New PPP contracts starting in 2025, worth 1.1 billion euros

2024-10-28 20:41:57, Ekonomi CNA

The value of new contracts with Public-Private Partnerships that will be financed next year will reach 109 billion ALL, about 1.1 billion euros according to the 2025 draft budget. The contracts will be financed from direct taxes that citizens will pay for the use of objects.

The new list of PPPs starting next year are the schools in the Municipality of Tirana, respectively "For the Improvement of the Educational Infrastructure in the Municipality of Tirana for four educational facilities in Tirana Zone 3" with 2.5 billion ALL and "For the Improvement of Educational Infrastructure in the Municipality of Tirana for four educational facilities in the Tirana Zone 2.5 billion ALL.

The project expected to be financed from the budget funds for the coming year is the PPP "For the design, construction, operation and maintenance of the road segment Kashar - Lekaj" (VAT excluded) with 56.7 billion ALL and the PPP project "For the design , the construction, operation and maintenance of the road segment Lekaj - Fier" (VAT excluded) worth 38 billion ALL.

For the PPP "For the design, construction, operation and maintenance of the road segment Milot - Thuman" (without VAT) 5.3 billion lek will be financed and Design, construction, operation, maintenance and transfer of Saranda Airport 4.2 billion lek . This project seems to be moved to Gjirokastër, since there is no suitable land in Saranda.

New PPP contracts starting in 2025, worth 1.1 billion euros

The Ministry of Finance evaluates and approves in advance all concessionary and Public-Private Partnership (PPP) projects as well as any changes thereof, from the point of view of individual or group implications for budget expenditures, budget deficit, sustainability of public debt and eventual contingent liabilities .

The total amount of annual net payments made by general government units, which result from concession contracts or public private partnership (PPP), as a rule, should not exceed the limit of 5 percent of the actual tax revenue of the previous year budgetary.

In case of exceeding this limit, the Council of Ministers takes corrective measures on the side of budget revenues, necessary and sufficient to return within the allowed limit, during the next two budget years.

Currently, 11 concession contracts or Public-Private Partnerships (PPP) are active, while five more are expected to be activated next year./ Monitor.al