Planed PPP concessionary costs on taxpayers, 2018-2023

Open Data Albania is looking into the state budget costs for Private Public Partnership  concessions (PPP) covered by public funds for the period 2018-2023. The article identifies the planned payments year after year; and provides an overview of progress made through the years by concessionary companies. This investigation is based on the Budget Report accompanying the Annual Budget Law. The six-year period (2018-2023) under review takes into account the total annual payments planned by public funds for the PPP concessionary contracts active in this period. The payments planned for 2018; 2019; 2020 were taken respectively from: Budget Report for 2018; Budget Report for 2019; Budget Report for 2020; while the payments planned for 2021; 2022 and 2023 are taken from the 2021 Budget Report. The total cost to the State Budget for covering the payments planned for the PPP concessionary contracts for the last 6 years is estimated to be 81 831 984 000 (eighty-one billion; eight hundred and thirty-one million and nine hundred and eighty-four thousand) ALL; or 662 071 068 (six hundred and sixty-two million and seventy-one thousand and sixty-eight) Euro. The State Budget for 2018-2023 contains 15 PPP concessionary contracts to get budget support. Most of these contracts are active for the entire period; while 4 of them are not. Payments for these 4 contracts might have been already planned for the first years only; and their term ends before 2023; or they may have already started after 2018.

If we look at the performance over the years; the highest payment is planned for 2022; i.e., an amount of 15.39 billion ALL.

Data: MFE, Report on the State Budget for 2021, downloaded on 21.12.2020
Processing and Analysis: Open Data Albania

Looking at the planning by concessionary contracts or companies; we notice that the company Gjoka 97 marks the most voluminous contract for the Construction and operation of Arbri Road for an amount of 16.53 billion All planned for 2018-2023. It is followed by SaniService; which implements the contract for the provision of customized sets of surgical instruments; single-use sterile medical supplies for surgical rooms; and by S2 Albania; which implements the Customs Scanning Service. Both of these contracts are active for the entire period and are accompanied by costs to the state budget over the 6 years under review. The two above contracts account each for about 12% of the total envisioned for budgetary payments for the implementation of PPP concessions.

Data: MFE, Report on the State Budget for 2021, downloaded on 21.12.2020
Processing and Analysis: Open Data Albania

Other PPP companies according to planned budget support for 2018 – 2023 include: Integrated Energy BV SPV 7.47 billion ALL; Laboratory Networks 6.92 billion; 3P Life Logistic 5.25 billion ALL; Albania Highway Concession planned value 3.7 billion ALL; Dia Vita planned value 4.47 billion ALL; Integrates Technology Waste Treatment Fier planned value 3.76 billion ALL; Education Infrastructure Tirana 4.64 billion ALL; Concessionary Company Orikum Llogara Road 2.9 billion ALL; Bardh Construction 1.46 billion ALL; Albatek Energy 2.03 billion ALL; Devoll Hydropower 2.95 billion ALL; G2 Infra for which there is no planned value.

An analysis of the planned total payment shown an increasing trend over the years; especially in the first years. This shows that the cost faced by the state budget is on the rise every year.

Data: MFE, Report on the State Budget for 2021, downloaded on 21.12.2020
Processing and Analysis: Open Data Albania

The Concessionary Register prepared by the organization AIS; promotor of Open Data for Albania; shows well-structured data and documents for all concessionary companies and concessionary contracts in the country. For each of them; the Register shows records of procurement; establishment of the concessionary company; capital structure; owners and changes to control over their shares; contracts; and the economic and management performance over the years.

Concession and PPP Contracts, in force, data, and Documents on Companies Registered for their Implementation, are published in an easily accessible and well-structured format under the OpenCorporates.al. portal, Concession Register Database. The Excel document of this article contains data and information on the basis of which the visualization is done. This document is easily downloadable and free to use. Other databases of the AIS Organization include; spending.data.al; OpenPocurement.al, and Open Corporates.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: PPP concessionary costs for public taxpayers 2018-2023 Planning
Comment and Analysis: Open Data Albania
Translated by: Etleva Kondakçi