The Parliamentary Committee for Production Activities, Trade and Environment approved a loan agreement with the German Development Bank KfW, for the financing of the "Green Transport of Tirana" project.

The Deputy Minister of Finance, Adela Xhemali, in her speech, stated that the loan is worth Euro 50 million. "This development program for high-capacity public transport relies on an alternative, which guarantees a long-term and sustainable solution, friendly to the environment, as well as with acceptable costs about other high-capacity transport systems," she said.

The purpose of the project is not only to improve service delivery in public transport but also to reduce CO2 emissions and local pollutants, thus contributing to climate and environmental protection targets. 

The total project costs of Euro 110.26 million are covered by funding from the EU through a non-repayable grant of Euro 31.09 million (via the Western Balkans Investment Framework), a Euro 50 million loan from KfW Development Bank, and Euro 29.17 million by the Municipality of Tirana.

The Green Transport Tirana project was presented on March 6, marking a significant step towards modernizing public transport in the Albanian capital. Funded by the European Union, Germany, and the Municipality of Tirana, this project aims at developing, implementing, and operating Tirana’s first electric Bus Rapid Transport system, known as “e-BRT”, on three of the main transport corridors in Tirana: Unaza, Tirana e Re and Kombinat-Kinostudio.

The electric bus rapid transport system is projected to increase the average speed of buses on the selected bus lines, which will significantly improve public transport efficiency. The project is expected to prevent approximately 4,300 tons of CO2 emissions annually, as well as reduce the emissions of particulate matter (PM) and nitrogen oxide by an average of 25.55 tons of NOx and 0.18 tons of PM per year, contributing to cleaner air and climate protection efforts.

The electric Bus Rapid Transport system will be implemented on the 3 following corridors: L15 – East-West line from Kinostudio to Kombinat 17 km considering in both directions; L14- Unaza, circular line city center 3rd ring – 14 km considering both directions; L13 - Tirana e Re, Circular Line; central and western part of the City– 21 km considering both directions.

The WBIF is a joint initiative of the European Commission, the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), bilateral donors, and Western Balkans beneficiaries launched in December 2009 with the purpose to deliver finance and technical assistance for strategic investments. The KfW and the World Bank subsequently joined the platform.

In Albania, KfW implements the German Financial Cooperation and provides grant aid and concessional loans for key investments and project-related consultancy services. The German cooperation with Albania started in 1988. Since then, the German Government has committed more than Euro one billion for development projects and programs.