Strategy
Number of projects | 7 |
Lending | US$456 million |
IBRD | 6 Loans (US$380 million) |
IDA | 0 |
Grants | 3 (US$2.4 million) |
The World Bank Group program in Albania is guided by the Country Partnership Framework (CPF), which provides analysis, advice, and financing in support of equitable growth in Albania and integration into the European Union (EU).
Due to the pandemic crisis, as well as general elections in 2021, the CPF for FY15-20 was extended for two more years. The strategy focuses on three main areas: restoring macroeconomic balances; creating conditions for accelerated private sector growth; and strengthening public sector management and service delivery.
More than 85 percent of the program has been delivered to date. The ongoing portfolio is supporting the Government’s main priorities including addressing the needs emerging from the 2019 earthquake, as well as COVID-19.
A new Country Partnership Framework for FY23-27 is expected to be approved by the Board. The World Bank Group will build on its productive partnership with Albania through an ambitious program supporting rapid recovery and transformation towards a more robust, equitable, resilient, and greener economy, and healthier and more productive lives for the Albanian people.
A very solid pipeline of projects is being prepared to respond to the Government’s requests, including projects in the area of digitalization, environment, transport, and agriculture.
Key Engagement
Irrigated agriculture continues to play an important role in the Albanian economy. A recent World Bank publication titled, “The Future of Water in Agriculture in Albania: A Broad Sector Rethink,” offers an analysis of the water sector in agriculture, suggesting interventions to make the sector more efficient.
Albania is endowed with ample water resources. The total irrigated area in Albania is roughly 79.2 percent of the land under cultivation. Currently, 1 billion cubic meters of water is needed per irrigation season to irrigate 360,000 hectares. Due to climate change, the demand for irrigation water is expected to be 1.5 billion cubic meters of water storage per season. Irrigation and drainage infrastructure are uniquely vulnerable to various climate change–induced hazards, such as floods, droughts, and seawater intrusion. Moreover, floods, droughts, and heat waves are expected to be the greatest risk to crop yields.
The sector is constrained by a host of challenges, including a backlog of infrastructure rehabilitation and modernization needs, poor marketing, weak organization of farmers, lack of access to credit, low development of agro-food processing, and so on. There is a need to modernize the country’s heavily degraded irrigation and drainage infrastructure. It is equally important for Albania to break the vicious cycle of a “rehabilitate-neglect-rehabilitate” syndrome by ensuring regular maintenance of infrastructure and enhancing agricultural competitiveness.
To improve climate resilience and ensure the revival of the rural economy, the report proposes five interventions areas: (i) modernizing irrigation and drainage infrastructure, (ii) enhancing resilience to flood risks, (iii) supporting agricultural value chains and private irrigation, (iv) investing in institutions, information, and knowledge, and (v) introducing green and environmentally sound farming and irrigation practices.
Number of Active Projects | 9 |
Lending | US$544 million |
IBRD | 9 loans (US$509 million) |
IDA lending | US$35 million |
Grants | 8 ($17 million) |
Number of Active Projects | 9 |
Lending | US$544 million |
IBRD | 9 loans (US$509 million) |
IDA lending | US$35 million |
Grants | 8 ($17 million) |
Number of Active Projects | 9 |
Lending | US$544 million |
IBRD | 9 loans (US$509 million) |
IDA lending | US$35 million |
Grants | 8 ($17 million) |
Last Updated: Oct 12, 2022