Albania Infrastructure and Tourism-Enabling Programme

Location:

Albania

Project number:

49351

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

FW

Approval date:

22 Jul 2020

Status:

Signed

PSD disclosed:

29 Jun 2018

Translated version of this PSD: Albanian

Project Description

Provision of a sovereign loan facility of up to EUR 60 million to the Republic of Albania to finance tourism-enabling and general municipal infrastructure and transport infrastructure, respectively (the "Albania Infrastructure and Tourism-Enabling Programme", "AITP" or the "Project").

The tourism-enabling infrastructure investments will be carried out in the regions of Berat, Korca, Fier and Shkoder (the "Designated Regions"), whereas general municipal and transport infrastructure investments will be made in the entire country including in the Designated Regions.

AITP will be co-financed with an EU grant of EUR 40 million that will be used, among others, for the rehabilitation of cultural and natural heritage sites and will be made available through the Instruments for Pre-Accession Assistance ("IPA").

Project Objectives

1. Enhance the competitiveness of Albania's tourism sector through a comprehensive approach including infrastructure development, cultural and natural heritage sites rehabilitation and support to
SMEs.

2. Improve municipal and environmental infrastructure across the country and regional transport links to provide more reliable access to economic centres across the country, including in the Designated Regions, and improve accessibility to certain touristic sites and touristic villages in these regions.

Transition Impact

  • The Project will enhance competitiveness of inland tourism so that Albania can develop its significant potential also outside the existing coastal destinations. This will be achieved through investment in tourism-related municipal and transport infrastructure and support to SMEs active in the tourism value chain.

AITP will further contribute to improving the quality and connectivity of infrastructure through enhanced local infrastructure, including local roads for more efficient and effective economic interactions.

  • The Project will contribute to the promotion of inclusive procurement practices to provide on-the-job training opportunities for young people during the phase of construction by engaging contractors of infrastructure sub-projects to provide on-site training opportunities for a number of young people.

Client Information

ALBANIA SOVEREIGN

The Borrower is the Republic of Albania represented by the Ministry of Finance and Economy. The Client and Executing Agency is the Albanian Development Fund (ADF) which is responsible for the management of local and regional infrastructure projects as well as supporting local government units with institutional strengthening.

EBRD Finance Summary

A sovereign loan of up to EUR 60 million.

Total Project Cost

The total estimated project cost is approximately EUR 113.3 million.

Environmental and Social Summary

Categorised B (ESP 2014). The Programme is expected to promote local economic development through tourism-enabling sub-projects in designated regions of Albania and general transport and municipal infrastructure sub-projects in other parts of the country. The programme is co-financed through EU grants which will specifically fund the rehabilitation and development of cultural heritage sub-projects. The initial review of the indicative sub-projects comprising road rehabilitation, cable car installation, water supply and wastewater infrastructure, construction and rehabilitation of cultural heritage sites and tourism enabling developments indicated that the associated ESHS risks can be readily addressed through the implementation of targeted mitigation and management measures. ESD has not identified any sub-projects in the indicative list that would trigger an A categorisation. ADF is an existing client of the Bank, familiar with the EBRD Performance Requirements (PRs) and has capacity to implement the project in accordance with the EBRD PRs.

Consultant support will be provided to ADF Project Implementation Unit (PIU) to facilitate the effective implementation of the Program sub projects in line with the Bank’s standards including E&S requirements. The Consultant will develop guidelines and provide trainings for the PIU to screen the proposed sub-projects to ensure that no category A components are included in the programme; to identify, assess, mitigate and manage EHSS risks encountered in the sub-projects; and to implement  good international practices including pollution prevention, public and occupational health and safety, biodiversity, resettlement, cultural heritage and stakeholder engagement.

Each subproject under the Programme is required to comply with EBRD PRs. The Bank will monitor the subprojects through the annual environmental and social reports to be submitted by ADF and site visits as necessary.

Technical Cooperation

The following Technical Co-operation assignments are envisaged as part of the Project:

  • Capacity building programme to enhance the tourism potential of the municipalities, small businesses and tourism associations.
  • Creditworthiness enhancement programme at the municipal level for Korca, Berat, Shkoder and Fier.
  • Project implementation support to ADF during the tendering process, project implementation and works supervision.
  • Lenders' Monitoring Engineer.
  • Economic inclusion consultant to assess, develop and implement inclusive procurement practices for part of the sub-projects, to offer effective on-the-job training opportunities to young people during construction activities relating to infrastructure investments
  • Technical and financial due diligence of the sub-projects.
  • Environmental and Social due diligence.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company Contact Information

Dritan Agolli
adf@albaniandf.org
+355 4 2235 597
+355 4 2234 885
www.albaniandf.org
Rruga "Sami Frasheri", Nr. 10 Tirana, Albania

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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