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Tourism Project, WB: Infrastructure exceeds objectives, employment still under assessment

2026-07-07 19:41:44, Ekonomi CNA

Tourism Project, WB: Infrastructure exceeds objectives, employment still under

The country recently closed a nearly decade-long program financed with a loan from the World Bank for urban and tourism development in the south of the country.

The Integrated Urban and Tourism Development Project, implemented by the Albanian Development Fund, was scheduled to close on June 30, 2026. The World Bank, according to a now public document, assessed the progress towards objectives and the overall implementation progress as "satisfactory", while maintaining the overall risk at the "medium" level.

Financial data shows a contrast between the completion of works and the pace of financing. The initial loan, with a revised value of $72.42 million, was fully disbursed. Of the additional financing of $34.22 million, $23.45 million, or 68.53%, had been disbursed, leaving $10.76 million undisbursed as of June 29.

The bank said most of the work had been completed and the remaining activities were expected to be finalized by the end of June. The initial loan was closed in July 2025, with funds fully disbursed.

The most visible results are in urban infrastructure. The project built or rehabilitated 253,274 square meters of public spaces, more than double the target of 100,000 square meters. In the selected municipalities, 70.84 kilometers of roads were rehabilitated, against a target of 16 kilometers; 91.73 kilometers of street lighting and 63.26 kilometers of pedestrian streets were improved.

The number of direct beneficiaries reached 118,856 people, compared to the target of 92,482. Of these, 59,428 were women.

Tourism indicators also exceeded the targets set at the beginning of the program. The number of visitors to selected destinations increased by 341%, according to the report, against a target of 10%. Seven management plans and seven integrated projects for tourist areas were drafted, out of five that were foreseen for each indicator. Fourteen tourist areas improved accessibility, against a target of 11, while four municipalities established functional partnerships for destination management.

Employment remains the weak point. The project reported 2,000 new or better jobs, against a target of 3,000. The World Bank said this was the only interim indicator that had not yet reached the final target and that the result was being reassessed according to a new methodology for measuring better and higher-paying jobs.

The investments, launched after the project was approved in 2016 and expanded with additional funding in 2022, aimed to link urban rehabilitation with the growth of tourism and local businesses in southern Albania. Their closure leaves a balance sheet with a strong overshoot of infrastructure objectives, but also with questions about the final use of the remaining funding and the long-term impact on employment.

The total value of the project financing was around $106.6 million, of which $72.42 million was initial credit and $34.22 million was additional financing./Monitor.al





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