{"id":26210,"date":"2026-05-19T14:07:27","date_gmt":"2026-05-19T12:07:27","guid":{"rendered":"https:\/\/altax.al\/?p=26210"},"modified":"2026-05-19T14:11:27","modified_gmt":"2026-05-19T12:11:27","slug":"architecture-of-public-projects-in-albania","status":"publish","type":"post","link":"https:\/\/altax.al\/en\/architecture-of-public-projects-in-albania\/","title":{"rendered":"Architecture of public projects in Albania"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">To deeply understand the problem of delays, it is essential to create a clear &#8216;map&#8217; of the architecture of public investments. This section presents the structure of the infrastructure investment portfolio, classifying projects by sector, size, region and maturity level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The analysis rests on 350\u2013400 projects detailed in the original files (Road Transport, Water &amp; Sewerage, Drainage\/Irrigation, AADA) and has been supplemented with official PPD 2027\u20132029 data, comprising 121 projects worth \u20ac14.83 billion in total.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Classification by Sector, Region and Project Size<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sectors involved &#8211; <\/strong>Road, Water Supply &amp; Sewerage, Drainage &amp; Irrigation, Urban\/Rural\/Tourism Development (AADA).<\/li>\n\n\n\n<li><strong>Regions &#8211; <\/strong>North (Shkodra, Lezha, Dibra), Centre (Tirana, Elbasan, Durres), South (Vlora, Fier, Saranda, Gjirokastra), Multi-region.<\/li>\n\n\n\n<li><strong>Size &#8211; <\/strong>Small projects (&lt; \u20ac5 mn), medium (\u20ac5\u201350 mn), large (> \u20ac50 mn).<\/li>\n\n\n\n<li><strong>Project maturity &#8211; <\/strong>Fully Mature (completely ready for implementation), Partially Mature (some elements completed), Immature (only idea or concept study).<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Aggregate Portfolio Matrix<\/strong><\/h5>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Sector<\/strong><\/td><td><strong>No. of projects (approx.)<\/strong><\/td><td><strong>% Fully Mature<\/strong><\/td><td><strong>Avg. Delay (years)<\/strong><\/td><td><strong>Cost Increase (%)<\/strong><\/td><td><strong>Share of total portfolio (%)<\/strong><\/td><td><strong>Key note<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Road<\/td><td>45\u201355 + PPD transport<\/td><td>36%<\/td><td>2.2\u20133.8<\/td><td>25\u201340<\/td><td>33%<\/td><td>Dominates portfolio; high delays in ring roads and corridors<\/td><\/tr><tr><td>Water &amp; Sewerage<\/td><td>90\u2013120<\/td><td>&lt;30%<\/td><td>3.2\u20134.8<\/td><td>20\u201335<\/td><td>25%<\/td><td>Highest delays; technically complex projects<\/td><\/tr><tr><td>Drainage &amp; Irrigation (04240)<\/td><td>80\u2013100<\/td><td>40%<\/td><td>1.2\u20132.7<\/td><td>15\u201335<\/td><td>15%<\/td><td>Lower delays, but still systemic<\/td><\/tr><tr><td>AADA (urban, tourism, 100 Villages)<\/td><td>120\u2013150+<\/td><td>25%<\/td><td>2.5\u20135.0<\/td><td>20\u201360<\/td><td>27%<\/td><td>Highest in urban regeneration and tourism<\/td><\/tr><tr><td>PPD 2027\u20132029 (total)<\/td><td>121<\/td><td>36%<\/td><td>\u2014<\/td><td>\u2014<\/td><td>100%<\/td><td>Only 36% fully ready for implementation<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Total analysed portfolio it is 350\u2013400 projects from original files + 121 official projects from PPD 2026\u20132028 and PPD 2027\u20132029.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Figure 3. Over-programming: PPD 2027\u20132029 Portfolio vs. Real Fiscal Capacity \u2013 ALTAX Observatory 2026<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"498\" src=\"https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-1024x498.png\" alt=\"\" class=\"wp-image-26212\" srcset=\"https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-1024x498.png 1024w, https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-768x374.png 768w, https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-640x311.png 640w, https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-400x195.png 400w, https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-367x179.png 367w, https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/f3-600x292.png 600w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">From the analysis of this database, the following situation results:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022 <strong>Dominated by the road sector<\/strong> with 33% of the total value, road transport is the main driver of investments, but also the largest source of delays and additional costs. Projects such as the Tirana Ring Road and Corridor VIII have significant delays (up to 6\u20138 years).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022 <strong>Water Supply &amp; Sewerage<\/strong> has the largest number of projects (90\u2013120), but the maturity is very low (&lt;30%). The average delays are the highest (3.2\u20134.8 years), mainly due to technical complexity and fragmented financing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022 <strong>Drainage &amp; Irrigation<\/strong> has relatively lower delays (1.2\u20132.7 years), because many projects are seasonal or simpler. However, they still suffer from budgeting spread over years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2022<strong> ADF (urban development and tourism)<\/strong> has high delays (2.5\u20135 years) and cost overruns of up to 60%, especially in urban requalification and coastal\/mountain tourism projects. These projects often have multiple phases and depend on coordination with municipalities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>PPD<\/strong> (Political Priority Document) 2027 &#8211; 2029 as an official overview, where only 36% of the portfolio value is \u201cfully mature\u201d. This means that most of the projects planned for the next 3 years are not ready for immediate implementation, increasing the risk of new delays and cost overruns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Why is this architecture important?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This matrix clearly shows that the problem is not uniformly distributed. It is concentrated in several sectors (road and urban) and regions (Center and South).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Large projects with high value tend to have higher delays and costs than small projects. This explains why, despite the relatively high level of investment (5\u20137% of GDP), real results for citizens remain limited.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the later parts of the report (Lags and Costs Analysis, Case Studies, Indices), we will delve further into each sector, showing how the portfolio architecture directly affects its performance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Analysis of Delays and Costs<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This section is the analytical heart of the report. Here we present concrete data, precise calculations and in-depth interpretation of delays and additional costs in Albanian public investments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The analysis is based on 350\u2013400 projects from four main sectors (roads, water supply and sewerage, drainage\/irrigation, ADF) and is complemented by official data from the 2027\u20132029 PDP.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Project Completion Rate<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Finish Rate Index = 5\u20138%<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This index measures the percentage of projects completed within the original planned deadline and achieving full functionality (in effective use by citizens or the economy).<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>From original file data: Only 5\u20138% of projects (mainly small local ones from 2016\u20132018) are completed on time and are fully operational.<\/li>\n\n\n\n<li>In PPD 2027\u20132029: Only 36% of the portfolio&#8217;s total value (\u20ac5.29 billion out of \u20ac14.83 billion) is classified as &#8216;fully mature&#8217;. However, this figure is optimistic, as most of them are still in early implementation phases.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Albania has a &#8216;planning illusion&#8217;. The list of projects is long, but only a very small fraction manages to finish on time and deliver real benefits. This is one of the main reasons why public investments do not produce the expected economic effect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Delay Duration (Delay Intensity)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Global average: 900\u20131,800 days (2.5\u20135 years per project).<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Distribution by sector:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Road: 800\u20131,400 days (2.2\u20133.8 years)<\/li>\n\n\n\n<li>Water &amp; Sewerage: 1,170\u20131,750 days (3.2\u20134.8 years) \u2014 highest<\/li>\n\n\n\n<li>Drainage &amp; Irrigation: 450\u2013900 days (1.2\u20132.7 years) \u2014 lowest<\/li>\n\n\n\n<li>AADA (urban, tourism, 100 Villages): 900\u20131,800 days (2.5\u20135 years)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In the full-matching analysis of 30 identical projects between PPD 2026\u20132028 and PPD 2027\u20132029, 73% have not changed status. This means the majority of projects remain &#8216;stuck&#8217; for years without real progress.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Distribution by region (approximately):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Centre (Tirana, Elbasan, Durres): 1,200\u20131,800 days<\/li>\n\n\n\n<li>South (Vlora, Fier, Saranda): 1,100\u20131,700 days<\/li>\n\n\n\n<li>North (Shkodra, Lezha, Dibra): 900\u20131,400 days<\/li>\n\n\n\n<li>Multi-region \/ Rural: 1,300\u20131,900 days<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Cost Overruns<\/strong><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>National average 25\u201340% (up to 60% in some categories).<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Distribution by sector:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Road 25\u201340%<\/li>\n\n\n\n<li>Water &amp; Sewerage 20\u201335%<\/li>\n\n\n\n<li>Drainage &amp; Irrigation 15\u201335%<\/li>\n\n\n\n<li>AADA (urban + tourism) 20\u201360% (highest in urban regeneration and tourist projects)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Real examples:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tirana Outer Ring Road 30\u201340% cost overrun + 6\u20138 year delay.<\/li>\n\n\n\n<li>Llogaras Tunnel, inflated cost due to geological challenges.<\/li>\n\n\n\n<li>Peqin-Kavaje Canal, delay + repeated addenda.<\/li>\n\n\n\n<li>Vlora Urban Regeneration (Clock Tower) up to 50\u201360% cost increase due to multiple phases.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Main reasons for cost increases:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Material inflation (cement, steel, bitumen), especially 2021\u20132024.<\/li>\n\n\n\n<li>Contract addenda and design changes.<\/li>\n\n\n\n<li>Delays leading to indirect cost increases (supervision, penalties, additional VAT).<\/li>\n\n\n\n<li>Difficult terrain (mountainous or coastal).<\/li>\n<\/ul>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>Tabular Analysis<\/strong><\/h5>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td><strong>Category<\/strong><\/td><td><strong>% with delay<\/strong><\/td><td><strong>Avg. delay (years)<\/strong><\/td><td><strong>Cost increase (%)<\/strong><\/td><td><strong>Annual budget impact (approx.)<\/strong><\/td><\/tr><\/thead><tbody><tr><td>Road<\/td><td>80%<\/td><td>2.2\u20133.8<\/td><td>25\u201340<\/td><td>8\u201312 billion ALL<\/td><\/tr><tr><td>Water &amp; Sewerage<\/td><td>97\u201398%<\/td><td>3.2\u20134.8<\/td><td>20\u201335<\/td><td>6\u201310 billion ALL<\/td><\/tr><tr><td>Drainage &amp; Irrigation<\/td><td>70\u201380%<\/td><td>1.2\u20132.7<\/td><td>15\u201335<\/td><td>4\u20137 billion ALL<\/td><\/tr><tr><td>AADA (urban + tourism)<\/td><td>92\u201395%<\/td><td>2.5\u20135<\/td><td>20\u201360<\/td><td>10\u201315 billion ALL<\/td><\/tr><tr><td>PPD 2027\u20132029 (total)<\/td><td>\u2014<\/td><td>\u2014<\/td><td>\u2014<\/td><td>Over-programming \u20ac9.2 billion<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h5 class=\"wp-block-heading\"><strong>On-Time vs. Delayed Projects<\/strong><\/h5>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>On time, <\/strong>5\u20138% (mainly small local projects from 2016\u20132018 that did not require multiple phases).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Delayed, <\/strong>92\u201395% (the vast majority of strategic projects, such as ring roads, corridors, large water supplies, urban and tourist regeneration).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Distribution by year of start:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Projects 2016\u20132020 with 60\u201370% with delay.<\/li>\n\n\n\n<li>Projects 2021\u20132025 with 85\u201395% with delay.<\/li>\n\n\n\n<li>Projects planned 2026\u20132029 are expected to have high delays if no immediate action is taken.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Delays and cost overruns are no longer the exception, but <strong>have become the rule<\/strong> in the Albanian public investment system. With a global average of 2.5\u20135 years of delay and 25\u201340% cost overruns, Albania loses hundreds of millions of euros in efficiency and thousands of years of productivity every year. This analysis shows that the problem is systemic, not random, and requires immediate structural intervention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">* Excerpt from the study <strong><a href=\"https:\/\/altax.al\/en\/product\/public-investment-implementation-deficit-in-albania\/\">Public Investment Implementation Deficit in Albania.<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To deeply understand the problem of delays, it is essential to create a clear &#8216;map&#8217; of the architecture of public investments. This section presents the structure of the infrastructure investment [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":26213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[9756],"tags":[20437,20436,20440,20438,20263,20439,9910,20265],"class_list":["post-26210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cost-overruns","tag-fiscal-multiplier","tag-gdp-loss","tag-implementation-delays","tag-over-programming","tag-pim-reform","tag-public-investment-en-2","tag-public-investment-management"],"featured_image_src":{"landsacpe":["https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/architecture-projects-pub-1140x445.png",1140,445,true],"list":["https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/architecture-projects-pub-463x348.png",463,348,true],"medium":["https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/architecture-projects-pub-300x200.png",300,200,true],"full":["https:\/\/altax.al\/wp-content\/uploads\/2026\/05\/architecture-projects-pub.png",1536,1024,false]},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Architecture of public projects in Albania - ALTAX<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/altax.al\/en\/architecture-of-public-projects-in-albania\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Architecture of public projects in Albania - ALTAX\" \/>\n<meta property=\"og:description\" content=\"To deeply understand the problem of delays, it is essential to create a clear &#8216;map&#8217; of the architecture of public investments. 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