Kor衠Begins Reconstruction Projects

KORCA, September 15, 2010 – The Municipality of Kor衬 with support of USAID’s Local Governance Program in Albania (LGPA), have celebrated the ground breaking of a local infrastructure project financed with funds from a municipal loan. The Mayor of Kor衬 Niko Peleshi, and the USAID Mission Director, Joseph Williams, were present to mark the beginning of work on the project.
The loan will fund the reconstruction of Korca’s main city square; infrastructure improvements on the main “Republica” Boulevard, at the intersections on the Fan Noli road, and in Neighborhood no. 15. All the improvements will enhance traffic circulation and safety, and increase business activity in the area.
On March 31, 2010, Kor衠signed a commercial loan agreement with ProCredit Bank, for a total of ALL 100 million. An initial disbursement of ALL 45 million was made in August, and the balance of the loan will be disbursed in early 2011. All of the loan proceeds will be used to fund improvements to local streets and other public areas of the city.
USAID/LGPA provided technical assistance to the Municipality of Kor衠throughout the borrowing procedures, assisting with the financial analyses, negotiations with commercial banks, presentations to and approvals by the Municipal Council and Ministry of Finance, the drafting of the loan agreement with ProCredit Bank. Offers were made by six banks and were carefully considered by an evaluation commission set up by the Muncipality. The 100 million Lek, 10-year loan has a variable interest rate based on the annual Treasury bond rate plus 0.5 points.