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Once again about the concessions... What are the contracts that will take the "cake" of the 2024 budget

2023-11-20 12:20:06Biznes SHKRUAR NGA REDAKSIA VOX
Once again about the concessions... What are the contracts that will take the
Arbri Street, the concession that is planned to be paid for in the amount of 3.5 billion ALL from the State Budget

The 2024 budget passed in a 5-minute approval in the Assembly. The opposition among the Flakadanians did not even consider taking seriously the most important economic act for the country in the following year. During this time, the media have broken down the items of the draft budget, who is financed or who receives less from the sectors. But the impact on society, despite the concern raised about what awaits us in 2024, has been almost negligible. More has been heard of the political propaganda of the ruling majority on the social network, than what this project actually contains that will directly enter our pockets.

What has been mentioned the most are the concessionary contracts, which in reality, although most of them are under investigation for the way they are absorbing money from the budget, they all remain active even receiving the highest income from the budget for the year 2024.

What will happen to these contracts?

Fragmented or as a whole, all the contracts of the year 2024 have been brought to attention.

Divided by sector, the highest share of budget payments is occupied by concession contracts in the health sector with about ALL 5.4 billion or 38% of planned budget payments for concessions/PPP for 2024.

Contracts in the road transport sector with about 5.2 million ALL or 36% of the total budget payments. Meanwhile, about 12% of budget payments in the amount of 1.6 billion ALL are planned for the fiscal control sector (vehicle scanning contract), followed by payments in the waste management sector in the amount of 1.2 billion ALL, and the Urban Development sector in the amount of 745 million ALL.

The total weight of all concession contracts and PPP in the Gross Domestic Product is estimated at 30.6% for the year 2024.

The total value planned to be paid by the State Budget for concessionary contracts or PPP with budget support is 14.3 billion Lek or about 136.2 million Euros. This value is for the 11 concessionary or PPP contracts which are active, since there are no budget forecasts for this year for 3 contracts with budget support which have been classified as inactive.

All concession contracts of 2024

Once again about the concessions... What are the contracts that will take the

The construction, operation and transfer of the incinerator for the processing of urban waste of the Municipality of Fier, implemented by the company Integrated Technology Waste Treatment Fier sh.pk By decision no. 134, dated 28.03.2022 of the Special Court of First Instance for Corruption and Crime Organized, the company "Integrated Technology Services" sh.pk and the company "Integrated Technology Waste Treatment Fier" sh.pk have been placed in the property insurance measure "preventive seizure", together with all real and movable assets, owned by and are administered by the Seized and Confiscated Assets Administration Agency.

Construction, operation and transfer of the incinerator for the processing of urban waste of the Municipality of Elbasan, with the implementing company Albtek Energy sh.pk The Seized and Confiscated Assets Administration Agency has in administration the company "AlbTek Energy" sh.pk, seized by decision no. 484 dated 13.12.2021 of the Special Court of First Instance for Corruption and Organized Crime. Also, if we refer to the annual reports of the Energy Regulatory Body, it turns out that only in 2020, 2,763,300 KW of energy was produced from this incinerator, while for other subsequent years, there is no production, despite the fact that the plant was built.

Design-Construction-Financing and Maintenance of the Milot-Balldren road segment with implementing company Bardh Konstruksion sh.pk In the MFE Report for 2021, the Ministry of Infrastructure and Energy in the capacity of the Contracting Authority has notified the company "Bardh Konstruksion" sh.pk. pk, for the termination of the concession contract as a result of non-fulfillment of the terms of the concession contract/PPP by the Concessionaire Company and the Concessionaire, provided for in Article 7 "Non-fulfilment of Preconditions" as well as in point 4.2 of Article 21 " Financial Closing". For this contract, 3.1 million Lek have been paid by the State Budget for the 2021 budget year.

Active contracts

As for the other 11 active contracts, the biggest weight in the budget payments is occupied by the contract for the Construction, Operation and Maintenance of Arbri Street with implementation company Gjoka 87 sh.pk. For the year 2024, for this concession, it is planned to pay a value of 3.5 billion ALL from the State Budget, thus accounting for about 25% of the total budget payments planned for PPP concessions with budget support.

The second contract with the highest weight in the state budget planned for 2024 is the PPP concession contract for the provision of medical laboratory services with the implementation company Laboratory Networks sh.pk. For this contract, it is planned to liquidate about 1.85 billion ALL or about 13 % of the fund provided for PPP contracts with budget support.

Meanwhile, for the PPP concession contract for integrated services for the provision of a customized set of surgical instruments with implementing company Sani Service sh.pk, a value of 1.75 billion ALL or about 12% of the total payments foreseen for PPP contracts with budget support is planned.

Another contract which occupies a significant weight in the budget payments planned for 2024 is the contract of the PPP Concession financing, setting up and operating the service of scanning containers and other vehicles in the Republic of Albania with the implementing company S2 Albania shpk, for which are calculated to liquidate about 1.67 billion ALL or about 12% of the total payments foreseen for PPP contracts with budget support. For this contract, there was a decrease in payments for the year 2023 due to the return of the normal payment schedule for this contract. During the year 2022, in addition to the annual payments, other payments were made in installments stemming from the new negotiation process of this contract in 2021, in order to cope with the impact of the consequences caused by the situation of the COVID-19 Pandemic.

Meanwhile, for the Concessionary/PPP contract for the construction of the landfill, the incinerator and the rehabilitation of the existing landfills in Tirana, implemented by the company Integrated Energy BV SPV sh.pk, about 1.27 billion lek are expected to be paid from the State budget, with an increase of about 19.2% from the year 2023.

About 976 million Lek for the year 2024, or 7% of the total planned payments, are planned to be liquidated for the Design-Construction-Financing and Maintenance contract of the yacht port-Orikum-Dukat road segment implementing company Rruga Llogara Orikum sh.pk.

For the other two contracts in the health sector, specifically the PPP concession contract for the package of basic medical check-up services for the 35-70 age group with implementing company 3P Life Logistic sh.pk, the estimated value to be liquidated is 876 million Lek and for the PPP Concession contract for the provision of hemodialysis services with implementing company DiaVita sh.pk, the estimated value to be paid from the state budget is 920 million Lek.

Meanwhile, for the PPP concession contract for the construction, improvement, use and maintenance of the Milot-Morina highway, with the implementing company Albanian Highway Concession sh.pk, it is planned to liquidate 738 million Lek for the year 2024.

For the PPP concession contract for the Improvement of the Educational infrastructure in the Municipality of Tirana "For the Design, Financing, Construction, Furnishing, Maintenance, Supervision and Inspection of five educational facilities in Tirana Zone 1 and for 4 educational facilities in Tirana Zone 4", are planned funds in the amount of 745 million Lek or about 5% of the total payments foreseen for the contracts with budget support.

As for the PPP concession contract for the construction, operation and maintenance of the integrated port 'Triport Vlorë' with the implementing company Vlora Harbor Construction and Maintenance, there are no planned payments. According to Article 28 of the Concession Contract, the source of the concessionaire's income will be provided by the income of the State Budget, in the form of availability payments, in the amount of 59,290,537 Euros throughout the duration. These availability payments will begin to be paid by the State Budget after the complete construction and final delivery of the facility. For this reason, there is still no forecast of the value of payments by the state in the Draft Law for the Budget of the Year 2024.

The data has been compiled from Open Data, obtained from the 2024 Budget Bill, published by the Ministry of Finance and Economy.

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