 Tirana, July 2, 2008 -Today Albania and the World Bank signed the credit agreements for three World Bank financed projects, totaling USD 64.5 million, which consist of: Improvement of the Secondary (regional) and Local (communal) Roads Project (USD20 million from IDA); Disaster Risk Mitigation and Adaptation Project (USD6.2 million from IDA credit and USD3 million IBRD loan); and The Energy Community of South East Europe APL Program – APL 5 for Albania Dam Safety Project (USD 35.3 million from IDA). The agreements were signed on behalf of the Republic of Albania by Minister of Finance Ridvan Bode and on behalf of the World Bank by the Country Manager Camille Nuamah. The ceremony was held at the Ministry of Finance in the presence of Minister of Intern Bujar Nishani and other high government officials as well as members of the team who have prepared the projects. These three projects were approved during June 2008 by the World Bank Board of Directors.
The Improvement of the Secondary (regional) and Local (communal) Roads Project of USD 20 million will improve access to essential services and economic markets, especially in the rural areas. It will also improve the management, financing, and condition of secondary and local roads in the country as well as support the introduction of the private sector in road maintenance on the secondary and local road network and will also act as a catalyst for other donors in this sector. The Disaster Risk Mitigation and Adaptation Project of USD 9.2 million will strengthen institutional capacities to reduce Albania’s vulnerability to natural and man-made hazards and to limit human, economic, and financial losses due to these disasters. This project will be the first of a two-phase Adaptable Program Loan (APL) for Albania, programmed for three years. The Energy Community of South East Europe APL Program – APL 5 for Albania Dam Safety Project of USD 35.3 million contributes to safeguarding the major hydroelectric plants of Albania and to improve their operational efficiency and enhance the stability of power supply for regional electricity market. With the approval of these projects and signing of their respective credit agreements, Albania marks the official graduation from IDA to IBRD, i.e. from soft IDA credits (concessional financing) for very low income countries into IRBD loans (commercial financing) for middle income countries.  “The World Bank considers this as a success story for our IDA lending because in just under two decades Albania has managed to advance from a low to middle income country with good progress on poverty reduction and a sound foundation for continued growth and development," said Camille Nuamah, Country Manager. “Albania made this transition from IDA to IBRD at a time when the World Bank commercial lending is becoming cheaper and with longer maturities. We quite are proud to have been able to assist the country to reach this level of development at this point”.
Albania joined the World Bank in 1991. World Bank commitments to the country to-date total approximately US$1.1 billion for 67 operations.
For more information, visit:
http://www.worldbank.org.al
# # #
|
RSS