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Albania risks another fat bill, €90 million for Rama’s government’s breach of contract with the foreign consortium

Albania risks another fat bill, €90 million for Rama’s government’s breach of contract with the foreign consortium

17:23, 27/01/2021
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After €150 million that must be paid to the Italian businessman Francesco Becketti and the Greek company Aktor, Albania risks another fat bill in arbitration. The Italian-Japanese consortium Dondi & Kubota that was contracted for the construction of the sewerage network in Kashar have sued the Albanian government in Arbitration, demanding €90 million for the unilateral termination of the contract.

The union of companies has already addressed the International Chamber of Commerce, London, where it seeks compensation from the Albanian state for the fund of €90 million, as the project remained unfinished.

In 2018, an audit from the State Supreme Audit (KLSH) also found violations in the termination of this contract which was financed by the Japanese Development Bank, following an agreement between the Albanian Government and the Japanese government in 2014, which was ratified by law of special by the Assembly.

The Ministry of Infrastructure and Energy for the termination of the contract has not received prior approval from the financier Japan Development Bank, 'JICA' and has not taken into account the suggestions and remarks made by the Dispute Council, which are mainly related to: lack of spaces to carry out works; lack or further delays in payments in blockers to the contractor, such as delays in VAT liquidation and payment of situations; marked lack or delay of cooperation regarding obtaining permits, approvals of works, etc .; problems encountered during the implementation of the project and lack of readiness to correct or improve it, etc. Considering the illegality of the unilateral termination of the contract it is very likely that the contractor will win this issue and the state budget will pay a considerable amount estimated at over €90 million.

KLSH further suggested to the government that in order to avoid the economic damage that may come as a result of the loss of the litigation in Arbitration, to start negotiations with the company to request its withdrawal from the case that it has opened in this court, and at the same time, in exchange, to request the re-conclusion of the contract for the continuation of the implementation of the works.

But Rama’s government has ignored all suggestions and has continued on its way to terminate this contract, adding even more damage that may be caused to the state budget. And in case of loss in Arbitration, in addition to the bill of 90 million euros, the budget is added to the damage of €56 million that have already been invested, but have not been completed, and consequently go out of function and due to depreciation.

© SYRI.net

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