Fier power plant on concession

TIRANA, Feb.16 – The Albanian Economy Minister, Genc Ruli declared the intention of the government to offer a build-own-operate concession for the upgrade of its Fier power plant. The latter is the only operating thermal power plant and is located strategically near fuel sources in the south of the country. Ruli explained that the decision is part of the bigger project to revive the energy system, and raise the thermal plant’s capacity up to 200 megawatts (MW). The ministry has proposed that the government approve an “emergency” project offering a concession on the Fier thermal power plant, according to Genc Ruli. The cabinet has one week to approve the criteria for offering the plant to private investors.
The tender will be open and the price will start from one euro, Ruli said. Thus the project falls under the government initiative, called ‘Albania 1 Euro’, aimed at attracting foreign and domestic investment by offering state assets, land, utilities and communal services at the price of one euro.
The Fier plant, fuelled by heavy oil produced by the nearby Fier refinery, has an installed capacity of 159 MW from five Chinese technology units – two units of 12 MW and three units of 25 MW, and a 60 MW unit with Czech technology. However, the plant operates at a reduced capacity of some 20 MW. Next month, Italian construction-to-services group Maire Engineering will start building the country’s second thermal power plant in Vlore, located very close to Fier, also in the south. The project consists of building of a 100 megawatt (MW) combined-cycle power plant, to be fuelled by distillate oil. Both projects are aimed at reducing Albania’s reliance on hydro resources. Power cuts have resumed after the cut-free time offered a result of the local elections.