The ministry knows they screwed up with foreign investments. I think we will see a positive change soon for all the concessions.
Management of Hydropower Projects Contracts along the PPP by Dr Lorenc Gordani, 03rd December 2016 (Text in Albanian)
Published on December 3, 2016
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Lorenc Gordana
Lorenc Gordana
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Energy Investments & Trading Regulations at Essegei S.p.A (lorenc_gordani@albaniaenergy.org)
Albania as a member of the Treaty of the Energy Community in accordance with Directive EU 2009/28 / EC "on the promotion of the use of energy from renewable sources" and the National Action Plan for Renewable Energy (NREAP), aims to achieve national target of 38% RES (approved by Decision of Council of Ministers of the energy Community 2012/04 / MC-EnC) of renewable energy in total final energy consumption in the country.
As above, the country is involved in promoting renewable energy projects from hydro sources, and attracts significant foreign investment that helped economic growth and the creation of new jobs. The facts show that about 520 hydropower plants with concessions, there were 124 such with installed power of 343 MW, which constitute about 25% of the number of HPP. While the construction phase are 70 HPPs which means about 14% in the number of jobs for HPP and construction have not yet started 307 of them.
For more problems recently concluded that the revision of the regulatory framework considered as infringement of legal certainty and judicial referral of roads, made it important to understanding that after the conclusion of the contract negotiations and begin obligations concerning its implementation. Phase was made necessary professional management throughout the duration of the contract until its completion. Management was based on the legal framework of concessions and PPP, the legislation on the activity of public administration (in particular, Code of Administrative Procedure) and the legislation governing the contractual relationship between the parties (in particular the Civil Code of the Republic of Albania).
However concessions and PPP legislation, does not contain detailed provisions regarding the monitoring and management of the contract. From an overall analysis of this legislation, it is concluded that issues related to contract management, are predefined and must be disciplined, primarily from its provisions the PPP contract between the parties. In the absence of that which is necessary to reliance not only on the analysis of the Albanian legislation in force, but also on an assessment of best practices and guides international bodies regarding the implementation of PPP projects and in particular the monitoring of contracts.
As for the above basic aspect of the whole process is the stage of professional management or assist with qualified expertise throughout the duration until its conclusion. Contract management that includes carrying out necessary and appropriate tasks to implement the terms of the contract, the management of communications and relations between the parties to the contract, monitoring the implementation of the contract, etc. related mechanisms, such as monitoring the implementation of the PPP contract; contract monitoring risks; management of situations in which changes are needed to PPP project; conditions for renegotiation of the contract; management of disputes between the parties; conclusion of contract and delivery of assets; Early settlement of the contract.
For this purpose, managers should consider disciplining procedures and modes of action. Specific protocols should detail the mechanisms of functioning of the monitoring contract, and when during the monitoring verify the discrepancy and attitudes related to the implementation of the contract, should interfere with the mechanisms and structures for the verification of their implementation, even with expertise or bodies third, independent.
The primary purpose of the above process is to identify real-time problems encountered and quick response. The manager should try to prevent hazards or problems, and if they are verified, try to avoid and mitigate their negative effects. The contract is closely monitoring the verification of compliance with the performance standards in charge of both partners. For this reason it is advisable to follow a well-defined protocol and escalated response mechanisms.
For more on above, we invite you to discover through the Official Website of Acerc or to keep updated through the Albanian Energy Market - AEM Group and Personal Publications in LinkedIn.
