On 27 January 2021, Minister of Infrastructure and Energy, Ms. Belinda Balluku and the Ambassador of the Federal Republic of Germany to Albania, Mr. Peter Zingraf signed three governmental agreements on German-Albanian Financial Cooperation. The loans will have a total amount of EUR 125 million. The German Development Bank KfW will provide the funding.
The governmental agreements will open the way to the implementation of the Fierza Hydropower Plant Electro-Mechanical rehabilitation, strengthen the Integrated Regional Development and establish the Sector Program for Integrated Solid Waste Management.
The Sector Program for Integrated Solid Waste Management (EUR 62 million) will support a transition towards EU standards in waste management across the whole country. It will support investments in waste separation, collection, composting, treatment and final disposal and most importantly prevention of waste will be in the focus of the program. The program is jointly supported by KFW, the EU and the Swiss SECO.
The Fierza Hydropower Plant Electro-Mechanical rehabilitation (EUR 42 million) will sustain one of the most important energy sources of Albania and contribute to the regional stabilisation of power supply. The program will bejointly supported together with the Western Balkan Investment Framework (WBIF).
The Integrated Regional Development Program (EUR 21 million) will support the economic development, focusing in tourism and private sector promotion in the Southern Coastal as well as the Korca/Progradec region. The program aims at creating a better perspective for a higher employment generation and economic development in these regions.
In Albania, KfW implements the German Financial Cooperation and provides grant aid and concessional loans for key investments and project-related consultancy services. The German development cooperation with Albania started in 1988. Since then, the German Government has committed more than one billion Euros and has become the most important bilateral donor country. The waste management, energy and sustainable economic development sectors are a priority area within the scope of the German Financial Cooperation with Albania, for which the German Government has committed more than € 623 million since 1988.
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