Albania and German development bank KfW have signed a financing agreement worth 50 million euros ($57.9 million) to upgrade wastewater infrastructure in three Albanian municipalities, the Finance Ministry announced in Tirana.

Based on the agreement, which provides for 47 million euros in loan and 3 million euros in grant, projects to improve the sewage networks and expand the wastewater treatment plants in the municipalities of Shkodra, Leza and Agioi Saranda will be implemented, according to the Minister of Finance.

The funding is part of the "Water Sector Performance and Investment Programme – Municipal Infrastructure V", totaling 145.7 million euros, which concerns water supply, sanitation and wastewater treatment actions for regional water companies in Albania.

Under the program, Germany has committed a total of 89 million euros – of which 80 million euros through KfW loans and 9 million euros in the form of a state grant.

The same program is also funded by The European union With 43.4 million euros and Switzerland with 13.3 million euros in grants.