A green transport project in Tirana will be financed with a EUR 50 million loan, a grant of EUR 31.2 million, and EUR 29.2 million from the city budget.
Albania’s Ministry of Finance and Economy said it signed financing agreements for the Green Transport Tirana project with the Municipality of Tirana and Germany’s KfW Development Bank. They open the way for a EUR 50 million loan and a EUR 31.2 million grant from the Western Balkan Investment Framework (WBIF), it added.
Minister Ervin Mete, Mayor of Tirana Erion Veliaj and Director of KfW in Albania Brit Horschke signed the deals. The total estimated cost of the project is EUR 110.37 million, of with the Municipality of Tirana needs to cover EUR 29.17 million.
The grant is part of the fifth investment package under the EU’s Economic and Investment Plan for the Western Balkans
According to the ministry, the loan was approved by the German government through KfW. The two countries signed the loan agreement back in May 2021.
The grant is part of the fifth investment package under the European Union’s Economic and Investment Plan for the Western Balkans. The mechanism is for EUR 9 billion in grants, aimed at mobilizing a total of EUR 30 billion.
The project includes establishing a bus rapid transit (BRT) system of three lines (Unaza, Tirana e Re, Kombinat-Kinostudio) with battery-powered electric vehicles in Albania’s capital, the ministry explained. The aim is to improve the quality of services in public transport and reduce CO2 emissions.
The project is expected to reduce travel time by 20%
The endeavor was launched to provide a long-term environmentally friendly and sustainable solution that would be more affordable than other high-capacity public transport systems.
It will also expand the public transport network, reduce pollution, and reduce travel time by 20%, according to the ministry.
The Green Transport Tirana project will increase the speed of movement along the new lines, it stressed.
The ministry expects the system to be rolled out in full by the end of 2029.