Government is expected to use the Euro 110 million acquired by the sale of the hydropower plants to pay off part of accumulated debts it owes to private companies for finished public works
TIRANA, Feb. 12 – The Energy Ministry announced this week it has signed the contract on the privatization of four small and medium-sized hydropower plants with Turkey’s Kurum International paving the way to its approval by government and finally Parliament. The signing of the contract was delayed because of accumulated VAT refunds worth Euro 8 million, the Albanian government owed to Kurum, also recognized under a government decision. Apart from deducting unreturned VAT refunds, the Albanian government will also continue to cover payments on a loan for the renovation of the two plants on the Bistrica River, southern Albania.
Turkey’s Kurum International, which in Albania already operates the Elbasan steel plant, offered a total of Euro 109.5 million on the privatization of four small and medium sized hydropower plants, being the highest bidder. In an international tender held on December 21, Kurum International offered Euro 52 million on the purchase of the Bistrica 1 and Bistrica 2 HPPs in southern Albania with a capacity of 27.5 MW and Euro 57.5 million on the Ulez and Shkopet HPPs which have an installed capacity of 49.2 MW.
For Kurum, one of the country’s largest electricity consumers, the purchase of the HPPs will considerably lower its power costs as a new law in force since the beginning of 2012 stripped big electricity consumers to have power supply at regulated tariffs from the local distribution operator.
Concerned over the sale of four small and medium-sized hydropower plants, the opposition Socialist Party has filed a lawsuit against their privatization claiming that Euro 100 million has been caused in damage. Speaking after filing a lawsuit with the Tirana Prosecutor’s Office this week, opposition Socialist Party MP Eduard Shalsi said the sale of the Ulez, Shkopet, and Bistrica hydropower plants at euro 3 million per MW comes only few months after government sold the Lanabregas HPP at a price of Euro 3 million per MW to the Tirana Municipality to meet power needs for its water supply and sewerage system. The opposition has threatened it will cancel the privatizations as soon as it comes to power.
Government is expected to use the Euro 100 million acquired by the sale of the hydropower plants to pay off part of accumulated debts it owes to private companies for finished public works especially the construction sector.
