Deutsche Bank, BEG Spa sign deal on Kalivac hydropower station

TIRANA, May 8 – Albania, Deutche Bank and BEG Spa signed Tuesday an amendment for the construction of the Kalivac hydropower station. There is a BOT (Built, Operate, Transfer) concessionary deal with the two international institutions that was approved ten years ago.
The amendments improve some issues of the previous deal on the partners of the concession. Albania has suffered before from the lack of the financial funders for the concessionary companies.
The new deal envisages that within 160 days BEG SpA and Deutsche Bank (DB) will form a joint company which will get the concession. It will be owned 45% by the DB and 55% by BEG SpA. Their shares cannot be transferred without a written approval. The new company will have a capital of at least 15 milion Euro.
The new company has to show wihtin a year that it has already secured the money and within ten months they should chose a building company to start work.
The new power station is to be completed in 36 months upon the start of work.
The company will also have to respect a 0.5 percent “concession fee” for the first three years it has not worked. The starting moment of the concession was considered 2003.