An international arbitrator in London did for Vlora Airport what the sleepy Albanian justice system has not dared to do for months: he froze the conflict between private companies and the government before the fine worth hundreds of millions of euros became a fact and the bill remained with the state budget.
On September 16, the Emergency Arbitrator of the International Court of Arbitration of the International Chamber of Commerce (ICC), Cecilia Carrara, issued a preliminary injunction in the case brought by MABCO Constructions against the Ministry of Infrastructure and Energy.
MABCO, the Swiss company of the Mabetex group, owns 98% of Vlora International Airport, while 2A Group owns 2%.
The order prohibits the Ministry of Infrastructure and Energy from taking other actions regarding the termination of the contract that could aggravate the conflict or render the procedure invalid.
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Arguments/ Why Albania may lose the Vlora Airport arbitration
August 11, 15:35
MABCO turned to the ICC on September 7, after the Ministry had announced the termination of the concession contract. According to the arbitration document, the termination was to become effective on September 17, just one day after the order was issued. This deadline also explains the urgency of the proceedings.
After the termination of the contract took effect, the ministry could intervene in the project, take possession or operational control of the site, assets and works, demand the delivery of assets and select an operator to replace the existing concessionaire.
MABCO argued that if this happened, the emergency procedure would lose its meaning. In London, the consideration of the termination of the contract would continue, while in Vlora the government could have taken over the airport and installed another operator.
The arbitrator acknowledged that there was a risk that the government would take control of the properties or replace VIA with a successor operator.
Also in the file were materials submitted by MABCO that the arbitrator described as “some evidence suggesting that MIE may be considering appointing a successor operator.”
Point 38 orders the ministry not to take any action regarding the termination of the concession, which otherwise means that the government cannot turn the termination of the contract into a fait accompli while the arbitrator is considering whether to stop it.
The intervention of the court in London changes the course of the conflict. Without it, the scenario was that the government would terminate the contract, take over the airport, remove the concessionaire and eventually appoint another operator. MABCO would then continue the battle in arbitration, this time not only for control of the airport, but also for the damage it claims was caused by the Albanian state.
MABCO's claims for Albania's financial exposure have run into hundreds of millions of euros, with potential damages claimed as high as 500-700 million euros, but the financial risk will be discussed in an arbitration dispute on the merits. Thus, the measure that today protects the interest of a private company also protects a public interest.
The contrast with what happened months ago inside Albania is obvious.
The Vlora Airport conflict has been going on for months. It started over control of Vlora International Airport, continued with court decisions that affected the rights of the 98% shareholder, the blocking of the construction site, institutional intervention, and then the Ministry's procedure for the cancellation of the concession.
In the SPAK investigation files regarding the lots of the new Ring Road in Tirana, communications between people related to this story emerged. SPAK has administered in its investigations materials involving Arbër Abazi and Belinda Balluku, while Abazi's connections with Valon Ademi and the roles of people involved in VIA are elements that require verification to determine whether the conflict was a consequence of corrupt interests.
These are materials that SPAK has in its file, but which it must investigate if the materials it has raise suspicions of criminal offenses. If the investigation results in certain actions being the product of a criminal offense, their continuation could result in hundreds of millions of euros in damage for Albanian citizens.
Prosecutor Klodian Braho and SPAK must clarify what materials they have about Vlora Airport, what they show, and whether they created a basis for intervening before the conflict reached the point where the Albanian state risked another international battle.
If the money disappears, then justice for the Vlora airport will cost Albanian citizens a lot. Albania proved this with the incinerators, where investigations brought charges and brought those responsible to court, but in the meantime the contracts had been signed and the budget money had been paid.
In Vlora, there is still time for the story to end the same way. It remains to be seen whether SPAK will investigate what happened before the damage is done, or will arrive again late when the damage has been done./Lapsi.al
