Ekonomia

PPPs have reduced competition! DASH critical report for Albania: Corrupt! The economy will recover in 2021

PPPs have reduced competition! DASH critical report for Albania: Corrupt! The

DASH has made a report on the investment climate in Albania. The report describes Albania as a middle-income country and difficult to do business with.

According to the IMF, Gross Domestic Product will shrink by 5% for 2020 in our country.

The cause for the contraction of GDP is the earthquake and the pandemic, while the economy will grow by 8% in 2021.

For 7 years in a row, Albania continues to be an unpopular country for foreign investments.

According to the DASH, reports of corruption in government procurement are common. "The increasing use of public-private partnership (3P) contracts has reduced competition opportunities, including for foreign investors, in infrastructure and other sectors. Poor cost-benefit analysis and lack of technical expertise in drafting and monitoring 3P contracts are ongoing concerns.

American investors are challenged by corruption and the continuation of informal business practices. Several U.S. investors have faced controversial trade disputes with both public and private entities, including some that went to international arbitration. "In 2019 and 2020, the investment effort of an American company is suspected to have been thwarted by some court decisions and dubious actions of the interested parties involved in an investment dispute", declares DASH.

They cite corruption, especially in the judiciary, lack of transparency in public procurement and poor contract enforcement, as ongoing problems in Albania. The report describes our country as one of the most corrupt in the Western Balkans and Northern Macedonia as the most corrupt in the region.

Summary report:

Corruption is a neuralgic point associated with a lack of desire for foreign investment.

Lack of transparency especially in public procurement. Corruption in government and above all tenders is ubiquitous.

Difficult contracts to enforce. The uncontrolled growth of PPP contracts has destroyed the market and made competition impossible.

Lack of cost-benefit analysis of these contracts has ruined the competition. American businesses face corruption cases and demand such payments.

Various US investors have faced commercial issues with private and public entities including international arbitration. In 2019 and 2020 an American company left as a result of dubious judicial decisions and questioning decisions of other parties in an investment-related matter.

Properties continue to be a problem especially the issue of ownership certificate.

Albania is perceived as one of the countries with high corruption. The US is no longer the number one destination for foreign direct investment. This indicates the low level of US investment in the country.