CERTIFIED LEGAL REPORT

Contract implementation study

Date: 11.06.2017

The “Green Vision” Center set up on the Vlora Environmental Associations Network is implementing the “Vlora in Motion” project with the focus on the “Concession to Public Private Partnership of Vlora City Parking System Management and Concession” research project of the documents on the concession of prospects.

The project is supported by Move Albania with funds from the Swiss Embassy

FINDINGS OF THE LEGAL REPORT

Unilateral termination of the contract by the Municipality of Vlora where it is legally enforced:

1. Article 12 of the contract has not been fully implemented and has caused a severe financial damage to the municipal budget of the municipality!

This Article provides that the Concessionaire shall pay to the Contracting Authority a Concession Fee of ALL 10,000,000 per year for the first two years and ALL 10,000,000 per year plus 2% of the annual turnover for each subsequent year.

2. Article 8, last point, automatically nullifies this contract because the concessionaire has not implemented the contract from 06.02.2015 at which time the contract was signed until summer 2016 and March 2017-July 2017 has not performed any activity and in these conditions no fulfill the object of the concessionary contract.

3. Article 26 provides for the termination of the Agreement:

• Article 26/2: A termination of operation by the Works Concessionaire for more than 90 days or in more than 25% of the project area or a combination of both approaching more than 25% of the Concessionaire fee , while the termination of the Concessionaire is too long and in very little way, brings about the termination of the agreement.
  • Article 26/3: Non-payment by the concessionaire of liabilities within specified time periods in breach of contract.
  • Article 26/4: For any serious material violation, the Municipality of Vlora must terminate the contract.

4. Article 20: The municipality may terminate the contract if the concessionaire becomes insolvent, while the concessionaire has not paid any liabilities for 2015 and 2016.

5. Article 21: The Municipality of Vlora in the capacity of the Contracting Authority has the right to terminate the contract at any time if this action is to be taken to best serve the public interest. Has not conducted any public hearings and public interest has been disregarded, severely damaging it.

6. As a result of changing the terms of the contract, addition of its parking facility on Saturday, for 13 roads, for the entire concession period, the negative financial impact of the local unit budget is ALL 3,764,880, while the subject the private receives the unjust sum of 184,479,120 ALL.

Lawyer, Kondi Ilia

No.licence 8335

TIRANA LAWYER ASSOCIATION