TIRANA, Nov.19- Finance Minister Rivdan Bode and Transportation Minister Sokol Olldashi have signed two loan agreements with the European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) for the financing of the Levan – Vlora road construction, a part of the important pan-European corridor VIII. A total sum of 45 million euros will be borrowed in two loans; respectively 22 million from EBRD and 23 million from EIB.
The project includes the construction of the Levan – Vlora segment, which will be 24.2 km long with four lanes and with European standards and is part of the initiative of improving infrastructure.
Loan terms of EBRD
ՠPrincipal 22,000,000.00 EUR
ՠMaturity 15 years.
ՠPeriod free of principal payments 3 years
ՠInvolvement Commission 0,5 % annually
ՠInterest market based variable
ՠCommission Beg-End 1 % of loan, out of loan funds
Loan terms of EIB:
ՠPrincipal 23,000,000.00 EUR
ՠMaturity 20 years
ՠPeriod free of principal payments 5 years
ՠInterest market based variable
The total cost of the entire project is 60.1 million euro including the contribution of the Albanian government, which covers VAT taxes and land ownership compensations, a total estimated at 14.3 million euro. The Italian Cooperation Fund is giving 800.000 euro in order to finance the consultancy and supervision fees, while two loans from the banks will be used directly for construction costs.
