Kosovo-Albania powerline scandal

28/04/2012 00:00

The “Zeri” newspaper in Kosovo, which reported the Albanian government
of intentionally delaying the construction of the Kosovo-Albania power
line, published another report saying that the project might fail, due
to the resignation of the German KFW Bank.

The newspaper writes that sources who are close with the involved parties say that the Germans have clearly stated that the second ranked company, the Bosnian Energoinvest, will never realize the project.

According to the newspaper, “if there will be a new tender, the German Bank will be very rigorous with the parties, since they did not stand to the previously signed agreement, by returning the entire phase of the project”.

“Zeri” quotes the director of the Kosovo Transmission System Operator, Fadil Ismajli, who confirms that if there will be another tender for the project, everything will start from scratch. According to him, every delay of the project would cost a lot to the entire region and the winning parties, adding that from this project will benefit Kosovo, Albania and the entire region.

The delay for the construction of the Kosovo-Albania power line was caused by the Albanian government, which chose as winner the Serbian-Bosnian company, ranked second in the race, and not the Croatian company that was chosen as winner by the German Bank.

The Albanian Government tried explaining this decision with the high cost of the project, despite the fact that the government has neglected the price in similar previous cases.

Price, Prime Minister’s justification

Asked by Voice of America about the double standard in the election of companies, Berisha declared: “The distinction between the project for the new Parliament and the construction of the power-line is very large. For this object there was no jury for the price. If you see the 12 projects that were presented in the Parliament, they vary from 48 to 100 million EUR. The jury had professors from Harward and the entire world chose the project of Mr. Priks, the cost of which was 69 or 79 million EUR, I don’t remember it very well. But when the jury decides the best project, you don’t take the price in consideration. The power line case is different. The KFW is a wonderful bank that has financed dozens of excellent projects in Albania, with us and the previous governments, in very good relations. On this case, the matter is on the loan of this bank. There are two tenders, one for the Tirana-Pristina power line, and one for the Southern Ring.  For the Tirana-Pristina power line, one of the companies that fulfills the technical conditions has offered 8.6 million EUR less, only for the Albanian segment. If you add the Kosovo segment, it is 20 million EUR cheaper, in total. This company has also made a more expensive offer for the Southern Ring, around 12 or 20 million EUR, and not it is expected for it to win the Southern Ring. I understand that you must not always choose the lowest price, but if the government retires from the lowest price, it will violate a rule that will be difficult to reestablish”, Berisha declared.

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