Albania's Korporata Elektroenergjitike Shqiptare (KESH) has secured a €218m loan from the European Bank for Reconstruction and Development (EBRD) for a restructuring and reform package.
KESH produces about 70% of the total domestic electricity in the country and is also an active player in the regional energy-generating sector.
Supporting KESH in the modernization and enhancement of its financial standing is part of EBRD’s strategy to invest in countries where there are challenges to energy security and climate change.
The plan is to build resilience in the face of climate change in such countries.
The bank will provide KESH with a sovereign-guaranteed loan with the benefit of long-term financing which can reduce its costs and increase liquidity.
According to the EBRD, loan in this form will free up resources for the company and will allow it focus on maintenance of existing assets and implementing long term investment and modernisation programme.
KESH will use the loan to implement corporate governance and will increase its operational efficiency.
EBRD director, head of power and energy utilities 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."
The EBRD will also provide technical assistance from its own donor funds to KESH in the implementation of climate resilience components in its daily operations and management.
KESH CEO Agron Hetoja said: "This is a very important moment for our company today. 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."
Image: EBRD offers €218m to KESH in Albania for modernisation. Photo: Courtesy of European Bank for Reconstruction and Development.