Albania Revives Saranda International Airport Project with New Bid After Initial Setback
TIRANA, October 28
Albanian authorities have relaunched the bidding process for the design, construction, operation, and maintenance of the highly anticipated Saranda International Airport (SIA). The Public Procurement Agency (APP) announced on October 26 that qualified investors now have until November 26 to submit proposals. This follows a failed initial attempt to attract bids, despite contract revisions and two deadline extensions.
Project Overview
- Estimated Value: €34.32 million (VAT excluded)
- Contract Duration: 35 years (including a Build-Operate-Transfer framework)
- Location: Vurgu Plain, 6 km from Saranda, at 20 meters above sea level
- Project Type: Greenfield investment (new infrastructure on undeveloped land)
The airport aims to bolster tourism in Albania’s southern Riviera, a region famed for its beaches and proximity to UNESCO sites like Butrint. Saranda, a coastal hotspot, currently relies on a 3-hour drive from Corfu’s international airport, limiting its accessibility.
Why the First Bid Failed
The initial tender, closed on October 14, saw no submissions despite extended deadlines. Analysts speculate that investor hesitancy may stem from:
- Financial Uncertainty: High upfront costs for a Greenfield project.
- Regulatory Challenges: Navigating Albania’s evolving PPP (Public-Private Partnership) framework.
- Market Conditions: Post-pandemic recovery concerns in the aviation sector.
The government has not disclosed specific revisions to the tender terms but emphasized “streamlined procedures” to attract global developers.
Strategic Importance
The SIA is a cornerstone of Albania’s infrastructure agenda, with goals to:
- Boost Tourism: Serve 500,000+ annual visitors to Saranda and nearby Ksamil.
- Enhance Regional Connectivity: Complement existing airports in Tirana and Kukës.
- Stimulate Economic Growth: Create jobs and attract ancillary investments (hotels, logistics).
Key Challenges
- Environmental Concerns: The Vurgu Plain’s ecological sensitivity may require strict compliance with EU sustainability standards.
- Competition: Nearby Corfu Airport (Greece) already serves the region.
- Timeline: A 35-year contract demands long-term investor confidence in Albania’s political and economic stability.
Next Steps
Interested firms must submit bids by November 26, 12:00 PM local time, via the APP portal (Reference: REF-09417-10-25-2021). Successful bids will be evaluated on technical feasibility, financial robustness, and environmental compliance.
Why This Matters
The SIA project underscores Albania’s push to modernize infrastructure and position itself as a Mediterranean tourism hub. If successful, it could transform Saranda into a year-round destination, reducing seasonal economic fluctuations.
For investors, the 35-year concession offers a rare long-term opportunity in a high-growth region. However, risks tied to regulatory frameworks and ROI timelines remain critical considerations.
Photo by Jordi Moncasi on Unsplash