The government is failing to monitor PPP concessions

2022-11-14 08:43:47Biznes SHKRUAR NGA REDAKSIA VOX

About 228 concession contracts are currently being implemented in all sectors, but the government has admitted that it does not have the ability to control their implementation.

A few days ago, the Ministry of Finance published the Concessions Monitoring Report (legal obligation), but out of 228 PPP contracts, it managed to report progress on only 65 contracts. Even for all 65 contracts, the reporting was incomplete.

The Ministry of Finance did not report the status of the works according to the payments given by the state budget for contracts in the transport sector (roads) and incinerators, while other important elements of the contracts remained completely intact.

"For the year 2021 in the Republic of Albania, there are 228 signed concession/PPP contracts. Based on the reports made so far by the Contracting Authorities, 65 Concession/PPP Contracts are described in this report, which are included in the Transport, Energy, Urban Development, Economic Development, Fiscal Control, Environment and Health sectors.

The report has formally monitored only 28 percent of the contracts, while the Ministry of Finance in the summary of the report let it be understood that the monitoring process has weaknesses, giving the relevant arguments.

"Since the monitoring process is still in its infancy, the number and complexity of concession/PPP contracts in Albania is high, as well as not every contract has a Project Implementation Unit responsible for its monitoring, the collection of information has encountered constant difficulties and therefore this report will convey information about 65 concession contracts/PPP" clarified the Ministry of Finance.

Finance further clarified that they have continuously and persistently asked the Contracting Authorities for maximum commitment and responsibility in order to ensure a more effective, comprehensive and transparent monitoring process, in accordance with the provisions of the law "On Concessions and Public Private Partnerships". changed.

The Ministry of Finance and Economy during the year 2021 has given recommendations to Contracting Authorities in order to take measures on their part to improve performance in the provision of services and public works, subject of concession contracts, their area of ??responsibility, as well as to minimize or the elimination of direct and indirect risks affecting the state budget.

Also, each Contracting Authority has been asked to set up monitoring structures for each concession contract even when the specific contract does not define such a structure, in order for the information reported to the Ministry of Finance and Economy to be complete, comprehensive and in accordance with the legal provisions.

Earlier, confidential sources from the Ministry of Finance claimed that the Contracting Authorities are not managing to control the concessions if they are performing the activity according to the contract, due to the lack of reporting from the relevant institutions, especially after the SPAK investigation was launched for some of them.