MIE requests 725 million dollar loan from WB for Water Supply project

Tirana Times
By Tirana Times January 31, 2020 12:29

MIE requests 725 million dollar loan from WB for Water Supply project

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  • However, the Ministry foresees a 75 percent increase in water tariffs to cover the costs needed for the implementation of the strategy.

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TIRANA, Jan. 31 – The Ministry of Infrastructure and Energy recently submitted to the World Bank its project plan regarding the National Water Supply and Sewerage Program, requesting a loan of 725 million dollars.

According to the Albanian government, the project aims to provide better service to citizens as well as make clean and safe drinking water accessible to all. In its written description, it is stated that the project will help authorities create a new approach towards more financially sustainable enterprises and its primary objective is the strengthening of the institutional policy framework and capacity to improve access to service provision as well as the financial viability of water utilities. 

However, the Ministry foresees a 75 percent increase in water tariffs to cover the costs needed for the implementation of the strategy. The government claimed that this increase will be affordable since total household expenditures on water amount to an average of 2.2 percent, which is below the five percent threshold. 

The project is part of the 2020-2030 National Strategy Plan which is still awaiting full approval and is estimated to cost a total of 1.5 billion euros. The next meeting between the World Bank board members will be held on March 9th in order to discuss the Ministry’s request.

Tirana Times
By Tirana Times January 31, 2020 12:29