Albania has one of the largest infrastructure gaps in the Western Balkan region.
Yet, high public debt and limited project management capacity in the public sector have created a need for looking beyond traditional means to provide society with infrastructure.
In the last two decades, successive Albanian governments have increasingly resorted to PPPs as the most feasible way to build roads, energy infrastructure, hospitals and schools among other infrastructure.
PPPs offer many benefits, including crowding-in private sector finance and expertise, while allocating risks to the party best equipped to handle them. Currently, Albania boasts a portfolio of over 200 PPPs, 186 in energy with the rest in transport, health, environment and agriculture. This portfolio represents investments that exceed 30 percent of GDP half of which is actually foreign direct investment in the energy sector. PPPs represent many benefits including the allocation of risk to the party… — blog.wb.org/blogs
A version of this article appears in print on July 15, 2019 of The Himalayan Times.