PPP companies with budgetary support by their controlling package in the Albanian or Foreign Trade Register

Open Data Albania is investigating PPP concessions with public financing from the state budget for 2021, identifying those that have stock control packages abroad. This investigation makes use of the data about the companies responsible for implementing PPP concessionary agreements and contracts, information published on the Open Corporate Albania portal, under the Concessionary Companies section. For each company, the portal shall identify which business register the shares and capital owner is registered, identifying also the origin of the controlling package. The article focusses only on the PPP companies that are supported with public funds during the current year 2021.  In 2021, according to the Explanatory Report of Law No. 137, the 16.12.2020 ‘On the 2021 Budget’, 13 (thirteen) PPP concessions are to be covered by public funds. The total value envisioned for support of concessions from public funds for 2021 is 14 432 692 000 (fourteen billion and four hundred and thirty two million and six hundred and ninety-two thousand) ALL, or converted to euros, about 116 769 352 (one hundred and sixteen million and seven hundred and sixty nine thousand and three hundred and  fifty two) Euro.

Five out of thirteen PPP contracts with budgetary support in 2021, are implemented by companies that have registered owners abroad for more than 51% of their capital. They are: Sani Service (Kosovo; Italy); S2 Albania (California; Albania); Integrated Technology BV SPV The Netherlands); Laboratory Neworks (Albania; The Netherlands; France), and DiaVia (Sweden).

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

The report shows 5 companies with foreign owners and 7 companies owned by individual owners or Albanian companies. If we look at the budget funding values going to these contracts in 2021, it turns out that 6 731 045 000 leks (six billion and seven hundred and thirty one million and forty-five thousand) ALL are destined for concessionary companies  owned by registered partners (majority) in Trade Registers abroad. The rest of 7 701 647 000 ALL will finance PPP concessionary contracts, which are implemented by companies operating in, and owned by individuals or companies registers in national business registers.

In terms of the level of financing, Gjoka 87, the company implementing the Contract for Arbri Road, is the largest financed contract. The company’s shareholder is Gjoka Konstruksion, with a controlling package fully registered in the Trade Register of the Republic of Albania.

The second largest contract, in terms of financing, is SaniService. This company has four business entities that own it, namely namely Investital 40% of the capital, a company registered in the Trade Register of the Republic of Kosovo; Servizi Italia, whose 30% of the capital is owned by a company registered in the Italian Trade Register; Tecnosanimed with 15% of its capital owned by a company registered again in Italy, and U.JET with 15% of the capital owned. This company has a fully foreign capital control package. The company’s profits are transferred abroad.

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

The company S2 Albania implements the contract for financing, establishment and operation of the scanning service of vehicle containers in the Republic of Albania. Even this company has a foreign capital control package, as 51% of its capital is owned by the Rapiskan System INC, a company registered under the trade law in California USA. The other owner is an Albanian company, ICMS.

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

Integrated TechnologyBV SPV company, which implements the PPP contract for the construction of the Landfill, Incenerator and rehabilitation of existing Tirana deposits, and electricity production is entirely owned (100%) by a company registered in the Netherlands, namely GeoGenixBV.

Laboratory Networks is also a concessionary company that implements an important contract in the health sector, funded by the state budget. This company implements a concessionary contract for providing the Laboratory Service of regional and local hospitals. This company capital is owned by  lbofarma KP (41.7 %), a company registered in the Albanian business register; AB Laboratory Solution BV (33.3%), which is the former Orinoco Menera Mineral Resources, a company registered in the Netherlands, and by ExaLab Society (25%). ExaLab is a company of the French trade regime. Even for this company or concessionary contract, we can say that the main share of capital is owned by foreigners. Therefore, a part of the profits is destined to be transferred abroad.

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

Data: Open Corporates Albania
Processing and Analysis: Open Data Albania

The PPP contract forthe medical checkup of the population aged 35-70 is implemented by the business company 3P Life Logistic. The two owners of this company are also two companies registered in our trade register, namely  Marketing Distribution dhe TRIMED. Even their owners are Albanian nationals.

The contract for the construction and maintenance of Milot-Morine Road is currently implemented by the company Albanian Highway Concession currently owned by two Albanian companies, Salillari and Kastrati Group. Earlier, there were three other partners in founding this company, including Catalyst Viva Das General Consulting LLc with 40% of the quotas and headquartered in the United Arab Emirates; BeeTech with 10% of the quotas and headquarters in Greece; and Violap Ateve with 10% of the quotas and headquartered in Greece. In 2017, the foreign partners sold their quotas one after the other, leaving the company ownership to the two Albanian companies, Kastrati and Salillari. The documents and descriptions of such changes over the quotas are accessible in the database of concessionary companies in the OpenCorporates.al portal.

The Hemodialysis service is a concessionary contract implemented by DiaVita company, which is entirely (100%) owned by the Swedish-registered company (business registry in Sweden), under the name DiaVerum International AB. The controlling package for this company is currently abroad, where profits are also transferred. Previously, this PPP DiaVita company was  owned by the American Hospital and Evita, which have transferred their ownership by selling their quotas.

Integrated Technology Waste Treatment Fier  is the company that implements the concessionary contract for building and managing the Urban Waste Treatment Facility in Fier Region the production of energy. This company is owned by two Albanian companies, namely the Integrated Technology Services (70%) and Patos Assembly and Construction (30%).

The project to improve the educational infrastructure in Tirana is also a project that is implemented by two companies, which are also owned by Albanian companies. That is, the Concessionary Company Z.M.A and the concessionary company Tirana 4. The first one is owned by three partner companies, namely AGI KONS (86.95%); MET-Engineering (12.9%), and Zeni-06 with 0.15%. While the other company, the Concessionary Company Tirana 4, is owned by Alba Construction (39.53%); Fusha 32.13%; Ed Construction (16.32%); Son Engineering & Construction (1.3%), and A&G Engineering shpk (0.56%).

The concessionary company Orikum-Llogara Road is entirely (100%) owned by the local company Gjikuria.

Simlarly, the company Bardh Konstruksion, which implements the concessionary contract for the construction and maintenance of Milot- Balldren road segment, is owned 100% by the local society A.N.K.

Even the company implementing the concessionary contract for the construction and management of Elbasan Regional Waste Treatment Plant is owned by an Albanian national, Stella Gugallja.

For each concessionary company operating in the country, there is a profile available in Open Corporates Albania portal, providing well-structured information and Partnership Concession documents. Passport profiles are presented under the Concessionary Companies category. The collection and publication of the information dates back to 2014. Other business company profiles have also been published in the same database.

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 companies with budgetary support by their controlling package in the Albanian or Foreign Trade Register
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Translated by: Etleva Kondakçi