Financial agreements of two World Bank projects finalized

TIRANA, March 21, 2007 – A signing ceremony took place today in the Ministry of Finance for the Financing Agreements of Land Administration and Management Project ($ 35 million) and Transport Project ($ 25 million). The agreements were signed by the Minister of Finance, Ridvan Bode and the World Bank Country Manager for Albania, Nadir Mohammed. The ceremony was held in the presence of Minister of Public Works, Transport and Telecommunications, Lulzim Basha, Minister of Justice, Ilir Rusmali, Deputy Minister of Interior, Ferdinand Pone, other senior government officials and World Bank project team members.
The Land Administration and Management project will support the Government’s efforts to facilitate the development of an efficient land and property market by enhancing tenure security and improving land administration and management services. The project will focus on the three main areas necessary to promote the development of an efficient land and property market: improving the security of land tenure; strengthening local government capacity to develop and enforce land use plans; and supporting the development of a property taxation function. By the time the project is completed, it is expected that the average time to register property transaction will be reduced from 47 to 10 days, while the average time to issue building permits will drop from six to three months. The annual property tax collection for the participating municipalities is also expected to increase by 10 percent. Overall, the project seeks to raise the level of confidence in securing property rights in Albania.
This project is financed through a credit and a loan, blending IDA and IBRD resources for an amount of $15 million and $19.96 million, respectively. The total project cost is $56 million and is co-financed by the participating local governments ($9.0 million), national government ($6.0 million), the Swedish SIDA ($ 5.0 million in grant), and by the Japanese Government ($1.54 million in grant).
The Transport Project will finance the construction of the 26 kilometer section between Milot and Rreshen. It will also test performance based road maintenance on a pilot basis, improve road safety, and provide further necessary technical assistance and equipment. Transport demand is growing rapidly in Albania, reflecting the structural changes in the economy and changes in trade flows in the region. The Government of Albania has recently adopted the Albanian National Transport Plan, and confirmed that the Durres – Milot – Morine corridor is its foremost priority. The development of this road corridor will reduce costs for road users markedly and also benefit a hinterland population, approaching 110,000 people, in one of the poorest regions in Albania.
This project is financed by a credit and a loan, blending IDA and IBRD resources in the amounts of $5 million and US$20 million, respectively. The total project cost amounts to $56 million and is co-financed with the Government of Albania ($16 million) and the OPEC Fund ($15 million). Albania joined the World Bank in 1991. World Bank commitments to the country to date total approximately $915 million for 63 operations.