The World Bank today approved a US$15 million credit for a
Municipal Water and Wastewater Project for Albania. The project will support the Government's efforts to implement institutional and financial reforms in the water supply and sanitation sector by improving water quality and quantity.
Albania has abundant water resources. However, water supply in almost all urban areas is intermittent because of the very poor condition of Albania's water infrastructure. Drinking water lacks adequate treatment and disinfection. Water and sanitation systems have received virtually no maintenance in the last decade, resulting in excessive water losses, water-borne disease epidemics, and a polluted environment. The water sector is currently in difficult shape because in the past the responsibility for water supply and sanitation was assumed by the central government, which did not allow the local government to overcome insufficient management and revenue generation.
The Municipal Water and Wastewater Project will support long-lasting and sound private sector participation in the provision of water supply and sanitation services. A management contract has been awarded to a private operator to manage and operate the water services.
“The project will assist the Government in its approach by implementing a management contract under the decentralization strategy,” said Andreas Rohde, World Bank Task Manager for the Project. “It will introduce in Albania a new incentive-based multi- city management contract approach and, through this new approach, will improve water supply and sanitation services and achieve financial viability in the participating water utilities”.
The project will be implemented in four municipalities--Durres, Fier, Lezhe and Saranda--with the goal of replicating successful experiences across the country in the future.
The Water Project has three components:
(a) The Management Contract component will finance the costs related to the five-year management contract.
(b) The Investment Fund component will finance works, goods and services aimed at improving the operation of water supply and sanitation services and achieving the performance targets in the management contract.
(c) The Technical Assistance component will support project implementation and sector reform:
The project is expected to be implemented over a period of six years. It will bring rapid improvements in the quality of service and efficiency of the system and will increase the sustainability of water supply and sanitation services. The project is expected to finance the rehabilitation of the existing water supply and sanitation infrastructure, as well as expenditures to improve management and operations of water supply/wastewater companies, which should contribute to the improvement in the quality of life of the people in the project areas. The experiences gained from this project are expected to be used in other cities and other utility sectors.
The total cost of the project is US$21.93 million, including the US$15 million Bank credit and US$6.93 million from the Albanian government. The credit will be disbursed on IDA terms with a maturity period of 20 years and a 10-year grace period.
Since Albania joined the World Bank in 1991, commitments total approximately US$673 million for 48 projects.
For more information about the World Bank’s work in Albania:
http://www.worldbank.org.al
and also :
Albania: Municipal Water And Wastewater Project
