Real Estate and Financing PPP in Albania
During the liberalization process in Albania a substantial number of state-owned properties were privatized. One consequence of this rapid privatization process was that a number of previously state owned assets were privatized to one private party while they are occupied de facto by another. This affects residential buildings housing approximately 4,500 households in Tirana and other towns around Albania.
The IFC contracted Rebel to develop and implement an innovative public private partnership to provide alternative residential properties for these households to allow for effective restitution. On the basis of a financial model developed for the assignment, a solution involving two innovative PPP programmes was developed:
- Grant support through a commercial banking PPP: this programme involves a partnership with a commercial bank through which subsidies are provided and combined with mortgage lending to resolve the property situation.
- Transferable development rights and a market PPP: this programme establishes a system of transferable development rights which enables the government of Albania to create value capture mechanisms to resolve properties located in high value real estate markets.