In the presence of Ambassador Peter Zingraf, the Minister for Finance and Economics, Anila Denaj, and the Director of the German Development Bank (KfW), Bjorn Thies, signed a Euro 100 million loan for the implementation of the energy sector reform in Albania.

In this way, Germany is supporting an important reform package that contributes to a liberalized, transparent and fair energy market in Albania.

“We are delighted that Albania has taken important steps in energy sector reform. This will also have positive effects for other branches of the economy as well as the citizens,” Ambassador Zingraf emphasized.

The energy sector remains one of the key priorities in the structural reforms pursued for the economy, Minister Denaj said, adding that the strategic plan contains a series of measures aimed at creating a market organized according to the model of the European Union.

“The government has pledged to continue the work for several years now, a work which has some concrete results, making the full operation of the Energy Exchange or otherwise known as APEX and the gradual opening of the retail market, along with the creation of a competitive energy market,” Denaj noted.

The Minister also assessed that the energy sector will be a strategic priority in the third term of government as the continuation of the reform launched with the support of international partners.

Furthermore, Ambassador Zingraf assessed that the reforms undertaken by the Albanian government are impressive. He also said that through this agreement the German government supports the reform of the transformation of the energy market in Albania, which is an important step on the country's path to the EU, as it aims to create a transparent market that will boost economic growth and facilitate private sector investment in the energy market.

The director of the KfW also considered the agreement an important moment for the cooperation between Albania and KfW.

Energy is an important sector within this cooperation, he said, adding that the signing of the agreement opens a new chapter of joint cooperation.

The soft loan has a maturity of 12 years, including a period of 3 years without principal payment.

To data, the value committed by KfW to finance projects through loans in Albania amounts to Euro 678.59 million, with the largest share of investments in the energy sector with 45.44%, in the water supply and sewerage sector with 41.37% and in other sectors with 13.19% .

Out of 48 signed loans, 39 are state loans and 9 are loans guaranteed by the Albanian government, 36 loans are fully disbursed, 11 are in the process of disbursement and 1 has not become effective. 2 loans have been repaid in full, while the others continue to be repaid in accordance with the relevant agreements. Currently, KfW finances 11 projects through 12 loans, 2 of which are guaranteed.