Veliaj failed with the waste water treatment system, Albania risks a €81 million fine in the Arbitration Court

13:44, 31/03/2023
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Albania risks of paying another fine in the Arbitration Court after the City of Tirana failed in the implementation of a project for the construction of a waste water treatment plant. The fact was revealed by the opposition mayoral candidate Belind Këlliçi, who said that the plant that would avoid the discharge of waste water in the Lana river that runs through Tirana does not exist. Meanwhile, the Albanian-Japanese company “Dondi & Kubota” has already sent the case to an arbitration court.

During the Chicago Architecture Biennale in November 2017, the Mayor of Tirana Erion Veliaj informed the participants that the capital's vital sewage disposal problem would be completely eliminated within five years, through a project funded by the Japanese government.

He was referring to an agreement worth 120 million dollars, signed by Sali Berisha’s government.

More than five years have passed since Veliaj's promise, but the wastewater problem not only has not been solved, but there is a potential risk that Albania will also pay a €81 million fine in International Arbitration. Këlliçi revealed that the Albanian government unilaterally broke the contract with “Dondi & Kubota” in 2018.

According to government institutions, the implementing company had not fulfilled its contractual obligations. The State Supreme Audit assessed earlier that the Albanian government is guilty of breaking the contract.

According to the audit group, delays in the implementation of the project have come about due to the lack of spaces to carry out the works, lack or prolonged delays of payments to the contractor, the pronounced lack of clarification of construction permits, and others, which are all responsibility of Albanian institutions.

After the unilateral termination of the contract, “Dondi & Kubota” turned to International Arbitration to demand compensation in the amount of €81 million.

The case is under consideration at the International Court of the World Bank and, according to the State Supreme Audit, the Albanian state will most likely be the loser.

So, from Veliaj's promise for the complete elimination of sewage circulation in Tirana, the situation is now completely negative. The project does not exist and it is not known when it will be realized, while the country may face a hefty fine from the International Arbitration.

© SYRI.net

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