Albania’s parliament voted to ratify an €80mn loan agreement between the Albanian state and German development agency KfW at a session on February 22. The draft law was approved with 95 votes in favour, six against and seven abstentions.

The loan will be used to finance Albania’s Municipal Infrastructure Programme V for 2021-27, to improve the water supply and sewerage system, collection, disposal and water treatment in some municipalities in the country. 

"The purpose of the programme is to contribute to the improvement of the water supply and sewerage system, as well as the improvement of the performance of the water supply and sewerage companies of the municipalities included in the programme,” said Minister of Finance and Economy Anila Denaj.

“Through the funding provided under the programme, it aims to improve the situation of drinking water supply, collection but also drainage and treatment of water in the municipalities involved.”

The municipalities – Berat, Elbasan, Fier, Kamza, Kucova, Lezha, Shkodra and Vlora – have been selected based on the priorities of the National Master Plan for Water Supply and Sewerage. 

KfW also supported Albania's previous municipal infrastructure programmes. 

"The German government continues to support and remain the main investor at the bilateral level in Albania. The German government has invested €1.1bn in the last 30 years and is in the first place among direct investment financiers in Albania,” said the chairman of the Socialist parliamentary group, Taulant Balla, to MPs, according to a statement from the parliament.