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Increasing road costs without feasibility studies is bankrupt

2024-08-16 13:12:14Pikëpamje SHKRUAR NGA IRENA BEQIRAJ

Increasing road costs without feasibility studies is bankrupt

In the article "The government adds 260 million euros to the bill for Tirana-Durrës, Tirana-Ndroq-Plepa and the Bypass of Elbasan" published in Kapitali.al, journalist Klodian Tomorri Tomorri shows that for two of these axes the costs have increased twice.

For all three of these road axes, there were feasibility studies carried out 10-12 years ago, so the Ministry of Finance very rightly hesitated to accept the arbitrary increase in costs, requesting that the feasibility studies for the works be redone. This is because the increase in costs could make some of the projects unfeasible and unsustainable.

But let's refer to a calculation based on the total value invested in infrastructure and the current value of the capital stock in Albania, from which it turns out that the average depreciation of Albanian public works is about 20 percent. The depreciation rate for public works in the world ranges from 4.25 percent to 10.4 percent.

The level of amortization of infrastructural works, significantly 2 times higher, shows that the money is spent on investments where the costs are high, which are performed poorly, and which turn out to be unstable.

Ministers can get in the car and appear as chief engineers of field inspections. Inspections are the simplest thing to do, they don't need any thought or skill, but unfortunately they do not ensure the long-term sustainability of the projects, where money from the budget of a poor country is poured "without account".

Involvement in politics in a dilettantish way without commitment or real knowledge is dangerous, but decision-making in the absence of feasibility studies is bankrupt.


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