Albania: €90 million EU financial package for Durrës – Rrogozhina railway upgrade

This article is published in association with European Investment Bank.

• The EU funds, consisting of a €60.5 million grant under the Western Balkans Investment Framework and a €30 million loan from EIB Global, will help to modernise the 34 km railway line.
• The financial package was signed at a ceremony held in Tirana, attended by high-level representatives from the European Commission, the government of Albania and EIB Global.
• The project will facilitate safer and more efficient and sustainable passenger and freight transportation, contributing to socioeconomic growth and regional integration.

During High Representative for Foreign Affairs and Security Policy and European Commission Vice-President Kaja Kallas’ official visit to Albania, an EU financial package worth €90.5 million for the reconstruction of the Durrës – Rrogozhina railway section was signed by the European Investment Bank (EIB Global) and the government of Albania. The funds consist of a €60.5 million EU grant channelled under the Western Balkans Investment Framework (WBIF) and a €30 million EIB Global loan. The agreement was signed by EIB Global Director of the Enlargement and Neighbourhood Department Lionel Rapaille and Minister of Infrastructure and Energy of Albania Belinda Balluku, in the presence of Vice-President Kallas and Prime Minister of Albania Edi Rama.

The funds will make it possible to modernise a 34 km railway line between the port of Durrës and Rrogozhina in central Albania, which lies on the multi-modal Pan-European Corridor VIII connecting the southern Italian ports, Albania, North Macedonia and Bulgaria. This project is of strategic importance, extending the Trans-European Transport Network (TEN-T), and also as part of the European Union’s Economic and Investment Plan for the Western Balkans. The project is expected to cost a total of €121 million and €30 million in co-financing will be provided by the European Bank for Reconstruction and Development (EBRD).

High Representative for Foreign Affairs and Security Policy and European Commission Vice-President Kaja Kallas said: “The signature of the European Investment Bank loan for the construction of the Durrës – Rrogozhina railway track as part of Corridor VIII, co-funded by the EU, is an important milestone. This project will create new jobs, enhance trade and improve connectivity by bringing Albania closer to its neighbours and close to the European Union. It will also serve as a critical route between Member States and NATO for military mobility in Southeast Europe which is extremely important in the current security environments.”

EIB Vice-President Rober de Groot, in charge of the Western Balkans, said: “We are delighted to be part of this significant Team Europe effort, which underscores our shared commitment to developing safer, smarter and greener transportation links in the Western Balkans. As a key segment of Corridor VIII, this project will enhance Albania’s socioeconomic development by improving accessibility and facilitating trade and economic connections within the region and with the European Union. Going forward, EIB Global will continue to provide technical and financial assistance to support Albania’s EU accession process, as well as through the New Growth Plan.”

Albanian Prime Minister Edi Rama said: “The signing that took place is part of a massive investment program in railway infrastructure. This is why the five-year period that separates us from the end of this decade will also be a period where railways return to Albania. This is one of many reasons not only to believe but also to fight for our membership in the EU. Thanks to this relationship, we are able today to carry out a series of investments that would otherwise be impossible for us.”

As one of the leading financiers in the transportation sector in the Western Balkans, EIB Global is backing several rail projects in Albania. This includes a loan for the Vorë to Hani-Hotit railway line and technical support provided under the EIB’s Economic Resilience Initiative for the second phase of the Pan-European Corridor VIII railway. The JASPERS advisory programme has also supported the development of an action plan to strengthen the management capacity of Albania’s railway infrastructure.

Background information:

About the EIB and EIB Global:

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.

About EIB Global in the Western Balkans:

The EIB is a leading international financier in the Western Balkans. Since 2009, the Bank has financed projects worth almost €11 billion in the region. Alongside its continued support to help rebuild and upgrade public infrastructure, since 2010 the EIB has expanded into many new areas, such as healthcare, research and development, education and small and medium-sized enterprises (SMEs). For detailed information on EIB activities in the Western Balkans, please visit: www.eib.org/en/publications/the-eib-in-the-western-balkans

About EIB Global in Albania:

EIB Global has been active in Albania since 1995. To date, 27 projects have been financed and over €700 million has been invested, predominantly in key transport, energy, water and wastewater infrastructure. For more information about EIB projects in Albania, please visit: https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/albania/index.htm