|
EBRD generates €16 million for Albanian power sector
Loan to help improve transmission, support regional integration
The EBRD is providing further support for the development of Albania’s power
sector with a new €16 million loan to state-owned power utility Korporata
Elektroenergjetike Shqiptare (KESH).
The loan, guaranteed by the Republic of Albania, aims to strengthen the
country’s electricity transmission network by financing the rehabilitation of
six out-dated transmission substations that will also support Albania’s
participation in the regional energy market in southeast Europe.
Varel Freeman, EBRD First Vice President, said infrastructure development is
part of an overall series of improvements needed in the country, and the Bank,
working with the government, is addressing those needs. The EBRD welcomes and
continues to support government commitments to improving the power sector,
which will ultimately benefit local businesses and residents, said Mr Freeman.
Furthermore this project is important in supporting the further development of
the regional energy market in southeast Europe, which will be of benefit to
all countries in the region, he added.
The loan is the EBRD’s fourth to KESH and underscores the Bank’s commitment to
helping improve the power sector in a country which, despite progress, still
faces problems to provide a reliable power supply. Earlier loans have
contributed to the upgrading of transmission and distribution networks, to the
restoration of hydropower stations and to the construction of a new thermal
power plant.
“The Government of Albania appreciates the assistance given to support such an
important strategic sector as the electricity sector” said Ridvan Bode the
Minister of Finance.
The EBRD is working on this project with the World Bank which is providing a
co-financing loan. The Italian government is also contributing to the
investment, providing a grant of €4.6 million to finance a co-management
assistance programme to KESH’s top management.
|
