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The Albanian government has signed a 100 million euro loan agreement with KfW and the French development agency AFD for energy sector reforms, BalkanEngineer.com has learned from Balkangreennews.com. The documents were signed by Deputy Prime Minister and Minister of Infrastructure and Energy Belinda Baluku, Minister of Finance and Economy Delina Ibrahimaj, French Ambassador to Albania Elisabeth Barsak, KfW Director for Southeast Europe and Turkey Klaus Müller and AFD Director for the Western Balkans region Dominique Hautberg. The total amount of the loan amounts to EUR 100 million.
According to AFD, the loan has been made possible by the significant progress made by Albania in implementing energy sector reforms through the focused efforts of all relevant institutions in the sector - the Ministry of Infrastructure and Energy, the Ministry of Finance and Economy, the Energy Regulatory Authority (ERE), the energy company KESH, the Distribution System Operator (DSO) OSHEE, the Transmission System Operator (TSO) OST and the Albanian Power Exchange (ALPEX).
The loan is accompanied by technical assistance grants of €1.5 million from the German government, provided by KfW, and €1.4 million from AFD, provided by Expertise France. The overall objective of the policy-based loan is to contribute to improving the sustainability of the Albanian electricity sector by supporting sector reforms and diversifying the electricity mix towards renewable energy.
The programme is structured around four specific objectives. The first is a healthier financial position and improved financial sustainability of operators in the sector. The second is the creation of an electricity market and a gradual process of tariff deregulation aimed at improving the transparency of trade. The diversification of the electricity mix and the development of renewable energy are the third objective, while a stronger legislative and regulatory framework in the sector is the fourth objective.
Photo source: canva.com