WASHINGTON, May 5, 2009 - The World Bank’s Board of Executive Directors today approved the following project:  IBRD Partial Risk Guarantee (PRG): US$78 million TERMS: Maximum Term: 8 years Project Description:  The Privatization of the Power Distribution System Operator (OSSH) Project for Albania aims to facilitate the privatization of OSSH in the context of a new regulatory framework. The project will be considered successful if: 1) the transaction is closed and the strategic investor takes over OSSH; and 2) if the new regulatory framework is implemented as agreed for the period of the PRG coverage. Access to reliable electricity is a key driver of economic growth and a direct means of reducing poverty because it improves the productivity of households and enhances the delivery of social services. The successful privatization of electricity utilities, a key component of reforming energy markets, is therefore a priority for the governments of many developing countries and transition economies, as they seek to improve efficiency and reliability, and attract private investment in the sector. In the Bank's experience, a satisfactory privatization of power distribution utilities should precede efforts to attract private investment to other parts of the sector; as cash flows arise mostly from distribution.  Media Contact Jonathan Daly (202) 458-2624 jdaly1@worldbank.org  Michael Andrew Jones (202) 473-2588 mjones2@worldbank.org  For more project information, please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P112242 |
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