HPP sale to Tirana Municipality sparks debates

TIRANA, Oct. 24 – Majority MPs approved this week in Parliament the sale of the Lanabregas small hydropower plant to the Tirana Municipality for Euro 15 mln, a transaction between two state institutions which the opposition said would help government at a time when public debt is at its legal limit of 60 percent of the GDP and borrowing has become difficult.
Opposition Socialist Party experts have denounced the purchase of a small hydropower plant by Tirana Water Supply Directorate under a loan as an illegal financial manoeuvre between a state-owned institution managed by Tirana Municipality and a state-owned asset such as the Lanabregas HPP.
Erion Brace, an opposition Socialist Party MP says the operation is similar to the purchase of state-owned Dajti Hotel by the Bank of Albania for 30 million euros three years ago in order to inject money into cash-strapped state budget.
However, Tirana’s water supply and sewerage company said it bought the state-owned Lanabregas hydropower plant for Euro 15 million in an effort to reduce its power costs.
“The Tirana Water Supply and Sewerage is the only company in Albania and the first to make such a purchase which will help meet its electricity needs in all resources and pumping stations, at the Bovilla plant,” said Sahit Dollapi, the company’s director.
The purchase secured through a loan will also help the company provide uninterrupted water supply as power expenditure won’t be included in calculating consumer prices.