Water Utilities, World Bank: Business Plans Stalled; Delays Also in Fraud and Corruption Reporting

The World Bank rates the implementation of the program for the modernization of the water supply and sewerage sector in Albania as “moderately satisfactory,” but its latest report identifies delays in the utilities’ business plans, investment mechanisms, and reporting on fraud and corruption allegations.

The report keeps at 0% the indicator of water supply and sewerage utilities that have submitted business plans to the Water Regulatory Authority (ERRU) for approval, against an initial target of 60%.

The measurement recorded in the table for this indicator is from September 2022. The Bank explains that the methodology was approved by ERRU in November 2025 and that, after the mid-term review, the end target will be lowered to 40% “to take into account delays in its approval.”

Also at 0% is the indicator for the percentage of utilities receiving investment allocations based on eligibility and performance criteria. The report says the description and end target of this indicator will be revised and that, after aggregation, at least one regional water utility must meet the target.

Another delay concerns the mechanism for collecting information on “credible and material allegations of fraud and corruption” under the program, the measures taken or underway, and their reporting to the World Bank. Responsibility has been assigned to the Ministry of Justice, and reporting is foreseen on an annual basis.

In the document, the Bank writes that “the activity as a whole is delayed, pending approval by the Ministry of Justice.” The report does not identify in this section concrete cases of corruption, and its finding concerns the delay of the reporting mechanism.

The water supply indicators also show gaps against targets. The number of urban zones with at least 18 hours of water supply remains 15, according to the measurement recorded for September 2022, against a target of 35 by December 2027. Meanwhile, 29% of utilities were found in December 2025 to meet at least 75% of their performance agreement targets, against an initial target of 90%.

After the mid-term review it was agreed that the indicator would change, requiring fulfillment of at least 50% of the targets, while the end target will be 50% of utilities.

For vulnerable households, the report records 104 new functional connections providing safe and reliable water service, measured in September 2022, against a target of 3,000 by December 2027.

On 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 records zero, against a target of 8,000.

The report notes better progress in financial performance. The national indicator for coverage of direct operating costs reached 109.6 in March 2026. The Bank links the improvement to increased revenues from sales and tariffs, better billing, customer administration, and collections.

The document also notes that the baseline for this indicator should be revised to 94.6, following the 2022 verification, with an end target of 104.6. Some utilities have also improved control of energy, personnel, and maintenance costs.

Twelve energy efficiency audits were also carried out in five regional utilities, covering 23 municipalities; the report considers this target achieved and exceeded. The new performance monitoring and benchmarking system has also been set up and is functioning.

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 utilities and to expand access to safely managed water supply services.

At 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 figures as revised to 78.27, with 35.88 disbursed, or 45.84%, while 2.19 of the grant has been disbursed, or 34.76%. The project is expected to close at the end of 2027.

Burimi: 24-ore.com