Albania World Bank offers assistance for expanding support to economic reforms, stability, growth and respond to crisis impact

World Bank.TIRANA,January 6, 2012- Global growth slowed down in 2011 and economic outlook for Europe has deteriorated considerably following the deepening euro area crisis.  The Western Balkans region is very sensitive to overall economic growth in the European Union, its largest trade partner. It is further vulnerable to changes in monetary and financial conditions in European countries whose banks are the dominant asset holders in Western Balkan countries. Remittances flows into Albania and Bosnia and Herzegovina are equivalent to about 10 percent of GDP and these flows have been already affected by a slowdown in euro-zone economic growth.

In this environment of growing external risks and economic uncertainties, the World Bank has increased the availability of its financing to several countries of Central and Eastern Europe, Western Balkans,  the Caucuses, and Turkey.  This means that the World Bank can now offer a higher financing support for these countries in the two coming years (2012 and 2013) than the envelope foreseen in the current Country Partnership Strategies.

The main objective of the increased lending envelope for Western Balkan countries, including Albania,  is to help them prepare for and effectively respond to external shocks, while at the same time preserving focus on structural reforms and social safety nets which are essential for maintaining sustainable growth. In the context of Albania, the World Bank is already engaged with the Government in preparing the development policy loan on governance and competitiveness, which can use additional financial resources to strengthen the program of economic reforms.  The Government of Albania will be also able to use additional World Bank assistance to reduce fiscal vulnerabilities and help safeguard economic and financial stability for continued growth and job creation.

Currently, the World Bank and the Government of Albania are at a preliminary stage of discussions about the use of an increased financing envelope. A group of World Bank experts will visit Albania next week to discuss and identify with government partners specific areas for expanding support to economic reforms, preparedness for external shocks, stability and growth.

Available in: Albanian

For more information about Projects in Albania see SOUTHERN EUROPE Projects x

Albania.Integrated Coastal Zone Management

The Project Development Objective is to assist the Government of Albania in developing, on a sustainable basis, tourism in the Southern Albanian Coast by improving critical public environmental infrastructure and municipal services, remediating and containing pollution hazards from a former chemical plant in Porto Romano near Durres, improving community infrastructure and enhancing architectural and cultural resources.

World Bank.Author:Damianova,Adriana Jordanova.Document Date: 2011/12/05.Document Type: Implementation Status and Results Report.Report Number:  ISR4789

Albania - Integrated Coastal Zone Management : P086807 - Implementation Status Results Report : Sequence 12

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Albania.Additional Financing for the Energy Community of South East Europe APL Program

The development objectives of Energy Community of South East Europe Adaptable Program Loan (APL) Program - Fifth APL for Albania Dam Safety Project are to:  a) contribute to safeguarding the major hydroelectric plants on the Drin and Mat river cascades in Albania; and b) improve their operational efficiency and enhance the stability of power supply for the regional electricity market. The additional loan will help finance the costs associated with an expected cost overrun for the investments planned under the original project.

The additional loan will support the completion of two major sub-components of the Original project: (i) rehabilitation of the spillways in the three dams of the Drin River Cascade (Fierza, Komani and Vau Deja hydro power plants (HPPs); and (ii) rehabilitation of the Komani HPP through refurbishment of electro-mechanical equipment and replacement of existing control, protection and monitoring systems. The restructuring includes: (1) the cancelation of a subcomponent under the original credit (load frequency control); (2) extension of the due dates for three covenants, dam safety institutional and emergency preparedness plans as well as effectiveness of European Bank for Reconstruction and Development (EBRD) co-financing agreement; and (3) extension of the closing date of the original project to December 30, 2016. The expected outcomes from the activities supported by the proposed additional financing will be (i) the safeguarding of the major hydroelectric plants in Albania; and (ii) improved operational efficiency and stability of power supply of the regional electricity market.

World Bank. Document Date:  2011/11/17.Document Type: Project Paper.Report Number:64994.Volume No: 1 of 1

Albania-Additional Financing for the Energy Community of South East Europe APL Program - Fifth APL for Albania Dam Safety Project:restructuring,

Albania. Education Excellence and Equity Project

The proposed EEE-P will support Government in the implementation of the first phase of Albania's National Education Strategy (NES). The objective of EEE-P is
improved quality of learning conditions for all students and increased enrollment in general secondary education, especially for the poor.

World Bank. Author:Guedes,Andrea C.Document Date:2011/11/23. Document Type: Implementation Status and Results Report. Report Number:ISR5039

Albania - Education Excellence and Equity Project : P078933 - Implementation Status Results Report : Sequence 14

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