The European Bank for Reconstruction and Development (EBRD) has granted €218m loan to Albania’s state-owned electricity generation company Korporata Elektroenergjitike Shqiptare (KESH) to support its restructuring and reform package.
The EBRD sovereign-guaranteed loan will offer the power generator a long-term financing, which will help it to reduce costs and boost liquidity.
KESH plans to use the financing to free up resources for maintaining existing assets and to undertake a modernization program.
The company plans to boost its operational efficiency and undertake development of a power exchange, regional integration, and tariff formation, as part of its comprehensive reform package.
EBRD power and energy utilities director Nandita Parshad said: "KESH has embarked on a path of comprehensive reform and the EBRD is pleased to support this effort.
"In particular, we are pleased to help the company move towards best international practices in corporate governance and climate resilience."
Additionally, EBRD will offer technical aid from its own donor funds to help the utility to implementclimate resilience aspects in its daily operations.
KESH CEO Agron Hetoja said: "The EBRD loan will help strengthen our financing structure and allow us to become a leader of reform in the sector.
"The implementation of our ambitious plan will transform KESH for the benefit of our economy and customers."
Almost €1bn has been invested by EBRD till date in about 70 projects in Albania.
Image: KESH intends to free up resources for maintaining existing assets. Photo: courtesy of European Bank for Reconstruction and Development.