Enel’s 2.2 bln investment might not go through as Italy seeks to keep investment in home soil

Tirana, Jan 17, 2008 — The Italian government decided on last week to approve a contested project to build a coal-fired thermal power plant in Polesine, in the river Po dekta, in North-East of Italy, after the energy giant Enel, had threatened to transfer its investment in Albania.
Italian newspaper Il Resto Del Carlino, said that Italian government was convinced to approve it, after that Enel attempted to transfer the 2.2 billion euro investment in Albania.
Enel has worked to build a similar coal-fired plant in Porto Romano, north of the port town of Durres, in Albania, which has received the approval of the Albanian government.
President of Enel Piero Gnudi, said early this week that he “will not wait for ever”. He said that if Italian authorities continue to block permissions to build the plant, he will go to see opportunities in other countries to invest.
On December 3 2008, Enel’s CEO Fulvio Conti and the Albanian Minister of Economy, Trade and Energy Genc Ruli signed a memorandum of understanding for the development of the Albanian energy sector. Under the agreement the company committed to the development of a 1,300 MW coal-fired plant and the construction of a power interconnection line with Italy.
However, environmental groups argue that Albania does not need such large power plants and that they are being built without informing the public fairly on their environmental impact.