Albania and Germany have signed three major financing agreements worth a total of €114 million to support strategic investments in the country’s energy and infrastructure sectors.
The agreements were signed by Albania’s Minister of Infrastructure and Energy, Enea Karakaçi, and the German Ambassador to Albania, Karl Bergner. The financing package includes €90 million in loans and €24 million in grants, aimed at modernizing Albania’s energy system and improving public infrastructure.
Speaking at the signing ceremony, Minister Karakaçi described the agreements as a significant step toward strengthening the country’s long-term development.
“Today we signed three important agreements with the German government, comprising €90 million in loans and €24 million in grants. These investments will support strategic projects in the energy and infrastructure sectors, with a direct impact on Albania’s development,” Karakaçi said.
The first agreement focuses on increasing the efficiency of Albania’s electricity transmission system through full digitalization. The project will enable the automation of grid operations and improve the interconnection of substations, enhancing both the reliability and performance of the national electricity network.
The second agreement will finance the continued rehabilitation of the Vau i Dejës Hydropower Plant, one of Albania’s most important electricity generation facilities. The investment is expected to extend the plant’s operational lifespan while improving its efficiency and production capacity.
The third agreement provides €24 million in grant funding through the German development bank KfW to renovate student dormitories in Tirana’s Student City. The project will improve the buildings’ energy efficiency, reduce energy consumption, and provide better living and learning conditions for students.
The new financing package underscores the continued partnership between Albania and Germany in advancing sustainable energy, modern infrastructure, and long-term economic development.
