A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania

The SAVi assessment of the Tirana–Durres railway in Albania reveals that while the project is not economically viable under conventional financial metrics (BCR of 0.12), it is highly profitable from a societal perspective with a Sustainable Benefit-Cost Ratio (S-BCR) of 4.79. Over a 30-year period (2023–2053), the project is projected to generate cumulative discounted net benefits of EUR 270.34 million. The most significant financial gains come from avoided vehicle operating costs (EUR 96.79 million), followed by health benefits (EUR 44.93 million), time savings (EUR 44.39 million), and avoided accident costs (EUR 41.61 million). The report argues that integrating non-tangible social and environmental externalities—such as reduced CO2 emissions and improved public health—provides a stronger business case for sustainable transport infrastructure in Albania.

• The Tirana–Durres railway project is highly profitable from macroeconomic and societal perspectives, with cumulative discounted net benefits of EUR 270.34 million over a 30-year period (2023–2053).
• There is a stark contrast between the conventional Benefit-Cost Ratio (BCR) and the Sustainable BCR (S-BCR); the conventional BCR is 0.12, while the S-BCR is 4.79, making the sustainable valuation approximately 40 times higher.
• Avoided vehicle operating costs, including fuel and maintenance savings from shifting road traffic to rail, represent the largest single benefit at EUR 96.79 million in cumulative discounted value.
• The project is expected to generate significant social benefits, including EUR 44.93 million in health impacts (from increased physical activity and reduced air pollution) and EUR 41.61 million in avoided costs from traffic accidents.
• Economic added benefits include EUR 44.39 million from the value of time saved due to reduced congestion and EUR 38.41 million from income creation through new employment in railway construction and operations.
• The railway will provide environmental benefits by reducing CO2 emissions and other environmental costs, with cumulative discounted values of EUR 19.56 million and EUR 32.08 million respectively.
• Total investment costs for the project are estimated at EUR 71.42 million (discounted), consisting of EUR 49.21 million in capital costs and EUR 22.22 million in operations and maintenance (O&M) costs.
• The project's direct revenues from railway operations are relatively low, totaling EUR 8.67 million in cumulative discounted value.

APA

Kapetanakis, M., Niño, N., Casier, L., & Bassi, A. M. (2024). A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf

Chicago

Kapetanakis, Michail, Nathalia Niño, Liesbeth Casier, and Andrea M. Bassi. A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf.

Wikipedia

{{cite report |last1=Kapetanakis |first1=Michail |last2=Niño |first2=Nathalia |last3=Casier |first3=Liesbeth |last4=Bassi |first4=Andrea M. |title=A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania |publisher=International Institute for Sustainable Development |date=January 2024 |url=https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kapetanakis2024sustainable, author = {Kapetanakis, Michail and Niño, Nathalia and Casier, Liesbeth and Bassi, Andrea M.}, title = {{A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jan, url = {https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }