TIRANA, May 3 – The Albanian government has terminated contracts worth €75 mln with Italy’s Serenissima company which had been contracted to build two major bypasses in southern Albania after the Italian contractor abandoned works for several months, apparently due to debts to Albanian sub-contractors.
An experienced construction and highway management company, Serenissima, part of A4 Holding recently acquired by Spain’s Abertis, surprised Albanian authorities in 2013 when it offered to build the Fier bypass for €39.87 million, from a price tag of €60 million, saving 20 million euros or more than 33 percent of the projected cost.
In spring 2015, the same company was selected to build the Vlora bypass for €35 million.
In addition to supporting tourism development in southern Albania, both the EBRD and EIB financed bypasses are key sections that help improve regional integration, facilitate trade and economic growth, reduce traffic congestion and pollution alongside the cities of Fier and Vlore .
Albania’s Road Authority says the contract with Italy’s Serenissima has been officially terminated and a Euro 17 million guarantee seized to the company.
“After many attempts to mobilize the Serenissima contractor we failed to have any efficient reaction. On April 19 we officially informed the company on the termination of the contract for both the Fier and Vlora bypass projects,” says Dashamir Xhika, the head of the Albanian Road Authority, adding that a new tender will soon be held to select new companies.
Works in the Fier bypass, a 22 km-highway linking the southwestern city of Fier to Levan town, are in their final stage at a time when they should have already been completed by 2016 while the 29 km Vlora bypass scheduled to finish by 2017 is only in its initial stage.
Albanian contractors have sued the company at a Verona court, claiming €18 million in debts.
Spain’s Abertis increased its stake in Serenissima to 85 percent this week after acquiring a 51.4 percent stake earlier in Sept. 2016, according to Italian media.
