By Tirana Times

TIRANA, March 20th (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.

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.

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.”

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.

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.

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

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.