By Tirana Times
TIRANA, Albania (Tirana Times ) The Albanian government has nearly doubled the
projected cost of its “Smart City” initiative, now expected to cost $118.5 million—up from
the initially planned $60 million—raising concerns over transparency, lack of competition,
and the protection of personal data.
The government announced the increased funding one day ago, revealing that the entire
amount will be secured through a loan from the Abu Dhabi Development Fund. The funds
will be used to implement an advanced surveillance system under the administration of the
Albanian State Police, featuring thousands of intelligent cameras and sensors aimed at
enhancing public security.
A High-Profile Diplomatic Visit and Its Impact
The funding increase was disclosed following a historic visit by UAE President Mohamed
bin Zayed Al Nahyan to Tirana on February 23. The two-hour visit marked the first-ever trip
by a UAE leader to Albania and resulted in the signing of two significant agreements: a
renewable energy framework and the “Albania Smart City” initiative. The latter agreement,
signed between the Albanian Ministry of the Interior and UAE-based artificial intelligence
firm Presight AI Ltd, involves installing AI-powered security cameras and advanced traffic
management systems across major Albanian cities.
While Prime Minister Edi Rama hailed the visit as a milestone in Albania-UAE relations,
opposition figures and experts argue that the increased project cost—announced only weeks
after the visit—suggests a lack of due diligence and public accountability.
Lack of Transparency and Competition
The sudden cost increase has sparked criticism from opposition figures and economic
experts, who argue that the government has not provided a detailed breakdown of why the
project’s cost has nearly doubled. The funding boost was disclosed following a visit to Tirana
by UAE President Mohamed bin Zayed Al Nahyan, during which Prime Minister Edi Rama
signed multiple cooperation agreements, including a commitment letter for the Albania Smart
City project.
According to documents submitted to the Albanian Parliament for loan ratification, the
project will install 2,239 automatic license plate recognition (ANPR) cameras, 2,602 pan-tilt-
zoom (PTZ) cameras for traffic monitoring, and 3,816 body cameras for police officers.
Additionally, 100 smart radars and an equal number of traffic sensors will be deployed.
Despite the project’s significance, opposition lawmakers and independent analysts have
expressed concerns over its financing, the selection of contractors, and the broader
implications of increased surveillance. Democratic Party MP Jorida Tabaku criticized the
agreement, calling it a continuation of previous government policies that allegedly bypass
European Union procurement standards.
“This agreement is pre-determined and blatantly violates Albania’s Stabilization and
Association Agreement with the EU,” said Tabaku. “The Socialist government consistently
favors private interests over public transparency, repeating the same practices used in at least
20 previous cases of ‘special laws’ tailored for select companies.”
Financial and Political Concerns
Critics argue that the choice of financing and the interest rate attached to the Abu Dhabi loan
—reportedly at 4%—is unusually high for a development loan. Experts warn that this could
impose a long-term burden on Albania’s budget, particularly given the loan’s repayment
structure and potential currency exchange risks associated with the U.S. dollar.
“There are other financial institutions that provide loans at lower interest rates,” an
independent economist noted. “The government’s decision to opt for a more expensive
source of financing is inexplicable and raises concerns about hidden interests.”
Furthermore, the lack of an open tender process for the project has triggered fears of potential
corruption and clientelism. The government awarded the contract to Presight AI Ltd, a UAE-
based artificial intelligence and data firm affiliated with the G42 Group, a company that has
faced scrutiny in the U.S. over its alleged links to Chinese technology firms.
Privacy and Surveillance Risks
Digital rights advocates have also voiced alarm over the scale of surveillance planned under
the Smart City project. They argue that the government has not provided adequate safeguards
to ensure the protection of citizens’ personal data, nor has it clarified how the data collected
by the system will be used and stored.
“The government is increasing its capacity to surveil citizens without sufficient oversight,” a
digital rights expert warned. “This project raises serious questions about mass surveillance,
personal privacy, and potential misuse of AI-powered policing.”
Concerns have also been raised internationally. Reports indicate that U.S. lawmakers have
expressed reservations about Albania’s partnership with Presight AI Ltd due to its suspected
connections with Chinese technology firms, which have been flagged as potential national
security risks.
UAE’s Expanding Influence in Albania
President Bin Zayed’s visit also underscored a growing economic partnership between
Albania and the UAE. Over the past decade, UAE investments in Albania have surged,
reaching €52 million in 2024—a 280% increase from the previous year. Trade and tourism
between the two nations have also flourished, facilitated by direct flights between Tirana and
the UAE’s major cities.
However, Emirati-backed projects in Albania have faced scrutiny, particularly the
controversial €2 billion Durrës Marina project led by Dubai-based developer EMAAR.
Critics argue that converting Albania’s largest seaport into a luxury marina and real estate
complex raises transparency concerns and could disrupt Albania’s NATO-aligned strategic
interests.
Similarly, a €1 billion trilateral agreement between Albania, Italy, and the UAE to construct
an undersea energy link through the Adriatic Sea has faced calls for greater transparency,
with concerns over its long-term impact on Albania’s energy sovereignty.
Opposition Demands More Oversight
The Democratic Party and civil society groups are calling for greater transparency in the
project’s implementation. They demand that the government disclose the rationale behind the
cost increase and provide clear assurances regarding the protection of personal data and
adherence to European regulatory standards.
“The lack of transparency in such a massive project, combined with the absence of
competition in awarding contracts, raises red flags about potential misuse of public funds,”
said a representative from an anti-corruption watchdog. “Without proper oversight, the public
could be left paying the price for a flawed and opaque agreement.”
Despite the mounting criticism, the government insists that the Smart City project is crucial
for enhancing public safety. However, without further clarification on financial and privacy
concerns, the controversy surrounding the initiative is unlikely to subside.
