Vlorë thermal power plant: 2012 arbitration between KESH and Mire Engineering (older case missing from dataset)
Status: Arbitration reported in 2012; outcome not found in this round.
Summary
The Vlorë thermal power plant, a World Bank-funded project built by the Italian contractor Mire Engineering, was due to operate from May 2009. A cooling-system failure caused delays. KESH asked the World Bank to suspend a 10 million EUR payment to the contractor and to call a 5 million EUR guarantee. In November 2012 the contractor was reported to seek 66 million EUR in compensation at arbitration, and KESH to seek 12 million EUR. The plant was reported idle for about two years because of high fuel costs. The government announced a tender for a law firm to represent KESH. This is a contract and arbitration dispute as reported at the time; no criminal allegation is recorded in the source opened.
Key facts
- Plant due to be operational from May 2009 (Tirana Times, Nov 2012).
- Contractor claim reported as 66 million EUR; KESH counter-claim reported as 12 million EUR.
- KESH asked the World Bank to suspend a 10 million EUR payment and to call a 5 million EUR guarantee.
- The plant was reported idle for about two years because of high fuel costs at the time of reporting.
The record
Four lists kept apart on purpose: what is established, what is only alleged, what is still open, and what those concerned said.
What is proven (1)
Established by documents or official records, as stated in the research. A recorded charge or indictment proves only that the accusation was made.
- An arbitration was launched by the contractor and the state counter-claimed (reported by Tirana Times, Nov 2012).
What is alleged (0)
Accusations, not findings. Those accused are presumed innocent.
Nothing recorded in this list.
Allegations and who made them (1)
Each line is an allegation as recorded, with the person or body that made it where the record names them.
- AllegationNo corruption allegation found in the source opened. The dispute is a contract and performance dispute.
Open questions (3)
- Final arbitration award and amount paid.
- Whether the plant was later run, leased or sold (see n26-en-vlora-floating-tpp-tiger-lease-2022).
- Who approved the original contract and the fuel-cost decisions.
Responses (1)
Responses of the people and organisations concerned, as recorded.
- The State Advocacy office released a document on the case and announced a tender for a law firm to act for KESH (Tirana Times, 2012).
Figures
Money trail →Vlorë TPP: contractor claim at arbitration
€66,000,000
Stated definition: Claimed amount (Tirana Times, 2012); not an award
Date: Nov 2012 · Payer: KESH · Payee: Mire Engineering
- Tirana Times 2012 (opens in a new tab)Tirana Times · 9 Nov 2012 · journalism · EN
Vlorë TPP: KESH counter-claim
€12,000,000
Stated definition: Claimed by KESH (Tirana Times, 2012)
Date: Nov 2012 · Payer: Mire Engineering · Payee: KESH
- Tirana Times 2012 (opens in a new tab)Tirana Times · 9 Nov 2012 · journalism · EN
Timeline
Full timeline →Government
Mire Engineering seeks 66 million EUR at arbitration; KESH counter-claims 12 million EUR
Tirana Times reports the arbitration over the Vlorë thermal power plant (plant due May 2009, idle about two years).
Connections
KESH as respondent in Vlorë TPP arbitration
Evidence: Tirana Times 2012: KESH counter-claims 12m EUR against Mire's 66m EUR claim.
- Hypothesis←Vlorë floating thermal plants (Tiger 1 and Tiger 3): KESH emergency lease from Excelerate and Renco (2022)Source label: Unverified
Repeated stranded-capacity pattern at Vlorë (see hypothesis h1)
Evidence: Both the 2012 idle plant and the 2022-2024 floating plants were reported unproductive.
Hypotheses
Possible explanations that connect this record with other findings. They are not findings; each lists the evidence for and against.
- Source label: Unverified
Vlorë power capacity: repeated stranded-capacity contracts linked to the same state energy buyer
Two Vlorë thermal projects, the 2009-2012 Mire plant and the 2022 Tiger floating plants, both ended with KESH paying large sums for capacity that was reported idle. If the pattern reflects weak procurement oversight rather than chance, it would fit the KLSH finding that the Ministry of Infrastructure and Energy led abuse cases in 2022 (existing event ev-2022-11-24-klsh-ministry-first).
Evidence for
- Tirana Times 2012: plant idle about two years over fuel costs; contractor claim 66m EUR (OFFICIALLY_REPORTED).
- GEM as of Nov 2024: Tiger 1 and 3 had produced no power (OFFICIALLY_REPORTED).
- Existing dataset: KLSH Nov 2022 audit lists the Ministry of Infrastructure and Energy first for abuses.
Evidence against
- The sources do not show the same people or companies in both projects; Mire and Excelerate-Renco are different firms.
- The 2012 dispute is a contract dispute with a court or arbitration process, not an allegation of corruption.
- Fuel-price and cooling-system explanations are given for the idle periods.
Sources for this record
Every source the research cites for this record, grouped by its source label. 1 source.
Source label: Officially reportedOfficially reported · 1 source
- Publisher
- Tirana Times
- Date
- 9 Nov 2012