Control of Gas Pumps Passes from State to Private Sector

Control of Gas Pumps Passes from State to Private Sector

TIRANA, July 19

The control of the gas pumps for vehicles will pass onto the private sector. The Ministry of Finances has announced the winner of the concession, the company NOA Control. In the race, there was only one offer, with an investment value of Lek 70 million. Within two months from the notification, the winner should negotiate the contract’s conditions. The concession will be given for 20 years, and it is expected to generate €50-60 million in revenue.

This amount will be added to the final price of the fuel vehicle that the customers have to pay. Right now, the control of the gas pumps is carried out by the General Directorate of Metrology and Calibration (in Albanian: DPM), and the income that comes from this service (around €2-3 million annually) make the main budget of this agency.

The tariff has not been declared yet, but right now the fuel companies pay Lek100 per pump, at DPM. On the announcement of this concession, there were made different complaints though. Initially, there was a Swiss company named Penzoil that had complained at the Commission of the Public Procuration regarding the procedure of the concession. Then the case went to the Tirana Administrative Court, which at the end of May 2019 ordered the Ministry of Finances to change the criteria of the tender for the concession worth millions of Euros, regarding the control of the fuel pumps, at gas stations.

The decision finds that a part of the criteria set from the government is in contradiction with the law, and limit the competition in the bidding. Meanwhile, the announcement from the Ministry of Finances, says that the offer from NOA Control was submitted in October 2018, and it hasn’t had complaints regarding this procedure.

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