Water Sector Performance and Investment Programme (WPIP)
WPIP aims for service improvement in the water supply and sewerage sector for up to 50% of Albania?s urban population. It combines infrastructure investments with comprehensive corporate development support to water utilities, strengthens the water sector framework and implements storm water reduction and integrity management measures.
Urban infrastructure and utilities
- KfW banking group
Also due to SECO support, the Albanian water sector has improved over the last decades and demonstrates today reform momentum. In 2017, the government launched a wide-ranging water reform that produced tangible results in e.g. improving water supply services and formalizing illegal connections. Despite these improvements, the sector still faces considerable challenges: coverage of water supply (78%) and sewerage services (55%) is insufficient and hampers economic development. Unsafe disposal of wastewater negatively affects the development of tourism, agriculture and the fishing sectors. WPIP helps to adress these critical challenges.
The overall objective of WPIP is to contribute to economic, social, environmental, and territorial development, as well as tourism attractiveness. WPIP is the largest investment programme in the water sector in the recent Albanian transition period of 30 years that has systemic impact and provides significant funding for investments. With reference to the preceding programmes (see below), WPIP will further increase comprehensive corporate development support to improve performance, operation and maintenance of up to 10 out of 15 largest utilities. This is complemented with storm water reduction measures and integrity management measures. At national level, it improves the institutional and regulatory framework. Beside the utilities, up to 50% of Albania's urban population and the local economy (approx. 19?100 SMEs) will benefit from improved services. In the municipality of Lezha, around 30?000 people and their assets will benefit from flood risk reduction measures.
Outcome 1: Enhanced sustainability of selected municipal utilities, with improved planning, operation and integrity management and climate resilience through (1) policy dialogue measures- (2) capacity building measures of national key stakeholders- (3) integrity management support to utilities- and (4) storm water reduction measures in Lezha.
Outcome 2: Improved and affordable access of the population to safe drinking water, sewer services and increased centralized treatment of collected waste water: WPIP will provide approx. 100 million EUR for investments applying the proven performance-based approach: With the objective to exhaust the potential for performance improvements before investments, WPIP will set appropriate and mutually agreed performance milestones to the utilities as precondition for the realization of infrastructure investments.
Policy Dialogue: WPIP will identify areas of improvement at sector level that do not have clear solutions under existing laws and regulations and discuss appropriate solutions.
Capacity Building: WPIP will provide technical support to e.g. align sector policy with European standards and provide capacity building to national key institutions.
Corporate Development: WPIP will provide comprehensive support in the areas of operations, finance, and costumer relations to reach sustainable performance and cost recovery of utilities.
Integrity Management: The utilities will implement integrity measures and achieve measurable improvements towards good governance.
Storm water reduction: In Lezha, a flood expert will assist the establishment of an emergency respond scheme and will strengthen key institutions for its implementation.
Investments of approx. 100 million EUR will improve the water supply and waste water system including the construction of up to 3 treatment plants.
Results from previous phase:
SECO builds on the successful collaboration with the Albanian government and KfW of more than 18 years - A partnership that strives continuously for widening and optimizing its intervention. WPIP is the continuation of successful programs of SECO and KFW in the Albanian water sector. The utilities participating in former interventions have become a showcase for stable and continued improvement of their performance, in particular in terms of increased cost coverage and bill collection efficiency. In the case of Lezha, citizens? satisfaction with the services increased by more than 50%, while direct cost coverage has increased from 37% at appraisal to 147% after project completion.
|Budget||Current Phase Swiss Budget CHF 16'675'000 Swiss Disbursement Till Know CHF 0 Budget Inclusive Project Partner CHF 146'050'000|
|Project Phases||Phase 1 01.10.2019 - 31.12.2026 (Current Phase)|