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

AuthorDorina Bezati
Vol. 4 No.3
January, 2019
Balkan Journal of Interdisciplinary Research
IIPCCL Publishing, Graz-Austria
ISSN 2410-759X
Acces online at
Concessions and public private partnership legal framework. Concerning
issues in the triangle: Public Authority - Concessionary - Banking System
Dorina Bezati
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 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 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 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 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 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 ful 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 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
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

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