The agreement was signed at Europe House in Tirana by EU Ambassador Silvio Gonzato, Albania’s Minister of Finance Ervin Mete, and Ekatarina Solovova, Head of EBRD Albania.
Funded through the Western Balkans Investment Framework (WBIF), this grant represents the largest EU financial support to Albania to date. The total investment project, worth €373 million, is co-financed by loans from the European Investment Bank (EIB) (€100 million) and the European Bank for Reconstruction and Development (EBRD) (€99 million), the lead financing institution for the project.
With loan agreements signed earlier this year, the EU grant finalises the project’s financial structure and marks the start of implementation. The investment will electrify over 120 km of railway tracks and renovate 12 train stations, incorporating new signalling systems and safety improvements. These upgrades will enhance travel safety and speed, enabling trains to operate at up to 100 km/h.
This investment is part of the EU’s strategy to extend the Trans-European Transport Network (TEN-T) to the Western Balkans. It aims to integrate Albania into regional and EU railway networks, enhancing market access and significantly increasing international freight and passenger traffic towards ports, terminals, capitals, and airports
Ambassador Silvio Gonzato, Head of the EU Delegation to Albania, stated: “Connecting people is at the very core of the European idea. The EU’s largest investment in Albania to date will re-connect Albanian people with the rest of the region and Europe by train. The renovated rail line will boost domestic travel, international tourism, and support Albania’s overall socio-economic development. It will reduce the environmental impact of freight and passenger transport, thanks to the electrification of the new line. The project is supporting Albania’s green transition, making rail a more efficient and climate-friendly mode of transport.”
Albania’s Minister of Finance, Ervin Mete, commented: “This is the largest EU grant to Albania for investment projects. The New Growth Plan for the Western Balkan countries, from which Albania is expected to benefit over €900 million, will create opportunities for further financing in the form of grants or soft loans. The aim is to progress reforms and accelerate investments. We will make every effort to successfully implement this new joint commitment within the ambitious deadlines. The excellent cooperation to date makes us optimistic that this new opportunity will become a reality, as is the project we are signing today.”
Ekatarina Solovova, Head of EBRD Albania, added: “We’re proud to partner with the European Union to enhance the rail network in Albania. This project is a testament to our shared commitment to foster stronger regional ties in the Western Balkans and bringing it closer to the EU. By investing in green infrastructure, we are paving the way for economic growth and a more sustainable future.”
This strategic investment underscores the EU’s commitment to fostering connectivity and sustainable development in the Western Balkans, facilitating Albania’s integration into broader European transport networks.
