€30 million to improve energy security in Kosovo and the region
Pristina, October 15, 2014/Independent Balkan News Agency
European Bank for Reconstruction and Development (EBRD) is supporting improved energy security in the Western Balkans with its first investment in Kosovo’s power sector, which aims to improve the stability and reliability of the country’s power network by reducing inefficiencies and bottlenecks in transmission.
The €30 million corporate loan to Kosovo Transmission, System and Market Operator j.s.c. (KOSTT) will enable the company to finance the construction, rehabilitation, and placing into operation of selected substations, transformers, and electricity transmission lines. This will strengthen Kosovo’s power grid and make it more robust, which is essential for the population and the economy as the country is still frequently affected by power shortages.
The financing will also help KOSTT to meet key requirements for joining the organisation of European Network of Transmission System Operators for Electricity and improve regional integration in the electricity market, helping Kosovo to fulfil its potential of becoming a major energy transit hub in the Western Balkans.
Technical cooperation funds, provided by the government of Norway, supported social and environmental due diligence.
Holger Muent, EBRD Director, Western Balkans, said: “We are delighted to finance this important transmission development project that will represent the Bank’s first major investment in the Kosovo power sector. This project will bring not only national but also regional benefits in terms of improving energy security. It is a first step towards building a strong partnership between the EBRD and KOSTT.”
“We welcome our cooperation with the EBRD. This is our first credit facility with the EBRD and the first non-sovereign guaranteed loan to KOSTT. We hope that this excellent cooperation will serve as a demonstration of KOSTT’s capabilities to both domestic and international financiers,” remarked Naim Bejtullahu, CEO of KOSTT.
Since 1999, the EBRD has invested €89 million in Kosovo, for 37 projects across various sectors. /ibna/