Smart City, the contract without competition and the 140 million debt that returns to Abu Dhabi

While the public debate about the “Smart City” project remains heated, the company that will benefit from 140 million dollars from the pockets of Albanian citizens has already been created. Presight AI Ltd, the Arab company that secured the controversial contract, officially established its branch in Albania, just three weeks ago, reports Albeu.com.

Presight AI Ltd Albania Branch has been registered at the National Business Center with a clear and single object: the implementation of the “Smart City” project in the Republic of Albania. The official extract of the company states that the activity includes the supply of computer equipment and software, installation, implementation, as well as support and maintenance services — in short, everything that the hefty contract of 140 million dollars foresees.

A 140 million dollar project, a zero tender

As Albeu.com learns, the “Smart City” project foresees the installation of about 5 thousand monitoring cameras in the main cities of the country, as well as the supply of the State Police with about 3 thousand body cameras. All this, according to the government, to increase security and intelligent traffic management.

But behind the technological facade lies a financial scheme that burdens Albania with a heavy debt. In March of last year, the government approved in Parliament a loan of 118 million dollars from the Abu Dhabi Fund, with a repayment period of 15 years and an interest rate of 4 percent. The irony is that the money does not stay in Albania for a single day: it is returned to Abu Dhabi to pay Presight, without any competitive procedure.

The contract for the implementation of the project was entrusted to the Ministry of Interior, which set up a special negotiating group. But the reluctance to sign a contract without a tender and with a staggering cost brought tensions to the highest levels of government.

In November, Prime Minister Edi Rama was seen publicly irritated on the streets of Rome, shouting on the phone at Deputy Minister Julian Hodaj about the delays in closing the contract. A few days later, Hodaj was dismissed. In his place was appointed Xhemal Qefalia, who, unlike his predecessor, did not hesitate: on December 19, the signature on the contract was thrown.

What is bought with 140 million dollars?

According to official documents, the project includes the installation of artificial intelligence platforms for urban management and traffic, the construction of a control center, as well as equipping the police with monitoring technology.

In detail, the contract provides for:

2,239 ANPR cameras for automatic license plate recognition,

2,602 PTZ cameras for traffic monitoring,

3,816 body cameras for State Police employees,

100 intelligent radars and 100 noise sensors for monitoring speed and road safety.

The company will also provide maintenance services for four years.

Cost inflation and lack of transparency

The cost of the project raises serious questions. $31 million will be paid for software licenses alone. Hardware and infrastructure cost $62.4 million. $8 million goes for professional services and $17.1 million for maintenance — all without VAT.

In total, the bill amounts to $140 million.

Market experts note that ANPR and PTZ cameras are easily found on the market at prices ranging from $500 to $1,500 apiece. In this light, the figure of over $62 million for about 8,000 cameras seems blatantly inflated.

But when there is no competition, cost inflation is not a surprise. The scheme is familiar: the decision comes from above, firms are rejected, and citizens pay the bill.

In other words: The company was created so that $140 million could change hands. /albeu.com/