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PPP figures in health, how the government is wasting Albanians' taxes

2023-06-14 15:20:45Aktualitet SHKRUAR NGA REDAKSIA VOX
PPP figures in health, how the government is wasting Albanians' taxes
PfP

Public-Private Partnership (PPP) concessions in the health sector year after year are increasing the costs for the state budget and, among other things, are highlighting poorly drafted contracts with unrealistic projections.

The Ministry of Health reported that in 2022 the concession of laboratory services, which is administered by the company "Laboratory Network", was financed with 1.6 billion lek (14 million euros) with a 47 percent increase compared to the funding of 2021 and almost 20 percent more than the original program.

At the beginning of 2022, in the draft budget, the financing of this service was foreseen with 1,360,130,000 ALL, but with a normative act in the middle of the year, the government brought the fund for the PPP laboratory to over 1.6 billion ALL, the amount which was fully disbursed.

In 2021, the Laboratory Network company's revenues, according to the official balance sheet submitted to the National Business Center, were ALL 1.3 billion, while the profit before taxes was ALL 233 million.

The profit rate for the laboratory concession was 19% more than twice the average profit rate in the Albanian market, according to INSTAT.

In terms of profits, PPP contracts are among the most successful businesses in our country. But since their activity is based on budget funds, the high rates of profit show that the government is not administering Albanians' taxes responsibly.

The value of financing for the laboratory concession this year alone increased by 2.4 million euros. "Mother Teresa Hospital Center" has the biggest costs. From the annual budget of QSUT of over 8 billion ALL, 764 million ALL or 9% of the total funding goes to the laboratory concession.

The PPP contract for the laboratories started in 2019 and ends in 2028 with a financing amount of ALL 13 billion without VAT.

The annual value of the financing is 1.3 billion ALL, but it seems that errors in the drafting of the contract will put the state budget in difficulty for additional financing. This danger was also announced by the High Control of the State.

A report of the High State Control found numerous problems in the contract that provides for the provision of laboratory services for a period of 10 years, with a total cost of about 106 million euros, but probably much higher in reality, according to the payments of I did in the second year of the contract./Monitor

PPP figures in health, how the government is wasting Albanians' taxes


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