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PUBLIC PRIVATE PARTNERSHIP AND CONCESSIONS IN ALBANIA

CONCESSION TREATMENT AGENCY

LEGAL AND INSTITUTIONAL FRAMEWORK

CONCESSIONS TREATMENT AGENCY ALBANIA

Erion Mata

Director Directory of Identification and Promotion of Concessions

PPP Legislative History in Albania
PPPs in Albania have been implemented since 1992, after post-communist period in a large scale and proper principles:  Privatization of enterprises;  Public Procurement Contracts, executed under the law on public procurement no. 7971/1995  Concession Contracts, executed under the law on concessions and participation of the private sector in public infrastructure no. 7973/1995;  Others such as lease, usufruct or other models on property use. Private Public Partnership

Works &Services Contracts Management & Maintenance Contracts Operation & Maintenance Concessions Build Operate Transfer Concessions

Full Privatization

Extent of Private Sector Participation
Low High

Introduction to a new legal framework

The approval for a new legal framework become necessary for provision of: A serious private investment participation on public sector; Transparency, efficiency, non-discrimination and equal treatment of the private sector during the bidding procedures.

Growth of efficiency on public investments.
Creation of a solid base regarding the successful implementation of concession projects.

Competitive dialogue and requirement of potential financial analysis before entering into the project.

Legislative development
On 2006, the ministry responsible for the economy, with the assitence of IFC and local legal consultancy, started to work on a new project which scope was “strengthening of the institutional capacity within the Government of Albania in order to process and award concessions in a transparent and effective manner. • • • Law “On concessions”, no. 9663, dated 18.12.2006 (amended); DCM, No. 27, dated 19.01.2007 “On the adoption of the rules for the evaluation and granting of concessions” (amended); DCM, No. 150, dated 22.03.2007 “On organization and functioning of ATRAKO – Concessions Treatement Agency.

Expectations from the Legislative development



Any concession project is subject to competitive bidding procedures that implies a more efficient construction of the project by the private sector; additional revenue generation by the private sector; creative and innovative solutions to technical problems in the project; faster delivery of the project; life-cycle optimization of the project(integration of design, build, finance and maintenance). Unsolicited proposals coming from the private sector are evaluated in conformity with the public interest, sectorial strategic plans and the best value for money principles. Exemptions from the above rules are applied on national security projects or for short period of time in case an actual concession contract has been early terminated, by the Contracting Authority.





Concept of Concessions

The New Concession Law defines a concession as the agreement between the Private Sector and Contracting Authority and which provides for the terms and requirements, in terms of which the Concessionaire provides an economic activity which would otherwise be carried out by Contracting Authority related to concession project, management contract or other public services. Upon such concept the Private Sector:

• assumes all or substantial part of risks related to such economic activity; • receives a benefit by way of either direct payments paid by or on behalf of contracting authority or tariffs or fees to be charged, received or collected from users or customers or a combination of such direct payments and tariffs or fees.

Eligible Sectors for implementation
• • •

• • • • • • •

(railway system, rail transport services, ports, airports, roads, tunnels, bridges, parking, public transport); Energy generation and distribution of electricity and heat; Water and...
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