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Public-Private Partnerships (PPP) are collaborative agreements between government entities and private sector companies. The goal is to finance, build, and operate projects that serve the public interest, such as infrastructure, utilities, healthcare, and education. In Albania, PPPs have become instrumental for economic development, allowing public services and infrastructure projects to benefit from private investment and expertise. The legal framework governing PPPs in Albania has evolved to create opportunities for innovation, improved service delivery, and risk-sharing between the public and private sectors.
Engaging in a PPP project in Albania can be complex, involving numerous legal, regulatory, and procedural steps. There are several situations where legal assistance is essential:
A qualified lawyer can help safeguard your interests, ensure compliance, and improve the long-term success of your PPP project.
The Albanian legal framework on PPPs is primarily governed by Law No. 125/2013 "On Concessions and Public-Private Partnership," as amended. Key aspects include:
Albania’s membership aspirations with the European Union also mean that PPP laws are being shaped to align with EU standards on procurement and transparency.
A public-private partnership is a formal collaboration where a government body partners with a private company to deliver public projects or services, sharing risks and benefits based on agreed contractual terms.
The main legal instrument is Law No. 125/2013 "On Concessions and Public-Private Partnership," along with numerous regulations and governmental decisions that provide detailed procedures and guidelines.
Both public authorities and private sector entities can initiate PPP projects. Public bodies can identify needs and launch procurement, while private investors can submit unsolicited proposals subject to government approval.
Eligible sectors include infrastructure (roads, ports, airports), utilities (water, energy, waste), health, education, IT, and other services of public interest as outlined in the PPP law.
Projects are usually awarded through an open, competitive tender process, although certain procedures allow for negotiation in specific situations defined by law.
PPP contracts in Albania typically range from 5 to 35 years, depending on the project type and sector, with the possibility of extension or early termination based on contract terms.
Payment structures vary. They might include service payments from the public authority, user fees, or a combination, based on the specific contract and project design.
Private partners are usually responsible for financing, constructing, operating, and maintaining the project as defined in the PPP contract, along with meeting performance benchmarks.
Disputes may be addressed through negotiation, mediation, arbitration, or litigation, as specified in the contract and under Albanian law. Arbitration is commonly preferred for cross-border projects.
Yes, foreign investors and companies are welcome to participate in PPP tenders in Albania, subject to meeting legal and technical qualification requirements.
Several resources and institutions are available to support parties interested in PPPs in Albania:
If you are considering participating in or proposing a PPP project in Albania, taking the following steps can help ensure a smooth and legally compliant process:
Taking qualified legal advice from the outset is the best way to ensure your interests are protected and your PPP project progresses efficiently and compliantly in Albania.
