Albania gets 90 million euros in loans from KfW to improve connections to domestic and international electricity networks
TIRANA, Jan. 7 – Germany’s government-owned development bank, the KfW, is loaning Albania 90 million euros to improve its electricity system and connections with the international network, officials announced this week.
Finance Minister Ridvan Bode and KfW Office Director Ute Rodrian signed the agreement in Tirana this week.
The loan stipulates that 49 million euros will go to improving the network in southern Albania and the rest, 42 million euros, will go towards financing the 400 kilovolt interconnection line between Albania and Kosovo.
“These two projects aim to ensure substantial improvements in the power transmission system and increase the energy efficiency of our system in years to come,” Mr. Bode said at the signing.
Albania expect to complete the high power transmission lines with Montenegro in 2010, which will bring double the export capacities and within three years it wants to finish the line to Kosovo, which will triple the current export capacity, according to Energy Minister Dritan Prifti.
Germany’s ambassador in Tirana, Bernd Borchard, said his country is glad to help in Albania’s development.
“Just these two agreements signed today with a total value of more than 90 million euros are a very clear indication that we try to follow words with deeds,” Ambassador Borchard said.
Albania and Germany also signed another agreement on protection the environment at Lake Ohrid through building a proper sewage plant in the city of Pogradec. That project has reached a total of 5.8 million euros.
The German government has so far committed a total of 850 million euros for investment projects throughout Albania, of which more than half are implemented by the KfW.
