World Bank Criticizes Government’s PPP Practices

The World Bank stressed, once again, today, that public-private partnerships (PPP) are particularly risky for the Albanian state, and criticized Prime Minister Edi Rama for a lack of transparency regarding PPP decision making. Hilda Shijaku, a World Bank representative, stated during the presentation of the 13th issue of the World Bank’s Western Balkans Regular Economic Report:

First, we must look at how [PPPs] affect the public debt. Second, we must see if the services offered are the right ones and whether the distribution of risk among the public and private sectors is favorable, since, in the past, not all PPPs in Albania have been successful.

Maryam Salim, Country Manager of the World Bank for Albania, stressed how important transparency from the government is:

It is important to make sure that, like in the case of Albania, we improve transparency and regulations in PPP management.

Improvements must be made regarding the way in which PPPs are assessed and decided on.

In late 2017, the World Bank came out in opposition of the government’s 1 Billion Euro PPP plan. World Bank experts have repeatedly called for a clear and transparent analysis of the 1 Billion Euro PPP plan that would demonstrate how profitable it will be for the country and its citizens.

The IMF has also criticized the Rama government for its handling of public-private partnerships, calling for a halt on PPPs and concession.