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Albania’s bans unsolicited proposals for PPPs in road construction

Albania’s bans unsolicited proposals for PPPs in road construction Source: Albanian Parliament

TIRANA (Albania), July 19 (SeeNews) – Albania’s parliament has approved a draft law banning unsolicited proposals for public-private partnerships (PPPs) in road infrastructure projects, economy minister Anila Denaj said.

Unsolicited proposals will remain in use only for PPPs and concession contracts for the provision of works and services in ports and airports, electricity generation and distribution as well as natural gas distribution, Denaj said in a press release late on Thursday.

The draft law also provides for the elimination of bonuses for unsolicited proposals in order to increase transparency in procurement procedures, Denaj added.

The law aims to improve the legal framework for granting PPP/concession contracts, increase control of implementation of contracts as well as strengthen the role of the finance ministry, Denaj noted.

In March 2018, the IMF said Albania's current practice of unsolicited proposals in PPP agreements should be eliminated.

“With regard to PPPs, a key priority is to reduce the fragmented decision-making and strengthen risk assessment processes at the Ministry of Finance. These processes are critical given the large contingent liabilities frequently embedded in PPP contracts over a long-term horizon,” the IMF said at the time.  

The rapid increase in public-private partnerships has raised fiscal risks, calling for additional improvements in the public investment framework, the IMF said in Novemeber 2018.