The Becchetti case has the largest obligation to be paid

Lost Cases in Arbitration Amount to EUR 183M

The government has already paid Euro 5.2 million on account of the cases that third parties have won against it in Arbitration, during the past year.

The data made public in the actual budget of 2023 show that the total obligation at the end of the reporting was Euro 183.2 million. This total consists of two indicators, which are the remaining liability from the Arbitration decisions/legal costs that are calculated at Euro 73.8 million and contingent liabilities of Euro 109.45 million, the economic magazine Monitor reported on Friday.

Contingent liabilities with a higher value seem to be related to the decision that the Court of Arbitration gave in the Becchetti case where the Albanian state was forced to pay the entrepreneur Euro 108 million, but even though the final decision has been given for a long time, the government seems to classify it as contingent. This happens in conditions where money has been blocked from the accounts of Albanian institutions abroad for some time due to this decision.

The second largest obligation is for the arbitration with the road company Copri Aktor, for the disputes regarding the construction of the Tirana-Elbasan road, with an amount of Euro 42.5 million, for which no liquidation has been made. In addition to the obligation, Euro 225,000 in legal costs remains to be paid.

For the arbitration with the company Costruzioni Dondi, the government must pay Euro 13.5 million. The company was the implementer of the project located in the Kashari area and was being implemented by the Italian-Japanese contractor "Dondi Kubota" thanks to a soft loan granted by the government of Japan, about Dollar 79 million. The works started in 2014, but it seems that the clashes between the implementing companies and the contracting authority, in this case, the National Water and Sewerage Agency led to the termination of the contract.

The fourth arbitration with the highest obligation to be paid is the one with the oil company GBC OIL, of Euro 12.2 million. The conflict is related to the license for the use of 4 oil fields Gorisht-Kocul, Cakran-Mollaj, Ballsh-Hekal, and Delvina, initially for the company Stream Oil, which after several sales ended up with GBC Oil.

The contract was terminated by Albpetrol (the state operator that manages the oil fields) in 2017, renewing these resources, for non-fulfillment of concessionary obligations. While the obligation remains unpaid, almost all legal costs of Euro 6.6 million have been liquidated for this arbitration (only about Euro 400 thousand remain).

For other arbitration awards and legal costs, the liability varies from Euro 150 thousand to Euro 1.7 million.

The arbitration for the concession contract for the Eastern Terminal in the Port of Durrës is in process. The case at the International Court of Justice for the concession contract for the processing of goods by ship in Durrës was filed in April 2023 by the German company EMS APO. The cargo ship processing company in the Eastern Terminal has requested Euro 40 million in compensation for unequal and discriminatory treatment of the contract.

Only for the protection of the interests of the Albanian state in different cases in Arbitration, it seems that the state has spent Euro 562 million, where there are a series of active cases.