Albania to privatize distributing energy industry

TIRANA, March 3 – The Albanian government decided last week to privatize the country’s power industry in a process that will be overseen by the World Bank. The World Bank will further assist Albania in auctioning the aging distribution lines belonging to the state utility company, KESH .
Last month the government assigned the concession for its only thermal power plant in Fier to the Greek-based consortium, Atermon Sa and Roder & Blackwell Consulting. The token payment for the concession was just one Euro. The 150-megawatt plant was decommissioned last year because of pollution hazard caused by its obsolete Soviet-era technology and will need much rebuilding.
The legislations allowing for the selling of KESH’s distribution department is expected to be swiftly ratified by Parliament.
Albania has been hit by an acute energy crisis, with regular power cuts throughout the country, including in the capital Tirana.
International organizations have expressed concern that the energy crisis could have an adverse effect on the country’s robust economic growth, which has been averaging close to six percent per annum in recent years.