The government is proposing changes to how it manages and makes state-owned property available for investment. The proposal includes tiered payment structures based on specific zones, the creation of a dedicated fund for public assets, and a provision allowing investors to acquire adjacent state-owned properties without undergoing a competitive bidding process, Monitor reported on Thursday.

These provisions are outlined in the draft law "On Investments in the Republic of Albania," which was released for public consultation on October 21. The draft is intended to replace both the Law on Strategic Investments and the Law on Foreign Investments.

Article 14 classifies the territory into three categories: zones with high, medium, and low development potential. This classification will be approved by the Investment Promotion Committee, based on a proposal from the Albanian Investment Development Agency (AIDA).

Depending on this classification, Article 16 stipulates that state-owned properties will be made available subject to a tiered payment structure: Zone 1: 100% of the determined value; Zone 2: 50% of the determined value; Zone 3: At a reduced fee."

The value shall be determined in accordance with legal provisions, while the methodology and terms for making the properties available shall be approved by a decision of the Council of Ministers. The draft law does not specify the exact amount of the reduced fee for the third zone. Another change is the establishment of an Investment Promotion Fund, which will include state-owned real estate located in areas with development potential.

Article 21 provides for the inclusion of state-owned assets - of “any category or type” - currently under the administration of public institutions, which may be made available for projects in accordance with applicable legislation. Prior to their inclusion in the fund, these properties must undergo identification, inventorying, legal verification, and consolidation. A list of these properties will be published on the AIDA website.

The draft law further stipulates that “sector-specific legislation regarding state-owned assets shall apply, except where this law provides otherwise.”

Another provision allows private investors to request the use of state-owned properties that are adjacent to their own assets. According to Article 15, in cases where state-owned property is required for access, infrastructure connectivity, or the operation of an investment, the requested area may not exceed 20% of the private property. “In such cases, these assets may be made available to the investor without a competitive procedure,” the article stipulates, requiring certification of the legal status from the Cadastre and full payment of the property’s value in accordance with the relevant methodology.