KESH pays debts for HPPs
26/12/2012 00:00
Folk costumes of Rrajca dominate the fair of traditional Albanian products in Perrenjas 01/10 21:18
The loans taken for the rehabilitation of the four hydropower plants
that the government has set on sale will be paid by the Albanian Power
Corporation (KESH).
More than 23 million EUR in debts used as investments in the HPPs of Ulez, Shkopet and two others in Bistrica, will be paid by KESH.
The private company will take them without any obligations, although this money was used to rehabilitate the HPPs before privatization.
This is not the first time when the government sells public assets this way. The same scheme was used for the Distribution System Operator, now CEZ.
All DSO debts passed to KESH and the result in both cases is the same: profits went to the private and the losses are paid by the citizens through a financial ruin of KESH.
KESH will pay the debts and it will be unable to encase any of them, since now they go to the private sector that buys them.
The public tender held a few days ago by the Ministry of Economy showed that the highest offer for the four HPPs was around 109.5 million EUR.
More than 21% of the price is debt. Now that KESH will pay them with budget funds the price goes to 86.5 million EUR.
More than 1 million EUR for installed MWh, when a few months ago, the Lanabregas HPP with a 5 MW power, was sold to the Aqueduct for 15 million EUR, three times higher the price for each installed MW.
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