Skënderbeg Square, Phase II: Fusha shpk Wins Tender without Competition

The Bulletin of Public Procurement today published the winner of the second and final phase of the urban requalification of Skënderbeg Square. As in case for the previous two tenders relating to this project, Fusha shpk, a construction company, has won the tender offering a bid practically as high as the maximum available funds. However, in contrast with the previous two tenders, no other companies placed a bid; Fusha was the sole bidder and winner by default.

For the second phase of the urban requalification of Skënderbeg Square, Fusha will be paid 978,878,878,78 lekë (~€7.1 million), or 99.9% of the maximum funds available. Previously, the same company also won the tender for the underground parking garage/farmer’s market, again offering a price at 99.0% of the maximum, as well as the first phase of the urban requalification project, also at 99.0% of the maximum budget.

In total, Fusha will be paid 1,729,134,735 lekë (~€12.6 million) for the entire prestige project. Although predating the Tirana Masterplan, the reconstruction of the central square of Tirana is already turning out to be one of the most costly architectural interventions in the city’s history. It is partially so expensive owing to the fact that the public procurement procedures followed in this case have led to the unimaginable and unlikely situation of the same company winning three times with a bid 99,0% or higher of the maximum budget set by the government.

Public procurement procedures are in place to guarantee the government a competitive price on the market, but in this case, it seems that the conditions were set in such a way that for the latest tender other companies didn’t even bother to apply.