Government budget to finance urgent imports

TIRANA, Jan. 23- The Finance Ministry said on Tuesday that Albania’s state-owned power utility KESH is seeking a two billion lek ($20.8 million/16 million euro) loan from the government to finance urgent electricity imports. The Finance Minister answered with an online statement “We are able to meet the request but, of course, if KESH provides the necessary guarantees that it would repay the loan on time.” Over the weekend, KESH raised daily power imports to the maximum of 10.7 million kilowatt-hours (kWh), in a desperate effort to slow the depletion of the country’s scarce water reserves used for power generation. Daily electricity consumption in Albania is estimated at 17 million kWh. KESH is buying electricity directly from suppliers abroad at prices varying from 68.55 euro to 83 euro per megawatt-hour. The company has reportedly spent 50 million euro since December to import electricity. Every loan requested by the KEH corporation should be approved by the World Bank and such an approval has not yet been issued officially. Hence, Finance Minister said that only 20 out of a first request of $ 50 million have been allocated to cover extra expenses from increased imports. Bode said that the budget can handle the loan given its current situation at a considerable surplus. Reportedly, KESH requested financing from the private banking sector as well. The low assurance it can provide for the returning of the debt made the banks refuse this assistance.