“We are examining to build some road segments under public private partnership. The state budget cannot afford works such as the Durres-Kukes highway which needs another $200 million,” says Economy Minister Arben Ahmetaj.
TIRANA, July 15 – The Durres-Kukes highway linking Albania to Kosovo, estimated to have cost a staggering 1.3 billion euros, is expected to be Albania’s first toll road under some changes to the concession law approved this week by the ruling majority left wing MPs.
“We are examining to build some road segments under public private partnership. The state budget cannot afford works such as the Durres-Kukes highway which needs another $200 million,” said Economy Minister Arben Ahmetaj at a parliamentary committee this week, introducing the bill which targets public-private partnerships on the construction and maintenance of roads due to rising costs.
Majority MPs of the economy committee turned down some proposals by the Finance Ministry to introduce new taxes on cars and SIM cards which would bring an extra $6 million to the state budget.
The concession of the Durres-Kukes highway had been postponed several times during the past couple of years.
In early 2012, five companies were prequalified to submit bids to upgrade, operate and maintain the Milot-Morine segment of the Durres-Kukes highway but the tender was postponed due to general elections of 2013.
Operational since June 2009, the Durres-Kukes highway and its 5.5 km twin-bore Thirre tunnel is estimated to cost government around 4 million euros annually in maintenance.
The concession was initially scheduled to cover a 118 km segment from Milot to Morine, the major part of the Durres-Kukes nicknamed the ‘Highway of Nation’ also including the 5.5 km Rreshen-Kalimash tunnel.
“Road tolling offers the possibility of raising additional revenue for the road sector, and provides a dedicated source of finance for a particular road. Revenue from tolling is also independent from the annual budgetary process, and therefore increases the stability of road sector revenues, though toll revenues remain exposed to traffic risk,” says London-Based EBRD which is supporting the Albanian government in the reform of the road sector.
The Durres-Kukes highway became fully open to traffic only in October 2010. Its major 60 km Rreshen-Kalimash segment was built by Bechtel-Enka, a US-Turkish consortium.
Drivers using the Durres-Kukes highway are expected pay a maximum of 5 euros after the concessionaire is selected making it Albania’s first toll road.
Kosovo has also completed its part of the Highway of Nation linking its capital Prishtina to the Morine border crossing point with Albania.
