27 January- EBRD and Albanian Government concludes negotiations for joining the “Secondary and local Roads”

On 21 and 22 January a delegation of the Albanian Ministry of Finance and Albanian Development Fund, chaired by the Deputy Minister of Finance Mr. Nezir Haldeda, visited the headquarters of European Bank for Reconstruction and Development in London. The purpose of this visit was the negotiation of a financial loan, on the framework of “Secondary and Local Roads” project. After two days of negotiation, regarding the terms of loan and the procedures for the implementation of the project, the parties signed the minutes of negotiation. ADF was represented by Mr. Benet Beci, Executive Director, Miss. Valentina Kazanxhi, Head of Legal Unit, and Mr. Blendi Bushati, Head of Local Development Unit.

The 50 million Euro loan is expected to become effective after the final approving by EBRD Board of Governors and the ratification by the Albanian Parliament. This Loan is part of a coordinated project with a value of 137 million euro, supporting the ongoing “Secondary and Local Roads” project. The coordinated project will be a co financing with a 50 million euro loan from the European Investment Bank, and 33 million Euro grant from the EU IPA programs 2010 -2011. Another grant of 4 million Euros from Western Balkan Investment Framework will cover the additional costs related to the project, such as design and supervision, technical assistance etc.

“The Improvement of the Secondary and Local Roads” Project, which is co-financed by the World Bank and other donors amounts at US$ 400 million, aims at enhancing the concrete efforts in the improvement of local infrastructure and the increase in access to essential services and economic markets, especially in the rural areas via the rehabilitation of about 1500 km of road. Currently 210 km of local and regional road are under the implementation process at an estimated budget of US$ 107 million.

Till the end of 2010 is estimated that the amount of local and regional road improved or under implementation will be 340 km. There have been drafted the technical designs and documentations for the procurement of 400 km of road, and it has been successfully completed the inventory for 3500 km of regional and local road via the establishment of a system which shall assist especially in the investment prioritization based on objective technical criteria.