Albanian incinerators scandal

According to BIRN "the incinerator concessions are the most controversial of a string of so-called ‘public-private partnerships’ undertaken by Rama’s government and, according to estimates of Albania’s Supreme State Audit, could cost Albanian taxpayers more than 350 million euros over the next 30 years.

"[1] Senior and high-ranking members of the state administration are accused of misappropriating public funds in favor of certain businessmen from whom they received financial compensation for awarding the concession contracts for the Elbasan, Fier and Tirana incinerators.

SPAK’s investigation was launched on 2021 following a criminal report filed by the Democratic Party (PD) and the Socialist Movement for Integration (LSI).

According to the Japan International Cooperation Agency, the per capita increase in municipal waste in Tirana, especially in the last decade, is comparable to or higher than in other major cities around the world.

Specifically, in February 2014, the "Government Commission for Integrated Waste Management" declared Albania to be in a state of environmental emergency, paving the way for the construction of incinerators.a On 5 February 2014, in the presence of Prime Minister Edi Rama, the inter-ministerial "Committee on Integrated Waste Management" was convened, which, on the proposal of the Deputy Minister of Urban Development and Tourism, Gjon Radovani, declared the country in an environmental emergency.

According to Manjani, inter-ministerial committees are policy advisory mechanisms where no binding decisions are taken, especially as according to the Albanian Constitution only the government can declare a state of emergency.

The company promptly secured a loan from "Bank Credins", backed by the concession agreement, and commenced construction in March 2015 on the Elbasan landfill site, which was formerly the location of the old metallurgical plant.

[10] In the period preceding 31 December 2021, which marked the conclusion of the seven-year concession contract, the municipalities of Elbasan, Librazhd, Prrenjas, Belsh, Gramsh, Cërrik and Peqin, in collaboration with the state administrator, established the "ECO-ELB" sh.a.

[citation needed] At the same time, and following the same pattern as the incinerator in Elbasan, the company "Integrated Technology Waste Treatment Fier" (founded on 3 October 2015 by Christian Zotto, owner of "Integrated Technology Service LLC[15] and Italian Ernesto Granelli, owner of "Energy Recuparator Spa"[16]) signed on 24 October the BOT concession contract with the Ministry of the Environment for approximately 35 million euros including VAT.

[18] The area where the incinerator was to be built was defined by the Municipality of Fier and located in the south-eastern part of the administrative unit of Mbrostar, in Verri in the Myzeqe plain.

[citation needed] Ιn October of the same year, the "National Council of the Territory" decided to approve the construction permit for the incinerator in the village of Verri.

[21] In 2022, the SPAK prosecuted 21 individuals and 12 legal entities on charges of abuse of power, active and passive corruption of high state officials or local elected officials, laundering of proceeds and proceeds of criminal offence or criminal activity, breach of duty, passive bribery of persons performing public functions, VAT fraud.