The Vlora International Airport concession is heading towards a new legal clash. The Vlora International Airport (VIA) company is expected to address the London Arbitration, requesting the suspension of the procedure initiated by the Albanian government for the termination of the contract. VIA's request does not aim at this stage to obtain compensation, but to block the termination of the contract, through a security measure. If the request is accepted, the procedure for terminating the concession could be suspended until further consideration of the dispute.
Before taking the matter to arbitration, VIA activated the mechanism provided for in Article 21 of the concession contract. The company requested that the dispute with the Ministry of Infrastructure be addressed through consultations and negotiations between the parties. The government did not accept this approach and argued that the situation did not constitute a contractual dispute that could be resolved through this mechanism. According to the Albanian party, the concessionaire’s claims were in conflict with the contractual obligations, official reports and data managed during the implementation of the project.
Shortly afterwards, the Ministry of Infrastructure officially announced the launch of the procedure for terminating the concession contract, referring to the failure to meet the deadlines for the completion of the airport.
The clash with the government also stems from a long-running conflict between concession shareholders. Disputes between MABCO, linked to businessman Behgjet Pacolli, and 2A Group have resulted in legal proceedings and have affected the continuation of the works. The government had previously requested that the parties resolve their conflicts so that the project could continue. However, the dispute was not resolved and the works remained suspended.
On the other hand, MABCO has announced another arbitration process, this time with the aim of seeking compensation from the Albanian state in the event of termination of the contract. Behgjet Pacolli has publicly stated that he prefers a solution through dialogue, but has opposed the way the institutions have acted towards the investment.
Two possible battles in arbitration
If VIA formalizes its request, the Vlora Airport case could face two different processes: one for the suspension of the contract termination, requested by VIA, and another potentially for damages, warned by MABCO. Thus, the conflict over the airport no longer remains just an issue between the government and the concessionaire. The clash has also extended to the courts and now risks turning into an international arbitration process, with potential financial and legal consequences for all parties.
