Bechtel to build Skavica hydropower plant
An important Memorandum of Understanding on Economic Cooperation was signed by U.S. Under Secretary for Economic Growth, Energy, and the Environment Keith Krach and the Albanian Minister of Finance and Economy Anila Denaj. Afterward, Under Secretary Krach and Prime Minister Rama were present in the signing ceremony of the Skavica Hydropower project between the Albanian government and Bechtel, one of America’s best-known engineering and construction companies.
Rama said that this was “a notable day in the bilateral relations of a precious friendship and the signature of this strategic document made Albania a trusted address for American investments.” In addition to the energy investment in hydro-power sector, Rama also mentioned collaboration in the industry of liquid gas as well as on strategic communications On the Skavica project, Rama reiterated that this project is a g “a dream that is going on for half a century” but then now it was set to become reality with the American technical and financial assistance. This according to the Albanian PM will give Albania energy independence from imports.
In his remarks Secretary Krach called the Memorandum “ a great catalyst in paving the way for increased commerce and investment, including through a future Economic Dialogue between our two countries.”
Secretary Krach said that Bechtel was the ideal partner for Albania to realize such a strategic energy project. Bechtel is the company that has built the world known Hoover dam. In ALbania it has, in collaboration with turkish company Enka, built the Nation’s highway connecting Kosovo to Durres.
He also thanked Albania for its “leadership on the critical issue of 5G security and the commitment by the Albanian government to the Clean Path initiative.”
The Clean Network and the Clean EU 5G Toolbox were developed exactly for that reason. The Clean Network addresses the long-term threat to data privacy, security, human rights, and trusted collaboration posed to the free world. It represents the execution of a multi-year, enduring strategy, built on a coalition of trusted partners, countries, and companies.
The history of the construction of the Skavica hydropower plant dates back to 50 years ago. Attempts to build it have been made by several governments.
Skavica is part of the Drin cascade. It was designed in the 70’s to be the first hydropower plant of this cascade in front of Fierza. In 2014, representatives of two Turkish companies, Suzer Group and Nurol Holding, expressed interest in building it but later withdrew.
In 2016, two other options would be introduced, one of which envisioned the construction of two hydropower plants, the first at 445 meters above sea level called Katund i Ri and the second at Skavica, at a quota of 395 meters above sea level. The investment for both HPPs was estimated at 348m euros and an annual output of about 649m kwh.
In 2017, the WB Investment Fund approved a €1.5 million grant for the development of the feasibility study and environmental and social impact assessment for the construction of HPP Skavica, an additional dam, and a 132 MW hydropower plant.
Skavica, according to Rama declaration had also been discussed in the Trieste Summit as one of the key projects as part of the Berlin process however not relevant development came in that context. Indeed Albania has been criticized by experts for being unable to benefit from the regional EU funds.
Skavica HPP was returned for discussion at the end of January 2019, to see the possibility of its realization. This year in June, presenting the ERD funded feasibility plan, Albanian Minister of Infrastructure and Energy Belinda Balluku said there are two scenarios for the 210 MW facility, one worth EUR 308 million and the other EUR 510 million.
