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Local and international passengers will benefit from a loan of up to €36.87 million extended by the European Bank for Reconstruction and Development (EBRD) to Albanian Railways, the country’s national railway company.
The funds will enable Albanian Railways to rehabilitate the existing railway line between Tirana and Durres and construct a new railway line connecting Tirana with Tirana International Airport. The railway sector in Albania is very underdeveloped and the only international link opened in 1984 as a freight line between Shkodër and the border with Montenegro.
The EBRD-financed investments will address this issue. The rehabilitation of the line between the capital Tirana and the coastal town Durres will make train journeys more attractive and lead to a reverse in declining customer numbers. The Tirana – Durres line and the airport connection are part of the Western Balkans Core Network and the EU Connectivity Agenda.
The investment is expected to be co-financed by the Western Balkans Investment Framework, a joint facility of the European Commission, participating Financial Institutions (FIs), bilateral donors and Western Balkans countries, which is considering an investment grant of €32.9 million. Grants for technical assistance are expected
Sue Barrett, Director, Head of Transport, EBRD said: “We are very pleased to sign this important agreement today. Our loan will promote transport connectivity in the Western Balkans as an important factor for the economic development, regional cooperation and EU integration.”
Mr Arben Ahmetaj, Minister of Finance of Albania said: “This is a very important project which marks the start of the revival of the Albania’s railway sector. The project will facilitate transport between the cities of Tirana and Durres including a new rail line to Tirana International Airport, which represents the region with the highest population density and the most important economic and administrative region of Albania. The Project will also support the development of HSH as an independent entity aiming to operate in the future in accordance with commercial principles.
Railways offer low carbon transport in line with the EBRD Green Economy Transition (GET) approach. In support the project will include the development of an asset management plan and track access charges methodology for Albanian Railways and improvement of its accounting and reporting systems. Technical Cooperation support is expected by WBIF, the Central European Initiative (CEI) and the EBRD Shareholder Special Fund.
Since the start of its operations in Albania, the EBRD has invested more than €1 billion in about 75 projects in the country. The Bank is active in all sectors of the economy, with a special emphasis on infrastructure and energy, where demand and potential are high. The EBRD’s strategic priorities for 2016-18 in the countries where it invests are re-energising growth, strengthening regional integration and addressing global challenges.