111 million euros for transport and energy in Albania - EBRD, record financing in 2025. Transition Report presented, demographic challenge
The European Bank for Reconstruction and Development (EBRD) has provided a record financing of 217 million euros to Albania during 2025, mainly for projects in the transport and energy sectors.
During the presentation of the Transition Report, EBRD Country Director for Albania, Ekaterina Solovova, listed some of the main investments made during the past year.
“2025 was an exceptionally active year for the EBRD in Albania. We provided €217 million in financing for 31 projects, a record level of our commitment. Of the total, €111 million was provided for sustainable infrastructure projects in the transport and energy sectors, including €30 million for the rehabilitation of the Corridor 8 railway, phase one Durrës-Rrogozhina, co-financed with the European Investment Bank and complemented by €60 million in grants. In the energy sector, we provided €45.75 million for OSHEE, restructuring short-term debt and supporting grid modernization and green investments, as well as €30 million for KESH for the development of a 50-megawatt photovoltaic solar power plant ,” said Solovova.
Meanwhile, the Governor of the Bank of Albania highlighted some of the Bank's findings on the impact of demographic challenges on the economy, findings that resonate with those of the EBRD in the Transition Report. According to studies, demographic challenges will put pressure on interest rates and inflation.
“The negative demographic trends in Albania are expected to be persistent. Our research shows that these trends are likely to exert downward pressure on real interest rates. This environment limits the effectiveness of conventional monetary policy, as low interest rates leave central banks less room to stimulate the economy. At the same time, demographic changes may also complicate inflation dynamics. Our research shows that the increase in the labor market participation rate comes as a result of higher wages ,” said Gent Sejko.
In all developing countries in Europe, aging populations and shrinking labor forces are weighing on economic growth. According to him, the policy response requires coordinated action and political will. They should address reforming pension systems, modernizing labor markets, designing realistic migration policies, and investing in ensuring healthy aging of the population.
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