German development bank KfW strengthens its support for the Balkans with a largescale investment in Albania's water infrastructure
2025-12-093 min.
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German development bank KfW has announced a new 50 million euro package aimed at modernizing water supply and sewage systems in several municipalities in Albania, BalkanEngineer.com has learned from an official statement by the institution. The funds are part of the second phase of the Water Sector Performance and Investment Programme (WPIP II) – a large-scale initiative jointly financed by Germany, the European Union and Switzerland.

The new funding is intended for the reconstruction of existing water pipelines, the replacement of depreciated networks and, most importantly, the expansion of wastewater treatment plants, including the construction of new facilities in regions with insufficient capacity. According to KfW's statement, the project aims to improve the sustainability of the sector and reduce network losses, as well as to improve the quality of services for the local population.
According to the program, the modernization will increase the efficiency of wastewater management and support Albania's efforts to adapt to European environmental standards. The investment is expected to reduce the burden on old sewage systems, which in recent years have often been subject to accidents and unregulated discharges.
Representatives of the German bank emphasize that the investment is strategic, as it opens up opportunities for the future application of innovative technologies in the sector, including systems for energy recovery from wastewater and the integration of biogas solutions. Local authorities, for their part, describe the project as "particularly important for the modernization of infrastructure in regions that have been in need of serious improvements for years."
The WPIP II program is expected to cover more municipalities in the next stages, and KfW has already stated its readiness to continue supporting the country in the water sector through additional funding and technical expertise.

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