📋 Tender Overview
Project ID: 55982
Status: Approved
Location: Albania
Business Sector: Energy
Notice Type: State
Project Description
Up to EUR 22.5 million senior sovereign-guaranteed loan to Operatori i Shperndarjes se Energjise Elektrike ("OSHEE," the "Client," the "Company"), the state-owned electricity distribution and supply company in Albania. The loan proceeds will be used for investment purposes to finance the construction of the underground 110/20 kV substation in central Tirana. The original cost estimate for the substation of EUR 14.5 million, was based on a preliminary assessment. However, the final technical design, developed by a specialised external consultant, revealed an increase of ca. EUR 8 million. This increase was primarily attributable to inflationary pressures on raw material prices, enhanced project specifications, and the incorporation of final technical requirements.
Project Objectives
The project will enable OSHEE to replace an old electric substation, with a new and innovative underground substation. It will be the first underground substation to be implemented in Albania and the wider Western Balkans region. It will be the first digitally-operated substation of OSHEE. Full digitalisation is expected to improve operational efficiency, quality of supply and improve health and safety parameters. The project will incentivise OSHEE to accelerate transition to digital infrastructure and implement organisational programmes (including trainings) to support the swift implementation and transition to digital infrastructure.
Transition Impact
ETI score: 70
The expected transition impact of the Project is derived from the Green and Integrated qualities. Green transition quality is achieved by reducing technical losses in the power grid and protecting the substation from extreme weather events, corrosion and vandalism. The use of proceeds will support an electricity system where the grid emissions factor is below 100 gCO2e/kWh, which is the case in Albania due to its nearly 100% hydro-based power generation.
The Integrated quality is achived by introducing an innovative technology that improves the quality of the relevant infrastructure. By replacing an over-the-ground substation with an underground one, the project will utilise the loan proceeds to fund the modernisation of OSHEE's critical infrastructure, specifically targeting the improvement of system reliability and operational flexibility. This will enable OSHEE to achieve significant reductions in transmission losses, bringing its performance closer to international best practices.
Client Information
OPERATORI I SHPERNDARJES SE ENERGJISE ELEKTRIKE SH A
OSHEE is the 100% state-owned electricity distribution and retail supply company of Albania. OSHEE supplies all Albanian regulated customers and acts as the supplier of last resort for unregulated customers. OSHEE is responsible for the distribution network and acts as the offtaker of electricity produced by most
