Exclusive: EBRD approves Komani HPP Dam Safety Upgrade

The EBRD is considering providing a €12.7 million sovereign guaranteed loan to Korporata Elektroenergjitike Shqiptare Sh.a (KESH) to support the company’s investment priorities at the Komani hydropower dam. 
The proceeds of the EBRD’s senior loan will finance part of the urgent investment measures at KESH, aimed at strengthening of the safety of dams at the Drin and Mat River Cascades. The hydropower plants located alongside these cascades generate 95 per cent of the entire Albanian electricity production. 
The overall investment programme is co-financed by the World Bank (WB), Swiss State Secretariat for Economic Affairs (SECO) and Kreditanstalt für Wiederaufbau (KfW), which are providing concessionary financing or grants. 
Transition Impact
The proposed project is complemented by technical assistance which will facilitate the implementation of a new tariff methodology in Albania, strengthen the capacities of KESH’s dam safety department and the Albanian Commission of Large Dams (ACLD), establish a modern water alarm system and an Emergency Preparedness Plan for the Drin and Mat River cascades. 
The Client
KESH, the Albanian Power Company responsible for generation of electricity.
EBRD Finance
Sovereign guaranteed loan of €12.7 million.
Civil works will be co-financed with the WB, SECO and KfW. Supervision consultancy services will be financed by the WB.
Project Cost
Estimated €65.7 million.
Total cost excluding taxes and duties, includes €53 million parallel financing in the form of grants and concessionary financing from WB, SECO and KfW.
Environmental Impact
Remedial works in the area of the reservoir and at the toe of the dam could cause sedimentation in the reservoir and the downstream river. The works will also present challenges to the occupational health and safety for the workers.  In addition, there are community health and safety risks downstream, which will remain until the remedial works are completed.  The Environmental and social due diligence will evaluate the material risks and devise appropriate measures to manage/mitigate risks. Throughout the due diligence and remedial works, the Bank will work with the Client to design and implement an appropriate program of stakeholder engagement.
Technical Cooperation
A TC Framework in the amount of up to € 1 million to help the Albanian power sector strengthen its capacity in the areas of concession tender planning and execution, optimisation of cascades management, permitting/licensing, and sector regulatory development/ market design.

Procurement or tendering opportunities
Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

energjia.al, 18.10.2011