Albania Secures €90.5 Million EU Investment for Railway Modernization

Major infrastructure project to transform Durrës-Rrogozhina rail connection as part of European transport corridor

Albania has secured, in April 2025,  a major financial boost for its railway infrastructure with the signing of a €90.5 million investment package during a high-level visit by EU High Representative Kaja Kallas. The European Investment Bank (EIB Global) and the Albanian government formalized the agreement to reconstruct the critical Durrës-Rrogozhina railway section.

The funding package combines a €60.5 million EU grant channeled through the Western Balkans Investment Framework with a €30 million EIB Global loan. An additional €30 million in co-financing from the European Bank for Reconstruction and Development brings the total project value to €121 million.

The agreement was signed by EIB Global Director Lionel Rapaille and Albanian Infrastructure Minister Belinda Balluku, witnessed by Vice-President Kallas and Prime Minister Edi Rama.

Strategic Transport Link

The investment will modernize 34 kilometers of railway connecting the port of Durrës to Rrogozhina in central Albania. This section forms part of the multi-modal Pan-European Corridor VIII, a vital transport artery linking southern Italian ports through Albania to North Macedonia and Bulgaria.

“This project will create new jobs, enhance trade and improve connectivity by bringing Albania closer to its neighbours and the European Union,” said High Representative Kallas. “It will also serve as a critical route between Member States and NATO for military mobility in Southeast Europe.”

Economic Impact Expected

The modernization is expected to deliver significant economic benefits through improved trade connections and job creation. The project extends the Trans-European Transport Network and represents a key component of the EU’s Economic and Investment Plan for the Western Balkans.

EIB Vice-President Robert de Groot, responsible for Western Balkans operations, described the investment as “a significant Team Europe effort” that will enhance Albania’s socioeconomic development by improving accessibility and facilitating regional trade connections.

Railway Renaissance

Prime Minister Rama positioned the project within Albania’s broader infrastructure transformation. “The signing that took place is part of a massive investment program in railway infrastructure,” he said. “The five-year period that separates us from the end of this decade will be a period where railways return to Albania.”

The investment represents one of several rail projects supported by EIB Global in Albania, including the Vorë to Hani-Hotit railway line and technical support for the second phase of Pan-European Corridor VIII railway development.

The project underscores the strengthening partnership between the EU and Albania as the country advances its EU accession process through strategic infrastructure development.

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June 2025