The Albanian government ended the disput with the Czech state-owned company, CEZ, after signing a settlement agreement. In May 2013, referring to the Energy Charter Treaty, CEZ announced an international arbitration dispute with Albania.
The disagreement between the Albanian government and CEZ started back in 2013 after the citizens’ claims for mismanagement of CEZ Shperndarje and accuses that the company had failed to secure electricity imports and to invest in the distribution network. After inspections at the company, the Albanian government revoked CEZ’s distribution license.
The agreement was signed under the supervision of the Secretariat of the Energy Community in Vienna.
“I consider the negotiated agreement a success, because we will receive funds significantly earlier, and we will not need to wait several years for results of the arbitration proceedings. The financial compensation will be guaranteed by a renowned European bank,” said Daniel Benes, CEZ CEO, and board chairman.
Based on the signed agreement, CEZ will receive a compensation of Euro95.5 million of receivables and transfer of shares in CEZ Shperndarje, apart from the first payment of Euro 4.5 million it received.
CEZ entered the Albanian market in 2009 when it bought 76 percent in CEZ Shperndarje for about Euro 102 million. Apart from Albania, even Bulgaria has withdrawn a CEZ’s license and fined the company.
News source: Ministry of Finances
Photo credits: Wikimedia / Studio Marvil
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Albania Solves Disputes with CEZ Company • IIA
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