The Parliament discussed and approved on Thursday a loan agreement with the German bank KfW for the financing of the "Green Transport of Tirana" project.

During the presentation of the agreement, the Minister of Finance, Ervin Mete said that the value of the loan amounts to Euro 50 million, with soft terms from the German government through development bank KfW, and is accompanied by a grant of Euro 31 million from the investment framework for the Western Balkans WBIF.

Through this project, he pointed out, that the construction of the “e-BRT” Bus Rapid Transport system is possible in three of the main public transport corridors in the city of Tirana.

"The intervention is foreseen in three of the main lines in Tirana where electric buses with dedicated lanes will be installed, making transport faster and more environmentally friendly. KfW will also assist in the implementation of the project, which is expected to be completed by 2029. The support of our partners in cooperation for the realization of this project is to be appreciated," he declared.

According to Mete, the loan is provided in the annual borrowing plan for the year 2024 and is interest-free for 4 years. 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 (Ring), 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 in both directions; L14 - Unaza, circular line city center 3rd ring - 14 km in 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 EBRD, the European Investment Bank, 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.