Total 74,500,000

Others unit quantity unit price(Lek) cost(Lek) remarks site leveling m2 468,000 50 23,400,000

demolition of m3 3,150 3,000 9,450,000 existing buildings displacement of tower 3 300,000 900,000 three steel towers pile works m 15,701 16,000 251,216,000 temporary structure for LS 1 47,860,000 47,860,000 pumping station Total 332,826,000

Cost Total of Earth Work and Others (Lek) Earth Works 74,500,000 Others 332,826,000 Total 407,326,000

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10.4.4 Mechanical and Electrical Equipment Cost (FS)

unit: million yen mechanical and electrical construction cost remarks screen/grit chamber 138 two channels main pump 153 primary sedimentation tank 101 12 tanks trickling filter 869 24 filters secondary sedimentation tank 462 9 tanks chlorination tank 71 half the total thickener 32 2 tanks digester 526 8 tanks belt filter press 397 3 units

total；A 2,750 connecting pipes；B 412 A*15% installation; C 275 A*10% electrical equipment；D 825 Ａ*30% installation；E 137 Ａ*5% total；F 4,400 overhead 880 F*20% total consruction cost 5,280

amended to Albania construction cost of mechanical half the elecrical equipment 2,640 Japanese cost

construction cost of mechanical elecrical equipment 2,640 million yen 2,206 million Lek 1Yen= 0.836 Lek foreign currency portion equipment and half the 4,785 2,392 million yen other materials Japanese cost are included 2,000 million Lek 0.5 % of equipment routine repair cost 0.5 10,000 103Lek and materials cost

Mechanical and Electrical cost unit: million Lek overall cost of mechanical and electrical cost : breakdown to FC and LC total FC LC remarks M&E cost 2,206 2,000 206

FC includes equipment and other materials (items A, B and D) LC includes installation cost. unit: million Lek breakdown of LC: personnel and other materials total personnel other materials remarks mechanical and electrical cost 206 82 124 note 1) 40% of LC is for personnel 82

2) civil and architectural construction co 1,848 million Lek 30% of civil and architectural cost is supposed to be personnel cost. 1,848 *30% ＝ 554 10.4.5 Total construction cost of Kashar STP

unit: million Lek total FC LC C&A cost 1,848 0 1,848 M&E cost 2,206 2,000 206 total 4,054 2,000 2,054 contents of LC unit: million Lek overall personnel others C&A cost 1,848 554 1,294 M&E cost 206 82 124 total 2,054 636 1,418

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10.4.6 Piles for Foundation (FS)

Weight of structure concrete and liquid contained in each structure are considered as loading. Bearing capacity per each pile of 600 mm is assumed 90 tons. Referring to the results of geological survey, lengths of piles were determined 13 m for pumping station (including grit chamber), 10 m for primary sedimentation tank, 8 m for trickling filter, 5 m for chlorination tank, 5 m for thickener and 5 m for digester, respectively. Mat foundation with no pile is applied to secondary sedimentation tank, buildings for dewatering equipment, administration, substation and generators. Total lengths of piles are: 57*13 + 132*10 + 1,440*8 + 46*5 + 26*5 + 352*5 = 15,701 (m) Costs for piles including setting are estimated as follows using the unit cost of 16,000 m/Lek provided by UKT. 15,701*16,000 = 251,216,000 (Lek)

Weight of concrete (ton) Liquid (ton) Total weight Number Number Total per tank (ton) of pile of tank Number per tank of pile Pump 30*15*0.8+30*15*0.4*2 ‐ 5,098 57 1 57 building +2(30+15)*13+30*13*0.2 30*15*13(H) +4*15*13*0.2 Slab of 80cm (total)*2.4 =5,098 Floor of 40 cm span of inner wall is 6.0 m Outer wall of for longitudinal and 7.5 m 40cm and inner for sectional directions. wall of 20 cm PST 187*2.4 4*3*40.5 935 11 12 132 =449 =486 TF 953*2.4 (41.52)*0.785 5,329 60 24 1,440 =2,287 *1.5*1.5(filter media)=3,042 SST 679*2.4 (26.22)*0.785 3,516 39 9 No pile =1,630 *3.5 =1,886 Chlorination 606*2.4 4*3.0*224 4,142 46 1 46 Tank =1,454 =2,688 Thickener 179*2.4 (152)*0.785*4 1,137 13 2 26 =430 =707 Digester 413*2.4 (19.62)*0.785 3,946 44 8 352 =991 *9.8= 2,955

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10.4.7 STP major civil structures and architecture quantities

a. Grit Chamber w2.5xL20.5 2.5

Plan 5.9 2.0

5.0 20.5 5.0

30.5

Section

2.0 bt=0.4

(1) Concrete base A= 1/2 x ( 2.0 + 5.9 ) x 2 x 5.0 + 5.9 x 20.5 = 160 m3 bt VB= 160 x 0.4 = 64 m3 n wall L= 31 x 2 + 20.5 + 5.9 x 4 = 105 m Lt Vw = 105 x 0.2 = 21 m3 m3 total = 64 + 21 = 85 ton (2) Steel bar 0.08t/m3 x 85 = 6.8 bt (3) Form base ( 31 + 5.9 ) x 2 x 0.4 = 29.1 2 tanks LH n wal 105 x 2.0 x 2 = 420 m2 m2 total =29.1 +420 = 449

b. Primary Sedimentation Tank w4.0 x H3.0 x L10.5 x 12 tanks

Plan Section A :8Tanks A :4Tanks 95.0 wall-1 91.5 H=4.0 41. wall- L=41.1 2 38.0 17.5

w exp.j

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38.0 = 4.0 x 8 + 3.0 + 0.3 x 10 wall

GL 0. A 41.1 A B

2.0 38.0

38.0 17.

(1) Earth Work A base= ( 41 + 2.0 x 2 )x ( 38.0 x 2.0 x 2 ) excavation = 1,894 m2 A GL= ( 45 + 0.6 x 2 )x ( 42.0 x 0.6 x 2 ) = 2,000 m2

B base= 45 x ( 18 + 2.0 x 2 ) = 969 m2 B GL= 46 x ( 22 + 0.6 x 2 ) = 1,051 m2 Total Abase + AGL + Bbase + BGL = 5,914 m2 average Area = 2,957 m2 m2 ave Area x (h=0.6) =2,957 x 0.6 = 1,774

Soil disposal h VA = 41 x ### x 0.6 = 937 m3 VB = 41 x ### x 0.6 = 431 m3 m3 Total = 1,368 m3 1,368 m3 Backfilling 1,774-= 1,368 406

(2) Concrete LB t base A :8tanks 41 x 38.0 x 0.6 = 937 m3 B :4tanks 41 x 17.5 x 0.6 = 432 m3 base total = 1,369 m3

wall average wall height aveH = 4.0 m L ave H t A B 41 x 4.0 x 0.3 x ( 10 + 5 ) = 740 m3 B ave H t n wall-1 ### x 4.0 x 0.3 x 2 = 91 m3 wall-2 ### x 4.0 x 0.3 x 2 = 42 m3 total wall+wall-1+wall-2 = 873 m3

concrete total1,369 + 873 = 2,242 ton (3) Steel bar 0.08t/m3 x 2,242 = 179

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t (4) Form base A ( 41.1 + 38.0 ) x 2 x 0.5 = 79 m2 base B ( 41.1 + 17.5 ) x 2 x 0.5 = 59 m2 L ave H A B wall 41 x 4.0 x ( 10 + 5 ) x 2 = 4,860 m2 B ave H in, out wall-1 38.0 x 4.0 x 2 x = 304 m2 wall-2 17.5 x 4.0 x 2 x = 140 m2 m2 total wall+wall-1+wall-2 = 5,342 m2 5,342

c. Trickling Filter 24Tanks

Plan Section t= 0.3 φ 41.5 275 +93.8 180 GL+91.0 h= 3.0 3.6 180 95 H= 0.8 +90.8 +90.2 b = 0.6

(1) Earth Work H excavation ( 275 x 180 )+[ ( 275 + 1.6 )x( 180 + 1.6 )] x 0.8 2 m3 = (49,500 + 50,231 )X 1 / 2 x 0.8 = 39,892

Soil disposal H 1tank （ 41.5 + 2 X 0.3 )2 x0.785 x 0.8 = 1,113 m3 m3 Tank number 24 Tanks 24 x1,113 = 26,712 m3 26,712 m3 Backfilling 39,892-= 26,712 13,180

(2) Concrete b 1tank base (41.5 + 2 x 0.3 )2 x0.785 x 0.6 = 834.8 m3 th wall (41.5 + 0.3 ) x3.14 x 0.3 x 3.0 = 118.1 m3 m3 24 Tanks 24 x (834.8 +118.1 )= 22,870 ton (3) Steel bar 0.08t/m3 x 22,870 = 1,830

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(4) Form 1tank (h+b) in and out wall (41.5 + 0.3 ) x3.14 x 3.6 x 2 = 945 m2 m2 24 Tanks 24 x945 = 22,680 d. Secondary Sedimentation Tank 9 tanks 26,20 Plan Section t=300

92 +91.3 30 +91.0 60 h=4. +86.80 30 b=0. H= 5.2 153 30 +85.8

slope 3％ t= 0.6 13.2 x 3/100 = 0.396 86.8 -0.396 - 0.6 = 85.80

(1) Earth Work excavation [ ( 153 x 60 - 30 x 30 ) + ( 153 + 5.2 x 2 ) X(60+10.4 ) - ( 30 + 10.4 )x( 30 + 10.4 ) ] x 1/2 x5.2 m3 = (8280 + 11,503 -1,632 )x 1/2 x 5.2 = 47,193

Soil disposal H 1tank （ 26.2 + 2 x 0.3 )2 x0.785 x 5.2 = = 2,932 m3 m3 9 tanks 9x2,932 = 26,388 m3 26,388 m3 Backfilling 47,193-= 26,388 20,805

(2) Concrete 1tank base 1/3x[(26.2 + 2 x 0.3 )2 xx20.785 - 26.2 2 x 0.785 x 0.396 ] = 1/3 x (1127.64 - 213.4 ) = 305 m3 h wall (26.2 + 0.3 ) x 4.5 x3.14 = 374 m3 m3 9 tanks 9 x (305 + 374 ) = 6,111 ton (3) Steel bar 0.08t/m3 x 6,111 = 489

(4) Form 1tank h in and out wall (26.2 + 0.3 ) x 4.5 x3.14 x 2 = 749 m2 m2 9 Tanks 9 x 749 = 6,741

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e. Chlorination tank

Plan Wall t=0.3 4.0 Section +91.3 GL+91.0 8.9 4.8 +86.5 5.1

4.0 bt=0.6 2.5 56.0 2.0 5.1 59.4

5.1 Section Plan

a b h=5.1 d c 12.9

2.0 59.4 2.0

63.4 63.4

(1) Earth Work h excavation a 63 x 13 x 5.1 = 4,171 hn b 63 x 1/2 x 5.1 x 5.1 x 2 = 1,649 c 13 x 1/2 x 5.1 x 5.1 x 2 = 336 d 1/3 x 1/2 x 5.1 x 5.1 x 5.1 x 8 = 177 m3 Total6,333 6,333 h m3 Soil disposal 59 x 8.9 x 5.1 = 2,696 m3 2,696 m3 Backfilling 6,333 -=2,696 3,637

(2) Concrete t base 59 x 8.9 x 0.6 = 317 m3 wall L1= 59 x 3 - 4 = 174 m L2= 8.9 x 3 = 27 m L1+L2= 201 m

201 x 4.8 x 0.3 = 289 m3 m3 Total= 317 + 289 = 606 ton

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(3) Steel bar 0.08t/m3 x 606 = 48

t (4) Form base ( 59 + 8.9 ) x 2 x 0.6 = 82 m2 hn wall 201 x 4.8 x 2 = 1,929 m2 m2 Total= 82 +1,929 = 2,011

f. Sludge Thickener 2Tanks

Section D=15.0 t=0.3

GL 4.5 h=5.1 2.0 H=2.6

0.6 bt=0.6

(1) Concrete base 3.1 /4x ( ### + 0.3 x 2 )2 x 0.6 = 115 m3 1tank Dt wall 3.1 x ### x 4.5 x 0.3 = 64 m3 total = 179 m3 m3 2 tanks 2x179 = 358 ton (2) Steel bar 0.08 t/m3 x 358 = 29 h (3) Form wall in 3.1 x ( ### + 0.3 x 2 ) x 5.1 = 250 m2 wall out 3.1 x ### x 4.5 = 212 m2 total = 462 m2 m2 2 tanks 2x462 = 924

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g. Sludge Digester D19.6m x H9.8m 8 tanks

Section 0.4 Plan slope 1:1

0.4 D=19.6 46 GL+91. H= 0.8 89.0 92 378 88.0 87.2

slope 10 % 19.6 x 1/2 = 9.8 (radius) 9.8 x 0.1 = 0.98

2H (1) Earth Work [ 92 x 46 + ( 92 +7.56 ) x ( 46 +7.56 )] excavation x 1/2 x3.78 = 18,076

Soil disposal H 1tank （ 19.6+ 2 x 0.4 )2 xx 0.785 3.78 = 1,235 m3 m3 8 tanks 8x1,235 = 9,880 m3 9,880 m3 Backfilling 18,076-= 9,880 8,196

(2) Concrete 1tank base 1/3x[(19.6 + 1.6 )2 xx0.785 1.78 - 19.62 xx] 0.785 0.98 =1/3x ( 628.003 -296 ) = 111 m3 H wall (19.6 + 0.4 ) x 3.14 x 9.8 x 0.4 = 246 m3

top 111 x 1/2 = 56 m3 m3 8 tanks 8 x ( 111 + 246 + 56 )= 3305 ton (3) Steel bar 0.08t/m3 x 3,305 = 264

(4) Form 1tank inner out wall H wall (19.6 + 19.6 + 0.8 )x 3.14 x 9.8 = 1,231 m2

roof (x29.82)2 x 0.785 x 172 / 180 = 290 m2 m2 8 Tanks 8 x (1,231 + 290 )= 12,168

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h. Drying bed area t m3 (2) Concrete 36,000 m2 x 0.2 m = 5,400

j. Demolition of existing buildings

floor 1 wl n t ### x ### x 11 x 0.2 = 2,970 floor 2 wl n t ### x ### x 1 x 0.2 = 180 m3 total =3,150 3,150

k.. Pumping station wL (1)Area floor B2(channel) 9.0 x 30 = 270 B1(floor) 15 x 30 = 450 1F 15 x 30 + 10 x 5 = 500 m2 total = 1,220 1,220

section GL+91.0

V1 8.0 '+83.0

V2 5.0 '+78.0

9.0

15.0 2.0 2.0

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(2) Earth Work excavation BLH m3 ### x ### x 13.0 = 8,398 W Soil disposal V2= 9.0 x ### x 5.0 = 1,350 V1= ### x ### x 8.0 = 3,600 m3 total = 4,950 4,950 m3 Backfilling 8,398-= 4,950 3,448

(3) Temporary structure section H= 13.0 L=16.9m/pil plan

19.0 34.0

plain length L= ( ### + ### ) X 2= 106.0 m

Temporary wall is estimated the cast in place pile pille diameter is 0.6 m

n =106.0 / 0.6 = 177 pile

1pile construction cost =16,000 Lek /m x 17 m/pile = 270,400 Lek/pile Lek Construction cost 177 x270,400 = 47,860,800

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10.5 MP O&M Cost

10.5.1 Sludge Disposal Cost for MP Assumptions: Moisture contents of dewatered sludge and dried sludge are 80% and 40%, respectively. Kashar STP Berxulle STP Dewatered sludge Dry basis ton/day 16.48 ‐ Wet basis ton/day 82.15 ‐ Dried sludge Dry basis ton/day 5.48 4.48 Wet basis ton/day 9.13 7.47 Total Wet basis ton/day 91.28 7.47

The distance between STP and disposal site Kashar STP: 10km to the southern solid waste dumping site proposed in World Bank’s Strategic Plan Berxulle STP: 15km to the northern site in the Strategic Plan

Conveyance cost: 25 Lek/ton/km (source: DPUK) Loading cost: 5,000 Lek/day, 0.6 m3/day, 15minutes for one loading Leveling: 5,000/day, 21 m3 bulldozer, 710 m3/day

Kashar STP: 35,000 + 23,000 + 5,000 = 63,000 Lek/day, 63,000/91.28 = 690 Lek/ton Loading 91.28/0.6 = 153 (times), 153/(4*6) = 7 (units), 7*5,000 = 35,000 Lek/day Conveyance 92*10 (km) *25 = 23,000 Lek/day Leveling 5,000 Lek/day

Berxulle STP: 5,000 + 3,000 + 5,000 = 13,000 Lek/day, 13,000/7.47 = 1,740 Lek/day Loading 7.47/0.6 = 13 (times), 13/(4*6) = 1 (unit), 13,000/7.47 = 1,740 Lek/day Conveyance 8 * 15 (km) * 25 = 3,000 Lek/day Leveling 5,000 Lek/day

Weighed average of disposal costs for two STPs is, (63,000＋13,000)/(91.28＋7.47)＝ 769Lek/(wet basis ton). Hence, unit disposal cost is to be 800 Lek/(wet basis ton).

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10.5.2 MP ORGANIZATION CHART FOR O&M

Director (1)

administration water quality STP operation STP maintenance O&M of PS (6) sewer maintenance (59) (7) (5) (37) (5)

manager (1) engineer (1) Kashar (24) Kashar (3) Kashar (3) sewer inspection (7) engineer (2) chemist (3) engineer (1) mechanics (1) mechanics (1) manager (1) driver (2) driver (1) foreman (1) worker (2) operator (2) foreman (1) secretary (2) mechanics (2) Berxull (2) Kamza (3) driver (2) operator (16) mechanics (1) mechanics (1) worker (3) worker (4) worker (1) operator (2) sewer cleaning & repairs (52) Berxull (13) foreman (6) engineer (1) driver (15) foreman (1) worker (31) mechanics (1) operator (8) worker (2)

A10 - 62 10.5.3 O&M Personnel Cost for Master Plan

Division/section Job class Nos. of M-M Unit cost MP

Names (Phases I, II, III) lek/M-M lek/M-M

O/M division Director 1(1, 1, 1) 80,000 80,000

Administration manager 1(1, 1, 1) 60,000 60,000

engineer 2(1, 1, 2) 40,000 80,000

driver 2(1, 1, 2) 25,000 50,000

secretary 2(1, 1, 2) 25,000 50,000

Water quality engineer 1(1, 1, 1) 40,000 40,000

chemist 3(1, 2, 3) 30,000 90,000

driver 1(1, 1, 1) 25,000 25,000

STP Operation engineer 2(1, 1, 2) 40,000 80,000

Foreman 2(1, 1, 2) 30,000 60,000

mechanics 3(1. 2, 3) 30,000 90,000

Operator 24(8, 16, 24) 25,000 600,000

worker 6(2, 4, 6) 20,000 120,000

STP maintenance mechanics 2(1, 1, 2) 30,000 60,000

Worker 3(1, 2, 3) 20,000 60,000

O&M of pumps mechanics 2(0, 1, 2) 30,000 60,000

operator 2(0, 1, 2) 25,000 50,000

Worker 2(0, 1, 2) 20,000 40,000

Sewer inspection manager 1(1, 1, 1) 60,000 60,000

foreman 1(1, 1, 1) 30,000 30,000

driver 2(2, 2, 2) 25,000 50,000

Worker 3(2, 2, 3) 20,000 60,000

Sewer cleaning Foreman 6(2, 4, 6) 30,000 180,000

Driver 15(4, 11, 15) 25,000 375,000

Worker 31(11, 23, 31) 20,000 620,000

Total (per month) 120(46, 83, 120) 3,070,000 Total 36,840 (Thousand Lek per year)

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10.5.4 Cleaning of sewer (MP) Operation and Maintenance Cost Estimate Guideliens -for Sewers- Japan Sewage Works Association 1993 Distance between houses 20 m Cleaning works personnel working hours sewer 6 person/day 8 hr/day house connecton 4 person/day 8 hr/day inspection chamber 4 perrson/day 8 hr/day

cleaning water task remarks sewer 22.5 m3/day as attached house connecton 0.06 m3/point 80 point/day operation of small high presseure cleaner inspection chamber 1.8 m3/day 150 point/day 0.5 man-day, 40 point/day 80 points /day for cleaning only sewer fuel fuel output working hours consumption l/ps hr ps hr l/day high pressure cleaner 0.025 195 6 29.25 solids suction machine 0.035 195 6 40.95 water tanker 0.029 165 6 28.71 total 98.91 light oil ＝ 100.0 l/day house connection and inspection chamber working fuel fuel output hours consumption l/ps hr ps hr l/day small high pressure cleaner 0.117 8 6 5.62 conveyance of collected deposits fuel dump truck（４ｔ） output capacity distance consumption light oil l/ps hr ps 0.71 hr/m3 10 km 0.039 182 1.07 hr/m3 20 km

A10 - 64 Volume Ⅲ Supporting Report capacity and cost

sewer cleaning conveyance 1.07 hr/m3 cost yen/m diameter task personnel water light oil deposits time light oil personnel water fuel total m/day man-day/ｍ l/m l/m m3/day hour/day l/day l/m 200 1,035 0.0058 21.74 0.10 0.611 0.65 4.64 0.004 110.7 3.5 8.1 122 250 1,035 0.0058 21.74 0.10 0.952 1.02 7.23 0.007 110.7 3.5 8.3 122 300 1,035 0.0058 21.74 0.10 1.366 1.46 10.37 0.010 110.7 3.5 8.5 123 350 895 0.0067 25.14 0.11 1.611 1.72 12.24 0.014 128.0 4.0 10.0 142 400 810 0.0074 27.78 0.12 1.904 2.04 14.46 0.018 141.5 4.4 11.3 157 450 710 0.0085 31.69 0.14 2.109 2.26 16.02 0.023 161.4 5.1 13.1 180 500 630 0.0095 35.71 0.16 2.312 2.47 17.56 0.028 181.9 5.7 14.9 203 600 375 0.0160 60.00 0.27 1.984 2.12 15.07 0.040 305.6 9.6 24.5 340 700 305 0.0197 73.77 0.33 2.193 2.35 16.66 0.055 375.7 11.8 30.6 418 applied average 759 0.0095 35.48 0.16 1.671 1.79 12.69 0.02 180.7 5.7 14.4 201

Cleaning conveyance 1.07 hr/m3 cost yen/m task personnel water light oil deposits time light oil personnel water light oil total point/day man-day/ｍ l/point l/point m3/day hour/day l/day l/point yen/point yen/poit yen/point yen/point house connection 80 0.0500 60.00 0.07 0.581 0.62 4.41 0.055 955.0 9.6 10.0 975 inspection chamber 150 0.0267 12.00 0.04 0.581 0.62 4.41 0.029 509.3 1.9 5.3 517 supposing the diameter of 200 mm and the ratio of deposits to sewer inner volume of 5% man hole of 600 mm cleaning conveyance 0.581 hr/m3 cost yen/m diameter task personnel water light oil deposits time light oil personnel water light oil total m/day ma-day/ｍ l/m l/m m3/day hour/day l/day l/m 600 375 0.0160 60.00 0.27 1.984 2.12 15.07 0.040 305.6 9600.0 24.5 9,930

0.048 person/point depth 3 ｍ 29,790 yen/point

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10.5.5 Total personnel and cost of sewer operation and maintenance (MP) gravity sewer Albanian Price JPY 1. Assumptions yearly cost repair 19,442 1,000 yen/year 74.78 yen/m/y length of sewer 260,000 ｍ time for transfer excluding cleaning 364 1,000 yen/year 1.40 yen/m/y population density - person/ha regular check － minute/point personnel inspection 490 1,000 yen/year 1.88 yen/m/y sewered area - ha emergency sewer 30 minute/point cost total 854 1,000 yen/year number of household 10,000 household manhole 30 minute/point per meter 0.0033 1,000 yen/year/m average distance betw 26.0 ｍ house conection 30 minute/point 3.3 yen/year/m working time per day 8 hour/day inspection cnamber 30 minute/point

2. Breakdown of O&M works （person/year） O&M inspection cleaning visual check TV survey repair emergency total per year in 50 years (patrol) (inside the facility) (packer/liner) maximum 1216.0 11554.3 1520.0 683.3 8786.6 37.9 25,326 average 291.8 2208.1 364.8 558.3 3985.1 37.9 7,766 minimum 121.6 1155.4 152.0 111.7 2675.6 37.9 4,364 average 1.46 11.04 1.82 2.79 19.93 0.19 38.83

3. Costr estimate in 50 years 1,000 yen/year maximum average minimum personnel water, cement light oil gasoline kerosene total personnel water, cement light oil gasoline kerosene total personnel water, cement light oil gasoline kerosene total total in 50 years 1,188,326 8,873,225 327,175 113,112 34,151 10,535,989 344,898 4,016,079 103,191 36,987 15,489 4,516,644 147,977 2,691,563 44,838 14,159 10,399 2,908,936 early average in 50 yea 23,767 177,465 6,544 2,262 683 210,720 6,898 80,322 2,064 740 310 90,333 2,960 53,831 897 283 208 58,179 ratio（％） 11.3 84.2 3.1 1.1 0.3 100.0 7.6 88.9 2.3 0.8 0.3 100.0 5.1 92.5 1.5 0.5 0.4 100.0 inspection cleaning repair total inspection cleaning repair total inspection cleaning repair total total in 50 years 713,199 753,800 9,068,990 10,535,989 234,530 168,931 4,113,182 4,516,644 71,320 76,043 2,761,573 2,908,936 early average in 50 yea 14,264 15,076 181,380 210,720 4,691 3,379 82,264 90,333 1,426 1,521 55,231 58,179 ratio（％） 6.8 7.2 86.1 100.0 5.2 3.7 91.1 100.0 2.5 2.6 94.9 100.0

4. Cost estimate in 100 years 1,000 yen/year maximum average minimum personnel water, cement light oil gasoline kerosene total personnel water, cement light oil gasoline kerosene total personnel water, cement light oil gasoline kerosene total total in 100 years 6,867,449 301,078,625 2,542,074 673,472 1,165,071 312,326,691 2,754,471 15,654,469 1,078,265 280,055 528,411 20,295,671 1,663,434 91,659,823 664,501 164,509 354,772.7 94,507,039 arly average in 100 yea 68,674 3,010,786 25,421 6,735 11,651 3,123,267 27,545 156,545 10,783 2,801 5,284 202,957 16,634 916,598 6,645 1,645 3,548 945,070 ratio（％） 2.2 96.4 0.8 0.2 0.4 100.0 13.6 77.1 5.3 1.4 2.6 100.0 1.8 97.0 0.7 0.2 0.4 100.0 inspection cleaning repair total inspection cleaning repair total inspection cleaning repair total total in 100 years 1,426,399 1,507,600 309,392,692 312,326,691 489,927 364,235 19,441,510 20,295,671 142,640 152,087 94,212,312 94,507,039 arly average in 100 yea 14,264 15,076 3,093,927 3,123,267 4,899 3,642 194,415 202,957 1,426 1,521 942,123 945,070 ratio（％） 0.5 0.5 99.1 100.0 2.4 1.8 95.8 100.0 0.2 0.2 99.7 100.0

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10.5.6 Total of personnel and cost of sewer operation and maintenance 0.836 Lek/yen gravity sewer Albanian Price JPY 1. Assumptions yearly cost repair 4,897 1,000 yen/year 148.41 yen/m/y 124.07 Lek/m/y sewer length 33,000 ｍ time for transfer excluding cleaning 69 1,000 yen/year 2.08 yen/m/y 1.74 population density - person/ha. regular check － minute/point personnel inspection 110 1,000 yen/year 3.33 yen/m/y 2.78 sewer length - ha emergency sewer 30 minute/point cost total 178 1,000 yen/year number of households 3,000 household manhole 30 minute/point per meter 0.0054 1,000 yen/year/m average distance betwee 11.0 ｍ house connection 30 minute/point 5.4 yen/year/m working time a day 8 hour/day inspection chamber 30 minute/point

2. Breakdown of O&M works （person／year） O&M inspection cleaning visual check TV survey repair emergency total per year in 50 years (patrol) (inside the facility) (packer/liner) maximum 292.8 1685.7 366.0 130.0 1155.5 12.3 3,936 average 70.3 298.1 87.8 92.5 524.1 12.3 1,149 minimum 29.3 168.6 36.6 18.5 351.9 12.3 641 average 0.35 1.49 0.44 0.46 2.62 0.06 5.75

3. Cost estimate in 50 years 1,000 yen/year maximum average minimum personnel water, cement light oil gasoline kerosene total personnel water, cemen light oil gasoline kerosene total personnel water, cement light oil gasoline kerosene total total in 50 years 227,571 1,260,693 80,809 37,856 10,370 1,617,299 64,466 570,621 25,836 11,679 4,703 677,306 27,844 382,472 11,686 4,505 3,158 429,665 yearly average in 50 year 4,551 25,214 1,616 757 207 32,346 1,289 11,412 517 234 94 13,546 557 7,649 234 90 63 8,593 ratio（％） 14.1 78.0 5.0 2.3 0.6 100.0 9.5 84.2 3.8 1.7 0.7 100.0 6.5 89.0 2.7 1.0 0.7 100.0 inspection cleaning repair total inspection cleaning repair total inspection cleaning repair total total in 50 years 168,156 141,039 1,308,104 1,617,299 52,156 31,867 593,282 677,306 16,816 14,522 398,327 429,665 yearly average in 50 year 3,363 2,821 26,162 32,346 1,043 637 11,866 13,546 336 290 7,967 8,593 ratio（％） 10.4 8.7 80.9 100.0 7.7 4.7 87.6 100.0 3.9 3.4 92.7 100.0

4. Cost estimate in 100 years 1,000 yen/year maximum average minimum personnel water, cement light oil gasoline kerosene total personnel water, cemen light oil gasoline kerosene total personnel water, cement light oil gasoline kerosene total total in 100 years 1,212,796 42,784,379 705,258 188,754 353,767 45,244,954 478,111 4,059,653 301,817 75,839 160,449 5,075,868 286,399 13,025,317 188,914 43,433 107,724.5 13,651,787 early average in 100 yea 12,128 427,844 7,053 1,888 3,538 452,450 4,781 40,597 3,018 758 1,604 50,759 2,864 130,253 1,889 434 1,077 136,518 ratio（％） 2.7 94.6 1.6 0.4 0.8 100.0 9.4 80.0 5.9 1.5 3.2 100.0 2.1 95.4 1.4 0.3 0.8 100.0 inspection cleaning repair total inspection cleaning repair total inspection cleaning repair total total in 100 years 336,312 282,077 44,626,565 45,244,954 109,769 68,667 4,897,432 5,075,868 33,631 29,044 13,589,112 13,651,787 early average in 100 yea 3,363 2,821 446,266 452,450 1,098 687 48,974 50,759 336 290 135,891 136,518 ratio（％） 0.7 0.6 98.6 100.0 2.2 1.4 96.5 100.0 0.2 0.2 99.5 100.0

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10.5.7 OM cost basis

Basis of Operation and Maintenance Cost Estimate a. Personnel cost (source: UKT) unit price Item unit (Lek) director man-month 80,000 manager man-month 60,000 engineer man-month 40,000 foreman man-month 30,000 operator man-month 25,000 chemist man-month 30,000 mechanic man-month 30,000 driver man-month 25,000 worker man-month 20,000 b. Electricity Electricity necessary to operate mechanical equipment is calculated taking daily operational hours into account. Daily electricity requirements are multiplied by unit electricity cost provided by UKT of 8.3 Lek/kWH. c. Chemicals Sodium hypochlorite is used to disinfect the effluent. Its unit cost is 42 Lek/kg which is applied at water treatment plant in Tirana. Polymer for sludge dewatering is 800 Lek/kg referring to the price in Japan. As for the chemicals and other consumables for water quality test, contract-out cost for water qualities test of major parameters in Albania is surveyed, which is 4,100,000 Lek/year. Then, taking into account the overall ratio of chemicals and consumables costs to water quality test cost in Japan, 820,000 Lek/year (20% of the contract-out cost) is applied. d. Sludge disposal cost Sludges produced in a sewage treatment plant are conveyed to and disposed of at a designated disposal site. The solid waste dumping site proposed in the World Bank's Strategic Plan is supposed to be sludge disposal site. Including loading, conveyance and leveling costs, sludge disposal cost is 800 Lek/ton. e. Routine repair cost Routine repair cost includes lubrication, purchase and installation of spare parts and so on. It is empirically 0.5% of mechanical and electrical equipment cost per annum. (2,000 million Lek)*0.005 = 10 million Lek/year f. Sewer O&M cost except for personnel cost as attached

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10.5.8 Power Consumption

Power consumption is calculated based on the operational hours of mechanical equipment.

Kashar-STP Qa= 207,400 m3/day power consumption name of equipment (kWh/day) screens and grit chamber 151.8 main pumps 8,641.2 primary sedimentation tank 540.8 trickling filter 0.0 secondary sedimentation tank 569.6 chlorination tank 28.8 sludge thickener 202.4 sludge digester 2,562.0 dewatering equipment 970.3 total(A) 13,667 Power consumption(B)= 4,988,419 =(A)×365kw/year (B)/Qa = 24.03 (kw/year/m3/day)

Berxull-STP Qa= 42,500 m3/day power consumption name of equipment (kWh/day) screens and grit chamber 144 main pumps 1,674 primary sedimentation tank 436 trickling filter 0 secondary sedimentation tank 242 chlorination tank 163 sludge thickener 114 sludge digester 908 dewatering equipment 0 total(A) 3,681 Power consumption(B） 1,343,740 =(A)×365kw/year (B)/Qa = 31.61 (kw/year/m3/day)

Kamza-PS Kashar-PS Qa= 28,800 m3/day Qa= 121,300 m3/day power consumption power consumption name of equipment (kWh/day) (kWh/day) screens and grit chamber 97 97 main pumps 864 17,284 total(A) 961 17,381

Power consumption(B）= 321,018 =(A)×365kw/year (B)= 6,343,883 =(A)×365kw/year (B)/Qa = 10.35 (kw/year/m3/day) (B)/Qa = 50.73 (kw/year/m3/day)

A10 - 69 10.5.9 MP O&M cost detail

Sewage flow per year(Average.Daily :m3/day)

Each year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Kashar-STP 78,084 79,112 80,139 81,167 178,660 183,299 187,996 192,754 206,920 206,920 Kashar-PS 79,110 81,794 84,520 87,288 89,381 89,381 kamza-PS 33,871 33,871 Berxulle-STP 43,080 43,080 inflow in STP 78,084 79,112 80,139 81,167 178,660 183,299 187,996 192,754 250,000 250,000

Power Consumption comsumption per year (lek/year) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Kashar-STP 1,876,358 1,901,061 1,925,740 1,950,443 4,293,199 4,404,674 4,517,543 4,631,878 4,972,287 4,972,287 Kashar-PS 0 0 0 0 4,013,250 4,149,409 4,287,699 4,428,120 4,534,298 4,534,298 kamza-PS 0 0 0 0 0 0 0 0 350,564 350,564 Berxulle-STP 0 0 0 0 0 0 0 0 1,361,758 1,361,758 Total 1,876,358 1,901,061 1,925,740 1,950,443 8,306,449 8,554,083 8,805,242 9,059,998 11,218,907 11,218,907

Hypochlorinate for chlorination consumption per year ( kg/year) Kashar-STP 114,002 115,503 117,002 118,503 260,843 267,616 274,474 281,420 302,103 302,103 Kashar-PS 0 0 0 0 0 0 0 0 0 0 kamza-PS 0 0 0 0 0 0 0 0 0 0 Berxulle-STP 0 0 0 0 0 0 0 0 62,896 62,896 Total 114,002 115,503 117,002 118,503 260,843 267,616 274,474 281,420 364,999 364,999

Polymer fo sludge dewatering consumption per year sludge for dewatering(t/day) 2.68 2.79 2.90 3.01 13.41 13.91 14.41 14.92 16.43 16.43 Polymer fo sludge dewatering(t/day) 0.027 0.028 0.029 0.030 0.134 0.139 0.144 0.149 0.164 0.164 Polymer fo sludge dewatering(t/year) 9.782 10.182 10.583 10.983 48.961 50.768 52.598 54.451 59.970 59.970

A10 - 70 Power Consumption personel cost Polymer for sludge dewatering Kahar-STP dewatered sludge Electric stage Lek/year ｋｗ/year/Qa First 37,120,000 t/day m3/day year Kashar-STP 24.03 Second 66,340,000 (A) 16.43 (D) 206,920 2022 Kashar-PS 50.73 Third 92,040,000 (B) 2.68 (E) 78,084 2014 kamza-PS 10.35 0.000106725 ={(A)-(B)}/{(D)-(E)} Berxulle-STP 31.61 unit cost 800 Lek/kg power unit cost 8.3 lek/kw (source: UK,12.2005) Sludge disposal

Hypochlorinate consumption for chlorination unit cost 800 Lek/wet-ton Qaｘ4ｘ10-3(kg/day)ｘ365(day/year） for Qd for Qa 1.46 Qa-kg/year DB-t/day DB-t/day MC(%) wet.ton Kahar-STP dewatered sludge 20.54 16.43 80 82.16 unit cost 42 lek/kg (2022-) dried sludge 6.85 5.48 40 9.13 91.29 91.29 × 365 × 800 = 26,657,653 Lek/year Dewatered sludge(2) calculation Berxulle-STP dewatered sludge 5.60 4.48 80 7.47 t/day m3/day year 98.76 dewatered sludge 82.16 206,920 2022 (2022-) 98.76 × 365 × 800 = 28,837,920 Lek/year dewatered sludge 13.40 78,084 2014 0.00053370 =(82.16-13.40)/(206,920-78,084)

Sludge disposal Each year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Kshar- STP dried sludge(1) 9.13 9.13 9.13 9.13 9.13 9.13 9.13 9.13 9.13 9.13 dewatered sludge(2) 13.40 13.95 14.50 15.05 67.08 69.55 72.06 74.60 82.16 82.16 Beruxlle-STP dried sludge(3) 7.47 7.47 total(t/day)(4)=(1)+(2)+(3) 22.53 23.08 23.63 24.18 76.21 78.68 81.19 83.73 98.76 98.76 total(t/year)(5)=365x'(4) 8,223 8,424 8,624 8,824 27,816 28,719 29,634 30,561 36,047 36,047

personel cost Each year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total(103Lek） 37,120 37,120 37,120 37,120 66,340 66,340 66,340 66,340 92,040 92,040

Total O&M Cost unit:103Lek Each year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Power Consumption 15,573 15,778 15,983 16,188 68,943 70,998 73,083 75,197 93,116 93,116 Hypochlorinate for Chlorination 4,788 4,851 4,914 4,977 10,955 11,239 11,527 11,819 15,329 15,329 Polymer for sludge dewatering 7,825 8,145 8,466 8,786 39,168 40,614 42,078 43,560 47,975 47,975 Personnel cost 37,120 37,120 37,120 37,120 66,340 66,340 66,340 66,340 92,040 92,040 Rutine Equipment Repair 10,427 10,427 10,427 10,427 27,849 27,849 27,849 27,849 47,129 47,129 Water Quality Analysis 660 660 660 660 820 820 820 820 1,640 1,640 Sludge Disposal 6,579 6,739 6,899 7,059 22,253 22,976 23,708 24,449 28,838 28,838 O&M and Repair for Sewers 21,072 23,852 27,945 30,808 33,944 36,857 38,812 40,911 40,911 40,911 Total 104,044 107,572 112,414 116,025 270,272 277,693 284,217 290,945 366,978 366,978

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10.6 FS O&M Cost 10.6.1 Sludge Disposal Cost (at FS stage)

Assumptions: Moisture content of dewatered sludge of 80% and that of dried sludge of 40%

Kashar STP Dewatered sludge Dry basis ton/day 3.56 Wet basis ton/day 17.80 Dried sludge Dry basis ton/day 5.48 Wet basis ton/day 9.13 Total (wet basis ton/day) 26.93

The distance between the STP and the disposal site is 10km supposing that the sludges produced at the STP are conveyed to and disposed of at the solid waste dumping site proposed by the World Bank funded Strategic Plan.

Loading cost: by backhoe of 0.6 m3, 5,000 Lek/day for 6 hour operation, one loading taking 15 minutes Conveyance cost: 25 Lek/ton/km (source:DPUK) Leveling cost: by bulldozer of 21 m3 class, 5,000 Lek/day, capacity of 710 m3/day

10,000 + 6,750 + 5,000 = 21,750 Lek/day 21,750/26.93 = 808, or approximately 800 Lek/ton

Loading 26.93/0.6 = 45 (times), 45/(4*6) = 2 (units), 2*5,000 = 10,000 Lek/day Conveyance 27*10(km)*25 = 6,750 Lek/day Leveling 5,000 Lek/day

A10 - 72 10.6.2 FS Organizational Chart of O&M

Director (1)

administration (4) water quality (3) STP operation (13) STP maintenance (2) O&M of PS (0) sewer maintenance (23) manager (1) engineer (1) Kashar (13) Kashar (2) Kashar (0) sewer inspection (6) engineer (1) chemist (1) engineer (1) mechanics (1) mechanics (0) manager (1) driver (1) driver (1) foreman (1) worker (1) operator (0) foreman (1) secretary (1) mechanics (1) driver (2) operator (8) worker (2) worker (2) sewer cleaning & repairs (17) foreman (2) driver (4) worker (11)

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10.6.3 O&M Personnel Cost for Feasibility Study

Division/section Job class Nos. of M-M Unit cost FS

Names (Phases I, II, III) lek/M-M Lek/M-M

O/M division Director 1(1, 1, 1) 80,000 80,000

Administration manager 1(1, 1, 1) 60,000 60,000

engineer 2(1, 1, 2) 40,000 40,000

driver 2(1, 1, 2) 25,000 25,000

secretary 2(1, 1, 2) 25,000 25,000

Water quality engineer 1(1, 1, 1) 40,000 40,000

chemist 3(1, 2, 3) 30,000 30,000

driver 1(1, 1, 1) 25,000 25,000

STP Operation engineer 2(1, 1, 2) 40,000 40,000

Foreman 2(1, 1, 2) 30,000 30,000

mechanics 3(1. 2, 3) 30,000 30,000

Operator 24(8, 16, 24) 25,000 200,000

worker 6(2, 4, 6) 20,000 40,000

STP maintenance mechanics 2(1, 1, 2) 30,000 30,000

Worker 3(1, 2, 3) 20,000 20,000

O&M of pumps mechanics 2(0, 1, 2) 30,000 0

operator 2(0, 1, 2) 25,000 0

Worker 2(0, 1, 2) 20,000 0

Sewer inspection manager 1(1, 1, 1) 60,000 60,000

foreman 1(1, 1, 1) 30,000 30,000

driver 2(2, 2, 2) 25,000 50,000

Worker 3(2, 2, 3) 20,000 40,000

Sewer cleaning Foreman 6(2, 4, 6) 30,000 60,000

Driver 15(4, 11, 15) 25,000 100,000

Worker 31(11, 23, 31) 20,000 220,000

Total (per month) 120(46, 83, 120) 1,510,000 Total 18,120 (Thousand Lek per year)

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10.6.4 Basis of Operation and Maintenance Cost Estimate (FS)

Basis of Operation and Maintenance Cost Estimate

a. Personnel cost (source: UKT) unit price Item unit (Lek) director man-month 80,000 manager man-month 60,000 engineer man-month 40,000 foreman man-month 30,000 operator man-month 25,000 chemist man-month 30,000 mechanic man-month 30,000 driver man-month 25,000 worker man-month 20,000

b. Electricity Electricity necessary to operate mechanical equipment is calculated taking daily operational hours into account. Daily electricity requirements are multiplied by unit electricity cost provided by UKT of 7 Lek/kWH.

c. Chemicals Sodium hypochlorite is used to disinfect the effluent. Its unit cost is 42 Lek/kg which is applied at water treatment plant in Tirana. Polymer for sludge dewatering is 800 Lek/kg referring to the price in Japan. As for the chemicals and other consumables for water quality test, contract-out cost for water qualities test of major parameters in Albania is surveyed, which is 4,100,000 Lek/year. Then, taking into account the overall ratio of chemicals and consumables costs to water quality test cost in Japan, 820,000 Lek/year (20% of the contract-out cost) is applied.

d. Sludge disposal cost Sludges produced in a sewage treatment plant are conveyed to and disposed of at a designated disposal site. The solid waste dumping site proposed in the World Bank's Strategic Plan is supposed to be sludge disposal site. Including loading, conveyance and leveling costs, sludge disposal cost is 800 Lek/ton.

e. Routine repair cost Routine repair cost includes lubrication, purchase and installation of spare parts and so on. It is empirically 0.5% of mechanical and electrical equipment cost per annum. (2,000 million Lek)*0.005 = 10 million Lek/year

f. Sewer O&M cost except for personnel cost as attached

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10.6.5 STP Operation and Maintenance Costs for FS Power Consumption Power consumption is calculated based on the operational hours of mechanical equipment.

Power consumption power consumption name of equipment (kWh/day) screens and grit chamber 71 main pumps 4,657 primary sedimentation tank 638 trickling filter 0 secondary sedimentation tank 243 chlorination tank 19 sludge thickener 206 sludge digester 1,858 dewatering equipment 191 total 7,883

power cost Kwh/day 7,883 7 Lek/kwh Kwh/year 2,877,295 source: UKT Lek/year 20,141,065 103Lek/year 20,141

Hyochlorite for chlorination Qa＝ 77,058 m3/day consumption unit cost cost (κγ/ψεαρ) Lek/kg 103Lek/year 112,505 42 4,725 source:UKT

Polymer fo sludge dewatering Polymer equivalent to 1% of dry basis weight is used for dewatering. unit cost 800 Lek/kg amount of solids to dewater ｔ/day (A） 2.68 daily addition = 0.01 x (A) 0.0268 annual addition (t/year) 9.782 polymer cost Lek/year 7,825,600 103Lek/year 7,826 Polymer is to be imported. 70 to 80% of the cost in Japan is assumed.

Personnel (Operator, worker, and staff) Lek/month month ＦＳ 1,510,000 x12 ＝ 18,120,000 Lek/year Administration staff 21,038,000 total 39,158 103Lek/year Equipment Repair Lek/year 10,000,000 103Lek/year 10,000

Water Quality Analysis FS 820,000 Lek/year 820 103Lek/year

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Sludge Disposal Moisture Cntent dry basis ton/day wet basis ton/day deatwered 80% 2.68 13.40 sludge

40% dried sludge 5.48 9.13

total 8.16 22.53

unit disposal 800 Lek/wet-ton cost 365.00 × unit cost × amount of sludge (wet basis ton/day) 22.53 = 6,579,733 Lek/year 6,580 103Lek/year

O&M and Repair for Pipe (as attached） 18,783 103Lek/year

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10.6.6 Total of personnel and cost of sewer O&M (FS) 0.836 Lek/yen gravity sewer Albanian Price JPY 1. Assumptions yearly cost repair 4,897 1,000 yen/year 148.41 yen/m/y 124.07 Lek/m/y sewer length 33,000 ｍ time for transfer excluding cleaning 69 1,000 yen/year 2.08 yen/m/y 1.74 population density - person/ha. regular check － minute/point personnel inspection 110 1,000 yen/year 3.33 yen/m/y 2.78 sewer length - ha emergency sewer 30 minute/point cost total 178 1,000 yen/year number of households 3,000 household manhole 30 minute/point per meter 0.0054 1,000 yen/year/m average distance betwee 11.0 ｍ house connection 30 minute/point 5.4 yen/year/m working time a day 8 hour/day inspection chamber 30 minute/point

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10.6.7 Total O&M Cost for FS

Year 2014 - Power Consumption 20,141 Chemicals 13,371 Personnel 39,158 Routine Equipment Repair 10,000 Sludge Disposal 6,580 O&M and Repair for Sewers 18,783 Total 108,033 Unit: x 103 Lek/year

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Appendix 11 Organization and Institutional Matters

Volume III Supporting Report

Appendix 11 Organization and Institutional Matters

11.1 Introduction ...... A11 - 1 11.2 Decentralization of Government & Regionalization of Water & Wastewater Services ..A11 - 1 11.3 Decentralization of Water & Sewerage Services for Greater Tirana ...... A11 - 6 11.4 Water Supply Management ...... A11 - 12

Volume III Supporting Report

11.1 Introduction This section of the Supporting Report sets forth three aspects of organization and institutional matters that impact on the implementation of the Master Plan and Priority Works and provides additional background information. These are some of the major issues that have a major impact on the central government’s national policy on decentralization; the application of this policy to the decentralization of water and sewerage services to the Greater Tirana area; and the ability of UKT to provide adequate water services and consolidate its revenue collection.

11.2 Decentralization of Government & Regionalization of Water & Wastewater Services Following several years of effort to create the institutional and legal framework for decentralization of the water supply and wastewater services from central government to local government, and the earlier implement of this change, fears of “fragmentation” arose.

At the “Spring 2006 Water Policy Conference.” the policy challenges and opportunities of this change were presented and discussed. The Conference was organized jointly by the Ministry of Public works, Transport and Telecommunications, The Ministry of the Interior (Decentralization), and the Water Supply and Sewerage Association of Albania (AWSSA).

The Conference brought together nearly 400 representatives including senior central government officials, local government officials, water utilities, civil society NGO’s, foreign donors operating in the water sector in Albania, international lending institutions, banks based in Albania, embassies and the media.

The outcome of the Conference was a national consensus of relevant stakeholders in the water sector in Albania, as to how water supply and sewerage services should be structured within the implementation of the decentralization process.

A copy of this national consensus, as agreed and signed by the participating Ministries and AWSSA, is reproduced on the following pages:

A11 - 1 Volume III Supporting Report

MINISTRY OF PUBLIC WATER SUPPLY MINISTRY OF INTERIOR WORKS, TRANSPORT AND AND SEWERAGE (LOCAL TELECOMMUNICATION ASSOCIATION OF ALBANIA GOVERNMENT)

SPRING 2006 WATER POLICY CONFERENCE

DECENTRALIZATION OF GOVERNMENT AND REGIONALIZATION OF WATER SUPPLY AND WASTEWATER SERVICES ______

DOCUMENT

CONSENSUS OF THE CONFERENCE ATTENDEES

TIRANA, 27 APRIL 2006

A11 - 2 Volume III Supporting Report

INTRODUCTION

The issues presented and discussed today regarding decentralization of the water sector are not easy issues and are very complicated within the dynamically changing political environment in Albania. The two participating ministries, the Ministry of Interior and the Ministry of Public Works, Transport and Telecommunication are to be congratulated for their interest and support in co-organizing the Conference, along with the Water Supply and Sewerage Association of Albania.

There are times when Government must do brave things, and this was one of those times that the Government showed itself to be brave. Considering the revision of a major public policy is not a decision to be taken lightly.

The objective of the Water Policy Conference was to engage in a water sector specific, open dialogue on the need to balance the factors related to a rational aggregation or regionalization of water supply and sewerage services in Albania, within the context of the Country’s efforts toward the decentralization of government.

The Conference was initiated since there are very serious concerns as to what would happen to water supply and sewerage services, if the Central Government would not implement its priorities regarding the transfer of water supply and sewerage systems and would not envisage the instruments and the legal, institutional and financial solutions which are a must for the process to guarantee the water supply quality. It was completely financed by the German Technical Cooperation, GTZ.

CURRENT DECENTRALIZATION PROCESS AND ITS IMPACT ON SERVICES

The Conference has provided all those in attendance with a detailed description of the current decentralization process in Albania, and the nature of considerations being given to the water supply and sewerage sector within that process dwelling on the positive sides of decentralization and shedding light on some risks that might accompany the process and compose an irreversible consequence deriving from the decrease of the utilities’ economic performance.

The most appropriate word that can be applied, when referring to the impact of this process on the water sector, is "fragmentation". This is resulting from the fact that local governments (municipalities and communes) are both authorized and responsible to provide water supply and sewerage services to their inhabitants, under the law on local government. In turn, the law provides for these local units of government to request and to take their "water and sewer related assets" from the "owner", which is the central government.

It was evident, from the Conference discussions that this program of decentralization, to date in Albania, has not been balanced to raise the proper awareness amongst local government officials as to the negative impact of such a fragmentation of the water sector.

It is well understood in the water sector, that when it comes to capital intensive, critical infrastructure that requires highly qualified professionals to operate and maintain it, fragmentation can normally not result in a good strategy, and, in specific cases, small systems can end in total collapse if they are not continuously subsidized.

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LOCAL GOVERNMENT PERSPECTIVE ON DECENTRALIZATION AND THE DELIVERY OF WATER SUPPLY AND SEWERAGE SERVICES

There was consistently expressed concern through the various sessions of the Conference that local government is not well informed of the nature of the responsibility that they have been given in the law and are directed to assume; as it relates to the provision of water supply and sewerage services to the public. It would appear that local government sees the Central Government as the guarantor of their financial viability in the water sector, and there is an evident skepticism regarding their serious preparation to face this process. The skepticism was mainly expressed from by experts from various water supply and sewage utilities, but it should be regarded with reservation as it can be due to the insecurity deriving from the change of the water-supplies system ownership. Such a situation cannot be tolerated for long.

The government interventions for guaranteeing the process by covering the debts of the water supply utilities, protecting the subsidies (despite of their kind – particularly the objective and poverty-related subsidies) and guaranteeing the investment capital for a long-term period for the water-supply enterprises should be combined with a better integrating process between local government units and with a greater care of the locally elected representatives for all the water- supply utilities.

Although examples of success and failure were able to be sighted, during the Conference, as it relates to the provision of water supply and sewerage services by local government, there was still an over-riding concern from local government stakeholders, particularly on the smaller units (population) that they were not prepared, and may never be prepared to operationally manage a proper water supply and sewerage system in compliance with the applicable regulations, and in a financially sustainable manner, investment cost included, with full costs recovery from locally established tariffs.

GUIDANCE FROM INTERNATIONAL EXPERIENCE

The presentations by each of our invited international speakers make a clear statement that aggregation of the water-supply systems, in some form, must be the water supply and wastewater management strategy of any water sector, no matter where it is located in the world. The issues seem to be not "if" it should be pursued, but rather "how".

This was further supported by data that is becoming available from the Water Sector Monitoring and Benchmarking Program being implemented in Albania which suggests that the capability to professionally manage and improve performance of water supply systems in Albania is very low, and that it is particularly low in the smaller systems. The data to date from this well documented Program does reflect an economy of scale that parallels the trends contained in the studies by The World Bank.

BASIS FOR CONSENSUS AND A PATH TO MOVE FORWARD

Although there were many issues raised concerning implementation of the decentralization strategy and the concerns of individual local governments, the question that seemed be being asked within the open dialogue process of the Policy Conference was, “What is the path to be pursued for implementing the decentralization strategy?”

In this regard, the Conference voiced a genuine belief that the aggregation of water supply and sewerage services to reach the economy of scale and the cooperation between the local governments that will own the decentralized water-supply and sewage utilities in general, has more advantages than disadvantages. The challenge, therefore, is to find a way to implement

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such a decision in a fair and equitable manner, respecting the principles of the decentralization process.

In light of this consensus, it would seem appropriate for Central Government to initiate a program of information dissemination aimed at increasing the awareness of local governments to the practical issues related to the sustainable delivery of water supply and sewerage services, and the global experience related to economies of scale.

In addition, the Central Government should move immediately to redirect the asset transfer process, as it relates to all the commercial water companies in Albania (Sh.a's), and transfer only the ownership shares in these companies to local government, providing assisting to local governments in the allocation of these shares to the units of local government served by that particular company. The government, making use of the above-mentioned form, should consider this process as compulsory, pursuant to Law no 8652, dated 31.07.2000. In addition, it should concurrently take measures to avoid the non-functioning or ill-management of the joint water resources and non-functioning related to the lack of human capacities.

In addition the Central Government should take the following actions in providing incentives to encourage aggregation of water supply and sewerage service delivery:

o Set performance and quality standards for all water supply and sewerage systems (utilities) and monitor them through the current capacity being developed in the General Directorate of Water Supply and Sewerage/ Ministry of Public Works, Transport, and Telecommunication in close co-operation with the Ministry of the Interior.

o Condition financial assistance based on performance and quality indicators and practical business plans.

SIGNED BY:

Ferdinand PONI Petrit TARE Stavri RISTANI Vice Minister President Vice Minister

MINISTRY OF INTERIOR WATER SUPPLY AND SEWERAGE MINISTRY OF PUBLIC WORKS, (LOCAL GOVERNMENT) ASSOCIATION OF ALBANIA TRANSPORT, AND TELECOMMUNICATION

TIRANA, 27 APRIL 2006

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11.3 Decentralization of Water and Sewerage Services for Greater Tirana Following on the national consensus that the aggregation of water supply and sewerage services to reach the economy of scale and the cooperation between the local governments that will own the decentralized water supply and sewerage utilities, has more advantages than disadvantages, it is necessary to apply this principle to the Greater Tirana area.

The first step is for government to initiate a program of information dissemination as promised and for a time frame to be set to achieve consensus on a Joint Authority for the Greater Tirana area. This study recommends that all local governments in the Greater Tirana area agree to form one Joint Authority with service provision by a transformed UKT renamed the Greater Tirana Water and Sewerage Authority (GTW&SA).

This recommendation was presented on 28th June 2006 to the Steering Committee for this Study which is comprised of the Japanese Study Team: a JICA representative and representatives of the following relevant organizations:

o Ministry of Public Works, Transport and Telecommunications (MoPWTT)

o General Directorate of Water supply and Sewerage (DPUK)

o Ministry of Environment, Forests and Water Management (MoEFWM)

o Representative of the Region of Tirana

o Municipalities of Tirana and Kamza, and the Commune of Kashar

o Water Supply and Sewerage Enterprise of Tirana (UKT)

o Water supply and Sewerage Enterprise of Kamza (UKK)

o Other Albanian organizations as necessary

It was generally agree that the recommendation put forward in this report to form a Joint Authority is “Technically” correct however, there remain many other issues related to aggregation of local authorities that are as yet unresolved. This stresses the need for a program of information dissemination and conferences/seminars/workshops for the concerned local governments, central government and UKT to move the process forward.

A copy of the presentation is given on the following pages:

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Presentation to the Steering committee

Decentralization of Water & Sewerage Services for Greater Tirana • Decentralization is the policy of the GoA. The law provides for decentralization (transfer of ownership) & service provision of water & sewerage to Local Government (Fig. 1). • Government has now taken a position to recognize that decentralization on a more “Regional” basis is preferable to fragmentation to small local government authorities. To this end The MoPWTT, Ministry of Interior (Local government), and the AWSSA have signed a consensus document supporting “Regional” decentralization. • Government is likely to support a Greater Tirana Water & Sewerage Authority (GTW&SA). Local Governments must now decide if they want to form a Joint Authority and the municipalities and communes involved must now reach agreement on the details of a Joint Authority and work out how this may be achieved. • Initially the municipalities and communes would be Tirana, Kamza (an independent decentralized LG Authority), Kashar, Paskuqan and Berzulle. • The fringe municipalities and communes, where only a small percentage of the land is covered by the Greater Tirana development, may join as and when it becomes appropriate. These are Vora, Zall Herr, Preze, Vaqarr, Farke and Dajt. • The Joint Authority may appoint UKT as the operator of water supply & sewerage services (renamed GTW&SA) and govern the new enterprise through a Supervisory Council (SC) made up of representatives of all the municipalities and communes forming the joint authority, and with central government representation. The present law does not allow majority representation by local government and should be changed to suit the decentralization policy. (see Power Point) • It is suggested that this law should provide for representation on the SC to be by suitably qualified persons appointed by the local authorities, say for a maximum of 2 terms of 4 years. This would provide both the required expertise and continuity. • The mayors or other senior representatives of the municipalities may be appointed to the Joint Power Authority of Greater Tirana responsible for Planning, Transit, and Public Works as well as Water Supply & Sewerage Services. There is a need for the Greater Tirana Structure Plan to be formally approved and for the Greater Tirana Joint Power Authority to be formed, although this would not prevent the creation of a GTW&SA. (Fig. 2). • It is suggested that the ultimate responsibility for approval of the tariff should rest with the National Regulatory Commission. This would require a change to the present law. • Only part of UKT will form the new GTW&SA, UKT may continue with its other responsibilities to communes and villages in Tirana Region until the new Rural Agency for Water & Sanitation (RAWSS) comes into being. • Regarding private sector participation, this can be decided on at some later date by the SC as provided for in the law, and may include management contracts, concessions etc. The SC may also decide at some later date to separate the bulk water supply and bulk sewerage removal function from the operation & maintenance of the water supply distribution and sewerage collection systems. • The transfer of UKT assets (buildings, office equipment, plant & vehicles) must be clarified. The transfer of UKT staff to the new asset owners must also be clarified. • The guaranteeing of future loans, disbursement, and repayment needs clarifying (Fig. 3).

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Figure 1 CENTRAL GOVERNMENT DECENTRALIZE TO LOCAL GOVERNMENT

Central Government Central government agree to "Regional" Local Authorities Own the assets decentralization in Greater Tirana area. Own the Assets Provides Water & (See Consesus Document signed by Provide Water & Sewerage services MoPWTT, AWSSA & Ministry of Interior Sewerage services MoPWTT (Loca lGovernment)

DPUK Tirana & Kamza municipalities,and the communes of Joint Authority Central Government Kashar, Paskuqan and Berxulle must agree on Empowered by Local Directorate responsible forming a joint authority for all water & sewerage Governments to be for provision of Water services. Vora municipality & the fringe communes responsible for provision of Supply & Sewerage of Zall Herr, Preze, Vaqarr, Farke & Dajt can join Water Supply & Sewerage services when services expand to their areas services

Supervisory Council (SC) The law on Supervisory Councils (7926 & 8099) must be changed to Supervisory Council (SC) Members are Central give control by local government now that they own the assets and Members are mainly Local Government + 1 From provide the service. LG then choose the Director General, set the tariff Government + from Tirana Municipality and supervise the operator in line with national standards Central Government

Levels of Service can be set out in the Service Agreement Service Agreement

UKT The SC (similar to a Company Board of Directors) then has the GTW&SA Operator on behalf of authority to make the necessary changes to ensure that GTW&SA Transformed & Improved Central Government performs as a proper commercial company, and UKT as Operator on sets up Branch Offices in municipal & commune offices behalf of Local government

PROPOSED INSTITUTIONAL STRUCTURE FOR IMPLEMENTATION OF THE STRATEGIC PLAN FOR GREATER TIRANA AND THE GREATER TIRANA WATER & SEWERAGE AUTHORITY (EX - UKT) FIGURE 2

Greater Tirana Local Governments in the Greater Tirana area create a Joint Powers Authority as Economic the main Implementing Agency for the Strategic Plan (SP) AlbTelecom Development Greater Tirana Development Authority or Corporation Greater Tirana Metropolitan Council A Joint Powers Authority, Accountable to Local Governments whose Tirana Region representatives sit on this Council or Board and are mandated to delegate certain Regional Electrical functions of Economic Development, Transit Facilities and Power Distributor Water Supply & Sewerage Services to specialized agencies

Local Governments form a Joint Department of Greater Tirana Authority Supervisory Council (SC) Department Metropolitan Transit of Planning Authority GTW&SA Public Works Greater Tirana Water & Sewerage Authority (ex UKT)

Preze Municipality Municipality Municipality Commune of Tirana of Kamza of Vora

Vaqarr Kashar Zall Herr Commune Commune Commune

Farke Paskuqan Commune Commune

Dajt Berxulle Commune Commune

Fringe Communes Largest Municipality Main Communes/Municipality Fringe Commune/Municipality Not in Sewerage M/P In Sewerage M/P In Sewerage M/P Not in Sewerage M/P

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FIGURE 3

CENTRAL GOVERNMENT DECENTRALIZATION LOCAL GOVERNMENT

EXISTINGDONOR LOANS FUTURE

Italian Cooperation JBIC & Other Donors Loans Loans

MoPWTT MINISTRY OF FINANCE Joint Authority of Guarantees the Loans Local Governments DPUK [SHAREHOLDERS] Ministry and Directorate Owners of the water supply responisble for provision of & sewerage assets & Water & Sewerage services Service Provider of Water & Sewerage

Supervisory Council Supervisory Council [BOARD OF DIRECTORS] [BOARD OF DIRECTORS]

UKT GTW&SA (Ex UKT) Currently generates Must generate revenue to revenue to cover limited cover increased O&M costs O & M and the & Loan repayments commencement of Italian Through the Tariff and other Loan Repayments charges

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11.4 Water Supply Management It has been reported by the staff of the Water Sector of UKT that a major problem of supply is the illegal use of water from the transmission mains, especially for irrigation during the dry season which can result in a loss of up to 40% of supply. In the Strategic Plan for Greater Tirana it is shown that the current total available supply is sufficient to meet the total demand for Greater Tirana in the year 2022, yet Tirana suffers from intermittent supply now and there is little chance of extending the distribution system into the Greater Tirana area.

The problem of illegal connections (and some legal ones) to the transmission mains has steadily grown since 1998 with migration to the peri-urban areas close to the transmission mains. Now, this is a problem of large proportion with this waste of water denying supplies to urban consumers. An urgent solution must be found to provide distribution mains for legal domestic connections and to find a solution to the illegal use of water for irrigation. This problem, if left unresolved is likely to prejudice the formation of a Joint Authority since supplies are already restricted and this is also affecting potential extra revenue.

Another factor possibly complicating the issue of illegal water use is the disproportionate penalties for late payment of bills which is also said to discourage the enforcement of disconnection of supplies particularly for low income groups. These draconian penalties are unusual compared to worldwide norms and probably have contributed significantly to the reported UKT huge accumulated debt of about Lek 1.3 billion, most of which will clearly be uncollectible.

As per section 3.6.4 of Part II of the Main Report a fair and realistic penalty should be imposed and disconnection of defaulters properly enforced. It was reported that UKT has appealed to central government several times for a change to this law without action having been taken. There is an urgent need to address this matter and to resolve the issue of massive water losses which leads to restricted supplies in Tirana and lack of available water for the Greater Tirana development area.

A translation of the legislation (DCM No. 23 of 10.05.1993) is given on the following pages:

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REPUBLIC OF ALBANIA COUNCIL OF MINISTERS DECISION NO. 23 DATE 10.05.1993

Water Supply Management for Domestic and Non-Domestic Users

Upon proposal of the Ministry of Construction, Shelter and Territory Adjustment, the Council of Ministers

Decided:

1. Supply of drinking and treated water from the water supply enterprises for private and public consumers is made based on the contracts of sale that are formed by the parties. 2. Non-domestic consumers, public or private, supplied with water from these enterprises should provide and install water meters, on their own expenses, within 31st of July 1993. Water Supply enterprises decide on the capacity, type and the location project of these water meters. With the exceeding of this deadline, water supply enterprises disconnect their water supply. If the consumer installs the water meter according to the approved project by the Water Supply Enterprise, a separate joint official record is held. 3. Management and maintenance of water meters is responsibility of non-domestic costumers. In case of damaged water meter, consumer should notify in writing the Water Supply Enterprise and take measures for its substitution within 30 days. The charge for water consumption for this period is made according to the average monthly consumption amount. If the Water Supply Enterprise is not notified about the damaged water meter, consumer is charged with the average consumption rate at the price of 5 times of the normal price. The charge for the consecutive 30 days will be 10 times of the average water consumption and Water Supply Enterprise disconnects the water supply. 4. In the case when the consumer does not pay the due charge to the Water Supply Enterprise according to the water supply contract, he is required to pay 5 % of the value of the water supply bill for every day in arrears. If the payment is not done for 30 days, the customer is requested to pay the whole amount of water consumed charged 5 times of the normal price. Beyond this time the Water Supply Enterprise disconnects the water supply. 5. Interventions in the water supply network, connections not approved by the Water Supply Enterprise and any sort of damage is punished as an administrative penalty with fines up to 10 thousands Lek for domestic users and up to 50 thousands Lek for non-domestic users as well as with disconnection of water supply. The penalty decision is issued by the water control inspector and any other employee authorized by the Water Supply Enterprise Director. The consumer is charged to pay any necessary expenses in order to reinstate the damaged section to its previous condition. 6. Against the penalty decision, a complain can be filed within 15 days of its announcement or notification at the Water Supply Enterprise Director, whose decision is then final. 7. In the cases foreseen in the point 2, 4 and 5 of this decision, when the Water Supply Enterprise disconnects the water supply, the contract between the parties is dissolved. Upon customer request, the Water Supply Enterprise reconnects the water supply within 30 days, after the consumer has paid the charges against the Water Supply Enterprise and all the expenses for the disconnection and reconnection of water supply. After the reconnection has taken place, consumer enters in a new contract with the Water Supply Enterprise.

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8. Ministry of Construction, Shelter and Territory Adjustment, local authorities and water supply enterprises are responsible for preparing programs for the provision of water meters for domestic customers. 9. Every other legislation that is in disagreement with this decision becomes invalid.

This decision comes to effect immediately.

Head of the Council of Ministers

Aleksander Meksi

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Appendix 12 Economic and Financial Considerations

Volume III Supporting Report

Appendix 12 Economic and Financial Considerations

Appendix 12.2.1 Population and Density by Districts...... A12 - 1 Appendix 12.2.2 Existing and Projected Population in Targeted Area...... A12 - 2 Appendix 12.2.3 Economic Active Population and Unemployment Rate...... A12 - 3 Appendix 12.2.4 Registered and Active Enterprises in Albania by Prefectures...... A12 - 4 Appendix 12.7.1 Revenues and Expenditures Regarding Consolidated Budget 1993 - 2001...... A12 - 5 Appendix 12.7.2 Expenditure by Functions 1997-2001 ...... A12 - 6 Appendix 12.7.3 Expenditure Regarding Institutional Classification 1997 - 2001...... A12 - 7 Appendix 12.7.4 Balance Sheet of Tirana Municipality...... A12 - 8 Appendix 12.7.5 Profit and Loss Statement of Tirana Municipality ...... A12 - 9 Appendix 12.7.6 Balance Sheet of Kamza Municipality...... A12 - 10 Appendix 12.7.7 Profit and Loss Statement of Kamza Municipality ...... A12 - 11 Appendix 12.7.8 Profit and Loss Statement of Kashar Commune ...... A12 - 12 Appendix 12.7.9 Balance Sheet of Paskuqan Commune...... A12 - 13 Appendix 12.7.10 Profit and Loss Statement of Paskuqan Commune ...... A12 - 14 Appendix 12.7.11 Balance Sheet of Berxull Commune...... A12 - 15 Appendix 12.7.12 Profit and Loss Statement of Berxull Commune ...... A12 - 16 Appendix 12.7.13 Balance Sheet of Tirana Mini Municipality No.1 ...... A12 - 17 Appendix 12.7.14 Profit and Loss Statement of Tirana Mini Municipality No.1...... A12 - 18 Appendix 12.7.15 Balance Sheet of Tirana Mini Municipality No.2 ...... A12 - 19 Appendix 12.7.16 Profit and Loss Statement of Tirana Mini Municipality No.2...... A12 - 20 Appendix 12.7.17 Balance Sheet of Tirana Mini Municipality No.3 ...... A12 - 21 Appendix 12.7.18 Profit and Loss Statement of Tirana Mini Municipality No.3...... A12 - 22 Appendix 12.7.19 Balance Sheet of Tirana Mini Municipality No.4 ...... A12 - 23 Appendix 12.7.20 Profit and Loss Statement of Tirana Mini Municipality No.4...... A12 - 24 Appendix 12.7.21 Balance Sheet of Tirana Mini Municipality No.5 ...... A12 - 25 Appendix 12.7.22 Profit and Loss Statement of Tirana Mini Municipality No.5...... A12 - 26 Appendix 12.7.23 Balance Sheet of Tirana Mini Municipality No.6 ...... A12 - 27 Appendix 12.7.24 Profit and Loss Statement of Tirana Mini Municipality No.6...... A12 - 28 Appendix 12.7.25 Balance Sheet of Tirana Mini Municipality No.7 ...... A12 - 29 Appendix 12.7.26 Profit and Loss Statement of Tirana Mini Municipality No.7...... A12 - 30 Appendix 12.7.27 Balance Sheet of Tirana Mini Municipality No.8 ...... A12 - 31 Appendix 12.7.28 Profit and Loss Statement of Tirana Mini Municipality No.8...... A12 - 32 Appendix 12.7.29 Balance Sheet of Tirana Mini Municipality No.9 ...... A12 - 33 Appendix 12.7.30 Profit and Loss Statement of Tirana Mini Municipality No.9...... A12 - 34 Appendix 12.7.31 Balance Sheet of Tirana Mini Municipality No.10 ...... A12 - 35 Appendix 12.7.32 Profit and Loss Statement of Tirana Mini Municipality No.10...... A12 - 36 Appendix 12.7.33 Balance Sheet of Tirana Mini Municipality No.11 ...... A12 - 37 Appendix 12.7.34 Profit and Loss Statement of Tirana Mini Municipality No.11...... A12 - 38 Volume III Supporting Report

Appendix 12.7.35 Balance Sheet of UKT ...... A12 - 39 Appendix 12.7.36 Profit and Loss Statement of UKT...... A12 - 40 Appendix 12.11.1 Estimation of Economic Benefit ...... A12 - 41 Appendix 12.11.2 Economic Evaluation of Master Plan (Case B-3d) ...... A12 - 42 Appendix 12.11.3 Financial Evaluation of Master Plan (Case B-3d)...... A12 - 43 Appendix 12.F5.1 Economic Evaluation of the Priority Project in the Feasibility Study ....A12 - 44 Appendix 12.F5.2 Financial Evaluation of the Priority Project in the Feasibility Study..... A12 – 45

Volume III Supporting Report

Appendix 12.2.1 Population and Density by Districts

Population Area Districts Population Density

(km2) (Persons/km2) Berat 127,837 939 136.10 Bulqizë 42,968 469 91.60 Delvinë 10,765 348 30.90 Devoll 34,641 429 80.80 Dibër 85,699 1,088 78.70 Durrës 181,662 433 419.60 Elbasan 221,635 1,372 161.50 Fier 199,082 785 253.50 Gramsh 35,750 695 51.50 Gjirokastër 54,647 1,137 48.00 Has 19,660 393 50.00 Kavajë 78,179 414 188.70 Kolonjë 17,161 805 21.30 Korçë 142,909 1,752 81.60 Krujë 63,517 333 190.80 Kuçovë 35,338 84 420.20 Kukës 63,786 938 68.00 Kurbin 54,392 273 199.00 Lezhë 67,734 479 141.30 Librazhd 72,387 1,023 70.70 Lushnjë 143,933 712 202.00 Malësi e Madhe 36,692 555 66.20 Mallakastër 39,529 393 100.60 Mat 61,187 1,029 59.50 Mirditë 37,056 867 42.70 Peqin 32,964 109 303.30 Përmet 25,780 930 27.70 Pogradec 70,471 725 97.20 Pukë 34,386 1,034 33.30 Sarandë 35,089 749 46.90 Skrapar 29,845 775 38.50 Shkodër 185,395 1,973 94.00 Tepelenë 32,404 817 39.60 Tiranë 519,720 1,238 419.60 Tropojë 27,947 1,043 26.80 Vlorë 147,128 1,609 91.40 Total3,069,275 28,748 124.25 Source: INSTAT.

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2011 2022

2021

2009 2010

2008 2019

2007

2017 2018 8,884 9,329 9,773 10,218 10,663 11,108 588,447 595,479 602,512 609,545 616,578 623,610

2005 2006

2015 2016 2020

2003 2004

2013 2014

2012 Area Targeted in Population Projected and Existing 12.2.2 Appendix 630,643 637,676 644,708 651,741 658,774 665,806 672,839 679,872 686,905 693,937 700,970

ForTirana Municipality after theyear 2006, the populationis projectedbased the on density method. For plan Kamza Municipality development after the taking 2006, and past trend the populationthe on based is projected projected and is based on the average population the 2006, maximum, figure after in method. 15,000 be Kashar Commune For will ha 52 of area residential in density population the that says Plan The account. into theother area: 10,000. pasttrand. the on based projected is population 2006, after the Berxull and Paskuqan of Forcommunes

2. 3. 4. 5.

UnitAdministrative 2001 2002 Administrative Unit Tirana Municipality 478,424 Commune 494,904Berxull 518,243 552,336 MunicipalityKamza 581,414 49,068 6,693Kashar Commune 60,563 CommunePaskuqan 6,898 16,810 63,022 27,566 7,379 17,058 67,033 29,924 17,202 75,858 31,642 7,669 17,347 81,984 32,563 Municipality 8,439 Tirana 18,228 34,329 88,110 CommuneBerxull 18,626 37,251 94,236 100,362 19,025 MunicipalityKamza 40,173 106,488 118,740 11,552 112,614 19,423 124,866 43,094Kashar Commune 11,997 130,992 19,821 46,016 137,118Paskuqan 12,442 143,244 21,016 20,220 48,938 149,370(Note) 12,887 1. 21,415 155,496 20,618 51,860 The data from 2001 13,331 to 161,622 2005 are get from the Civic Registration 21,813 of each territory 167,748 of the Municipality, and communes. 13,776 173,874 22,212 180,000 14,221 22,610 54,782 14,666 23,008 57,704 15,110 23,407 60,625 15,555 23,805 63,547 16,000 24,203 66,469 24,602 69,391 25,000 72,313 75,235 78,156 81,078 84,000

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Appendix 12.2.3 Economic Active Population and Unemployment Rate

Number of Employed Economic Number of Unemploy- Municipality/ Actual Inactive in Active Unemploy- ment Rate Communes Employed People Agriculture Population ed People (%) People (%) Berat 62,918 51,431 11,487 28,128 63.73% 18.26% Bulqizë 19,388 14,921 4,467 8,467 65.85% 23.04% Delvinë 4,130 3,278 852 4,239 38.71% 20.63% Devoll 14,488 11,518 2,970 11,583 67.42% 20.50% Dibër 30,547 22,270 8,277 25,198 60.40% 27.10% Durrës 81,165 59,212 21,953 48,013 29.30% 27.05% Elbasan 106,266 81,890 24,376 49,381 56.48% 22.94% Fier 90,372 72,237 18,135 51,052 57.57% 20.07% Gramsh 15,616 12,855 2,761 8,607 66.85% 17.68% Gjirokastër 23,105 17,762 5,343 17,393 40.81% 23.12% Has 6,791 4,799 1,992 5,032 62.76% 29.33% Kavajë 31,346 26,439 4,907 21,877 62.74% 15.65% Kolonjë 7,167 5,720 1,447 5,626 52.36% 20.19% Korçë 69,511 54,382 15,129 37,995 57.13% 21.76% Krujë 27,070 22,047 5,023 16,070 53.64% 18.56% Kuçovë 16,199 12,077 4,122 9,322 48.56% 25.45% Kukës 23,844 15,773 8,071 16,346 54.50% 33.85% Kurbin 22,300 15,529 6,771 14,781 42.69% 30.36% Lezhë 28,602 24,917 3,685 18,311 66.12% 12.88% Librazhd 31,854 26,292 5,562 17,007 75.81% 17.46% Lushnjë 68,404 58,236 10,168 33,390 75.29% 14.86% Malësi e Madhe 12,079 9,854 2,225 13,095 71.47% 18.42% Mallakastër 16,837 14,142 2,695 10,704 64.04% 16.01% Mat 23,376 19,217 4,159 17,834 63.53% 17.79% Mirditë 16,792 12,602 4,190 8,895 65.83% 24.95% Peqin 14,839 12,551 2,288 7,290 78.43% 15.42% Përmet 11,593 9,505 2,088 7,483 57.90% 18.01% Pogradec 29,098 20,835 8,263 20,960 51.86% 28.40% Pukë 14,217 10,428 3,789 8,640 68.93% 26.65% Sarandë 13,727 11,039 2,688 12,337 41.79% 19.58% Skrapar 15,317 12,724 2,593 6,370 58.06% 16.93% Shkodër 80,551 58,006 22,545 50,799 49.76% 27.99% Tepelenë 12,305 9,868 2,437 10,792 49.74% 19.80% Tiranë 235,482 175,877 59,605 145,619 22.19% 25.31% Tropojë 10,137 7,992 2,145 8,613 57.77% 21.16% Vlorë 59,848 43,550 16,298 45,907 32.23% 27.23% Total in Whole Albania 1,347,281 1,041,775 305,506 823,156 56.45% 22.68% Mini-Municipality 1 11,160 8,149 3,011 6,668 0.11% 26.98% Mini-Municipality 2 19,312 15,110 4,202 13,700 0.18% 21.76% Mini-Municipality 3 14,208 10,439 3,769 8,210 0.09% 26.53% Mini-Municipality 4 15,498 11,405 4,093 9,418 0.19% 26.41% Mini-Municipality 5 20,020 15,633 4,387 12,723 0.12% 21.91% Mini-Municipality 6 15,090 10,013 5,077 7,282 0.13% 33.64% Mini-Municipality 7 17,781 13,470 4,311 11,824 0.11% 24.24% Mini-Municipality 8 10,941 8,305 2,636 7,624 0.19% 24.09% Mini-Municipality 9 14,188 10,772 3,416 8,629 0.16% 24.08% Mini-Municipality 10 5,948 4,822 1,126 4,815 0.06% 18.93% Mini-Municipality 11 16,304 10,878 5,426 8,855 0.20% 33.28% Total in Tirana Municipality 160,450 118,996 41,454 99,748 0.14% 25.84% Source: INSTAT.

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Appendix 12.2.4 Registered and Active Enterprises in Albania by Prefectures (1993-2003)

Year Prefectures Total 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Registered enterprises Berat 2,614 1,192 544 413 105 370 603 484 354 282 376 7,337 Dibër 723 1,561 445 344 85 119 93 226 223 119 15 3,953 Durrës 2,484 1,882 818 776 346 549 676 715 1,023 1,057 1,210 11,536 Elbasan 1,405 2,957 972 388 132 329 289 456 374 402 608 8,312 Fier 3,194 2,507 1,001 841 321 831 647 925 848 709 1,157 12,981 Gjirokastër 1,350 1,015 659 498 98 289 174 251 135 152 304 4,925 Korcë 2,737 2,332 1,083 1,033 206 854 722 1,053 646 549 789 12,004 Kukës 648 523 244 165 69 65 41 51 31 117 24 1,978 Lezhë 1,219 963 369 399 173 188 256 417 193 168 77 4,422 Shkodër 2,039 1,478 739 509 192 210 358 531 465 421 92 7,034 Tiranë 12,574 6,171 5,397 3,011 1,805 2,379 3,529 3,887 3,567 3,134 2,663 48,117 Vlorë 3,195 2,923 1,271 838 217 530 511 612 489 512 480 11,578 Total 34,182 25,504 13,542 9,215 3,749 6,713 7,899 9,608 8,348 7,622 7,795 134,177 Active enterprises Berat 397 191 128 117 37 176 309 266 212 232 375 2,440 Dibër 39 143 63 71 29 44 38 131 78 33 15 684 Durrës 692 568 337 404 198 354 453 559 676 858 1,209 6,308 Elbasan 253 649 313 176 71 210 184 373 310 352 608 3,499 Fier 653 429 263 291 163 414 349 537 532 591 1,154 5,376 Gjirokastër 396 271 256 211 62 160 115 147 96 122 304 2,140 Korcë 567 362 269 475 106 341 338 646 400 390 789 4,683 Kukës 6949375318252036212922379 Lezhë 154 126 77 109 50 59 88 126 62 47 77 975 Shkodër 385 230 170 151 81 75 93 119 86 97 92 1,579 Tiranë 2,148 1,626 1,332 1,492 993 1,429 2,124 2,135 1,963 2,254 2,656 20,152 Vlorë 534 497 313 298 111 248 290 341 281 339 478 3,730 Total 6,287 5,141 3,558 3,848 1,919 3,535 4,401 5,416 4,717 5,344 7,779 51,945 Source: INSTAT

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Appendix 12.7.1 Revenues and Expenditures Regarding Consolidated Budget 1993 – 2001

(millions leks) Year No. Description 1993 1994 1995 1996 1997 1998 1999 2000 2001 Total Revenue 33,476 44,475 53,716 51,572 56,645 93,519 107,506 120,637 135,484 I Counterparts funds 4,476 4,261 2,468 266 256 137 155 0 0 II Tax Revenue 19,594 19,581 30,435 30,174 33,352 56,749 65,401 84,060 91,788 II.1 From Tax office and customs 19,526 29,033 29,604 28,803 32,724 56,027 64,516 82,745 89,750 1 V.A.T.and Turnover Tax 4,991 4,959 5,587 9,076 15,656 28,769 29,794 38,121 41,149 2 Profit Tax 3,980 2,745 2,477 3,418 2,393 4,323 6,033 8,115 10,248 3 Excise Tax 4,348 9,495 10,404 4,947 2,168 4,910 6,961 9,153 9,544 4 Small business Tax 590 824 870 754 385 910 1,188 1,641 1,974 5 Personal Income Tax 78 571 633 637 814 1,167 3,138 4,590 6,300 6 National Taxes and others 1,897 4,179 3,402 2,264 2,349 3,109 4,012 5,783 6,904 7 Solidarity Tax 224 1,940 1,793 837 8 Custom Duties 3,642 6,260 6,231 7,708 8,958 12,615 11,450 13,548 12,795 II.2 Revenues from Local Government 68 548 831 1,370 628 722 885 1,315 2,038 1 Property Tax 0 332 485 371 293 304 181 190 2 2 Local Taxes 68 216 346 999 336 417 704 1,126 2,036 III Social Institute Contributions 3,853 6,407 9,245 12,666 12,227 15,827 18,165 20,053 22,506 1 Social Insurance 3,853 6,407 8,638 11,646 11,282 14,566 16,814 18,523 20,710 2 Health Insurance 0 0 607 1,020 945 1,262 1,351 1,530 1,796 IV Nontax Revenue 5,553 4,226 11,568 8,466 10,810 20,805 23,785 16,524 21,190 1 Profit Transfers from BOA 1,162 400 5,926 3,859 8,030 16,400 17,591 10,225 10,912 2 Income of budgetary institutions 3,475 2,054 3,965 3,342 1,714 3,324 5,041 4,829 5,569 3 Other/not allocated 916 1,772 1,677 1,265 1,066 1,081 1,153 1,470 4,709

Total Expenditure 50,678 60,984 77,134 87,596 100,730 141,628 165,692 170,621 186,049 I Current Expenditure 39,436 54,666 58,026 71,028 86,871 117,413 131,111 133,322 140,767 1 Personnel Expenditure 9,851 14,524 18,438 22,983 25,543 28,336 31,183 33,240 41,207 Wages 8,210 9,804 14,692 17,918 20,376 22,048 24,207 25,820 32,939 Social Insurance Contributions 1,641 4,720 3,746 5,064 5,167 6,288 6,976 7,420 8,266 2 Interest 3,591 5,616 4,984 8,571 18,779 35,892 34,938 29,572 23,620 Domestic 3,646 4,580 8,073 18,073 35,195 34,355 28,870 22,528 Foreign 1,970 404 498 706 697 583 703 1,092 3 Operational and Maintenance 9,598 15,090 12,369 12,568 13,535 18,540 20,072 19,299 15,784 4 Subsidies 2,562 2,122 1,304 1,022 1,414 2,307 2,704 5,242 7,878 5 Social Insurance Outlays 7,300 10,690 13,999 19,127 20,133 24,329 33,895 37,387 43,459 Social Insurance 7,300 10,690 13,713 17,871 18,533 21,934 25,017 28,948 33,104 Health Insurance 0 286 1,255 1,600 2,395 2,592 2,427 2,969 Local Budget (Grant) 5,134 4,595 4,943 Local Budget (Compensation) 1,551 1,418 2,443 6 Other Expenditure 6,534 6,624 6,932 6,758 7,467 8,009 8,320 8,580 8,820 Unemployment Insurarance Benefits 4,191 2,186 2,504 2,163 2,204 1,621 1,450 1,919 1,881 Social Assistance 2,159 3,723 3,698 3,795 4,273 6,168 6,360 6,661 6,938 Housing Subsidy 230 300 670 220 510 … … II Reserve Fund/contingency III Capital Expenditure 11,242 6,318 19,108 16,568 13,859 24,215 34,120 36,274 23,955 Domestic Financing 5,664 6,318 11,215 8,960 6,385 10,589 16,963 18,461 23,955 – from the Budget 5,664 5,732 10,160 7,849 6,059 9,668 15,890 17,873 21,756 – from Its Revenue 572 915 1,111 326 921 1,073 588 2,199 Foreign Financing 5,578 … 7,893 7,607 7,474 13,626 17,158 17,525 19,442 IV Cost of Bank Restructuring 461 1,025 1,886 Source: INSTAT.

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Appendix 12.7.2 Expenditure by Functions 1997-2001

(millions leks) Year No. Functions 1997 1998 1999 2000 2001 Total 100,733 141,628 165,690 170,621 186,050 Detail: General 80,742 115,701 131,325 137,323 147,469 Local 19,991 25,927 34,365 33,298 38,581 1General Public Services 6,303 11,065 15,722 14,366 15,293 Detail: General 4,197 8,360 8,488 9,740 9,873 Local 2,106 2,705 7,234 4,626 5,420 2Defense 4,668 5,343 6,407 5,655 6,724 Detail: General 4,668 5,343 6,406 5,655 6,724 Local 0010 0 3Public Order and Safety 8,000 9,136 11,522 12,733 13,277 Detail: General 8,000 9,136 11,522 12,733 13,277 Local 0000 0 4Education 11,197 13,612 15,938 17,192 19,487 Detail: General 2,516 2,832 2,612 3,774 4,477 Local 8,681 10,780 13,326 13,418 15,010 5Health 6,269 7,986 12,076 12,333 13,722 Detail: General 4,414 5,798 9,438 9,325 11,241 Local 1,855 2,188 2,638 3,008 2,481 6Social Security and Welfare 28,405 34,112 34,278 38,521 43,015 Detail: General 23,797 27,617 27,734 31,664 35,916 Local 4,608 6,495 6,544 6,857 7,099 7Housing Comun. Amenities 3,696 5,933 7,236 8,559 9,807 Detail: General 2,302 4,055 4,612 4,282 4,542 Local 1,394 1,878 2,624 4,277 5,265 8Recreation, Culture, Relegion Affairs 1,623 2,031 2,260 2,395 2,984 Detail: General 1,048 1,364 1,521 1,833 2,125 Local 575 667 739 562 859 9Fuel and Energy 542 2,068 1,169 4,823 9,578 Detail: General 542 2,068 1,169 4,823 8,928 Local 0000 650 10Agriculture, Forestry, Fishing, Hunt 3,983 5,501 6,398 4,788 5,450 Detail: General 3,980 5,500 6,389 4,784 5,446 Local 3194 4 11Mineral resource 638 748 3,698 1,499 1,399 Detail: General 638 748 3,698 1,499 1,399 Local 0000 0 12Transport and Comunication 4,727 6,959 11,630 16,090 19,047 Detail: General 4,295 6,186 10,540 15,546 17,257 Local 432 773 1,090 544 1,790 13Other Economic affairs and Servicices 1,902 1,236 1,885 522 385 Detail: General 1,565 796 1,725 520 383 Local 337 440 160 2 2 14Other Expenditures 18,780 35,898 35,471 31,145 25,882 Detail: General 18,780 35,898 35,471 31,145 25,881 Local 0000 1 from which: Interests 18,779 35,892 34,938 29,572 23,620 Detail: General 18,779 35,892 34,938 29,572 23,620 Local 0000 0

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Appendix 12.7.3 Expenditure Regarding Institutional Classification 1997 - 2001

(millions leks) Year Description 1997 1998 1999 2000 2001 Total 100,730 141,628 165,692 170,621 186,049 Presidency 60 64 71 93 85 Parliament 206 369 426 442 510 Council of Ministers 804 2,566 646 589 574 Local Government 2,375 2,962 8,037 5,877 7,375 Social Security Institute 18,533 21,934 Social Insurance Institute 1,600 2,395 Min.of Public Economy and Privatiz. 608 2,990 4,845 5,487 11,094 Min. of Agriculture and Food 2,974 4,361 4,447 3,964 4,438 Min. of Transport & Telecommun. 7,634 17,430 Min. of Public Affaires 8,906 11,835 18,925 14,142 7,884 Min. of Information 26 Min. of Econom. Coordination & Trade 1,077 680 1,324 903 1,032 Min. of Finance 211 1,543 2,142 2,925 3,140 Min. of Education and Science 11,196 13,482 16,105 16,421 18,361 Min. of Culture, Youth and Sports 997 1,223 1,420 1,666 2,019 Min. of Health 6,238 7,739 11,863 12,120 13,440 Ministry of Justice 359 784 656 910 1,284 Min. of Foreign Affairs 1,060 1,208 1,285 1,403 1,411 Min. of Public Order 6,748 7,202 9,483 9,578 9,455 Min. of Defense 4,668 5,512 6,605 6,534 7,394 Min. of Labor & Social Affair 2,893 3,058 34,265 38,362 42,904 Directorate of Customs 416 917 1,008 1,511 1,416 Statistics Institute 54 120 70 106 398 State Prosecutor 315 469 585 629 633 High Court 561 642 734 756 870 Constitutional Court 10 20 30 40 84 National Information Services 447 581 706 865 1,046 State Audit Commission 121 189 188 184 133 Environmental Defense Committee20276566111 Department of Radio and Television 564 742 820 640 554 State Archives 66 55 70 93 121 Department of State Reserves 534 235 288 271 208 Department of Forest Police 534 743 629 889 1,081 Directorate of Taxation 385 558 799 1,082 1,359 Department of Meteorology and Calibration 14 15 21 19 14 National Agency for Privatization 55 43 55 137 65 Science Academy 172 232 293 334 437 Albanian Press Agency 60 71 83 77 89 Social Assistance Committee 206 263 Department of Srandards 1735393520 The system of Registr. of Immovable Prop. 30 53 108 132 159 Energy Committee 517 410 19 Political Parties 178 145 142 190 196 Financial Assistence 4,286 6,168 Center of Foreign Investment Promotion 5 7 Interests 18,779 35,892 34,938 30,572 23,620 The Commission of Shares Observation 2 13 14 17 18 National Entity of Free Zones 3 6 4 6 7 The School of the Magistrate 718242635 National Center of Movie Theaters 48 66 40 87 99 Institute of Integration of Ex Political Pris. 33 50 49 Inspection of the High Council of Justice 10 15 15 Rural Development Program 74 1,277 2,020 2,283 Center Commission of Election 537 Parliamentary Election 2 105 Others 811 912 27 617 562 (Note) From 1999, Expenditure for Social Security Institute are included to the Ministry of Labur, and Expenditure for Social Insurance Institute are included to the Ministry of Health. Source: INSTAT.

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Appendix 12.7.4 Balance Sheet of Tirana Municipality

(Million Leks) Assets 2000 2001 2002 2003 2004Liabilities 2000 2001 2002 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 0 0 0 A. Own Fund 606 1,328 2,110 4,993 8,897 B. Current Actives 584 1,306 2,085 4,674 8,299 I. Own Funds 606 1,032 1,487 4,977 7,554 I. Intangible Fixed Assets 0 0 0 10 92 Basic Funds 606 170 287 2,027 4,011 Current Tangible Assets 0 0 0 6 52 Capital from Domestic Grants 0 862 1,200 2,950 3,543 Amortization of Intangible Current Assets (-) 0 0 0 0 0 Capital from Foreign Grants 0 0 0 0 0 Provision for Increase of Current Intangible Actives 000440Current Actives in Use 00000 II. Current Tangible Assets 584 1,306 2,085 4,663 8,207 Reserves from the Current Actives 00000 Soils, Terrains 0 0 04544 Re-evaluated Forests, Plantations 0 0 0 124 137 II. Other Own Funds 0 296 623 7 1,324 Buildings, General Institutions 5 5 18 777 1,281 Reserve Funds, Current Expenditures 0 0 0 0 2 Exploitations for Network of Roads, Water Supply, etc. 483 26 105 169 913 From Annual Result of Assignement 0296623 7 1,322 Technical Installations, Machineries, Equipment, Tools 74 29 29 485 833 for Investments Transport Facilities 35 63 77 237 311 Incomes from Current Active Sellings00000 State Reserves 00000 III.Carried Over Result 00009 Slaughtering Facilities of Animals and Cattles 00033 IV.Extra-Ordinary Sub-Ventions 00000 Other Economic Inventories 0 41 52 171 211 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -14 -17 -19 -316 -387 V. Instititution Participation for Third 0001010 Current Actives 01,1581,8242,9634,859 Party Investment Capital Transfer 0 0 0 1 1 VI. Total Provisions for Risks and 00000 Local Cost 00000 Expenditures Damaged Current Tangible Assets 0 0 0 6 0 B. Obligations 12 31 37 204 269 Designated Amount 00000 I.Long Term Loans 00000 III. Financial Actives 0 0 0 0 0 Domestic Loans and Similar 00000 Loans and Sub-Loans 00000 Foreign Loans 00000 Own Capital Participation 0 0 0 0 0 Loans without Preliminary Incash Fun 00000 IV. Tangible Active Devaluation (-) 0 0 0 0 0 II. Short Term Obligations 12 31 37 204 269 C. Circulating Actives 177 247 502 1,758 897 Partial Prepayment for Clients (Credit 00000 I.Situation of the Inventory in Process 21 22 25 280 470 Supplyers and Accounts Linked with 57176866 Materials 6 7 8 92 125 Them Situation of Inventories 16 15 17 164 314 Personel and Accounts Linked with 3 3451 83 Products, Works, Services in Process 0 0 02030 Them Products 00030 State Charges and Taxes 02168 Goods 0 0 0 0 1 Taxes Collected by State to Local 00000 Livestock in Slaughtering 0 0 0 0 0 Government Account Incashed Money or at the Thirds 0 0 0 0 0 State Transfer for Natural Disaster 0 0 0 0 0 Differences in Prices of Stored Goods 00000 Other Operations with the State 0 1 121 Provision for Devaluations (-) 0 0 0 0 0 (Creditor) II. Incashment Requests on Debitors 156 225 477 199 270 Social Security 3 0 1 48 87 Request for Debitors on Partial Payments or Pre- Health Security 0 0 0 2 1 00000 payments Other social organisations 0 0 0 0 0 Clients and Other Similar Accounts 0 0 0 0 0 Other Public Institutions 0 0 0 0 0 Personel, Pre-payments, Deficits and Penalties 00011 Domestic System Institution Relations 00000 State Taxes 0 0 0 0 1 Extra-System Institution Relations 0 0 0 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 17 12 0 0 00000 Accounts Other Creditors 0 0 0 14 13 State Transfer for Natural Disasters 0 0 0 0 0 Other Obligations 0 0 0 13 9 Other Operations with the State (Debitors) 155224476179247C.Other Accounts 00073 Social Security 0 0 0 0 0 Incomes to Be Registred (Evidenced) in 0003 0 Health Security 0 0 0 0 0 Incoming Years Other Social Organisations 0 0 0 0 0 Passive Converting Differencies 0 0 0 0 0 Other Public Institutions 0 0 0 0 0 Incomes to Be Classified or Regulated 0 0 0 0 0 Domestic Institutional System Relations 00000 Incomes Incashed before the Account Be 00043 Foreign Institutional System Relations 00000 Made Clear Other Debitors 0 1 1 12 16 Result of Practice (Balance of Credit Account) 143 194 440 1,227 27 Other Debitor Requests 0 0 0 6 5 Provisions for Devaluations (-) 0 0 0 0 0 III. Paper-Holdings (Certificates) 0 0 0 0 0 Paper-Holdings 0 0 0 0 0 Provisions for Devaluations (-) 0 0 0 0 0 IV. Self-Disposable Receipts 0 0 0 1,279 157 Values to be Incashed 0 0 0 0 0 Bank Accounts 00000 Cash 00000 Similar Disposable Receipts 0 0 0 1,227 38 Other Values 0 0 0 52 120 Credits and Down Payments 0 0 0 0 0 Accounts in Credit Organisations 0 0 0 0 0 Other Active Accounts 0 0 0 0 0 Converting Active Differences 0 0 0 0 0 Expenditures to be Share in Some Exercises 00000 Expenditure for the Future 0 0 0 0 0 Exercise Results (Balance of Debitors' Accounts) 00000 Total of Actives 761 1,553 2,587 6,431 9,196 Total of Liabilities 761 1,553 2,587 6,431 9,196 Out of Balance Sheet Accounts 0 0 0 0 0 Extra Balance Sheet Accounts 0 0 0 0 0 Active Evidence 0 0 0 0 0 Passive Evidence 0 0 0 0 0 Source: Tirana Municipality.

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Appendix 12.7.5 Profit and Loss Statement of Tirana Municipality

(Million Leks) Expenditure 2000 2001 2002 2003 2004Revenue 2000 2001 2002 2003 2004 A. Exercise Expenditures 1,070 586 510 3,684 4,482 A. Exercise Incomes 1,675 1,390 1,828 8,991 6,247 I.Payments and Personel Expenditures 135 98 118 1,560 1,799 I. Duty Taxes (a+b+c+d+e+f) 341 545 805 2,854 2,144 Payments for Permanent Personel116 83 102 1,409 1,632 a) On Incomes, Capital Incomes Benefit 0 0 0 1,082 1,454 Payments with Contracts 0 8111323 -Taxes on Personal Incomes 0 0 0 0 0 Gratuities and Other Personel Expenditures 2085138144 -Corporation Income Tax 00000 II. Social Security Contributions 36 22 27 417 477 - Taxes on Small Business 0 0 0 1,082 1,454 Pension and Social Security Contributions 362227413414 -Other Duty Taxes 00000 Health Contributes 000463b)Social and Health Security Contributions 00000 III.Goods/materials and Other Services 4264613689991,113 -From the Employed People 00000 Materials and General Office Services 842118328266 -From Employees 00000 Special Materials and Services 26 11 18 95 113 - From the Selfemployed 00000 Services 2801413135144 -From the Farmers 00000 Transportation Expenditures 187133134 -From Voluntary Securities 00000 Travel expenditures 3671320 -State Contributions for the Social Security 00000 Normal Maintenance 10313257301289 -State Contributions for the Health Security 00000 Lease 0 2 3 13 16 c) Property Tax 0 131 135 419 428 Legal Compensation Contributions 0 0 15 3 34 - Real Estate Property Tax 0 0 135 266 283 On the Real Estate Expenditures Conected with Borrowings - 0006111 00000 Property Alienation (Loans) - Other Taxes on Property 0 131 0 92 134 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 413 668 1,350 262 5852381196 Commissions -On Capital Gains Value 00000 IV.Different Subventions 0005020 -Ecsise 00000 For Price Differences 0005020 -Taxes on Specific Services 0000143 To Stimulate Employment 00000 -Taxes on Goods 0 277 531 1,216 118 Covering Losts 00000 -Other Taxes on Goods and Services 01361371341 For Individual Projects 00000 e)Taxes on Trade and Inter- national Transport 00000 V.Current Domestic Transfer 477507571,292 -Customes on Imported Goods 00000 At Other Governance Levels 00000 -Customes on Exported Goods 00000 At Governance Institutions 00000 -Other Taxes on Trade and Domestic Transport 00000 At Social and Health Security 00000 f)Other Duties and Taxes 3411131 For Housholds' Budgets and Individuals 477 1 0 567 745 II. Non-Taxation Incomes (a+b+c) 143 244 271 393 662 At NGOs 00000 a)From the Enterprise and Proprietors 01031178 Other Domestic Transfer 040190547 -From Non-Commercial Public Enterprises 00000 VI.Current Foreign Transfer 00000 -From Commercial Public Enterprises 00000 For International Institutions 00000 -From Other Enterprise and Proprietors 01031178 For Foreign Governments 00000 b)Administrative Services, Secondary Incomes 143233240369653 For Foreign NGOs 00000 -Administrative and Regulatory Tariffs 01711752538 Other Foreign Countries 00000 -Secondary Incomes and Service Payments 0006034 VII.Difference of the Inventory Situation -50-3-106-219 - Taxes from Judiciary and Notaries Operations 00000 VIII. In-Kind Expenditures 00060 -From Goods and Sevices Sellings 0253618562 IX. Amortisation Quotas In-Kind and -From Other Tickets 00043 0 0000 Foreseeable Summations - Penalties and Sequestrations 0 13 21 7 20 Amortisation Quotas and Foreseeable -Lease Incomes 072714 00000 Summations - Other Incomes 143 16 6 20 13 Foreseeable for Financial Activities 00000 c) Other Non-Tax-Incomes 00081 Extraordinary Foreseeable Summations 00000 III.Current Grants (a+b) 1,1914856415,7393,427 B.Financial Expenditures (I+II) 00000 a)Current Domestic Grant 1,1914856415,7333,424 I.Domestic Financial Expenditures ( a+b+c) 00000 - From the Same Government Level 0381015,1202,856 a)Interests for Treasury Bill and Others 00000 - From the Other Government Levels 1,191421514240307 -Short Term 00000 -From the Social Security Institution (SSI) Special Payment 00000 -Long Term 00000 Budget b) For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00000 00000 Interests (Health) From the Same Government Level00000 - Institutional Participation in National Taxes 00011 From Other Government Level 00000 -Additional Financiacing from Incomes Created by 0001900 From Banking System 00000 Domestic System c) Expenditure from the Foreign Currency -Expected Financing from the Budget 0 13 23 170 236 0000 0 Exchanges - Other Domestic Grants 0 12 3 12 24 II.Foreign Financing Expenditures (a+b+c+) 00000 b)Current Foeign Grant 00053 a) From Foreign Government Borrowings -From Foreign Governments 00000 0 0000 (Loans) Interests -From International Financing Institutions 00053 b) From International Institutions financing IV. Change of Product Situation 0 0 0 -3 10 00000 Interests V.In-Kind Financing 00060 c) From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 0 117 111 2 4 00000 Interests Investments and Works in the Economy 00000 C.Extra-ordinary Expenditures 20100 Recovering of Foreseen Money 00000 Losses from mistakes in the previous exercise 00000 Drowings from Investment Section 011711145726 Other Extra-ordinary Expenditures 20100B.Financial Incomes 00000 Total of Operations (A + B + C) 1,0725865103,6844,482From the Transaction Loan Interests 00000 D.Operation Result Correction 4736108884,5631,791-From Domestic Direct Long Term Loans 00000 Annualyzed Income Titles 00000 -Short Term Loan with State Guaranteed 00000 Functional Incomes Definition for Investments23033129291,486- Sub-Loan of the Foreign Loan for the Same Government Level 00000 Budget Incomes Transfer 00167 -Sub-Loan of the Foreign Loan for Other Government Level 00000 Budget Depositing of Unused Incomes 01010 -Sub-Loan of the Foreign Loan for Enterprises 00000 Domestic System Income Transfer 0004,42063-Sub-Loan of Other Foreign Loans 00000 Other Incomes Transfer 001127235Incomes from Deposit Interests 00000 Constant Transfer to Debitor and Similar24327859500Incomes from Foreign Currency Exchanges 00000 Total of Operations (A+B+C+D) 1,5441,1961,3998,2476,273C.Extra-Ordinary Incomes 00020 Result of the Functioning 1431944401,22623From Closed Activities and Other Changes 00000 From Mistakes of Previous Exercises 00000 Corrections of Other Years 00020 Other Incomes 00000 Total of Opertations 1,675 1,390 1,828 8,993 6,247 D. Result of Corrected Operations 12 0 11 480 49 Total 1,687 1,390 1,839 9,473 6,296 Grand Total 1,687 1,390 1,839 9,473 6,296 Sourse: Tirana Municipality.

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Appendix 12.7.6 Balance Sheet of Kamza Municipality (Million Leks) Assets 2000 2001 2002 2003 2004Liabilities 2000 2001 2002 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 00000A.Own Fund 207235292345401 B. Current Actives 199 235 289 343 399 I. Own Funds 205 229 280 345 401 I.Intangible Fixed Assets 00000 Basic Funds 205229280345401 Current Tangible Assets 00000 Capital from Domestic Grants 00000 Amortization of Intangible Current Assets (-) 00000 Capital from Foreign Grants 00000 Provision for Increase of Current Intangible Actives 00000 Current Actives in Use 00000 II. Current Tangible Assets 199 235 289 343 399 Reserves from the Current Actives 000 00 Soils, Terrains 20 20 21 21 21 Re-evaluated Forests, Plantations 00000 II.Other Own Funds 271100 Buildings, General Institutions 175 202 215 215 215 Reserve Funds, Current Expenditures 0 0 0 0 0 Exploitations for Network of Roads, Water Supply, etc. 3 14 54 105 164 From Annual Result of Assignement 271100 Technical Installations, Machineries, Equipment, Tools 6 7 91617 for Investments Transport Facilities 11334 Incomes from Current Active Sellings00000 State Reserves 00000 III.Carried Over Result 00000 Slaughtering Facilities of Animals and Cattles 00000 IV.Extra-Ordinary Sub-Ventions 00000 Other Economic Inventories 00000 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -5 -8 -11 -17 -22 V. Instititution Participation for Third 0 0000 Current Actives 00000 Party Investment Capital Transfer 00000 VI.Total Provisions for Risks and 00000 Local Cost 00000 Expenditures Damaged Current Tangible Assets 00000B.Obligations 711152025 Designated Amount 00000 I.Long Term Loans 00000 III.Financial Actives 00000 Domestic Loans and Similar 00000 Loans and Sub-Loans 00000 Foreign Loans 00000 Own Capital Participation 00000 Loans without Preliminary Incash Fun 00000 IV.Tangible Active Devaluation (-) 00000 II.Short Term Obligations 711152025 C. Circulating Actives 15 18 19 25 33 Partial Prepayment for Clients (Credit 00000 I.Situation of the Inventory in Process 81223 Supplyers and Accounts Linked with 00000 Materials 00001 Them Situation of Inventories 81222 Personel and Accounts Linked with 43567 Products, Works, Services in Process 00000 Them Products 00000 State Charges and Taxes 00001 Goods 00000 Taxes Collected by State to Local 00000 Livestock in Slaughtering 00000 Government Account Incashed Money or at the Thirds 00000 State Transfer for Natural Disaster00000 Differences in Prices of Stored Goods 00000 Other Operations with the State 00000 Provision for Devaluations (-) 00000 (Creditor) II. Incashment Requests on Debitors 7 18 17 20 25 Social Security 3 8 10 13 16 Request for Debitors on Partial Payments or Pre- Health Security 00000 00000 payments Other social organisations 00000 Clients and Other Similar Accounts 00000 Other Public Institutions 00000 Personel, Pre-payments, Deficits and Penalties 00000 Domestic System Institution Relations 00000 State Taxes 00000 Extra-System Institution Relations00000 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 0 0 0 00000 Accounts Other Creditors 00000 State Transfer for Natural Disasters 00000 Other Obligations 00000 Other Operations with the State (Debitors) 718172025C.Other Accounts 0 0 0 0 0 Social Security 00000 Incomes to Be Registred (Evidenced) in 0 0000 Health Security 00000 Incoming Years Other Social Organisations 00000 Passive Converting Differencies 00000 Other Public Institutions 00000 Incomes to Be Classified or Regulated00000 Domestic Institutional System Relations 00000 Incomes Incashed before the Account Be 00000 Foreign Institutional System Relations 00000 Made Clear Other Debitors 00000Result of Practice (Balance of Credit Account) 06246 Other Debitor Requests 00000 Provisions for Devaluations (-) 00000 III.Paper-Holdings (Certificates) 00000 Paper-Holdings 00000 Provisions for Devaluations (-) 00000 IV. Self-Disposable Receipts 0 0046 Values to be Incashed 00000 Bank Accounts 00000 Cash 00000 Similar Disposable Receipts 00046 Other Values 00000 Credits and Down Payments 00000 Accounts in Credit Organisations 00000 Other Active Accounts 00000 Converting Active Differences 00000 Expenditures to be Share in Some Exercises 00000 Expenditure for the Future 00000 Exercise Results (Balance of Debitors' Accounts) 00000 Total of Actives 214 253 309 368 432 Total of Liabilities 214 253 309 368 432 Out of Balance Sheet Accounts 00000Extra Balance Sheet Accounts 00000 Active Evidence 00000Passive Evidence 00000 Source: Kamza Municipality.

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Appendix 12.7.7 Profit and Loss Statement of Kamza Municipality

(Million Leks) Expenditure 2000 2001 2002 2003 2004Revenue 2000 2001 2002 2003 2004 A. Exercise Expenditures 156 208 250 318 411 A. Exercise Incomes 162 215 266 336 450 I.Payments and Personel Expenditures 85 106 138 178 223 I. Duty Taxes (a+b+c+d+e+f) 4 5 5 21 44 Payments for Permanent Personel 82 96 129 n.a. n.a. a)On Incomes, Capital Incomes Benefit n.a. 4 4 15 39 Payments with Contracts 0 0 0 n.a. n.a. - Taxes on Personal Incomes n.a. 0 0 0 0 Gratuities and Other Personel Expenditures 3 10 9 n.a. n.a. - Corporation Income Tax n.a. 1 0 0 0 II. Social Security Contributions 24 36 40 50 63 - Taxes on Small Business n.a. 0 0 12 29 Pension and Social Security Contributions 24 36 40 50 63 - Other Duty Taxes n.a. 3 4 3 10 Health Contributes 0 0 0 0 0 b)Social and Health Security Contributions n.a. 0 0 0 0 III.Goods/materials and Other Services 3 6 10 8 11 - From the Employed People n.a. 0 0 0 0 Materials and General Office Services 00214 -From Employees n.a.0000 Special Materials and Services 0 0 0 3 0 - From the Selfemployed n.a. 0 0 0 0 Services 02234 -From the Farmers n.a.0000 Transportation Expenditures 0 0 2 0 1 - From Voluntary Securities n.a. 0 0 0 0 Travel expenditures 01210 -State Contributions for the Social Security n.a.0000 Normal Maintenance 23201 -State Contributions for the Health Security n.a.0000 Lease 00000 c)Property Tax n.a.1165 Legal Compensation Contributions 0 0 0 0 0 - Real Estate Property Tax n.a. 1 1 6 5 On the Real Estate Expenditures Conected with Borrowings - n.a. 0 0 0 0 00000 Property Alienation (Loans) - Other Taxes on Property n.a. 0 0 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services n.a. 0 0 0 0 00000 Commissions - On Capital Gains Value n.a. 0 0 0 0 IV. Different Subventions 0 0 0 0 0 - Ecsise n.a. 0 0 0 0 For Price Differences 0 0 0 0 0 - Taxes on Specific Services n.a. 0 0 0 0 To Stimulate Employment 00000 -Taxes on Goods n.a. 0 0 0 0 Covering Losts 00000 -Other Taxes on Goods and Services n.a.0000 For Individual Projects 0 0 0 0 0 e)Taxes on Trade and Inter- national Transport n.a. 0 0 0 0 V. Current Domestic Transfer 41 53 64 81 114 - Customes on Imported Goods 0 0 0 0 At Other Governance Levels 00000 -Customes on Exported Goods n.a.0000 At Governance Institutions 0 0 0 0 0 -Other Taxes on Trade and Domestic Transport n.a. 0 0 0 0 At Social and Health Security 0 0 0 0 0 f) Other Duties and Taxes n.a. 0 0 0 0 For Housholds' Budgets and Individuals 40 53 64 73 99 II. Non-Taxation Incomes (a+b+c) 1 9 8 17 23 At NGOs 00000 a)From the Enterprise and Proprietors 00000 Other Domestic Transfer 110815 -From Non-Commercial Public Enterprises 00000 VI. Current Foreign Transfer 0 0 0 0 0 -From Commercial Public Enterprises 0 0 0 0 0 For International Institutions 0 0 0 0 0 -From Other Enterprise and Proprietors 0 0 0 0 0 For Foreign Governments 00000 b)Administrative Services, Secondary Incomes 1981723 For Foreign NGOs 00000 -Administrative and Regulatory Tariffs 000140 Other Foreign Countries 00000 -Secondary Incomes and Service Payments n.a.98223 VII.Difference of the Inventory Situation 4 7 -1 0 -1 -Taxes from Judiciary and Notaries Operations n.a. 0 0 0 0 VIII. In-Kind Expenditures 00000 -From Goods and Sevices Sellings n.a.0000 IX. Amortisation Quotas In-Kind and - From Other Tickets n.a. 0 0 0 0 0 0 000 Foreseeable Summations - Penalties and Sequestrations n.a. 0 0 0 0 Amortisation Quotas and Foreseeable - Lease Incomes n.a. 0 0 0 0 0 0 0 00 Summations -Other Incomes n.a. 0 0 0 0 Foreseeable for Financial Activities 00000 c) Other Non-Tax-Incomes 00000 Extraordinary Foreseeable Summations 0 0 0 0 0 III. Current Grants (a+b) 157 201 253 297 380 B. Financial Expenditures (I+II) 0 0 0 0 0 a) Current Domestic Grant 157 201 253 297 380 I.Domestic Financial Expenditures ( a+b+c) 00000 -From the Same Government Level 1501892383746 a)Interests for Treasury Bill and Others 00000 -From the Other Government Levels 000241309 -Short Term 00000 -From the Social Security Institution (SSI) Special Payment 000 0 0 -Long Term 00000 Budget b) For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 0 0 000 00000 Interests (Health) From the Same Government Level 00000 -Institutional Participation in National Taxes 00000 From Other Government Level 00000 -Additional Financiacing from Incomes Created by 0 000 0 From Banking System 00000 Domestic System c) Expenditure from the Foreign Currency -Expected Financing from the Budget 7 11 15 20 25 0 0 000 Exchanges - Other Domestic Grants 0 0 0 0 0 II.Foreign Financing Expenditures (a+b+c+) 00000 b)Current Foeign Grant 00000 a) From Foreign Government Borrowings - From Foreign Governments 0 0 0 0 0 00000 (Loans) Interests -00000From International Financing Institutions b) From International Institutions financing IV. Change of Product Situation 0 0 0 0 0 00000 Interests V. In-Kind Financing 0 0 0 0 0 c) From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 0 0 0 2 4 0 0 000 Interests Investments and Works in the Economy 000n.a.n.a. C. Extra-ordinary Expenditures 0 0 1 0 0 Recovering of Foreseen Money 0 0 0 n.a. n.a. Losses from mistakes in the previous exercise 00000 Drowings from Investment Section 000n.a.n.a. Other Extra-ordinary Expenditures 0 0 1 0 0 B. Financial Incomes 0 0 0 0 0 Total of Operations (A + B + C) 157 208 251 318 411 From the Transaction Loan Interests 0 0 0 0 0 D. Operation Result Correction 6 13 15 19 39 -From Domestic Direct Long Term Loans 0 0 0 0 0 Annualyzed Income Titles 0 0 0 0 0 -Short Term Loan with State Guaranteed 0 0 0 0 0 Functional Incomes Definition for Investments 2 7 11 15 32 -Sub-Loan of the Foreign Loan for the Same Government Level 0 0 0 0 0 Budget Incomes Transfer (4% District) 0 1 1 0 1 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 0 0 0 Budget Depositing of Unused Incomes 0 0 0 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 0 0 0 Domestic System Income Transfer 00000 -Sub-Loan of Other Foreign Loans 00000 Other Incomes Transfer 0 0 1 0 1 Incomes from Deposit Interests 0 0 0 0 0 Constant Transfer to Debitor and Similar 0 0 0 0 0 Incomes from Foreign Currency Exchanges 0 0 0 0 0 Total of Operations (D) 6 13 15 19 39 C. Extra-Ordinary Incomes 0 0 0 0 0 Result of the Functioning 4 6 2 4 6 From Closed Activities and Other Changes 0 0 0 0 0 From Mistakes of Previous Exercises 0 0 0 0 0 Corrections of Other Years 0 0 0 0 0 Other Incomes 0 0 0 0 0 Total of Opertations 162 215 266 336 450 D. Result of Corrected Operations 0 7 0 0 0 Total 162 221 266 337 450 Grand Total 162 221 266 337 450 Source: Kamza Municipality.

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Appendix 12.7.8 Profit and Loss Statement of Kashar Commune

(1,000 Leks) Expenditure2001 2002 2003 2004 Revenue 2001 2002 2003 2004 A. Conditional Budget 70,432 89,279 104,579 123,144 A. Exercise Incomes 8,921 13,783 49,355 80,052 Education 48,131 66,505 76,260 90,149 Service Tariffs 962 778 675 985 Health 1,210 0 0 0Rent House Tax 823 374 341 410 Civic Register 363 359 307 616 Income Tax 54 160 200 Salary and Wages 263 309 258 545 Ownership Duty 2,875 3,926 4,775 10,801 Operational Expenditures 100 50 49 71 New Residence Tax 225 159 326 167 Emergency Expenditure 0 640 0 0 Liase Tax 0 7 0 Deputy sector 348 0 0 166 License Tax 0 21 0 3,271 Salary and Wages 261 0 0 129 Table Tax 18 28 45 86 Operational Expenditures 87 0 0 37 Tax on Cattles Slaughtering 40 050 Economic Aid 11,700 11,005 14,680 15,608 Advertising Tax 2,820 3,316 640 1,267 Disability 8,550 10,600 13,100 16,381 Solid Waste Tax 1,096 1,377 1,703 2,409 Funerel Expenditures 130 170 232 224 Material Selling Tax 0 78 0 B. Grant 8,011 19,844 19,382 20,733 Tax on Land Selling 0 1,018 996 786 Pewrsonal Expendirtures 5,278 10,103 15,042 19,339 Tax on Construction Licens 0 2,378 34,119 44,421 Salary and Wages 3,918 5,489 11,350 7,099 Hotel Tax 2 0 19 31 Operational Expenditures 1,360 4,614 3,692 4,369 Business Registration Tax 42 160 76 195 Social Security (601) 0 0 0 2,670 Car Registration Tax 0 0 2,349 2,500 Social Security (602) 0 0 0 5,201 Transportation License 0 0 814 908 Education 2,500 3,715 3,440 0 Coat Rent Tax 0 0 0 8 Health 233 0 0 0 Hunting tax 0 0 0 39 Contracted Works 02,1800 0 Civic Register Tax 0 0 0 30 Office Equipement 0 456 900 1,394 Divorce or Joining Family T 00 011 Comune Offices Reparations 0 390 0 0 Small Business Tax 0 0 0 9,947 Road reconstr. And asphalting 03,0000 0 Other Taxes (Penalties, etc) 0 3 2,277 1,730 C.Expenditures from Own Incomes 1,956 3,281 5,721 22,608 B. Grant 79,621 103,576 105,297 114,071 Salary and Wages 1,077 700 0 11,210 Social Security (601) 0 0 0 1,024 Operational Expenditures 879 2,581 410 10,374 Operational Expenditures for Education 0 0 161 0 Contracted Works 005,1500 D. Investments from the Budget 1,499 998 0 5,180 Comune Offices Reparations 1,499 998 0 0 Mezez (village) Water-Supply and Sewag 0004,461 Yrshek, School Terrace Investment 0 0 0 719 E. Investments from Own Incomes 6,644 3,957 24,970 22,458 Office Equipement 0 998 1,250 1,406 Draft Project Payment 0 0 0 483 Scavenging (Cleaning) 798 0 0 0 Comune Road Reparations 4,065 0 21,020 11,860 Comune Road Disposition 1,291 0 0 0 Brisdge Construction 0 0 0 811 Procurement (Car, Truck etc.) 0 980 0 2,212 Watrer Well Drilling 0 0 0 1,385 Emergency Expenditure 0 0 0 1,860 10% WB Contracts 0 0 2,100 485 F.SH.ZH (Development Albanian Fund) 490 1,979 600 1,956 Total 88,542 117,359 154,652 194,123 Total 88,542 117,359 154,652 194,123 Source: Kashar Commune.

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Appendix 12.7.9 Balance Sheet of Paskuqan Commune (1,000 Leks) Assets 2002 2003 2004 2005Liabilities 2002 2003 2004 2005 A.Transfer Results (Balance of Payment to Debitors) 0 0 0 0 A. Own Fund 20,284 31,552 ##### 76,938 B. Current Actives 19,688 30,940 44,484 76,938 I. Own Funds 20,284 24,533 0 0 I. Intangible Fixed Assets 0 0 0 0 Basic Funds 16,111 15,280 0 0 Current Tangible Assets 0 0 0 0 Capital from Domestic Grants 4,174 9,252 0 0 Amortization of Intangible Current Assets (-) 0 0 0 0 Capital from Foreign Grants 0 0 0 0 Provision for Increase of Current Intangible Actives 0 0 0 0 Current Actives in Use 0 0 0 0 II. Current Tangible Assets 19,688 30,940 44,484 76,938 Reserves from the Current Actives 000 0 Soils, Terrains 0 0 0 0 Re-evaluated Forests, Plantations 0 0 0 0 II. Other Own Funds 0 7,019 0 0 Buildings, General Institutions 17,418 17,418 17,534 21,849 Reserve Funds, Current Expenditures 0 0 0 0 Exploitations for Network of Roads, Water Supply, etc. 0 0 29,951 56,540 From Annual Result of Assignement 0 7,019 0 0 Technical Installations, Machineries, Equipment, Tools 00 0300 for Investments Transport Facilities 300 300 1,300 1,300 Incomes from Current Active Sellings0 0 0 0 State Reserves 0 0 0 0 III. Carried Over Result 0 0 0 0 Slaughtering Facilities of Animals and Cattles 00 0 0IV.Extra-Ordinary Sub-Ventions 000 0 Other Economic Inventories 1,906 1,906 2,454 4,124 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -4,110 -4,955 -6,755 -7,175 V. Instititution Participation for Third 000 0 Current Actives 4,174 16,271 0 0 Party Investment Capital Transfer 0 0 0 0 VI. Total Provisions for Risks and 000 0 Local Cost 0 0 0 0 Expenditures Damaged Current Tangible Assets 0 0 0 0 B. Obligations 11,321 12,134 3,701 9,850 Designated Amount 0 0 0 0 I. Long Term Loans 0 0 0 0 III. Financial Actives 0 0 0 0 Domestic Loans and Similar 000 0 Loans and Sub-Loans 0 0 0 0 Foreign Loans 0 0 0 0 Own Capital Participation 0 0 0 0 Loans without Preliminary Incash Fun 000 0 IV. Tangible Active Devaluation (-) 0 0 0 0 II. Short Term Obligations 11,321 12,134 3,701 9,850 C. Circulating Actives 14,777 17,822 18,318 32,511 Partial Prepayment for Clients (Credit 000 0 I.Situation of the Inventory in Process 596 611 774 824 Supplyers and Accounts Linked with 000 0 Materials 0 0 0 0 Them Situation of Inventories 596 611 774 824 Personel and Accounts Linked with 1,933 2,631 3,068 6,434 Products, Works, Services in Process 00 0 0 Them Products 0 0 0 0 State Charges and Taxes 1,433 1,161 632 113 Goods 0 0 0 0 Taxes Collected by State to Local 000 0 Livestock in Slaughtering 0 0 0 0 Government Account Incashed Money or at the Thirds 0 0 0 0 State Transfer for Natural Disaster 0 0 0 0 Differences in Prices of Stored Goods 00 0 0 Other Operations with the State 909 909 0 0 Provision for Devaluations (-) 0 0 0 0 (Creditor) II. Incashment Requests on Debitors 14,009 12,134 3,701 9,850 Social Security 6,864 7,433 0 3,004 Request for Debitors on Partial Payments or Pre- Health Security 0 0 0 298 00 0 0 payments Other social organisations 0 0 0 0 Clients and Other Similar Accounts 0 0 0 0 Other Public Institutions 0 0 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 0 0 Domestic System Institution Relations 000 0 State Taxes 0 0 0 0 Extra-System Institution Relations 0 0 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 0 0 00 0 0 Accounts Other Creditors 182 0 0 0 State Transfer for Natural Disasters 0 0 0 0 Other Obligations 0 0 0 0 Other Operations with the State (Debitors) 13,090 11,215 3,701 9,850 C. Other Accounts 0 0 0 0 Social Security 0 0 0 0 Incomes to Be Registred (Evidenced) in 000 0 Health Security 0 0 0 0 Incoming Years Other Social Organisations 0 0 0 0 Passive Converting Differencies 0 0 0 0 Other Public Institutions 0 0 0 0 Incomes to Be Classified or Regulated 0 0 0 0 Domestic Institutional System Relations 00 0 0Incomes Incashed before the Account Be 000 0 Foreign Institutional System Relations 00 0 0Made Clear Other Debitors 919 919 0 0 Result of Practice (Balance of Credit Account) 2,860 5,077 ##### 22,662 Other Debitor Requests 0 0 0 0 Provisions for Devaluations (-) 0 0 0 0 III. Paper-Holdings (Certificates) 0 0 0 0 Paper-Holdings 0 0 0 0 Provisions for Devaluations (-) 0 0 0 0 IV. Self-Disposable Receipts 172 5,077 13,843 21,837 Values to be Incashed 0 0 0 0 Bank Accounts 0 0 0 0 Cash 172 0 13,843 21,837 Similar Disposable Receipts 0 5,077 0 0 Other Values 0 0 0 0 Credits and Down Payments 0 0 0 0 Accounts in Credit Organisations 0 0 0 0 Other Active Accounts 0 0 0 0 Converting Active Differences 0 0 0 0 Expenditures to be Share in Some Exercises 00 0 0 Expenditure for the Future 0 0 0 0 Exercise Results (Balance of Debitors' Accounts) 00 0 0 Total of Actives 34,465 48,763 62,802 109,449 Total of Liabilities 34,465 48,763 ##### 109,449 Out of Balance Sheet Accounts 0 0 0 0 Extra Balance Sheet Accounts 0 0 0 0 Active Evidence 0 0 0 0 Passive Evidence 0 0 0 0 Source: Paskuqan Commune.

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Appendix 12.7.10 Profit and Loss Statement of Paskuqan Commune

(1,000 Leks) Expenditure 2002 2003 2004 2005Revenue 2002 2003 2004 2005 A. Exercise Expenditures 122,060 136,493 171,519 195,630 A. Exercise Incomes 125,954 143,115 183,147 230,117 I.Payments and Personel Expenditures 54,356 73,396 77,732 110,796 I. Duty Taxes (a+b+c+d+e+f) 7,991 6,342 4,996 14,630 Payments for Permanent Personel47,325 67,339 70,943 101,405 a) On Incomes, Capital Incomes Benefit 7,991 6,342 4,996 5,508 Payments with Contracts 0 0 0 0 - Taxes on Personal Incomes 0 0 0 0 Gratuities and Other Personel Expenditures 7,031 6,057 6,789 9,391 - Corporation Income Tax 0 0 0 0 II. Social Security Contributions 17,509 17,675 44,388 30,645 - Taxes on Small Business 0 3,900 4,996 5,508 Pension and Social Security Contributions 17,509 17,675 44,388 28,933 - Other Duty Taxes 0 2,442 0 0 Health Contributes 0 0 0 1,712 b)Social and Health Security Contributions 0 0 0 7,798 III.Goods/materials and Other Services 12,066 5,327 2,827 7,576 - From the Employed People 0 0 0 7,798 Materials and General Office Services 841 527 0 600 - From Employees 0 0 0 0 Special Materials and Services 0 0 0 0 - From the Selfemployed 0 0 0 0 Services 944 100 0 300 - From the Farmers 0 0 0 0 Transportation Expenditures 740 200 0 600 - From Voluntary Securities 0 0 0 0 Travel expenditures 0 150 0 300 -State Contributions for the Social Security 0 0 0 0 Normal Maintenance 7,041 2,760 0 5,200 -State Contributions for the Health Security 0 0 0 0 Lease 2,000 1,300 0 400 c) Property Tax 0 0 0 0 Legal Compensation Contributions 0 0 0 - Real Estate Property Tax 0 0 0 0 On the Real Estate Expenditures Conected with Borrowings - 0000 00 0 Property Alienation (Loans) - Other Taxes on Property 0 0 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 0 0 500 290 0 176 Commissions - On Capital Gains Value 0 0 0 0 IV. Different Subventions 0 0 0 0 - Ecsise 0 0 0 0 For Price Differences 0 0 0 0 - Taxes on Specific Services 0 0 0 0 To Stimulate Employment 0 0 0 0 - Taxes on Goods 0000 Covering Losts 0 0 0 0 -Other Taxes on Goods and Services 0 0 0 0 For Individual Projects 0 0 0 0 e)Taxes on Trade and Inter- national Transport 0 0 0 1,324 V. Current Domestic Transfer 38,037 39,856 417 640 - Customes on Imported Goods 0 0 0 0 At Other Governance Levels 0 0 417 640 - Customes on Exported Goods 0 0 0 0 At Governance Institutions 0 0 0 0 -Other Taxes on Trade and Domestic Transport 0 0 0 0 At Social and Health Security 0 0 0 0 f) Other Duties and Taxes 0 0 0 0 For Housholds' Budgets and Individuals 38,037 39,856 0 0 II. Non-Taxation Incomes (a+b+c) 0 0 0 0 At NGOs 0 0 0 0 a)From the Enterprise and Proprietors 0 0 0 0 Other Domestic Transfer 0 0 0 0 -From Non-Commercial Public Enterprises 0 0 0 0 VI. Current Foreign Transfer 114 254 46,318 46,023 -From Commercial Public Enterprises 0 0 0 0 For International Institutions 0 0 0 0 -From Other Enterprise and Proprietors 0 0 0 0 For Foreign Governments 0 0 0 0 b)Administrative Services, Secondary Incomes 0 0 0 0 For Foreign NGOs 0 0 0 0 -Administrative and Regulatory Tariffs 0 0 0 0 Other Foreign Countries 0 0 0 0 -Secondary Incomes and Service Payments 0 0 0 0 VII.Difference of the Inventory Situation -22 -15 -163 -50 - Taxes from Judiciary and Notaries Operations 0 0 0 0 VIII. In-Kind Expenditures 0 0 0 0 -From Goods and Sevices Sellings 0 0 0 0 IX. Amortisation Quotas In-Kind and - From Other Tickets 0 0 0 0 0000 Foreseeable Summations - Penalties and Sequestrations 0 0 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 0 0 0000 Summations - Other Incomes 0 0 0 0 Foreseeable for Financial Activities 0 0 0 0 c) Other Non-Tax-Incomes 0 0 0 0 Extraordinary Foreseeable Summations 0 0 0 0 III. Current Grants (a+b) 117,962 136,773 176,094 202,017 B. Financial Expenditures (I+II) 0 0 0 0 a) Current Domestic Grant 117,962 136,773 176,094 202,017 I.Domestic Financial Expenditures ( a+b+c) 0 0 0 0 - From the Same Government Level 0 0 0 0 a)Interests for Treasury Bill and Others 0 0 0 0 - From the Other Government Levels 107,732 125,548 172,273 192,090 -Short Term 0 0 0 0 -From the Social Security Institution (SSI) Special Payment 0 00 0 -Long Term 0 0 0 0 Budget b) For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 0000 0000 Interests (Health) From the Same Government Level0000 - Institutional Participation in National Taxes 0 012077 From Other Government Level 0 0 0 0 - Additional Financiacing from Incomes Created by 0 00 0 From Banking System 0 0 0 0 Domestic System c) Expenditure from the Foreign Currency -Expected Financing from the Budget 10,230 11,225 3,701 9,850 0000 Exchanges - Other Domestic Grants 0 0 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 0 0 b) Current Foeign Grant 0 0 0 0 a) From Foreign Government Borrowings - From Foreign Governments 0 0 0 0 0000 (Loans) Interests -0000From International Financing Institutions b) From International Institutions financing IV. Change of Product Situation 0 0 0 0 0000 Interests V. In-Kind Financing 0 0 0 0 c) From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 0 0 2,057 13,471 0000 Interests Investments and Works in the Economy 0000 C. Extra-ordinary Expenditures 0 0 0 0 Recovering of Foreseen Money 0 0 0 0 Losses from mistakes in the previous exercise 0 0 0 0 Drowings from Investment Section 0 0 2,057 13,471 Other Extra-ordinary Expenditures 0 0 0 0 B. Financial Incomes 0 0 0 0 Total of Operations (A + B + C) 122,060 136,493 171,519 195,630 From the Transaction Loan Interests 0 0 0 0 D. Operation Result Correction 1,033 1,963 3,208 13,861 -From Domestic Direct Long Term Loans 0 0 0 0 Annualyzed Income Titles 0 0 0 0 -Short Term Loan with State Guaranteed 0 0 0 0 Functional Incomes Definition for Investments692 1,947 3,045 13,811 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 0 0 Budget Incomes Transfer (4% District) 341 0 0 0 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 0 0 Budget Depositing of Unused Incomes 0 0 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 0 0 Domestic System Income Transfer 0 0 0 0 - Sub-Loan of Other Foreign Loans 0 0 0 0 Other Incomes Transfer 0 15 163 50 Incomes from Deposit Interests 0 0 0 0 Constant Transfer to Debitor and Similar 0 0 0 0 Incomes from Foreign Currency Exchanges 0 0 0 0 Total of Operations (A+B+C+D) 123,094 138,455 174,727 209,491 C. Extra-Ordinary Incomes 0 0 0 0 Result of the Functioning 2,860 4,659 13,843 21,837 From Closed Activities and Other Changes 0 0 0 0 From Mistakes of Previous Exercises 0 0 0 0 Corrections of Other Years 0 0 0 0 Other Incomes 0 0 0 0 Total of Opertations 125,954 143,115 183,147 230,117 D. Result of Corrected Operations 0 0 5,423 1,211 Total 125,954 143,115 188,570 231,328 Grand Total 125,954 143,115 188,570 231,328 Source: Paskuqan Commune.

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Appendix 12.7.11 Balance Sheet of Berxulle Commune (1,000 Leks) Assets2002 2003 2004 Liabilities 2002 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 0 A. Own Fund 4,340 5,656 15,411 B. Current Actives 4,089 5,195 14,810 I. Own Funds 4,340 5,656 15,411 I. Intangible Fixed Assets 0 0 0 Basic Funds 4,340 5,656 15,411 Current Tangible Assets 0 0 0 Capital from Domestic Grants 0 0 0 Amortization of Intangible Current Assets (-) 0 0 0 Capital from Foreign Grants 0 0 0 Provision for Increase of Current Intangible Actives 0 0 0 Current Actives in Use 0 0 0 II. Current Tangible Assets 4,089 5,195 14,810 Reserves from the Current Actives 00 0 Soils, Terrains 0 0 0 Re-evaluated Forests, Plantations 0 0 0 II. Other Own Funds 0 0 0 Buildings, General Institutions 4,098 4,098 4,098 Reserve Funds, Current Expenditures 0 0 0 Exploitations for Network of Roads, Water Supply, etc. 0 1,242 11,128 From Annual Result of Assignement 00 0 Technical Installations, Machineries, Equipment, Tools 305 305 505 for Investments Transport Facilities 0 0 0 Incomes from Current Active Sellings0 0 0 State Reserves 0 0 0 III. Carried Over Result 0 0 0 Slaughtering Facilities of Animals and Cattles 00 0 IV.Extra-Ordinary Sub-Ventions 00 0 Other Economic Inventories 0 0 0 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -314 -450 -921 V. Instititution Participation for Third 00 0 Current Actives 0 0 0 Party Investment Capital Transfer 0 0 0 VI. Total Provisions for Risks and 0 00 Local Cost 0 0 0 Expenditures Damaged Current Tangible Assets 0 0 0 B. Obligations 1,249 1,669 1,728 Designated Amount 0 0 0 I. Long Term Loans 0 0 0 III. Financial Actives 0 0 0 Domestic Loans and Similar 00 0 Loans and Sub-Loans 0 0 0 Foreign Loans 0 0 0 Own Capital Participation 0 0 0 Loans without Preliminary Incash Fun 00 0 IV. Tangible Active Devaluation (-) 0 0 0 II. Short Term Obligations 1,249 1,669 1,728 C. Circulating Actives 1,540 4,420 5,461 Partial Prepayment for Clients (Credit 00 0 I.Situation of the Inventory in Process 251 461 601 Supplyers and Accounts Linked with 00 0 Materials 0 0 0 Them Situation of Inventories 250 461 601 Personel and Accounts Linked with 580 770 856 Products, Works, Services in Process 00 0 Them Products 0 0 0 State Charges and Taxes 73 105 108 Goods 0 0 0 Taxes Collected by State to Local 00 0 Livestock in Slaughtering 0 0 0 Government Account Incashed Money or at the Thirds 0 0 0 State Transfer for Natural Disaster 0 0 0 Differences in Prices of Stored Goods 00 0 Other Operations with the State 00 0 Provision for Devaluations (-) 0 0 0 (Creditor) II. Incashment Requests on Debitors 1,289 1,669 1,728 Social Security 596 793 764 Request for Debitors on Partial Payments or Pre- Health Security 0 0 0 00 payments Other social organisations 0 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 0 Personel, Pre-payments, Deficits and Penalties 00 Domestic System Institution Relations 00 0 State Taxes 0 0 Extra-System Institution Relations 0 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 0 00 Accounts Other Creditors 0 0 0 State Transfer for Natural Disasters 0 0 Other Obligations 0 0 0 Other Operations with the State (Debitors) 1,289 1,668 1,728 C. Other Accounts 0 0 0 Social Security 0 0 0 Incomes to Be Registred (Evidenced) in 00 0 Health Security 0 0 0 Incoming Years Other Social Organisations 0 0 0 Passive Converting Differencies 0 0 0 Other Public Institutions 0 0 0 Incomes to Be Classified or Regulated 0 0 0 Domestic Institutional System Relations 00 0 Incomes Incashed before the Account Be 00 0 Foreign Institutional System Relations 00 0 Made Clear Other Debitors 0 0 0 Result of Practice (Balance of Credit Account) 40 2,290 3,132 Other Debitor Requests 0 0 0 Provisions for Devaluations (-) 0 0 0 III. Paper-Holdings (Certificates) 0 0 0 Paper-Holdings 0 0 0 Provisions for Devaluations (-) 0 0 0 IV. Self-Disposable Receipts 0 2,290 3,132 Values to be Incashed 0 0 0 Bank Accounts 0 0 0 Cash 0 0 0 Similar Disposable Receipts 0 2,290 3,132 Other Values 0 0 0 Credits and Down Payments 0 0 0 Accounts in Credit Organisations 0 0 0 Other Active Accounts 0 0 0 Converting Active Differences 0 0 0 Expenditures to be Share in Some Exercises 00 0 Expenditure for the Future 0 0 0 Exercise Results (Balance of Debitors' Accounts) 00 0 Total of Actives 5,629 9,615 20,271 Total of Liabilities 5,629 9,615 20,271 Out of Balance Sheet Accounts 0 0 0 Extra Balance Sheet Accounts 0 0 0 Active Evidence 0 0 0 Passive Evidence 0 0 0 Source: Berxulle Commune.

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Appendix 12.7.12 Profit and Loss Statement of Berxull Commune

(1,000 Leks) Expenditure 2002 2003 2004Revenue 2002 2003 2004 A. Exercise Expenditures 29,876 43,200 55,035 A. Exercise Incomes 36,195 46,073 53,710 I.Payments and Personel Expenditures 20,439 26,735 29,594 I. Duty Taxes (a+b+c+d+e+f) 305 3,515 5,457 Payments for Permanent Personel19,175 25,067 26,841 a) On Incomes, Capital Incomes Benefit 189 875 2,171 Payments with Contracts 142 0 571 - Taxes on Personal Incomes 95 0 0 Gratuities and Other Personel Expenditures 1,122 1,668 2,182 - Corporation Income Tax 0 0 0 II. Social Security Contributions 6,192 7,135 7,759 - Taxes on Small Business 94 875 2,171 Pension and Social Security Contributions 6,192 7,135 7,759 - Other Duty Taxes 0 0 0 Health Contributes 0 0 0 b)Social and Health Security Contributions 0 0 0 III.Goods/materials and Other Services 3,246 3,451 10,129 - From the Employed People 0 0 0 Materials and General Office Services 170 0 654 - From Employees 0 0 0 Special Materials and Services 0 370 659 - From the Selfemployed 0 0 0 Services 0 200 4,320 - From the Farmers 0 0 0 Transportation Expenditures 61 300 150 - From Voluntary Securities 0 0 0 Travel expenditures 78 840 661 -State Contributions for the Social Security 0 0 0 Normal Maintenance 2,936 1,340 3,142 -State Contributions for the Health Security 0 0 0 Lease 0 0 187 c) Property Tax 116 2,640 3,286 Legal Compensation Contributions 0 0 - Real Estate Property Tax 116 2,640 3,286 On the Real Estate Expenditures Conected with Borrowings - 000 00 Property Alienation (Loans) - Other Taxes on Property 0 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 0 0 400 356 Commissions - On Capital Gains Value 0 0 0 IV. Different Subventions 0 0 0 - Ecsise 0 0 0 For Price Differences 0 0 0 - Taxes on Specific Services 0 0 0 To Stimulate Employment 0 0 0 - Taxes on Goods 000 Covering Losts 000 -Other Taxes on Goods and Services 000 For Individual Projects 0 0 0 e)Taxes on Trade and Inter- national Transport 0 0 0 V. Current Domestic Transfer 0 6,090 7,693 - Customes on Imported Goods 0 0 0 At Other Governance Levels 0 0 0 - Customes on Exported Goods 0 0 0 At Governance Institutions 0 0 0 -Other Taxes on Trade and Domestic Transport 0 0 0 At Social and Health Security 0 0 0 f) Other Duties and Taxes 0 0 0 For Housholds' Budgets and Individuals 0 5,914 7,436 II. Non-Taxation Incomes (a+b+c) 0 0 0 At NGOs 0 0 0 a)From the Enterprise and Proprietors 0 0 0 Other Domestic Transfer 0 175 257 -From Non-Commercial Public Enterprises 0 0 0 VI. Current Foreign Transfer 0 0 0 -From Commercial Public Enterprises 0 0 0 For International Institutions 0 0 0 -From Other Enterprise and Proprietors 0 0 0 For Foreign Governments 0 0 0 b)Administrative Services, Secondary Incomes 0 0 0 For Foreign NGOs 000 -Administrative and Regulatory Tariffs 000 Other Foreign Countries 000 -Secondary Incomes and Service Payments 000 VII.Difference of the Inventory Situation 0 -211 -140 - Taxes from Judiciary and Notaries Operations 0 0 0 VIII. In-Kind Expenditures 0 0 0 -From Goods and Sevices Sellings 0 0 0 IX. Amortisation Quotas In-Kind and - From Other Tickets 0 0 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 0 000 Summations -Other Incomes 0 0 0 Foreseeable for Financial Activities 000 c) Other Non-Tax-Incomes 000 Extraordinary Foreseeable Summations 0 0 0 III. Current Grants (a+b) 35,850 42,518 45,963 B. Financial Expenditures (I+II) 0 0 0 a) Current Domestic Grant 35,850 42,518 45,963 I.Domestic Financial Expenditures ( a+b+c) 000 - From the Same Government Level 0175257 a)Interests for Treasury Bill and Others 0 0 0 - From the Other Government Levels 34,601 40,661 43,962 - Short Term 0 0 0 - From the Social Security Institution (SSI) Special Payment 000 -Long Term 000 Budget b) For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 0 00 000 Interests (Health) From the Same Government Level0 0 0 - Institutional Participation in National Taxes 0 13 16 From Other Government Level 0 0 0 - Additional Financiacing from Incomes Created by 000 From Banking System 000 Domestic System c) Expenditure from the Foreign Currency -Expected Financing from the Budget 1,249 1,668 1,728 0 00 Exchanges - Other Domestic Grants 0 0 0 II.Foreign Financing Expenditures (a+b+c+) 000 b)Current Foeign Grant 000 a) From Foreign Government Borrowings - From Foreign Governments 0 0 0 0 00 (Loans) Interests -000From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 0 000 Interests V. In-Kind Financing 0 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 40 40 2,290 0 00 Interests Investments and Works in the Economy 000 C. Extra-ordinary Expenditures 0 0 0 Recovering of Foreseen Money 0 0 0 Losses from mistakes in the previous exercise 0 0 0 Drowings from Investment Section 40 40 2,290 Other Extra-ordinary Expenditures 0 0 0 B. Financial Incomes 0 0 0 Total of Operations (A + B + C) 29,876 43,200 55,035 From the Transaction Loan Interests 0 0 0 D. Operation Result Correction 52 1,452 182 -From Domestic Direct Long Term Loans 0 0 0 Annualyzed Income Titles 0 0 0 -Short Term Loan with State Guaranteed 0 0 0 Functional Incomes Definition for Investments0 1,242 0 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 0 Budget Incomes Transfer (4% District) 0 0 2 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 0 Budget Depositing of Unused Incomes 0 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 0 Domestic System Income Transfer 000 -Sub-Loan of Other Foreign Loans 000 Other Incomes Transfer 0 211 180 Incomes from Deposit Interests 0 0 0 Constant Transfer to Debitor and Similar 52 0 0 Incomes from Foreign Currency Exchanges 0 0 0 Total of Operations (D) 52 1,452 182 C. Extra-Ordinary Incomes 0 0 0 Result of the Functioning 40 2,290 3,132 From Closed Activities and Other Changes 0 0 0 From Mistakes of Previous Exercises 0 0 0 Corrections of Other Years 0 0 0 Other Incomes 0 0 0 Total of Opertations 36,195 46,073 53,710 D. Result of Corrected Operations 0 0 0 Total 29,968 46,942 58,349 Grand Total 36,195 46,073 53,710 Source: Berxull Commune.

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Appendix 12.7.13 Balance Sheet of Tirana Mini Municipality No.1

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 4,762 8,582 B. Current Actives 4,080 7,270 I. Own Funds 4,762 7,046 I. Intangible Fixed Assets 0 0 Basic Funds 3,277 2,889 Current Tangible Assets 0 0 Capital from Domestic Grants 1,485 4,156 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 4,080 7,270 Reserves from the Current Actives 00 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 0 0 Buildings, General Institutions 106 106 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 00 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 00 for Investments Transport Facilities 849 849 Incomes from Current Active Sellings0 0 State Reserves 0 0 III. Carried Over Result 0 1,536 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 2,204 2,319 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -564 -931 V. Instititution Participation for Third 00 Current Actives 1,485 4,926 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 1,027 1,981 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fun 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 1,027 1,981 C. Circulating Actives 7,677 7,558 Partial Prepayment for Clients (Credit 00 I.Situation of the Inventory in Process 682 546 Supplyers and Accounts Linked with 21 770 Materials 180 105 Them Situation of Inventories 502 441 Personel and Accounts Linked with 217 186 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 62 106 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 574 567 Social Security 194 201 Request for Debitors on Partial Payments or Pre- Health Security 79 73 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 00 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 1 1 State Transfer for Natural Disasters 0 0 Other Obligations 454 645 Other Operations with the State (Debitors) 574 567 C. Other Accounts 236 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 236 0 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 0 0 Result of Practice (Balance of Credit Account) 5,731 4,264 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 6,420 6,444 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 5,731 5,800 Other Values 689 645 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 11,756 14,828 Total of Liabilities 11,756 14,827 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.1.

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Appendix 12.7.14 Profit and Loss Statement of Tirana Mini Municipality No.1

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 61,019 74,603 A. Exercise Incomes 66,314 80,275 I.Payments and Personel Expenditures 14,137 9,970 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel11,329 8,131 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 0 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 2,807 1,840 - Corporation Income Tax 0 0 II. Social Security Contributions 2,094 3,411 - Taxes on Small Business 0 0 Pension and Social Security Contributions 2,094 2,520 - Other Duty Taxes 0 0 Health Contributes 0 891 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 2,291 6,102 - From the Employed People 0 0 Materials and General Office Services 669 n.a. - From Employees 0 0 Special Materials and Services 142 n.a. - From the Selfemployed 00 Services 571 n.a. - From the Farmers 0 0 Transportation Expenditures 716 n.a. - From Voluntary Securities 0 0 Travel expenditures 0 n.a. -State Contributions for the Social Security 0 0 Normal Maintenance 0 n.a. -State Contributions for the Health Security 0 0 Lease 0 n.a. c) Property Tax 0 0 Legal Compensation Contributions 0 n.a. - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 0 n.a. (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 194 n.a. Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 00 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 42,570 54,938 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 41,650 54,207 II. Non-Taxation Incomes (a+b+c) 2,883 1,320 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 920 732 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 2,883 1,320 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 0 0 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 2,882 1,320 VII.Difference of the Inventory Situation -74 181 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations - Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 62,942 73,224 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 62,942 73,224 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 56,324 72,658 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 5,880 0 - Short Term 0 0 - From the Social Security Institution (SSI) Special Payment 00 -Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level00 - Institutional Participation in National Taxes 1640 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 00 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 574 567 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 489 5,731 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 489 5,731 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 61,019 74,603 From the Transaction Loan Interests 0 0 D. Operation Result Correction 74 620 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments0202- Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 0 418 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 74 0 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 61,093 75,223 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 5,731 5,800 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 66,314 80,275 D. Result of Corrected Operations 510 748 Total 66,823 81,023 Grand Total 66,823 81,023 Source: Tirana Mini Municipality No.1.

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Appendix 12.7.15 Balance Sheet of Tirana Mini Municipality No.2

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund n.a. n.a. B. Current Actives 3,121 4,185 I. Own Funds n.a. n.a. I. Intangible Fixed Assets 0 0 Basic Funds n.a. n.a. Current Tangible Assets 0 0 Capital from Domestic Grants n.a. n.a. Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants n.a. n.a. Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use n.a. n.a. II. Current Tangible Assets 3,121 4,185 Reserves from the Current Actives n.a. n.a. Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds n.a. n.a. Buildings, General Institutions 256 256 Reserve Funds, Current Expenditures n.a. n.a. Exploitations for Network of Roads, Water Supply, etc. 670 670 From Annual Result of Assignement n.a. n.a. Technical Installations, Machineries, Equipment, Tools 668 1,870 for Investments Transport Facilities 980 980 Incomes from Current Active Sellings n.a. n.a. State Reserves 0 0 III. Carried Over Result n.a. n.a. Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions n.a. n.a. Other Economic Inventories 1,761 2,187 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -1,215 -1,778 V. Instititution Participation for Third n.a. n.a. Current Actives 0 0 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and n.a. n.a. Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations n.a. n.a. Designated Amount 0 0 I. Long Term Loans n.a. n.a. III. Financial Actives 0 0 Domestic Loans and Similar n.a. n.a. Loans and Sub-Loans 0 0 Foreign Loans n.a. n.a. Own Capital Participation 0 0 Loans without Preliminary Incash Fun n.a. n.a. IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations n.a. n.a. C. Circulating Actives 6,343 4,628 Partial Prepayment for Clients (Credit n.a. n.a. I.Situation of the Inventory in Process 8 8 Supplyers and Accounts Linked with n.a. n.a. Materials 0 0 Them Situation of Inventories 8 8 Personel and Accounts Linked with n.a. n.a. Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes n.a. n.a. Goods 0 0 Taxes Collected by State to Local n.a. n.a. Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster n.a. n.a. Differences in Prices of Stored Goods 00 Other Operations with the State n.a. n.a. Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 639 665 Social Security n.a. n.a. Request for Debitors on Partial Payments or Pre- Health Security n.a. n.a. 00 payments Other social organisations n.a. n.a. Clients and Other Similar Accounts 0 0 Other Public Institutions n.a. n.a. Personel, Pre-payments, Deficits and Penalties 00 Domestic System Institution Relations n.a. n.a. State Taxes 0 0 Extra-System Institution Relations n.a. n.a. Taxes Collected by the State to Local Government Creditors in Keeping Means n.a. n.a. 00 Accounts Other Creditors n.a. n.a. State Transfer for Natural Disasters 0 0 Other Obligations n.a. n.a. Other Operations with the State (Debitors) 639 665 C. Other Accounts n.a. n.a. Social Security 0 0 Incomes to Be Registred (Evidenced) in n.a. n.a. Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies n.a. n.a. Other Public Institutions 0 0 Incomes to Be Classified or Regulated n.a. n.a. Domestic Institutional System Relations 00Incomes Incashed before the Account Be n.a. n.a. Foreign Institutional System Relations 00Made Clear Other Debitors 0 0 Result of Practice (Balance of Credit Account) n.a. n.a. Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 5,696 3,955 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 1 0 Similar Disposable Receipts 4,076 2,922 Other Values 1,619 1,033 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 9,463 8,812 Total of Liabilities n.a. n.a. Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts n.a. n.a. Active Evidence 0 0 Passive Evidence n.a. n.a. Source: Tirana Mini Municipality No.2.

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Appendix 12.7.16 Profit and Loss Statement of Tirana Mini Municipality No.2

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 72,099 100,026 A. Exercise Incomes 6,119 98,753 I.Payments and Personel Expenditures 11,454 11,176 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel8,596 9,302 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 2,858 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 0 1,874 - Corporation Income Tax 0 0 II. Social Security Contributions 2,176 2,434 - Taxes on Small Business 0 0 Pension and Social Security Contributions 2,176 2,434 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 3,554 7,513 - From the Employed People 0 0 Materials and General Office Services 1,532 1,778 - From Employees 0 0 Special Materials and Services 0 0 - From the Selfemployed 00 Services 1,390 1,216 - From the Farmers 0 0 Transportation Expenditures 514 497 - From Voluntary Securities 0 0 Travel expenditures 0 598 -State Contributions for the Social Security 0 0 Normal Maintenance 49 361 -State Contributions for the Health Security 0 0 Lease 0 162 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 68 2,901 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 00 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 53,447 69,317 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 52,821 66,917 II. Non-Taxation Incomes (a+b+c) 0 1,622 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 626 2,400 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 0 1,622 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 0 1,622 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 0 0 VII.Difference of the Inventory Situation 0 9,586 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 1,468 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations - Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 5,401 88,650 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 5,401 88,650 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 0 87,823 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 4,640 0 - Short Term 0 0 - From the Social Security Institution (SSI) Special Payment 00 -Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level0 0 - Institutional Participation in National Taxes 123 162 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 639 665 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 718 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 0 8,481 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 0 8,481 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 72,099 100,026 From the Transaction Loan Interests 0 0 D. Operation Result Correction 0 1,427 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments0691- Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 0 736 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 0 0 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 72,099 101,453 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 0 887 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 6,119 98,753 D. Result of Corrected Operations 65,980 3,586 Total 72,099 102,340 Grand Total 72,099 102,340 Source: Tirana Mini Municipality No.2.

A12 - 20 Volume III Supporting Report

Appendix 12.7.17 Balance Sheet of Tirana Mini Municipality No.3

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 6,886 11,603 B. Current Actives 6,773 10,489 I. Own Funds 6,886 10,603 I. Intangible Fixed Assets 0 0 Basic Funds 6,686 10,403 Current Tangible Assets 0 0 Capital from Domestic Grants 200 200 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 6,773 10,489 Reserves from the Current Actives 00 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 0 0 Buildings, General Institutions 0 0 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 2,167 4,599 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 2,284 2,790 for Investments Transport Facilities 925 665 Incomes from Current Active Sellings0 0 State Reserves 0 0 III. Carried Over Result 0 1,000 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 707 1,878 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -210 -344 V. Instititution Participation for Third 00 Current Actives 0 0 Party Investment Capital Transfer 900 900 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 1,427 1,370 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fun 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 1,427 1,370 C. Circulating Actives 4,275 5,105 Partial Prepayment for Clients (Credit 00 I.Situation of the Inventory in Process 114 114 Supplyers and Accounts Linked with 00 Materials 0 0 Them Situation of Inventories 114 114 Personel and Accounts Linked with 417 627 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 40 52 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 701 969 Social Security 243 289 Request for Debitors on Partial Payments or Pre- Health Security 0 0 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 00 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 6 0 00 Accounts Other Creditors 720 402 State Transfer for Natural Disasters 0 0 Other Obligations 0 0 Other Operations with the State (Debitors) 700 968 C. Other Accounts 0 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 0 0 Result of Practice (Balance of Credit Account) 2,734 2,622 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 3,461 4,023 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 2,741 3,622 Other Values 720 401 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 11,048 15,594 Total of Liabilities 11,047 15,595 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.3.

A12 - 21 Volume III Supporting Report

Appendix 12.7.18 Profit and Loss Statement of Tirana Mini Municipality No.3

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 62,932 77,854 A. Exercise Incomes 65,682 80,935 I.Payments and Personel Expenditures 11,709 10,504 I. Duty Taxes (a+b+c+d+e+f) 0 502 Payments for Permanent Personel8,494 9,385 a) On Incomes, Capital Incomes Benefit 0 502 Payments with Contracts 0 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 3,215 1,119 - Corporation Income Tax 0 0 II. Social Security Contributions 1,854 2,243 - Taxes on Small Business 0 502 Pension and Social Security Contributions 1,854 2,243 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 2,689 5,358 - From the Employed People 0 0 Materials and General Office Services 735 569 - From Employees 0 0 Special Materials and Services 0 0 - From the Selfemployed 00 Services 801 1,300 - From the Farmers 0 0 Transportation Expenditures 491 465 - From Voluntary Securities 0 0 Travel expenditures 0 0 -State Contributions for the Social Security 0 0 Normal Maintenance 0 0 -State Contributions for the Health Security 0 0 Lease 0 0 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 661 3,023 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 46,696 59,749 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 46,131 59,749 II. Non-Taxation Incomes (a+b+c) 2,133 459 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 566 0 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 2,133 459 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 2,133 459 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 0 0 VII.Difference of the Inventory Situation -16 0 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations -Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 63,446 78,340 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 63,446 78,340 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 62,660 77,267 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 0 0 -Short Term 0 0 -From the Social Security Institution (SSI) Special Payment 00 - Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level00 - Institutional Participation in National Taxes 86104 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 700 968 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 103 1,634 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 103 1,634 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 62,932 77,854 From the Transaction Loan Interests 0 0 D. Operation Result Correction 16 459 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments00 - Sub-Loan of the Foreign Loan for the Same Government Level 00 Budget Incomes Transfer (4% District) 0 459 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 16 0 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 62,948 78,313 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 2,734 2,622 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 65,682 80,935 D. Result of Corrected Operations 0 0 Total 65,682 80,935 Grand Total 65,682 80,935 Source: Tirana Mini Municipality No.3.

A12 - 22 Volume III Supporting Report

Appendix 12.7.19 Balance Sheet of Tirana Mini Municipality No.4

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 10,373 14,599 B. Current Actives 10,286 13,931 I. Own Funds 10,337 14,202 I. Intangible Fixed Assets 0 0 Basic Funds 3,284 3,890 Current Tangible Assets 0 0 Capital from Domestic Grants 7,053 10,312 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 10,286 13,931 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 0 0 Buildings, General Institutions 0 0 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 45 45 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 46 0 for Investments Transport Facilities 1,195 795 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 37 398 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 2,148 3,367 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -500 -588 V. Instititution Participation for Third 00 Current Actives 7,352 10,312 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 2,205 2,675 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 2,205 2,675 C. Circulating Actives 6,618 6,868 Partial Prepayment for Clients (Credito 00 I.Situation of the Inventory in Process 349 271 Supplyers and Accounts Linked with 319 0 Materials 0 0 Them Situation of Inventories 349 271 Personel and Accounts Linked with 517 775 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 153 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 790 1,037 Social Security 67 0 Request for Debitors on Partial Payments or Pre- Health Security 185 209 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 0 0 State Transfer for Natural Disasters 0 0 Other Obligations 1,117 1,638 Other Operations with the State (Debitors) 790 1,037 C. Other Accounts 0 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 0 0 Result of Practice (Balance of Credit Account) 4,325 3,525 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 5,478 5,560 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 4,361 3,922 Other Values 1,117 1,638 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 16,904 20,799 Total of Liabilities 16,903 20,799 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.4.

A12 - 23 Volume III Supporting Report

Appendix 12.7.20 Profit and Loss Statement of Tirana Mini Municipality No.4

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 91,879 112,034 A. Exercise Incomes 96,332 116,178 I.Payments and Personel Expenditures 13,935 10,727 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel11,913 9,264 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 34 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 1,988 1,464 - Corporation Income Tax 0 0 II. Social Security Contributions 1,810 2,273 - Taxes on Small Business 0 0 Pension and Social Security Contributions 1,810 2,273 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 2,359 8,030 - From the Employed People 0 0 Materials and General Office Services 300 450 - From Employees 0 0 Special Materials and Services 302 300 - From the Selfemployed 00 Services 944 1,144 - From the Farmers 0 0 Transportation Expenditures 325 355 - From Voluntary Securities 0 0 Travel expenditures 70 110 -State Contributions for the Social Security 0 0 Normal Maintenance 298 1,350 -State Contributions for the Health Security 0 0 Lease 40 0 c) Property Tax 0 0 Legal Compensation Contributions 0 4,080 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 80 241 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 73,542 90,926 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 73,542 90,926 II. Non-Taxation Incomes (a+b+c) 4,267 1,480 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 0 0 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 4,267 1,480 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 4,267 1,480 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 0 0 VII.Difference of the Inventory Situation 232 79 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations -Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 91,705 113,051 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 91,705 113,051 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 82,048 109,131 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 8,731 2,742 - Short Term 0 0 - From the Social Security Institution (SSI) Special Payment 00 -Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level0 0 - Institutional Participation in National Taxes 135 141 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 790 1,037 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 360 1,648 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 360 1,648 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 91,879 112,034 From the Transaction Loan Interests 0 0 D. Operation Result Correction 360 697 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments360 0 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 0 697 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 0 0 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 92,239 112,731 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 4,325 3,525 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 96,332 116,178 D. Result of Corrected Operations 232 78 Total 96,564 116,256 Grand Total 96,564 116,256 Source: Tirana Mini Municipality No.4.

A12 - 24 Volume III Supporting Report

Appendix 12.7.21 Balance Sheet of Tirana Mini Municipality No.5

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 14,649 17,531 B. Current Actives 14,376 18,203 I. Own Funds 8,961 11,667 I. Intangible Fixed Assets 0 0 Basic Funds 4,361 4,347 Current Tangible Assets 0 0 Capital from Domestic Grants 4,600 7,320 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 14,376 18,203 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 5,687 5,864 Buildings, General Institutions 0 0 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 00 From Annual Result of Assignement 5,687 5,864 Technical Installations, Machineries, Equipment, Tools 1,758 2,582 for Investments Transport Facilities 750 750 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 0 0 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 2,183 2,983 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -602 -1,296 V. Instititution Participation for Third 00 Current Actives 10,287 13,184 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 1,284 994 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 1,284 994 C. Circulating Actives 6,119 2,426 Partial Prepayment for Clients (Credito 00 I.Situation of the Inventory in Process 273 68 Supplyers and Accounts Linked with 313 0 Materials 186 68 Them Situation of Inventories 86 0 Personel and Accounts Linked with 198 159 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 97 206 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 956 773 Social Security 217 306 Request for Debitors on Partial Payments or Pre- Health Security 0 0 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 459 323 State Transfer for Natural Disasters 0 0 Other Obligations 0 0 Other Operations with the State (Debitors) 825 671 C. Other Accounts 1,308 1,415 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 1,308 1,415 Foreign Institutional System Relations 00Made Clear Other Debitors 131 102 Result of Practice (Balance of Credit Account) 3,254 690 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 4,890 1,585 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 3,254 690 Other Values 1,636 895 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 20,495 20,629 Total of Liabilities 20,495 20,629 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.5.

A12 - 25 Volume III Supporting Report

Appendix 12.7.22 Profit and Loss Statement of Tirana Mini Municipality No.5

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures n.a. 94,703 A. Exercise Incomes n.a. 99,713 I.Payments and Personel Expenditures n.a. 16,261 I. Duty Taxes (a+b+c+d+e+f) n.a. 0 Payments for Permanent Personeln.a. 14,744 a) On Incomes, Capital Incomes Benefit n.a. 0 Payments with Contracts n.a. 0 - Taxes on Personal Incomes n.a. 0 Gratuities and Other Personel Expenditures n.a. 1,517 - Corporation Income Tax n.a. 0 II. Social Security Contributions n.a. 2,653 - Taxes on Small Business n.a. 0 Pension and Social Security Contributions n.a. 0 - Other Duty Taxes n.a. 0 Health Contributes n.a. 2,653 b)Social and Health Security Contributions n.a. 0 III.Goods/materials and Other Services n.a. 4,611 - From the Employed People n.a. 0 Materials and General Office Services n.a. 1,552 - From Employees n.a. 0 Special Materials and Services n.a. 0 - From the Selfemployed n.a. 0 Services n.a. 1,241 - From the Farmers n.a. 0 Transportation Expenditures n.a. 361 - From Voluntary Securities n.a. 0 Travel expenditures n.a. 0 -State Contributions for the Social Security n.a. 0 Normal Maintenance n.a. 204 -State Contributions for the Health Security n.a. 0 Lease n.a. 0 c) Property Tax n.a. 0 Legal Compensation Contributions n.a. 0 - Real Estate Property Tax n.a. 0 Expenditures Conected with Borrowings -n.a.0On the Real Estate Property Alienation n.a. 0 (Loans) - Other Taxes on Property n.a. 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services n.a. 0 n.a. 1,254 Commissions - On Capital Gains Value n.a. 0 IV. Different Subventions n.a. 0 - Ecsise n.a. 0 For Price Differences n.a. 0 - Taxes on Specific Services n.a. 0 To Stimulate Employment n.a. 0 - Taxes on Goods n.a. 0 Covering Losts n.a. 0 -Other Taxes on Goods and Services n.a. 0 For Individual Projects n.a. 0 e)Taxes on Trade and Inter- national Transport n.a. 0 V. Current Domestic Transfer n.a. 70,232 - Customes on Imported Goods n.a. 0 At Other Governance Levels n.a. 0 - Customes on Exported Goods n.a. 0 At Governance Institutions n.a. 0 -Other Taxes on Trade and Domestic Transport n.a. 0 At Social and Health Security n.a. 0 f) Other Duties and Taxes n.a. 0 For Housholds' Budgets and Individuals n.a. 70,232 II. Non-Taxation Incomes (a+b+c) n.a. 1,961 At NGOs n.a. 0 a)From the Enterprise and Proprietors n.a. 0 Other Domestic Transfer n.a. 0 -From Non-Commercial Public Enterprises n.a. 0 VI. Current Foreign Transfer n.a. 0 -From Commercial Public Enterprises n.a. 0 For International Institutions n.a. 0 -From Other Enterprise and Proprietors n.a. 0 For Foreign Governments n.a. 0 b)Administrative Services, Secondary Incomes n.a. 1,961 For Foreign NGOs n.a. 0 -Administrative and Regulatory Tariffs n.a. 0 Other Foreign Countries n.a. 0 -Secondary Incomes and Service Payments n.a. 1,961 VII.Difference of the Inventory Situation n.a. 945 - Taxes from Judiciary and Notaries Operations n.a. 0 VIII. In-Kind Expenditures n.a. 0 -From Goods and Sevices Sellings n.a. 0 IX.Amortisation Quotas In-Kind and - From Other Tickets n.a. 0 n.a. 0 Foreseeable Summations - Penalties and Sequestrations n.a. 0 Amortisation Quotas and Foreseeable - Lease Incomes n.a. 0 n.a. 0 Summations - Other Incomes n.a. 0 Foreseeable for Financial Activities n.a. 0 c) Other Non-Tax-Incomes n.a. 0 Extraordinary Foreseeable Summations n.a. 0 III. Current Grants (a+b) n.a. 94,674 B. Financial Expenditures (I+II) n.a. 0 a) Current Domestic Grant n.a. 94,674 I.Domestic Financial Expenditures ( a+b+c) n.a. 0 - From the Same Gov ernment Level n.a. 91,048 a)Interests for Treasury Bill and Others n.a. 0 - From the Other Government Levels n.a. 2,742 - Short Term n.a. 0 - From the Social Security Institution (SSI) Special Payment n.a. 0 -Long Term n.a. 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH n.a. 0 n.a. 0 Interests (Health) From the Same Government Leveln.a. 0 - Institutional Participation in National Taxes n.a. 0 From Other Government Level n.a. 0 -Additional Financiacing from Incomes Created by n.a. 213 From Banking System n.a. 0Domestic System n.a. c)Expenditure from the Foreign Currency -Expected Financing from the Budget n.a. 0 n.a. 0 Exchanges - Other Domestic Grants n.a. 671 II.Foreign Financing Expenditures (a+b+c+) n.a. 0 b) Current Foeign Grant n.a. 0 a)From Foreign Government Borrowings - From Foreign Governments n.a. 0 n.a. 0 (Loans) Interests -n.a.0From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation n.a. 0 n.a. 0 Interests V. In-Kind Financing n.a. 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings n.a. 3,077 n.a. 0 Interests Investments and Works in the Economy n.a. 0 C. Extra-ordinary Expenditures n.a. 0 Recovering of Foreseen Money n.a. 0 Losses from mistakes in the previous exercise n.a. 0 Drowings from Investment Section n.a. 3,077 Other Extra-ordinary Expenditures n.a. 0 B. Financial Incomes n.a. 0 Total of Operations (A + B + C) n.a. 94,703 From the Transaction Loan Interests n.a. 0 D. Operation Result Correction n.a. 2,523 -From Domestic Direct Long Term Loans n.a. 0 Annualyzed Income Titles n.a. 0 -Short Term Loan with State Guaranteed n.a. 0 Functional Incomes Definition for Investmentsn.a. 1,597 - Sub-Loan of the Foreign Loan for the Same Government Level n.a. 0 Budget Incomes Transfer (4% District) n.a. 926 -Sub-Loan of the Foreign Loan for Other Government Level n.a. 0 Budget Depositing of Unused Incomes n.a. 0 - Sub-Loan of the Foreign Loan for Enterprises n.a. 0 Domestic System Income Transfer n.a. 0 - Sub-Loan of Other Foreign Loans n.a. 0 Other Incomes Transfer n.a. 0 Incomes from Deposit Interests n.a. 0 Constant Transfer to Debitor and Similar n.a. 0 Incomes from Foreign Currency Exchanges n.a. 0 Total of Operations (A+B+C+D) n.a. 97,226 C. Extra-Ordinary Incomes n.a. 0 Result of the Functioning n.a. 690 From Closed Activities and Other Changes n.a. 0 From Mistakes of Previous Exercises n.a. 0 Corrections of Other Years n.a. 0 Other Incomes n.a. 0 Total of Opertations n.a. 99,713 D. Result of Corrected Operations n.a. -1,798 Total n.a. 97,915 Grand Total n.a. 97,915 Source: Tirana Mini Municipality No.5.

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Appendix 12.7.23 Balance Sheet of Tirana Mini Municipality No.6

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 8,559 12,700 B. Current Actives 8,260 8,924 I. Own Funds 8,406 9,037 I. Intangible Fixed Assets 0 0 Basic Funds 8,406 9,037 Current Tangible Assets 0 0 Capital from Domestic Grants 0 0 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 8,260 8,924 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 0 0 Buildings, General Institutions 0 0 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 4,558 4,711 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 2,670 3,375 for Investments Transport Facilities 1,272 1,272 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 153 3,663 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 362 471 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -602 -1,141 V. Instititution Participation for Third 00 Current Actives 0 237 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 851 1,134 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 851 1,134 C. Circulating Actives 4,973 8,779 Partial Prepayment for Clients (Credito 00 I.Situation of the Inventory in Process 147 113 Supplyers and Accounts Linked with 00 Materials 0 0 Them Situation of Inventories 147 113 Personel and Accounts Linked with 333 331 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 103 235 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 677 830 Social Security 114 192 Request for Debitors on Partial Payments or Pre- Health Security 67 71 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 59 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 234 304 State Transfer for Natural Disasters 0 0 Other Obligations 0 0 Other Operations with the State (Debitors) 617 830 C. Other Accounts 0 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 0 0 Result of Practice (Balance of Credit Account) 3,821 3,870 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 4,149 7,837 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 3,974 7,533 Other Values 175 304 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 13,233 17,704 Total of Liabilities 13,232 17,704 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.6.

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Appendix 12.7.24 Profit and Loss Statement of Tirana Mini Municipality No.6

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 77,536 96,199 A. Exercise Incomes 82,104 98,545 I.Payments and Personel Expenditures 12,098 10,678 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel10,906 9,862 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 0 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 1,192 816 - Corporation Income Tax 0 0 II. Social Security Contributions 1,946 2,288 - Taxes on Small Business 0 0 Pension and Social Security Contributions 1,946 2,288 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 3,035 5,555 - From the Employed People 0 0 Materials and General Office Services 1,102 870 - From Employees 0 0 Special Materials and Services 0 0 - From the Selfemployed 00 Services 734 1,082 - From the Farmers 0 0 Transportation Expenditures 271 360 - From Voluntary Securities 0 0 Travel expenditures 0 0 -State Contributions for the Social Security 0 0 Normal Maintenance 249 0 -State Contributions for the Health Security 0 0 Lease 0 0 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 679 3,243 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 60,503 77,713 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 60,362 77,713 II. Non-Taxation Incomes (a+b+c) 4,113 1,767 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 140 0 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 4,113 1,767 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 0 0 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 4,113 1,767 VII.Difference of the Inventory Situation -46 -35 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations - Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 77,690 95,364 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 77,690 95,364 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 72,413 94,397 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 4,526 0 - Short Term 0 0 - From the Social Security Institution (SSI) Special Payment 00 -Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level0 0 - Institutional Participation in National Taxes 134 138 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 617 830 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 300 1,413 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 300 1,413 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 77,536 96,199 From the Transaction Loan Interests 0 0 D. Operation Result Correction 746 1,282 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments700 303 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 0 944 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 46 35 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 78,282 97,481 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 3,821 1,064 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 82,104 98,545 D. Result of Corrected Operations 0 0 Total 82,104 98,544 Grand Total 82,104 98,544 Source: Tirana Mini Municipality No.6.

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Appendix 12.7.25 Balance Sheet of Tirana Mini Municipality No.7

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 19,374 23,490 B. Current Actives 18,362 22,464 I. Own Funds 19,374 23,490 I. Intangible Fixed Assets 0 0 Basic Funds 14,248 16,121 Current Tangible Assets 0 0 Capital from Domestic Grants 5,126 7,369 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 18,362 22,464 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 0 0 Buildings, General Institutions 698 698 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 8,178 8,088 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 2,584 2,584 for Investments Transport Facilities 827 2,884 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 0 0 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 1,902 4,030 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -954 -3,189 V. Instititution Participation for Third 00 Current Actives 5,126 7,369 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 1,900 2,684 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 5,380 II. Short Term Obligations 1,900 2,684 C. Circulating Actives 6,345 5,380 Partial Prepayment for Clients (Credito 90 I.Situation of the Inventory in Process 206 220 Supplyers and Accounts Linked with 170 70 Materials 0 0 Them Situation of Inventories 206 220 Personel and Accounts Linked with 248 282 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 53 32 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 2,069 1,673 Social Security 202 295 Request for Debitors on Partial Payments or Pre- Health Security 71 0 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 807 807 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 458 0 00 Accounts Other Creditors 689 2,005 State Transfer for Natural Disasters 0 0 Other Obligations 0 0 Other Operations with the State (Debitors) 1,211 680 C. Other Accounts 0 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 51 187 Result of Practice (Balance of Credit Account) 3,432 1,669 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 4,070 3,487 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 3,432 1,669 Other Values 638 1,818 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 24,706 27,844 Total of Liabilities 24,706 27,844 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.7.

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Appendix 12.7.26 Profit and Loss Statement of Tirana Mini Municipality No.7

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures n.a. 82,435 A. Exercise Incomes n.a. 83,430 I.Payments and Personel Expenditures n.a. 11,888 I. Duty Taxes (a+b+c+d+e+f) n.a. 0 Payments for Permanent Personeln.a. 9,863 a) On Incomes, Capital Incomes Benefit n.a. 0 Payments with Contracts n.a. 0 - Taxes on Personal Incomes n.a. 0 Gratuities and Other Personel Expenditures n.a. 2,024 - Corporation Income Tax n.a. 0 II. Social Security Contributions n.a. 2,530 - Taxes on Small Business n.a. 0 Pension and Social Security Contributions n.a. 2,530 - Other Duty Taxes n.a. 0 Health Contributes n.a. 0 b)Social and Health Security Contributions n.a. 0 III.Goods/materials and Other Services n.a. 7,016 - From the Employed People n.a. 0 Materials and General Office Services n.a. 768 - From Employees n.a. 0 Special Materials and Services n.a. 359 - From the Selfemployed n.a. 0 Services n.a. 0 - From the Farmers n.a. 0 Transportation Expenditures n.a. 298 - From Voluntary Securities n.a. 0 Travel expenditures n.a. 0 -State Contributions for the Social Security n.a. 0 Normal Maintenance n.a. 293 -State Contributions for the Health Security n.a. 0 Lease n.a. 0 c) Property Tax n.a. 0 Legal Compensation Contributions n.a. 0 - Real Estate Property Tax n.a. 0 Expenditures Conected with Borrowings -n.a.0On the Real Estate Property Alienation n.a. 5,299 (Loans) - Other Taxes on Property n.a. 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services n.a. 0 n.a. 0 Commissions - On Capital Gains Value n.a. 0 IV. Different Subventions n.a. 0 - Ecsise n.a. 0 For Price Differences n.a. 0 - Taxes on Specific Services n.a. 0 To Stimulate Employment n.a. 0 - Taxes on Goods n.a. 0 Covering Losts n.a. 0 -Other Taxes on Goods and Services n.a. 0 For Individual Projects n.a. 0 e)Taxes on Trade and Inter- national Transport n.a. 0 V. Current Domestic Transfer n.a. 59,671 - Customes on Imported Goods n.a. 0 At Other Governance Levels n.a. 0 - Customes on Exported Goods n.a. 0 At Governance Institutions n.a. 0 -Other Taxes on Trade and Domestic Transport n.a. 0 At Social and Health Security n.a. 0 f) Other Duties and Taxes n.a. 0 For Housholds' Budgets and Individuals n.a. 59,671 II. Non-Taxation Incomes (a+b+c) n.a. 1,697 At NGOs n.a. 0 a)From the Enterprise and Proprietors n.a. 0 Other Domestic Transfer n.a. 0 -From Non-Commercial Public Enterprises n.a. 0 VI. Current Foreign Transfer n.a. 0 -From Commercial Public Enterprises n.a. 0 For International Institutions n.a. 0 -From Other Enterprise and Proprietors n.a. 0 For Foreign Governments n.a. 0 b)Administrative Services, Secondary Incomes n.a. 1,697 For Foreign NGOs n.a. 0 -Administrative and Regulatory Tariffs n.a. 1,697 Other Foreign Countries n.a. 0 -Secondary Incomes and Service Payments n.a. 0 VII.Difference of the Inventory Situation n.a. 1,330 - Taxes from Judiciary and Notaries Operations n.a. 0 VIII. In-Kind Expenditures n.a.0-From Goods and Sevices Sellings n.a.0 IX.Amortisation Quotas In-Kind and - From Other Tickets n.a. 0 n.a. 0 Foreseeable Summations - Penalties and Sequestrations n.a. 0 Amortisation Quotas and Foreseeable - Lease Incomes n.a. 0 n.a. 0 Summations -Other Incomes n.a. 0 Foreseeable for Financial Activities n.a. 0 c) Other Non-Tax-Incomes n.a. 0 Extraordinary Foreseeable Summations n.a. 0 III. Current Grants (a+b) n.a. 78,300 B. Financial Expenditures (I+II) n.a. 0 a) Current Domestic Grant n.a. 78,300 I.Domestic Financial Expenditures ( a+b+c) n.a. 0 - From the Same Gov ernment Level n.a. 17,932 a)Interests for Treasury Bill and Others n.a. 0 - From the Other Government Levels n.a. 59,511 - Short Term n.a. 0 - From the Social Security Institution (SSI) Special Payment n.a. 0 -Long Term n.a. 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH n.a. 0 n.a. 0 Interests (Health) From the Same Government Leveln.a. 0 - Institutional Participation in National Taxes n.a. 178 From Other Government Level n.a. 0 - Additional Financiacing from Incomes Created by n.a. 0 From Banking System n.a. 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget n.a. 680 n.a. 0 Exchanges - Other Domestic Grants n.a. 0 II.Foreign Financing Expenditures (a+b+c+) n.a. 0 b) Current Foeign Grant n.a. 0 a)From Foreign Government Borrowings - From Foreign Governments n.a. 0 n.a. 0 (Loans) Interests -n.a.0From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation n.a. 0 n.a. 0 Interests V. In-Kind Financing n.a. 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings n.a. 3,433 n.a. 0 Interests Investments and Works in the Economy n.a. 0 C. Extra-ordinary Expenditures n.a. 0 Recovering of Foreseen Money n.a. 0 Losses from mistakes in the previous exercise n.a. 0 Drowings from Investment Section n.a. 3,433 Other Extra-ordinary Expenditures n.a. 0 B. Financial Incomes n.a. 0 Total of Operations (A + B + C) n.a. 82,435 From the Transaction Loan Interests n.a. 0 D. Operation Result Correction n.a. 829 -From Domestic Direct Long Term Loans n.a. 0 Annualyzed Income Titles n.a. 0 -Short Term Loan with State Guaranteed n.a. 0 Functional Incomes Definition for Investmentsn.a. 0 - Sub-Loan of the Foreign Loan for the Same Government Level n.a. 0 Budget Incomes Transfer (4% District) n.a. 829 -Sub-Loan of the Foreign Loan for Other Government Level n.a. 0 Budget Depositing of Unused Incomes n.a. 0 - Sub-Loan of the Foreign Loan for Enterprises n.a. 0 Domestic System Income Transfer n.a. 0 - Sub-Loan of Other Foreign Loans n.a. 0 Other Incomes Transfer n.a. 0 Incomes from Deposit Interests n.a. 0 Constant Transfer to Debitor and Similar n.a. 0 Incomes from Foreign Currency Exchanges n.a. 0 Total of Operations (A+B+C+D) n.a. 83,263 C. Extra-Ordinary Incomes n.a. 0 Result of the Functioning n.a. 1,496 From Closed Activities and Other Changes n.a. 0 From Mistakes of Previous Exercises n.a. 0 Corrections of Other Years n.a. 0 Other Incomes n.a. 0 Total of Opertations n.a. 83,430 D. Result of Corrected Operations n.a. 1,329 Total n.a. 84,759 Grand Total n.a. 84,759 Source: Tirana Mini Municipality No.7.

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Appendix 12.7.27 Balance Sheet of Tirana Mini Municipality No.8

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 7,027 7,960 B. Current Actives 6,970 7,702 I. Own Funds 6,515 7,246 I. Intangible Fixed Assets 0 0 Basic Funds 6,515 7,246 Current Tangible Assets 0 0 Capital from Domestic Grants 0 0 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 6,970 7,702 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 512 512 Buildings, General Institutions 3,354 3,648 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 00 From Annual Result of Assignement 512 512 Technical Installations, Machineries, Equipment, Tools 1,939 2,905 for Investments Transport Facilities 1,080 1,080 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 0 201 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 939 913 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -853 -1,357 V. Instititution Participation for Third 00 Current Actives 512 512 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 1,101 2,754 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 1,101 2,754 C. Circulating Actives 5,122 6,163 Partial Prepayment for Clients (Credito 00 I.Situation of the Inventory in Process 57 57 Supplyers and Accounts Linked with 00 Materials 0 0 Them Situation of Inventories 57 57 Personel and Accounts Linked with 212 316 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 70 51 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 666 678 Social Security 296 266 Request for Debitors on Partial Payments or Pre- Health Security 67 71 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 224 2,051 State Transfer for Natural Disasters 0 0 Other Obligations 233 0 Other Operations with the State (Debitors) 578 632 C. Other Accounts 0 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 88 46 Result of Practice (Balance of Credit Account) 3,965 3,151 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 4,400 5,428 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 1,937 3,424 Other Values 2,463 2,005 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 12,092 13,865 Total of Liabilities 12,092 13,865 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.8.

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Appendix 12.7.28 Profit and Loss Statement of Tirana Mini Municipality No.8

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 52,227 67,473 A. Exercise Incomes 52,217 70,098 I.Payments and Personel Expenditures 11,189 10,145 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel10,051 9,688 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 0 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 1,138 457 - Corporation Income Tax 0 0 II. Social Security Contributions 2,076 2,457 - Taxes on Small Business 0 0 Pension and Social Security Contributions 2,076 2,457 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 2,326 6,080 - From the Employed People 0 0 Materials and General Office Services 387 1,038 - From Employees 0 0 Special Materials and Services 168 1,280 - From the Selfemployed 00 Services 118 138 - From the Farmers 0 0 Transportation Expenditures 223 234 - From Voluntary Securities 0 0 Travel expenditures 0 0 -State Contributions for the Social Security 0 0 Normal Maintenance 145 0 -State Contributions for the Health Security 0 0 Lease 0 0 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 1,284 3,391 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 34,156 48,334 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 33,910 48,334 II. Non-Taxation Incomes (a+b+c) 1,867 875 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 247 0 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 1,867 875 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 0 0 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 45 360 VII.Difference of the Inventory Situation 2,479 458 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations - Other Incomes 1,822 514 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 50,350 69,223 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 50,350 69,223 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 13,289 17,134 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 36,371 51,352 -Short Term 0 0 -From the Social Security Institution (SSI) Special Payment 00 - Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level0 0 - Institutional Participation in National Taxes 112 105 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 578 632 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 0 0 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 0 0 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 52,227 67,473 From the Transaction Loan Interests 0 0 D. Operation Result Correction 3,011 1,639 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles n.a. 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investmentsn.a. 1,244 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) n.a. 360 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes n.a. 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer n.a. 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer n.a. 35 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar n.a. 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 55,238 69,112 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 1,937 3,222 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 52,217 70,098 D. Result of Corrected Operations 4,958 2,237 Total 57,175 72,335 Grand Total 57,175 72,335 Source: Tirana Mini Municipality No.8.

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Appendix 12.7.29 Balance Sheet of Tirana Mini Municipality No.9

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 13,571 17,982 B. Current Actives 6,508 7,529 I. Own Funds 12,833 17,243 I. Intangible Fixed Assets 0 0 Basic Funds 5,780 6,932 Current Tangible Assets 0 0 Capital from Domestic Grants 7,053 10,312 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 6,508 7,529 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 738 738 Buildings, General Institutions 2,384 2,384 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 00 From Annual Result of Assignement 738 738 Technical Installations, Machineries, Equipment, Tools 3,412 5,061 for Investments Transport Facilities 690 690 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 0 0 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 322 233 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -1,038 -1,577 V. Instititution Participation for Third 00 Current Actives 738 738 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 4,553 2,649 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 4,553 2,649 C. Circulating Actives 6,546 4,444 Partial Prepayment for Clients (Credito 163 274 I.Situation of the Inventory in Process 52 141 Supplyers and Accounts Linked with 606 58 Materials 0 0 Them Situation of Inventories 52 141 Personel and Accounts Linked with 502 111 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 362 393 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 1,883 1,024 Social Security 250 244 Request for Debitors on Partial Payments or Pre- Health Security 0 0 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 163 19 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 579 199 State Transfer for Natural Disasters 0 0 Other Obligations 2,091 1,370 Other Operations with the State (Debitors) 1,720 1,004 C. Other Accounts 0 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 0 0 Result of Practice (Balance of Credit Account) -5,070 -8,658 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 4,610 3,279 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 1,992 1,654 Other Values 2,618 1,625 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 13,054 11,973 Total of Liabilities 13,054 11,973 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.9.

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Appendix 12.7.30 Profit and Loss Statement of Tirana Mini Municipality No.9

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 58,783 80,052 A. Exercise Incomes 63,766 79,842 I.Payments and Personel Expenditures 12,508 10,358 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel9,539 8,123 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 19 180 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 2,950 2,055 - Corporation Income Tax 0 0 II. Social Security Contributions 1,964 2,350 - Taxes on Small Business 0 0 Pension and Social Security Contributions 1,964 2,350 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 3,381 6,786 - From the Employed People 0 0 Materials and General Office Services 785 1,097 - From Employees 0 0 Special Materials and Services 0 0 - From the Selfemployed 00 Services 1,517 1,494 - From the Farmers 0 0 Transportation Expenditures 402 364 - From Voluntary Securities 0 0 Travel expenditures 277 0 -State Contributions for the Social Security 0 0 Normal Maintenance 0 132 -State Contributions for the Health Security 0 0 Lease 0 0 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 400 3,698 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 43,074 59,048 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 42,736 58,956 II. Non-Taxation Incomes (a+b+c) 3,865 1,393 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 338 91 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 3,863 1,318 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 92 680 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 0 0 VII.Difference of the Inventory Situation -2,143 1,511 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations - Other Incomes 3,771 638 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 2 75 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 59,901 78,449 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 59,901 78,449 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 16,611 16,350 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 41,425 60,923 -Short Term 0 0 -From the Social Security Institution (SSI) Special Payment 00 - Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level0 0 - Institutional Participation in National Taxes 146 172 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 1,720 1,004 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 0 0 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 0 0 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 58,783 80,052 From the Transaction Loan Interests 0 0 D. Operation Result Correction 3,483 1,636 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments1,338 882 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 2 754 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 2,143 0 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 62,266 81,688 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 0 1,654 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 63,766 79,842 D. Result of Corrected Operations -1,500 3,500 Total 62,266 83,343 Grand Total 62,266 83,343 Source: Tirana Mini Municipality No.9.

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Appendix 12.7.31 Balance Sheet of Tirana Mini Municipality No.10

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 5,500 8,750 B. Current Actives 5,321 8,178 I. Own Funds 5,500 8,362 I. Intangible Fixed Assets 0 0 Basic Funds 5,500 6,871 Current Tangible Assets 0 0 Capital from Domestic Grants 0 1,491 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 5,321 8,178 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 1,770 1,770 II. Other Own Funds 0 0 Buildings, General Institutions 0 0 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 00 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 00 for Investments Transport Facilities 695 1,028 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 0 387 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 3,135 4,646 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -279 -758 V. Instititution Participation for Third 00 Current Actives 0 1,491 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 2,922 4,481 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 2,922 4,481 C. Circulating Actives 4,111 5,616 Partial Prepayment for Clients (Credito 60 0 I.Situation of the Inventory in Process 213 185 Supplyers and Accounts Linked with 35 33 Materials 0 0 Them Situation of Inventories 213 185 Personel and Accounts Linked with 432 361 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 124 189 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 617 2,131 Social Security 0 242 Request for Debitors on Partial Payments or Pre- Health Security 0 0 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 0 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 2,271 3,655 State Transfer for Natural Disasters 0 0 Other Obligations 0 0 Other Operations with the State (Debitors) 556 826 C. Other Accounts 0 0 Social Security 60 0 Incomes to Be Registred (Evidenced) in 00 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 0 1,304 Result of Practice (Balance of Credit Account) 1,009 563 Other Debitor Requests 0 0 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 3,281 3,301 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 1,009 950 Other Values 2,271 2,351 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 9,432 13,794 Total of Liabilities 9,431 13,793 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.10.

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Appendix 12.7.32 Profit and Loss Statement of Tirana Mini Municipality No.10

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 44,809 54,339 A. Exercise Incomes 45,796 56,929 I.Payments and Personel Expenditures 12,234 9,770 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel11,237 8,617 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 0 0 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 997 1,153 - Corporation Income Tax 0 0 II. Social Security Contributions 2,109 2,322 - Taxes on Small Business 0 0 Pension and Social Security Contributions 2,109 2,322 - Other Duty Taxes 0 0 Health Contributes 0 0 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 2,887 5,459 - From the Employed People 0 0 Materials and General Office Services 632 1,726 - From Employees 0 0 Special Materials and Services 204 178 - From the Selfemployed 00 Services 933 458 - From the Farmers 0 0 Transportation Expenditures 375 137 - From Voluntary Securities 0 0 Travel expenditures 165 356 -State Contributions for the Social Security 0 0 Normal Maintenance 50 116 -State Contributions for the Health Security 0 0 Lease 0 75 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 529 2,412 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 27,557 38,143 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 27,513 34,572 II. Non-Taxation Incomes (a+b+c) 1,207 506 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 44 3,571 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 1,207 506 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 1,207 506 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 0 0 VII.Difference of the Inventory Situation 23 -1,355 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations -Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 0 0 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 44,195 55,414 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 44,195 55,414 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 38,389 14,742 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 5,174 39,763 - Short Term 0 0 - From the Social Security Institution (SSI) Special Payment 00 -Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level00 - Institutional Participation in National Taxes 7683 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 556 826 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 394 1,009 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 394 1,009 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 44,809 54,339 From the Transaction Loan Interests 0 0 D. Operation Result Correction 0 1,686 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments0 100 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 0 231 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 0 1,355 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 44,809 56,025 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 1,009 904 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 45,796 56,929 D. Result of Corrected Operations 23 0 Total 45,819 56,929 Grand Total 45,819 56,929 Source: Tirana Mini Municipality No.10.

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Appendix 12.7.33 Balance Sheet of Tirana Mini Municipality No.11

(1,000 Leks) Assets2003 2004 Liabilities 2003 2004 A.Transfer Results (Balance of Payment to Debitors) 0 0 A. Own Fund 6,202 6,885 B. Current Actives 6,003 7,298 I. Own Funds 6,198 6,885 I. Intangible Fixed Assets 0 0 Basic Funds 6,198 6,602 Current Tangible Assets 0 0 Capital from Domestic Grants 0 283 Amortization of Intangible Current Assets (-) 0 0 Capital from Foreign Grants 0 0 Provision for Increase of Current Intangible Actives 0 0 Current Actives in Use 0 0 II. Current Tangible Assets 6,003 7,298 Reserves from the Current Actives 0 0 Soils, Terrains 0 0 Re-evaluated Forests, Plantations 0 0 II. Other Own Funds 0 0 Buildings, General Institutions 2,802 2,896 Reserve Funds, Current Expenditures 0 0 Exploitations for Network of Roads, Water Supply, etc. 00 From Annual Result of Assignement 00 Technical Installations, Machineries, Equipment, Tools 1,447 1,845 for Investments Transport Facilities 300 417 Incomes from Current Active Sellings 0 0 State Reserves 0 0 III. Carried Over Result 4 0 Slaughtering Facilities of Animals and Cattles 00IV.Extra-Ordinary Sub-Ventions 00 Other Economic Inventories 2,141 2,724 (Provisions for Financial Support) Tangible (Enboddied) Current Actives Amortisation (-) -687 -1,455 V. Instititution Participation for Third 00 Current Actives 0 871 Party Investment Capital Transfer 0 0 VI. Total Provisions for Risks and 00 Local Cost 0 0 Expenditures Damaged Current Tangible Assets 0 0 B. Obligations 1,389 2,212 Designated Amount 0 0 I. Long Term Loans 0 0 III. Financial Actives 0 0 Domestic Loans and Similar 00 Loans and Sub-Loans 0 0 Foreign Loans 0 0 Own Capital Participation 0 0 Loans without Preliminary Incash Fund 00 IV. Tangible Active Devaluation (-) 0 0 II. Short Term Obligations 1,389 2,212 C. Circulating Actives 6,054 4,018 Partial Prepayment for Clients (Credito 00 I.Situation of the Inventory in Process 195 175 Supplyers and Accounts Linked with 304 647 Materials 0 0 Them Situation of Inventories 195 175 Personel and Accounts Linked with 247 366 Products, Works, Services in Process 00 Them Products 0 0 State Charges and Taxes 29 35 Goods 0 0 Taxes Collected by State to Local 00 Livestock in Slaughtering 0 0 Government Account Incashed Money or at the Thirds 0 0 State Transfer for Natural Disaster 0 0 Differences in Prices of Stored Goods 00 Other Operations with the State 00 Provision for Devaluations (-) 0 0 (Creditor) II. Incashment Requests on Debitors 1,006 875 Social Security 282 266 Request for Debitors on Partial Payments or Pre- Health Security 0 0 00 payments Other social organisations 0 0 Clients and Other Similar Accounts 0 0 Other Public Institutions 0 0 Personel, Pre-payments, Deficits and Penalties 0 9 Domestic System Institution Relations 0 0 State Taxes 0 0 Extra-System Institution Relations 0 0 Taxes Collected by the State to Local Government Creditors in Keeping Means 0 0 00 Accounts Other Creditors 0 0 State Transfer for Natural Disasters 0 0 Other Obligations 527 897 Other Operations with the State (Debitors) 862 728 C. Other Accounts 1,432 0 Social Security 0 0 Incomes to Be Registred (Evidenced) in 1,432 0 Health Security 0 0 Incoming Years Other Social Organisations 0 0 Passive Converting Differencies 0 0 Other Public Institutions 0 0 Incomes to Be Classified or Regulated 0 0 Domestic Institutional System Relations 00Incomes Incashed before the Account Be 00 Foreign Institutional System Relations 00Made Clear Other Debitors 42 25 Result of Practice (Balance of Credit Account) 3,034 2,218 Other Debitor Requests 102 113 Provisions for Devaluations (-) 0 0 III. Paper-Holdings (Certificates) 0 0 Paper-Holdings 0 0 Provisions for Devaluations (-) 0 0 IV. Self-Disposable Receipts 4,854 2,968 Values to be Incashed 0 0 Bank Accounts 0 0 Cash 0 0 Similar Disposable Receipts 3,039 2,218 Other Values 1,815 750 Credits and Down Payments 0 0 Accounts in Credit Organisations 0 0 Other Active Accounts 0 0 Converting Active Differences 0 0 Expenditures to be Share in Some Exercises 00 Expenditure for the Future 0 0 Exercise Results (Balance of Debitors' Accounts) 00 Total of Actives 12,058 11,315 Total of Liabilities 12,058 11,315 Out of Balance Sheet Accounts 0 0 Extra Balance Sheet Accounts 0 0 Active Evidence 0 0 Passive Evidence 0 0 Source: Tirana Mini Municipality No.11.

A12 - 37 Volume III Supporting Report

Appendix 12.7.34 Profit and Loss Statement of Tirana Mini Municipality No.11

(1,000 Leks) Expenditure 2003 2004Revenue 2003 2004 A. Exercise Expenditures 91,045 114,792 A. Exercise Incomes 94,488 118,836 I.Payments and Personel Expenditures 14,998 12,715 I. Duty Taxes (a+b+c+d+e+f) 0 0 Payments for Permanent Personel7,817 9,244 a) On Incomes, Capital Incomes Benefit 0 0 Payments with Contracts 0 1,661 - Taxes on Personal Incomes 0 0 Gratuities and Other Personel Expenditures 7,181 1,811 - Corporation Income Tax 0 0 II. Social Security Contributions 2,232 2,611 - Taxes on Small Business 0 0 Pension and Social Security Contributions 2,033 2,474 - Other Duty Taxes 0 0 Health Contributes 200 137 b)Social and Health Security Contributions 0 0 III.Goods/materials and Other Services 2,731 8,710 - From the Employed People 0 0 Materials and General Office Services 1,121 1,044 - From Employees 0 0 Special Materials and Services 144 136 - From the Selfemployed 0 0 Services 631 1,718 - From the Farmers 0 0 Transportation Expenditures 572 602 - From Voluntary Securities 0 0 Travel expenditures 27 0 -State Contributions for the Social Security 0 0 Normal Maintenance 0 0 -State Contributions for the Health Security 0 0 Lease 0 0 c) Property Tax 0 0 Legal Compensation Contributions 0 0 - Real Estate Property Tax 0 0 Expenditures Conected with Borrowings -00On the Real Estate Property Alienation 00 (Loans) - Other Taxes on Property 0 0 Other Operational Expenditures as Bank d) Taxes on Goods and Services 0 0 236 5,210 Commissions - On Capital Gains Value 0 0 IV. Different Subventions 0 0 - Ecsise 0 0 For Price Differences 0 0 - Taxes on Specific Services 0 0 To Stimulate Employment 0 0 - Taxes on Goods 0 0 Covering Losts 0 0 -Other Taxes on Goods and Services 0 0 For Individual Projects 0 0 e)Taxes on Trade and Inter- national Transport 0 0 V. Current Domestic Transfer 71,089 90,736 - Customes on Imported Goods 0 0 At Other Governance Levels 0 0 - Customes on Exported Goods 0 0 At Governance Institutions 0 0 -Other Taxes on Trade and Domestic Transport 0 0 At Social and Health Security 0 0 f) Other Duties and Taxes 0 0 For Housholds' Budgets and Individuals 70,978 90,149 II. Non-Taxation Incomes (a+b+c) 3,553 2,100 At NGOs 0 0 a)From the Enterprise and Proprietors 0 0 Other Domestic Transfer 112 587 -From Non-Commercial Public Enterprises 0 0 VI. Current Foreign Transfer 0 0 -From Commercial Public Enterprises 0 0 For International Institutions 0 0 -From Other Enterprise and Proprietors 0 0 For Foreign Governments 0 0 b)Administrative Services, Secondary Incomes 112 849 For Foreign NGOs 0 0 -Administrative and Regulatory Tariffs 112 849 Other Foreign Countries 0 0 -Secondary Incomes and Service Payments 0 0 VII.Difference of the Inventory Situation -6 20 - Taxes from Judiciary and Notaries Operations 0 0 VIII. In-Kind Expenditures 0 0 -From Goods and Sevices Sellings 0 0 IX.Amortisation Quotas In-Kind and - From Other Tickets 0 0 00 Foreseeable Summations - Penalties and Sequestrations 0 0 Amortisation Quotas and Foreseeable - Lease Incomes 0 0 00 Summations -Other Incomes 0 0 Foreseeable for Financial Activities 0 0 c) Other Non-Tax-Incomes 3,441 1,251 Extraordinary Foreseeable Summations 0 0 III. Current Grants (a+b) 90,665 113,697 B. Financial Expenditures (I+II) 0 0 a) Current Domestic Grant 90,665 113,697 I.Domestic Financial Expenditures ( a+b+c) 0 0 - From the Same Gov ernment Level 15,998 20,157 a)Interests for Treasury Bill and Others 0 0 - From the Other Government Levels 73,661 92,647 -Short Term 0 0 -From the Social Security Institution (SSI) Special Payment 00 - Long Term 0 0 Budget b)For Other Domestic Borrowings (Loans) - From the Budget to Cover the Deficit of SSI and ISKSH 00 00 Interests (Health) From the Same Government Level0 0 - Institutional Participation in National Taxes 145 165 From Other Government Level 0 0 - Additional Financiacing from Incomes Created by 0 0 From Banking System 0 0 Domestic System c)Expenditure from the Foreign Currency -Expected Financing from the Budget 862 728 00 Exchanges - Other Domestic Grants 0 0 II.Foreign Financing Expenditures (a+b+c+) 0 0 b) Current Foeign Grant 0 0 a)From Foreign Government Borrowings - From Foreign Governments 0 0 00 (Loans) Interests -00From International Financing Institutions b)From International Institutions financing IV. Change of Product Situation 0 0 00 Interests V. In-Kind Financing 0 0 c)From Other Foreign Borrowings (Loans) VI. Investment Works and Recoverings 270 3,039 00 Interests Investments and Works in the Economy 00 C. Extra-ordinary Expenditures 0 0 Recovering of Foreseen Money 0 0 Losses from mistakes in the previous exercise 0 0 Drowings from Investment Section 270 3,039 Other Extra-ordinary Expenditures 0 0 B. Financial Incomes 0 0 Total of Operations (A + B + C) 91,045 114,792 From the Transaction Loan Interests 0 0 D. Operation Result Correction 409 1,845 -From Domestic Direct Long Term Loans 0 0 Annualyzed Income Titles 0 0 -Short Term Loan with State Guaranteed 0 0 Functional Incomes Definition for Investments403 997 - Sub-Loan of the Foreign Loan for the Same Government Level 0 0 Budget Incomes Transfer (4% District) 0 849 -Sub-Loan of the Foreign Loan for Other Government Level 0 0 Budget Depositing of Unused Incomes 0 0 - Sub-Loan of the Foreign Loan for Enterprises 0 0 Domestic System Income Transfer 0 0 - Sub-Loan of Other Foreign Loans 0 0 Other Incomes Transfer 6 0 Incomes from Deposit Interests 0 0 Constant Transfer to Debitor and Similar 0 0 Incomes from Foreign Currency Exchanges 0 0 Total of Operations (A+B+C+D) 91,454 116,637 C. Extra-Ordinary Incomes 0 0 Result of the Functioning 3,034 2,218 From Closed Activities and Other Changes 0 0 From Mistakes of Previous Exercises 0 0 Corrections of Other Years 0 0 Other Incomes 0 0 Total of Opertations 94,488 118,836 D. Result of Corrected Operations 0 19 Total 94,488 118,855 Grand Total 94,488 118,855 Source: Tirana Mini Municipality No.11.

A12 - 38 Volume III Supporting Report

Appendix 12.7.35 Balance Sheets of UKT (Million Leks) Assets 1999 2000 2001 2002 2003 2004 2005Liabilities 1999 2000 2001 2002 2003 2004 2005 A. Signed Unrequestable Capital 0 0 0 0 0 0 0 A. Own Capitals 607 2,362 2,365 2,462 2,887 2,941 5,737 B. Fixed Assets 2,164 3,930 5,538 5,463 5,782 5,645 8,478 I. Foundation Capital, 3362,249 2,220 2,265 2,606 2,608 5,321 I. Intangible Fixed Assets 1 0 0 0 4 4 3 Reserves, Profits/ Losses a. Expenses for From This Distributed 0 00044 4 Initiation and a. Signed Capital (Equity) 289 2,009 2,009 2,009 2,562 2,562 2,562 b. Expenses of b. Primes Linked to the 000000 0 0 0 0000 0 Research and Capital c. Others in Exploitation 11 11 11 0 0 0 0 c. Differences from Re- 0 00000 2,701 d. Partial Delivered Evaluation 0 0000 0 0 Paymentas d. Reserves 4 196 199 199 0 40 46 e.Amortizations (-)-10-11-110 0 0-1 -Legal Reserves 402302 3 f. Provisions for -Statuary Reserves 000000 0 000000 0 Devaluation (-) - Other Reserves 0 196 196 196 0 38 44 II. Tangible Fixed Assets 2,162 3,930 5,538 5,463 5,778 5,641 8,474 e. Transferred Profits or 000000 a. Soils, Terrains, Losses (Loss -) Buildings, & General 71 730 2,166 2,215 2,336 3,831 5,661 f. Profits or Losses from 43 44 13 57 45 7 13 Institutions the Activity (Loss -) b. Technicl II. Other Own Funds (Valid 212 64353 55 5 Installations, 95 200 199 207 309 340 217 for State Enterprises) Machineries, a. Development Fund 161 0 37 48 0 0 0 c. Others in b. Fund for the 360 2,744 2,767 2,784 3,141 3,235 2,576 Exploitations (the Supplementary Prices 0 0000 0 0 d. In Process and Partial for Emploiers 1,897 2,067 2,297 2,239 2,239 780 20 Paymenbts c. Fund of Emergency 366555 5 e. Amortizations (-) -260 -1,811 -1,891 -1,982 -2,247 -2,545 0 Assistance f. Provisions for d.Other Funds 48000000 0 00000 0 Devaluation (-) III. Subsidiary for Investments 59 107 102 143 276 328 411 III. Financial Fixed Assets 0 0 0 0 0 0 0 IV. Provisions for Risks and 0 00000 0 a. Participations and Expenses 000000 0 Other Financial titles a.Provisions for Risks 000000 0 b. Reqwuest of b.Provisions for Expenses000000 0 Debitors Linked with 0 0000 0 0 B. Accounts Payable 2,114 2,373 4,204 3,977 4,203 3,879 4,113 Participations I. Long Term Liabilities 1,897 2,067 3,729 3,788 3,892 3,734 3,960 c. Given Credits 0 0 0 0 0 0 0 a. Loans from Banks and 1,897 2,067 3,729 3,788 3,892 955 1,046 d. Provisions for Other Institutions 000000 0 Devaluation (-) b. Other Loans for C. Circulating Actives 557 806 1,031 978 1,310 1,431 1,613 Products, Works, 0 00002,756 2,863 I. Situation of the Services in Process 27 38 40 80 90 125 117 Inventory in Process c. Incashed Sums for 000000 0 a. Raw Materials and Orders 24 35 37 72 82 117 106 Other Materias d. Suppliers for Buyings 0 000 0 0 0 b. Products, Works, and Services 000000 0 Services in Process e.State 000002323 c. Products and Goods 0 0 0 0 0 0 0 f.Partners 000000 0 d. Other Situations of g.Other Obligations 00000028 5771515 8 11 Inventory II. Current Liabilities 217 306 476 189 311 143 148 e. Provisions for a. Loans from Banks and -3 -3 -4 -7 -7 0 0 0000 00 0 Devaluation (-) Other Institutions II. Accounts Receivable 455 659 833 703 965 1,170 1,339 b. Other Loans for Long Term Credits Products, Works, 00000 0 0 a. Clients for Selling Services in Process 455 658 829 700 955 1,141 1,288 and Services c. Incashed Sums for 0 00000 0 b. Partners with Non- Orders 000000 Delivered Capital d. Suppliers for Buyings 182 282 459 171 185 45 41 c. Personnel and Persons 0 0 0 0 3 3 4 and Services d.Other Requests 014362648e.Personnel 5667101112 e. Provisions for f. Social Assurance and 000000 0 455676 77 77 Devaluation (-) Similars III. Bonus with Provisional g.State Taxes 2391236210 000000 0 Alocation h.Partners 000000 0 a. Shares, Obligations, i.Other Obligations 444458 8 Treasury Bonus and 000000 0 III. Taken or Registered in 000001 5 Similar Advance Revenues b. Provisions for C.Other Accounts 01111478388 000000 0 Devaluation (-) a. Pasive Conversion 00000 477 386 IV. Liquids and Other Cash Differenmces 75 109 158 194 256 136 156 Values b. Counter-party of Emboided a. Bank Deposits and Stable Active (AQT) 011111 1 75 109 157 194 255 135 156 Other Accounts Excluded from the Capital b.Cash 000000 0 c. Other Cash Values 0 0 0 0 0 1 0 V. Advanced Paid or 000000 0 Registrated Expenses D. Other Accounts 00000222147 a. Expenses (Costs) to 0000 00 0 Be Distributed b. Difference of 00000222147 Conversion Actives Total of Actives 2,721 4,737 6,568 6,441 7,092 7,298 10,238 Total of Liabilities 2,721 4,735 6,569 6,439 7,091 7,297 10,236 Accounts Out Of Balance 0 0 0 0 0 0 0Accounts Out Of Balance 000000 0 Hired Fixed Assets 0 0 0 0 0 0 0 Other Assets of third Subjects 0 0 0 0 0 0 0 Other Accounts Out Of Balance 000000 0 Source: UKT.

A12 - 39 Volume III Supporting Report

Appendix 12.7.36 Profit and Loss Statement of UKT (Million Leks) Expenditures 1999 2000 2001 2002 2003 2004 2005Revenues 1999 2000 2001 2002 2003 2004 2005 I. Reduction of Own Production I. Revenues Included in the 00000 0 0 368 540 565 650 774 916 1,057 Stock Business II. Exploitation Expenses and This is the net figures of 308 514 565 626 814 1,117 1,084 Other Flowing business. 1. Raw Materials and Other From this : Export 27 53 69 114 111 186 234 Materials -1.Buying During From the Sale of the Own 19 64 74 158 120 221 226 366 537 561 644 760 848 944 Exercising Product -2.Change of Situations From the Performance of 8-11 -5 -44 -9 -35 8 23461468113 (+ and/or -) Services 2. Goods 0 0 0 0 0 0 0 3. From the Sale of Goods 0 0 0 0 0 0 0 -Buying During 4. Other Sales and Services 0 0 0 0 0 0 0 0000000 Exercising -II.Change of Situations Other Revenes (Other than 00000 0 0 31 49 47 67 86 233 28 (+ and/or -) financal) 3. Supplies, Subtreatments 92 117 162 140 182 227 189 and Services 5. Additional of Own 00000 0 0 4. Expenses for the Production Situations 152 203 241 263 334 383 407 Personnel 6. Production of Durable 0 0670 0 0 a) Salaries 94 123 143 157 212 230 245 Actives b)Prices and Other 7. Subsidiary for Exploitation 12 40 18 47 67 201 0 27 39 52 55 57 83 86 Treatment 8. Other Flowing Revenues 19 8 0 1 3 0 0 c) Social Assurances a. Price of Sale for the 31 40 46 50 64 71 76 00000 0 0 and Similars Durable Actives 5. Fiscal Obligations, b. Incashment of the 288119910 0 0000 0 0 Taxes, and Similar Released debitors 6. Other Flowing Expenses 0 1 3 2 0 14 4 c. Others 19 8 0 1 3 0 0 a)Accounting Value of 9. Re-Take from 0131011 0 0 22 11 17 33 28 Sold Durable Actives Amortization and b) Losses from Incash- a. Re-Take of 0000000 ment of Debitors Amortization for 0 0011 17 33 28 c)Others 00000123 Durable Actives 7. Amortizations and b. 35 131 82 96 178 299 241 Re-Take of Provisions Provisions 0 0000 0 0 for Durable Actives a) Amortization of 35 130 82 92 177 299 241 Durable Actives c. Re-Take of b) Provisions for Amortization for 0 0000 0 0 Devaluation of 0100000 Circulating Actives Durable Actives d. Re-Take of Provisions c) Provisions for for Risks and 002200 0 0 Devaluation of 0004000 Expenses Circulating Actives d)Provisions for Risks Sub Total (I + II) 400 589 612 717 860 1,149 1,085 0000000 of Expenses e)The Quotation of the III. Financal Revenues 1 7 10 12 13 12 30 Expenses to Be 0000000 10. Interest Gained and the 1143430 Distributed Similar Sub Total (I + II) 308 514 565 626 814 1,117 1,084 11. Plus-Value from the Sale 00000 0 0 III. Financial Expenses 31 19 29 26 32 30 22 of Bonuses of Alocation 8. Interest to Be Paid and 12. Positive Difference from 31 19 29 26 32 30 22 0000000 Re-imbursed Exchange 9. Minus-value from Sale of 13. Re-Take of Provisions for 0000000 0000000 the Bonus of Alocation Financial Actives 10. Negative Difference from 14. Other Financial Revenues 0 6 6 9 9 10 30 0000000 Exchange 11. Provisions for the Financial Durable 0000000 Actives of Circulation 12. Other Financial Expenses 0 0 0 0 0 0 0 Total (I + II + III) 339 533 594 652 846 1,147 1,106 Total (I + II + III) 400 596 622 728 873 1,161 1,115 Result from Common Activities 61 63 28 76 27 14 9 Result from the Common Activities 0 0 0 0 0 0 0 IV. Extra-Ordinary Expenses Losses00000 0 0 0000 009 (Extra-Ordinary Results) IV. Extra-Ordinary Revenues 0 0 0 0 0 0 9 V. Profit before Taxes 61 63 28 76 27 14 18 Losses 0 0 0 0 0 0 0 VI. Taxes over Profit and Similar 18 19 15 19 15 7 5 V. Balance's Result 0 0 0 0 0 0 0 a) Tax over Profit (Profit Losses00000 0 0 18 19 15 19 15 7 5 from Common Activities) b) Other Subtractions 0 0 0 0 0 0 0 VII. Net Profit (or of the Balance) 43 44 13 57 12 7 13 (V - VI) Source: UKT.

A12 - 40 Volume III Supporting Report 15,368 Inpatient 4,885 Weighted in Average Whole Targeted Area Outpatient 13,037 Paskuqan Commune 13,491 4,105 Inpatient Outpatient Report No.26213-AL, November 5, 2003, the World Bank. Bank. Report No.26213-AL, November 5, 2003, World the Bank. Report No.26213-AL, November 5, 2003, World the Kashar Commune holds in the service area. service the in holds 4,248 Real Estate in Albania). Albania). in Estate Real Outpatient Inpatient 4. Inpatient (Leks/HH per Year) per (Leks/HH Savingof Amount Income Decreasing Kamza MunicipalityKamza 4,076 12,944 Outpatient Area Whole Inpatient Targeted Weighted Average in Average 3,909 Berxulle Commune Outpatient Appendix 12.11.1 Appendix Estimation Economic of Benefit 400 360 4,193 Paskuqan Commune 1. (Leks/HH per Year) per(Leks/HH 1,897 5,071 16,104 12,413 Tirana Municipality Berxulle Commune Kashar Commune Outpatient Inpatient Expected Willingness of People to Pay ) 1,267 Kamza er Year Municipality p 3. 244 660 Saving Amount of Amount Saving Leks/HH 4,926 Tirana ( Medical Expenditure Basic data and information for the nation and Tirana District are based on the information of the “Albania Poverty Assessment” Assessment” Poverty “Albania the of information based the on are District Tirana and nation the for information and data Basic Basic data and information in Tirana Municipality and other territories are based on the information of the Alfa Information (a Alfa the of information the are based and other on territories Municipality Tirana in information and data Basic Assessment” Poverty “Albania the of information based the on are District Tirana and nation the for information and data Basic Estimated based on existing bills raised and actual collected charges for sewerage treatment services and total number of treatment and of totalhouse services for sewerage number charges collected actual and raised basedEstimated bills on existing

Outpatient Inpatient Municipality 4. 2. 3. 1. r Yea Year Items Items Benefit Benefit the Base the Base Benefit in Benefit in Economic Economic Amount ofAmount Amount ofAmount Remarks & Remarks Sources

A12 - 41 Volume III Supporting Report

Appendix 12.11.2 Economic Evaluation of Master Plan (Case B-3d) (Million Leks) Cost Benefit Saving of Re- Saving of Willing- Medical Cash Year Construc OM place- Income Decrease Total ness to Expenditure Total Balance tion Cost Cost ment Pay Out- In- Out- In- Cost patient patient patient patient 2005 0 0 0 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 0 0 0 2009 402 0 0 402 0 0 0 0 0 0 -402 2010 903 0 0 903 0 0 0 0 0 0 -903 2011 1,215 0 0 1,215 0 0 0 0 0 0 -1,215 2012 1,973 0 0 1,973 0 0 0 0 0 0 -1,973 2013 1,999 0 0 1,999 0 0 0 0 0 0 -1,999 2014 1,245 67 0 1,312 272 13 36 97 308 727 -585 2015 2,044 69 0 2,113 286 14 38 102 323 762 -1,350 2016 3,008 72 0 3,080 300 15 40 106 338 799 -2,281 2017 2,288 75 0 2,362 314 16 42 112 354 837 -1,525 2018 830 174 0 1,004 713 35 95 249 791 1,883 880 2019 1,052 179 0 1,231 752 37 100 262 833 1,983 753 2020 1,041 183 0 1,224 792 39 105 276 876 2,088 864 2021 1,061 187 0 1,248 835 41 111 290 920 2,196 948 2022 236 0 236 911 50 135 348 1,105 2,548 2,312 2023 236 0 236 911 50 135 348 1,105 2,548 2,312 2024 236 0 236 911 50 135 348 1,105 2,548 2,312 2025 236 0 236 911 50 135 348 1,105 2,548 2,312 2026 236 0 236 911 50 135 348 1,105 2,548 2,312 2027 236 0 236 911 50 135 348 1,105 2,548 2,312 2028 236 1,596 1,832 911 50 135 348 1,105 2,548 717 2029 236 0 236 911 50 135 348 1,105 2,548 2,312 2030 236 0 236 911 50 135 348 1,105 2,548 2,312 2031 236 0 236 911 50 135 348 1,105 2,548 2,312 2032 236 2,284 2,520 911 50 135 348 1,105 2,548 29 2033 236 0 236 911 50 135 348 1,105 2,548 2,312 2034 236 0 236 911 50 135 348 1,105 2,548 2,312 2035 236 0 236 911 50 135 348 1,105 2,548 2,312 2036 236 1,134 1,370 911 50 135 348 1,105 2,548 1,179 2037 236 0 236 911 50 135 348 1,105 2,548 2,312 2038 236 0 236 911 50 135 348 1,105 2,548 2,312 2039 236 0 236 911 50 135 348 1,105 2,548 2,312 2040 236 0 236 911 50 135 348 1,105 2,548 2,312 2041 236 0 236 911 50 135 348 1,105 2,548 2,312 2042 236 0 236 911 50 135 348 1,105 2,548 2,312 2043 236 1,596 1,832 911 50 135 348 1,105 2,548 717 2044 236 0 236 911 50 135 348 1,105 2,548 2,312 2045 236 0 236 911 50 135 348 1,105 2,548 2,312 2046 236 0 236 911 50 135 348 1,105 2,548 2,312 2047 236 2,284 2,520 911 50 135 348 1,105 2,548 29 2048 236 0 236 911 50 135 348 1,105 2,548 2,312 2049 236 0 236 911 50 135 348 1,105 2,548 2,312 2050 236 0 236 911 50 135 348 1,105 2,548 2,312 2051 236 1,134 1,370 911 50 135 348 1,105 2,548 1,179 2052 236 0 236 911 50 135 348 1,105 2,548 2,312 2053 236 0 236 911 50 135 348 1,105 2,548 2,312 2054 236 0 236 911 50 135 348 1,105 2,548 2,312 2055 236 0 236 911 50 135 348 1,105 2,548 2,312 2056 236 0 236 911 50 135 348 1,105 2,548 2,312 Total 19,059 9,264 10,027 38,349 36,148 1,951 5,281 13,672 43,418 100,470 62,120 Discount Rate at: 10% NPV 8,049 7,767 -282 EIRR 9.59% B/C 0.96

A12 - 42 Volume III Supporting Report

Appendix 12.11.3 Financial Evaluation of Master Plan (Case B-3d) (Million Leks) Cost Benefit in Year Constructio OM Replace- Cash Balance Total Total n Cost Cost ment Cost

2005 0 0 0 0 0 0 2006 0 0 0 0 0 0 2007 0 0 0 0 0 0 2008 0 0 0 0 0 0 2009 3,415 0 0 3,415 0 -3,415 2010 1,273 0 0 1,273 0 -1,273 2011 1,704 0 0 1,704 0 -1,704 2012 2,335 0 0 2,335 0 -2,335 2013 2,360 0 0 2,360 0 -2,360 2014 3,407 104 0 3,511 7,395 3,884 2015 2,957 108 0 3,065 735 -2,330 2016 3,819 112 0 3,931 761 -3,171 2017 2,844 116 0 2,960 788 -2,172 2018 1,316 270 0 1,586 11,406 9,820 2019 1,535 278 0 1,813 2,170 357 2020 1,321 284 0 1,605 2,263 658 2021 1,356 291 0 1,647 2,360 713 2022 367 0 367 4,905 4,538 2023 367 0 367 2,131 1,764 2024 367 0 367 2,131 1,764 2025 367 0 367 2,131 1,764 2026 367 0 367 2,131 1,764 2027 367 0 367 2,131 1,764 2028 367 2,482 2,849 2,131 -718 2029 367 0 367 2,131 1,764 2030 367 0 367 2,131 1,764 2031 367 0 367 2,131 1,764 2032 367 3,552 3,919 2,131 -1,788 2033 367 0 367 2,131 1,764 2034 367 0 367 2,131 1,764 2035 367 0 367 2,131 1,764 2036 367 1,763 2,130 2,131 1 2037 367 0 367 2,131 1,764 2038 367 0 367 2,131 1,764 2039 367 0 367 2,131 1,764 2040 367 0 367 2,131 1,764 2041 367 0 367 2,131 1,764 2042 367 0 367 2,131 1,764 2043 367 2,482 2,849 2,131 -718 2044 367 0 367 2,131 1,764 2045 367 0 367 2,131 1,764 2046 367 0 367 2,131 1,764 2047 367 3,552 3,919 2,131 -1,788 2048 367 0 367 2,131 1,764 2049 367 0 367 2,131 1,764 2050 367 0 367 2,131 1,764 2051 367 1,763 2,130 2,131 1 2052 367 0 367 2,131 1,764 2053 367 0 367 2,131 1,764 2054 367 0 367 2,131 1,764 2055 367 0 367 2,131 1,764 2056 367 0 367 2,131 1,764 Total 29,642 14,407 15,594 59,643 105,221 45,578 Discount Rate at: 10% NPV 13,290 12,626 -664 EIRR 9.06% B/C 0.95

A12 - 43 Volume III Supporting Report

Appendix 12.F5.1 Economic Evaluatioon of the Priority Project in the Feasibility Stady (Million Leks) Cost Benefit Saving of Saving of Re- Constr Willing Medical Income Cash Year OM place- uction Total - ness Expenditure Decrease Total Balance Cost ment Cost to Pay Out- In- Out- In- Cost patient patien patient patient 2005 0 0 0 0 0 0 0 0 0 0 0 2006 0 0 0 0 0 0 0 0 0 0 0 2007 0 0 0 0 0 0 0 0 0 0 0 2008 0 0 0 0 0 0 0 0 0 0 0 2009 410 0 0 410 0 0 0 0 0 0 -410 2010 1,304 0 0 1,304 0 0 0 0 0 0 -1,304 2011 1,650 0 0 1,650 0 0 0 0 0 0 -1,650 2012 1,699 0 0 1,699 0 0 0 0 0 0 -1,699 2013 1,427 0 0 1,427 0 0 0 0 0 0 -1,427 2014 0 76 0 76 440 12 30 227 720 1,428 1,352 2015 0 76 0 76 440 12 30 227 720 1,428 1,352 2016 0 76 0 76 440 12 30 227 720 1,428 1,352 2017 0 76 0 76 440 12 30 227 720 1,428 1,352 2018 0 76 0 76 440 12 30 227 720 1,428 1,352 2019 0 76 0 76 440 12 30 227 720 1,428 1,352 2020 0 76 0 76 440 12 30 227 720 1,428 1,352 2021 0 76 0 76 440 12 30 227 720 1,428 1,352 2022 76 0 76 440 12 30 227 720 1,428 1,352 2023 76 0 76 440 12 30 227 720 1,428 1,352 2024 76 0 76 440 12 30 227 720 1,428 1,352 2025 76 0 76 440 12 30 227 720 1,428 1,352 2026 76 0 76 440 12 30 227 720 1,428 1,352 2027 76 0 76 440 12 30 227 720 1,428 1,352 2028 76 1,545 1,620 440 12 30 227 720 1,428 -193 2029 76 0 76 440 12 30 227 720 1,428 1,352 2030 76 0 76 440 12 30 227 720 1,428 1,352 2031 76 0 76 440 12 30 227 720 1,428 1,352 2032 76 0 76 440 12 30 227 720 1,428 1,352 2033 76 0 76 440 12 30 227 720 1,428 1,352 2034 76 0 76 440 12 30 227 720 1,428 1,352 2035 76 0 76 440 12 30 227 720 1,428 1,352 2036 76 0 76 440 12 30 227 720 1,428 1,352 2037 76 0 76 440 12 30 227 720 1,428 1,352 2038 76 0 76 440 12 30 227 720 1,428 1,352 2039 76 0 76 440 12 30 227 720 1,428 1,352 2040 76 0 76 440 12 30 227 720 1,428 1,352 2041 76 0 76 440 12 30 227 720 1,428 1,352 2042 76 0 76 440 12 30 227 720 1,428 1,352 2043 76 1,545 1,620 440 12 30 227 720 1,428 -193 2044 76 0 76 440 12 30 227 720 1,428 1,352 2045 76 0 76 440 12 30 227 720 1,428 1,352 2046 76 0 76 440 12 30 227 720 1,428 1,352 2047 76 0 76 440 12 30 227 720 1,428 1,352 2048 76 0 76 440 12 30 227 720 1,428 1,352 Total 6,490 2,648 12,228 15,394 411 1,034 7,934 25,198 49,971 37,744 Discount Rate at: 10% NPV 3,739 5,840 2,101 EIRR 15.72% B/C 1.56

A12 - 44 Volume III Supporting Report

Appendix 12.F5.2 Financial Evaluatioon of the Priority Project in the Feasibility Stady

(Million Leks) Cost Benefit in Year Constructio OM Replaceme Cash Balance Total Total n Cost Cost nt Cost 2005 0 0 0 0 0 0 2006 0 0 0 0 0 0 2007 0 0 0 0 0 0 2008 0 0 0 0 0 0 2009 1,567 0 0 1,567 0 -1,567 2010 1,742 0 0 1,742 0 -1,742 2011 2,150 0 0 2,150 0 -2,150 2012 2,056 0 0 2,056 0 -2,056 2013 1,754 0 0 1,754 0 -1,754 2014 0 108 0 108 5,223 5,115 2015 0 108 0 108 679 571 2016 0 108 0 108 688 580 2017 0 108 0 108 691 583 2018 0 108 0 108 696 588 2019 0 108 0 108 692 584 2020 0 108 0 108 694 586 2021 0 108 0 108 696 588 2022 108 0 108 705 597 2023 108 0 108 705 597 2024 108 0 108 705 597 2025 108 0 108 705 597 2026 108 0 108 705 597 2027 108 0 108 705 597 2028 108 2,206 2,314 705 -1,609 2029 108 0 108 705 597 2030 108 0 108 705 597 2031 108 0 108 705 597 2032 108 0 108 705 597 2033 108 0 108 705 597 2034 108 0 108 705 597 2035 108 0 108 705 597 2036 108 0 108 705 597 2037 108 0 108 705 597 2038 108 0 108 705 597 2039 108 0 108 705 597 2040 108 0 108 705 597 2041 108 0 108 705 597 2042 108 0 108 705 597 2043 108 2,206 2,314 705 -1,609 2044 108 0 108 705 597 2045 108 0 108 705 597 2046 108 0 108 705 597 2047 108 0 108 705 597 2048 108 0 108 705 597 Total 9,269 3,781 17,462 29,084 11,622 Discount Rate at: 10% NPV 5,482 4,596 -886 FIRR 7.21% B/C 0.84

A12 - 45

Appendix 13 Environmental and Social Considerations

APPENDIX 13 Environmental Impact Assessment

The Environmental Impact Assessment (EIA) report is prepared by the environmental specialist according to the Albanian Laws. The JICA Study Team is assisted the environmental specialist to prepare the EIA report by conducting the Environmental and Social Considerations (Main Report, Part II, Chapter 5).

Obtaining the approval from MoEFWM is the responsibility of DPUK, MoPWTT and JICA Study Team also supports for the process to get the approval. In this appendix, the draft EIA report is attached.

A13 - 1 GENERAL DIRECTORATE OF WATER SUPPLY AND SEWERAGE (DPUK) MINISTRY OF PUBLIC WORK, TRANSPORT AND TELCOMMUNICATION (MoPWTT) THE REPUBLIC OF ALBANIA

THE STUDY ON THE DEVELOPMENT PLAN FOR SEWERAGE SYSTEM AND SEWAGE TREATMENT PLANT FOR GREATER TIRANA IN THE REPUBLIC OF ALBANIA

EIA REPORT

August 2006

A13 - 2

No. of reff. 01 Your No. ……..… 19.07.2006

Tirana on 19/07/2006

subject: Sending the Environmental Impact Assessment to: Mr. Fahri MAHO General Director General Directorate of Water Supply and Sewerage Ministry of Public Works, Transport and Telecommunications

The report of Environmental Impact Assessment (EIA) is prepared as component of the main study of the development plan for sewerage system and sewage treatment plant for greater Tirana. The report of Environmental Impact Assessment aim is to complete the main study and assess the environmental impact according to the JICA guideline on EIA and the law No. 8990, date 23.1.2003 "Environmental Impact Assessment". The draft report of EIA in Albanian language and compiled with the requirements of law No. 8990, date 23.1.2003 "Environmental Impact Assessment", it will be needed particularly for the next steps of the project. For this purpose, please find attached 5 copies in Albanian language of the draft EIA report. On this occasion, I would like to thank you for the collaboration, remaining in your disposal to assist in compiling the final report of EIA.

Bujar Dida, PhD., Dr.

Environmental Specialist

A13 - 3 THE STUDY ON THE DEVELOPMENT PLAN FOR SEWERAGE SYSTEM AND SEWAGE TREATMENT PLANT FOR GREATER TIRANA IN THE REPUBLIC OF ALBANIA

TABLE OF CONTENTS

TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES

Chapter 1 General...... 1 1.1 Objectives and Need for the Environmental and Social Considerations...... 1 1.2 Methodology ...... 1 Chapter 2 Policy, Legal and Administrative Framework ...... 2 2.1 Policy and Legal Framework ...... 2 2.2 Administrative Framework...... 5 2.3 Environmental Approval...... 6 2.4 EIA Procedures...... 7 2.5 International Conventions...... 10 2.6 Environmental Standards ...... 11 2.7 EU Directives...... 12 2.8 Land Acquisition...... 12 Chapter 3 Description of Proposed Priority Project ...... 14 3.1 Existing Sewerage System...... 14 3.2 Proposed Sewerage System ...... 16 3.3 Implementing Schedule and Project Cost ...... 17 Chapter 4 Baseline Environmental Data...... 18 4.1 Study Area...... 18 4.2 Physical Environment ...... 18 4.3 Biological Environment ...... 27 4.4 Socio-Cultural Environment ...... 29 Chapter 5 Impact Identification...... 32 5.1 General...... 32 5.2 Positive Impact...... 35 5.3 Impacts during Construction Phase...... 35 5.4 Impacts during Operation Phase ...... 41 Chapter 6 Analysis of Alternatives...... 43 6.1 With and Without Proposed Project...... 43 6.2 Alternatives...... 44 Chapter 7 Environmental Mitigation Plan...... 46 7.1 General Mitigation Measures...... 47 7.2 Mitigation Measures for Sewer Lines...... 48 7.3 Mitigation Measures for Sewage Treatment Plant...... 49

A13 - 4 Chapter 8 Risk Analysis and Contingency Plan ...... 57 8.1 General...... 57 8.2 Power Supply...... 57 8.3 E&M Equipment Disruptions ...... 57 Chapter 9 Environmental Management, Training and Monitoring Plan...... 62 9.1 General...... 62 9.2 Environmental Management...... 62 9.3 Monitoring Plan ...... 62 9.4 Environmental Training ...... 64 Chapter 10 Public Consultation...... 64 10.1 Objectives ...... 64 10.2 Process of Public Consultation ...... 65 10.3 Selection of Stakeholder ...... 66 10.4 Minutes of Meetings ...... 66 Chapter 11 Conclusions...... 66

LIST OF TABLES

Table 2.1 EIA Procedures...... 9 Table 2.2 Classification of Rivers Waters Quality according to UNECE ...... 11 Table 2.3 Effluent Standards of EU...... 11 Table 2.4 National Norms of Air Quality...... 12 Table 3.1 Existing Interceptor’s Outlines...... 16 Table 3.2 Summary of Proposed Sewerage System in Greater Tirana...... 16 Table 3.3 Implementation Plan ...... 18 Table 3.4 Total Project Cost ...... 18 Table 4.1 Data on Temperature in Tirana Municipality ...... 21 Table 4.2 Data on Rainfall in Tirana Municipality...... 21 Table 4.3 Monthly Mean and Maximum Wind Speed (1951-2000) ...... 22 Table 4.4 Prevailing Wind Directions ...... 22 Table 4.5 Annual Average Results of Air Pollution in the City of Tirana for 2004 ...... 25 Table 4.6 Value of PM10 of 2003, 2004 and 2005 in Tirana (µg /m3)...... 26 Table 4.7 Noise Level in Tirana District in 2005 ...... 26 Table 4.8 Existing Protected Areas in Albania...... 27 Table 4.9 List of the Amphibians and Reptiles in Tirana-Durres Area ...... 28 Table 4.10 List of the Mammals in Tirana-Durres Area ...... 29 Table 4.11 Population of Territories Concerned ...... 30 Table 4.12 Road Vehicles by Kind in Albania...... 30 Table 4.13 Economic Active Population and Unemployment Rate ...... 31 Table 5.1 International Standards for Noise of Construction Equipment ...... 37 Table 5.2 The Relation between Concentration of Odor Substances and Odor Intensity ...... 43 Table 7.1 Environmental Mitigation Plan ...... 51 Table 8.1 Risk Analysis and Contingency Plan...... 59 Table 9.1 Environmental Monitoring conducted by Various Institutions...... 63

LIST OF FIGURES

A13 - 5 Figure 1.1 Schematic Diagram for Approach and Methodology of EIA...... 2 Figure 3.1 Existing Sewer Service Area in Tirana and Kamza...... 15 Figure 3.2 Proposed Sewerage System in Greater Tirana...... 17 Figure 4.1 Geological Map in Greater Tirana...... 20 Figure 4.2 Hydrogeology Map ...... 24 Figure 5.1 Impact Identification Matrix ...... 34 Figure 5.2 Land Information of Kashar STP ...... 39 Figure 10.1 Flowchart of Public Consultation...... 65

Annex 1: Minutes of Stakeholder Meetings Annex 2: Certificate of Environment Expert

A13 - 6

This EIA report is prepared by Bujar Dida, Environment Expert, who is employed by DPUK in close collaboration with JICA Study Team. His certification is attached in this report.

A13 - 7 Chapter 1 General

1.1 Objective of EIA The major objective of this study is to establish present environmental and social conditions of the project area through available secondary data / information supported by field studies, wherever necessary, to predict the impacts on relevant environmental and social attributes due to the construction and operation of the proposed sewerage facilities, to suggest appropriate and adequate mitigation measures to minimise / reduce adverse impacts and to prepare an environmental impact assessment (EIA) report including environmental management plan (EMP) for timely implementation and scheduling of the mitigation measures. This study has been carried out on the proposed priority projects in Greater Tirana.

1.2 Methodology An environmental and social consideration study basically includes establishment of the present environmental scenario, study of the specific activities related to the project and evaluation of the probable environmental and social impacts, thus, leading to the recommendations of necessary environmental control measures.

The study, thus, necessarily includes collecting detailed data and information on the existing environmental set up for establishing “Baseline Environmental Scenario” and study of related data on the proposed activities. The environmental and social impacts associated with construction and operations of the project are predicted, and to mitigate the adverse environmental and social impacts, the necessary environmental control, protective and mitigation measures are finally recommended as “EMP”.

In brief, the scope of the environmental and social consideration study includes:

• To collect relevant primary and secondary data of the city and proposed facilities in reference to priority projects, • To identify the major environmental and social impacts such as land acquisition, waste, pollution and hydrological change in receiving bodies of treated water, ground water contamination from seepage of the STP, sludge production and disposal or reuse, noise and vibration, offensive odour, health hazard of plant operator, etc. of the proposed STP, pumping station and sewers, • To carry out the mitigation measures for the risk in construction and operation of the STP due to accident, power cut, etc. and to formulate the necessary mitigation and monitoring plan to reduce the impact of the proposed facilities. The methodology adopted is presented in Figure 1.1.

A13 - 8

Survey of Project

Identification of Environmental and social Issues

Primary Source Secondary Source

Supplemental Field Survey Source Identification

Monitoring and Data Collection Data Collection

Synthesis of Data

Establishment of Baseline Sceinario

Superimposition of Project Activities

Impact Assessment

Mitigation Measures

Environmental Management Plan (EMP)

Post Project Monitoring

Figure 1.1 Schematic Diagram for Approach and Methodology of EIA

Chapter 2 Policy, Legal and Administrative Framework

2.1 Policies and Legal Framework (1) Policies The National Environmental Action Plan (NEAP) prepared in 1993 on the bases of the National Environmental Strategy, aims at the integration of environmental protection measures in the development programs of the economic and social sectors. The NEAP constitutes a detailed analysis of this strategy and has defined tasks for Ministries and Institutions whose activity has an impact on the environment. NEAP identified six priorities:

• Monitoring industrial and urban pollution; • Establishing admissible pollution standards; • Halting illegal tree cutting and investing in soil erosion prevention; • Assessing the environmental protection needs of the Albanian coastline; • Regenerating severely polluted zones; and

A13 - 9 • Implementing European-level environmental mechanism. NEAP is updated in 2001 (UNEAP 2001) with the assistance of EU PHARE program and the World Bank. The priorities have been identified:

• Improving cooperation among ministries, departments and local authorities; • Developing suitable environmental policies; • Promoting the sustainable use of natural resources; • Improving the country’s environmental inspection structure; • Establishing an information system; • Improving environmental information available to NGOs and the public; • Developing an adequate strategy with business on the environmental issues; • Strengthening the environmental impact assessment system; • Completing the country’s environmental legal framework; and • Drafting local environmental action plans (LEAPs). Among the NEAP’s objectives is the creation of conditions for future membership of EU. The UNEAP will be implemented over a period of five years. In 2006, MoEFWM starts preparing National Environmental Strategy and in the draft stage.

The Government has also decided to prepare local environmental action plans (LEAPs) as a follow-up to the 1993 NEAP. The development of LEAPs is in conformity with the strategy of decentralizing power to local government. The LEAPs will provide for environmental assessment at the local level, the identification of priorities, the establishment of training programs and the development of partnerships with NGOs. They will also set up local inter-sectoral coordination structures. The process has begun with the LEAPs for Tirana, Fieri, Dibra, Pogradec, Lezha and Korca.

(2) Legal Framework The legal system is based on the following hierarchy: Constitution, primary legislation (laws) and supporting normative acts, such as by-laws, government decisions, decrees, ministerial orders, regulations, instructions and standards. The Constitution, approved in 1998, calls upon the Albanian authorities to preserve a healthy environment, ecologically suitable for present and future. To achieve this, the Government must further improve and complete the legal and institutional framework covering the environment, nature and biodiversity protection. Albania is in the process of establishing its legal framework for the environment. Although the first basic law on the environment was approved in 1967, the development of a modern environmental legal system based on democratic principles began only in 1991. The Government is paying special attention to begin harmonizing its laws with the environmental legislation of the EU.

The Law “On Environmental Protection” (No. 8934, 5 September 2002), approved in 1993, and amended

A13 - 10 in 1998 and then in 2002, is the basic law, which defines general principles and procedures of environmental management. The Law establishes national and local policies on environmental protection, requirements for the preparation of environmental impact assessments and strategic environmental assessment, requirements for permitting activities that affect the environment, prevention and reduction of environmental pollution, environmental norms and standards, environmental monitoring and control, duties of the state bodies in relation to environmental issues, role of the public and sanctions imposed for violation of the Law. The law provides for the:

• Rational use of the environment and reduction of discharges into and pollution of the environment, prevention of its damage, rehabilitation and restoration of the damages environment; • Improvement of environmental conditions, related to the quality of life and protection of public health; • Preservation and maintenance of natural resources, renewable and non-renewable, rational and efficient management by ensuring their regeneration; • Coordination of the state activities to meet the environmental protection requirements; • International cooperation in the field of environmental protection; • Promotion of public participation in environmental protection activities; • Coordination of the economic and social development of the country with the requirements of environmental protection and sustainable development. • Establishment and strengthening of the institutional system of environmental protection on national and local level. The other laws related to environmental management and protection are given below.

• The Law on Land (No. 7491 and No.7501, 19 July 1991) • The Law on Urban Planning (No. 7693, 20 April 1993, amended by Law No. 8405, 17 September 1998) • The Law on Forests and the Forest Service Police (No. 7623, 13 October 1992, amended in 1994) • The Law on Plant Protection Service (No. 7662, 19 January 1993) • The Law on Protection of Wild Fauna and Hunting (No. 7875, 23 November 1994) • The Law on Fishing and Aquatic Life (No. 7908, 5 April 1995, amended in 2002) • The Law on Pastures and Meadows (No. 7917, 13 April 1995) • The Law on Water Sources (No. 8093, 21 March 1996, amended in 1998) • The Law on Regulatory Framework of the Sector of Water Supply and Waste Water Management (No. 8012, 28 March 1996) • The Law on Public Disposal of Waste (No. 8094, 21 March 1996) • The Law on Protection of Air from Pollution (No. 8897, 16 May 2002) • The Law on Protection of Marine Environment from Pollution and Damage (No. 8905, 6 June 2002) • The Law on Protected Areas (No. 8906, 6 June 2002) • The Decision on Environmental Monitoring in the Republic of Albania (No. 103, 31 March 2002) • The Law on Environmental Impact Assessment (No. 8990, 23 January 2003) • The Law on Environmental Treatment of Solid Waste (No. 9010, 13 February 2003)

A13 - 11 • The Law on Environmental Treatment of Polluted Waters (No. 9115, 24 July 2003)

2.2 Administrative Framework (1) Ministry of Environment, Forests and Water Management (MoEFWM) Albania established its first Ministry of Environment in September 2001. The institutional history for environmental protection dates back to 1991, when the Committee for Environmental Protection and Preservation was established within the Ministry of Health. This was followed, in 1991, by the establishment of the Committee on Environmental Protection within the Ministry of Health and Environment. In 1998, the Albanian Parliament, through Law No. 8364, transformed the National Environmental Agency into an independent institution reporting directly to the Prime Minister. The creation of the Ministry in 2001 continued the trend toward giving greater importance and authority to the environmental protection authorities. In 2005, Ministry of Environment is changed into Ministry of Environment, Forests and Water Management.

According to the Law on Environmental Protection, 2002, the main responsibilities of the MoEFWM are:

• To cooperate and coordinate with central and local government institutions, the public and non-profit organizations to increase the level of enforcement of environmental legislations, • To prepare draft agreements, conventions, protocols, projects and programs that are carried out in the framework of bilateral and multilateral cooperation, including with international environmental organizations, and to follow their implementation when they are finalized, • To study the country’s needs for specialists and to coordinate the qualification and specialization activities of the personnel dealing with environmental protection, • To support projects on scientific research, improvement of the state of the environment, introduction of clean technologies and promotion of activities of non-profit organization, • To assist the local government bodies on environmental protection and in the preparation of local environmental action plans. In addition, the Minister has authority under the law to request the Prime Minister to suspend approval of sectoral strategies and plans that do not comply with the environmental statement and to consult the relevant ministries on the determination and rational use of environmental funds.

The Ministry has eight directorates: Forests and Pastures Policies Directorate; Nature Protection Policies Directorate; Pollution Prevention Policies Directorate; Fishing Policies Directorate; Control Coordination Directorate; EIA & Environmental Permit Directorate; Supporting Service Directorate; Internal Auditing Directorate.

(2) Regional Environmental Agency (REA) The MoEFWM has 12 Regional Environmental Agencies (REAs). REAs are specialized bodies in environmental protection, which operate at prefecture level. The REAs:

• Realize the enforcement of legislation for the protection of the environment on local level;

A13 - 12 • Assist the local government bodies in the field of environmental protection and management within their jurisdiction; cooperate with the local government for the development of local environmental action plans, programs and projects; • Promote the use of clean technologies and introduction of environmental management systems; • Are involved in the process of the approval of the environmental permit and declaration, by performing the duties defined by the MoEFWM in a special regulation. They provide the environmental consent and authorization for local activities; • Develop and submit for approval in Prefecture’s Council the biannual report on the state of the environment in the prefecture; this report is published after the approval; • Undertake awareness activities for the protection of the environment and cooperate with the community, the public and environmental NGOs and professional business organizations. (3) Local Government The local government authorities represent the most important governmental structure for the administration and the protection of the environment that they have under jurisdiction, by implementing the responsibilities, rights and duties given to them by the Law on the Organization and Functioning of Local Government, No. 8652, 31 July 2000. In the field of environmental protection, they have the following duties:

• Realize the implementation of the environmental legislation; • Draft local plans for the environmental protection and plans for the territory adjustment; • Publish the programs and measures for the protection of the environment; • Inform the public on the state of environment and local activities that are subject to the environmental impact assessment; • Promote and support the activities of the non-profit organizations for the environment, by drawing their opinion in the environmental decision-making process; • Define the sites for the collection and elaboration of the production and human life wastes, in accordance with the environmental criteria and development plans; • Organize the deposit of the wastes and hazardous substances as well as the protection of green areas in urban centers and around them; • Administer the urban wastes, the waste water treatment and solid wastes plants; • Discipline the transport and the constructions in the urban environment.

2.3 Environmental Approval The Albanian Law on Environmental Protection requires that any project or activity that will affect, or be likely to affect the environment, have to receive an Environmental Declaration, Environmental Permit, Consent or Authorization by the MoEFWM before implementation may commence. A decision by the Council of Ministers has defined the projects to which this process is applied. Without a positive Environmental Declaration the Council for Adjustment of Territories (KRT) for the locality will not grant a construction permit and construction may not legally commence and without an Environmental Permit an activity with an environmental impact may not commence and continue.

A13 - 13 The Environmental Declaration is the official document issued by the MoEFWM, after the review of the request and relevant documentation for the approval of the environmental elements of a project, plan or program that requires construction works, installations or schemes. In case the approved project does not start its implementation within two years from the issue data of the approval, the Environmental Declaration becomes invalid and the application procedure starts from the very beginning. If the project implementation is performed in compliance with the Environmental Declaration, the competent authority issues the relevant Environmental Permit, in compliance with the requirements of Law on Environmental Protection. An Environmental Permit is the official document issued by the MoEFWM, after the review and consultation of the request and its relevant documentation, with all the concerned stakeholders. It approves the exercise of any activity having an impact on the environment.

Each approval may include mandatory conditions and procedures to be implemented, so that pollution and damage to the environment do not exceed the allowed norms. The MoEFWM has authorized its local offices, REAs to issue the Environmental Permits for activities with a lower level of impact on the environment, entitled Environmental Authorization (greater impact) and Environmental Consent (lower impact).

All applications for environmental approvals are submitted to the REAs of the region in which the project will be implemented or the activity will be exercised. The REA has certain powers to approve the implementation and operation of small projects with no significant environmental impacts. In other cases it is responsible for reviewing documentation and forwarding the request to the MoEFWM for processing with recommendations for approval, rejection or enhancement.

For this study, the Environmental Declaration should be obtained at the Feasibility Study stage. To obtain the Environmental Declaration, the request and relevant documentation including EIA report should be submitted.

2.4 EIA Procedures Environmental Impact Assessment (EIA) was introduced in the 1993 framework Law on Environmental Protection. A Law on Environmental Impact Assessment (No. 8990) was approved on 23 January 2003 and it defines the rules, procedures and deadlines for identifying and assessing the direct or indirect impacts of project or activities on the environment. The Law established the steps necessary to implement EIA procedures; presentation of the application, preliminary review, selection and classification criteria, public hearing and consultation, access to information, duties and rights of other bodies. The MoEFWM is the legal competent authority for requesting, reviewing and approving EIA documentation. The Law also provides the list of activities that should be subject to the Profound (advance) process and Summary (outlined) process of impact assessment on environment.

A13 - 14 • A summary (outlined) EIA: this is for projects that may be expected to have less significant potential impacts that still require the assessment of their impacts by the expert. They include projects listed in Appendix 2 of the Law on EIA, and any changes or rehabilitations of projects listed in Appendix 1. • A profound (advanced) EIA: this includes the projects with significant potential impacts, as listed in Appendix 1 of the Law on EIA, those projects listed in Appendix 2 which the MoEFWM considers will have a significant impacts on the environment, and activities that are to be implemented in a protected area or in the marine environment of the Republic of Albania. Under the regulations, waste water treatment plant with a higher capacity than 150,000 equivalent inhabitants shall conduct “Profound (advanced) process of impact assessment” on environment.

Law (No. 8990) on Environmental Impact Assessment, Appendix 1 37. Plants of treatment of urban liquid discharges with a higher capacity than 150,000 equivalent inhabitants The profound EIA shall contain the following information:

• Objectives of the project; • Detailed objective description; • Data on present environment of the area and in its vicinity where the project is implemented; • Detailed description of all installations that are part of the project or will be used during its implementation; • Construction plan and the deadlines of its implementation; • Description of engineered values that are constructed or enlarged and of necessary works for project implementation; • Potential impacts on environment and proposed measures to prevent or bumper these impacts; • Monitoring program of project impact on environment; • Conformity of the project with territory adjustment plan and with economic development plan of area where project will be implemented; • Summary of consultations with local government organs, the public and environmental NGO/NPO and of their opinions; • Rehabilitative measures in case of pollution and damage of environment as well as their cost; • A copy of the license of natural or juridical person which has prepared the report of impact assessment on environment; • Procedures and reasons of selection of site where project will be implemented, description of at least two additional options of location of project; • Its direct and indirect level of impact on environment; • Potential impact of options (of project) on environment and health • Risks of accidents with significant impact on health and environment and measures to prevent these; • Trans-border impact on environment if any; • Technical measures plans to prevent and bumper negative impacts on environment; • Detailed descriptions about sustainable use of energy, of natural and mining resources; • Potential negotiations plan with local government organs, the public and environmental NGO/NPO

A13 - 15 during the phases of planning, review and implementation of the project. The project applicant is responsible for submitting the application including the EIA report for environmental approval to the MoEFWM. Any EIA report shall be prepared by an expert certified by the MoEFWM for preparing such reports and for environmental auditing. Currently the MoEFWM has licensed approximately 100 such experts.

The procedures of EIA are summarized below. REA in collaboration with the applicant with in five (5) days from the receipt of request shall classify the proposed project in accordance with the Law on Environmental Protection and decide whether it will undergo the profound process of impact assessment on environment. When from the classification results the project should undergo the profound process of EIA, the REA shall request in written to the applicant to submit the profound report of EIA. The REA notifies about this decision to the MoEFWM that issue licenses of construction and activity as well as local government of the area where the project will be implemented. The applicant may present a complaint to the MoEFWM within ten (10) days from the date of notification of the decision. The EIA report shall be compiled by licensed natural and juridical persons, selected, contracted and paid by the applicant. The compilers of the report shall be liable for accuracy of data and recommendations in accordance with laws in power. For any EIA required, the REA shall conduct the initial review of the EIA report and the data presented and shall consult with its experts and other appropriate bodies. It will then prepare, in writing, a recommended decision in favor of approval or refusal with justifications, also propose any environmental conditions, monitoring requirement, etc., to be included in the approval. The decision shall be forwarded to the MoEFWM within twenty (20) calendar days of the submission of the EIA report, accompanied by the EIA report. The MoEFWM shall review the REA’s decision, seek expert advice, etc., as required and either approve or reject the application, with the necessary justifications within 3 months from the data REA has forwarded the request to MoEFWM.

Table 2.1 EIA Procedures Procedure Description 1) Classification Judgment of the EIA level based on the Law and consultation with MoEFWA (Profound process or Summary process) 2) Preparation and Submission Reports shall be compiled by licensed natural and juridical persons. of the EIA Report Profound reports shall contain the items mentioned above. 3) Initial Review, Inspection and Opinion by the Regional REA shall conduct the initial review. Environmental Agency (REA) EIA level of the project shall be finalized. Approval / refusal and opinion by REA shall be forwarded to MoE. 4) Review by MoEFWM Review by the MoEFWM shall be conducted within 3 months. Following procedure is needed for profound EIA. 1)Establishment of the commission 2)Consultation with Interested Parties (Central organs. Urban and Tourism Development organs, Local government organs, Specialized

A13 - 16 institutions in the environmental field) 3)Public Debate organized and directed by local government organ (Central and local government organs, specialized institutions, interested people, environmental NPO and applicant) - 1 month notification of EIA report - 1 month deadline to organize debate and notification to the participants within 10 days in advance 5) Decision – making and - Within 5 days from the submission of the commission report MoE shall Notice / Appeal of Decision take the respective decision announcing the environmental declaration or permit - The decision shall be published and shall be delivered to the applicant, state and local organs - Against the decision the proposes may appeal within 30 days of its publication

2.5 International Conventions Albania has signed and ratified a number of international environmental conventions, protocols and agreements. The international agreements are reflected in national legislation through the adoption of laws, for example: the Law on adherence to the Basel Convention, the Law on the Vienna Convention and Montreal Protocol, the Law on the UN Convention to Combat Desertification and the Law on the Aarhus Convention.

• Convention on environmental impact assessment in the trans-border context (Espoo, Finland) ratified in 1991 • Convention on protection and use of water streams and international lakes (Helsinki 1992) ratified in 1994 • Convention on climate changes (UNFCCC) ratified in 1994 • Convention on biological diversity (Rio de Janeiro 1992) ratified in 1996 • Convention of wetlands of international importance, in particular as habitats of water poultries (The Ramsar Convention) ratified in 1996 • Convention of trans-border impact of industrial accidents ratified in 1997 • Convention on control of trans-border transportation of hazardous waste and their disposal (The Basel Convention) ratified in 1997 • Convention on preservation of wildlife and natural European habitats in 1998 • Convention on fight against desertification in those countries that suffer severely from dryness and desertification, in particular in Africa ratified in 1999 • Convention on access to information, public participation in environmental decision-making and access to justice in environmental matters (The Aarhus Convention) ratified in 2000 • Convention on protection of marine environment and coastal area of Mediterranean Sea (The Barcelona Convention) ratified in 2000 • Convention on protection of ozone layer • Convention of preservation of wild animals’ migrant species ratified in 2000 • Kyoto Protocol on UNFCCC ratified in 2004

A13 - 17 2.6 Environmental Standards (1) River Water Quality Standards In Albania, water quality standards for the rivers and sea have not yet been defined. According to the “Statistical Yearbook 1991-1999”, INSTAT, the quality of 80 % of river water falls within the criteria of the first category of UNECE classification.

Table 2.2 Classification of Rivers Waters Quality according to UNECE

Category Ptotal NO3 O2 NBO5 NKO NH4 Class I <10 <5 >7 <3 <3 <0.1 Class II 10-25 5-25 7-6 3-5 3-10 0.1-0.5 Class III 25-50 25-50 6-4 5-9 10-20 0.5-2 Class IV 50-125 50-80 4-3 9-15 20-30 2-8 Class V >125 >80 <3 >15 >30 >8

(2) Effluent Standards The draft of the effluent standard is ready and at the approval stage. However, the effluent standard is for industrial effluent and that of municipal wastewater is not included. Since the Albanian Government is considering joining the EU in future and will take the necessary measures to achieve the EU Directives, EU Directives should be set as a goal to be satisfied in the future. Applicable effluent standards based on EU directives are given in the table below.

Table 2.3 Effluent Standards of EU Concentration Minimum reduction Measurement method (mg/L) Percentage (%) BOD 25 70 – 90 Unfiltered Nitrification inhibited COD 125 75 Potassium dichromate TSS 35 90 under - 0.35 μm of membrane filter Drying at 105 ℃ - Centrifuge for at least five minutes with 2800 to 3200 G Drying at 105 ℃

(3) Air Quality The existing set of air quality standards was established in 1974 in a regulation approved by the Ministry of Health. Generally these standards were based on maximum allowable concentrations (MAC).

There have been no regulations on the emission standards for ozone and PM10. For the latter, WHO air quality standards have been used. In the 2002 Law on Environmental Protection, Article 50 states that the definition of norm values, as the admissible level for the use of the environment and its elements, is to be “based on EC Directives, objectives of the national environmental state policy and best available techniques”. In general, Albania has expressed its intention to align its environmental legislation,

A13 - 18 including that on air protection, with EU legislation. However, no time schedules have been set.

Table 2.4 National Norms of Air Quality

Measureing station LGS PM10 SO2 NO2 O3 Pb National Norms 140 60 60 60 120 1.0 EU Norms 80 50 50 40 120 0.5 Source: MoEFWM (4) Noise No standards for noise exists in Albania.

2.7 EU Directives EU Directives / Code / Standard shall be respected in the plan / design. Main EU directives related to the project are as follows:

• Directive 91/271/EEC on Urban Waste Water Treatment • Directive 98/15/EEC amending directive 91/271/EEC • Directive 2002/60/EU Water Framework Directive • Directive 96/61/EC Integrated Pollution Prevention and Control (IPPC) • Directive 97/11/EC Environmental Impact Assessment (Albanian EIA system has been harmonized already) • Directive 86/278/EEC protection of the environment, and in particular of the soil, when sewage sludge is used in agriculture • Directive 76/160/EEC Bathing Water Quality • Directive 98/83/EC Quality of Water intended for Human Consumption

2.8 Land Acquisition All procedures for expropriation are based on:

• Law No. 8561 dated 22.12.1999 “On Expropriation and Temporary Utilization of Private Property for the Public Interest” • Government Decree No. 126 dated 23.3.2000 “Composition and Procedures of the Special Committees for Expropriation” • Government Decree No. 127 dated 23.3.2000 “On the Content and Procedures for the Submission of the Requests and Notifications for Expropriation and Temporary Utilization of private Property for the Public Interest” • Government Decree No. 138 dated 23.3.2000 “On Technical Criteria for Evaluation and Calculation of Compensation for Expropriated Private Property, Devalued Properties and Third Party Rights” • Government Decree No. 147 dated 31.3.2000 H.E.Dr. Bajram Raxhepi “On Functioning Rules and modalities for Special Committees for Expropriation” (1) Land Expropriation Procedures When the realization or protection of public interest cannot be achieved without exercising the rights of ownership over movable or immovable properties that are privately owned, the Council of Ministers, on the application of the requesting subject in favor of whom the expropriation is to be done, on the proposal

A13 - 19 of the minister who is competent under this law, decides on the expropriation of these properties.

When the expropriation is done on the application of a private juridical subject, the competent minister, in the capacity of legal representative of state property, is authorized by this law, on the preliminary application of this subject, to make the transfer of ownership of the properties expropriated by the state in favor of the private subject who has applied for expropriation, on the condition that the realization of the building or investment for a public interest for which expropriation was performed has been verified according to law.

When the private applicant does not seek the transfer of property in his favor, the property remains in favor of the State.

Based on the Law and Government Decrees listed above, the interested person (juridical person) submits the request to the line ministry (or ministry responsible for the sector), with, as attachments, documents which are listed in Article 10 of the above law.

• A Special Committee for expropriation is established in the responsible line ministry. • When the ministry, through the Special Committee, is convinced that the documents are prepared based on the law and government decrees, it decides to accept the request for the expropriation and notifies the person that has made the request. • Within 10 days from such a notification it is foreseen to enter into agreement between the Ministry and the person which has made the request. • Within 10 days from the date of the signing of the agreement, the Ministry starts the procedures with respect to the owners of the properties affected. In the meantime a public notification is published in official newspapers and reputable notional and local newspapers. These notifications are published during one week. • One month after the latest date of publication, the ministry submits the proposal for the expropriation to the Government, to take the final decision. The subject in favor of whom the expropriation is done submits the application for expropriation to the ministry that is competent pursuant to law. The application shall be accompanied by the following documentation:

• Official documents that attest its status and registration as a juridical person. • Necessary designs, approved according to law, as well as the respective legal arguments about the public interest connected with the realization of these projects. • Documentation related to the source and guarantee of the financial funds necessary for the realization of the project, including those for expropriation or because of devaluation. • A preliminary valuation of the objects of expropriation and the amount of compensation that is contemplated for each private owner. • Appropriate licenses and approvals from the competent organs according to the law, in accordance with the nature and type of the project that is sought to be realized. • Official documents that attest to the manner of realizing the project by the applicant for

A13 - 20 expropriation itself or with third parties, as well as the respective time periods. • A list of the owners of the private properties, for which expropriation is sought; a list of the owners of private properties that are devalued because of the expropriation; and a list of the third persons who should be compensated for their rights to the private properties that are sought to be expropriated, together with explanations and data necessary for each of them, with the respective estimates of the value of these properties and rights, as well as the addresses and last known residences of the respective owners and third persons. Detailed regulations related to the content and standards that are to be respected in the compilation and presentation of the documentation that accompanies an application for expropriation for the public interest are set by decree of the Council of Ministers.

(2) Procedures for Public Notification The procedures for the notification of the affected people are as follows:

Ten days from the signing date of the agreement between the Ministry and the person which has done the request, the Ministry starts the procedures concerning the owners of the properties affected. In the meantime a public notice will be published in official newspapers and reputable national and local newspapers. These notifications will be published during one week.

(3) Procedures for establishment of Land Value The evaluation of the land value is established as an average of the selling price of the region which is registered in the Immobile Properties Office Registration. The period of this evaluation must not exceed three months from the date of the official request. If there has been no selling contract the Special Committee fixes a price based on the rules described in Government Decree No. 138. The owners have the right to go to the court to contest the amount of compensation. This does not result in suspending the expropriation procedures.

Chapter 3 Description of Proposed Priority Project

3.1 Existing Sewerage System in Greater Tirana (1) Present Sewer Service Area The present existing sewer area is in approximately 90 % of Tirana City and some area in Kamza city.

A13 - 21

Figure 3.1 Existing Sewer Service Area in Tirana and Kamza

(2) Sewer / Drainage Networks and Discharge Point There are many discharging points along Lana River and 5 discharging points along Tirana River in Tirana Municipality. There are three discharging points along Tirana River in Kamza Municipality.

(3) Physical Condition of Sewer / Drainage System Existing drainage / sewerage facilities were constructed in 1962. It seems that almost all of existing facilities are not keep in good conditions. Italian Cooperation conducted an investigation in “Mihal Duri” Tirana area. The following problems are reported:

• As result of residual inert material coming from building works and various sediments, the main and primary sewers are obstructed, • Stoppage (blocking) of the manholes with residuals that cause an outflow of the sewage; also owing to the continuous theft of the streets drain covers, • Under-sizing of the interceptors, as a consequence of the expansion of inhabited areas – with related not planned linkage – and due to the increase of population, that causes overpressures in various parts of the network with related floods, • Construction of the buildings (especially added laterally to pre-existing buildings) over the existing sewer network, thus leaving it blocked or in the part surrounded by the building, • Several manholes, during the works to asphalt the roads, have been covered with asphalt, thus making the maintenance of the network more difficult or sometimes impossible, • Discharge points in the Lana and Tirana Rivers have been obstructed by buildings residuals or solid waste and are the cause of criticality for all the up-hill network, • The material used to produce the interceptors and the sewer network is concrete or reinforced concrete, that often results not suitable for the features of the specific site, • The bulk of interceptors have been constructed in the 60s and have finished their natural lifetime, with related problems of obsolescence, breaches, infiltrations, losses in correspondence of the pipe connections, etc.

A13 - 22 • The largest part of the storm water overflow chambers present at now is partially or totally useless due to the building of new unauthorized structures. (4) Hydraulic Capacity of Sewer / Drainage System 1) Tirana Municipality The interceptors are outlined in Table 3.1. These interceptor capacities are not enough to carry rainwater with sewage but are much larger than sewage flow capacity. At present collected sewage and rainwater are discharged into river directly. If the STP accepts all flow carried by the present sewer pipes, a huge facilities will be required in a limited area.

Table 3.1 Existing Interceptor’s Outlines Name Diameter Covering Area Lana north interceptor ○0.8 - □2.5 x 2.5 Noth of Lana river Lana south interceptor ○0.8 - □2.5 x 2.5 South of Lana river Tirana interceptor ○0.6 - □1.4 x 1.4 Southern part of Tirana river Dibres interceptor ○0.6 - ○1.0 Central part of Tirana City

2) Kashar Commune There are some pipes and watercourses for sewage with rainwater in residential areas. Along Rruga e Durresit, there are many factories and drainage systems which used for agriculture. According to the latest development plan, almost drainages are covered as utilizing conduits and surfaces of them are converted into roads. Sewage will be flowing in these drainages and be discharged into the Lana River directly. This drainage system does not have enough capacity to carry design rainwater volume, but has too much capacity for sewage system.

3.2 Proposed Sewerage System in Greater Tirana The table below summarize the proposed sewerage system in Greater Tirana. The detail description is Chapter 3 of Part II.

Table 3.2 Summary of Proposed Sewerage System in Greater Tirana Item Description of Proosed Sewerage System 1. Location The proposed STP site with about 47 ha is located at Mezezi Stalla in Kashar Commune, the south-west of the Tirana city (Figure 3.3) 2. Capacity etc. Service population in the year 2014 : 342,500 Service area : 2,343 ha Capacity (max. daily) : 95,900 m3/d Design average daily flow : 77,100 m3/d Design maximum daily flow : 95,900 m3/d 3. Sewage Design influent quality Design effluent quality Standard of EU characteristics BOD: 200 mg/l 24 mg/l 25 mg/l SS : 200 mg/l 30 mg/l 35 mg/l 4. Sewers Trunk sewer : Dia.: 900~1,500 mm, Length: 4.2 km Main sewer : Dia.: 200~600 mm, Length: 1.4 km Branch sewer : Dia.: 200 mm, Length: 27.6 km

A13 - 23 5. Treatment Method Treatment Method : Trickling filter Treatment process flow diagram :

Sewage Flow

Influent Coarse / Fine Influent Grit / Sand Screening Pump Removal

Secondary Trickling Primary Sedimentation Filter Sedimentation

Effluent To the stream Chlorination of Lana River

Sludge Flow

Raw sludge Anaerobic De-watering Thickener Digesters (sludge drying bed)

6. Sludge Production Wet / Dewatered sludge production : 22.6 ton/d, 8.2 ton/d and Disposal Disposal method : landfill at the disposal site which WB proposed 7. Receiving water body Stream near-by, meeting the Lana River at Kashar

The figure below shows the area of proposed sewerage project and the layout of the sewers and STP.

Figure 3.2 Proposed Sewerage System in Greater Tirana

A13 - 24 3.3 Implementing Schedule and Project Cost Table 3.3 Implementation Plan 2009 2010 2011 2012 2013 Detailed Design and Tendering Pre Qualifications and Contract Land Acquisition and Compensation Sewers Construction Sewage Treatment Plant Construction Construction Supervision

Table 3.4 Total Project Cost Component Total (million Lek) Direct Construction Cost Trunk Sewer 2,038 Main and Branch Sewers 288 Sewage Treatment Plant 4,054 Total of Direct Construction Cost 6,380 Indirect Construction Cost Land Acquisition and Compensation 1,146 Administrative Expenses 319 Engineering Services 638 Physical Contingency 638 Capacity Building 147 Total of Indirect Cost 2,888 Total Project Cost 9,268

Chapter 4 Baseline Environmental Data

4.1 Study Area The study area for priority project is south part of Tirana Municipality and Kashar Commune (see Figure 3.2).

4.2 Physical Environment Albania is situated on the western edge of the Balkan Peninsula, with 28,748 km2, Albania is one of the smallest countries in Europe. It is situated in a geographical position between latitude 39 degree’s 38’ – 42 degree’s 39’ North and longitude 19 degree’s16’ – 21 degree’s 4’ East. Its total border length is 1094 km., out of which 476 km are coastal line on the Adriatic and Ionian Seas to the west.

Tirana Municipality is the center of the country. It lies in 40 degree’s 21’20” North Latitude and 20 degree’s 14’30” East Longitude.

(1) Topography Albania is mostly a mountainous country as mountains and hills over 300 m cover approximately 77 % of

A13 - 25 the total land area (28,748 km2). The medium altitude of the country is about 710 m which is about two times higher than that of Europe. Albania is topographically characterized into four natural regions: the Albanian Alps, the central mountain regions, the southern mountain region and the western plain. The low lying western plain leads to medium mountainous levels in the northeast. The southern coast (Vlora-Saranda) is also characterized by its steep slopes. The highest mountain seen in the northeast of the country is Mt. Korabi with the altitude of 2,751 m on the border with the former Yugoslav Republic of Macedonia.

The Tirana City is located half over the western plain next to the Adriatic Sea and the other half over the mountain and hilly area. The altitude of the study area ranges from 80 m to 130 m and the center of Tirana is situated at about 110m. the ground surface gradient is ranging from 1 to 5 % declining to western direction. In the east of Tirana, hilly area is extended to Mt. Dajiti (1,612 m).

(2) Geology In Albania, two distinct formation types are seen; the western domain consists of Monotonous Permian to Mesozoic Sediments, while the eastern domain is characterized by Paleozoic to Mesozoic basis, acidic volcanic rocks and ultramafic massifs. The country has various mineral resources, namely chromium, copper, nickel and bauxite. Other minerals are kaolin, phosphotized limestone, rock salt, gypsum and stones (limestone dolomite and marble). Among others, concentration of Albanian chromium deposits is ranked at the first in the world by a substantial margin in terms of density as being ten times higher than South Africa and more than twenty times larger than Zimbabwen. Copper reserves in various sources are assumed to be some 50 million tons. Nickel and bauxite are also famous mineral resources of the country.

The Tirana syncline presents a depressed area, as a lateral basin, filled with molasse deposits of serravallian – tortonian. Tirana depression is over put completely on the Kruja tectonic area. Its western border partly coincides with the over put front of the Kruja tectonic area. So is understandable that Tirana synclinal presents a depressive unit superposed over the more western part of the Kruja tectonic area. This depressed unit is created during the wrinkling period pre- Serravallian and Tortonian, where this location is included and later sedimentation phenomena happened in its basement. Tirana synclinal was formed in such conditions, presenting a molasse synclinal over put on Kruja tectonic structure area. It represents a structural unit formed in geological newest period, during Serravallian – Pliocene, which confirm the new tectonic removal, where the area is included. This synclinal is characterized by a quiet east flank, with a smooth western downfall and by a hard western flank up to overturn, which is confirmed also by the seismic crosscuts. This tectonics is reflected also in the late tectonic and neo-tectonic map of the area. This situation, as above mentioned, is seen also in many seismic crosscuts, where looks clear that these tectonics, which influenced the forming of this flank in the

A13 - 26 head, are reflected up to the upper levels of the land surface, showing their fledgling. In such conditions the western flank of Tirana depression presents a range tending to new removes.

Figure 4.1 Geological Map in Greater Tirana

The center of the Tirana city falls in Kuaternar (alQh1, alQh2 and cdpQh), and the hilly part falls in 3t 3t Tortonian (N1 (b) and N1 (c)).

3t • N1 (b) – clay, alevrolit, sandy lens. You can meet interpolated stratums of coal and coal lens (Skuterra formation). Around 300 m thick. 3t • N1 (c) – Iba formation, 200 – 300 m thick

• alQh2 – later Holocene – allusions, gravel, sand. Thickness 5 m. • cdpQh – Holocene – collusions, delluvions, proluvions, allevrites, sandy by pieces. Thickness up to 5 m. (3) Climate and Meteorology The Albanian climate is characterized by hot and dry summers, whereas the winter months tend to be mild and wet. Owing the prominent diversity of inland topography, the climate is divided into three main climatic zones. The Tirana area extends to the western part of Mt. Dajti nearly in the middle of Albania. This area consists of small rolling hills and also extends inside the border of the Fieldly Mediterranean Climate Sub-zone and Hilly Mediterranean Climate Sub-zone. A humid and mild winter as well as a dry and hot summer is the typical characteristics of this area.

A13 - 27 1) Temperature The mean annual atmospheric temperature is 16.8 ℃ in 2004. The coldest month in winter is January with a mean atmospheric temperature of 7.0 ℃, while the hottest month is July with a mean atmospheric temperature of 26.3 ℃ as of the year 2004. The table below shows the annual average temperature in Tirana Municipality from 1992 to 2004, the monthly average temperature of year 2004, and monthly maximum, minimum and average temperature of year 2004.

Table 4.1 Data on Temperature in Tirana Municipality Yearly average 1992 1998 2000 2002 2003 2004 temperatures Tirana 15.3 15.3 16.4 16.7 17.3 16.8 Monthly Average Temperature of Year 2004 in Tirana Municipality

Monthly Average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Temperature Tirana 7.0 8.9 11.2 15.6 18.0 23.4 26.3 25.3 24.2 18.9 12.2 10.3 Source: Agriculture, Livestock, Agro-industry, Fishery, Forestry, Ministry of Agriculture and Food, 2004 Unit: ℃ Year 2003 Maximum average Minimum average Average temperature temperature temperature January 14 6.4 10.2 February 10 0.5 5.2 March 16 4.3 10.2 April 19 8.6 13.8 May 27.8 16.1 21.9 June 32.5 20.9 26.7 July 33 21.7 27.4 August 34.5 21.6 28.1 September 26.8 16.5 21.7 October 21.5 13.6 17.5 November 19.2 11.1 15.1 December 13.9 5.4 9.6 Source: Bulletin 2003, Tirana Municipality

2) Rainfall The mean annual rainfall is 1,310 mm as of the year 2004. Monthly rainfall in the year is not uniform. During the cold weather, approximately 60 % of the annual rainfall is observed. The highest monthly rainfall occurs in November with a value of 216.5 mm, while the lowest monthly rainfall of 14.7 mm occurs during August in 2004.

Table 4.2 Data on Rainfall in Tirana Municipality 1992 1998 2000 2002 2003 2004 Annual Rainfall (mm) 787 1,173 1,014 1,188 718 1,310

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2004 166.5 92.2 140.4 137.3 105.9 78.7 80.5 14.7 115.3 82.3 216.5 79.0 Source: Agriculture, Livestock, Agro-industry, Fishery, Forestry, Ministry of Agriculture and Food, 2004 Unit: mm

A13 - 28 (4) Wind Pattern in the Region The wind regime is analyzed by using the data of main station of Tirana, which is located very close to the Kashar area. The long term series of wind speed and direction (period 1951-2000) are taken into consideration. This zone is distinguished by relatively low value of wind speed. The average annual wind speed reaches the value of 1.5 m/s, with almost uniform distribution during the year. The calmness accounts for 56 %. The dominant directions of wind are northwest and southeast with the frequencies 14.6 and 12.0 % respectively. The monthly mean and maximum wind speed for the study area are presented in the table below.

Table 4.3 Monthly Mean and Maximum Wind Speed (1951-2000) Month Wind Speed (m/s) Average Maximum January 1.4 30 February 1.8 21 March 1.6 22 April 1.6 22 May 1.6 21 Jue 1.5 15 July 1.5 15 August 1.4 21 September 1.4 20 October 1.2 30 November 1.3 20 December 1.3 27 Source: Institute of Hydrometeorology Referring to the values shown in this table is obvious that the mean spped over the area varies from 1.2 m/s in October up to 1.8 m/s in February. The observed maximum speeds for every month represent not less variability during the year. They vary from 15 m/s in the June / July up to 30 m/s in January. The absolute maximum speed recorded is 30 m/s since the beginning of observations in Tirana area.

The table below displays the prevailing wind directions as well as their frequencies. The dominant wind directions change throughout the year. Northwest is the dominant direction during summer, because of the more pronounced influence of see breezes, southwest occurs as dominant direction during winter.

Table 4.4 Prevailing Wind Directions Month Prevailing wind directions Direction Frequency (%) Direction Frequency (%) January SE 17.3 NW 4.7 February SE 19.3 NW 10.4 March SE 14.0 NW 13.3 April NW 15.7 SE 11.4 May NW 17.2 SE 8.6 Jue NW 20.0 SE 7.2

A13 - 29 July NW 20.8 SE 6.2 August NW 20.6 SE 6.9 September NW 18.7 SE 7.3 October NW 13.8 SE 12.1 November SE 17.4 NW 8.2 December SE 17.0 NW 7.0 Source: Institute of Hydrometeorology It is obvious that March and October are the months where two predominant directions (NW and SE) are changes the prevalence.

(5) Surface Water The study area is located in the upstream area of the Ishmi Basin, which shares around 50 % of Erzeni-Ishmi Basin area (1,439 km2) and relatively flat basin surrounded on three sides by mountains with the average altitude of about 120m.

The major river in the study area is the Lana River. The Lana River runs through the southern part of Tirana City from east to west and joins the mid-part of the Tirana River, which join the Ishmi River and then the Ishmi River flows into the Adriatic Sea. The Lana River is severely polluted by direct discharge of untreated sewage and uncontrolled garbage dumping.

The Lana River has a length of 29 km with some 3.5 km of concrete embankment in the central part of Tirana City. Upstream area of the Lana River is thinly populated area and the major activities in this are in olive oil cultivation. In the mid-part of the river, central part of urban area, where is covered by concrete embankment, is densely populated and significant volume of sewage discharges into the river directly from household or small to mid-scale commercial area. Several industries such as beverage or food processing industries exists in the lower part of the river, after the crossroad of “Rruga Konferenca e Pezes” and “Bulevardi Bajrm Curri”, where concrete embankment finishes up to the conjunction of the Tirana River.

Referring to the BOD data for last two years in the Lana River, BOD value in unpopulated upstream area shows relatively low organic pollution level. However, BOD after the central part of urban area shows some 50 to 60 mg/l and its maximum value exceeds more than 100 mg/l.

(6) Groundwater The combination of the sand and conglomeratic packages with the argillaceous ones gives the possibility to the agglomeration of the considerable amount of the groundwater.

The best argument for this are many wells drilled recently by the farmers themselves and deeper wells drilled by hydrogeologic service before 1990, which have supplied drinking water to these urban areas through the water supply system built in different times during these years. But unfortunately today

A13 - 30 these water supply systems are not functioning, so the farmers are forced to bore shallow wells (up to 10 m deep) to obtain the water for their needs.

There are two groups of groundwater complexes: (i) the compact rocks groundwater, and (ii) loamy rocks groundwater. Based on the geologic formation and their facial nature, there are two types of water aquifers in the study area:

• Tortonian aquifer complex • Quaternary aquifer complex

STP Site

Figure 4.2 Hydrogeology Map

1) Tortonian aquifer complex 3t 3t This water-carrier complex, coincides with the presence of two packages (N1 and N1 b) and Tortonian stratums. The packages are in the center of the area, spread over Tirana-Ishmi, mainly north-south direction and fall to the west with an angle of 40-450.

A13 - 31 Generally these deposits are represented by argil combined with sandy and alevrolitors. The hydraulic characteristics of this aquifer are:

− The water conductivity in m3/(T), varies from 3.2 - 5.3 − The water conductivity in m/day (T), varies in 0.1- 0.08 − Specific well flow L/sec/ml, varies in 0.025 - 0.04 Maximum water intensity flow from 150-400 m depth is from 0.5 – 2 L/sec. Normally up to

250-400 m deep, the groundwaters belong to the type HCO3-Na with a mineral that fluctuates from 300 up to 500 mg/l, German hardness under 120. In considerable depth the groundwater are salted

(the mineral goes 2-5 gr/filter) and become hydrochemistry type CL-HCO3-Na or CL-Na.

2) Quaternary aquifer or groundwater complex of the loamy rocks Even the quaternary deposits present a small surface in this area and the fact that these deposits are founded in low proportion of the area, should be taken into consideration. The most important in the area are the deposits brought by the Erzen River in the southern-west-southern parts and final part of the region. The water-carrier stratums of the gravels and alluvial sand lie in the lowest and direct terraces of the Erzen River and follow the east to west river flowing. These are shown from Mushqeta and Iba in the east up to the Hardhishta in the west.

(7) Ambient Air Quality Air quality data are reported to the MoEFWM by the monitoring institutions, namely the Institute of Public Health and the Institute of Hydrometeorology. However, data are not published, analyzed or reported on a regular basis. So far, Albania has not compiled a comprehensive emission inventory. Only emission data for some industrial sectors have been published.

Air monitoring samples for PM10 (particulate matter including organic and inorganic substances less than

10 µm in diameter), black smoke, SO2, NO2, O3, and Pb are taken five days per month in Tirana (5 stations), Korçe (2 stations), Durrës (1 station), Elbasan (1 station), Shkodër (1 station), Fier (1 station) and Vlorë (1 station) by the Institute of Public Health. There are no measurements of greenhouse gases such as CH4 (methane) or CO (carbon monoxide). As a result of a rapid growth in traffic, the steady increase in the number of vehicles moving in Tirana, the air pollution is becoming more and more of a problem. Air pollution resulting from the circulation of vehicles measures the level of the main air pollutants such as SO2, NO2, lead, ozone and dust at five measuring stations / areas of the city of Tirana. According to the systematic measurements carried out by the Institute of Public Health in the framework of an air-monitoring program in several main cities of the country, some of the results for 2004 are as follow:

Table 4.5 Annual Average Results of Air Pollution in the City of Tirana for 2004 Measureed pollutant (concentration in µg /m3)

Measureing station LGS PM10 SO2 NO2 O3 Pb Tirana 1 (center) 280 126 16 40 97 0.2 Tirana 2 (Nju Bazar) 233 108 13 31 100 0.16 Tirana 3 (PHI) 151 67 14 23 102 0.13

A13 - 32 Tirana 4 (21 Dhjetori) 965 432 26 57 93 0.3 Tirana 5 (Liceu Artisitk) 219 99 13 21 103 0.2 National Norms 140 60 60 60 120 1.0 EU Norms 80 50 50 40 120 0.5 Source: Komente per studimin e cilesise se ajrit ne Shqiperi, viti 2004, MoEFWM

Form the above table it is evident that LGS exceeds both the national and the EU norm with regard to this pollutant everywhere. The most extreme case is found at Tirana 4 measuring station (21 Dhjetori) where the values of PM10 amount to 7 times above the national norm and 8 times above the EU norm. PM10 is the most problematic pollutant from the viewpoint of health in all of the monitored points. This pollution indicator show that the national norm and the EU norm have been exceeded everywhere by 1.5 to 8 times. The following table shows the average PM10 values in five different points of Tirana city for 2003, 2004 and 2005.

Table 4.6 Value of PM10 of 2003, 2004 and 2005 in Tirana (µg /m3) 2003 2004 2005 Tirana 1 (center) 119 126 129 Tirana 2 (Nju Bazar) 105 108 110 Tirana 3 (PHI) 70 67 73 Tirana 4 (21 Dhjetori) 483 432 445 Tirana 5 (Liceu Artisitk) 98 99 105 Source: Përmbledhja e monitorimeve për cilësinë e ajrit dhe ujrave si dhe niveli i zhurmave, Monitorim vitin 2005, MoEFWM

SO2 and NO2 continue to be below the permitted limits, as the burning of fossil fuels by industry has been considerably reduced in the last decades.

(8) Ambient Noise Noise is measured at 15 points in Tirana District. The monitoring data shows that the noise level during the day and night is quite high. The monitoring data of the urban noises in 2005 are as follows:

Table 4.7 Noise Level in Tirana District in 2005 Monitoring point Average value (day-time) Average value (night) 1. Skënderbeu 69.8 dB(A) 61.9 dB(A) 2. Partizani Panjohur 73.1 58.9 3. Stacioni Trenit 73.3 58.4 4. Laprakë 73.8 60.2 5. 21 Dhjetori 71.9 64.6 6. Kryq. Vasil Shanto 72.3 63.2 7. Ish Blloku 71.4 61.2 8. Pall kongreseve 66.3 51.1 9. Road Elbasanit 71.6 60.7 10. Kryq. Farmaci 10 72.3 63.2 11. Kryq. Drejt Policisë 66.3 49.6 12. Përball stad.Dinamo 68.4 57.2

A13 - 33 13. Përball Shkoll.Bashkuar 70.1 64.4 14. Shkolla 11 Janari 69.7 61.6 15. Kryq. Selvia 72.2 61.6 Source: Përmbledhja e monitorimeve për cilësinë e ajrit dhe ujrave si dhe niveli i zhurmave, Monitorim vitin 2005 MoEFWM 4.3 Biological Environment The climatic features, geographic position, its relief and geological, hydrological and pedological factors favor a very high diversity of natural habitats and sub-ecosystems in Albania. They offer conditions for the existence of about 3,200 kinds of higher plants (30 % of the European Flora) and 756 kinds of vertebrates, in which many relicts endemic and sub-endemic species can be distinguished.

Albania’s biological environment is suffering from the adverse impacts of unsustainable agricultural and forestry practices, as well as from industrial pollution and uncontrolled building. Since the 1950s, the forest area has decreased from 45 % to 36 %of the territory, with consequent soil erosion.

During the last 5 years, considerable damage has been happened on spontaneous flora, forests of laurel, birch and oak in particular. This situation in general is a consequence of the uncontrolled development of human activities and especially of illegal constructions.

(1) Environmentally Protected Area The general surface of the protected areas is 183,749 ha, which is over 6 % of territory of Albania.

Table 4.8 Existing Protected Areas in Albania No. Categories Number Surface (ha) 1 Strictly protected area 4 14,500 2 National parks 13 53,940 3 Monuments of nature (special forest 115 4,600 wood, woodland areas) 4 Managed areas 26 42,898 5 Protected landscape / seascape 4 49,611 6 Protected resource areas 4 18,200 Total 183,749 According to the MoEFWM, there is no protected area in / around the study area. There are 14 monuments and natural sites of historical significance in District of Tirana, and none of them exists in the study area.

(2) Fauna and Flora As far as the information from MoEFWM is concerned, there is no endangered fauna or flora existing in the study area.

The Tirana City has a rich Flora. More than 1,600 different plant species grown in the Tirana Region. A forested area of some 4,200 ha surrounds the city. The main species are beech, oak, alpine meadows

A13 - 34 etc. In the area of Tirana-Durres, there are 10 different species of amphibians, which means 60 % of the total species found in Albania. About the reptiles there are observed 25 species, which means 70 % of the total registered in all Albania. Note that the amphibians and reptiles in the list below included the area of Tirana-Durres hilly area, not only within the study area.

Table 4.9 List of the Amphibians and Reptiles in Tirana-Durres Area Nr. The species Albanian Amphibians 1 Salamandra salamandra E bukura e dheut 2 Triturus cristatus Hardhuce uji 3 Triturus vulgaris Hardhuce uji 4 Bombina variegate Bretkosa 5 Bufo buffo Thithlopa 6 Bufo viridis Thithlopa e gjelper 7 Hyla arborea Verorja 8 Rana balcanica Bretkosa 9 Rana dalmatina Bretkosa e kuq 10 Rana lessonae Bretkosa Reptiles 1 Emys orbicularis Breshkujze 2 Mauremys caspica Breshkujze 3 Testudo hermanni Breshka 4 Anguis fragilis Kakzogza 5 Pseudopus apodus Bullari 6 Cyrtodactylus kotschyi Hardhuce shtepie 7 Hemidactylus turcicus Hardhuce shtepie 8 Algyroides nigropunctatus Gjarpri i zi 9 Lacerta trilineata Gjarpri jeshil 10 Lacerta viridis Gjarpri i verdhe 11 Podarcis muralis Gjarpri i vogel 12 Podarcis taurica Gjarpri i vogel 13 Ablepharus kitaibelii Gjarpri i holle 14 Coluber caspius Shigjetull 15 Coluber gemonensis Shigjetull 16 Coluber najadum Shigjetull e holle 17 Elaphe l. longissima Bolla e shtepise 18 Elaphe quatorlineata Bolla e varrezave 19 Elaphe situla Bolla laramane 20 Malpolon monspenssulanus Bavroja 21 Natrix natrix Gjarpri i madh i ujit 22 Natrix tessellata Gjarpri i vogel i ujit 23 Telescopus fallax Gjarper 24 Typhlaps vermicularis Gjarpri i holle 25 Vipera ammodytes Gjarpri me nuska Source: “The Environmental Aspects Study of the Tirana-Durres Hilly Area”, Ministry of Environment

A13 - 35 Table 4.10 List of the Mammals in Tirana-Durres Area ORDER INSECTIVORA ORDER ARTIODACTYLA Fam. Erinaceidae Fam. Suidae Erinaceus concolor Sus scrofa Fam. Talpidae Fam. Cervidae Talpa caeca Capreolus capreolus Talpa stankovici Fam. Soricidae ORDER RODENTIA Suncus etruscus Fam. Sciuride Crocidura suaveolens Sciurus vulgaris Crocidura leucodon Fam. Gliridae Dryomys nitedula ORDER CHIROPTERA Glis glis Fam. Rhinolophidae Muscardinus avellanarius Rhinolophus blasii Fam. Muridae Rhinolophus euryale Microtinae Rhinolophus ferrumequinum Microtus epiroticus Rhinolophus hipposideros Microtus (Pitymys) felteni Fam. Vespertilionidae Microtus (Pitymys) thomasi Eptesicus serotinus Murinae Miniopterus schreibersi Apodemus flavicollis Myotis blythi Apodemus mystacinus Myotis capaccinii Apodemus sylvaticus Myotis emarginatus Mus musculus Myotis myotis Mus spicilegus (abbotti) Myotis mystacinus Rattus norvegicus Nyctalus leisleri Rattus rattus Nyctalus noctula Pipistrellus kuhli ORDER CARNIVORA – FISSIPEDIA Pipistrellus nathusii Fam. Canidae Pipistrellus pipistrellus Canis lupus Pipistrellus savii Canis aureus Plecotus auritus Vulpes vulpes Plecotus austriacus Fam. Mustelidae Vespertilio murinus Lutra lutra Fam. Molossidae Meles meles Tadarida teniotis Mustela nivalis Mustela putorius ORDER LAGOMORPHA Martes foina Fam. Leporidae Fam. Felidae Lepus europaeus Felis silvestris Source: “The Environmental Aspects Study of the Tirana-Durres Hilly Area”, Ministry of Environment

4.4 Socio-Cultural Environment (1) Population According to the Population Census 2001, the Albanian population was 3,069,275 as a whole as of 2001, including 519,720 of Tirana District consisting of Tirana Municipality (341,453) and other communes.

A13 - 36 The Tirana District is one of 2 districts of the Tirana Region (the other one is Kavaje District), and consists of the Tirana Municipality and 16 communes as Baldushk, Berxull, Dajt, Kamez (Kamuza), Kashar, Krrabe, Ndsroq, Parke, Paskuqan, Petrele, Peze, Serzhhite, Shengjergj, Vaqarr, Zall Bastar, and Zall Hell. Among them, Tirana Municipality, Berxull, Kamuza, Kashar and Paskuqan are related with the targeted area of the Project. Those Municipality and communes have a section for civic registration, and they register all the name of people living in each territory. According to such civic registration data, the actual populations of Municipality and communes concerned the targeted area of the Project are as shown in the following table.

Table 4.11 Population of Territories Concerned Administrative Unit 2001 2002 2003 2004 2005 Tirana Municipality 478,424 494,904 518,243 552,336 581,414 Kamza Municipality 49,068 60,563 63,022 67,033 75,858 Kashar Commune 16,810 17,058 17,202 17,347 18,228 Paskuqan Commune 27,566 29,924 31,642 32,563 34,329 Berxulle Commune 6,693 6,898 7,379 7,669 8,439 Figures between the census and civic registration list are different with each other, but this may often be able arrive because of different methodology and / or different purposes. For purposes of the project, the data from the civic registration has a better reliability to apply.

(2) Traffic The roads under the administration of the Tirana Municipality are 160 km in which are included 258 road. The actual road condition and that of pavements presents as follows:

− Paved streets 140 km − Unpaved streets 20 km − Public squares 43,682 m2 − Pavement with tiles and beton 384,510 m2 − Paved pavement 147,561 m2 There are some statistics on number of vehicles and passengers in the international seaport, railway networks, and roads. Following table shows a number of vehicles in the whole nation of Albania:

Table 4.12 Road Vehicles by Kind in Albania Item 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Car 56,728 67,96058,682 67,27876,822 90,766 92,252 114,532 133,533 148,531 174,782 190,004 Bus/Minibus 7,582 8,149 6,651 7,612 8,747 9,227 12,306 16,806 20,813 21,026 21,693 25,066 Truck/Van 31,084 42,271 25,790 27,774 30,105 34,378 35,266 43,301 49,600 51,960 53,900 46,809 Road tractor 8,251 8,842 3,334 2,838 3,151 2,731 1,860 2,274 2,721 2,670 2,957 1,966 Motorcycles 15,097 14,339 6,946 5,541 3,645 4,109 3,214 3,808 3,447 3,400 3,896 4,877 Trailers 10,965 12,32512,671 3,4973,788 3,990 4,250 5,261 6,436 6,367 6,673 5,930 TOTAL 131,700 155,880116,069 116,536128,255 147,199 151,147 187,982 218,551 235,956 265,904 276,656

A13 - 37 (3) Socio-Economic In Albania, the mandatory education is fixed at 9 yeas, elementary and primary education. Distribution of primary and secondary schools and access to basic education it the region of Tirana are quite good. The regional net enrolment rate for primary education is 98 % in the 2003/2004 academic year. The level of illiteracy in the region of Tirana is 1.2%, which is lower than the national average, 1.6 %.

According to the 2001 Census, the economic active population is counted at 1,347,281 as of 2001 in the nation with 22.68 % of unemployment rate. The unemployment rate is rather high comparing with the other developing countries. The economic active population in Tirana District and Tirana Municipality are 235,482 and 160,450 with 25.31% and 25.84 % of unemployment rate respectively.

Table 4.13 Economic Active Population and Unemployment Rate Region Economic No. of actual No. of Inactive Employed in Unemploym active employed unemployed people agriculture ent rate (%) population people people (%) Albania 1,347,281 1,041,775 305,506 823,156 56.45 % 22.68 % Tirana District 235,482 175,877 59,605 145,619 22.19 % 25.31 % Tirana Municiplaity 160,450 118,996 41,454 99,748 0.14 % 25.84 % Source: INSTAT

(4) Public Health In Albania, people who come to the public health and medical organization including hospitals, clinics and other facilities are not required any payment to such medical centers because that the Government give a medical subsidy to such facilities. According to a study of the World Bank, the Government of the state gives such subsidies at amount of around 3 % only of GDP to such health and medical facilities. This amount seems to be rather low comparing with the other countries located nearby (e.g. in Croatia, it is 13 % of GDP). Based on the Ministry of Health, the Government of the State has given a rounded amount of Leks 16 billion both in 2002 and 2003.

Average times to visit to hospitals and / or clinics per visited persons in Tirana District can be estimated at 2.40 times (or days) per year. And, average days in bed per hospitalized person also can be estimated at 7.62 days in Tirana District.

According to the data from INSTAT in Tirana City, the following public health institutions exist:

− 4 hospitals − 15 policlinics − 12 women consultancy − 13 child consultancy During 1993-2004 according to the information by the Ministry of Health there have been licensed 1,491 private subjects:

A13 - 38 − 402 medicines − 374 pharmacists − 376 dentists − 48 medical clinics − 12 medical laboratories − 97 pharmaceutics store − 8 dental laboratories − 8 optometry, etc.

Chapter 5 Impact Identification

5.1 General The basic purpose of EIA is its use as a planning tool so that the environmental and social considerations are incorporated in initial stages of project planning and the cost of environmental protection measures are treated as an integral component of the total project cost. The impact of the proposed project may be grouped into two categories namely (1) construction phase impacts, (2) operation phase impacts. The impacts during construction will be short period while the impacts during operation phase would be long term.

The first step in EIA is to identify the potentially significant impacts. The various aspects considered in impact identification of the project are as follows:

• project components, • project phases, • impact generating activities, • type of impact. The overall identification of the impacts has been done by using a matrix table that is a common tool to identify and present in a compact way the various impacts of a project. Therefore the impacts are being described in more detail for the construction phase and the operation phase.

In the matrix table, the activities are arranged in columns and environmental parameters in rows (Figure 5.1). The matrix thus identifies the environmental factors likely to be affected, and the activities responsible for this. The cells which fall at the junction of an activity and an affected parameter, have been shaded. The impacts may be negative and positive. This will be analyzed in further section.

(1) Activities during the construction phase During the construction phase, the following activities are likely to contribute the significant environmental impacts:

• Site preparation (fencing, grading and clearing of site) • Excavation (leveling of ground, digging of foundations, etc.)

A13 - 39 • Construction of connecting roads, pumping station, STP and trunk sewers, etc. • Transportation and disposal of earth materials and construction spoils • Soil compaction • Construction camps (temporary site office, maintenance workshops, facilities and other infrastructure to support all these activities and also workers camps) • Employment of people All these activities will have impact on environmental parameters as identified in the preceding section.

Several types of negative impacts upon environment may be caused during construction phase, primarily due to negligent practices. Appropriate techniques and responsible supervision is needed to avoid / minimize / mitigate these adverse impacts.

(2) Activities during operation phase The major project activities which are likely to impact the environment when the project is operational are:

• Energy utilization • O&M of STP • Treated effluent discharge from the STP • Sludge disposal from the STP Figure 5.1 gives a visual representation of the parameters affected at construction and operation phase.

A13 - 40 Phases Construction Phase Operation Phase SitePreparation Excavation Construction disposalofearth Transportationand SoilCompaction ConstructionCamps Employment ofPeople EnergyUtilization O&Moftreatmentplant TreatedEffluentDischarge Sludgedisposal

Parameter

Air Quality Noise / Vibration Water Environment Soil Quality Flora & Fauna Land use Socio-Economic Public Health Land Acquisition Traffic Worker Health

Figure 5.1 Impact Identification Matrix

A13 - 41 5.2 Positive Impacts The new construction of sewerage facilities and the treatment of the sewage generated in Tirana City will improve the quality of life and the life style of the people. Better sanitation facilities mean better health conditions and a cleaner environment. The risk of contagious diseases can be minimized and to an extent even mitigated. Laying the sewer would reduce the chances of contamination of the groundwater and in the water supply pipelines leading also to reduced incidence of diseases, improved health and economic well being of the community. Also, the discharge of sewage in the road drains, streams and the Lana River, which emanate foul smells and are unsightly, will be eliminated. The overall aesthetics of the city will improve which will have a positive impact on the economics of tourism industry.

• The collection and treatment of untreated sewage before entering the Lana River and its streams will improve the river water quality • Proper collection, treatment and disposal system of sewage will reduce the risks of parasitic infections, incident of various diseases including malaria, typhoid etc. • A proper sewage handling and disposal arrangement will minimize the chances of contamination of groundwater, surface water and piped water. • Such provisions assist to maintain ecological balance by reducing damages to fauna and flora. Controlled reuse of sewage supplements agricultural / farming activities and sustenance of environmental protection components. • Development of the project will encourage increased economic activities like commercial, industrial, etc. and will generate enhanced employment alternatives and economic growth for the city. • Nutrient rich treated water is used for irrigation. Beneficial impacts of the project will not be visible during the construction phase, when most of the impacts are usually adverse, though of short duration and temporary. The beneficial impact of the construction phase of the project would be the potential for employment of local population during construction stage, and the associated increase in trade and business, which would have a positive impact on the economy and the population, as long as it lasts.

In sum, the overall impact of the project on the socio-economic environment is expected to be beneficial and positive. The residents within the project area will benefit from great improvements in public health.

5.3 Impacts during Construction Phase (1) Impact on Sewer Lines (construction phase) Most of the proposed trunk / main and branch sewers are proposed to be laid on the right of way of the road.

A13 - 42 1) Acquisition / Severance The acquisition will not be a major issue since the new sewers are proposed to be laid on the right of way of the roads to minimize land acquisition. Due to the difficulty of laying sewers by open-cut method, some part of the trunk sewers shall be installed using pipe-jacking method. To apply that method, the construction of vertical shafts will be required and thus land should be acquired. However, the area required for vertical shafts are small so the impact is insignificant.

The sewer lines will be installed part by part. Only part of an area will be disturbed at a time and that too for a temporary period, indicating that severance experienced by the people will be for a short time at each particular site.

2) Socio-economic Activities Since the sewer laying activity is temporary, lasting for 2 – 3 months in each locality, not much socio-economic changes are expected in the area. It may create temporary job opportunities for a few persons in the area as construction laborers, traders and contractors etc. for that period. The impact will be beneficial.

3) Traffic During the construction of the sewer lines traffic congestion will take place, which will have some temporary impact on the social environment. Hindrance to pedestrian movement will occur due to the construction of sewer lines. Though the impact will be temporary and of short duration.

4) Cultural Property There will not be any impact on cultural assets during the construction phase of the sewer lines, because no construction activities are carried out near such historical or cultural heritage and in all cases the duration of this activity is very short.

5) Public Health The dust generated in the atmosphere may give discomfort in respiration systems to the workers and the nearby residents, especially those with respiratory disorders. Thus public health may be adversely affected, but the impact will not be serious and will be of a temporary nature.

6) Waste The disposal of the spoil will be necessary to restore smooth traffic in the area. It should be disposed of in the nearby low lying areas, in an environmentally compatible manner. The site where spoil is disposed of will need compacting at the end. The planting of trees on such compacted spoil disposal sites can give them an aesthetic look.

7) Ecology Construction of the sewer lines will not have any impact on the ecological aspects of the area.

8) Landscape The visual impact during laying of sewer lines will be unaesthetic because of dusty atmosphere, water spreading, muddy soil all around project site. Broken roads and pavements will add to the shabby look and the area will look crowded. The impact will be temporary.

9) Air Pollution During the construction phase, air quality will be deteriorated by the increase in the SPM (suspended

A13 - 43 particulate matter) in the atmosphere during excavation and removal of the excavated earth. It will also be deteriorated due to vehicular movements near the site of laying the sewers, however the adverse impact will be temporary and localized within 10 to 15 m from where the sewer line is being laid. The use of water sprinklers for settling the dry dust during excavation will reduce the dust generation.

Vehicular movement to transport pipeline and earth moving equipment will give rise to smoke,

hydrocarbons, carbon monoxide and NOx emissions. These emissions will travel down wind and get slowly dispersed in the ambient air. Thus, it will be important to keep vehicles in good conditions to avoid excessive smoke at the site.

Secondary impacts of rise in dust levels will be of the health of workers that may lead to a tertiary impact on the economic output of the labor force.

10) Water Pollution There are the Lana River and its streams in the project area. If excavated material is not properly stacked, it will find its way during rainy season into the streams and the River, thus increasing suspended solids in the River as a receiving water body.

11) Impact on Soil During laying the sewers, top soil will be displaced and permanent loss of top soil may occur if it is not stored and replaced. The excavated material needs to be disposed of in low lying areas and top soil should be preserved to avoid permanent loss of top soil. Once excavation is completed and overburden is disposed of in an environmental safe manner, the soil quality will get restored. The impact will be of temporary duration. Soil compacting along excavation for laying sewer lines should be carefully done in order to avoid future settlement. Excavation should be avoided during heavy rainy season in order to avoid landslides resulting in house collapse.

These impacts will be minor and limited to the construction phase only. No major impact on soil quality is anticipated.

12) Impact on Noise The noise levels during sewer laying will be due to laboring activity and the movements of cranes, vehicles etc. The noise level may reach up to the range of 80 – 95 dB(A). Table 5.1 presents international standards for noise from different construction equipment.

Table 5.1 International Standards for Noise of Construction Equipment Equipment Noise Level dB(A) at 2m Equipment Noise Level dB(A) at 2m Air compressor 74 – 87 Front-end-loader 72 – 84 Backhole 72 – 93 Grader 80 – 93 Bulldozer 80 Jack hammer 81 – 98 Concrete mixier 74 – 88 Paver 86 – 88 Concrete pump 8 – 84 Roller 73 – 75 Concrete vibrator 76 Craper 80 – 93 Grane 75 – 77 Tamper 74 – 77 Crane with ball 75 – 87 Welding generator 71 – 82 Dump truck 72 – 84

The construction equipment such as jack hammers, excavators, pay loaders, generators and concrete

A13 - 44 mixers will have noise levels above working environmental limits. Workers operating these machines may be affected if equivalent 8 hours exposure is more than the prescribed safety limits. Exposures to impulses of impact noise should not exceed 140 dB(A) and peak acoustic pressure. Exposure to 10,000 impulses of 120 dB(A) is permissible per day.

Noise likely to be generated near the construction site will be in the range of 90 – 105 dB(A) when all equipment are working together and simultaneously. This seems to be a small possibility. Hence, the noise levels are likely to be between 80 dB(A) and 90 dB(A) in an 8 hour shift.

13) Land Use Construction of the sewer lines will not make any impact on the land use pattern of the area, as most of the sewers will be laid on the right of way of the roads.

(2) Impact on Sewage Treatment Plant (STP) (construction phase) The construction impacts for the STP are similar in nature to the impacts for the sewer lines but they may vary in intensity. The location of the STP is undeveloped and therefore the impact of setting up the STP would be noticeable.

The intensity of the impacts depends on the area to be covered by the STP which depends in turn on the process and the flow to be treated. Basically the proposed treatment processes are of two extreme types: (i) extensive treatment by lagoons; (ii) intensive conventional treatment. For the lagoon system, huge land area is required for the treatment. For conventional treatment, the land requirement is very less for the treatment.

Project activities during construction phase may include demolishing of village houses, uprooting of plants and vegetations, and digging of soil. These activities will result in resettlement, cutting of few trees, dust generation, noise generation by construction equipment, inflow of construction labor, sediment load in construction water, and generation of solid waste in the form of construction spoils. The main impacts of construction phase are loss of village houses, agricultural land and few trees and such impacts are long term. The other impacts of construction phase will be small in magnitude as well as temporary in nature and are expected to wear out gradually once the construction activity is completed.

The following description is made assuming the selected treatment process of Trickling Filter. The comparison between the alternative STP locations and processes is presented in chapter 6.

• Type of STP : Trickling Filter • Capacity : 95,900 m3/d • Area required : 47 ha • Location : Mezezi Stalla in Kashar Commune 1) Acquisition / Resettlement / Severance Land acquisition is necessary for the STP. The effort to avoid the resettlement is made and no resettlement occurs by the proposed project as shown in Figure 5.2.

A13 - 45

Figure 5.2 Location of Proposed STP The map of land use of the area of proposed STP is obtained from Real Estate Registering Office but it is very difficult to obtain the name of each landowner. The map shows that the site is divided into many parcels / blocks and assuming that each parcel / block belongs to a landowner, more than 80 landowners shall be affected by the expropriation of the proposed STP site.

A13 - 46

Figure 5.3 Land Information of Kashar STP The severance may occur due to the proposed STP site which will split the some households living north and west side of the site. To mitigate the impact, access road should be constructed.

2) Socio-economic Activity In general, the construction of the STP will have some positive impact on the economy of a few families who may get financial benefits for a year or two, improving their annual income. The sale of private lands may also bring profits to landowners in the area.

3) Traffic Currently the traffic in Tirana city is heavy and it is expected that the construction materials have to be transported through the city. This will lead to traffic congestion within the city limit. The road passing near the proposed STP site is narrow and unpaved which will make vehicular traffic difficult during the construction phase both for villagers and construction staff. The impact will be adverse and of short duration. To minimize this negative impact the unpaved road can be broadened and black tapped.

4) Public Facility There are three steel towers of electricity in proposed STP site, and these should be moved to another place. The removal and transfer of these towers should be done in close consultation with electric company.

A13 - 47 5) Cultural Property There will not be any impact on the cultural assets in the project area because there are no such assets near the proposed site. In any case, construction activity will not last long and will not involve any blasting or other techniques which might damage or weaken the nearby archaeological heritage.

6) Public Health There will be slight adverse impact on the public health of the residents near the proposed STP site during construction due to deteriorated air quality and noise etc. However the effect will be temporary. Workers are usually the immediately affected people if unsanitary practices are adopted on the construction site due to high fever, or epidemic diseases. The impact will be adverse but it will be avoidable by providing adequate sanitation facilities for the labor camps.

7) Waste The spoil will be generated during construction of the treatment plant by way of rejected plant materials, bushes during site clearing, excess earth, etc. The spoil will have to be disposed of in a proper manner at the pre-identified safe disposal sites. Suitable dumping sites will have to be identified near the proposed STP site for any of the options. If not disposed in an environmentally compatible manner, it will create minor adverse impacts in the surrounding area.

8) Land Use Preparatory activities like construction of access road, temporary offices, quarters etc. will be confined within the proposed site. These will not generally exercise any significant impact except altering the land use pattern of the proposed STP site. There will be no impact on the adjoining land. The land, which is mostly private pastureland, has to be acquired and to be diverted from its present use for creation of the proposed STP. As a result the impact on land use would have some significance and any impact due to construction will be confined within the boundary limits of the project area and will not hamper the land use aspects outside. However, indirectly there may be some change in the land use pattern of the proximate area due to influx of construction work force and supplier who are likely to construct temporary tents in the vicinity.

9) Impact on Soil Whatever the alternative of STP site, the topsoil of the area that will be covered by the treatment units (sedimentation tank and trickling filter structure) and will be definitely lost. The topsoil of the other parts of the plant site that will be temporarily disturbed or excavated during the construction phase will have to be restored after construction. However, the land of proposed STP is not under active cultivation and only used as pastureland. Thus, the adverse impact would not be significant.

10) Hydrological situation The stream of the Lana River is very close to the proposed STP site. If excavated material is not properly stacked, it will find its way, especially during rainy season into this natural drain, which shall lead silting and weed growth.

11) Ecology The impact of construction activities will be primarily confined to the proposed project site. The sites are pieces of farming land and have some trees. The site does not involve any forestland. Thus, the site development works will not lead to any significant loss of any important taxa. As the

A13 - 48 water quality of the surface water bodies is not likely to change due to the construction activities, no impact on the aquatic life is expected.

12) Visual Impacts The visual impacts at the construction site of the STP will be unaesthetic. The dumping of construction materials will not look any better. Extensive movement of vehicles with badly maintained engines will generate smoke all around the site. The dust at the site will be carried over to nearby areas in windy or stormy weather conditions. Broken pavements and opened roads would add up giving an unaesthetic look to the construction site. However the impact will be temporary and localized.

13) Impact on Air SPM would be the predominant pollutant affecting the air quality during the construction phase of STP. The soil of the project area is likely to generate considerable quantities of dust, especially during dry condition. Dust will be generated mainly during excavation operation of the treatment unit along with transportation activities and open storage of fine earth materials. However, wind in the area generally being low (15 m/s as annual average), wind blown dust is not expected to have tangible effects. Mostly the automobile traffic and construction machineries will generate undesirable gaseous pollutants. However, this would not lead to any tangible effect, as the expected traffic volume is low.

14) Impact on Noise During the construction phase, noise will be generated due to movement of vehicles, and operation of light & heavy construction machineries including pneumatic tools (bull dozers, scrapers, concrete mixers, pumps, vibrators, cranes, compressors etc.) that are known to emit sounds with moderate to high decibel value. The construction activity will increase the noise levels up to 80 to 90 dB(A) at peak hours. Noise generated from sources mentioned above will be intermittent and of short duration mostly during daytime. Therefore, no significant impact is anticipated on account of noise generation around the project site. However, the workers are likely to be exposed to high noise levels that may affect them.

5.4 Impacts during Operation Phase The operation phase of the sewerage project will include collection of sewage from individual service connections and its conveyance through branch and trunk sewers to the STP. It also includes the operation of STP. The predicted impacts of these activities are discussed below. Overall, the predicted adverse impacts during the operation phase will be miner as compared to the construction phase. During the operation phase, all the beneficial impacts of the project will be realized.

(1) Impact on Sewer Lines (operation phase) 1) Soil and Water Blockages in the sewer lines due to inappropriate maintenance may turn lead to profuse leaking and occasionally overflow from manholes occur. This results in impacts as identified below:

− On soil quality by contaminating the same and disturbing the soil stability leading to settlement − On water supply through intrusion of contaminants into water supply system

A13 - 49 − On aesthetic environment due to fly and odor nuisance 2) Occupational Health of workers Likely impacts on occupational health of workers during operation phase are due to accidents caused by:

− In deep connecting operations − Accumulation of gas in sewers and other confined spaces − Contact with sewage during repair / maintenance (2) Impact on Sewage Treatment Plant (STP) (operation phase) Project activities during operation phase include inflow of untreated sewage to the first sedimentation tank, trickling filter, second sedimentation tank, chlorination and disposal of treated effluent to the channel. The main impacts of operation phase are chemical hazards & enhanced risk level and such operational impacts are long term.

1) Water Environment In all, the impact of the sewage treatment on the receiving water bodies will be highly positive, as no sewage will be discharged untreated into rivers, streams and drains any more. The water quality data showed that most part of the Lana STP site River is polluted. The operation of the STP will reduce 15 tons BOD / day, and it will Effluent point contribute to improve the deteriorating water quality of the Lana River in Greater Tirana.

The effluent will be discharge into the stream nearby the STP and it flows into the Lana River. The present condition of the stream is polluted with sewage and solid waste and flow is small. Thus, the effluent which meets the EU standards will improve the present water quality of the stream. The amount of effluent is 97,000 m3/d and the stream has enough capacity to receive that amount.

2) Sludge Production and Disposal On average the sludge production will be 22.6 t /day from the STP. It will be dried on the sludge drying bed or by using de-watering machine. During the drying process, there will be a nuisance of insects around the sludge drying beds and de-watering machine. It can be minimized by spraying insecticides in the area, also by proper maintenance of sludge drying beds / de-watering machine and proper drainage. The wet sludge should be raked often and the dried sludge removed frequently. The dried sludge can be used as manure by farmers if there is the demand or should be disposed of in specific landfill sites. Disposal of sludge with domestic waste is acceptable. Monitoring of the quality of the sludge is required. Movement of sludge tankers from STP can create traffic problems and give rise to noise and odor nuisance. Mode of transport should be appropriate and routes chosen so as to minimize inconvenience to the public. Odor control is also required. It is preferable to use enclosed tankers for transporting sludge.

When carrying out the detailed design of the STP, a sludge disposal plan must be prepared whose objectives are: (i) to identify the land where the sludge can be disposed of, (ii) to define the frequency of land application and (iii) the quantity of sludge to be applied each time. The area

A13 - 50 where the sludge will have to be stored must also be defined. The sludge disposal plan should also take into account the type of crops and the soil characteristics.

3) Odor Production STP will generally generate odor without proper operation. In STP, the majority of the odor comes from the sludge handling system such as sludge drying beds and de-watering machine. The Japanese Offensive Odor Control Law classifies the offensive odor into six levels by its intensity. In relation with ammonia and hydrogen sulfide, the relationship between the concentrations of these substances and odor intensities is as follows:

Table 5.2 The Relation between Concentration of Odor Substances and Odor Intensity Odor Degree of Odor Odor Substance (ppm) Intensity Ammonia Hydrogen Sulfide 0 Odorless 0 0 1 Scarcely perceptible odor. The threshold concentration 0.1 0.0005 that can perceive the existence of substance 2 Faint odor. The threshold concentration that can 0.6 0.006 recognize the kind of odor substance 3 Perceptible odor 2 0.06 4 Strong odor 10 0.7 5 Extremely strong odor 40 8 Source: Japanese Offensive Odor Control Law)

4) Noise Level STP with trickling filter does not involve a lot of mechanical and motor driven equipment such as aerators or blowers and so noise levels are insignificant. No diesel generators are expected to be operated regularly at the location of the STP. Therefore, in view of the treatment technology chosen, it is concluded that the STP will not contribute to or increase the ambient background noise levels in the area.

5) Worker’s and Public Health Even though the STP will be useful to improve the health of the citizens, it may not be so in regard to the health of the workers who are operating the plant. In the operation phase of the STP, care needs to be taken for the workers’ health. The workers may suffer from epidemic diseases. The impact on their health would be adverse and significant. The workers should be provided with safety equipment for safe handling of the STP – sewage and sludge – and must be instructed in its use. This will eliminate any possibility of adverse health effects on the workers during plant operations. Adequate medical help should also be provided.

6) Ground Water There is no aquifer runs through the proposed STP site and the chance of ground water contamination is quite low. However, there exists two wells near the site according to the hydro-geological map, thus the monitoring of effluent should be required.

Chapter 6 Analysis of Alternatives

6.1 With and Without Proposed Project The zero alternative of no project will increase the risks of public health degradation; decrease of

A13 - 51 biodiversity values, and decline of local economy.

If the project are implemented (with the project scenario), sewage discharged to the rivers at present will be treated in 2014 while if the project are not implemented (without the project scenario) no sewage is treated and all the sewage discharged finds its way to the Lana River degrading its water quality and river environment. The estimation shows that the BOD value will be increased to 101 mg/l at the Lana River without the project, while the present value is 95 mg/l. The BOD value will be decreased to 13 mg/l at the Lana River with the project.

6.2 Alternatives The analysis of alternatives of sewerage system, proposed project site, treatment process and routes of trunk sewer are studied deeply in the Chapter 10 of Part I of Main Report.

In the Feasibility Study, three options are considered as the priority project considering financial cost, targeted service area and sewage treatment level.

− Option 1: the proposed first stage project, with primary sewage treatment process − Option 2: Service area of Lana River basin, with secondary sewage treatment process − Option 3: Service area of Lana River basin, with primary sewage treatment process Item Option 1 Option 2 Option 3 (Primary Treatment) (Secondary Treatment) (Primary Treatment) 1. Basic Information 1.1 Service Area 6,207 ha 2,343 ha 2,343 ha 1.2 Service Population 695,800 342,500 342,500 1.3 Sewage Flows Ave. Daily:156,567 m3/d Ave. Daily:77,058 m3/d Ave. Daily:77,058 m3/d Max. Daily:194,835 m3/d Max. Daily:95,893 m3/d Max. Daily:95,893 m3/d 2. Outline of Sewerage System 2.1 Sewers Trunk: 13.4 km Trunk: 4.4 km Trunk: 4.4 km Main: 28 km Main: 1.4 km Main: 1.4 km Branch: 31 km Branch: 28 km Branch: 28 km 2.2 Pumping Station Capacity: 148.2 m3/ min, at Kashar 2.3 STP:Kashar STP 2.3.1 Sewage Treatment (1) Treatment Level: Primary Treatment: Secondary Treatment: Primary Treatment: BOD and SS 30/40 % 88/85 % 30/40 % Removal Rate (2) Water Quality, Raw sewage: Raw sewage: Raw sewage: BOD and SS conc. 200/200 mg/L 200/200 mg/L 200/200 mg/L Treated sewage: Treated sewage: Treated sewage: 140/120 mg/L 24/30 mg/L 140/120 mg/L (3) Capacity of STP Max. Daily: 260,000 m3/d Max. Daily: 95,900 m3/d Max. Daily: 95,900 m3/d 2.3.2 Sludge Generation Wet: 22.1 ton/d Wet: 22.6 ton/d Wet: 6.7 ton/d Dry: 8.1 ton/d Dry: 8.2 ton/d Dry: 4.0 ton/d 3. Preliminary Cost Estimate

A13 - 52 Item Option 1 Option 2 Option 3 (Primary Treatment) (Secondary Treatment) (Primary Treatment) 3.1 Project Cost 13,312 11,002 8,197 (except land) (10,244) (7,973) (5,168) 3.4 Annual O&M Cost 114 Mil Lek/y 91 Mil Lek/y 67 Mil Lek/y Three options are compared and evaluated with the following criteria selected:

− Beneficiaries: Direct and Indirect − Pollution Load Reduction − Treated Sewage Quality and Flow − Operation and Maintenance Requirements − Project Cost (Direct and Indirect Cost) − Operation and Maintenance (O&M) Cost − Environmental and Social Impacts − Effects on the Sewerage Project Promotion and Public Awareness Evaluation Option 1 Option 2 Option 3 Criteria (1) Beneficiaries Direct beneficiaries: 695,800 Direct beneficiaries: 342,500 Same as that of Option 2. (2) BOD Load 9.3 ton/day 13.6 ton/d 4.6 ton/day Reduction Efficicy Index 1.1 2.2 1.2 (=9.3 ton/d / 8.1 Bil. Lek) (=13.6 ton/d / 6.3 Bil. Lek) (=4.6 ton/d / 4.0 Bil. Lek) (BOD removed per direct construction cost) (3) Treated BOD/SS conc.: BOD/SS conc.: BOD/SS conc.: Sewage 140/120 mg/L 24/30 mg/L, 140/120 mg/L Quality and Ave. Daily Flow: Ave. Daily Flow: Ave. Daily Flow: Flow 156,600 m3/d 77,100 m3/d 77,100 m3/d (Effluent Load (22/19 ton/d) (1.9/2.3 ton/d) (11/9 ton/d) of BOD/SS) (4) Operation and Pumping Station (PS): No need to operate PS. No need to operate PS. Maintenance Proper operation of PS is STP: (O&M) innevitable for conveying To operate the full set of STP: Requirements and treating the sewage at sewage and sludge the same as the Option 1, the STP treatment system, training but the number of facilties STP: of operator are inevitable. is less than that of Option O&M technique to operate Appropriate removal of 1. primary treatment is easier sludge is key function of treatment (5) Project Cost About 10 Billion Lek About 8 Billion Lek About 5 Billion Lek (excluding land acquision cost) Direct construction cost: Direct construction cost: Direct construction cost: 8 Billon Lek 6 Billon Lek 4 Billon Lek (6) O&M Cost 114 Million Lek/year 91 Million Lek/year 67 Million Lek/year

Index of O&M 1.8 Lek/m3 2.9 Lek/m3 2.1 Lek/m3 cost per (=114,000,000/365/156,600) (=91,000,000/365/77,100) (=67,000,000/365/77,100) planned average flow (7) Environmental The effluent to the receiving The effuent quality is better The impacts of effluent on

A13 - 53 and Social water body give negative than the present water receiving water body are the Impacts impacts because the effluent quality but impact of flow same in quality but smaller still contains pollution loads will be needed to assess for in quantity than that of and gives a bad impression further study. Option 1. to the people when they see treated water discharge to the river. (8) Effects on the Because of the largest direct It is expected to have The same level of Sewerage beneficiaries among the smaller beneficiaries but to beneficiaries is expected as Project options, it is expected that contribute to improvements that of Option 2. Promotion and the people enjoy improved in living environment of Public living environment and Lana area and water quality However, this option also Awareness understand water quality in Lana River in the urban has the same problem as improvement in the Lana center. option 1. River.

However, it is worry about But, this option is expected that people receive a wrong greatly to contribute to the image or a chance of people’s understanding to misunderstandig from the the sewerage system and appearance of discharged effects of swage treatment effluent that the sewage by visiting STP and seeing treatment plant produces and the treated sewage. discharges such polluted water to the river.

Taking the difference of construction and O&M costs among options, the effluent quality and BOD load reduction, environmental and social impacts and effects of sewerage project promotion and public awareness into account, it is concluded that Option 2 is favorable for the Priority Project to be Studied its feasibility to implement the project for the Greater Tirana. The detailed analysis is conducted in Chapter 2 of this report.

Chapter 7 Environmental Mitigation Plan The objective of preparing an Environmental Mitigation Plan (EMP) is to formulate measures, whose implementation will:

• Mitigate adverse effects on various environmental and social components and resources as have been identified in the EIA study; • Protect Environmental Resources wherever possible • Enhance the value of the environmental component wherever possible. The EMP also includes a plan for monitoring so as to enable evaluation of the success or failure of environmental management measures and reorientation of the plan if found necessary. It is necessary that the resources required for the mitigatory / protection / enhancement measures, as also for monitoring are provided for in the cost estimates of the project so that their implementation is ensured.

The mitigation measures to be adopted cover both the construction phase and the operation phase. These measures normally are short term during the construction phase and long term during the

A13 - 54 operational phase.

It should be noted that individual mitigation measures implemented bit by bit, may only be partially effective. In addition, they may on occasion, result in further impacts on the local environment. It is recommended, therefore, that the undertaking contractors be required to produce an environmental management plan for all the proposed operations.

The community must be informed in advance about the benefits of the project and possible inconvenience. The implementing agency must seek co-operation of the local authorities, and execute the project effectively and efficiently. Success of the project depends upon participation and support of the community. Efforts need to be made to involve the population at different stages of project execution and in subsequent maintenance. The construction work should be carefully planned and managed in order to cause minimum disturbances to people.

7.1 General Mitigation Measures (1) Construction Phase The construction phase impacts have been outlined in chapter 5.3. All these adverse impacts have been taken into consideration. Following measures should be adopted in general for all activities:

• Minimum damage to existing flora and fauna, structures, electricity and telephone cables. • Minimum disturbance to the local activities and business should be ensured. • The sewer pipes should be stacked properly into pre determined location and should not be cluttered around blocking the pedestrian area alongside the roads. • Excavated earth should be prevented from getting washed into drainage channels, rivers and streams. • Surplus excavated earth should be disposed of immediately. • Measures should be taken to prevent direct discharge of polluted waters from construction activities into lake, rivers and streams. • Dust pollution should be controlled with the measures outlined in the in the Table 7.1. • Pavements and roads should be repaired immediately following the construction activity and the project and surrounding area should be restored to as near as possible pre-project conditions. • Adequate measures should be taken to minimize construction related noise. • Proper precautions should be taken against risk of accidents. (2) Operation Phase The operation phase impacts have been outlined in chapter5.4. All these adverse impacts have been taken into consideration. The following measures should be adopted in general for all activities:

• The treated water quality should be maintained as per the requirements at all times. • Air and noise quality should be monitored and corrective action taken in case it exceeds applicable norms. • Proper precautions should be taken for the good health of the operatives and the population.

A13 - 55 7.2 Mitigation Measures for Sewer Lines Selection of route for sewer lines is one of the most important activities in the pre-construction phase. In order to minimize adverse environmental impacts and land acquisitions, to avoid resettlement and rehabilitation problems and in general, from a social point of view, to minimize severance and other problems due to pipe laying activities, the sewers will be laid along the roads.

Movement of heavy vehicles and operation of construction equipment will generate high noise levels and will influence adversely the existing environmental conditions. These impacts will be, however, limited to the construction period only and to minimize the noise problems, the following measures should be taken.

• The equipment to be utilized in the construction of the project shall be fitted with vibration isolators. These equipments shall conform to the sound level emissions as stipulated as appropriate standards. • Vehicles producing noise levels exceeding the prescribed limits due to poor engine adjustment, damage to noise amelioration equipment or other inefficient operating conditions shall not be used. • Protective devices such as earplugs, muff, etc. will be provided to the workers working in the noisy areas. • Construction activities will be strictly prohibited between 10:00 PM to 06:00 AM in the residential areas. • Near sensitive areas like mosques, schools, hospitals / health centers and important public buildings due care shall be taken by adjustments of time to avoid interference with main functions. The impacts on air quality during the construction phase of the project can be anticipated due to fugitive dust generation in and around the working area and construction yards from the movement of vehicles, operation of the construction machinery and handling (loading / unloading) of materials. Following mitigation measures shall be taken for reducing the impacts on air quality:

• The method of handling cement and other materials shall include means of eliminating atmosphere discharge of dust. • Equipment and vehicles producing excessive emissions of exhaust gases due to any mechanical fault shall not be allowed for operation. • Regular maintenance of vehicles and equipment should be carried out. • Regular third party inspection of construction sites shall be carried out to ensure the disposal of the construction debris to the approved landfill sites. • Low emission equipment shall be used. • Vehicles carrying construction material shall be covered with tarpaulin or canvas sheet to avoid spilling. Additionally, left over of such materials deposited on the surfaces of vehicles shall be removed before transportation. • Sprinkling of water at construction sites for dust suppression wherever necessary. • Construction debris should be properly dumped into a closed area to prevent dust propagation with the air.

A13 - 56 7.3 Mitigation Measures for Sewage Treatment Plant (1) Land Acquisition 47 ha of land should be acquired for the proposed STP. The land should be acquired based on the Law No. 8561 dated 22.12.1999 “On Expropriation and Temporary Utilization of Private Property for the Public Interest” and four Governmental Decrees. The acquired land should be compensated by money or alternative land. The STP will be constructed close to some residential houses, thus, if the residents wish to relocate to another place, GTW&SA should take into consideration. The close consultation with the residents near proposed site should be necessary.

(2) Water Environment Fist and foremost, care should be taken to ensure adequate treatment to meet the EU effluent standards, as the Albanian Government is considering joining EU. The treated water quality should be monitored carefully so as to meet the effluent standards effectively. The present water quality of receiving body is bad. During dry season, only sewage with solid waste flows in the stream and even methane gas is generated. The effluent, which meets the EU standards, will be discharge into this stream, and that will improve the present condition of the stream.

(3) Sludge Disposal The sludge from the STP should be disposed of in an environmentally acceptable manner. The sludge should be dewatered in sludge drying beds / dewatering machine and the dried sludge is proposed to be used as fertilizer since it is biological in nature and has soil quality enhancing properties. However, the following precautions should be taken in the treatment, handling and disposal of the sludge:

• To rake the wet sludge frequently and remove dried sludge immediately, • To facilitate proper drainage to avoid standing water leading to mosquito breeding, • To store the dry sludge in a covered place before its distribution to farmers, • To develop a green belt around treatment plant, especially around sludge drying bed to reduce odor nuisance, • To take care that the operatives handling the sludge are properly clothed with gloves and gum boots and will not handle the sludge with bare hands. The volume of sludge is small compared with total volume generated in Greater Tirana (1600 ton / day in 2002), but it is necessary to consider the landfill site for the sludge. The sludge does not contain the dangerous chemical or heavy metals so it is acceptable to dispose of with the domestic solid waste. At present, Sharra landfill site, approximately five kilometers southwest of the Tirana city center, is the only significant, active landfill in the greater Tirana area. It is located in a valley in the Erzen River basin. There is more capacity in the valley at Sharra that is now being filled with solid waste. Physically, there is sufficient volume available to accommodate a few more years of the waste generated from the Greater Tirana planning area. Thus, the sludge generated from the STP will be disposed of at the Sharra landfill

A13 - 57 site. However, in 2000, UNEP (United Nations Environmental Program) identified the Sharra landfill as one of five environmental “hot spots” in Albania. Due to environmental concerns, the limitations of available landfill capacity, and the necessary lead time required to identify and develop a new landfill, the World Bank proposed the landfill sites at the north and southwest of the city in “Strategic Plan for Greater Tirana” in 2002. The proposed STP will start the operation in 2014, thus the proposed landfill site is appropriate for the sludge disposal of STP. The close consultation with Tirana Municipality should be required to decide the disposal site in detail design stage.

(4) Workers’ Health The workers’ health should be monitored with medical check-ups at the time of joining and thereafter annually. In between, in case of any complaints, respiratory ailments, accidental chlorine leakage etc., medical check-up should be conducted.

All the workers should be trained in first aid and emergency medical health should be available round the clock. It is also recommended from the safety point of view that one officer of the managerial cadre is available on duty at all times.

(5) Odor The odor is not big problem when the STP and sludge drying bed are properly operated and maintained. Thus, it is the most effective mitigation measure that the STP should be operated and maintained properly. In addition to this, the wind speed of this area is not high (1.2-1.8 m/second), the odor around the sludge drying bed will not be spread over the residential area. However, there are some residents near the proposed STP site, creating buffer zone with trees is recommended to mitigate the impact.

7.4 Cost Estimate for EMP The impact mitigation measures suggested in this report naturally involve certain costs, but they are insignificant when compared to the total project cost.

The Environmental Mitigation Management Plan cost includes mainly the plantation around the treatment plant site. The Plantation costs 66 million Lek for technical and biological reclamation of the planting of trees and planting of grass. This cost is included in the direct construction cost of Sewerage Treatment Plant shown in Table 3.4.

This cost estimate does not include: (i) the environmental monitoring, which is categorised with sewage treatment plant operation; (ii) the land acquisition costs and other compensation costs, which are categorised with the project investment costs; (iii) the costs of closing of trenches, cleaning of debris, soil compaction and relaying of roads which are included in the construction works.

A13 - 58 For noise reduction, no special costs are involved. Silencers for vehicles should be included in the cost of vehicles. The construction phase EMP is to be incorporated at the planning and design stage and should form a part of the contract given out for construction (most of mitigation measures suggested would fall under this category).

A13 - 59 Table 7.1 Environmental Mitigation Plan

Environmental Adverse Impact Nature of Proposed Mitigation Measures Implementing Issues Impact Authority 1. Construction Phase 1.1 Land Acquisition • Inadequate compensation Significant • Minimize relocation GTW&SA/ and Tirana • Relocation trauma and infections and • Advance realistic payments to be made to relocated Permanent Municipality/ other diseases in the new location (estimation for compensation for land and property MoPW&TT should be made on the prevailing market rates) • Provision of clean drinking water, sanitation, proper drainage at new locations 1. 2 Existing • Site clearance and works Not • Minimum damage to existing structures, flora and Contractor Significant Infrastructures • Damage existing structures fauna, avenue trees and other natural vegetation, and electricity & telephone lines and other infrastructure • Affect electricity supply and temporary services telecommunication lines, • Cleared earth and debris should be properly disposed • Clutter road sides with pipes, off • Cause general nuisance to public. • Storage sites should be identified for stacking pipes so as not to clutter road sides 1.3 Traffic • Traffice jams, bottlenecks, delaye and Significant • Co-ordinate and plan all activities in advance Contractor/ and GTW&SA / inconveniences to general public • Adequate actions to direct traffic in consultation with Temporary traffic police • Serious disruptions of vehicular traffice police traffic, pedestrian access and • Minimize vehicle movements commerce • Preference for unused or low traffic roads • Construction of temporary roads and diversion of traffic • Use local construction materials to avoid long distance transportation, especially of earth and stones • Seek publice co-operation through public awareness 1.4 Cultural/ • Loss of information / relics of Significant • If fossils, coins artefacts of value or antiquity, structure Contractor/ Archaeological historical / archaeological or religious and remains of geological or archaeological interest GTW&SA/ Relics importance are found, the local government should be immediately Tirana Municipality/ • Legal problems and delays can arise if informed and excavation should be stopped until not handled properly idenficiation of cultural relics by authorized institutions is completed.

A13 - 60 Environmental Adverse Impact Nature of Proposed Mitigation Measures Implementing Issues Impact Authority 1. Construction Phase 1.5 Social Disruptions • Disruptions in utility services Significant • Minimize interruptions to services through proper GTW&SA/ and Tirana • Social hostility due to employment of planning and scheduling of activities and strong Temporary inter-departmental co-ordination Municipality/ outsiders on construction activities Traffic Police/ • Preference should be given to local labor / skilled Contractor persons during construction, operation and maintenance 1.7 Loss of Natural • Loss of avenue trees and natural Significant • Replantation on treatment plant area, as well as around GTW&SA/ Vegetation vegetation expecially in the clearance and the periphery (usually ten trees should be planted for Contractor for treatment plant site Permanent every tree felled) • Replantation of avenue trees and ensuring proper care for growth 1.8 Water Quality/ • Increase in turbidity affecting surface Significant • Ensure steps to prevent earth and stone from silting up Contractor/ Drainage water quality the drainage systems GTW&SA • Sanitary pollution • Control run off and soil erosion through proper drainage channels and structures • Provide adequate sanitation facilities to construction site workers 1.9 Landscape • Visually anaesthetic conditions due to Significant • Enhance aesthetics through proper housekeeping of Contractor cluttering of waste, and spols, dup up and construction site Temporary roads and pavements • Disposal of construction wastes at the approved sites quickly • Repair pavements and roads after sewer laying work is completed • Completing the construction activity by removing all spoils

A13 - 61 Environmental Adverse Impact Nature of Proposed Mitigation Measures Implementing Issues Impact Authority 1. Construction Phase 1.10 Soil Quality • Due to excavation and earthwork: soil Significant • Stabilize all slopes with provision of benches / Contractor erosion, loss of top soil, silting and and pitching blocking of drainage / stream, which Permanent • Avoid earthwork during heavy rainy season can cause slush; damage to existing • Provide adequate cross drainage / stream facilities structures • Restrict traffic movements and use low ground • Due to compacting: loss of original pressure machines quality, reduction in fertility • Preserve top soil to be replaced after the completion of construction activity; avoid wet soils • Dispose of surplus earth after raising levels and refilling sewers, in low lying areas with proper compacting and planting of surfaces • Plant shrubs / trees / grass on exposed slopes and surfaces 1.11 Air Quality • Localized increas in dust due to Significant • Dust dontrol through sprinkling / washing of Contractor excavation & earthwork and construction sites and access roads particularly in Temporary • Temporary increase in the levels of congested areas SO2 / NOx from construction • Use of dust cover over construction material equipment and vehicles • Dust collectors should be used in all drilling operations • Unnecessary idling of trucks should be avoided • Construction material trucks to be covered to minimize spills • Preventive maintenance of construction equipment and vehicles to meet emission standards • Construction requiring heavy traffic street closing / diversion should be carried out during night time

A13 - 62 Environmental Adverse Impact Nature of Proposed Mitigation Measures Implementing Issues Impact Authority 1. Construction Phase 1.12 Noise • Increase in noise levels due to Significant • Equipment emitting noise over 90 dB(A) should be Contractor construction work, transport of and avoided Temporary construction materials etc. • Where residences are located within 200 m and in sensitive areas like hospitals, schools, zoos, noisy construction work should be carried out in day time only • Equpiment maintenance strengthened to keep them low noise • Sound barriers should be installed if needed 1.13 Risk of Accidents • Endangering lives of people / workers Significant • Adequate traffic control measures should be taken Contractor/ GTW&SA during construction due to inadequate • Sign board warning presence of open sewer laying safety measures • Guard rails to protect pedestrians • Strong safety policy for workers; protective helmets to be provided 1.14 Construction • Prevalence of unsanitary conditions Significant • Adequate measures such as provision of septic tanks / Contractor Camps and practices like open air defecation and pit latrines around the construction camp sites Temporary • Possibilities of public health problems • Provision of clean drinking water • Pilling of garbage from workers • Collection of garbage in gargabe cans n fixed places and disposal of it regularly

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Environmental Adverse Impact Nature of Proposed Mitigation Measures Implementing Issues Impact Authority 2. Operation Phase 2.1 Public Health • Mixing of sewage with drinking water Significant • Any such health risk to public should be minimized GTW&SA/ Operator • Outbreak of waterborne diseases by proper maintenance and operation of sewers, pumping station, treatment plant etc. • Unhealthy conditions: mosquito breeding over sludge drying beds, etc. • In case of failure, inform relevant authorities to alert public at risk so that precautions might be taken 2.2 Workers Health & • Workers may be inflicted by endemic Significant and • Proper house keeping of the treatment plant to GTW&SA/ Safety & other diseases respiratory ailments Permanent prevent unsanitary conditions Operator • Accidents and loss of lives may occur • Regular medical check ups and immediate treatment during sewer cleaning & maintenance of affected workers • Non availability of emergency • Maintenance personnel should not perform medical facilities at all times during dangerous tasks when alone, enter the manholes day & night without checking for gas and without proper protective clothing, enter the manholes without ropes and harnessess firmly tied • Manholes should not be left open especially in busy roads, near schools and residential areas 2.3 Social Disruptions • Breaking of sewer lines by farmers Significant • The sewers should be patrolled and any unauthorized GTW&SA/ for irrigation as sewage would be a human activity should be discouraged Operator / NGOs continuous source of water for • Farmers should be educated on health effects of irrigation using untreated sewage for irrigation, especially the effect of sewage flooding due to breakage of sewers with risks of epidemics 2.4 Sludge Treatment • Improper treatment of sludge could Significant • Sludge should be treated properly and dewatered GTW&SA/ Operator & Disposal lead to putrefaction and other related • Dried sludge should be disposed of in a specified problems such as bad odor, health landifill site (i.e. Sharra Landfill Site) with proper effects etc. precautios or given for land application fo farmers, if it can be handled properly by them • The close cooperation should be required with Tirana Municipality for the new landfill site which is proposed by the World Bank.

A13 - 64 Environmental Adverse Impact Nature of Proposed Mitigation Measures Implementing Issues Impact Authority 2. Operation Phase 2.5 Landscape • Pumping stations, treatment work site Not significant • Sewage plant should be located away from the GTW&SA/ might pose an unaethetic sight but is densely populated residential areas Operator affects only close residents • Plantation of trees in and around the punping station / treatment plant would improve the aesthetics 2.6 Water Quality • Overflow of sewers and breakdown of Significant • Preventive maintenance of all components should be GTW&SA/ treatment plant leading to failure in performed regularly Operator meeting the requisite standards • Relevant standby equipment and spare parts should • Poor performance will affect the be provided; standby power generation should be receiving water body and also the provided at pumping station, if any proposed reuse for irrigation • Proper response plan must be prepared and all workers must be trained to tackle emergencies 2.7 Air Quality • Problems of bad odor from the Significant • Some bad odor from treatment plant is unavoidable; GTW&SA/ treatment plant hoever, steps should be taken to minimize odor by Operator proper maintenance and housekeeping of the treatment plant 2.8 Odor • If the treatment plant is not propery • The treatment plants should be properly operated and GTW&SA/ operated and maintained, the odor maintained. Operator might be generated. • To prevent the spread of odor, the plantation of trees surrounding the plant should be done.

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