Evaluation of a series of policy-based loans to support the energy sector reform in Albania

The high-level objectives of the PBL were to enable the GoA, through targeted support, to fulfill its international commitments related to energy sector reform, and to assist the GoA in establishing a market-oriented environment in the Albanian energy sector that ensures optimal value for Albanian society, based on international best practices. The specific objectives of the programme were to:
‐ Improve the financial situation and long-term sustainability of public energy utilities;
‐ Establish an electricity market and implement a gradual process of tariff deregulation enhancing transparency in the sector;
‐ Diversify the electricity mix and promote the development of renewable energy;
‐ Strengthen the legal and regulatory framework of the sector.

There was clear alignment between the GoA and AFD (alongside its partner KfW) regarding the importance of reforming the Albanian electricity sector. The intervention by AFD and KfW through a series of PBLs also proved to be a relevant and effective choice.