The ESP would be jointly financed by the World Bank, the Government of Sweden and the GEF. The currently prepared project aims to address major challenges in natural resource management in Albania, such as the upstream soil erosion, illegal logging, and over-grazing.
The ESP builds on the Albania Natural Resources Development Project that supported communal and participatory forest and pasture management plans and micro-catchment management plans covering over 800,000 ha.
The majority of Albania’s electricity is derived from hydroelectric power. Upstream soil erosion and downstream sedimentation are causing significant problems with reservoir sedimentation, flooding, and damaged irrigation, transport and power infrastructure.
The Government of Albania has transferred from the state to municipal ownership more than 60% of forest and pasture lands. However, much of the transferred land is in poor condition with unsustainable resource use and fragile soils.
The currently prepared ESP aims to improve sustainable natural resource management through support to the already existing forest and pasture and micro-catchment management plans and through establishing payment for environmental services mechanisms for carbon and for watershed services.