Applying Results-Based Financing in Water Investments in Albania

Abstract

The framework for conducting PPPs in Albania is on par with the best practice of OECD countries. The provisions for unsolicited offers, the ability to complement through subsidies to the concessionary the financing gaps allow the government to benefit from efficiency gains and rigorous management through private involvement, even when the financial viability of a full PPP is not proved. The value for money criteria is applied to all projects, making sure that projects are rigorously tested prior to completion. The obvious successes of PPPs in hydropower development in Albania constitute a living proof of the potential of public private partnerships in dealing with infrastructure needs. The experience of the concession unit, the clear role of public procurement agency in auditing the award processes, the ability of competitors to invoke a review of the process from the public advocate, the availability of information for the general public constitute a solid ground for proper governance of the processes. In conclusion, we can qualify as enabling the environment for conducting PPPs in Albania. That means that from this point, the sectorial issues are the only ones that have to be taken care of in older to conduct a public private partnership in irrigation.

DOI: 10.5901/mjss.2015.v4n1p125