Privatization of four HPPs postponed for September

TIRANA, July 9 – At a time when government had announced it would wait for the July privatizations before reviewing the budget, the Economy Ministry has surprisingly announced the bids submission on the privatization of four small and medium-sized hydropower plants has been postponed for a second time to next September.
In a statement, the Ministry of Economy, Trade and Energy (METE) announced the bids submission on the Bistrica I and Bistrica II HPPs in southern Albania scheduled for July 9 has been delayed for September 10. Meanwhile, bids on Ulez and Shkopet HPPs will be submitted on September 13. Although no official explanation is provided, sources says the decision was made to give the current qualified companies and newly interested companies more time to make their assessments.
Government hopes to collect around Euro 150 million from the sale of the four HPPs with a total capacity of 77 MW. All four HPPs are in good condition especially the southern Bistrica HPPs which have been upgraded under a Euro 30 million investment.
Another postponement is also expected in bids submission on the privatization of oil company Albpetrol scheduled for July 26. Government expects 300 million euros from the sale of Albpetrol’s assets and its exploration rights for a 25-year period.
Two Austrian companies and a French one have been qualified to submit bids on the privatization of four small and medium sized hydropower plants. Austria’s EVN and Verbund which have formed a joint venture to build a giant HPP in northern Albania are competing separately in this tender along with France’s CNR & CN’AIR.
Local media report Turkey’s Calik and Limak Enrgy, Italy’s Tozi Spa and an Austrian-Israeli consortium have also recently entered the race for the purchase of the four HPPs.
The hydropower plants (HPP), which government is selling, include the Ulez and Shkopet HPPs on the River Mat, in northern Albania, and two small HPPs on the Bistrica River, in southern Albania. The four HPPs are reported to have an installed power of 77 Megawatts, accounting for 5.3 percent of hydro electricity produced by state run Power Corporation KESH.
The hydro power plants of Ul캠and Shkopet, built in 1957 in a cascade sequence on the Mat River in northern Albania, carried the names Karl Marx and Frederick Engels under communist rule.
Ulez has a capacity of 25.2 MW with yearly generation of 110 GWh. Operating downstream from Ulez since 1963, Shkopet has a total capacity of 24 MW and generates 90 GWh annually.
The Bistrica 1 and Bistrica 2 have been in operation since 1963 and 1965 in the southern area of Sarande on the border with Greece. Bistrica 1 has a theoretical capacity of 22.5 MW for an average yearly generation of 135 GWh.
Bistrica 2 has an installed capacity of 5 MW and the average yearly generation amounts to 36 GWh. The electrical and mechanical equipment of both Bistrica 1 and Bistrica 2 have been rehabilitated by Germany’s Siemens thanks to German funding.