The World Bank Financing to Albania 2010

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ON-GOING PROJECTS TRANSPORT PROJECT Status Borrower Project Coordinator

Under implementation Albania Ministry of Public Works, Transport and Telecommunications

Project Cost Credit Amount Co-financing

US$55.8 million US$ 27.05million (US$ 5.41 million IDA, US$ 21.64 million IBRD) US$ 15 million (OPEC), US$ 15.8 (Government of Albania)

Date of signing Effective Closing date

March 21, 2007 August 22, 2007 June 30, 2011

Project Objectives The Project Development Objective is to (i) reduce user costs on the Milot-Rreshen section of the Durres – Milot - Morine Corridor and improve access for the hinterland population, (ii) introduce innovation in road maintenance on a pilot basis, and (iii) contribute to the development of the institutional framework and implementation of road safety activities throughout Albania.

Project Description The Project would achieve this objective through the following components: (i) the construction of 26 km section of the Milot - Rreshen road, contributing to a reduction in journey time for road users and improvement of access to one of the poorest parts of Albania; (ii) the introduction of innovation in road maintenance on a pilot basis through testing the output and performance-based road maintenance contracts (OPBRM) in two pilot regions of Kukes and Tirana; (iii) institutional development and support to improving road safety in Albania.

Project Achievements The works are complete on Lots 1 and 2 of the Milot – Rreshen Road, with Lot 3 scheduled to be completed by May 31 2010. As of January 31, 2010, the project has disbursed ninety-two (92) percent of the IDA credit/ IBRD Loan. The OPBRM contracts (two in Tirana region and two in Kukes region) were awarded in October and November 2009, starting from the 2009/2010 winter season. The contracts will run for three years, and will involve winter maintenance, the initial rehabilitation of some deteriorated sections, and routine maintenance, covering some 300 km of the national road network, or approximately ten percent of the entire national road network. The Road Safety consultant has now finalized a number of Completion Reports – Road Accident Costs calculation, revision of the Albanian Rode Code, Driver Training and Education, Strengthening of the Road Safety Management capacities, Upgrade the Road Crash database and access to licensing/vehicle database, and review of the provisions of Emergency Services for the Ministry of Health. In addition, the consultant finalized the Road Safety Inspections in Tirana - Durres highway and Milot - Rreshen road.

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