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Albania PPPs
The Government of Albania recognizes the importance of legislation conducive to private-sector participation and the role that institutional capacity building can play in terms of ensuring competitive and transparent public-private partnerships. As Lead Advisor to Albania’s Ministry of Economy, Trade and Energy, IFC is reviewing the Albanian legislation that constrains private-sector participation in public infrastructure projects and is recommending draft concession legislation, which would best respond to the Government’s objectives and allow easy access to a clear, fair, predictable, and stable legal environment. Furthermore, as part of the strengthening of the institutional capacity of the Government, IFC is engaged in establishing a functioning and effective Concession Unit.
Albania KESH
Albania is experiencing serious shortages of power supply that are having a negative impact on its economy and people. Ensuring an adequate and continuous supply of electricity to all Albanian is, thus, of strategic importance to the growing economy. IFC has been engaged to advise the Ministry of Economy, Trade and Energy on: (i) the unbundling of KESH’s (the Albanian electricity company) distribution business assets from its other activities and assets; (ii) structuring a transaction that will attract the private sector; (iii) and executing an open, transparent, and competitive process to attract the optimal private partner to operate and develop the entity.
The privatization of KESH’s distribution business will have a positive impact: (i) on the Albanian people, as it will substantially improve the supply of electricity nationwide and lead to increased customer satisfaction; (ii) on the country as a whole, as the reduction of technical and non-technical losses and improved bill collection will help balance demand and supply of electricity; and (iii) on the company itself, given that the privatization will ensure sustainable and efficient operations, optimized resource allocation, and improved bill collection.
ASHTA Hydropower Plant (HPP)
Some years ago, Albania was able to satisfy its own domestic needs and also to export surplus energy to neighboring countries. Today, its citizens are subject to extensive power cuts. Structuring and implementing a public-private partnership in Albania’s hydropower sector is, therefore, key to increase the country’s production capacity and decrease the power shortages that severely affect economic development and require large imports of electricity.
Durres Container Terminal
The port of Durres is the key entry point of goods in Albania and as such is considered essential for the long term development of the country. To promote the flow of containerized goods into Albania and increase the competitive advantage of the port in the region, the Government wants to introduce private-sector participation, which will also transform the Durres from a Service Port to a Landlord Port, as required by Port Authority Law. IFC will assist the Port of Durres Authority and the Government of Albania to prepare and launch an international bid for the selection of a specialized, highly competent container terminal operator under a long-term concession.
Bulgaria Water
As Lead Advisor to the Ministry of Regional Development and Public Works, IFC is helping the Government of Bulgaria on restructuring the country’s water sector and implementing one pilot public-private partnership. The Ministry recognizes how crucial private-sector participation is to improve the management of water and sanitation services and has identified it as a key priority in its agenda for the next five to ten years. Improved water and sanitation services would have a positive impact on society and public health through expanding the access to and quality of drinking water supplies, and better collection and treatment of sewage.
Belgrade Solid Waste
The Infrastructure Advisory Program for Southeast Europe is assisting the Belgrade Municipality to improve solid-waste services and rehabilitate the Vinca landfill to bring it to conformity with EU environmental and waste management regulations and standards. Furthermore, this project will also enhance efficiency and lower costs by introducing commercial principles as well as reduce pollution in the Danube valley, which currently receives untreated lechate from the landfill. This is a priority project for the Municipality and will result in a concession to the private sector that will expand, upgrade, operate and manage the existing municipal solid waste disposal site.
JAT Airways
IFC has successfully completed a mandate as lead advisor to the Government of Serbia in the restructuring of its national carrier, JAT Airways. Founded in 1927 and featuring with the longest tradition in southeastern Europe, JAT Airways is burdened with debt and is facing substantial operational challenges. The Infrastructure Advisory Program for Southeast Europe carried out a thorough due diligence of the airline and the sector, identified critical issues, and proposed specific measures for its restructuring in order to introduce private-sector participation. Attracting a private operator combined with the proposed restructuring will transform JAT Airways into a viable airline and will enhance its network integration into the regional and global aviation industry. Following the recommendations submitted by IFC, the Government decided to launch the privatization of its national carrier.
Belgrade Water
The Infrastructure Advisory Program for Southeast Europe is the lead advisor to the Belgrade Municipality to assist it in improving water services to the city. Although most of the due diligence work has been completed, IFC and the Government are focusing on successfully closing the Belgrade Solid Waste mandate before resuming activities on this project. | |
