Tax cut warned on Nation Street

The Report on Conception Monitoring for 2021 that was recently released by the Ministry of Finance is said to result in a rise in traffic revenues, the Accounting Authority may trigger renegotiating the contract with the possibility of lowering the payment fee to the pay square.

The report says that of the 12 risks identified in the National Road Conception, the Accounting Authority has maintained 3 risks: political risk, governance and risk of legal change, while to the Private Partner has transferred risk of construction, risk of asset transfer, risk of operating and performance, and risk of rebalancing financial balance.

Meanwhile, risk of demand, financial risk, risk of major force, risk of renegotiation and risk of contract cuts are divided between the private and public sides. In 2018, as well as residents of the city of Kukes, the Page Square (Toll Plaza) stood outside for six months. “However, for operating months revenues were higher than anticipated. Not reported for the year 2021 was the materialisation of any risk, but financial risk, risk of major force, risk of renegotiation, and risk of negative government action (MAGA) are classified as middle risks and the MAGA risk. The contracting authority says that the possibility of its materialisation is possible in lowering the payment rate at the” payment Square, says the Conception Monitoring Report.

The concession's income reached 2021 to 2.5 billion dollars, of which $1.7 billion was tax revenues on the pay square and 790 million leks of government compensation.

Total income was 10% higher than in 2020 and 6 percent higher than in 2029.

When he published the concessional contract, the government kept the annex to hide for traffic, but as the Ministry of Finance reports, the cash collections from traffic were greater than projections in the contract.

In the first four years of the contract, the company has collected $7.9 billion in revenue (67m euros). While the value of investment by the concession company is 5.6 billion dollars for the entire period of the 30-year contract.

The Finance Ministry reported that the project is currently in the construction and operation phase. By the end of 2021, 105.9% of capital investments have been realised. According to the concessional society reports, the maintenance work of the <x0-Mirot-Morine” highway continues to be carried out, as well as improving works of various components along the highway aimed at increasing the level of security. /Monitor