Komani HPP Dam Safety Upgrade

Location:

Albania

Project number:

43125

Business sector:

Energy

Notice type:

State

Environmental category:

B

Approval date:

18 Dec 2012

Status:

Repaying

PSD disclosed:

17 Oct 2011

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

The proposed transaction consists of a EUR 12.7 million sovereign loan to the Republic of Albania to be on-lent to Korporata Elektroenergjitike Shqiptare sh.a (KESH) for investments in the Komani hydropower dam. The proceeds of the EBRD's senior loan will finance part of the urgent investment measures of KESH, aimed at strengthening of the dam safety at the Drin and Mat River Cascades of hydropower plants, which generate 95% of the entire Albanian electricity production. The Bank will parallel-finance the project's overall investment plan with the World Bank (WB), Swiss State Secretariat for Economic Affairs (SECO) and Kreditanstalt fur Wiederaufbau (KfW), which are providing concessionary financing or grants.

Transition Impact

ETI score: 60

The transition impact of the project stems from the following:

  • The project will support the establishing of: (i) a modern water alarm system consisting of acoustic sirens and alarm centres equipment both at KESH's HQ (main alarm centre) and at the hydro power plants (secondary alarm centre); and (ii) an Emergency Preparedness Plan for the Drin and Mat River cascades. These processes will have a demonstration effect and would be replicated in other river basins and hydro power plants.
  • The project will support the implementation of an alarm system with appropriate sound pressure to prevent health hazard for people in the schools or hospitals and in the urban area of the city of Shkoder. A Dam Surveillance Manual will be established for each of the dams, as well as inundation maps and an evacuation plan for the people being threatened by the flood wave. The main alarm centre system will assure interface with the civil defence alarm systems and the Police, the Local Authorities and the National Civil Emergency Centre.
  • The proposed project will promote institutional strengthening of KESH and the Albanian Commission of Large Dams (ACLD). The strengthening of the capacities of KESH's dam safety department and the ACLD is part of the overall Project and loan conditionality, which will lead to the sustainability and long-term preparedness for the implementation of the dam safety measures.

Client Information

ALBANIA SOVEREIGN

The client is KESH, the Albanian Power Company responsible for generation of electricity.

EBRD Finance Summary

EUR 12,700,000.00

Sovereign loan of EUR 12.7 million to the Republic of Albania.

Civil works will be co-financed with the WB, SECO and KfW. Supervision consultancy services will be financed by the WB.

Total Project Cost

EUR 72,260,000.00

Estimated EUR 72.3 million.
Total cost excluding taxes and duties, includes EUR 59.6 million parallel financing in the form of grants and concessionary financing from WB, SECO and KfW.

Environmental and Social Summary

Remedial works in the area of the reservoir and at the toe of the dam could cause sedimentation in the reservoir and the downstream river. The works will also present challenges to the occupational health and safety for the workers. In addition, there are community health and safety risks downstream, which will remain until the remedial works are completed. The Environmental and social due diligence will evaluate the material risks and devise appropriate measures to manage/mitigate risks. Throughout the due diligence and remedial works, the Bank will work with the Client to design and implement an appropriate program of stakeholder engagement.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Ani Spahiu, Taulant Hoxha
spahiua@kesh.al, hoxhat@kesh.al
+35542228434
+355 4 2232046
www.kesh.al
Viktor Eftimiu str., Tirana, 1000 Albania

Implementation summary

The Project introduced the first dam safety improvement program in Albania, contributing not only to improving flood risk prevention and climate change mitigation, but also allowing for more efficient management of the Drini River cascade and increase in renewable generation. Despite the complexity and novelty of the program, its components were implemented on time, generating substantial savings subsequently used to finance the essential component of spillways rehabilitation at the Komani hydropower plant.

The project also ensured adherence to strict environmental and social standards. KESH implemented the Environmental and Social Action Plan in full and on time and has embarked on an important path of accreditation and certification in environmental and social ISOs.

As a part of Transition impact, the Project has contributed to the demonstration of new replicable behaviour as well as transfer of skills. The Project has a significant demonstration effect, as it is the first rehabilitation program in the largest cascade in Albania. It has been implemented without disruptions to the domestic supply.

PSD last updated

13 Dec 2021

Understanding Transition

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

Business opportunities

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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 compliance@ebrd.com. 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.

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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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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