Germany, the EU and the Albanian Government signed joint agreements today for the rehabilitation of the Fierza Hydropower Plant, one of the key energy sources of Albania. Minister of Finance and Economy Ms. Delina Ibrahimaj, KESH General Director Mr. Ergys Verdho and Ms. Brit Horschke, KfW Country Director in Albania representing German Development Bank (KfW) signed loan and grants agreements for the rehabilitation of Fierza, which includes a EUR 40 million loan and a EUR 2 million grant provided by the German Federal Government through KfW Development Bank, and a grant of EUR 8.35 million from the EU provided through the Western Balkans Investment Framework (WBIF).
The event was attended by the Minister of Infrastructure and Energy Ms. Balluku, European Union Ambassador in Albania Mr. Luigi Soreca and German Ambassador in Albania Mr. Peter Zingraf.
The project is one of the Albanian flagship projects selected in the EU Economic Investment Plan for the Western Balkans, bearing national and regional strategic importance. It will sustain one of the most important energy sources of Albania, which counts for 22% of the overall domestic production, and contribute to the regional stabilisation of power supply.
The project aims to ensure a long-term, reliable and climate-friendly energy provision by expanding the productive lifetime of HPP Fierza by at least 30 years and by increasing its efficiency and thus capacity by at least 10%. This will contribute to a decrease of costly electricity imports and lead in addition to CO2 savings. Fierza HPP is administered by KESH which is the main domestic electricity producer with around 75% of the whole domestic production in Albania.
Background:
In Albania, KfW is responsible for the implementation of German Financial Cooperation projects. KfW provides grant aid and concessional loans for key investments and project-related consultancy services.
German cooperation with Albania started in 1988. Since then, the German Government has committed more than one billion Euro for development projects and programs. The energy sector is a priority area within the scope of German Financial Cooperation with Albania, with more than 501 million EUR committed since 1988.
The European Union is Albania’s strongest foreign partner, providing over EUR 100 million annually in grant assistance to support the Albanian people and help Albania adopt and implement key political, institutional, social and economic reforms to comply with EU values and to progressively align with its rules.
The WBIF supports socio-economic development and EU accession across the Western Balkans through the provision of finance and technical assistance for strategic investments. It is a joint initiative of the EU, financial institutions, bilateral donors and the governments of the Western Balkans launched in December 2009.
