The European Bank for Reconstruction and Development (EBRD) is providing a loan of €218m for the modernisation of Korporata Elektroenergjitike Shqiptare (KESH), a state-owned electricity generator of Albania.
KESH caters to 70% of total domestic generation. This loan will be sovereign-guaranteed and offer the power generator long-term financing, which will reduce costs and boost liquidity.
The cash will also enable the firm to free up resources for maintenaning existing assets and undertake a modernisation programme. As part of a comprehensive reform package, the power generator will boost its operational efficiency and undertake development of a power exchange, regional integration, and tariff formation.
EBRD will offer technical aid from its own donor funds to help KESH implement climate resilience aspects in its daily operations.
EBRD's director and head of power and energy utilities Nandita Parshad said: "KESH has embarked on a path of comprehensive reform and the EBRD is pleased to support this effort. In particular, we are pleased to help the company move towards best international practices in corporate governance and climate resilience."
KESH's CEO Agron Hetoja said: "This is a very important moment for our company today. The EBRD loan will help strengthen our financing structure and allow us to become a leader of reform in the sector. The implementation of our ambitious plan will transform KESH for the benefit of our economy and customers."
EBRD has so far invested almost €1bn in around 70 projects in various sectors of the country.