SERVICE - FEE MECHANISM IN THE PPP PROJECTS

Abstract

Today it is clearly evident that the governments, of every level, cannot complete all the growing needs of the population for the main services, by acting alone. The need to ask for asking support from another sector, for the completions of these services constitutes the necessity for a collaboration with the private sector. The partnership of the public sector with the private one is one of the most promising forms for resolving different problems. This collaboration aims at recognizing the benefits that those two sectors can have, from the financial resources, the experience and professional knowledge per the base public services aimed for the whole citizens. One of the most important problems of a PPP Project is the considering of service Fee mechanisms. Albania is now improving the legal frame to develop PPP projects not only from the central government but from the local Authorities too. The local Authorities have not still the capacities to solve the problems with the Fee calculating. This Paper will consider the issues relevant to the Service-Fee mechanism: ï‚· Scope of services ï‚· Service-Fee payment structure ï‚· Structuring Services Fees based on : - Usage/demand These issues will help the local Authorities in Albanian to understand the difference of the calculating Fees for different projects of the PPPs.