Albania: Power Sector Generation And Restructuring Project

CREDIT AMOUNT: IDA US$25 Million
TERMS: Grace period = 10 years; Maturity = 20 years
PROJECT DESCRIPTION:The project aims to improve power system performance through investments to increase domestic thermal generation, and measures to implement sector reforms and institutional strengthening. Albania has been facing a major electricity crisis since the summer of 2000. Recognizing the magnitude of this crisis in the power sector and its serious implications, the Government developed an Action Plan to tackle the critical issues, including measures to reduce electricity losses, improve collections, reduce demand and increase tariffs, as well as other wide-ranging measures to urgently improve the performance of the sector. The total project cost is US$112.66 million, and includes US$37.5 million each from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) and an additional US$12.66 million contributed by the Albanian Power Corporation (KESH).  For more information, please call Miriam Van Dyck at (202) 458-2931 or e-mail mvandyck@worldbank.org.  For project information documents, please visit: http://web.worldbank.org/external/projects/main?pagePK=104231&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P077526