TIRANA, Nov. 16 – Albania signed a 45 million Euro agreement on Friday with the European Bank for Reconstruction and Development and the European Investment Bank for the construction of the Leval-Vlore road segment.
The EBRD lent 22 million Euros for 15 years to Albania to finance the construction of a 24km four-lane road section from Levan to Vlore, a key road corridor of international importance. The road will improve the link between Tirana and the Port of Vlore, one of the entry points of the Trans-European Corridor VIII, which forms part of the European rail and road network.
Another 20-year loan of 23 million Euros was signed with the European Investment Bank.
The construction of the section will speed Albania’s regional integration by upgrading the transport link, reducing costs, increasing access and improving road safety. The improvement of this road link will contribute not only to the economic development of Albania and its important tourism sector, but will improve links and trade with neighboring countries and the EU through Corridor VIII.
This project is a continuation of the Bank’s financing of road sector improvements in Albania. The loan will be used to increase the efficiency of road transport services and will encourage the use of competitive tendering for periodic maintenance.
Signing the project, Sue Barrett, Deputy Director of Transport at EBRD said: “An improved road infrastructure will play a key role in developing the Albanian economy. As well as connecting towns and cities, the improved road infrastructure will support trade and tourism and make the country more attractive for investment”.
Ridvan Bode, Albanian Minister of Finance, stated that the loan is important for Albania as it will not only upgrade an important link of the road network, but will also improve the quality of service to road users. Albania welcomes EBRD’s assistance with implementation of transport sector reforms, which aims to improve the efficiency of the development, management and operation of the national road network, Bode said.
The overall project – whose total cost is EUR 60.1 million – is being co-financed with the European Investment Bank. The Italian government, via the Italian Development Cooperation, is providing 0.8 million Euros for the preparation of the detailed design and supervision of civil works.
The Albanian government will provide the remaining 14.3 million euro.
The EBRD is the largest institutional investor in Albania, having invested 363 million in 39 projects in Albania, ranging in a number of important sectors, including national infrastructure, the financial sector and the private corporate sector.
