European Union Provides €136 Million Grant for Reconstruction of Vore-Hani i Hotit Railway Line

An agreement providing €136 million in EU grants for the rehabilitation of the Vore-Hani i Hotit railway line was signed today at Europe House in Tirana by the EU Ambassador Sivio Gonzato, the Minister of Finance Ervin Mete and the Head of EBRD Albania Ekatarina Solovova.

The funds are provided by the EU through the Western Balkans Investment Framework (WBIF) and represent the largest EU grant given to Albania to date. The investment project, worth €373 million in total, is co-financed with loans provided by the European Investment Bank (EIB) (€100 million) and the European Bank for Reconstruction and Development (EBRD) (€99 million), who is the lead financing institution on the project.  

With the signing of the loan agreements having taken place earlier in the year, the signature of the EU grant completes the financial construction of the project and marks the start of the project implementation. The investment will enable Albanian Railways to electrify more than 120 km of tracks and renovate 12 train stations, including new signaling systems and safety improvements. This will allow for both safer and faster travel with operating speeds of up to 100 km/h.

Ambassador Silvio Gonzato, Head of the EU Delegation to Albania, said: “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 within 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.”

This investment is part of the EU’s strategy to extend the EU’s Trans-European Transport Network - TEN-T - to the Western Balkan region. It is Albania’s international railway link to regional and EU railway networks. The new line will improve market access and substantially increase international freight and passenger traffic towards ports, terminals, capitals and airports by rail.

Ervin Mete, Minister of Finance, said: “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 Euros, will create opportunities for other financing in the form of grants or soft loans. The aim is the progress of reforms and the acceleration of 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.”

EBRD, as the lead international financial institution on the project, supports projects boosting regional connectivity and bringing the Western Balkans closer to the EU.  

Ekatarina Solovova, Head of EBRD Albania EBRD, said: “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.”