TIRANA, June 15 – The Albanian government has withdrawn from a decision to cancel a 15-year screening concession in customs points reaching an out-of-court solution with U.S.-based Rapiscan Systems which was claiming $350 million in a Paris arbitration court over the unilateral cancellation of the concession.
In a draft law submitted to Parliament, the Albanian government says it has reached a deal with the U.S.-based company to review the initial screening tariffs which were considered unaffordable by the business community.
Under the new deal, the fee for declarations of more than 1,000 euros with customs authorities has been reduced to 22 euros, down from an initial 39 euros while the fee for declarations of up to 1,000 euros will be at 5 euros. The concessionaire will pay a 2 percent fee.
The renegotiated deal has also revised Rapiscan’s expected income to a maximum of 210 million euros in its 15-year concession contract compared to 316 million euros under the previous deal.
The Albanian government had contracted U.K.-based Omnia Strategy LLP led by Cherie Blair, the wife of former British Prime Minister Tony Blair, also an adviser to Albania’s Prime Minister Edi Rama, who was paid around Euro 500,000 to defend Albania.
In April 2013, U.S.-based Rapiscan System was awarded a 15-year concession by the former Democratic Party-led government to provide turnkey cargo and vehicle security screening services at various sites throughout the country, but the contract was suspended after fierce opposition by the business community which claimed the high tariffs would increase costs and reduce their competitiveness.
Back in late 2014, Albania’s Competition Authority recommended that the Albanian government reviews a concession deal with Rapiscan as running counter to Albania’s EU’s commitments and violating tender procedures.
“The concession contract, signed in April 2013 but which has not been made effective yet runs counter to the Stabilization and Association Agreement (SAA) Albania signed with the EU which has a priority over other law and by-laws.”
The Competition Authority said that since the SAA entered into force in 2009, no new customs duties on imports and exports or other tariffs can be imposed, and existing tariffs between the EU and Albania cannot be raised at a time when the concession deal foresees extra fees of Euro 39 per screening which will be paid for scanning of containers and vehicles.
The Authority examined the concession contract after concerns by the business community which complained that its costs would increase by 20 million euros a year from the scanning service.
