Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

21 Jul 2021



PSD disclosed:

18 Jan 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of up to EUR 70 million to be provided to Operatori i Shperndarjes se Energjise Elektrike ("OSHEE"), the Albanian state-owned holding company of the distribution network entity and retail supplier, to alleviate liquidity constrains of OSHEE caused by the continuing Covid-19 crisis and to support the construction of a 110/20 KV distribution substation in central Tirana ("the project").

Project Objectives

The project is part of the Bank's response to the challenges caused by Covid-19 and, in addition, will support the construction of an underground distribution substation in central Tirana. The substation is the first of its kind in Albania and will have a significant impact on the reconstruction of the distribution network.

Transition Impact

ETI score: 60

The project meets the Resilience and Inclusion transition qualities. The proposed emergency liquidity facility will increase the resilience of the sector to systemic shocks as a result of the Covid-19 crisis. The proposed facility is structured to ensure that vital payment capacity and liquidity are maintained and passed through to the supply chain of OSHEE. In addition, OSHEE will establish a professional training centre to offer high quality training programmes and target young employees from underserved regions. Over the four-year repayment period, about 140 young people will gain accredited market-relevant skills with the aim to reach at least 35% of female participants. The project will include new cooperation with local technical and vocational education & training institutes or technical colleges. The project will also support policy dialogue to promote dual education.

In addition, the project will support the improvement and strengthening of OSHEE's anti-corruption governance as well as important health and safety improvements. The project will also provide assistance to OSHEE in preparation of a smart grid roadmap.

Client Information


Operatori i Shperndarjes se Energjise Elektrike Sh.A ("OSHEE") is the holding company of the Albanian distribution network operator and retail supplier. Both the distribution network operator and the retail supplier were legally unbundled from OSHEE in 2018. Operational and functional unbundling is ongoing as required by the Albanian legal framework and in line with requirements of the Energy Community.



EBRD Finance Summary

EUR 70,000,000.00

The project will be structured in two tranches: i) a tranche of up to EUR 55 million to be used by OSHEE to alleviate the liquidity constrains to OSHEE caused by the Covid-19 crisis, and ii) a tranche of up to EUR 15 million to be used by OSHEE to finance the construction of a 110/20 kV distribution substation in central Tirana.  

Total Project Cost

EUR 70,000,000.00


The EBRD investment closes the funding gap. At the same time, the EBRD does not crowd out other sources such as  IFIs, government or commercial banks but complements them.

Environmental and Social Summary

Category B (ESP 2019). Environmental and social issues associated with the construction of a state-of-the-art underground 110/20 KV distribution substation in central Tirana will not be associated with significant environmental and social impacts, which are site specific and can be assessed and mitigated based on an Environmental and Social Due diligence (ESDD). The ESDD is being undertaken in-house by the Banks Environmental and Sustainability Department (ESD) and is risk based in accordance with the Bank's Covid-19 guidance utilizing questionnaires and virtual meetings.  The ESDD will review, among others, the Client capacity and commitment to managing environmental and social risks associated with its business activities in accordance with relevant national laws and the Performance Requirements (PRs) with areas of focus including occupational and community health and safety; labour and complaint management. For the new sub-station further assessment of the project's E&S impacts will be carried out, which are expected to be largely site-specific and managed through good design, construction and operational practice.  Specific impacts including noise; occupational health and safety and emergency response; electromagnetic fields (EMF) and community safety will be reviewed.  The potential to avoid or minimise the use of SF6 for substances with lower global warming potential will be investigated. Based on the due diligence an ESAP will be developed and agreed with the Company. The PSD will be updated once the ESDD is completed.

Technical Cooperation and Grant Financing

The Bank will support OSHEE with technical assistance to support: i) improvement of anti-corruption processes and governance, ii) improvement and strengthening of health and safety procedures and management system, iii) technical skills enhancement through training delivery, and iv) the preparation of a smart grid roadmap for OSHEE.


Company Contact Information

Ceno Klosi; Ilda Malile; Petraq Lika;;
Bulevardi “Gjergj Fishta”, Nr. 88, H. 1 1023, Tirana, Albania

PSD last updated

18 Jan 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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