ALBANIA POWER DISTRIBUTION REHABILITATION

Location:

Albania

Project number:

23830

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Target board date:

09 Jul 2002

Status:

Completed

PSD disclosed:

09 Apr 2002

Project Description

Proposed €24 million loan to KESH to finance part of the Power Transmission and Distribution project (PTDP) with the aim of reducing technical and non-technical losses in the Albanian power system. The EBRD project will finance supply and install contracts for the rehabilitation and upgrade of the power transmission and distribution systems and substations in the following cities: Tirana, Kavaja, Korca, Berat and Lushnja.

Transition Impact

The project would support the stabilisation of the electricity sector by improving the system’s reliability and reducing losses as well as strengthening institutional reforms and sector management. Progress in these areas will allow Albania to attract qualified strategic investors to participate in a competitively tendered privatisation of the electericity sector, which Albania hopes to conclude in the next several years.

The Client

KESH, established in 1992, is the vertically integrated state-owned company responsible for the generation, transmission, and distribution of electricity within Albania and for trading electricity with foreign entities. KESH owns and operates 1,684 MW of installed generation capacity, a transmission network of 2,418 km and a distribution network of 45,512 km.

EBRD Finance

The proposed loan of approximately €24 million (phased into two tranches) will have a maturity of 12 years, including a 3 year grace period.

Project Cost

€27.8 million. The total PDTP cost is estimated at €200 million. The PDTP project as a whole involves various other sector upgrade components. These are being financed in a co-ordinated manner with the EBRD component by the European Investment Bank and the World Bank (IDA) as well as by concessional co-financing from the Japan Bank for International Cooperation, and the Swiss, Italian, and Spanish Governments. KESH will also contribute co-financing to the EBRD and other components.

Environmental Impact

The project was screened B/1. An environmental assessment is being undertaken by international consultants.

Technical Cooperation

None.
 

Business opportunities

For business opportunities or procurement, contact the client company.

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