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Government to cover Vlora Airport concession losses

2022-06-17 17:38:16Biznes SHKRUAR NGA REDAKSIA VOX

Government to cover Vlora Airport concession losses

The Albanian government has guaranteed for 10 years the lack of traffic at Vlora Airport. The guarantee starts from the day the airport starts operating.

This means that if the companies that have received this concession do not achieve the minimum profits from the provision of airport services envisaged in the contract, the Government will make up the difference year after year until the tenth year of the contract.

The guarantee is granted by exploiting the predictions of a 2005 law, which concerns state aid. The law says the government can financially support private companies that are valued of strategic importance and Vlora Airport is involved in objects of strategic importance.

The decision was made on 25 May, but the prime minister's official website has not been published. It was made public this Friday in the Official Journal.

The concession was granted to the three "Mabco Constructions" companies of Behgjet Ii, Turkish "Yda Insaat Sanayi ve Ticaret" and "2 A Group".

"In the event that annual gross income is less than minimum income, the Contracting Authority will pay the Concessionary the difference between the gross annual income calculated by the assessor under Article 11.3 and the minimum income ("Income Guarantee")"" the Government's decision states.

The decision does not specify a budgetary quota limit for the financial guarantee to the concessionaire, arguing that this will be calculated year after year, i.e., depending on the performance of the subject's economic activity, the aid plan can activate state resources.


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