General overview

During the last 20 years Albania has made impressive progress passing from a centralized, backward system to a market-based economy. According to a joint report by INSTAT, UNDP and World Bank on poverty trend in Albania during 2002-2005-2008, the GDP increased by 7.1%, accompanied by a considerable reduction of poverty level in rural areas. However, concerning the highland areas, the level of poverty has not undergone noteworthy changes. The poor population is still concentrated in highland rural regions. Nevertheless, Albania has achieved a sustained economic growth and has undertaken economic reforms which have led to macroeconomic sustainability, governance improvement, investment development in the private sector, provision of public social services. 

The challenge

Albania has inherited from the communist regime a poor infrastructure which has had a negative impact on the transport of goods and people. According to World Bank’s Survey on Poverty Assessment in Albania in 2003, many Albanians, after employment, consider infrastructure problems to be the main cause of their difficulties and a significant factor in their low standard of living as 57% of population lives in rural areas where the conditions of road transport are poor or very poor. These unsatisfactory road conditions represent the biggest hindrance for the transport of people and goods, international investments, the development of tourism, the access to social services, employment opportunities especially for people in rural areas. Albania has a road network of 12,000 km out of which 4,980 km of rural road network with a communal profile and 4,471 km of regional road network. The contribution of this road network in the development of agriculture and the importance in return of agriculture in the GDP for the overall economic development and reduction of poverty, highlights the significance of immediate intervention for the improvement of secondary and local network. 

Approach

Giving due attention to the immediate and efficient improvement of the secondary and local road network, the Albanian Government has drafted "The National Strategy for Development and Integration 2007-2013" and "National Transport Plan”. Moreover, in 2007 the Albanian Government initiated the Project on the Improvement of Secondary and Local Road Network. This project received the support of the World Bank which prepared the Project Appraisal Document. The implementation of such an important project was entrusted to the ADF which is an experienced Agency in the implementation of infrastructure projects. "The Improvement of Secondary and Local Roads" Project, which is co-financed by the World Bank and other donors at an estimated amount of $ 368 million, aims at increasing the concrete efforts for the improvement of infrastructure in the country and for increasing the access to basic services and local markets especially in rural areas via the rehabilitation of secondary and local road network. The Project became effective in September 2008 and is expected to be finalized by the end of 2017. 

Results

In December 2016 works have been completed in all road segments .This is one of the most ambitious programs implemented in the last 25 years in Albania. Since the beginning of SLRP until 31 December 2016, ADF has funded the reconstruction of 144 secondary and local road segments and bridges, with a total length of about 1200 km. 

• Out of a total of 9800 km of secondary and local road network, the first phase of a complete inventory with detailed data for about 4247 km of primary rural road network has been finalized. Meanwhile the second phase of inventory is under implementation.
• Detailed data has been collected for all road sections about population, road traffic, road condition (roughness), the access provided and poverty rates in the region.
• In addition to the inventory, ADF has already at its disposal the prioritized list of road sections.
• The technical designs and bidding documents have been prepared for a total of 1200 km of road sections.
• Civil works have been financed for the reconstruction of 144 secondary and local road sections and bridges nationwide at a total of 1200km (See the link "Reconstruction of Roads financed by ADF from 2005-2013" ) “Rrugët e financuara nga FSHZH 2005 – 2013” ).
• 23 specialists from the Department of Infrastructure at ADF who are in charge of following civil works contracts in the framework of Secondary and Local Roads Project have been trained by FIDIC.
• About 1000 people representatives of administrative units are trained on road functioning and maintenance. ADF has included a soft for calculating the maintenance budget of the secondary and local road network for all actors
• The performance rating by the Implementation and Completion Report on the World Bank and OFID I financing for SLRP is "Highly Satisfactory"
• As of now, the sub projects financed by the World Bank, OFID, CEB, IDB, KfW, EBRD, EIB,EU, IPA have been successfully implemented.

Some Indicators on the immediate benefits resulting from the implementation of SLRP 

• Increasing access to basic services(healthcare, schools);
• Increasing access to local and regional markets;
• Increasing access to tourist sites
• About 1 million inhabitants of 153 Local Government Units in the 12 Counties of Albania are the direct beneficiaries of the SLRP
• Improvement of economic development in areas with a high population density and large-scale agricultural and livestock production
• Accessibility to various regions of the country via regional roads
• Reduction in travel time by 60% compared to the period before investment
• Increase in traffic volume by 21% in the reconstructed road segments
• Reduction in public transport cost by 8.5%
• Reduction in vehicle maintenance and servicing cost for 90% of the roads users

Towards Future

As of now, the SLRP has been financed to the amount of 368 million USD by the Albanian Government, World Bank, OFID, Council of Europe Development Bank, Norway Trust Account, United Nations, European Bank for Reconstruction and Development, European Investment Bank, Islamic Development Bank, KfW and WBIF.

It is foreseen that the Program will continue with other financing and in this context the Albanian Government is negotiating with development banks and international financial institutions.

These investments will enable the improvement of living conditions for the inhabitants in the hinterland of project roads by reducing travel time towards local markets and educational and healthcare centers. The novelty of the Secondary and Local Roads Program lies in ensuring sustainable maintenance and functioning of the reconstructed roads by contracting maintenance road service in the private sector.

(Përditësimi i fundit)