The three scenarios that were proposed to the Government of Albania for the “nation's Street tax”

The international financial corporation, the IFC, part of the World Bank has been the consultant of the Albanian government for concession maintenance of the Nation Road. Top Channel writes it has secured the report that IFC has handed over to Albanian authorities, where it has studied three scenarios proposed for this concession. The document reveals that steps for maintenance concession [...]
Top Channel writes it has secured the report that IFC has handed over to Albanian authorities, where it has studied three scenarios proposed for this concession.
The document finds that steps for concessioning Milot-Morine road maintenance have started with the “Berisha” government.
In fact, it has been a proposal of private subjects to invest over 100m euros, making the entire 2nd lane in each direction for the first three years, against a fee of 8 to 9 euros per vehicle without VAT.
This scenario is irreversible, according to the IFC, as in addition to high taxes requires other money from the budget, at least 4.5m euros per year, almost throughout the concession.
The next scenario minimizes the level of investment from the private, accounting for around 23m euros. The tariffs are lower, about 4 euros without a vehicle VAT, but in the meantime, it is required that the Government do a portion of the investment. But, according to the IFC, this scenario has unfinished project points on the part of the government, leaving it exposed to financial and legal obligations.
The opimal scenario recommended by the International Finance Corporation envisions an investment by the concession of 34-37 mln/euro, budget subsidies 1 mln/euro annually, and taxes 5.3-5.9 euros per vehicle (without VAT).
According to the IFC, these rates are 10 per cent lower than in Croatia and Bosnia and 30 per cent higher than in Macedonia and Serbia.
The screenwriters have not received for the basis the confidential report of the Egnatia Ozhos company, which the Albanian government hired to make the strategy on road taxation in Albania.
According to this report, the optimum fee for roads in Albania is between 1 and 2.5 euros per 100 km, while according to what has already been imposed, the tax for crossing Milot-Morine Street is 4.2 euros per 100km, or 2 to 4 times higher than the consultant recommended.












