CORRIDOR VIII RAIL PHASE I - ALBANIA

Promoter – Financial Intermediary

HEKURUDHA SHQIPTARE SHA

Location

• Albania

Description

Modernisation of 34 km of single track rail line, between the port of Durres and Rrogozhine in central Albania, lying on multi-modal Corridor VIII which connects the southern Italian ports, Albania, North Macedonia and Bulgaria.

Objectives

The project aims to rehabilitate, modernise, electrify and thereby bring into compliance with EU standards, 34km of single track rail line from the port of Durres to Rrogozhinë in central Albania. This part of the line originally opened in 1950, after which it has been subject only of normal maintenance. The infrastructure is in poor condition and not compliant with European standards. Services on this part of the rail network have virtually ceased, due in large part to the deteriorated condition of the infrastructure. The project, together with other investments and sectoral reforms, is expected to contribute to modal shift from road to rail and thereby generate economic benefits in terms of operating, safety and environmental savings. The project is a significant component of the progressive completion of Corridor VIII, a 1,500 km multi-modal corridor running east/west between Varna port in Bulgaria, crossing North Macedonia and Albania, and connecting via Durres port to the southern Italian ports on the Adriatic coast.

Sector(s)

• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 90 million

Total cost (Approximate amount)

EUR 121 million

Environmental aspects

The project works are expected to be mainly within the existing right of way; therefore potential negative environmental and social impacts are likely to be minor and amenable to standard mitigation and management measures. If situated in the EU, the project would normally fall within Annex II of Directive 2011/92/EU, as amended by Directive 2014/52/EU, and therefore be subject to screening. In 2020, the Competent Authority determined that the project shall be subject to a full EIA procedure under Albanian law. The ESIA has been prepared and will be submitted to the prescribed regulatory procedure for obtaining an environmental consent from the Competent Authority prior to tendering the works. The ESIA has not identified any potential impact on any conservation areas or important biodiversity resources. The compliance of the project's preparation and implementation arrangements with EIB environmental and social standards will be assessed and confirmed during appraisal.

Procurement

The Bank will require the Promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Under appraisal - 22/04/2020