Becchetti blocks "Albcontrol" 135 million euros for Arbitration, the 74 million euro loan is not even repaid

The amount that Albcontrol, the state-owned company that manages air traffic, has failed to collect due to the blocking of its accounts at Eurocontrol, as a result of the conflict between the Albanian government and the Italian investor, Francesco Becchetti, has reached 13.5 billion lek at the end of 2024, or 135 million euros according to the company's official balance sheet.

Including pending bank interest, the amount reaches 13.7 billion lek.

"During 2024, as well as during 2023, the company did not collect any revenue from en route and terminal charge services as a result of a decision by the Brussels Court of First Instance to block revenue from en route and terminal charge services provided by Albcontrol," the description of the financial statements states.

The amount that Albcontrol fails to collect is increasing year after year. From 607 million lekë in December 2020, it reached 2.9 billion lekë in 2021, increased to 6.7 billion lekë in 2022, to 10.5 billion lekë in 2023, and 13.5 billion lekë in 2024.

Albcontrol should have received this income from its normal activity, landings and overflights for the period 2021-2024 from Eurocontrol, a pan-European organization dedicated to supporting European aviation, headquartered in Brussels.

Initially, these liabilities were in the item "Accounts receivable from airlines", which represents the company's collection rights, but the money for this income has not been collected, while in 2024 they were transferred to the item "Pending customers".

In 2024, the company reported revenues of 3.6 billion lek, up 9% compared to the previous year, as a result of the revival of air activity after the pandemic.

Personnel expenses, meanwhile, increased by 47%, reaching 1.47 billion lek.

Took a 74 million euro loan to finance the activity, repaying nothing in 2024

The inability to collect money from the services it provides has forced Albcontrol to obtain loans and assistance from state institutions in 2023. In 2024, the company reports that it has not yet started repaying the loans, while it will have to pay them within the first 7 months of 2025.

At the end of 2024, Albcontrol had a loan principal of 7.4 billion lek to be paid, up from 2.4 billion lek in 2022 and unchanged from 2023. Of this amount, 421 million lek was lent by the General Directorate of Road Transport Services.

For this loan, the repayment deadline has been extended to the first 6 months of 2025, along with the interest and commissions that will be paid to the lender.

The government, for its part, has provided financial support of 3 billion lek through a normative act approved in December 2023. The company will return the amount received by 31.07.2026 (repayment will be made in 3 equal six-monthly installments starting with the first installment payable on 31.07.2025).

Another 4 billion lek has been provided in financial support by decision of the Shareholders' Assembly, respectively 2 billion lek in December 2022 and November 2023. Albcontrol's shareholder is the Ministry of Economy, Culture and Innovation.

"During 2024, the Company did not repay installments on loans received and the principal balance remains unchanged from that of 2023," the financial report states.

Conflict with Becchetti, the state still recognizes a liability of 108 million euros

The genesis of the clash between the state and the investor began in June 2015, when Francesco Becchetti's assets were frozen.

The freezing of these assets also led to the closure of Agon Channel television, an element that was used by Beccheti to take the case to Arbitration.

Albania's confrontation with Italian investor Francesco Becchetti at the International Center for Settlement of Investment Disputes ended with a decision in his favor, awarding him compensation of 110 million euros in 2020.

On May 26, 2021, another request from Albania was filed at the International Center for Settlement of Investment Disputes (ICSID) regarding the dispute with Italian investor Francesco Becchetti, where a request for correction of the annulment decision filed by the Republic of Albania was registered.

But in April 2023, Becchetti finally wins the Arbitration with the Albanian government.

The latter, after inviting a lawsuit with the Albanian government for an amount of 110 million euros, is aiming to collect money in the accounts that the Albanian state has abroad, one of which is Albcontrol's account at Eurocontrol in Brussels, which has been frozen since 2021.

In total, the Albanian Government faces a bill of almost 180 million euros from lost cases and those in process in international arbitration, with various businesses, according to data from the Ministry of Finance for the end of 2024. About 60% of this amount is the obligation for the "Becchetti" case alone.

Finance still recognizes this amount, owed to the Italian investor, as a contingent liability, which includes possible financial obligations that may be imposed on the Albanian state as a result of open cases in international arbitration courts, in the event that the decision is given in favor of the plaintiff against the state./ Monitor