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Tirana's non-existent incinerator "swallows" 20% more money/ Payments increase in 2024

2024-08-22 09:34:00, Aktualitet CNA
Tirana's non-existent incinerator "swallows" 20% more money/
Tirana incinerator, CNA source

The budget funds planned for 2024 with the destination of support from the state budget for concession contracts/PPP, according to the annual budget plan 2024 with changes, are in total about 14.15 billion ALL.

Of these, about ALL 5.89 billion are investments and about ALL 8.26 billion are current expenses.

The Ministry of Finance in a special analysis of the implementation of the 2024 budget estimated that compared to the actual annual payments in 2023, which reached the value of about 12.66 billion ALL, the planned payments for 2024 are about 1.49 billion ALL higher or about 11.8 % more, specifically as a result of:

– The highest payment schedule 2024 for the contracts 'Improvement, Construction, Operation and Maintenance of Arbri Road' and 'Improvement, Construction, Operation, Maintenance of the Road Yacht Harbor – By Pass Orikum – Dukat (Saint Eliza Bridge)' , in reference to the payment schedule in the approved financial models, an integral part of the two respective concession contracts.

-The highest payment plan for 2024 for the contract "Construction of Landfill, incinerator and rehabilitation of existing landfills in Tirana and electricity production". The incinerator of Tirana, a work that does not exist and the process is under investigation and seizure by SPAK, will be financed this year by the taxes of Albanians with 1.27 billion lek or 20% more (12 million euros) than in 2023 .

Tirana's non-existent incinerator "swallows" 20% more money/
Tirana incinerator, CNA source

The Ministry of Finance reported that in the 5th month of 2024, the actual payments for the concession contracts result in the amount of about 4.65 billion ALL or 32.9% of the planned annual payments in 2024, according to the plan with changes. Compared to the same period in 2023, they are about 705.8 million LEK higher or 18% more, which refers to higher payments specifically for:

The "Improvement, Construction, Operation and Maintenance of Arbri Street" contract, where the increase in the 2024 annual payment plan has also brought higher realization as 5M and the "For the improvement of the educational infrastructure in the Municipality of Tirana" contract (Lot 1 and Lot 4) )", as a result of the earlier payment of the annual fund for 2024, by MAS.

Tirana's non-existent incinerator "swallows" 20% more money/

Pursuant to Article 4/2 of the Organic Budget Law, the total amount of annual payments made by general government units (GGUs), which result from PPP contracts, as a rule, should not exceed the limit of 5% of actual tax revenues of the previous budget year.

The allowed limit of net payments for PPP contracts for the year 2024, of 5% of the actual tax revenue of 2023, is estimated at about LEK 29.9 billion. The 2024 payment plan for PPP concession contracts, reported by the relevant Contracting Authorities, constitutes 2.36% of the total actual tax revenue 2023, respecting the fiscal rule of 'not more than 5% of the actual tax revenue of the previous year' .

Most concession contracts with budget support are under investigation by SPAK for high costs and violations of rules and laws./ Monitor.al





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