Development cooperation between the Federal Republic of Germany and Albania began in 1988. During this period, Albania has progressed from being the poorest country in Europe to being a potential candidate for accession to the European Union (EU). Nevertheless, the country still faces enormous challenges on its path towards EU integration. Overcoming these challenges is the primary goal of GTZ’s work in Albania. GTZ, on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), has been active in the country ever since cooperation between the two countries was initiated.

The focus of GTZ’s work is on sustainable economic development and water supply. The programmes and projects contribute towards the development of a functioning free market and a competitive economy—prerequisites for EU accession. The project areas include vocational training and EU-compliant commercial law. The GTZ water project also advises the KfW Entwicklungsbank (KfW development bank) on improving conditions for a safe drinking water supply and sustainable waste water disposal.

GTZ is strengthening cooperation between the state and civil society so that the people themselves can participate in the necessary reforms. For its part, the Albanian Government has set up a fund for the promotion of civil society initiatives.

The GTZ model of a social market economy is especially effective in terms of reforming the health insurance sector and introducing international standards for disabled persons with the aim of improving their lives.

GTZ employs two international and 24 national experts for its various projects. Five integrated experts from the Centrum für Internationale Migration und Entwicklung (CIM) and numerous other short-term specialists are also seconded under the aegis of GTZ (as at September 2008). All of them work with local partners on developing solutions that meet EU standards and are compatible with Albanian conditions.

Albania also receives assistance through the multi-country Open Regional Fund for South-East Europe. BMZ uses these funds to promote legal reform, for foreign trade consultancy, to modernise local services, and to advance energy efficiency and renewable energy.

Together with KfW, GTZ maintains a coordination office in Tirana.