📋 Tender Overview
Location: Albania
Project number: 55236
Business sector: Energy
Notice type: State
EBRD Finance Summary: EUR 81,500,000.00
Total Project Cost: EUR 81,500,000.00
Project Description
A sovereign-guaranteed loan of up to EUR 81.5 million to be provided to Operatori i Shperndarjes se Energjise Elektrike ("OSHEE"), the state-owned distribution operator and retail supplier of Albania. The loan proceeds themselves will be used to refinance and lengthen the tenors of short term sovereign guaranteed overdrafts which OSHEE has entered into with commercial banks on an emergency basis and require annual reapproval. The loans were necessary to fund electricity imports at the time of energy crises.
Project Objectives
The project will enable the restructuring of OSHEE's balance sheet giving it greater control over its financial situation, and indirectly fund crucial green capital expenditures. The EBRD investment will be conditioned upon an agreed plan for a corporate program of reforms of which will have a significant impact on the development, management, and operational efficiency of OSHEE and by extension, the power sector in Albania.
Transition Impact
ETI score: 69
The expected transition impact of the Project is derived from the Resilient and Inclusive qualities. Financial resilience shall be enabled through the restructuring of the financial position of the company, while policy work shall enable more resilient distribution grid development, and inclusive development of necessary skills in the sector.
TC engagements include: (i) aligning the Albanian Distribution Code, a key piece of secondary legislation for energy system operations, with international best practices and commitments under the Energy Community Treaty and EU accession process; (ii) improving long-term network investment planning to support RES penetration; (iii) establishing a Sector Skills Council in Energy to identify market skill needs and facilitate dialogue between companies, government, and education providers; and (iv) supporting the creation of an in-house Training Academy within OSHEE.
