The European Bank for Reconstruction and Development (EBRD) is providing a 30 million euro loan to Korporata Electroenergjetike Shqiptare (KESH), Albania’s electricity utility.
Charles Frank, First Vice President of the EBRD, said: “Albania’s infrastructure is experiencing severe technical and financial difficulties in the aftermath of the Kosovo conflict. Urgent action is required. EBRD assistance to Albania’s power sector, which links northern Europe to Greece and southern Italy, will benefit the whole of south eastern Europe.” The loan to KESH will allow it to improve the availability and reliability of the region’s power supply, while lower costs will stimulate industrial activity. The project will lead to the introduction of private management for the sector, and should result in a more stringently enforced payment system. In the longer term, the management contract should pave the way for full privatisation.