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Albania’s Water Infrastructure Investments Surpass €150 Million in 2025

Investments in Albania’s water supply and sewerage sector reached a significant milestone in 2025, exceeding 15.6 billion ALL (approximately €156 million). This surge in funding reflects the government’s intensified efforts to modernize aging infrastructure and meet European Union environmental standards.

According to official data from the Ministry of Infrastructure and Energy, the 2025 budget execution for the Water Supply and Sewerage (WSS) sector underscores a strategic priority to ensure 24-hour water availability and drastically reduce technical and administrative losses.

Strategic Objectives and Financial Allocation

The total investment of 15.6 billion ALL was channeled through several key pillars. The primary focus remains the rehabilitation of distribution networks in major urban centers and the expansion of wastewater treatment capabilitiesa critical requirement for the country’s tourism-driven economy and its EU integration path.

Government officials noted that these investments are part of a broader master plan aimed at making the sector financially self-sufficient. Historically, the Albanian water sector has struggled with high levels of “Non-Revenue Water” (NRW)—water that is produced but “lost” before it reaches the customer through leaks or unauthorized consumption.

Institutional Reform and Aggregation

The 2025 investment peak coincides with the ongoing sector reform, which involves the “aggregation” or merging of municipal water utilities into larger regional entities. This consolidation is designed to improve management efficiency, optimize human resources, and create economies of scale that allow for better maintenance and service delivery.

By centralizing operations, the government aims to reduce the heavy reliance on state subsidies, directing more funds toward capital investments rather than covering the operational deficits of smaller, inefficient utilities.

International Support and Key Projects

A substantial portion of the €150 million investment portfolio is supported by international development partners. High-impact projects are currently being co-financed by:

  • KfW (German Development Bank): Focusing on the modernization of networks in coastal and northern regions.

  • The World Bank: Supporting the National Water Supply and Sanitation Sector Modernization Program.

  • The European Union (IPA Funds): Specifically targeting wastewater treatment plants to protect Albania’s coastline and rivers.

Key projects highlighted in the 2025 report include the ongoing overhaul of the Tirana water network, which seeks to secure a continuous supply for the capital’s growing population, and critical interventions in the Durrës and Vlora regions to support the booming hospitality sector.

Looking Ahead

While the €150 million figure represents a record high, experts suggest that sustained investment will be required over the next decade to fully modernize the national grid. The Ministry of Infrastructure and Energy emphasized that the focus for the remainder of the year will be on monitoring the performance of the newly aggregated regional utilities to ensure that the capital infusion translates into tangible improvements for Albanian citizens and businesses.

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Two small hydropower turbines to be integrated into Sofia water supply lines

Veolia received a green light from Bulgaria’s capital city to install two hydropower generators within the city’s major water supply lines. The system is envisaged to generate 12 GWh of electricity per year.

Mostly owned by local authorities and underfunded, water and sewerage utilities in Southeastern Europe are struggling to provide enough drinking water and even to remain financially stable. They are under pressure from the effects of global warming and volatile electricity costs. After a water supply firm in Bansko in southwestern Bulgaria installed a miniature in-pipe hydropower generator, the solution sparked interest throughout the country.

Sofiyska voda, Veolia’s subsidiary that produces drinking water and manages wastewater for the capital city, is about to deploy the technology. In-pipe hydropower systems could play a part in decarbonization and energy efficiency as they are simple and don’t harm the environment. Such devices utilize the flowing water’s kinetic and potential energy and excess pressure – otherwise it would be released in the form of heat through a valve and wasted.

Making Sofia sustainable, energy-efficient, modern European city

Sofia Mayor Vasil Terziev and Country Director of Veolia for Bulgaria, Greece and Albania Francois Debergh signed a memorandum of cooperation for the construction of two small hydropower plants along the city’s trunk water mains.

Earlier, the Sofia Municipal Council approved the findings of a joint working group that explored the possibilities for the investment.

“Our goal is to work consistently for making Sofia a sustainable, energy-efficient and modern European city. One of the key priorities in our vision for development is the use of renewable energy sources. Therefore, among the important fields in which we are working is the construction of small hydropower plants that will allow our city to generate clean electricity locally – with care for nature,” said Mayor Vasil Terziev.

Sofia has been planning in-pipe hydroelectric systems for more than two decades

Such facilities will help reduce the carbon footprint of the capital city and improve the management of water resources, according to the company and the Sofia Municipality, also known as Stolichna (capital) Municipality. They added that renewable energy investments are contributing to the city’s efforts toward energy independence and climate neutrality.

“The project is an example of how the existing infrastructure can be best utilized for clean energy production. After commissioning, the plants will produce approximately 12 GWh of renewable energy per year, which will account for additional annual savings of over 8,000 tonnes of CO2 emissions. The memorandum is fully aligned with Sofia’s commitments to climate neutrality and Veolia’s participation in the NetZeroCities initiative,” Debergh stated.

Sofiyska voda utility striving for energy independence

Sofiyska voda’s wastewater treatment plant in Kubratovo has been energy independent since 2015. It produces biogas from the sludge separated in the process. The parent company stressed that a pending solar power project would make Sofiyska voda the first energy-neutral water supply and sewerage operator in the region, among only a few on the global scale.

The local authority in Sofia recalled there was an idea already in 2003 for eight hydropower facilities on the water supply lines.

Another alternative hydroelectric project was recently unveiled in northwestern Bulgaria. With the ambition to build several hydroelectric plants on pontoons on the Danube river, a local company intends to install a 20 kW pilot facility in Vidin.