MUNICIPAL INFRASTRUCTURE WORKS ON GATE TO ALPS

Promoter – Financial Intermediary

FONDI SHQIPTAR I ZHVILLIMIT

Location

• Albania

Description

A multisector framework loan to finance investment schemes prioritised in the Regional Integrated Tourism and Urban Upgrading strategy to promote sustainable tourism and economic growth in the north of Albania

Objectives

The project concerns an up to €50m framework loan to the Republic of Albania, acting as borrower and represented by the Ministry of Finance to support the sustainable development of the Coastline Gate of Alps area situated in northern Albania. The project is expected to support sustainable tourism and regional development by investing in basic infrastructure (wastewater treatment and water supply, pedestrian and cycling paths); natural and cultural heritage sites (protection of natural areas and historical buildings); and sustainable transport (upgrades to improve urban mobility, regional road accessibility and road safety, and public transport facilities). The promoter will be the Albanian Development Fund ("ADF"), a State led development organization, who set up an operational multi-annual programme of up to LEK 100 trillion (€872m), covering the period 2022-2028. Technical assistance is provided to ADF from EIB's Economic Resilience Initiative to identify priority investments, quantify related costs, verify alignment with EIB eligibility rules and provide initial support on Environmental Social Impact Assessment (ESIA).

Sector(s)

• Transport - Transportation and storage
• Water, sewerage - Water supply; sewerage, waste management and remediation activities
• Solid waste - Water supply; sewerage, waste management and remediation activities
• Urban development - Construction

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 50 million

Total cost (Approximate amount)

EUR 100 million

Environmental aspects

The Lake Shköder and the River Buna is a transnational RAMSAR site and under EU legislation, the project would fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU, as amended by Directive 2014/52/EU, and would therefore be subject to screening. The relevant provisions of the Habitats and Birds Directive (92/43/EEC and 2009/147/EC respectively) and Strategic Environmental Assessment (SEA) Directive 2001/42/EC also apply. In accordance with national legislation, it is expected that many of the project schemes will be subject to an EIA procedure. The competent authority for the EIA process in Albania is the National Environmental Agency (NEA), under the Ministry of Tourism and Environment. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives. Some of the schemes have a highly positive environmental impact, with a strong emphasis on preservation of natural resources and its rational utilisation by local population and tourists. The Technical Assistance will support the promoter to comply with EIB's environmental and social requirements and to develop a stakeholder engagement framework, a resettlement framework and grievance mechanism for the project. The capacity of the promoter to comply with the requirements of the Environmental Impact Assessment Directive 2011/92/EU as amended by Directive 2014/52/EU, Birds Directive 2009/147/EC and Habitats Directive 92/43/EEC (to be completed as relevant/applicable) and the requirements of social standards will be verified during appraisal.

Procurement

The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Under appraisal - 15/05/2024