Ex-MP warns of negative impacts from review of concessions

TIRANA, Sept. 17 – Massive unilateral cancellation of concession contracts awarded by the previous government would have negative consequences to the country’s public finances and the attraction of foreign direct investment, warns former Democratic Party MP, economy expert Selami Xhepa.
Newly elected Prime Minister Edi Rama has warned he will review several concession contracts and privatizations made by his predecessor Sali Berisha.
“From the legal point of view, every kind of contract that has been signed will normally be addressed to court and arbitration and as a result such decisions would have consequences to the public finances. On the other hand, contracts which have been approved by the previous Albanian government but have not been executed by the Finance Ministry, which is the competent body on the signing of contracts with the private investors, would not have any legal consequences,” says Xhepa, adding that the massive cancellation of contracts would not be rational as far as the message conveyed on the climate of investments in Albania.
He says the renegotiation of contract to protect public interest would be an option.