Parliament approves OSSH sale to Czech’s CEZ

TIRANA, April 27 – In the Albanian parliament’s session last week, in which the opposition lawmakers were not present, the Albanian parliament formally approved the offer for the Czech energy group to buy the Albanian power distribution company OSSH for 102 million Euros.
The parliament approved the sale of 76 percent of the OSSH to Czech power company CEZ, which has also pledged to invest 200 million Euros in the next four years, thus raising hopes among Albanians that there will be an end to the chronic power shortages.
The Czech company will take over the Albanian power distributor around mid-May or later.
In an effort to end the difficult negotiations on the takeover, Albania has also agreed to write off some 60 million Euros of its debts.
CEZ’s investment will serve to reduce thefts and losses of power of up to 17 percent of current levels within five years and lift revenues by one percent annually.
Albania suffers power shortages because of rising demand, an ailing grid and theft.
Electricity prices are not expected to rise in 2009 but gradual increases are expected in the coming years.
More than 90 percent of Albania’s domestically-produced electricity is generated by hydro-power plants, which are badly affected by droughts.