KESH to contract foreign company for Vlora Thermal Power Plant

TIRANA, August 2 – The Albanian Power Corporation (KESH) says it will hold an international tender next September to select a foreign company to operate and maintain the newly build thermal power plant (TPP) in the southern coastal district of Vlora.
KESH director Engjell Zaqaj has told daily Panorama that a foreign company will be selected to offer the service until the end of 2012 for around 3.1 million euros.
According to the new KESH director, the operation of the TPP has not been necessary until now because of the favourable situation in the country’s hydropower plants. KESH says it will contract a foreign company because of Albania’s inexperience in managing thermal power plants.
Data show the Albania Power Corporation managed to collect around 75 million euros from electricity exports during the first half of this year because of heavy rains improving the situation in the country’s hydropower plants which produce more than 90 percent of the country’s energy.
The newly built thermal power plant in the southern city port of Vlora has been ready to produce electricity since May 20, 2010, according to KESH.
Experts have often criticized the high cost of electricity produced by the Vlora power plant which is 13 lek per kWh, 5 lek more than the cost of imported electricity.
The head of the Energy Regulatory Entity (ERE), Bujar Nepravishta said earlier the power plant cannot be put to work if the energy it produces has a very high cost. Lack of natural gas pipelines makes its operation on diesel very expensive, said Nepravishta.
The construction of the thermal power plant is Albania’s biggest investment in electricity production after nearly three decades.
The new 97 MW, 112 million dollars low-sulphur distillate oil fuelled power plant is located at a six-hectare site about six kilometers north of Vlora. The project was supported by a 25 million credit from the World Bank’s International Development Association, USD 37.5 million from the European Bank for Reconstruction and Development, USD 37.5 million from the European Investment Bank, and USD 12.6 million from KESH.
The construction of the thermal power plant, which started in August 2007, was opposed by local NGOs because of alleged pollution and damage to the tourism industry.