Albania to build thermo-power plant

TIRANA, Feb. 9 – Albania signed a contract with an Italian company on Friday to build an oil-fired thermo-plant in the south-west of the country, a first major attempt to diversify Albania’s power generation. Italy’s Maire Engineering SpA, that was awarded the 92 million Euro contract, is expected to start the construction this March in Vlora, a sea-port town on the Adriatic, and finish the job in 24 months. The plant’s energy production is estimated to reach up to 97 MW, covering 15 percent of the country’s power needs and making the country relying less on hydropower which stands for 99 percent of its electricity consumption. The Italian company, winner among four international bidders, will also maintain it for 12 years. The project is being funded by the World Bank, the European Bank for Reconstruction and Development, and the European Investment Bank. The plant, the first major attempt at diversifying power generation in the country, will produce 15 percent of Albania’s energy needs and is aimed at securing reliable electricity supplies. The country’s domestic power production is based on hydropower stations in the north that have suffered from dry weather this autumn and winter, and Albania also has limited importing capacity. Albania, with a 3.2 million population, has been in a serious electricity crisis for more than two months due to difficulties in domestic output. Some rural areas have faced power shut downs of up to 18 hours a day. Since 1990, the former communist nation has suffered regular electricity troubles due to poor management, an outdated distribution system and lack of money because of unpaid bills. Following improvements to its management over the past four years, KESH has received hundreds of millions of euros (dollars) in loans to be invested in the power system.