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Government decisions/ Legal framework for PPP is defined

2025-10-29 17:05:00, Politikë CNA

Government decisions/ Legal framework for PPP is defined

The Council of Ministers, in today's meeting, approved the draft law "On Concessions and Public Private Partnership", which defines the legal framework for cooperation between the state and the private sector.

The law defines the terms concession, PPP, operational risk, and SPV.

The draft law stipulates that PPTs can be implemented in several sectors such as transport, energy or water.

The objects of the draft law are also defined.

 

NOTICE

 

The draft law "On Concessions and Public-Private Partnerships" defines the legal framework for how the state and the private sector cooperate to implement projects of public interest, through concessions or public-private partnerships (PPP).

Object:

•The competences of public authorities to conclude PPP contracts;

•Procedures for awarding, signing, amending or terminating contracts;

•Sharing financial and fiscal risks between the parties;

•The manner of financial support and arrangements related to concession policies.

The law defines the terms:

•Concession - Agreement for the construction or provision of public services, where the private partner is rewarded with the right to use the work or with a fee.

•Public Private Partnership (PPP): Sustainable collaboration between the state and a private operator for the provision of public services or infrastructure.

•Operational risk: The risk transferred to the concessionaire regarding the demand, supply or availability of the facility.

•SPV (Special Purpose Entity): Private company created specifically for the implementation of the concession/PPP contract.

Scope of application

PPPs can be applied in sectors such as transport, energy, water, waste management, telecommunications, education, culture, and health.

This article defines the bases on which any procedure for the award of concessions and public-private partnerships (PPP) is carried out.

1. General principles – Procedures are implemented respecting transparency, equal treatment, non-discrimination, proportionality, efficiency, reciprocity and legal certainty.

2. Impartiality of the procedure – The preparation of the competitive procedure, including the calculation of value, must not have the purpose of unfairly favoring or excluding economic operators or certain services.

3. Autonomy of public authorities – Central and local authorities have the right to decide the most appropriate way to manage public works and services, ensuring quality, safety, affordability, equal treatment and universal access. They may carry out tasks with their own resources, in cooperation with other authorities, or delegate them to economic operators.

4. Preservation of the public ownership system – The law does not require the privatization of public enterprises and does not affect the ownership system in the Republic of Albania./CNA





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