The budget pays off 42 million euros for concessions - 5 months/ 11 active contracts, 30% of total annual liabilities are liquidated
The state budget has paid out approximately 42 million euros in payments for active concession contracts. Referring to the mid-year report on budget implementation, at the end of the 5-month period of 2025, it resulted that, out of 11 concession/PPP contracts with budget support: 8 concession/PPP contracts have actual budget payments and for 3 contracts no payments have been made.
For the 5-month period, actual payments result in the amount of around 42 million euros, or 30.3% of the planned annual payments for 2025, according to the amended plan. Compared to the same period in 2024, they result in around 6 million euros lower, or 1.4% less, reflecting similar progress in the implementation of annual contract plans.
Actual payments for May were around 7.5 million euros, or around 5.4% of the planned annual payments for 2025, according to the amended plan. The highest payment made in May is the payment of around 2.4 million euros for the contract “Provision of medical laboratory services”, which constitutes 31.7% of the total actual payments for May 2025.
The budget funds planned for 2025 for support from the state budget for concession/PPP contracts, according to the annual plan with changes reported by the relevant contracting authorities, total about 13.98 billion lek or 140 million euros. Of these, about 5.59 billion lek or 60 million euros are investments and about 8.39 billion lek or 84 million euros are current expenses.
Compared to the actual annual payments for 2024, which amounted to around 13.3 billion lek or 133 million euros, the planned payments for 2025 are around 6.8 million euros higher or around 5.14% more, specifically as a result of:
The higher payment plan for 2025 for the contract "Construction of the Landfill, Incinerator and Rehabilitation of Existing Landfills in Tirana and Production of Electricity", an increase which is affected by the low realization of actual payments for this contract for 2024; The higher payment plan for 2025 for the contract 'Financing, establishment and operation of the container and other vehicle scanning service in the Republic of Albania', an increase which is affected by the lower realization of actual payments for 2024 as a result of the exchange rate effect.
The allowed limit of net payments for concession/PPP contracts for 2025, of 5% of the actual tax revenues of 2024, is estimated at around 330 million euros. The 2025 payment plan for concession/PPP contracts, reported by the relevant Contracting Authorities, constitutes 2.12% of the total actual tax revenues of 2024, respecting the fiscal rule of 'no more than 5% of the actual tax revenues of the previous year'.
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