TIRANA, May 30 (Xinhua) -- Albania and Germany on Wednesday signed an agreement to conduct preliminary studies on water and sanitation investments in 11 municipalities in Albania.

Albanian Minister of Economy and Finance Arben Ahmetaj and Director of KfW -- German Development Bank Bjorn Thies signed the agreement, which allocates 1.95 million euros (around 2.26 million U.S. dollars) to feasibility studies for a future water supply and sanitation program in Albania.

Ahmetaj praised the role and support of KfW in financing development projects in Albania, which directly improve the delivery of community services.

In his speech, Thies underlined the successful cooperation with the Albanian government to improve the water supply for about 1 million Albanian citizens.

Moreover, he said that the next program will bring this cooperation to a new level, as it supports Albania on its path to European standards in this sector.

These grant funds are allocated by the German government through German Development Bank KfW as part of the preparatory phase of a new project, the Water Performance and Investment Program (WPIP).