Situation has been worse since the privatization of OSSH, which passed its heavy debts to KESH. OSSH also owes KESH money for energy used this year.
TIRANA, Dec. 3 – Albania’s power producer, KESH, owes more than 200 million euro to different creditors, and faces a heavy financial burden as a result, Economy Minister Dritan Prifti said this week.
He added the situation has gotten worse especially after the privatization of OSSH, KESH’s former distribution arm, which passed its heavy debts to KESH.
“The problem is that all that debt has been transferred KESH before the privatization Šand that means 200 million euro that have to paid,” Mr. Prifti said.
KESH, a public company, has received government support for years, a practice the government wants to end.
The silver lining is that KESH is significantly increasing its profits this year thanks to favorable situation at Albania’s rivers, where most of KESH’s hydro-electric plants are located.
“The situation is very positive when it comes to the water levels,” Mr. Prifti said.
KESH has been exporting and storing energy in Kosovo, a move that hasn’t been heard of in recent years, which were plagued by energy crisis for Albania.
In the first 6 months of 2009 alone, KESH made 15 million euro selling electricity abroad.
KESH’s chief executive, Muharrem Stojku, said in a news conference this week that OSSH also owes the company money from unpaid bills by buying energy.
This situation puts KESH in further financial difficulties.
“It is about overdue obligations that start in July 1 this year, which have not been paid by OSSH,” Mr. Stojku said.
OSSH has said it too is owed money by state institutions. There is 13 billion leks in unpaid bills to the newly-private OSSH by the state, which owns KESH.
Mr. Stojku said that by early next year a new contract will be drafted with OSSH to solve the situation.
“By early 2010, we will compile a new contract, which will determine more precisely the obligations to all parties, but also will decide the penalty when the grace period expires on debts,” KESH’s head said.
