Concessions and public private partnership legal framework. Concerning issues in the triangle: Public Authority - Concessionary - Banking System

• Author: Dorina Bezati
• Pages: 74-85

74

Vol. 4 No.3

January, 2019

Balkan Journal of Interdisciplinary Research

IIPCCL Publishing, Graz-Austria

ISSN 2410-759X

Acces online at www.iipccl.org

Concessions and public private partnership legal framework. Concerning

issues in the triangle: Public Authority - Concessionary - Banking System

Dorina Bezati

Abstract

This paper deals with recent concerns regarding the question: How does the legislation impact

the domestic market of concession projects? Do the legal changes toward the approximation

process of the legislation enable the proper functioning of the market and the facilitation of

the interaction among the links in the chain: public - private/ concession - banking system?

The selection of the topic is triggered by the recent developments in the public goods delivery

market in Albania and the regulation of the new market of concessions, including public

private partnership. Currently in Albania, energy policies are listed among the sectors of

special importance and for this reason the public structures prioritizes and have also developed

a proper fi eld strategy. The purpose of this paper is related to the interaction in the HPPs

projects, of the bidder, in this case the concessionaire, with the country’s banking system, as

leverage in the creation and fi nancing of the concessionary project. The main problems faced

in the triangle Public Authority - Concessionary - Banking System are being analyzed and

followed by some suggestions for the near future.

Provision of public goods, optimal services in favor of citizens, and the growth of their

wellbeing has been and still is one of the main goals of the state institutions. Today,

we fi nd this goal as one of the key strategic objectives of the local public entities in

Albania. The individual agrees to give up some of his rights in favor and in function

of a bigger scope... the common good. The catalyst in this relationship is certainly the

state and its authorities, which enable the intervention in the relationship that the

market creates among the actors of the fi eld. The state possesses and uses a series of

mechanisms to provide optimal results in function of the primary goal of meeting

vital needs and further enhancing the community welfare. In this paper we have

examined one of them, namely the domestic legal framework in the fi eld of provision

of public goods and services to citizens. The emergence of third parties and private

entities, which carry out activities on behalf of public entities, is now seen in a new

light, where the private sector is gradually turning into the key actor of the process.

We see this key role in its positioning as the subject which will fulfi ll and carry out

the service or action required. We also see its interacting role in the service delivery

scheme; the relationship that the private entity establishes with the community, the

interest groups and the banking system is inevitable. The relationship established

between the concessionaire and the domestic banking system is at the focus of the

analysis. Except for some special cases, where entities that participate in the bidding

process have large fi nancial assets and capacities, all other entities address the banking

system for the mediation of the process. Banks, which are private entities with the

purpose of economic gain, emerge in the scheme as entities co-operating with the

entities participating in the competitive procedures in two separate moments. The

fi rst step is related to an inevitable stage of the tendering process as a whole, where

the competing entities must submit together with the required documentation, also a