According to experts, the Infrastructure Ministry’s decision to begin procedures to terminate the contract for Vlora Airport is a symptom of Albania’s PPP scheme, carrying high financial costs for taxpayers.

The Ministry of Infrastructure and Energy announced on Wednesday that it had officially begun the procedure to terminate the concession contract for Vlora International Airport, paving the way for a confrontation with the private company in international arbitration.

The decision comes after a fierce legal conflict and physical blockades at the construction site between the two partners, “Mabco Construction” and “2A Group”, which began in the autumn of 2025 over the division of shares between them. After months of clashes, including mass fights between workers from the two companies over access to the construction site and a series of court rulings, the situation remained deadlocked even after the Supreme Court, in May 2026, rejected “2A Group’s” requests for interim measures to secure the claim, followed later by further blocking decisions at the first-instance level.

But beyond a simple dispute between partners, experts say the failure of this concession represents a genuine syndrome of Public-Private Partnerships, or PPPs, in Albania, where the risks are borne by the state and the benefits go to the private sector.

The Vlora airport project has been deeply controversial since its inception: it was signed on the eve of elections, pursued despite recommendations from financial experts, and is now stuck in a deadlock that risks leaving Albanian taxpayers with a colossal bill of liabilities.

“The initiation of the procedure to terminate the Vlora Airport contract is not an isolated failure of the Mabco–2A Group consortium, but the latest evidence of the structural problems of PPPs in Albanian infrastructure,” said Zef Preçi, executive director of the Albanian Center for Economic Research.

Faced with this situation, the government has provided no public explanations. A spokesperson for the Ministry of Infrastructure briefly confirmed the decision.

“I can only confirm to you the initiation of the procedure to terminate the concession contract for VIA. We cannot make any other comment,” he said in a WhatsApp message.

Meanwhile, businessman Behgjet Pacolli publicly accused the government of seeking to strip the investor of “the rights arising from the largest public-private partnership contract ever carried out in Albania”.

Valon Ademi, president of 2A Group, the other company involved in the construction work and the dispute, had not responded by the time this article was published.

A Favored Contract

The Vlora airport project emerged as an early electoral promise by Prime Minister Edi Rama, who pushed it forward despite financial assessments indicating low feasibility and protests from environmental organizations.

The project was built near the Narta Lagoon, a protected natural area and home to dozens of endangered bird species. The choice of this location triggered strong public opposition, as well as official reactions from the European Commission and the Bern Convention, which repeatedly warned of the high and irreversible environmental costs.

The contract was signed in April 2021 with the winning consortium, comprising businessman Behgjet Pacolli’s company “Mabco Construction SA”, the Turkish company “YDA Group” and Valon Ademi’s “2A Group”, with the state offering the concessionaire a guarantee of 138 million euros in revenues from the budget for the first 10 years. But in September 2022, the Turkish company “YDA Group” suspiciously withdrew from the project, selling its shares for just 4,450 euros to Pacolli’s company.

According to official correspondence between institutions, made public in an investigative article published by BIRN on January 27, 2026, the Ministry of Infrastructure assumed unprecedented risks by guaranteeing payment of the concessionaire’s bank loans in the event of the contract’s early termination. This concession was made during a three-day review period before the contract was signed, even though the Debt Directorate and the Ministry of Finance requested that the clauses be amended, arguing that this commitment “had no legal backing”.

According to Zef Preçi, the risk that the case will end up in arbitration with severe penalties for the budget becomes alarming precisely because of these clauses, as the contract obliges the state to repay the 56-million-euro loan to BKT in all three termination scenarios. “The risk that the case will end up in international arbitration with severe penalties is high,” Preçi stressed.

Public costs, Preçi points out, could easily rise to “hundreds of millions of euros”, considering that the airport’s assets may also have been mortgaged as collateral for a 100-million-dollar loan from “Mabco” to “Delphos Securities”, bringing a third international creditor into the equation. According to Preçi, the contract’s 5% security deposit has not functioned as an effective shield, since its execution requires court decisions and is not automatic.

The Long Legal Battle

The initiation of procedures to terminate the contract comes as the concessionaire company has been paralyzed for months by a fierce legal conflict between the main shareholder, “Mabco Construction”, and the minority partner, “2A Group”. In addition to their clashes in civil courts, they have filed criminal complaints against each other over manipulation, fraud and the transfer of shares.

In lawsuits concerning interim measures alone, at least eight different decisions were issued by all three levels of the justice system over a period of approximately nine months.

Although the Supreme Court rejected “2A Group’s” requests for interim measures in May 2026, the situation took another turn at the beginning of summer. According to VIA’s historical extract, in July 2026 the Tirana First Instance Court decided to prohibit any governing body of the company, including the Assembly and Administrator Vegim Hoxha, from joining or guaranteeing the Financing Agreement concluded between “Mabco Construction SA” and “Delphos Securities S.A.R.L”.

Earlier, the media reported that the Ministry of Infrastructure had given the parties an ultimatum to resolve their dispute and that the decision to terminate the contract came after no agreement had been reached.

The government’s decision to terminate the contract immediately prompted a reaction from businessman Behgjet Pacolli. In a public statement, Pacolli warned that arbitration was now unavoidable, since the ministry’s move “seeks to strip the investor of the rights arising from the contract”. He directly accused state institutions of allowing the rule of law to deteriorate by failing to intervene against “attempts to transfer the investor’s shares”, the “unlawful exclusion of MABCO from the management of the investment” and the “physical blocking of access to the construction site by groups acting outside the law”.

According to Pacolli, “MABCO’s” requests, made since August 2025, for an international technical and financial audit of the investment were ignored, as were the criminal complaints they filed over unlawful actions. “I have never wanted Albanian taxpayers to pay the consequences of the actions or inactions of certain officials,” he said, stressing that there was no alternative other than seeking protection under international law.

Pacolli blames his partner and the government for failing to fulfill the contract and put the airport into operation within the deadlines, accusing the ministry of citing false facts when initiating the procedure to terminate the agreement.

Experts emphasize that, in the face of this situation, institutional monitoring has been alarmingly passive. Although the conflict emerged in the autumn of 2025, the Ministry of Infrastructure waited until May 2026 to issue a 30-day ultimatum, while the monitoring and penalty clauses should have been activated much earlier.

Under the current circumstances, Zef Preçi believes that “the most rational option is not to restart at any cost, but to conduct a full reassessment of the project’s economic rationale, whose financial sustainability has been questioned from the beginning”.

Preçi offers as a possible solution a new transparent international tender for a qualified airport operator, under renegotiated terms without state guarantees, or the reuse of the infrastructure for regional aviation and logistics, thereby avoiding the heavy environmental costs in the Narta Lagoon./BIRN

The post BIRN: The Forewarned Failure of Vlora Airport Threatens Hundreds of Millions of Euros in Arbitration appeared first on Albeu.com.

Businessman Behgjet Pacolli has responded to developments related to the Vlora International Airport project. He claims that, for months, Albanian institutions have prevented his company from accessing the construction site to complete the work.

According to Pacolli, the phase of emotional reactions has now ended, and the case will be pursued based on facts, documentation and legal avenues.

He said that, since March, state institutions have been contacted daily in their capacity as the contracting party. According to him, the company has asked them to fulfil their contractual obligations, provide the necessary conditions and grant it access to the construction site so that the remaining work can be completed and the airport brought into operation.

Pacolli said he had also approached the justice authorities, asking them to conduct full and independent investigations to identify those who, in his view, are responsible for the situation that has arisen.

He stressed that all options had been explored to avoid arbitration proceedings, which, he warned, would be very burdensome for the parties.

The Kosovar businessman stated that the concession agreement for Vlora Airport was signed in compliance with Albanian law and international standards. According to him, its purpose was the construction, completion and operation of the airport.

However, Pacolli said the contract was not allowed to proceed to the operational phase and, as a result, failed to fulfil the purpose for which it had been concluded. For this reason, he announced that the rights arising from it would be defended through judicial and legal mechanisms.

Accusing the institutions of obstructing the company for several months, Pacolli said an entity that was physically prevented by the State Police from entering the construction site and carrying out the work for which it had been contracted could not be held accountable for delays.

According to him, the airport was close to completion, with only the installation of several systems, final testing, cleaning and preparations for the start of operations remaining.

Pacolli described this as the first project in Mabetex’s history that has not been completed. He explained that the reason was not a lack of technical, financial or professional capabilities, but the fact that the company had been denied the right to continue the work.

He called for the blocking of the construction site and the failure to honour contractual obligations to be subjected to an institutional and legal investigation.

According to Pacolli, MABCO has been forced to defend itself against attempted fraud, rulings by influenced judges that he described as contradictory and unlawful, as well as institutional indifference toward or support for individuals who, according to him, were acting illegally and taking the law into their own hands.

He added that all facts and documents would be submitted to the legal representatives and the competent courts. Pacolli expressed confidence that due legal process would clarify where responsibility lies.

In conclusion, Pacolli said the citizens of Albania are owed full transparency regarding every fact and document, including the manner, timing, location and reasons behind their entire legal journey.

The post Pacolli on Vlora Airport: Mabetex’s First Failure, We Will Take the Case to Arbitration and Court appeared first on Albeu.com.

Behgjet Pacolli has responded to reports that the Ministry of Infrastructure and Energy has begun procedures to terminate the concession contract for Vlora International Airport.

The businessman warned that if the decision is confirmed, the case will be taken to international arbitration.

Pacolli said that MABCO Constructions SA has so far received no official communication from the Albanian authorities and learned of the development through media reports.

According to him, for a strategic investment of this scale, it is unacceptable for the investing company to be notified by the media rather than by state institutions.

He said MABCO’s financial exposure has exceeded €320 million. Pacolli also claimed that the company had fulfilled almost all the obligations arising from the contract as early as May and was close to obtaining certification for the airport when it was prevented from continuing the work.

According to the businessman, the delays and financial damage were caused by institutional obstacles, negligence and unlawful actions by the Albanian state. He described the situation as paradoxical, arguing that the institutions first blocked the completion of the project and are now attempting to use that obstacle as grounds for terminating the contract.

Pacolli announced that if the procedure to terminate the contract is formalised, MABCO will pursue all available legal avenues. These include commercial arbitration and international arbitration against the Republic of Albania.

According to him, arbitration should not be viewed as a threat, but as the legal consequence of a situation created by the unlawful actions and omissions of those responsible for upholding the law and protecting the investment and the public interest. Pacolli added that any financial costs arising from such proceedings would be paid by Albanian taxpayers, businesses and the state.

Full statement:

Vlora International Airport

Earlier today, news emerged that the Ministry of Infrastructure and Energy had begun the procedure to terminate the Vlora International Airport Concession Contract. To date, the Contracting Authority has not sent MABCO Constructions SA any official notification. For a strategic project of this importance, it is unacceptable for the investor to receive information from the media rather than directly from state institutions.

If the report is confirmed as true, this will mean that the Albanian state has chosen the path leading to international arbitration.

MABCO has made every effort to avoid this scenario by seeking dialogue, solutions through the institutions and respect for the law. However, these efforts have been blocked by the negligence, irresponsibility and unlawful actions of certain officials; by individuals who have acted and continue to act outside the legal framework under institutional protection; as well as by the failure of an influenced justice system to guarantee the investor’s protection.

MABCO’s financial exposure exceeds €320 million, excluding lost profits and legal expenses. As early as May, the company had fulfilled almost all its contractual obligations and was on the verge of obtaining certification for the airport, but it was prevented from continuing the work.

Despite the Supreme Court’s ruling, MABCO was kept out of the construction site for several months while the State Police remained present there. During this period, valuable equipment was damaged and destroyed, while some of it was stolen.

This is where the paradox lies: on the one hand, the institutions prevented the project from being completed, while they now intend to present that same obstacle as grounds for terminating the contract. Such an action is contrary to the Supreme Court’s ruling, the Concession Contract and the Bilateral Investment Protection Agreement between Switzerland and Albania. It also runs counter to the basic legal principle that no one may benefit from their own unlawful conduct.

If the procedure is confirmed, MABCO will use every legal remedy and all the evidence in its possession to hold accountable everyone who contributed to creating this situation. This includes commercial arbitration as well as international arbitration against the Republic of Albania.

At no point have I wanted Albanian taxpayers to bear the costs of the negligence, irresponsibility and unlawful decisions of certain officials. Despite this, they continue to show indifference, as though it did not matter whether Vlora International Airport began operating several months or several years late, and as though the economic consequences would not fall on the public.

Senior institutional officials act as though they bear no individual responsibility because they know they will not pay anything out of their own pockets. The costs will be borne by Albanian citizens, businesses and the state itself. This culture of impunity is seriously harming the public interest, trust in institutions and Albania’s investment climate.

Arbitration does not constitute a threat. It is the reality created as the legal consequence of the unlawful actions and omissions of those whose duty it was to work honestly, respect the law and protect the investment and the public interest.

MABCO has always acted, and continues to act, solely in accordance with the law, respecting it without compromise.

The post Infrastructure Ministry Begins Procedures to Cancel Vlora Airport Project, Pacolli Responds: We Will Take It to Arbitration appeared first on Albeu.com.

With this ruling, the Supreme Court restored MABCO’s management rights in the concession company, overturning the previous decisions of two levels of the judiciary and clearing the way for its return to leading the project.

The clash between MABCO and 2A Group had led to a deadlock in the management of the concession company, a situation that directly affected the progress of the works and caused delays in the implementation of one of the country’s most important infrastructure investments.

It now remains to be seen whether MABCO’s return to the site will end the dispute between the parties and create an opportunity to speed up the works, with the aim of meeting the deadlines for the completion of Vlora Airport.

The post Supreme Court decision returns MABCO to the Vlora Airport project, work expected to resume appeared first on Albeu.com.

It is reported that Pacolli’s employees clashed with security guards from Valon Ademi’s company “2A”, then forcibly entered the construction site and removed the other workers.

In a statement on June 21, Behgjet Pacolli declared that “MABCO” owns 98% of VIA’s capital shares and is the main entity bearing all obligations, responsibilities and exposures related to the concession, in professional, technical, referential and financial terms. “MABCO” bears the main financial exposure in this project, in an amount exceeding 310 million euros.

Pacolli also warned that any action or inaction that obstructs the implementation of the Assembly’s decisions dated 18.06.2026 would be considered a serious violation of legal obligations and would bring full legal, civil and criminal consequences for all responsible persons.

The post Tensions at Vlora Airport/ Clashes between representatives of MABCO, subcontractors and security guards! Workers forcibly removed appeared first on Albeu.com.