Regional and Local Roads Connectivity

Location:

Albania

Project number:

50123

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Target board date:

04 Sep 2019

Status:

Passed Final Review, Pending Board Approval

PSD disclosed:

13 Jun 2018

Translated version of this PSD: Albanian

Project Description

Provision of a sovereign loan to the Republic of Albania for the benefit of the Albanian Development Fund (ADF) to finance the rehabilitation of key regional and local roads in Albania. The Project is part of a larger investment programme for the rehabilitation of Albania's regional and local road network which will be parallel-financed by a World Bank loan.

Project Objectives

  • Support Albania's economic development and contribute to its internal integration by improving access to social infrastructure services.
     
  • Improve the quality of road service and road safety and reduce vehicle operating costs and travel time. Through improvement of regional transport links, the Project will provide more reliable access to economic centres and will generate road user benefits as well as productivity gains accross the agricultural and tourism sectors.

Transition Impact

Good

  • The Project will support Albania's internal integration by improving connectivity between its regions that are currently inadequately integrated.
     
  • In line with the Green Economy Transition (GET) approach, the Bank will engage with ADF in the identification of key climate risks and the integration of structural and non-structural design measures in the Project in order to increase resilience of the investments and contribute to improved management of future climate change impacts.

Client Information

ALBANIA SOVEREIGN

The Borrower is the Republic of Albania represented by the Ministry of Finance and Economy. The Client is ADF which is responsible for the development of the local and regional road network.

EBRD Finance Summary

USD 50,000,000.00

A sovereign loan of up to USD 50 million.

Total Project Cost

USD 62,900,000.00

The total Project cost is estimated at approximately USD 63 million.

Environmental and Social Summary

Categorised IESE (2014). The Project will improve road quality, safety access and will include climate resilience measures as roads in Albania are frequently subject to impacts of flooding and landslides. The environmental and social (E&S) impacts associated with the Project are expected to be readily identified and managed via the implementation of an environmental and social
action plan (ESAP).

Environmental and social due diligence (ESDD) will be carried out with the assistance of consultants and will include an appraisal of the proposed investment plan to ascertain if there are any E&S issues that will need to be considered as part of the project implementation and if any road sections include significant widening and would be deemed a Category A project.

Site specific environmental and social management plans, stakeholder engagement plans and road safety audits may also be required. ADF's capacity to implement the Project in compliance with
the Bank's Performance Requirements (PRs) will be assesed and will include labour, adequacy of contractor management arrangements and supervision, especially health and safety arrangements
during road works.

A non-technical summary, stakeholder engagement plan and ESAP will be developed and agreed.

This PSD will be updated following the completion of the ESDD.

Technical Cooperation

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

1. Preparation of the detailed design of the road sections to be financed by the Project;
2. Works supervision;
3. Project implementation support;
4. Lender's Monitoring Engineer.

Company Contact Information

Ermir Omari
eomari@albaniandf.org
+355 4 2235 597
www.albaniandf.org
Rr. Sami Frasheri, Nr. 10, Tirana, Albania

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