The World Bank and the Government of Albania successfully completed negotiations for a $150 million Power Reform and Recovery Project. Bank of Albania in Tirana announces through a press release that the proposed World Bank-assisted program will support Albania’s power sector reforms, particularly efforts to improve the reliability of the electricity and the viability of the sector.
"Among the most important reforms needed to boost economic growth and to restore fiscal balance in Albania are reliability and financial viability of the energy sector," Ellen Goldstein said, World Bank Director for South East Europe. "By resolving quickly and fair the disputes with the distribution company, makes possible for Albania to advance on these crucial reforms and carrying out much needed investment in the system."
The agreement reached recently between the Government of Albania and the Czech company, CEZ, sets a clear structure of ownership in the energy sector, which facilitates further information and investment. The program will bring significant improvements in electricity services to Albanians, many of whom pay their bills, while others do not pay, by consuming it illegally.
"The Projekti wich will be financed by the World Bank is the first step needed to assist the Government's efforts in improving the quality of service for customers, reducing losses in power distribution from the current level of 42%, to about 20% in 2018 and implementating priority reforms in the sector in line with EU legislation," Salvador Rivera said, Senior Program leader for the Energy Sector Recovery. "The program will also provide support in the short term to finance imports of energy during dry periods."
The just negotiated project will also support the reforms in management sector, institutional restructuring and the implementing a medium end long term plan on financial sustainability of the sector.