World Bank announced the approval of a $150 ml fund for the Power Recovery Project in Albania, aimed at supporting reforms in the energy sector regarding the financial viability of it. According to World Bank Country Manager for Albania, Tahseen Sayed, this project will help in the implementation of many predicted reforms by the Albanian government as well as to increase investments in this sector. The fund will also assist in improving the energy power collection and to set up EU standards. The project will support the sector recovery plan to address longstanding technical and financial issues, added Sayed.
The bad performance of this sector has come due to several causes but the most negative episode was the bad management of the Distribution System Power by CEZ company. This has brought a large unfunded deficit of circa $550 ml and large network losses of energy, due to non-payment of electricity bills by consumers and energy theft.
The WB project will provide short-term complementary power import support, support in the distribution infrastructure and the transmission meter as well as assistance in the implementation of reforms by the government. Since Albania joined the World Bank in 1991, the Bank has financed a total of 83 projects with over US$1.95 billion of IDA credits and grants and IBRD loans to the country.
News source: World Bank
Photo credits: Wikimedia / Victorgrigas
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