The state can also grant the production of weapons under concession

A draft law aims to create a state company for the production, demilitarization and trade of weapons, ammunition, equipment and military technologies also provides that the latter may enter into a relationship with a third party that may be either a joint operator or a public private partnership .

The company that in this case according to the draft law is named "Kayo" sh.a. in its article 10, it underlines "relationships with third parties" giving some specifics case by case.

Thus, according to point 1 of this article, the company has the right to enter into relations with third parties, state or private entities, domestic or foreign, in all stages of the development of its activity, in accordance with the criteria and procedures determined by this law.

In the following, this company itself or at the request of third parties cooperates with private entities through participation in the union of economic operators or in public private partnership, as well as through various contractual agreements allowed by civil and commercial legislation.

"The terms of the Company's cooperation with private entities are approved case by case by decision of the Council of Ministers, according to the Company's proposal, through the minister responsible for defense. After this approval, the Company follows the procedures according to points 4, 5 and 6 of this article. In cases where the Company seeks partnership, the procedures for the selection of the private partner are competitive procedures, developed by the Company, in accordance with the principles of transparency, proportionality, efficiency, preservation of classified information, profitability, economic and commercial feasibility of projects, treatment of equality, reciprocity and legal security, according to the provisions of this law and the internal regulatory acts of the Company" is stated in article 10.

The draft law underlines that in cases where requests for cooperation from other state or private parties are presented to the Company, the Supervisory Council authorizes the executive director to set up the offer negotiation group, which is charged with evaluating and negotiating the submitted request, in accordance with the strategy of the development of the Society. The report of the negotiation group is presented to the Supervisory Council of the Company, which approves or disapproves the cooperation in the specific case.

"In cases where the cooperation is related to the state's interests in the field of security and defense, evidenced in the strategic documents, as well as in cases where this cooperation is considered an essential interest of the state by the Interministerial Committee of Security and Defense, the Society can directly select a subject public or private with which it will create a partnership.

In these cases, the Supervisory Council authorizes the executive director to order the establishment of the negotiation group, which, in accordance with the decision of the Interministerial Security and Defense Committee, evaluates the entity with which it negotiates directly. The report of the negotiation group is approved by the Supervisory Council" is stated in point 6 of article 10.

The same stipulates that in the selection of the private entity with which it creates a partnership in the production and trade of weapons and military technologies, the Company ensures, as the case may be, that:

a) the subject fulfills the necessary criteria for the equipment with permits and licenses for the production and trade of weapons and military technologies, including the security of facilities, technical, operational and financial capacity;

b) the entity guarantees the implementation of security standards and control of weapons and military technologies, in all stages of production and trade, including their storage, transport and transfer;

c) the subject guarantees reporting of its activity, in accordance with local and international standards of security and control of weapons and military technologies;

ç) the subject guarantees respect for the confidentiality of data in the Company's activities;

d) the subject meets the criteria of reliability, clean image and reputation in the sector of production and trade of weapons and military technologies.

9. In partnership cases, in order to guarantee its interests, the Company, regardless of its participation in these entities, exercises the right of veto on the issues, as follows:

b) capital increase or decrease;

ç) reorganization and dissolution of the company;

d) the involvement of other shareholders.

"In the partnership created, the Company has the obligation to guarantee the fulfillment of legal requirements, the prevention of possible misuse of weapons, ammunition, equipment and military technologies, as well as the prohibition of illegal competition within the territory of the Republic of Albania, exercising the right of veto in decision-making.

In cases where the Company enters into a partnership with other entities, in order to guarantee the legal security of the state real property transferred to the Company, except with the approval of the Council of Ministers, the transfer through sale is prohibited, as well as leaving it as a guarantee, collateral, pledge or mortgage" is stated in article 10./ Monitor