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The South East European Cooperation Process

Meeting of the Ministers Responsible for Energy of the South- East European Countries

FINAL CONCLUSIONS

October 18-19th 2001, Tirana, Albania

Following the suggestion of the Joint Statement of the Ministers of Foreign Affairs of the SEECP in Tirana on May 16, 2001, an Energy Ministers meeting was held in Tirana on October 18 - 19, 2001, within the South- East European cooperation process.

The following representatives of the countries were present:

  1. Mr.Mustafa MUCI, Minister of Public Economy and Privatization
  2. Mr.Dritan PRIFTI, Minister of State for Energy
  3. Mr.Petrit AHMETI, Prime Minister Adviser for Energy
  4. Mr.Edmond HOXHA, Head of the Cabinet of the Minister
  5. Mr.Agim BREGASI, General Director of Electro-energy
  6. Gjergji SIMAKU, Chairman of National Energy Agency
  7. Stavri DHIMA, General Director of Hydrocarbons
  8. Gazmend DACI, Director of Investment Division
  9. Mr.Petar TROJANOVIC, Minister of Economy and Trade,
  10. Mrs. Milica SKORKOVIC, Minister Adviser.
  11. Mr.Vladimir JANKOVIC, Assistant of Director in Electric Power Industry (EPS)
  12. Mr. Nikola CEREPNALKOVSKI, Head of Energy Department and Mining resources.
  13. Mr.Romeo BISCAN, Senior Adviser
  14. Mr.Neculai LICIU, Minister Adviser
  15. Mr.T.Fikret BARAN, Deputy Undersecretary at the Ministry of Energy and Natural Resources.
  16. Mr. Bulent GADA, Head of Division, Foreign Relations Department at the Ministry of Energy and Natural Resources.
  17. Mr.Fuat CELEPCI, Deputy General Manager, Petroleum Pipeline Corporation.
  18. Mr.Cenk PALA, Head of Department, Foreign Relations and Strategies, Petroleum Pipeline Corporation.
  19. Mrs.Yildiz DURUKAN, Head of the Division, Turkish Electricity Transmission Corporation.
  20. Mr.Spyridon VASSOS, Director of Planning of Performance Management, PPC.
  21. Mr. Christos POSEIDON, Director of Energy Management PPC
  22. Mr.Slavtcho NEYKOV, General Secretary of the National Agency of Energy

The following items were discussed:

  • The Electricity Energy Market
  • Coordination of the initiatives in the energy field
  • Projects concerning the energy interconnections
  • Improving the cooperation under the Energy Charter Treaty and the Transit Protocol
  • Improving the legal and political mechanisms with respect to the environment, using energy more efficiently.

During the Conference the participants took note of the following:

  1. They recalled the Declaration of the Zagreb Summit on the 24 November 2000, where the participating countries undertook to establish regional co-operation conventions providing for a regional free trade area;

  2. They recalled also the SEECP action plan for regional economic co-operation agreed at the fourth Summit in Skopje on 22 and February 2001, where the Participating countries reaffirmed that, further liberalization of trade, undertaken also by the countries of the region will better serve their national economies;

  3. They also recalled the Memorandum of Understanding on Trade Liberalization and Facilitations, amended by a Statement of intent by Moldova signed in Brussels on 27 June 2001, which is aimed at open trade regimes supporting the EU integration of the Participating Countries.

  4. They take into account the strategy paper " Transport and Energy Infrastructure in South Eastern Europe", signed and adopted by Working Table II of the Stability Pact in third Meeting June 22/23 May 2001;

  5. On this ground they:

    • Note the importance of the norms and practices if the EU in the energy sector;

    • Recognize the importance of energy trade (electricity, fossil fuels) on the ground of regionally co-coordinated energy systems and services with respect to economic recovery and growth, environmental protection and regional stability,;

    • reaffirm the need for furthering the interconnection of the Participating Countries into the UCTE ;

    • recognize that the envisaged regional electricity market (REM) depends on sharing cross-border responsibility in terms of regional approach to reforms of national regulations, energy industries and pricing policies;

    • indicate the role of national energy policies, institutional reforms and energy planning among the participating Countries as preconditions for the optimal use of resources;

    • feel convinced that these measures will strengthen the region insofar as enhanced scope for the energy sector, based on regionally co-coordinated market oriented sector reforms and appropriate institutional frame works.

    On this ground the importance of the following points was explicitly pointed out:

    1. Joining forces for assuming responsibility on:

      • Identification of common objectives and establishment of mechanisms for regional co-ordination;
      • cooperation with SECI on the regional energy database;
      • Regional co-ordination of investments for generation and transmission;
      • Design of an approach to regionally co-coordinated reforms of national policies, institutions and structures,
      • Identification of demand for support for the reform process,
      • Negotiation and implementation of an advanced strategy contributing to increased harmonization of legal institutional frameworks,
      • Also contributing to the optimization of regional energy capacities in terms of preparation for investments and;
      • Identification of issues inhibiting the development of the REM and proposing measures for their eradication (e.g. the role of ESCOšs, frequency quality, transit fees, Adriatic and other cross-border interconnections, different levels of market liberalization and objectives among countries etc.).

    2. Considering the development of:

      • Harmonized rules on regulation, deregulation and tariff systems;
      • A framework for exchange of experience for improving the energy efficiency and reduction of the energy intensity,
      • An appropriate scheme for investments related to the regional energy markets, including:

        • demand structures;
        • demand forecast, also considering the potential for improved energy efficiency;
        • projected shortcomings of generation, transmission and distribution of electricity;
        • rehabilitation and extension of energy infrastructure;
        • restructuring and strengthening of institutions;
        • advisory support to governments in their efforts to harmonize their energy policies and achieve compatibility with EU standards and practices;
        • interconnection and diversification of the gas network in the participating countries and their need for integration with the EU gas network;
        • development of projects with common interest of all participating countries in the regional oil pipeline systems.

    3. It is important to correlate among each other current projects on energy sector reforms and national energy investment in the light of the intended regional energy market;

    4. It is important to establish a framework to exchange information on steps undertaken to motivate private local and foreign investment in the energy sector;

    5. It is necessary to develop mechanisms for implementing these conclusions as soon as possible.

      To ensure achievement of the undertakings outlined above, it is considered necessary to:

    6. Request Working Table II of the Stability Pact to review progress in the above undertakings regularly and propose measures required to fulfill the provisions of these Conclusions. Working Table II is asked to spread information about related processes in the field of infrastructure and reform;

    7. Call upon the international community to provide technical and financial assistance to facilitate for the participating Countries to meet the above undertakings;

    8. To meet again upon initiative to be taken by the SEECP presidency and subsequently on a regular basis to review progress, to adopt measures to implement these Conclusions and to improve further steps toward energy sector development.