Tirana-Elbasan Highway

Albania Govt Loses Another Trial with Private Companies

On September 1, 2020, the International Court of Arbitration (ICC) has given the right to the company "Aktor" for additional works on the Tirana-Elbasan highway.

In the 114-page court decision published by dosja.al, the ICC found the Albanian government guilty of removing the Greek company, which built the Kërraba Tunnel in record time, but left after the project was reviewed for the demolition that occurred in Ibë. 

The trial with "Actor" becomes the second international trial lost by the Albanian current government against private companies, after that with businessman Francesco Becchetti. 

After leaving with a mountain of debts with subcontractors, the company sued the Albanian government, seeking compensation for the removal. In the decision, the arbitration says that the Albanian government has the obligation to immediately pay USD 44 million to "Aktor" for violations with highway construction procedures. 

The Greek company "Aktor", which built the Kërraba tunnel and won the tender for the Tirana-Elbasan road, faced an Albanian "soap opera". Actor completed the Kërraba tunnel, which cost ALL 8.3 billion, but for the other two lots entered the competition together with the company "COPRI". 

"Actor" claimed in court that for the Tirana-Elbasan highway, it did additional works requested by the Albanian government, but these works were never paid, leaving the company in debt with subcontractors, but also a very negative balance sheet. At the moment when "Aktor" had started the additional works, the Albanian government removed "Aktor" and hired the company "Inerte Express" of the businessman accused by the opposition as affiliated with the government, Edmond Bego.

Bego's company received a payment of ALL 10 million for the completion of works on the Tirana-Elbasan road and completed the works. As a result, he received the payment, refusing to pay the company with which he had agreed.

The new Tirana-Elbasan road with a length of 27 kilometers began to be built in 2011 at a cost of ALL 33 billion (EUR 260 million). The deadline for the total completion of the works was 2015, but a collapse that occurred in Iba, required a review of the project and new costs. Following two years of examinations and negotiations, the Albanian government was forced to take two additional loans for the completion of the road worth EUR 51 million, bringing the total cost to over EUR 300 million.