March 30, 2016 – Minister of Finance Mr. Arben Ahmetaj and Deputy General Director of the Kuwaiti Fund for Arab Economic Development, Mr. Hamad Al-Omar signed today the Loan Agreement for the “Vlora River Road Rehabilitation” Project.
As Minister Ahmetaj pointed out, this is an important project for this area, with over 40,000 inhabitants and about 60 villages. The reconstruction of the road will create a new corridor which is more attractive, safer and easily traversable compared to the current road that connects Vlora County with the south and especially with the coast. On the other hand, this project will guarantee economic and social development in this area and throughout the Vlora District, through improving access to transport and markets, increasing the range and quality of services for the residents of the area, developing sub/branches of tourism such as ecotourism or agrotourism and job growth.
The project includes civil works for the reconstruction of the existing main road Vlorë-Peshkepi-Qeparo, as well as its expansion by turning it into a two-lane road with increased movement speed. The project also includes rehabilitation works of drainage structures and safety and lighting equipment, even at pedestrian crossings in the main towns along the route. The project is expected to start implementation at the beginning of 2016 and finish at the end of 2019.
As for implementation, the project will be implemented by the Albanian Development Fund. The Ministry of Transport through the Albanian Road Authority will be responsible for maintenance. While in terms of financing, the Kuwait Fund loan of 12 million Kuwaiti Dinars (KD) or about 40 million USD, with a maturity period of 24 years including a principal free period of five years, together with a contribution from the Government Albanian will be used to finance the rehabilitation of the segment Vlorë – Ura e Peshkepi – Ura e Lasko – Qeparo. The Albanian government has a fruitful financial cooperation with the Kuwait Fund for Arab Economic Development. Currently, the Fund has granted 6 loan agreements with a total value of about 21.4 million Kuwaiti Dinars or the equivalent of about 70.8 million dollars, as well as funds for technical assistance with a value of about 837 thousand Kuwaiti Dinars or the equivalent of 2.8 million dollars, in the fields of financing mainly transport and agriculture, in terms of irrigation. After 2008, there were no applications for projects from the Albanian government to the Kuwaiti Fund, so this agreement can be considered as a good resumption of cooperation.
