Municipal Infrastructure Programme III

active

The FC module objective of the Municipal Infrastructure III program is to ensure a reliable and hygienically safe drinking water supply for the population in selected program cities in Albania at cost-covering and socially acceptable prices, as well as to guarantee acceptable settlement hygiene through proper wastewater disposal - with increased performance/cost coverage of the utility companies. The Municipal Infrastructure III program builds on the established structures and implementation approach of the predecessor programs Municipal Infrastructure I-II (Kom I-II) and includes elements of conceptual further development. At the request of the Albanian government, the financing and promotion of the investment measures of programs III and IV are based on the prioritization of the national master plan in the water and wastewater sector. Program III is aimed at the water and wastewater disposal companies at the project locations UK Berat-Kucova and UK Librazhd as project executors (Project-Executing Agency, PEA) and at the Ministry of Energy and Infrastructure as program executor (Program Coordination Unit, PCU). A new location, Librazhd, is being added that was not part of Kom I and II. The core element of the program concept for Municipal Infrastructure I - II is an incentive mechanism to cover the costs of the utility companies by linking performance improvements and investment measures (so-called performance-based approach). The program is implemented after the individual cost coverage targets have been achieved at the individual locations (milestone concept). Kom III is being implemented in a 2-phase model. As part of a program preparation phase (phase 1), the project locations are supported by international consultants in preparing technical feasibility studies and improving their organization and performance. In the implementation phase (phase 2), the investments are implemented with consultant support. Investment Program III is being financed by a FZ development loan (ZV) of EUR 15 million and by grants of around EUR 4 million from the Swiss SECO. SECO has given the German FZ a mandate for implementation. SECO will thus provide a total of EUR 11.0 million in grants for Com III and Com IV. The project is also closely linked to the accompanying measure of the Municipal Infrastructure IV programme, which supports selected utility companies in improving their economic performance.