The World Bank assesses the implementation of the program to modernize the water supply and sewage sector in Albania as "moderately satisfactory", but its latest report highlights delays in the enterprises' business plans, investment mechanisms, and reporting on allegations of fraud and corruption.
The report maintains at 0% the indicator of water supply and sewage companies that have submitted business plans to the WRA for approval, against an initial target of 60%. The measurement noted in the table for this indicator is for September 2022. The Bank explains that the methodology was approved by the WRA in November 2025 and that, after the mid-term review, the final target will be reduced to 40% “to take into account the delays in its approval”.
The indicator for the percentage of enterprises receiving investment allocations based on eligibility and performance criteria also figures at 0%. The report states that the description and final target of this indicator will be reviewed and that, after aggregation, at least one regional water utility should meet the target. Another delay is related to the mechanism for collecting information on “credible and material allegations of fraud and corruption” within the program, measures taken or in process, and their reporting to the World Bank. Responsibility is assigned to the Ministry of Justice and reporting is foreseen every year. In the document, the Bank writes that “the activity as a whole is delayed, awaiting approval by the Ministry of Justice”. The report does not identify specific cases of corruption in this section and its finding is for the delay of the reporting mechanism.
Water supply indicators also show gaps in targets. The number of urban areas with at least 18 hours of water supply remains at 15, as measured in September 2022, against a target of 35 by December 2027. Meanwhile, 29% of enterprises were found to be meeting at least 75% of the performance agreement targets in December 2025, against an initial target of 90%. Following the mid-term review, it was agreed that the indicator should be revised to require at least 50% of the targets to be met, with the final target set at 50% of enterprises.
For vulnerable households, the report notes 104 new functional connections providing safe and reliable water service, as of September 2022, against a target of 3,000 by December 2027. In the broader indicator, 5,342 people are found to have gained access to improved water sources, with the latest data from July 2025, against a target of 40,000. In rural areas, the figure is 5,342 against a target of 32,000, while for urban areas the report notes zero, against a target of 8,000.
The report highlights improved financial performance. The national indicator for covering direct operating costs reached 109.6 in March 2026. The bank attributes the improvement to increased revenue from sales and fees, improved billing, customer management and collections.
The document also notes that the baseline for this indicator should be revised to 94.6, after the 2022 verification, with a final target of 104.6. Some enterprises have also improved the control of energy, personnel and maintenance costs. 12 energy efficiency audits have also been carried out in five regional enterprises, covering 23 municipalities; the report considers this objective to have been achieved and exceeded. The new performance monitoring and comparison system is also up and running.
The National Program for the Modernization of the Water Supply and Sewerage Sector in Albania was approved in May 2022 and aims to improve the operational and financial performance of enterprises and expand access to safely managed water supply services.
Upon approval, the World Bank structured the financing with a $75 million loan and a $6.3 million grant. The loan is part of a $135 million program co-financed by the Albanian government. In the current report, the loan value is revised to $78.27, with $35.88 disbursed, or 45.84%, while $2.19, or 34.76% of the grant has been disbursed. The project is expected to close by the end of 2027./ Monitor
