The Vorë-Hani i Hoti/ Mete railway signed the agreement: the largest grant awarded by the EU

2024-07-26 10:22:00, Aktualitet CNA

The Vorë-Hani i Hoti/ Mete railway signed the agreement: the largest grant

An agreement providing 136 million euros in EU grants for the rehabilitation of the Vorë-Hani i Hoti railway line was signed today, at the House of Europe, in Tirana, by the Minister of Finance Ervin Mete, EU Ambassador Silvio Gonzato and Head of EBRD in Albania, Ekatarina Solovova.

The funds are provided by the EU through the Western Balkans Investment Framework (WBIF) and represent the largest EU grant to Albania to date. The investment project, worth 373 million euros in total, is co-financed with loans from the European Investment Bank (EIB) (100 million euros) and the European Bank for Reconstruction and Development (EBRD) (99 million euros), which is the main institution financier in the project.

With the signing of the loan agreements at the beginning of the year, the signing of the EU grant completes the financial structure of the project and marks the beginning of its implementation. The investment will enable Albanian Railways to electrify more than 120 km of track and renovate 12 train stations, including new signaling systems, as well as safety improvements. This will enable safer and faster journeys with operating speeds of up to 100 km/h.

The Vorë-Hani i Hoti/ Mete railway signed the agreement: the largest grant

Ervin Mete, Minister of Finance said: "This is the highest grant from the EU to Albania for investment projects. The new Growth Plan for the countries of the Western Balkans, from which Albania is expected to benefit over 900 million euros, will create opportunities for other financing in the form of grants or soft loans. The aim is the progress of reforms and the acceleration of investments. We will make every effort to successfully implement this new joint commitment within the ambitious deadlines. The excellent cooperation to date makes us optimistic that this new opportunity will become a reality as is the project we are signing today."

This investment is part of the EU's strategy to extend the Trans-European Transport Network of the EU - TEN-T - to the Western Balkans region. This is Albania's international rail connection with regional and EU rail networks. The new line will improve market access and significantly increase international freight and passenger traffic to ports, terminals, capital cities and airports by rail.

The Vorë-Hani i Hoti/ Mete railway signed the agreement: the largest grant

Ambassador Silvio Gonzato, Head of the EU Delegation in Albania, said: "Connecting people is at the core of the European idea. The EU's biggest investment in Albania to date will reconnect Albanians within the rest of the region and Europe by train. The renovated railway line will promote domestic travel, international tourism, as well as support the overall socio-economic development of Albania. It will reduce the environmental impact of freight and passenger transport, thanks to the electrification of the new line. The project supports Albania's green transition, making the railway a more efficient and climate-friendly mode of transport.

The EBRD, as the leading international financial institution in the project, supports projects that promote regional connectivity and bring the Western Balkans closer to the EU.

Ekatarina Solovova, Head of the EBRD in Albania, said: “We are proud to partner with the European Union to improve the railway network in Albania. This project is a testament to our shared commitment to foster stronger regional ties in the Western Balkans and bring it closer to the EU. By investing in green infrastructure, we are paving the way for economic growth and a more sustainable future"./ CNA