The contract negotiation is expected to conclude next December but government will collect the whole Euro 850 mln amount only after the contract is first approved by government and later ratified by Parliament
TIRANA, Nov. 12 – The Albanian government is expected to conclude contract negotiations with U.S and Singapore-based Vetro Energy consortium on the sale of Albpetrol oil firm within this year, Energy Minister Edmond Haxhinasto has confirmed. “The contract negotiation process on the sale of the Albpetrol’s shares has already started. It is within the legal deadlines as foreseen even by the purchase contract. Of course, the legal deadline must be respected and conclude with the signing of the contract,” Haxhinasto told reporters last weekend. Speaking of the 20 percent guarantee the consortium has to deposit, Haxhinasto said the amount will be paid just before the contract is signed as foreseen in Albpetrol’s privatization law.
The contract negotiation is expected to conclude next December with the signing of the contract but government will be able to collect the whole amount only after the contract is first approved by government and later ratified by Parliament. The whole process is expected to finalize early next year if no problems arise with the contract negotiation.
Sokol Dervishaj, Deputy Economy Minister and head of Albpetrol’s evaluation committee says the contract negotiation process will be carried out by the Economy Ministry which will determine reciprocal obligations between the Albanian government and the winning consortium, and penalties for failure to fulfill them.
International financial institutions have suggested government money collected from privatizations should be used to reduce public debt currently at the legal threshold of 60 percent of the GDP and pay off accumulated unpaid bills to the private sector, estimated at around euro 200 million.
In a tender held on Sept.7 U.S-based Vetro Silk Road Equity consortium outbid Canadian, Russian and Chinese potential buyers by offering 850 million euros, more than double the amount the Albanian government had been advised by its U.S based consultant Patton Boggs.
Albanian oil tycoon Rezart Taci is the owner of the majority 51 percent stake in the U.S based Vetro Silk Road Equity consortium which has been announced as the winner of an international tender to buy Albpetrol’s above-ground assets and the right to explore and exploit oil and gas in Albanian territory for 25 years.
