EVN says it will remain active in Albania through its Ashta project with Austrian’s partner Verbund AG
TIRANA, March 19 – In a surprise move just before the expected start of works to built Albania’s biggest ever hydro energy project, Austria’s EVN has announced its withdrawal from the Devoll hydropower plant in South East Albania, and the sale of its 50 percent stake to its Norwegian joint venture partner Statkraf, remaining present in Albania only with its newly built Ashta HPP.
“EVN AG and Statkraft A.S. have reached an agreement regarding the sale of EVN AG’s 50 percent stake in Devoll Hydropower Sh.A. to Statkraft A.S,” says the Austrian energy giant in a statement without providing reasons for its withdrawal.
Devoll Hydropower, a Euro 950 million project, was set up as a 50/50 joint venture between EVN and Statkraft after the two companies won in 2009 a concession to build three hydropower plants on the Devoll River.
EVN said the sale of the stake in the project would cause a one-off negative effect of about 20 million euros ($26 million) on its operating result after tax and that it would remain active in Albania through its “Ashta” project with Austrian partner Verbund AG.
The sale of EVN AG’s stake in Devoll Hydropower Sh.A. to Statkraft A.S. remains subject to the Ministry of Energy’s consent to such sale, and an agreement between EVN AG, Statkraft A.S., Devoll Hydropower Sh.A. and the Ministry of Economy, Trade and Energy of Albania to amend the concession agreement, as well as the approval of such amendment to the concession agreement by the Parliament of Albania.
Prime Minister Sali Berisha had announced Austria’s EVN and Norway’s Statkraft would launch the construction of a hydropower cascade on the Devoll River in Albania early this year.
“Two giants of renewable energy in Europe and in the world, Norway’s Statkraft and Austria’s EVN, after several years of extraordinary work, after environmental and geological studies in all the trajectory of the Devoll River have decided to start construction works for the hydropower plants in the Devoll River. This will be the project of the centuries because it is build in around 50 kilometres of tunnels and what never dies is hydropower plants in tunnels. Work on this ambitious project will intensively start in 2013 and these two European giants are committed to finish the project in a short deadline of 5 to 6 years,” said Berisha in late 2012.
Last September, the Ashta hydropower plant, a Euro 200 million investment by Austria’s EVN and Verbund was made fully operational. The 48-MW run-of-river project, the fourth largest hydropower plant on the northern River Drin cascade and the biggest HPP project during the past 20 years, provides electricity for 100,000 Albanian households.
Devoll HPP
The Devoll hydropower project in Albania, has been through different stages of development since the concession agreement was ratified by the Albanian parliament in 2009. Tendering of the main construction contracts is currently ongoing, and the process to obtain all relevant permits and approvals from Albanian authorities is close to completion.
The transaction makes Statkraft the 100 percent owner of Devoll Hydropower ShA, and Statkraft will remain fully committed to the Devoll project.
“We regard Albania as an interesting country for hydropower investments, and we are pleased to have reached an agreement with EVN for the acquisition of their shares. We look forward to realizing the Devoll project, which will increase the generation of electricity in Albania by 20 percent,” says EVP International Hydropower in Statkraft, Oistein Andresen.
Economy Minister Edmond Haxhinasto assured later this week the hydropower plant on the Devoll Cascade will be built by the Norwegian company despite EVN’s withdrawal.
The Devoll hydropower project consists of 3 hydropower stations in the Devoll valley, with a total installed capacity of 278 MW. The build, own, operate and transfer (BOOT) concession agreement was ratified by the Albanian parliament in 2009.
The project was supposed to be implemented by the Devoll Hydropower (DHP) company – a 50/50 joint venture set up by the foreign investors. The project envisages building three hydropower plants and reservoirs – Banje, Kokel and Moglice with total installed capacity of 280MW. The new facilities will generate up to 800GWh of electricity per year and will boost Albania’s power output by some 20 percent. The DHP has already completed the first phase of the project, which included geological surveys, hydrological, topographical and seismic studies as well as an environmental and social impact assessment. The national committee for large dams approved last June the technical plan of the construction, which is a necessary step towards awarding the final construction permit. The Devoll cascade is the largest ever project carried out in Albania. According to earlier estimates, it will cost some Euro 950 million. The Albanian government has recently approved that 278 million lek (Euro 2 million) will be paid to property owners affected by the construction.
