Regional Broadband Infrastructure Development

Water Sector Performance and Investment Programme / Municipal Infrastructure V

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Project Financing

WBIF Grant WB18-ALB-ENV-01 € 1,400,000
National Contribution Own Contribution € 6,000,000
KFW External Grant Grant € 2,000,000
SECO External Grant Grant € 13,300,000
KFW External Grant Grant € 3,000,000
KFW Loan € 80,000,000
EU External Grant External Grant € 23,300,000
KFW External Grant € 6,000,000
Total € 135,000,000
Total Grants € 1,400,000
Total Loans € 80,000,000

Project Description

Building on the Municipal Infrastructure Programmes I-IV, Phase V has been established by the Albanian Government and the KfW, with envisaged donor contributions from the EU and Switzerland, with the objective of increasing funding in the sector to implement priority investments identified in the National Water Supply and Sewerage Master Plan and contribute to corporate development.

The Master Plan estimates the investment needs of €5 billion until 2040, equal to €160 million capital allocation per year. Phase V envisages the implementation of €130 million in water supply, sewerage, and wastewater treatment priority infrastructure in up to 10 municipalities, to which the WBIF contributes with a €1.4 million grant for the preparation of technical documentation.

The investments in these municipalities will ensure sustainable access to safe drinking water at socially acceptable and cost-covering tariffs, adequate sanitation, and improved performance of utilities.

The construction of these infrastructures is planned to be completed by the end of 2023.

Results and Benefits

  • collection efficiency increased by 5%, to 85% total
  • non revenue water decreased from 67% to 50%
  • a total of 23,093 new connections to water supply 
  • 4% increase in connection rate to water supply, and 5% to the wastewater system
  • an increase of 124,373 population benefiting from safe drinking water
  • 60,803 new households benefiting from improved sanitation services 
  • 354,931 new households benefiting from wastewater treatment 
  • Countries: Albania
  • Code: PRJ-ALB-ENV-015
  • Sector: Environment
  • Monitor IFI: KFW
  • Status: Implementation
  • Beneficiary:
Project financing split

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