Vlora Airport project faces potential international arbitration

Albania faces potential international arbitration proceedings regarding the unfinished Vlora International Airport project. According to reports, the Swiss-based company MABCO Constructions, controlled by businessman and former Kosovo President Behgjet Pacolli, has issued a ‘Notice of Dispute’. This action activates a six-month negotiation period under the Albania-Switzerland bilateral investment protection agreement.

The dispute stems from the Albanian Ministry of Infrastructure and Energy’s decision to initiate procedures for the early termination of the concession contract. The Ministry argues that the airport failed to become operational within the required deadlines, which expired in May 2024, citing issues with construction progress, contract security, and ongoing partner conflicts.

MABCO disputes these claims, asserting that delays are the result of corporate conflicts and the actions or inactions of Albanian institutions that have hindered their control over the investment. If negotiations fail, the company has signaled it may pursue claims through the International Centre for Settlement of Investment Disputes (ICSID) and the London Court of International Arbitration (LCIA).