The European Bank for Reconstruction and Development is supporting the modernization of Albanian Power Corporation (Korporata Elektroenergjitike Shqiptare – KESH sh. a.), the largest generator of electricity in Albania, with a EUR 218 million.
The state-owned utility provides 70% of domestic generation and is active in the regional energy-generating sector. Helping KESH in restructuring and reform and to improve its financial standing, as well as building resilience in the face of climate vulnerabilities, is part of the EBRD’s strategy to help the countries where it invests to address challenges of energy security and climate change, the international bank said in a press release.
The provisions include the development of a power exchange, regional integration and tariff formation
The sovereign-guaranteed loan will provide KESH with long-term financing to reduce costs and increase liquidity. This will free up resources to allow the company to focus on maintenance and the implementation of a long-term investment and modernization programme. KESH will also improve its corporate governance and operational efficiency, according to the EBRD. The implementation of these changes will allow the utility to comply with the requirements of relevant regulations of the European Union in the energy sector, the statement said. The provisions include the development of a power exchange, regional integration and tariff formation.
EBRD is providing technical assistance from its donor funds to help the company implement climate resilience components in its daily operations and management. “In particular, we are pleased to help the company move towards best international practices in corporate governance and climate resilience,” said Nandita Parshad, EBRD’s head of power and energy utilities.
EBRD stated its investment is in line with a financial recovery plan developed by the Albanian government and KESH with the World Bank.