Author: Denis Tahiri
Albanian youth is the biggest inheritor of the state's debts. The findings of Open Data Albania confirm the not very good future for the young generation.
“ For 2022, the Public Debt stock is planned to be around 1,40 trillion Lekë, with an increase of 78.6 billion Lekë or 6% compared to the public debt stock planned for 2021 ,” states Open Data Albania , a figure which implies that the cost per capita is around 496,040 Lekë or around 4099 Euros per inhabitant. This figure means that compared to 2017, an Albanian citizen is expected to pay around 117,343 Lekë more, with a cost increase of 31% for this five-year period.
This bleak picture seems to fit the saying of the 31st president of the United States, Herbert Hoover. Ironically, Hoover, who served during the Great Depression, said at the time, “ Blessed are the youth, for they will inherit the public debt.”
Far away in time from this expression, the Albanian government mentions one of the crises as the energy crisis for which citizens are asked to reduce consumption, to pay electricity bills regularly. But at the same time, state institutions continue to remain indebted to the Electricity Distribution Operator. Out of 1301 institutions in the list of "debtors" of OSHEE, the total amount of debt that the institutions have until July 2022 is 732,552,859 ALL. In the "black list" of electricity bills are the student residences, as the shelter of young people pursuing higher studies.
Student residences drowning in debt
The Vlora Student Treatment Company is the institution that stands at the top of OSHEE's list of debtors. Currently in Albania, dormitories are attached to the local government, but this has not happened for the Municipality of Vlora and that of Korça. The number of students living in the seaside town's dormitories is not the same every year, but varies between 240 and 260 students per year. There are two accommodation facilities. One of them is a building, which is considered by the students as a new building because it was reconstructed in 2019. While the students pay the amount for the academic year in installments. 55 ALL per year is paid for students to stay in the reconstructed building, while 33 ALL is paid for building number 2. From the data available to "Sinjalizo", it appears that this enterprise is immersed in a debt of 60 million ALL in total. The overwhelming part is owned by the debt to OSHEE in the amount of ALL 47,206,879. Meanwhile, the rest of the debts remain to the Water Supply and Social Security.
" In 2013, when all the debts of the institutions were written off, this enterprise was not treated equally by the Ministry of Education. There were three contracts with OSHEE, only the debt of one contract with OSHEE was cleared, while the other two were not treated. Since that period until now, these debts have accumulated ," an official source of this institution told "Sinjalizo" on condition of anonymity. Meanwhile, "Sinjalizo" inquired with OSHEE about the context of the contracts, where according to the sources it was confirmed that: " This institution has also made an agreement, where they could pay in installments, where the installment was about 6 million old per month" - one of the contact persons stated unofficially.
Meanwhile, the two contracts that are still active of the Vlora Student Treatment Enterprise, in the list of "OSHEE debts", are clearly distinguishable due to the high amount. One of the contracts of this enterprise has a total liability figure of 36926630.4333 ALL, where the principal is 19413893.6233 ALL while the interest is 17512736.81 ALL. Meanwhile, the second contract that appears is in the total value of 10280249.48 ALL, where the principal is 5164005.4 and the interest is 5116244.08 ALL. The same source near OSHEE recalls that student residences remain a problem.
Who is responsible?
University Student Residence No. 1, otherwise known as Student City, is the largest student residence in the entire country. Before the pandemic, this residence accommodated about 5400 students in its buildings, but the current numbers are nothing like the pre-pandemic numbers. Accommodation fees in this residence start from 49000 ALL to 60000 ALL for 10 months. But the conditions that are offered have forced many young people to look for other premises for rent.
Even this residence's level of debt for electricity is several times greater than that of Vlora. In a contract, which has as object "BATHROOMS 1", University Student Residence No. 1, has an obligation to OSHEE in the amount of ALL 15766855.9. In total, in 32 contracts related to OSHEE, University Student Residence No. 1 has a debt of ALL 242,036,712.
On the other hand, Student Enterprise No. 2 owes OSHEE 64544063.84 ALL for 5 contracts for the electricity used. While Student Enterprise No. 3 for 5 contracts owes the energy distributor a debt of 39078360.06 ALL.
For the current financial situation, for the expert Ndriçim Mehmeti, the cause must be found in the mismanagement that has been done to these enterprises.
" These are issues of abuse, employment opportunities, we hire some people, we take them and nothing happens because we agree with the state. You know that the ministries here have debts for electricity, water supply, etc. These, being covered by the shield of the state, think that the state protects them from everything. Since the state has never listened to them, except for the Supreme Audit Office which has made a report, the state itself has not done anything", he says, adding that the negative budgets of these enterprises lead to direct negative impacts on students.
" There will be a lack of Services, from cleaning to hygiene. It's the same as in the cities, you won't have any more Services, you won't have good cleaning, you won't have hygienic conditions, you won't have renovation based on standards, because we are without standards and we continue to have dormitories without toilets inside, it's impossible, without showers," he says.
Experts: Mismanagement leads to poor student service conditions
“ Every year these enterprises come out with losses, the first reason is that these enterprises do not use their assets economically,” says Rigels Xhemollari, from the Civic Center, which has monitored the finances of student enterprises. He also brings to attention the example of the largest student center located in the capital. “ The Student City has many properties that it has left empty or unused, including the parking lot that it has given to the municipality, so there is a lack of efficient use and they will definitely come out with losses ,” declares Xhemollari, adding that funding from local and central governments has also not been sufficient.
But this difficult financial situation of the enterprises directly affects the quality of life of the students. " Students lack even basic things, soap, toilet paper, lockers, etc. and this is due to the lack of budget," says the representative of the Civic Resistance, adding that this subsequently affects the quality of their lives as well as the results of their studies, since for many of them the basic conditions for studying in these buildings are lacking.
The low standard of Albanian dormitories does not even compare with Kosovo. EH, 22 years old, is a student at the University of Pristina. The young woman lived on the university campus during her academic studies where she paid 32 euros per month for food and accommodation.
" There were many benefits for me, both the dormitory and the cafeteria. I can say that the biggest advantage was not only the cheap price, but also the very good conditions for a student," the young woman says. She does not understand at all how a student campus can have obligations for energy bills that then fall on the shoulders of young people. " In the winter season, we did not have problems with heating or electricity, and it was a very big advantage," the 22-year-old concludes.
