Lost cases and legal costs increase the Arbitration bill by 5%, the damage reaches 181 million euros

2024-11-01 07:30:00, Ekonomi CNA

Lost cases and legal costs increase the Arbitration bill by 5%, the damage

Until September 2024, the Ministry of Finance calculates a liability of 181 million euros to international arbitrations.

Compared to previous years, the scheduled obligation for international arbitrations has increased by about 5%. The liabilities have increased due to the loss of new cases and the costs of legal representation of the Albanian state in Arbitration.

In the draft budget of 2025, the compensation decisions of the Arbitration court, the actual and contingent liability, and the costs of the legal representation of the state in the Arbitration are given in detail.

For the lost case with the "Construzioni Dondi" company, an obligation worth 13.4 million euros has been added to the total Arbitration invoice. The lawsuit was filed in 2018 by the Italian company. Over the years, the administrative costs of representation and legal of the Albanian state for this matter reached up to 189 thousand euros according to the data published in the draft budget 2024. So far it turns out that 90% of them have been paid.

In August of this year, the German company "EMS Shipping & Trading GmbH" interrupted the Arbitration trial for the concession contract for the processing of refujo cargo ships in the Eastern Terminal of the Port of Durrës.

In the lawsuit filed by her in April 2023, 40 million euros in damages were requested for unequal and discriminatory treatment of the contract. Despite the termination of the case, the Albanian state has been charged with legal and administrative costs to be paid in the amount of about 1.8 million euros.

While the legal cost for the representation of the state in the Arbitration, for the concession contract in the port of Durrës with the company "Durrës Kurum Shipping" from 1.1 million euros that was until September 2023, it turns out that 200 thousand euros have remained unpaid. The case was won in August 2024 by the Albanian state. The plaintiffs demanded compensation worth 100 million euros in the lawsuit filed 4 years ago.

About 60% of the total unpaid Arbitration bill continues to be for the case "Hydro and others against Albania", of the Italian entrepreneur Francesco Beketi. The obligation worth 108 million euros for the decision of "Hydro and others against Albania", is the highest among the 5 cases lost in Arbitration by the Albanian state. While the legal cost to be paid for the representation of Albania in this matter is worth 1.5 million euros.

Then there is the bill worth about 42.4 million euros for the "Copri Actors" case with the Greek company which won the case for the conflict of the construction of the Tirana-Elbasan highway.

An invoice of 12 million euros, the Albanian state must pay for the lost case with the company "GBC Oil LTD"./ Monitor Magazine