Release date: 22 August 2022
Promoter – Financial Intermediary
HEKURUDHA SHQIPTARE SHALocation
Description
The project concerns the rehabilitation of a 120 km railway line from Vora to Hani Hotit, on the border with Montenegro. The project lies on the indicative extension of the Core Trans-European Transport Network (TEN-T) Mediterranean Corridor and will link Albania to the European railway network.
Additionality and Impact
The project concerns the rehabilitation of the 120km railway line between Vore and Hani i Hotit, the only existing railway link between Albania and the rest of Europe.
The project is expected to support the shift of traffic to more sustainable transport modes and to reduce related negative transport externalities, thus addressing important market failures. The positive external effects of the project are expected to include reduction of pollution, global emissions, traffic accidents and road congestion. By focusing the investment on a line that is part of the Mediterranean Core Corridor of the indicative extension of Trans European Network for Transport into the Western Balkans, coordination failures are addressed. The project improves cross border connectivity and is fully aligned with EU transport policy, EU Green Agenda and the country's national strategy. The project contributes to several Sustainable Development Goals.
The investment will generate time savings, operating cost savings, road safety and environmental benefits. It will improve the financial sustainability of the sector by allowing for effective use of assets so as to increase sector revenues as well as reducing maintenance costs.
The EIB loan will provide favourable financing terms and conditions and will be complemented with financing from EBRD and investment and technical assistance grants from the Western Balkans Investment Framework (WBIF). The Bank's presence ensures compliance with EU policies and international standards, offering valuable technical and financial advice to the Promoter.
Objectives
The project is of great strategic importance and will contribute to the development of railway transport infrastructure in Albania. It is part of the Core Network of the indicative extension of the Trans-European Transport Network (TEN-T) in the Western Balkans (Rail Route 2). The rehabilitation of the railway line will bring the infrastructure to EU standards and will create conditions for the development of passenger and freight services in Albania. By increasing the quality, availability and reliability of rail services, the project will develop multimodal and intermodal transport in Albania and the wider region, and thus facilitate trade and economic links with neighbouring countries and EU member states. Furthermore, the investment will enable increased economic growth and social development in Albania, and contribute to the long-term goal of building green, sustainable and integrated economies in the Western Balkans.
Comments
The proposed operation is expected be covered by the comprehensive guarantee granted to the EIB under the Dedicated Investment Window 1 as established in the Neighbourhood, Development and International Cooperation Instrument (NDICI) Global Europe upon the guarantee's effectiveness and subject to the European Commission's confirmation of the operation's eligibility.
Sector(s)
- Transport - Transportation and storage
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 120 million
Total cost (Approximate amount)
EUR 415 million
Environmental aspects
The project has an overall positive environmental impact. The project components will undergo an Environmental and Social Impact Assessment (ESIA) according to the national legislation and the Bank's environmental and social standards. The compliance of the procedures in place with EIB environmental and social standards and applicable national and EU environmental legislation will be further analysed during the appraisal.
Procurement
Procurement procedures will be examined during the appraisal and the EIB will require the Promoter to ensure that implementation of the project is done in compliance with the Bank's Guide to Procurement and relevant applicable EU public procurement rules.
Status
Signed - 20/03/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).