The Saudi Fund for Development has approved a USD 25 million soft loan for the highway linking Tirana to the neighbouring city of Elbasan
TIRANA, June 27 – The Albanian government has managed to secure another soft loan for the construction of the new Tirane-Elbasan highway. The news is confirmed by the Finance Ministry which says the Saudi Fund for Development has approved a USD 25 million soft loan for the highway linking the capital Tirana to the neighbouring city of Elbasan. The loan, which matures in 25 years, has an interest rate of 2 percent and a grace period of 5 years. During a meeting with Saudi Arabia’s Ambassador to Albania, Abdullah Abdulaziz Al-Abdulkarim, Finance Minsiter Ridvan Bode thanked Saudi Arabia for the loan and its favorable financial terms. The loan from the Saudi Fund for Development is the second secured by the Albanian government for the building of the Tirane-Elbasan highway. Three months ago, the Islamic Development Bank granted a $222.7 million (156 million Euros) loan for the highway construction whose cost is estimated at USD 400 million. The Islamic Development Bank will also assist in ensuring the remaining amount necessary for the construction from Abu Dhabi Fund and OPEC funds. Last May, Greece’s Aktor officially started works to build a 2.3 km tunnel as part of a new highway linking Tirana to Elbasan. The highway’s construction which started just before the May 8 local elections is expected to finish in spring 2013, just before Albania holds the next general elections. Aktor, which is one of the largest construction companies in Greece and a member of Ellaktor Group, recently won the international tender after offering 83 million dollars to build the 2.3 km long tunnel, outbidding seven other international companies who submitted bids varying from 54 percent to 81 percent of the initial 150 million dollar price tag set by the Albanian government. The highway, which is expected to cut the distance to Elbasan from the current 48 kilometers to only 31 kilometres, will have four lanes and two tunnels, 2.3 and 2.1 km long each–saving passengers to Elbasan 40 minutes in travel time. It is considered the biggest infrastructural project of the government’s four-year term, after the Durres-Kukes-Morine highway linking Albania to Kosovo, which was fully completed last October after the opening of the second Thirre tunnel.
