Region: Europe and Central Asia
Topic: Legal Framework
Assessment of Albania's PPP legislation, including the Law on Concessions and PPPs and Public Procurement Law.
Even though a general policy framework for improving the legal environment and promoting PPP has not been identified in Albania , the way the Government recently approached concession legal framework reform shows its interest in promoting and using PPP in its infrastructure and services. The Albanian Law, dated 2006 is very close to the PFI Guide recommendations.
It is one of the few Laws in the region that includes in its definition the transfer of risk to the concessionaire and the remuneration considerations. It also requires a value for money analysis. Reference to “management contract” in article 2 is however unclear. Entities involved and concerned sectors are clearly identified. Sectors eligible for PPP include inter alia transport, electricity, water, waste water, solid waste, education, health care and prison sectors as well as any other sector approved by government resolution.
The Law contains provisions assuring fair and transparent selection process (pre-selection of bidders, procedure for requesting proposals - with a distinction drawn between technical and financial proposals-, possibility of two-stage procedure, publication of concession award, limited exceptions to concession award without competitive procedure, existence of review procedures, parameters for the negotiation process, etc.).
The provisions regulating the project agreement give clear guidance on the main issues to be covered yet remain sufficiently flexible, thus allowing the parties to freely negotiate its terms.
Image by Pixabay
Updated: June 28, 2022