Study on Infrastructure Investments in Albania and the Western Balkans: Perspectives and financing needs

This is a study by ALTAX on infrastructure investments in Albania and the Western Balkans: perspectives and financing needs.

In 2025, Albania and the countries of the Western Balkans will enter a crucial phase of infrastructure investments, which are key to economic development and integration into the European Union. According to the latest data from the ALTAX study, Albania has planned significant investments in infrastructure, allocating a substantial portion of its GDP to this sector, while the European Union has approved a major fund to support regional development.

In total, the European Commission has approved a financial plan of €6 billion for the Western Balkans, from which Albania will benefit €922 million. This fund is primarily oriented towards infrastructure projects such as transport, energy, and digital transition. Alongside Albania, other regional countries, such as Serbia and Bosnia and Herzegovina, have also received significant allocations for essential investments.

Infrastructure investments in Albania include key projects such as:

• Corridor VIII, which connects Albania with North Macedonia and Kosovo.
• Expansion of the Tirana-Durrës Highway, one of the country’s busiest roads.
• Rehabilitation of secondary roads like Tirana-Ndroq-Plepa, aimed at improving economic connectivity.

Compared to other countries in the region, Albania demonstrates a strong commitment to infrastructure investment. However, its financing needs remain substantial, requiring good coordination and optimal use of EU funds to maximize their effectiveness.

The Western Balkans will also be supported by a financing package aimed at addressing their infrastructure needs, with a focus on transport and energy. Some of the countries benefiting from this plan include Serbia (€1.58 billion), Bosnia and Herzegovina (€969 million), Kosovo (€888 million), and North Macedonia (€807 million).

Bosnia and Herzegovina, to realize its essential infrastructure investments and finalize European integration projects, has a financing need of €3.9 billion. This funding will improve road and energy networks and help meet EU requirements for administrative and investment management reforms.

Montenegro, with a financing need of €1.9 billion, also seeks support for the development of its transport and tourism sectors, with the priority of meeting conditions for EU membership.

Infrastructure investments are fundamental to the economic development and European integration of the Western Balkans. Albania, together with other countries in the region, has a valuable opportunity to enhance its infrastructure capacities and advance EU integration by prioritizing projects that connect the region and develop key sectors such as energy and transport.

For the successful implementation of these investments, strong coordination among various institutions—including the European Union and the private sector—is essential, to ensure that all projects are completed within the planned timelines and budgets.

The study conducted by ALTAX contributes to the broader efforts to improve the management of EU funds and ensure sustainable and efficient development across the Western Balkans.