July 26 (SeeNews) - Germany's state-owned government development bank (KfW) is providing a 50 million euro ($55 million) loan to Albania for the construction of a 400kV power transmission line to Macedonia, Albania's energy ministry said on Tuesday.
Out of the total, 30 million euro will be immediately available, while the rest will be approved after the summer vacations, the ministry said in a statement, posted on its website.
The Albanian part of the project has a total value of 70 million euro. The rest of the costs will be covered by an EU grant of 14 million euro and the country's system operator OST.
"This funding contributes to a sustainable energy supply, which is a precondition for further economic growth and a chance to become a power exporter" Germany's ambassador, Susanne Schutz, said on the signing ceremony.
In Albania, the project includes a 56-km aerial line to the Macedonian border, the expansion of two sub-stations in the cities of Elbasan and Fier and a new aerial line between them. In Macedonia, the high-voltage power line continues to the city of Bitola.
The project is part of the European Commission’s initiative to establish an East-West electricity transmission corridor between Bulgaria, Macedonia, Albania, Montenegro and Italy, including the planned submarine cable from Montenegro to Italy, an important step towards establishing a regional electricity market.