Albania's Multi-Million Euro Infrastructure Gap: Why High Spending Isn't Buying Quality

 For years, the Albanian skyline and landscape have been defined by the hum of excavators and the sight of fresh asphalt. From the sprawling "Great Ring" of Tirana to ambitious coastal corridors, the Albanian government has prioritized public investment as the primary engine for economic growth. However, a recent, sobering analysis from the World Bank has pulled back the curtain on a troubling reality: Albania is spending heavily, but the quality of its projects remains alarmingly low.

Photos of destroyed roads in Albania for which millions of euros have been invested

This "value-for-money" crisis isn't just a technicality for economists—it is a direct hit to the pockets of Albanian taxpayers and the country’s long-term European integration prospects.

The World Bank's Verdict: A Paradox of Productivity

According to recent reports and the findings highlighted by VNA, Albania allocates a significant portion of its Gross Domestic Product (GDP) toward public works. On paper, the commitment to infrastructure is there. Yet, when compared to regional peers and international standards, the results are underwhelming.

The World Bank points out that while the budget flows, the efficiency of public investment is lagging. In simpler terms: Albania pays premium prices for "economy class" results. The infrastructure built today often requires costly maintenance much sooner than expected, or worse, fails to catalyze the economic activity it promised.

The Core Issues Identified:

• Poor Project Selection: Projects are often chosen based on political visibility rather than rigorous cost-benefit analyses.
• Fragmented Planning: There is a lack of a cohesive national strategy that links transport, energy, and urban development effectively.
• The "Price Tag" vs. "Quality" Disconnect: Construction costs per kilometer in Albania are frequently higher than in neighboring Balkan countries, yet road safety and durability metrics remain lower.

Why "Expensive" Doesn't Mean "Good" in the Albanian Context

In the Albanian construction sector, the term "rruga flori" (golden roads) has become a common sarcasm among citizens. It refers to the astronomical costs associated with highway segments that take decades to complete or require immediate repairs.

The World Bank’s critique focuses on the Public Investment Management (PIM) framework. Without a transparent and competitive bidding process, the risk of "cost overruns" becomes a certainty. When projects are poorly designed at the initial stage, they inevitably face delays, leading to additional "addendums" in contracts that drain the state budget.

"Investing in infrastructure is not just about pouring concrete; it is about the systems that manage that concrete. Without accountability, high spending becomes a liability rather than an asset."

The Impact on the Albanian Citizen

For the average Albanian, this isn't just about spreadsheets. It manifests in daily life:

1. Traffic and Logistics: Incomplete or low-quality roads increase travel time for commuters and transport costs for businesses, making Albanian products less competitive.

2. Opportunity Costs: Every million euros wasted on a sub-standard bridge is a million euros not spent on the healthcare system, education, or teacher salaries.

3. Environmental Concerns: Low-quality projects often bypass stringent environmental impact assessments, leading to erosion or habitat destruction that further devalues the land.

Moving Toward a Solution: The Road to Reform

The World Bank isn't just highlighting problems; it is advocating for a structural overhaul. To bridge the gap between spending and quality, Albania must adopt several key reforms:

1. Digitalization and Transparency

Implementing an integrated electronic system for monitoring public investments would allow for real-time tracking of projects. If a road is falling behind schedule or exceeding its budget, the public should know why.

2. Strengthening the Role of the Ministry of Finance

The Ministry of Finance must have a stronger "gatekeeper" role, ensuring that no project receives funding unless it has passed a rigorous, independent quality and feasibility assessment.

3. Open Competition

To drive quality up and costs down, Albania needs to attract more international firms and ensure that local tenders are not monopolized. Competition is the most effective tool for innovation and efficiency.

Conclusion: The Choice Ahead

Albania stands at a crossroads. The country has demonstrated it has the fiscal will to invest in its future, but the current path of "high spending, low quality" is unsustainable. As the World Bank warns, if the quality of public investment does not improve, the debt taken to finance these projects will become a burden that the next generation will struggle to carry.

It is time to transition from a "quantity-first" mindset to a "quality-first" strategy. Only then can the "Golden Roads" of Albania truly lead the country toward the European Union.