The World Bank Board of Directors approved a EUR 265.9 million loan for two projects which will be implemented by the Albanian government. The Guarantee based in Policies for Public Finances project worth EUR 200 million and the Project for the Maintenance and the Road Safety based on Results worth EUR 65.9 million are aimed at improving the management of the public finances and the road safety in Albania.
The Guarantee Based in Policies for Public Finances project will be implemented with the aim to improve the management of public finances in terms of taxes and financial obligations, current reforms which are being implemented in this sector. The implementation of this project worth EUR 200 million will help in the improvement of the fiscal stability, the repayment of the outstanding debts and the increase of revenues.
Doerte Doemeland, a Senior Economist in the World Bank’s Europe and Central Asia region declared that “this project supports the main reforms which are crucial in keeping the tendency of revenues’ increase, by new investments and social services aimed at poverty reduction.” Doemeland added that the project will reduce the costs of Albania for lending and will release the capital of second tier banks regarding lending in the private sector.”
The second project approved by the World Bank Board of Directors worth EUR 128.47 million will serve for the improvement of the road safety in Albania and the maintenance of the road system.
“The Project for the Maintenance and Road Safety” project aims to strengthen the stable and efficient management of roads and safety conditions, since the road safety is still an issue in the country. The loan for this project will also go for the financing of several reforms in the public investments management, in order to ensure the successful implementation of them.
Artan Guxho, a Senior Infrastructure Engineer at the World Bank and manager of the project declared that the project will improve the road safety in circa 1334 km national roads. “From this project will benefit all the users of the road system throughout Albania as a result of the improvement of the road maintenance and the reduction of social and economic costs related to road accidents.”
The results of this project will be measured by predetermined objectives based on the periodical performance of roads, through the evaluation of national road system and the preparation of long term plants for the road system maintenance. The project is co founded by the Albanian government with EUR 62.57, and its total costs are calculated to be EUR 128.47 million.
Since 1991, the World Bank has financed 86 projects in Albania, worth US 2.4 billion.