VZCZCXRO1626
RR RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN
RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTI #0161/01 0601659
ZNR UUUUU ZZH
R 291659Z FEB 08
FM AMEMBASSY TIRANA
TO RUEHC/SECSTATE WASHDC 6767
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS SECTION 01 OF 02 TIRANA 000161 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR EUR/SCE 
DEPT OF JUSTICE FOR OPDAT, ICITAP 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM KV AL
 
SUBJECT: THIS WEEK IN ALBANIA, FEBRUARY 23-29, 2008 
 
¶1.  (U) The following is a weekly report prepared by Embassy 
Tirana's local staff to provide political and economic context and 
insight into developments in Albania. 
 
---------------------- 
POLITICAL DEVELOPMENTS 
---------------------- 
 
¶2.  (U) The Honeymoon is Over: It was to be expected, but perhaps 
not so soon.  Chairman of the Socialist Movement for Integration 
(LSI) Ilir Meta pulled out of the minority coalition led by 
Socialist Party (SP) Chairman Edi Rama in a public declaration this 
week.  He quickly presented a request to officially register a new 
political movement, the left-wing Coalition for Integration, calling 
on other minority parties who are dissatisfied with Rama's 
leadership to join his new political umbrella. 
 
¶3. (SBU) In response, Rama called for unity.  However, he had 
recently refused several of Meta's requests for power sharing, 
producing a foe who turned immediately to courting Rama's rival, 
former SP Chairman Fatos Nano.  Nano, who has maintained a low 
profile since being ousted as party chairman in 2005, still commands 
a broad base of political support in the SP, including the public 
support of several opposition Members of Parliament.  (Note: Several 
of these MPs broke with the SP last summer to support Nano's 
nomination for president over Rama's objections). 
 
¶4. (SBU) Meta's new coalition could find support from this 
disaffected group of MPs and others from smaller parties in the 
opposition coaliation, as disenchantment grows with Rama's 
leadership style and focus begins to turn to the 2009 national 
elections.  However, it is too early to predict success for Meta. 
What is certain is that Meta's break complicates the current debate 
on electoral reform, which Prime Minister Berisha hope conclude 
by the end of %-------------- 
 "From mQ QABQCQAQA @(C(@(G(Q Q(Ere was no honeymoon." 
 
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--------------------- 
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¶5.  (U) Bad Year, With Mixed Results: This week the Ahbanian Power 
Corporation (KESH) announced its 2007 annual performance results. 
Despite a difficult year, including a severe drought and prolonged 
power shortages, KESH managed to meet and even exceed targets set by 
international donors.  Results for technical and non-technical 
losses (36.4%), as well as the collection rate (90%), marked their 
best performance in 10 years.  This is an impressive feat for a 
company that paid almost $300 million last year for electricity 
imports when it couldn't meet domestic demand, a crisis which has 
plunged the company into dire financial straits just before the 
expected privatization of its distribution arm later this year. 
 
¶6.  (U) While most observers agree that KESH Director Gjergj Bojaxhi 
has done the best he can to manage a bad situation at KESH, 
Albanians remain frustrated by ongoing electricity problems.  Supply 
remains a serious issue, with no solution likely in the short term. 
Efforts are underway to improve the situation, including 
diversification of power generation sources and the installation of 
an electricity meter in every household and business to improve 
collections.  Recent increases in domestic electricity tariff prices 
will bring KESH closer to meeting its costs for expensive imports. 
Finally, the privatization of the KESH distribution arm within 2008 
is expected to further improve management of the distribution 
sector, which represents more than 90% of the company's total losses 
(both technical and non-technical).  In the end, only a solid 
commitment by the government to implement comprehensive reform will 
upgrade Albania's malfunctioning energy sector. 
 
¶7. (U) Albania and the Olive Trees: It's unclear if Thomas Friedman, 
author of "The Lexus and the Olive Tree" knew about olives in 
Albania, though the country is mentioned several times in his famous 
bestseller.  During the early 1990s, Albanians did their best to 
expunge their communist heritage, including demolishing almost 40 
percent of the country's then supply of 5 million olive trees, a 
legacy of collectivist agriculture. 
 
¶8. (U) Fifteen years later, the situation is far more optimistic. 
 
TIRANA 00000161  002 OF 002 
 
 
New plantings are taking place, with 200,000 trees planted last year 
alone.  Encouraged by a government program that subsidizes 50 
percent of the cost of the seedling, Albania's olive trees have 
rebounded to total 4.5 million.  Private investment in processing 
plants has increased production, while efforts by the Alimentary Oil 
Association have increased quality.  Members of this association are 
actively looking for new markets, domestic and foreign, while prices 
for Albanian olive oil are on the rise in international markets. 
Though much remains to be done, the future of olive oil production 
in Albania is brighter now than in many years. 
 
--------------------- 
EDUCATION AND CULTURE 
--------------------- 
 
¶9.  (U) Skipping School or Dropping Out?:  In the streets of the 
capital city, young children sell cigarettes, nuts, and other 
knick-knacks to strangers sipping coffee in the sunny outdoor cafes. 
 These kids are forced or encouraged by their parents or guardians 
to cruise the streets during school hours instead of heeding the 
government's call for mandatory education.  Their families are 
usually among the poorest in Albania, and the childrens' income 
helps put food on the table.  The number of children on the streets 
has increased in recent years, while drop-out rates have officially 
remained the same. 
 
¶10.  (U) It's not always fun, or comfortable, to attend school in 
Albania.  Particularly in the rural villages where basic 
infrastructure is inadequate and schools lack a reliable electricity 
supply, heating and cooling systems, teaching supplies, and 
qualified teachers.  Without a national network of school buses, 
children may have to walk miles to reach the nearest school, only to 
be met with overcrowded and irregularly held classes.  Without 
publicly supplied textbooks, the cost of books and supplies can be 
prohibitive for poor families.  Lacking economic options, these 
families are most vulnerable to making the choice to send their 
young boys abroad or find them jobs that pay "better than 
schooling."  These households are also generally the most 
traditional and least likely to enroll their daughters in school, 
keeping them at home to help with domestic work, or, particularly 
during the teen and pre-teen years, safe from the influence of young 
males.  Children with disabilities have an even tougher time getting 
an education in this system, which is in acute need of resources and 
reform. 
 
WITHERS