Albanian Railways

repaying

Provision of a sovereign loan of up to EUR 36.87 million to the Republic of Albania for the benefit of Albanian Railways ("HSH", the "Client" or the "Company") to finance: i) the rehabilitation and upgrade of approximately 34.7 km railway line between the Tirana Public Transport Terminal ("PTT") and the city of Durres; and ii) the construction of an approximately 7.4 km railway branch line to the Tirana International Airport ("TIA") (together "the Project"). An increase by up to EUR 40.7 million of the existing sovereign loan of EUR 36.87 million in favour of the Republic of Albania was provided to finance: i) the construction of approximately eight stations and stops along the Tirana-Durres railway line and along the new rail connection to TIA; ii) cost increases resulting from price adjustments and design improvements; and iii) additional works supervision services. An additional loan increase by up to EUR 11.62 million will be provided to co-finance the electrification of the railway lines financed under the Project, namely, the Tirana PTT - Durres railway line, and the new rail link to TIA. The Project is co-financed by the European Union ("EU") through the Western Balkans Investment Framework ("WBIF") which has provided investment grants in the amount of up to EUR 32.94 million and technical assistance grants in the amount of up to EUR 2.5 million. Additional WBIF grants are expected to be provided to co-finance the Project's electrification component.