Sterilization PPP nears closure, real cost 53% more than contract

2025-06-23 07:26:00, Aktualitet CNA

At the beginning of next year, the sterilization concession contract with PPP is expected to be closed as a result of the expiration of the term.

Of the approximately 100 million euros that were programmed to finance the sterilization of surgical rooms for 10 years, the real cost of the concession reached over 15.3 billion lek for 2017-2026, or 53 percent more than the projections in the contract between the concessionaire "Sani Service" and the Albanian government.

Sources from the Ministry of Health indicated that the service will be transferred to the state next year, but the final decision will depend on the new government in September.

The contract monitoring group is in the working phase and a final report is being compiled, which will then serve for final decision-making.

In December 2015, the Ministry of Health signed a 10-year PPP contract with the company “Sani Service” for the sterilization of surgical instruments in public hospitals worth 100 million euros. While the concession was awarded, an autoclave invested millions of euros within the QSUT with public funds never worked. In 2018, the cost of sterilization turned out to be 28% higher than planned, forcing the ministry to limit minor surgeries.

In August 2023, SPAK issued 8 arrest warrants for senior officials and concession owners, who were accused of abuse of office, falsification of documents, passive corruption, and violation of equality of participants in competitions.

A few days after the orders, it was discovered that the original contract was missing from the Ministry of Health archive, although SPAK explained that it had obtained an authentic copy from other institutions. The investigation revealed that the feasibility study had been conducted with false data.

The sterilization concession, a PPP agreement financed by citizens' taxes, resulted in an activity of systematic corruption, abuse of power, and state capture.

Most of the concession contracts with PPPs such as incinerators, healthcare contracts, etc. that were presented by the government as innovative have resulted in financial scandals, causing public money to be diverted to private gain instead of improving the healthcare system.

According to the contract signed between the concession company Sani Servis and the Albanian government, sterilization for a complex operation costs 37,700 lek, for an average intervention 22,300 lek, and for peripheral operations it costs 13,900 lek.

All these fees are paid by adding Value Added Tax. Meanwhile, health experts claim that sterilizing surgical equipment with an autoclave would cost much less than the 17 million euros per year currently paid to the concessionaire./ Monitor.al