The sum of millions that will win signatures from National Road (Photo) taxes

The sum of millions that will win signatures from National Road (Photo) taxes

According to projections from the Milot-Morine segment concession contract, the company's revenues are expected to be around 400m euros over 30 years, of which around 338 will be financed by taxes and 61m euros as subsidy for missing traffic. According to the table, they are expected to be taken from [...] in the first ten years.

According to the table, in the first ten years, it is expected to be taken from guaranteed traffic among 8.5m euros annually. In addition, the concessionary income will receive an average of 1.5-1.7m euros annually from the budget for reduced traffic compensation (see the chart: Table: Forecast of revenues from road use.

After the tenth year, annual revenues from guaranteed traffic are expected to increase to 1014m euros annually. Increasingly, there will be compensation between 1.7m and 2.7m euros annually.

By the end of the concession, after 31 years, the company has guaranteed 400m euros in revenue, as if it doesn't get it directly from traffic, it will receive it from the budget. Over that amount, it will share half the income.

Revenues are projected to increase year after year, assuming higher traffic, but if the fee will affect the reduction of traffic, the burden will fall on the budget, which will have to compensate for it.

In the concession contract, connection to traffic data has not been published. According to the IFCI study that gave the concession consultancy, during March 2014-March 2015, about 5,000 vehicles were moved a day. Supposedly with the concession's entry into force, the vehicle movement will decline and the government will finance concession from other Albanian taxes, which total 5m euros annually and the maximum of up to 13m euros. But if the traffic is above the supposed IFC 5,000 vehicles per day, the contract envisions that concession gains will be cut in half with the government.

Also, the contract has uncertainty about the level of investments, as at the top of it, 40m euros will reportedly be invested and lower inside when the most detailed expenditures are, the value of the works is estimated at 100m euros.

The concessionist gets it.

The government's International Conception Finance Corporation estimates that 45.6m euros must be spent on maintenance of the Nation Road, while in the government- approved concession contract, investments do not round up to 40m euros.

The IFC estimated that the value of over 45m euros of investment includes 15m euros for the new bridge at the entrance of the town of Kukes, about 11m euros for side rails, cutting off illegal crossings by 6.5m euros, environmental protection measures 3m euros, building 2.5m pay systems, while lighting and improving security measures, 7.3m euros.

The concession will be responsible for the construction of the new Kukes Bridge by the end of 3rd of the concession period. While the concession will be responsible for preparing detailed final projects. The potential extraction required to up to 3 hectares of land requires the displacement of five families.

The concession will also invest less funding than IFC recommendation. Regular maintenance throughout the concession period will cost 199m euros, according to the IFC study. Of this amount, 148m euros are costs for routine maintenance, and 50.8 are for routine maintenance.

While in the contract that is under way, the value of maintenance investment for the entire concession period is $14 billion, slightly more than 100m euros. In total, concession spending will be 140m euros, while payment revenues for the entire concession period will spend between 400m euros at a minimum. In all, the concessionist earns 260m euros for 30 years. /Monitor/

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