Evaluation method and privatization of public property in the field of hidrocarbons in Albania: An analysis of influencing factors - Economicus

by, Petrit Perhati

Abstract

Most of scholars focusing on privatization view the property appraisal and the appraisal methods as two important factors determining the degree of the success of the privatization process and post-privatization development and management of the subsequent private enterprises. Their role and influence is closely linked to the influence of financial experts, accounting rules, and  the legal framework serving as the basis for the privatization process. In a broader view this study relies on recent studies, scholars, and debate emphasizing the important influence that the process and methods of appraisal of the real estate and public property exert on privatization as
they prepare to undergo the privatization process. The study confirms the important role of the property appraisal and appraisal methods but it looks further and identifies other factors that influence the quality of the appraisal process and methods. Various scholars, however, view the quality of privatization process and the role of privatization in reviving the economy, closely linked to and considerably influenced by factors of managerial nature. From this point of view, as a factor of managerial nature, the evaluation method used for privatization of public assets is viewed to play an important role and exert a considerable influence on the quality of the privatization of the public assets. The focus in this paper is the relationship between the selected method of asset evaluation and the factors influencing and determining the selection of the evaluation methods. This relationship is seen in the context of the privatization of assets in the hydrocarbons sector in Albania after 1990.