TIRANA, Dec. 19 – The Albanian government has approved the financing of the disputed Levan-Vlora road through a commercial loan taken from EBRD and EIB. The Economy Commission of the Parliament has examined the draft law and has ratified the contract that predicts a loan of 22 million euro from EBRD. This road segment is part of the Pan-European Corridor VIII and is 24.2 km long with four lanes. The total cost of the project is 60.2 million euro, including the expenses of the administration which has taken over the land compensation and the taxes.
Loan conditions
The loan accorded by EBRD has the same interest rate as that of the two Greek banks, “Alfa Bank” and NBG taken to finance the road Durr쳭Kuk쳬 euribor plus one percent which roughly equals 5.6 percent. Additionally, this will be the commission fee of one percent of the loan, a considerable sum of 220.000 euro. The time allocated is 15 years and the first three years are free of interest payments. The loans of EIB has slightly better conditions, with an interest rate of euribor plus 0.4 percent, roughly a total of five percent and no commission, as well as five years with no interest payments. Minister of Finance Bode has thanked the two investors for the assistance in developing infrastructure while considering the loans favorable.
The story of a road segment
The start of works in this particular segment has been the subject of controversial debate because the Prime Minister promoted it even before the loans were confirmed during the electoral campaign of the local elections. The procurement procedure for the building firm, as well for the consultancy and supervision firm, have been completed and the slots have been allocated to the Italian company “Italconsult” for 700.000 euro for consulting as well as ALPINE MAYREDER BAU GMBH for the building for a contract worth 41.9 million euro.
