ALBANIA has secured a €100m loan for railway modernisation from EIB Global. The arm of the European Investment Bank (EIB) that funds projects outside the European Union (EU) has agreed a deal to fund the modernisation and electrification of 120km line from Vorë in central Albania to Hani i Hotit on the border with Montenegro.
As well as electrification of the line, 12 stations will be modernised, along with the introduction of new telecommunications and signalling systems and safety improvements. These will enable speeds of up to 120km/h. As an extension of the Core TEN-T Mediterranean Corridor, the Vorë – Hani i Hotit line connects Tirana with Podgorica and is the only railway link between Albania and the rest of Europe.
According to EIB, the project aims to increase the accessibility and attractiveness of rail transport, contributing to socio-economic development, better trade links, the shift to more sustainable modes of transport and the decarbonisation of local economies.
The EIB Global loan is part of a Team Europe financing package for the project, which also includes a €126m EU investment grant channelled via the Western Balkans Investment Framework (WBIF) and a €98.75m loan from the European Bank for Reconstruction and Development (EBRD).
The signing of the loan agreement took place in Tirana in a ceremony attended by an EIB Global delegation led by EIB vice-president, Mr Kyriacos Kakouris, Albanian prime minister, Mr Edi Rama, deputy prime minister, Ms Belinda Balluku, and chargé d’affaires of the EU delegation to Albania, Mr André Rizzo.
“Following the Tirana – Durrës railway line, with its branch to Rinas, the Vorë – Hani i Hotit line represents the Albanian government’s second major project in rail transport,” says Ballaku.
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