Statement of Richard Martin Humphreys, Programme Team Leader of Transport in the launching ceremony of the Secondary and Local Roads Project

Deputy Prime Minister, Ladies and Gentlemen,

The World Bank has a long history of successful collaboration with the Government of Albania in the Transport Sector is happy to support the Government of Albania, through the Albania Development Fund, to prepare and implement the Secondary and Local Roads Project.

Over half (55 percent) of the Albanian population lives in rural areas, and one-quarter (24 percent) of the rural population is estimated to live in poverty.  A recent survey, noted that, after employment and income, the majority of respondents considered infrastructure problems to be the main factors affecting their low standard of living.

Rural inhabitants have also acknowledged that poor road access makes it difficult to reach markets, contributes to migration to urban areas, and inhibits the delivery of health and education services . Forty-nine (49) percent of rural producers have stated that the lack of a good road represents their biggest marketing problem. 

The problems facing the regional and local road network have been summarized in a number of recent Bank Studies , : Only 39 percent of the local road network is paved, the lowest in the region, and 95 percent is reported to be in a poor or very poor condition – with a number of sections impassable for much of the year.

Local revenue sources, such as vehicle registration charges, are insufficient for necessary maintenance - only about 40 percent of what is needed in maintenance expenditures is actually expended on the local road network at present.  

The proposed project will have three main components: (i) The improvement of priority sections of the regional road network; (ii) the improvement of priority sections of the local (commune) road network; and (iii) essential institutional strengthening to improve the management and financing of both networks.
 
The provisional scale of the project.  The provisional expectation is that the program will encompass between 1,000 – 1,500 km of regional and local roads, implying a total project of approximately US$ 200-400 million. 

The World Bank contribution is a US$ 20 million IBRD loan, although co-financing, has been discussed, and provisionally agreed in some cases, with a number other international financing institutions.

This project represents a substantive first step to placing the management and financing of the regional and local road network on a sustainable basis for the future and making a real impact on the quality of lives of rural inhabitants.

The World Bank, together with our donor partners, looks forward to working with the Government to prepare and implement this important project.