IFC ActivitIES
IFC ADVISORY TO PRIVATE SECTOR CORPORATE ADVICE Corporate Governance (CG) aims at improving the current state of corporate governance (CG) in companies in Albania, build the capacities of key stakeholders (board members, management, shareholders, financial institutions), and raise public awareness about the benefits of good corporate governance. Corporate Governance Projects in ECA region (369, 300 USD) Phase 2 of the CSEBB CG Project will further activities that capitalize on the demand created by the first phase of the Project and will focus on the private sector clients and public sector partners. The first objective is to use this amended methodology to assess the governance of selected companies and suggest improvements. Implementation of the improvements of the selected pilot companies will be outsourced to external consultants managed by the country team (i.e. the project officer). The intended development result is for companies to introduce better CG practices so that they can improve their organization and can become more attractive to investors and other business partners. The project will focus to work with strong companies that are not listed and will be listed in the near term (Tirana Stock Exchange is not yet active), but which have the strong potential to provide a strong demonstration of the value of improved corporate governance to their markets by attracting significant outside investment, including investment from IFC. The second objective is to work with market institutions. It is understood that working with companies in a vacuum is insufficient to ensure that the demonstration effect intended through company work is successful. By supporting and assisting in the continued development of business associations, educational institutions, self regulating bodies and even state regulatory bodies are essential. Moreover, the formal and informal communication amongst the various market players are a significantly powerful instrument that can help ensure the success of corporate governance efforts at the company level. Working with these various institutions addresses the real nature of their authority in the market and the strong role they play in business development in Albania. By supporting these institutions, the Project assures itself of an established successor and an institutional promoter of good corporate governance practices in Albania. Objective three is to promote the benefits of the stock markets and the tangible business benefits of improved corporate governance. Preparing companies for possible listing and encouraging the same among client companies is a mean to develop the companies’ corporate governance with an eye on the goal of listing. This will prepare companies for the real expectations of the market – and simultaneously promote the benefits of corporate governance to the market via the press or through shareholder reaction to corporate governance improvements.
Contact Points Team Leader
Oliver ORTON oorton@ifc.org
Project Officer at Tirana Office
Sonila Bicaku, Tel: 355-42-231 401; Fax: 355-42-231 260 e-mail: sbicaku@ifc.org
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