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What does Albania gain from the Berlin Process? From the Tirana-Rinas-Durrës railway, to the Rehabilitation of the Fierza HPP
10/15/2023 19:42

The European Commission, at the high-level meeting of the Berlin Process tomorrow in Tirana, will announce a large investment package from the European Union budget. The package is expected to be presented in detail by the President of the European Commission, Ursula von der Leyen, at the beginning of November, when the annual enlargement program will be published with progress reports for countries that have opened negotiations for membership, such as Serbia, Mali and Zi, Albania and North Macedonia, as well as the candidate countries for membership, such as Kosovo and Bosnia-Herzegovina.

Kosovo is already under the intervention measures of the EU, which include the non-examination of some projects that are financed by the European Union. It is hoped that in Tirana the tones will be lowered for Kosovo and the projects will be re-introduced for review, especially after the terrorist attack in Banjska on September 24, 2023. Serbia is under the orbit of imposing EU sanctions, depending on the results of the investigation into the terrorist attack.

Berlin Process Connectivity Agenda

The Berlin Process is an initiative by former Chancellor Angela Merkel of Germany in 2014 to help the economic development of the six Western Balkan countries and their alignment with the European corridors of interconnection, following the uncertainty created by the annexation of Crimea by Russia in the same year.

The Berlin process has as its main plan the plan called the Connectivity Agenda. This agenda aims to prepare and finance a number of projects of strategic importance between the countries of the Western Balkans, which aim to connect the countries of the Western Balkans more strongly with each other and with the European Union. The focus is mainly on transport projects, but also energy interconnection. A special emphasis has been given to digital interconnection and the digital market.

By September 2023, in total value, Albania represented about 13% of the Agenda projects (from 7% at the end of 2019 and 11 percent at the end of 2020), improving its position, due to the approval of two projects new at the Sofia summit, for the rehabilitation of the HPP in Fierza and the By-Pass of Tirana. Albania also has the widest distribution of investments by sector, including transport, energy and the digital sector.

Investment Instrument for the Western Balkans

The Berlin process offers the countries of the Western Balkans a financing instrument, which is the Western Balkan Investment Instrument. The instrument ensures the support of six Western Balkan countries from the European Union Commission, with grants and co-financing from other financial institutions, such as development banks (European Bank for Reconstruction and Development EBRD, German KfW Bank, World Bank, etc. ), through soft loans.

Together with beneficiaries in the Western Balkans, the Western Balkans Investment Facility is part of a unique partnership that sets priorities and assistance packages for strategic investment and institutional reform in the region. The instrument contributes to the European perspective of the Western Balkans by supporting investments that improve competitiveness and economic growth.

Since 2010, the instrument has provided 1.3 billion euros in grants for over 230 projects and 20.8 billion euros in investments in transport, energy and digital networks, in renewable and efficient energy, in water supply and wastewater management systems, in flood protection, in education, scientific and cultural research centers, in health and judicial institutions, which are essential for sustainable development in the region.

In this process, Albania has so far been one of the most active countries. Albania has moved from fourth place, in 2014, to second place in 2016-2017 and in 2021-2022, regarding the application and absorption of funds offered by the Western Balkans Investment Instrument.

Albania is in second place, after Serbia, with 36 percent of absorbed funds. In several calls for project proposals of the Western Balkans Instrument, which supports the preparation with technical assistance of several important projects of the six beneficiary countries, Albania was ranked first for the years 2021-2022.

Projects of Albania

Support in the construction of the Tirana by-pass 150.9 million euros

Tirana-Rinas-Durrës railway 91.5 million euros

Interconnection Albania-North Macedonia 70 million euros

Internet broadband (broad-based) 40 million euros

Quays 1 and 2 Port of Durrës 62.4 million euros

Rehabilitation of the HPP of Fierza 42.7 million euros

The Western Balkans Investment Facility is a unique and successful cooperation platform that brings together beneficiaries, donors and borrowers to improve the harmonization and cooperation of investments for the socio-economic development of the Western Balkans.

The instrument is a joint initiative of the European Commission, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, bilateral donors and beneficiary countries in the Western Balkans, launched in December 2009, to provide technical assistance and financial for strategic investments in the region. The instrument was joined by the German Development Bank and the World Bank, and then by the French Development Agency.

The Investment Facility for the Western Balkans combines grants, loans and beneficiary contributions for infrastructure investments in the energy, environment, social, transport and digital sectors, as well as for private sector development.

The main projects of Albania

1. Tirana-Rinas-Durrës railway.

The purpose of the project is the rehabilitation of 34.5 km of railway between Tirana and Durrës, as well as the construction of 7.4 km of new railway between Tirana and the international airport Mother Teresa in Rinas. This is a very important project for Albania, which will create economic opportunities, including sustainable tourism, and enable "green" movement between the largest urban areas in the country.

2. Tirana By-Pass

It is the new project approved at the Sofia Summit in 2020. This investment project envisages the construction of a 21.5 km long ring around the capital, which includes four interchanges, a bridge and underpasses and overpasses. The project is already completed in its vast majority.

The by pass is simultaneously part of two road corridors that cross the country: the Adriatic-Ionian Corridor, which will connect Trieste in Italy with Kallamata in Greece, and Corridor VIII, which connects North Macedonia with the Albanian territory, with an exit to the Port of Durrës and the Adriatic Sea.

The value of the project is 150.9 million euros. The European Union has granted a loan of 31.9 million euros, while the EBRD has provided a loan of 109.2 million euros. Both the loans and the grant were secured, thanks to the good preparatory work of the project, by the Ministry of Infrastructure and Energy. 2.5 million euros are grants and the contribution of the Albanian government is 7.3 million euros.

The new By-Pass is being built in the region and the most populated junction of the country's road system. He has connected roads that have already been built, such as the Tirana-Durrës and Tirana-Elbasan highways. This by-pass has reduced traffic, pollution and accidents as well as facilitated the flow of transit traffic from other parts of the country.

3. Rehabilitation of Fierza HPP

The project for the rehabilitation of the Fierza Hydropower Plant is the second Albanian proposal approved at the Sofia Summit. The project has a total investment value of 42.7 million euros, of which 27.2 million euros is a loan from the German Development Fund KfW, 8.4 million euros in EU financing and 7.1 million euros in financing from the Albanian government.

The Fierza Hydropower Plant is currently the most important generating unit of the electric power system, which produces an average of 1328 GWh/year and plays the role of the 1-year regulator of the Drin Cascade.

The aggregates of the Fierza hydropower plant were installed about 43 years ago and have undergone only a partial rehabilitation. The realization of this investment will enable the increase of electricity production due to the increase in efficiency in production, as well as the reduction of expenses for periodic maintenance, the increase of the readiness of the work, as well as the increase of the life of the work and by at least 25 years. ./Alxiptarja.com

https://javanews.al/cfare-fiton-shqiperia-nga-procesi-i-berlinit-nga-hekurudha-tirane-rinas-durres-te-rehabilitimi-i-hec-it-te-fierzes/