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").
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.
ETI score: 65
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.
OPERATORI I SHPERNDARJES SE ENERGJISE EEKTRIKE SH A
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
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
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
email@example.com; firstname.lastname@example.org; email@example.com
Bulevardi Gjergj Fishta, Nr. 88, H. 1 1023, Tirana, Albania
PSD last updated
18 Jan 2021
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