KESH gets a 16 million Euro EBRD loan to improve transmission network

TIRANA, Oct. 10 – KESH or the Albanian Electro-Energy Corporation got Tuesday a 16 million euro loan from the European Bank for Reconstruction and Development to improve its outdated transmission technology. The soft 12-year loan, with a three-year grace period, will be used to replace old transmission technology in the substation in five areas in the north, according to a statement from the Finance Ministry. That is part of a $52.14 million project co-funded from the World Bank’s International Development Association and the KESH itself. Albania has suffered chronic electricity problems during the post-communist period since 1990 due to chronic nonpayment, poor management, an outdated distribution system and lack of money. Ninety percent of the country’s electricity is produced in the north from hydroelectric plants that suffer from lack of rain and work at less than half capacity due to outdated technology. The EBRD has invested some 300 million in post-communist Albania, one-third in the power system.