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WB: Infrastructure gaps turn into advantages, Albania ranks among the countries with the highest return

2026-07-30 11:12:55Aktualitet SHKRUAR NGA REDAKSIA VOX

WB: Infrastructure gaps turn into advantages, Albania ranks among the countries

The large gaps in roads, railways, and energy make Albania among the countries where new investments in infrastructure can yield high returns compared to other countries in Europe and the Region.

According to the latest World Bank study, "Infrastructure Fundamentals: From Existing Assets to Future Growth," Albania has an efficiency ratio of 4.39 in energy and 2.22 in transport.

This means that for every 1 lek spent on energy investments, the overall return to the economy could reach around 4.4 lek, while for every 1 lek invested in transportation, the return could be around 2.2 lek.

This return represents the overall benefit the economy receives, through increased production, reduced costs, time savings, better connectivity to markets, and improved services for citizens and businesses.

The bank calls this indicator the infrastructure investment efficiency ratio. It compares the economic and social benefits an investment brings with the costs of financing and consuming it over time. When the ratio is above 1, the potential benefits are higher than the costs.

The high ratio does not mean that Albania has a more developed infrastructure, on the contrary, it is related to the fact that the economy remains underdeveloped due to a lack of infrastructure.

The bank explains that the return on investment in transport is typically higher in developing countries as they have less infrastructure and each new project fills a larger gap.

In developed countries, road and rail networks are already dense. For this reason, an additional investment usually brings a smaller difference, but in our country, due to large gaps, the economic impact of a new project can be much stronger.

With an efficiency ratio of 2.22, Albania presents a higher potential return on investment in transport than the countries of the Region. In Bosnia and Herzegovina, the transport efficiency ratio is only 0.77. This means that the estimated economic return is lower than the cost of investment under current financing conditions.

Albania has an indicator almost three times higher. In Bulgaria, the ratio is 0.82, while in Croatia it reaches 1.02. Compared to these countries, Albania's ratio is about 2.7 times higher than in Bulgaria and about 2.2 times higher than in Croatia and about 2.9 times higher than in Bosnia and Herzegovina.

Even compared to some more developed European countries, Albania presents higher potential in transportation, because it starts from a lower level of infrastructure and has larger gaps to fill.


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