Energy Recovery Project Might Be Revised

The World Bank estimates that the "Energy Sector Recovery Project" has brought significant progress year after year since its implementation but 2017 seems to have hindered the achievement of final targets. In a recent project review report, Bank experts noted that last year's high import situation hampered the situation for public companies as imports grew by Euro 120 million more than in 2016, which put under pressure the finances of the sector, Monitor magazine said Monday referring to World Bank report. The document said that Albanian energy sector is again under a financial pressure created by the combination of: a drop in the amount of precipitation that has led to imports in 2017, with a 120 million euro increase compared to 2016, the capital expenditure program of the OSHEE distribution company did not yield the result related to the losses, diverting 28 percent from 26 and 22 percent in 2016 and 2017, imposing a state-incapable financial obligation on KESH. Therefore, it said that it is likely that, despite having a revitalized commitment to achieve the loss reduction program, one of the key targets of the project's objectives to cut losses or revitalize finances won't be achieved on the agreed closing date. "This demands concrete actions by the government and other implementing agencies to upgrade the financial recovery plan and address enforcement impairs, and the bank will closely provide the necessary support for implementation," the bank said. On the other hand, it estimated that the accomplishments made are numerous compared to the initial situation, starting from reducing the losses to the completion of the legal framework according to the respective directives. "Reduction of sector dependence on government guarantees, KESH restructuring agreement with a 218m-euro loan with EBRD support, introduction of updated energy law under the 3rd Energy Package including the development of a commercial market in the form of a Stock Exchange for Sale and Balance. These are the most visible achievements of each energy system over the last three years," World Bank declared.

Source : Albanian Daily News