Germany Grants Albania 1.3 Mln Euro for Two Energy Projects, To Lend Further 91 Mln Euro

The projects are for the construction of a 400 kilovolt (kV) transmission line that will link Albania with neighbouring Kosovo and the construction of a 110 kV transmission line in southern Albania, the ministry said in a statement.

German development bank KfW will provide the money to Albanian state-owned grid operator OST, Albania’s finance ministry said in a statement, after a meeting with KfW representatives in Tirana.

As part of bilateral cooperation, an agreement was reached on loan financing on the part of KfW for the project for the transmission line in southern Albania worth 49 million euro and for the transmission line in Kosovo worth 42 million euro, the ministry said in a statement.

“The grant will be spent on the preparation of the projects,” Helena Vako, director of finance minister's cabinet told SeeNews. “After the projects are prepared the Finance Ministry, OST and KfW could sign loan agreement,” she added.

The transmission line with Kosovo will diversify Albania’s electricity import routes. Kosovo is to build by 2020 a third coal-fired power plant, with an installed capacity of 1,800 MW to 2,000 MW. The construction works of the 238 kilometres long line are expected to start next year and to last 20 months.

Energy-starved Albania is currently building a 400 kV transmission line that will link its grid with Montenegro. Albania has no interconnection with Bulgaria but buys Bulgarian electricity to cover its increasing domestic energy demand through a 400 kV transmission line crossing Greece.

($=0.7777 euro)