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EIB invests 100 million euros for the modernization of railways in Albania

2024-03-20 22:05:00, Aktualitet CNA

The Global EIB continues to support sustainable transport in the Western Balkans with EUR 100 million signed for the EU-funded Vorë-Hani i Hoti railway line. As part of the EU's Economic and Investment Plan, the project benefits from a package of substantial grants, loans and technical assistance. The project will promote the shift of transport mode to rail, contributing to a more environmentally sustainable transport system, in line with the EU's green agenda. Improved rail infrastructure contributes to increased regional connectivity and efficiency of rail freight and passenger transport.

BEI Globale, the arm of the European Investment Bank (EIB) for financing activities outside the European Union, has signed a loan worth 100 million euros with Albania as part of a financial package of 'Team Europe' for the modernization and electrification of a railway line. with a length of 120 km from Vora in central Albania to Hani e Hoti on the border with Montenegro. The project is in line with the EU's strategic support for the construction and rehabilitation of key railway sections in the Western Balkans, aiming to increase the accessibility and usability of rail transport, contributing to socio-economic development, better trade connections, the transition to more sustainable modes of transport and decarbonisation of local economies.

Team Europe's funding package for this project includes the EIB's EUR 100 million loan, which was finalized today, an approved EU investment grant of EUR 126 million, channeled through the Investment Framework of the Western Balkans and a loan worth 98.75 million euros from the European Bank for Reconstruction and Development. The signing ceremony took place in Tirana and was attended by a delegation of the EIB Global, headed by the EIB Vice President Kyriacos Kakouris, the Prime Minister of Albania, Edi Rama, the Deputy Prime Minister Belinda Balluku and the Chargé d'Affaires of the EU Delegation in Albania André Rizzo.

EIB Vice President Kyriacos Kakouris, responsible for the Bank's activities in the Western Balkans, said: “This project best demonstrates the strong partnership within the 'Team Europe' initiative. Our joint efforts will strengthen the connection between Albania, the region and the European Union, while also fostering sustainable mobility that lays the foundations for a smart, resilient, safe and comprehensive rail network in the country and the region. As the EU's climate bank, the EIB is fully committed to supporting the development and modernization of the railway sector in Albania and throughout the region."

The Deputy Prime Minister of Albania and Minister of Infrastructure and Energy Belinda Balluku said: "The railway line Vorë - Hani i Hoti, which stretches 120 kilometers to the border with Montenegro, is important not only for Albania, but also for regional connectivity, as it will facilitate the movement of goods and citizens, promoting economic growth. After the Tirana-Durrës railway line, with a branch in Rinas, the Vorë-Hani i Hoti railway line represents the second major project of the Albanian government in railway transport. The European Investment Bank remains one of our most important partners in the realization of several strategic road and railway infrastructure projects."

The project will enable the electrification of railway tracks, the reconstruction of 12 railway stations, the introduction of a new telecommunications and signaling system and security improvements. These will enable speeds of up to 120 km/h, increasing the efficiency and capacity of passenger and freight rail transport. As an extension of the main TEN-T Mediterranean corridor, the Vorë-Hani i Hoti railway line connects Tirana with Podgorica and is the only rail link between Albania and the rest of Europe.

The Chargé d'Affaires of the EU Delegation to Albania, André Rizzo, said "With the progress of Albania and the region on their path towards EU integration, people can already experience concrete benefits from this process. The EU-funded Vore-Hani i Hoti railway line will bring faster and safer journeys for both goods and passengers along the Adriatic coast. It will promote connectivity for people and trade in Albania, the Western Balkans region and the EU. Moreover, it will also contribute to the advancement of Albania's green transition".

A team of experts from the JASPERS joint advisory program of the European Commission and the EIB have developed an action plan to strengthen capacities for the management of railway infrastructure projects in Albania. The EIB is also providing technical support to the Government of Albania for the preparation of the Corridor VIII railway project on the Durrës-Rrogozhinë and Rrogozhinë-Pogradec railway lines.

The EIB is the leading financier of railway projects in the Western Balkans, lending over €1.7 billion for investments in the railway sector in the region to date. In the last ten years, the Bank has provided over 40 billion euros to support railway projects around the world./ CNA