The Albanian government has submitted to the Parliament the draft law for the

ratification of the loan agreement with the European Bank for Reconstruction and Development (EBRD) in the amount of Euro 98.75 million for the construction of the Vora-Hani i Hotit railway. Works on the railway are expected to start this year. According to the draft law, the works for the rehabilitation of this railway are expected to last until 2030.

The project consists of the improvement of the railway line Vora - Hani i Hotit (border with Montenegro), increasing the speed of train movement up to 120 km/h on an electrified railway line, according to the category UIC D4, 22.5 tons/axle and 8.0 tons/m, of about 120 km. 

According to the draft law, the project envisages the construction of 12 railway stations, the construction of a 320-meter-long tunnel, the construction of 12 bridges, etc. 

With the construction of this railway line, a flow of 2,300,000 passengers per year and a freight volume of 900,000 tons per year are expected. The average travel time in this segment is expected to be 2 hours, according to the report attached to the law.

The total cost of this project is estimated at Euro 373 million, part of which will be covered by the state budget, the rest by the EBRD, the EU through the Western Balkans Investment Framework, and the European Investment Bank.

According to the report attached to the law, the project will contribute to the significant increase in the rail movement of goods and passengers entering and leaving Albania through the expansion of the main TEN-T network, arriving at the Port of Durrës or leaving Albania towards other countries of the Western Balkan region. 

As part of the interconnection agenda, the project aims to connect Albania by rail with Montenegro via Tuz/Podgorica, which further aims to develop with the establishment of an international rail link between the region’s main capitals.

For the effective implementation of the project, Albanian Railways has established a project implementation unit (NJZP - PIU), which has been incorporated into the approved organizational structure of the company, according to the decision of the Supervisory Council. 

The project implementation unit is responsible for all railway development projects. 

The loan details are specified in the report. "The amount of the loan will be Euro 98,750,000, which is divided into two tranches: a committed one of Euro 84,500,000, as well as an uncommitted tranche of Euro 14,250,000, which will be committed after meeting several conditions provided in the agreement. The duration of the loan payment will be 17 years, including the period of 5 years without principal payment.”