3Power Energy has entered into a frame agreement with an Albanian-based investment group to acquire 75% of the concession rights to develop a hydroelectric power project on the Shala River in the country.

The build-operate-transfer concession agreement for the 127.6MW project has been signed with the Ministry of Economy, Trade & Energy of the Republic of Albania and approved with council of ministers decision the country.

According to the company, preliminary work demonstrates an evidence of project feasibility and substantial investment returns.

Upon successful closure of the deal, 3Power will undertake the project design, finance structuring and a bankable study.

The concession market value is around $20m and the project estimated investment cost is $180m.

The facility is scheduled for grid connection in 2015.

Further development cost and project equity will be provided by 3P, using proceeds from private placements planned by the company.

3Power Energy continues its efforts to secure and complete its pipeline of projects in Europe and Latin America, aiming to create a regionally diversified portfolio of projects in the Solar, Hydroelectric and wind energy sectors.

The closing of this acquisition will pave the way to acquire more projects, strengthening the company market position in the renewable energy sector.