Albania secures EBRD and EIB funding for Vorë-Hani i Hotit railway reconstruction

The Albanian government recently approved a crucial agreement with the European Bank for Reconstruction and Development (EBRD) to reconstruct the Vorë-Hani i Hotit railway line. The project, which involves a substantial grant of 136 million euros, is part of a larger strategic effort supported by the European Union to integrate the Western Balkans into the broader European transport network. Alongside the EBRD, the European Investment Bank has also been a key partner, contributing to this project, which is expected to have a total cost of 356 million euros. The reconstruction of this line will bring significant improvements to Albania’s transport infrastructure and is projected to be completed by 2030.

Why does it matter: The Vorë-Hani i Hotit railway holds strategic importance for Albania’s role in the regional and European transport networks. The line passes through several important urban centers, including Vorë, Shkodër, and Koplik, connecting key industrial and population hubs across the country. Moreover, this railway serves as a critical link between Albania and Montenegro, facilitating cross-border trade and boosting Albania’s integration into European markets. By linking Albania more closely with its neighbors, the project will help reduce transportation costs and enhance trade flows, making the country more competitive and attractive for foreign direct investment. Additionally, the railway is expected to stimulate tourism by providing faster, more reliable travel options for international visitors, particularly those traveling between the Adriatic coast and northern Albania. This improved connectivity can help diversify Albania’s economy, generating new revenue streams and opportunities for local businesses in the regions served by the railway.

The project will involve the electrification of over 120 kilometers of railway track, a major step in modernizing Albania’s transport infrastructure. This upgrade, financed through a 136 million euro grant from the European Bank for Reconstruction and Development (EBRD) and additional support from the European Investment Bank (EIB), will significantly enhance both passenger and freight transport. Modernizing 12 stations along the route, with advanced safety and signaling systems, will ensure that trains operate more efficiently and securely, reaching speeds of up to 100 km/h. This will dramatically reduce travel times, offering a faster and more reliable alternative to the road-dominated transport system in Albania. In particular, the railway’s electrification is expected to reduce the environmental impact of transport, offering a greener alternative to road travel, which currently dominates in Albania.

This railway will connect several major cities, including Vorë, Shkodër, and Koplik, and will link Albania with Montenegro, further strengthening its role as a transport hub in the Western Balkans. This increased connectivity will enhance trade between Albania and its regional neighbors, making the movement of goods more efficient and reducing transportation costs for businesses. By improving infrastructure and promoting greener transport, the Vorë-Hani i Hotit railway project is set to be a cornerstone in Albania’s efforts to modernize its economy and integrate more fully with the European Union.