Albania

Although Albania has sufficient resources of water available, at times some towns only have two hours of drinking water per day. Moreover, there is no orderly disposal of wastewater. In rural areas the situation is even more precarious because water and wastewater infrastructure is frequently disfunctional. The same applies to waste disposal. Less than 40 % is collected and the subsequent disposal is disorganised. On behalf of the German government, KfW is supporting the modernisation of this infrastructure. Germany is currently the largest bilateral donor in this area (lead donor), and coordinates other donors.

On request of the Albanian government, KfW is supporting the country in developing a national master plan in the water and wastewater sector. This plan has led to a priority list specifying the most important investments. Albania thus has a tool, unique to the region, which can assess needs and help make decisions on relevant investments. KfW is investing in 15 medium-sized towns, by means of municipal infrastructure programmes, to modernise the water supply, wastewater and waste disposal. A core element of investments is a performance concept, which offers supply companies the prospect of funding if they fulfil certain minimum requirements.

Project information - Water supply and waste water disposal  (PDF, 172 KB, accessible)

Albania produces way in excess of 90 % of its electricity with hydropower. However, for a number of years, volumes of rainfall have varied enormously, meaning that if rainfall is low, the output of the power plants is not sufficient and electricity has to be imported at high cost. For this reason, Albania aims to expand its power network into its neighbouring countries, in order to have enough capacity for importing electricity or alternatively exporting power when the reservoirs are full. Furthermore, Albania intends to leverage the untapped potential of its hydropower to a greater extent. KfW is committed to this South Eastern European country in order to shape what is still a precarious energy supply in a safe manner. The energy sector with German government commitments of 268 million EUR is, for the development bank, the second pillar of German-Albanian cooperation.

KfW supports the energy sector in several areas. It invests in the expansion of high-voltage networks. In 2011, Albania was connected to the European high-voltage network from Tirana to Podgorica in Montenegro by means of a transmission line. A second connection between Albania and Kosovo is still under construction. Furthermore, Albania, supported by KfW, is able to finance transmission and distribution stations, improve the security of hydropower dams and also improve the energy efficiency of public buildings.