TIRANA (Albania), April 26 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) told SeeNews it has declared effective a 218 million euro loan intended to support the restructuring reforms of Albania's state-owned power corporation KESH.
“The KESH loan was declared effective by the Bank on April 20th this year (after having been signed in June 2016), following fulfilment of the conditions precedent to effectiveness," Matteo Colangeli, head of EBRD office in Albania, said in a statement e-mailed to SeeNews late on Wednesday. "This enables disbursement of the first 118 million euro tranche of the total 218 million euro loan.”
Following the disbursement of this first tranche, to be used to restructure KESH’s balance sheet by extending the tenor of its debt, further reforms are required to make possible the release of an uncommitted second tranche of 100 million euro, Colangeli added.
"The agreed plan for a comprehensive programme of reforms of the company and sector will have a significant impact on the development, management and operational efficiency of the power sector in Albania."
Colangeli explained that the project supports the application of the EU’s Third Energy Package in Albania, adding that it aims to transform KESH into a financially viable entity which is more efficient and operates under higher corporate governance, environmental and climate change resilience standards.
"The project also supports the EBRD Country Strategy for Albania and the EBRD Energy Sector strategy which aim to promote unbundling and the commercialisation of state-owned power utilities, the application of optimal tariff methodologies and the integration of the Albanian energy market into the regional energy market," the EBRD head of Albania said.
KESH is active in generation and supply of electricity. It supplies almost 70% of Albania's electricity demand through own generation.