Komani HPP Dam Safety Upgrade



Project number:


Business sector:

Power and energy

Notice type:


Environmental category:


Approval date:

18 Dec 2012



PSD disclosed:

17 Oct 2011

Translated version of this PSD: Albanian

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 für Wiederaufbau (KfW), which are providing concessionary financing or grants.

Transition Impact

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.

The Client

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

EBRD Finance

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.

Project Cost

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 Impact

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


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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