IDB approves USD 222 mln loan for Tirana-Elbasan highway

TIRANA, March 1 – The Islamic Development Bank (IDB) approved on Tuesday 222.7 million dollars to finance the Tirana-Elbasan highway, the Qatar News Agency reported. No details were made available on the interest rates and the deadline of the loan. The Albanian government will need extra funding for the new highway linking Tirana to Elbasan in the shortest possible way through a tunnel. The total cost of the highway which is in the final tendering process is estimated at 350 million dollars.
Prime Minister Sali Berisha said the opening of bids for the 12 short-listed candidates, among the Bechtel-Enka consortium which built the Rreshen-Kalimash tunnel linking Albania to Kosovo, would take place on March 3.
According to Public Procurement Agency, the price tag for the tunnel construction is 150 million euros VAT excluded and 180 million dollars VAT included.
The tunnel is expected to be completed within 18 months once the contract has been signed and possibly open to traffic within 2012. The Tirana-Elbasan highway will be the first segment of southern road axis and an important hub of the Corridor 8 project with Italy, Macedonia and Bulgaria. The highway, expected to cut the distance to Elbasan to 31 kilometres, down from 48 currently, will have four lanes and two tunnels, 2.3 and 2.1 km long each, saving passengers to the central Albanian city of Elbasan 40 minutes compared to the current mountainous road.