Year 2024, the Albanian government launches 6 new concessions with support and budget guarantees. What is the value?

2023-11-17 11:49:42Biznes SHKRUAR NGA REDAKSIA VOX
One of the concession roads, Kashar-Pezë-Lekaj

6 new Concession/PPP projects worth about 109.5 billion ALL or 1.04 billion Euros are planned for 2024, accounting for about 4.5% of the projected GDP for 2024. Open Data is analyzing the data related to the planning of government news for Concessions and Public Private Partnerships PPP for the year 2024. The data was obtained from the Ministry of Finance and Economy from the Draft Law for the Budget of the Year 2024.

As a result, the percentage of the total value of contracts in the Gross Domestic Product (GDP or GDP) for all existing and planned Concessionary and PPP contracts increases to 30.6% of GDP.

According to the sector, of the new planned PPP concession projects, 4 are in the Transport sector (road and air) with a total value of 104.3 billion ALL, while the other 2 concessions/PPP are in the urban development sector, two Concession contracts in the sector of Educational Infrastructure, Tirana Municipality with a total value of ALL 5.18 billion.

From the official information so far, for 5 out of 6 planned PPP concession contracts, the tender competition has been held and the winners have been announced. For 5 investment contracts, it will be private, but with an anticipated level of income from the state budget as guarantor, and 1 is fully privately financed.

Year 2024, the Albanian government launches 6 new concessions with support and

Concession/PPP Project: Design, construction, operation, maintenance, rehabilitation and transfer of the road segment Kashar-Pezë-Lekaj

For this project, an invitation was announced on February 13, 2023, the temporary merger of the companies "Gjoka Konstruksion" sh.a & "Junik" sh.pk & "Cobial" sh.pk & "Pepa Group" sh.pk & "UDHA" sh.pk. pk & "Geoportal" sh.pk & "A&E Engineering" sh.pk - worth 474,869,965 Euros without VAT. According to the standard tender document, this segment will be subject to payment by road users with an estimated fee of 0.02555 Euro/km. In the standard tender documents published, it is evidenced that the State will be the guarantor for the Concessionaire, if the latter fails to meet the level of the planned initial income. The total estimated value of the Guarantee is 48.5 million Euros, for the entire duration, while the estimated revenue for this concession is 2.23 billion Euros.

Concession/PPP Project: Design, construction, operation, maintenance, rehabilitation and transfer of the Milot-Thumane road segment

For this project, on 13.02.2023, the offer worth 44,620,189 Euros without VAT was announced as the winner from the temporary merger of the companies "Gener 2" sh.pk, "Illyrian Consulting Engineers" sh.pk and "IDK- Konstruksion" sh.pk According to the data in the standard tender documents, this road segment is planned to be paid by the users, with an anticipated maximum advance fee of 0.04148 Euro/km. The total revenues anticipated for the concessionaire are at the level of around 291.6 million Euros throughout the entire duration. Also, for this road segment, a guarantee of the level of income from the State is foreseen from the first year of operation until 2040, in the maximum value of about 4.57 million Euros.

Project Concession/PPP Design, construction, operation, maintenance, rehabilitation and transfer of the road segment Lekaj-Konjat-Fier

This project will be implemented by the Union of companies "Fusha" sh.pk & "Agbes Construction" sh.pk & "Albavia" sh.pk & "Kupa" sh.pk & "Ante-Group" sh.pk & "Klodioda" sh.pk .pk & "ALTEA and Geostudio 2000" & "Sphaera" sh.pk, announced as winners on 14.11.2022. This segment has an investment value of 320,000,000 Euros excluding VAT. The duration of the concession/PPP contract is 35 years. In total during the years of operation, the company will collect about 1.29 billion Euros from the basic income. Also for this project, a guarantee of the level of income from the State, at the level of about 32.5 million Euros, has been provided.

Meanwhile, during 2021, the tender for the PPP concession 'For the design, construction, operation and maintenance of Saranda Airport' was announced. This project is a proposal requested by the Ministry of Infrastructure and Energy and is a Build, Operate, Transfer (BOT) contract. The source of financing the construction of this project will be the Private Investor and it has an estimated duration of 35 years. The estimated investment value in the 2024 draft budget is ALL 4.22 billion without VAT.

The new plans in PPP concessions, which require the guarantee of revenues from the State Budget, also mean an increase in the contingent liabilities that the Albanian state must face.

 

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