Paid and unfinished works for the water supply, KLSH catches the Tepelena municipality in violation

Around 64 million lek were paid for the construction of the water supply system for the villages of Peshtan and Mezhgoran in the Municipality of Tepelena, but the investment has not been put into operation. The Supreme State Audit has concluded that the works carried out have not produced the expected effect, as an essential part of the water supply system has not been built, leaving the project unfinished.
According to the final audit report, the amount of 63,989,574.84 lek excluding VAT, paid for the works of this water supply system, is considered by the SAI as an expense without economy, efficiency and effectiveness. This is because, despite the realization of part of the infrastructure, the system was not functional at the time of the audit and had not fulfilled the purpose for which it was financed.
The investment is part of a broader contract for the construction of water supply networks for the villages of Nivicë, Rexhinë, Peshtan and Mezhgoran, with a total value of 232.67 million lekë including VAT. The contract was signed on April 26, 2021, with an initial implementation deadline of 150 calendar days from the handover of the construction site, but the works have been accompanied by repeated suspensions and project changes.
Residents' objections and project changes
The biggest problems have appeared in the Peshtan–Mezhgoran segment, where residents have opposed the passage of the water supply line through private properties.
According to the documentation reviewed by the KLSH, the first suspension of works was requested in October 2021. In January 2022, the contractor again reported obstacles from residents, who claimed that the pipeline passed through their properties. Another interruption occurred in February 2023, while the process was also affected by the procedures for obtaining the necessary permits.
Faced with these difficulties, the initial project has been revised. Works have been focused on a portion of the main line and storage infrastructure, while the implementation of the water intake work from the source and the remaining elements has been postponed to a second phase.
But it is precisely the lack of a water intake facility that has made the system non-functional, despite the funds spent.
The SAI assesses that this situation has led to the ineffective use of public money, as the built infrastructure cannot fulfill its function without the completion of the entire technical scheme of the water supply.
Paid but unfinished work in the field
In addition to the malfunctioning of the water supply, the audit also identified problems in the volumes of reported and paid works.
For the Peshtan–Mezhgoran segment, the Albanian Supreme Audit Institution (ALSI) has determined 1,016,251 lek in economic damage excluding VAT, as a result of incorrectly calculated works, overlapping volumes and works that are not proven to have been carried out.
Among other things, the documentation found overlapping volumes of excavation and filling of the route, the inclusion of transportation costs that were also calculated in other items, as well as concrete works to support the pipeline, the implementation of which was not documented.
For the remaining part of the contract, related to the water supply of the villages of Nivicë and Rexhina, an additional 441,368 lek in economic damage were found.
In total, the economic damage identified in both sub-objects amounts to 1,457,619 lek excluding VAT.
This amount is separate from the value of around 64 million lek that the Albanian Supreme Audit Institution classifies as ineffective expenditure for the Peshtan-Mezhgoran water supply.
The audit also identified deficiencies in the technical documentation, including the lack of pressure tests for water supply lines and complete quality documentation for some materials used.
The SAI demands responsibility and the completion of the investment
In its final recommendations, the Supreme State Audit Office requests that the Municipality of Tepelena establish a special working group to identify the causes and persons responsible for the ineffective use of 63.99 million lek. The Supreme State Audit Office also requests that administrative and legal procedures be followed to recover the economic damage found from the unfinished works./ ekofin.al
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