Law no.9663, dated 18.12.2006 “On Concessions”, amended, Council of Minister Decision no.27 dated 19.01.2007 amended The purpose of this law is to create a favorable framework for promoting and facilitating the implementation of concessionaire projects, enhancing transparency, fairness, efficiency, long-term sustainability in development of infrastructure and public service projects. This law is implemented for granting of concessions by contractual authorities for the economic activities in the sectors as: transport, generation and distribution of energy, telecommunication, and tourism.

Identification of Potential Concessions

1. The identification of potential concessions shall be done by competent ministries, and local government authorities in cooperation with the Concessions Treatment Agency.

2. Potential concessions may be identified by solicited proposals or unsolicited proposals by a proponent.

3. In case of solicited proposals, the competent authorities shall carry out an analysis where the potential concession should be implemented. This analysis shall be based upon the principles of value for money, alignment of potential Concessions with the national strategic objectives, as well as with sector strategic objectives, the technical and commercial feasibility of the potential Concession and its ability to attract potential Concessionaires and private financing.

4. In case of unsolicited procedures the proponent shall carry the analysis by evaluating the elements for each case

5. When the competent authorities consider that a concession should be implemented they approve the commencement of selection procedures.

6. The Council of Ministers shall decide the competent authority for each concession.

Preselection Procedure

rocedure

1. The contractual authority shall prepare the invitation for participation in preselection procedure and the pre-selection documents. The invitation to participate in the pre-qualification procedure shall be published in the Public Announcements Bulletin, as well as in the international and local press.

2. The contracting authority performs the qualification of each bidder that has submitted an application for pre-qualification, in accordance with the criteria set forth in the prequalification documents.

3. The contracting authority shall publish the list of pre-qualified bidders in the Public

Announcements Bulletin within 30 days from taking the decision.

The contracting authority shall invite the preselected bidders to submit the proposals and the adequate documents that includes

a. General information

b. Specific information that includes at least

- the project and project specifications

- specific qualification terms and evaluation criteria

The contracting authority requests specific information that includes

TYPE 1 FORM FOR UNSOLICITED PROJECT-PROPOSALS I. TECHNICAL DOCUMENTS

1. The project must contain:

• Feasibility study on technical solution for an optimal exploitation of water potential

• A detailed analysis of costs evaluation

• Business Plan

• The graphic of project execution

• Election of machineries and equipments that will be used

• A study on the way of linking with the system

• Graphic material

2. Hydrologic study

3. Geologic study

4. Business Plan

5. Report on Environment impact

6. Information from the Water Basin Council of the area where the concession will be executed, about the priority and the water amount that can be used for electric energy production

7. Respective licenses of the specialists that have completed the studies (notarized)

II. LEGAL DOCUMENTS

1. Authorization from the official representative that will follow the procedure up to the concessionary contracts undersigned

2. Court Decision for the company registration as a legal person.

Note:

The Project must be done from licensed studios. The projectors licenses must complete the criteria defined from the State Technical Evaluation Group. In respect to the Rule “For the management of the documentations and the examination of requirements for granting a concession “, the required documentation must be in 2 (two) copies, putted inside two files where must be written the address of the interested subject and also the company’s stamp.

The Evaluation will be done from the State Technical Evaluation Group. In every technical document must be signed the number of pages stamped with the subject stamp.

Address: Ministry of Economy, Trade and Energy: www.mete.gov.al

1. Within 90 days of receipt and review of such unsolicited proposal, the contracting authority shall determine whether the project is considered to be in the public interest.

2. If the concession project is considered to be in the public interest, the contracting authority shall invite the proponent to submit additional data, to make an evaluation of the proponent’s qualifications and the technical and financial

feasibility of the project;

3. Within 120 days of the invitation from the contracting authority, the proponent has to submit a technical and financial feasibility study (including but not limited to a financial model and a project financing plan), an environmental impact study and satisfactory information regarding the concept or technology contemplated in the proposal

Initiation of a Selection Procedure shall be done as follows:

1. The contracting authority shall, within 6 months of receipt of the documentation

decide to accept or reject the potential concession project derived from the

unsolicited proposal.

2. If the unsolicited proposal is accepted by the contracting authority, the contracting

authority shall initiate a competitive selection procedure

3. The proponent shall be invited to participate in the competitive selection procedure

and upon decision of the Council of Ministers; it shall be awarded a bonus on

its technical and/or financial score during the competitive selection procedure

up to a maximum of 10% of the points.

Administrative Review Procedures

1. The Concession Treatment Agency is the competent authority that supervises the Concessionaire procedures, and conducts administrative review of the complaints.

2. For each complaint should be paid a fee in the amount of 10% of the bid security in advance.

3. Concession Treatment Agency concludes the administrative review within 30

calendar days from the submission of the complaint and notifies the contracting

authority and the petitioner about the decision.

1) The petitioner is entitled to take an appeal against the decision of the Agency within 30 days since the notification at the Court of Tirana (Administrative Section). NATIONAL