Source of Investment and Ministerial Portfolio for PPP January 2017 – March 2021

Open Data Albania is classifying Public Private Partnership (PPP) Concessions by type of Investment, i.e. supported by the state budget or private parties. The classification is being done for PPPs approved in the four-year period 1 January 2017 to March 2021. Also in this article are listed PPPs according by Head of the Contracting Authority during the period of evaluation, negotiation and signing of concession contracts and PPPs. This research is based on the data identified by the PPP concession contracts, published in the Register of OpenCorporates.al Concessions

In this four-year period, 25 PPP concession contracts with an investment value of 138 037 594 809 ALL or 1 113 206 409 Euros have been finalized. The largest number of contracts was concluded in 2017, namely 11 PPP Concessions, with a total investment value of 24 995 907 081 ALL, or about 201 579 896 Euros.

In 2018, the highest value of a total investment of 66 217 153 290 ALL or 534 009 301 Euro is marked, for 6 PPP concession contracts finalized.

In 2019, 5 contracts with an investment value of 30 872 557 856 ALL or 248 972 240 Euros were approved. In 2020, two PPP concession contracts with an investment value of 3 113 440 242 ALL or 25 108 389 Euros were approved.

During January – April 2021, the concession contract for the design, construction, operation, maintenance and transfer of Vlora International Airport was approved. The signing of the contract was officially announced. The investment value for this PPP Concession is 12 838 536 340 ALL or 104 310 500 Euros.

Public Budget or Private Investment is another important classification indicator. Private investments inject money from investors. In the case of PPP concessions with Public Investments, we again have public finances and taxpayers financing. PPP concessions with private financing 2017 -2020 include eighteen contracts. Severn Contracts with Direct Investment Public Funds have been approved, with an Investment value of 84 623 938 236 ALL or about 682 451 114 Euros. Compared to the total PPPs signed for this four-years period, this represents 61% of investments These investments are being paid continuously from the State Budget. Exceptions include two contracts for Educational Infrastructure known as the Concession Schools Project, where funding is guaranteed by a special Tax Infrastructure tax paid by inhabitants and residents of the Capital City.

Ministerial Portfolio on PPP Concessions. During the period in office (2017-2018), Mr. Damian Gjiknuri, Minister of Infrastructure and Energy, ran the Public Institution Party in PPPs during the time of evaluation and approval for the thirteen Concessions, with a total investment value of 70 139 438 289 ALL or about 565 640 631 Euro. One of these Concession Contracts is with budget support, the one for the improvement, construction, operation and maintenance of Arbri Road, implemented by the concessionary company Gjoka 87 sh.pk, with an investment value of 33 600 000 000 ALL.

During her term as Minister of Infrastructure and Energy (2019 onwards), Ms. Belinda Balluku headed the Institution Party in PPPs during the evaluation and approval of five PPP Concessions, with a total investment value of 43 731 668 196 ALL. Two of these contracts are Concessions with budget support with an investment of 28 515 823 913 ALL, implemented by: Bardh Konstruksion sh.pk, the company contracted for the design, construction and maintenance of Milot Balldre Road segment and Orikum Llogara Road sh.p.k. implementing a concession for the design, construction and maintenance of the road Yacht Port – Orikum Bypass – Dukat, Ura e Shën Elizës). The other three PPP Concessions approved at the time when the Contracting Party Institution was headed by Ms. Belinda Balluku are financed by private companies.

During his term in office, Mayor Erion Veliaj has signed two PPPs with an investment of 4 102 552 269 ALL, which are supported by the state budget. Funding is guaranteed by the Education Infrastructure Tax paid by inhabitants and residents of the Capital City.

Mr. Lefter Koka in the capacity of Minister of Environment has approved a Concession (dated 31 August 2017) with budget support 17 121 152 055 ALL. Specifically, the PPP Concession for Construction of the Landfill, Incinerator and Rehabilitation of Tirana Existing Landfills Tirana electricity generation, with the implementing company Integrated Energy BV SPV sh.pk

Mrs. Ogerta Manastirliu, as the Head of the Ministry of Health, has run the Institution Party in PPPs, during the evaluation and approval of the PPP for the provision of laboratory services to university, regional and municipal hospitals, implemented by the concession company Laboratory Networks sh.pk  This PPP is financed from the state budget, in the amount of 1 284 410 000 Lekë.

Mr. Xhelal Mziu as a Mayor has led the institution Party in PPPs during the process of evaluation and approval of the contract for the concession of cleaning, collection, transportation and selection of urban waste for the City of Kamza with the concession company ECO Cleaning sh.pk in the amount of 1 350 000 000 Lekë.

Ms. Anila Denaj has run the Institution of the Ministry of Finance, the contracting party in PPPs for the Provision of Legal Control Service of metering instruments, through fuel and liquefied gas distribution instruments, a PPP implemented by the concession company NOA Inspect sh.p.k with an investment value of 70 000 000 ALL.

Mr. Sokol Dervishaj ran the Ministry of Transport and Infrastructure at the time a PPP was evaluated and approved for the concession of some maritime services, a private investment of 238 374 000 ALL. This contract is implemented by the Maritime Service concession company sh.pk.

From the analysis it is noticed that during the period under review there was a tendency of Heads of Institutions to  Authorize subordinate Officers to sign contracts. The Excel document that accompanies the article contains also data for the signatories.

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: Source of Investment and Ministerial Portfolio for PPP January 2017 – March 2021
Comment and Analysis: Open Corporate Albania
Translated by: Etleva Kondakçi