World Bank, $150 million for energy

60% of the loan will be invested in the distribution system. According to the government, this is the most damaged part of the sector, due to the lack of investments for many years. The rest will go for the Energy Corporation and the Distribution Operator.

The Minister of Energy, Damian Gjiknuri, said tat these investments aim to make the sector healthier, to liberalize the market and to turn the energy system into a lucrative sector for the Albanian economy.

“A successful implementation of the project aims to reduce the total losses from 40% to 17% in 2019. We want to increase the encasing with from 84% that it is today, to 93% by 2019. We want to return energy from a sector plunged in debts that by 2018 may accumulate up to $800 million of debt, to financially stable sector starting by 2018”, Gjiknuri declared.

“The $150 million will help the government for a mid-term period and will return the citizens’ trust to a sector that is key for the exploitation of necessary resources in the Albanian energy sector. The establishing of this sector is necessary for creating an attractive business environment for investors; a sector that creates jobs for the generations to come”, says Elen Goldstein, Director for Southeastern Europe at the World Bank.

The government says that together with the World Bank loan, they will finance $125 million for the energy system until 2020.

Loan distribution

Distribution System $93 mln
Transmission  System $20 mln
Support for the  Energy Import $30 mln
Supporting Reforms $7 mln

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