Concessions and Public Private Partnerships (PPP) planned in 2022

Open Data is researching new government plans for Concessions and Public Private Partnerships PPP for 2022. The data were obtained from the Ministry of Finance and Economy from the Draft Law on Budget 2022, which was sent for approval to the Assembly.

Seven new Concessions or PPPs worth about ALL 214.5 billion or EUR 1.75 billion are planned for 2022, thus constituting about 11% of the projected GDP for 2022.

“Source: Ministry of Finance and Economy, Draft Budget Report 2022
Edited by: Open Data Albania

“Source: Ministry of Finance and Economy, Draft Budget Report 2022
Edited by: Open Data Albania

According to the Sector, the new PPP concession projects planned include 4 in the Transport sector (road, sea and air) with a total value of ALL 208.4 billion, while the other 3 PPP concessions are in the urban development sector and have a value in total of 6.09 billion ALL.

“Source: Ministry of Finance and Economy, Draft Budget Report 2022
Edited by: Open Data Albania

Two of these PPP concession contracts have already been confirmed with support from the state budget, and one is privately funded. For the other four contracts there is still no information on what the form of financing will be. Specifically, projects with support from the state budget, are planned to be the concession for the construction, operation and maintenance of the integrated port Triport Vlora and the concession for the improvement of road and recreational infrastructure of blocks of housing in some neighborhoods of the city of Elbasan.

“Source: Ministry of Finance and Economy, Draft Budget Report 2022
Edited by: Open Data Albania

For two of the planned projects, during 2021, calls for tender were made, specifically for PPP concessions’ For the design, construction, operation and maintenance of Saranda Airport ‘and’ For the construction, operation and maintenance of the integrated port of Triport Vlora.

From the data of the Competitive Procedure Document, the PPP concession for the construction and operation of Saranda Airport is a proposal solicited by the Ministry of Infrastructure and Energy and is a contract in the form of Construction, Operation and Transfer (BOT). The source of financing for the construction of this project will be Private Investors and the project has an estimated duration of 35 years.

The PPP Concession for the construction, operation and maintenance of the integrated port Triport Vlora is an unsolicited proposal by the Ministry of Infrastructure and Energy and is a contract in the form of Construction Operation Transfer (BOT), with a duration of 10 years. From the data of the Competition Procedure Document, the investment will be made initially by the concessionaire while the source of the concessionaire’s income will be provided by the revenues of the State Budget, in the form of availability payments. These availability payments will start to be paid from the State Budget after the complete construction and final delivery of the facility, but in any case not earlier than 2025. For this reason there is still no estimation of the value of payments by the state in the MTBP of 2022-2024.

On November 1, 2021, the winner of this PPP concession is announced, which is the Provisional Union of Companies AGBES CONSTRUKION sh.p.k.; BESTA sh.p.k.; Premium Construction & Maintenance sh.pk; ITE Grup sh.p.k., and ARKONSTUDIO sh.p.k.

Other projects planned in the field of transport are PPP concessions, for which there is still no information whether they will be only with private investment or even with budget support, including:

• For the construction of the road segment Milot Fier on the Adriatic Ionian Highway, with a total value of 178.2 billion Lekë;
• Concession or PPP of the Infrastructure of the database and supervision of the technical control centers of road vehicles with a total value of 20.95 billion ALL.

While in the urban development sector the following projects are planned:

• For the provision of the Public Key Infrastructure service PKI with a total value of 208.8 million ALL.
• Increase of Road Safety, worth 5 billion ALL.
• For the improvement of road and recreational infrastructure of residential blocks in some neighborhoods of the city of Elbasan worth 822 million ALL.

For the concession / PPP For the improvement of the road and recreational infrastructure of the residential blocks in some neighborhoods of the city of Elbasan, the budget support in the Draft Budget of 2022 for the Municipality of Elbasan is planned. According to the Report of the Municipality of Elbasan on the approval of the Preparatory Ceilings of the MTBP Expenditures 2022-2024, in the program ‘Rural Road Network’, in the category ‘Current Expenditures’ for the period 2022-2024 are planned payments for the PPP concession of the Project of Improving the road infrastructure and recreation of residential blocks in some neighborhoods of Elbasan, specifically in the amount of 156 billion for each year from 2022, 2023 and 2024, money which will be paid by taxpayers of the city of Elbasan.

New planning in PPP concessions also means an increase in contingency liabilities of the Albanian state budget.

You can find more research articles on Concessions and PPPs in this Database, under the Concessions section.

For each business company that implements a concession contract or public private partnership AIS, has created a database of Passports and information according to the standard for Open Business Register, a database that accesses the Portal OpenCorporatesAlbania.

Each concession tender is listed with public data and documents in the Public Procurement Database.

Other AIS databases are spending.data .al; OpenPocurement .al and OpenCorporates .al

This article was drafted and published in the framework of the “Open Data, Access and Transparency over sectors exposed to Risk of Corruption” project. The latter is financially supported by SIDA – Sweden International Development Cooperation Agency

Download excel: 2022 and Concessions, Public Private PPP Partnerships planned
Comments and Analysis: Open Data Albania
Translated by: Etleva Kondakçi