New underground substation in Tirana, 22.5 million euro loan from EBRD - Malaj: Investment, part of the vision for a modern energy system
Population growth, urban development and new investments in the capital have increased the demand for electricity. To meet this need, OSHEE Group plans to build a new substation in the center of Tirana.
During his speech in Parliament, Minister of Finance Petrit Malaj stated that the project will be financed by the European Bank for Reconstruction and Development, through a loan worth 22.5 million euros, for which the Albanian government will provide state guarantees.
“The ratification of the guarantee agreement between the Republic of Albania and the European Bank for Reconstruction and Development, more specifically supports the financing of the project for the construction of the new 110/20 kV substation in the center of Tirana by the Electricity Distribution Operator/OSHEE Group. This investment is part of the government's vision for building a modern, intelligent and sustainable energy system, capable of supporting economic development and rapid urbanization. Through the implementation of this project, we increase the security of energy supply, improve the quality of the network, and prepare the system for the challenges of the next decade.”
The loan will have a repayment term of 10 years, while the interest rate will be variable, consisting of the six-month Euribor and a margin of 1%.
"Thanks to the reforms and investments undertaken, network losses have been reduced from around 45% (2013) to 16.9% (2025). This is important progress, but not sufficient, which is precisely why we must continue with investments in the modernization and digitalization of the distribution network. The investment we are discussing in this session also serves this commitment. As for the commitment in the financial aspect, the agreement is built on favorable terms, both for OSHEE Group and for the Albanian government. The loan is foreseen at a value of 22.5 million euros, with a repayment term of 10 years, while the interest rate is variable (6-month Euribor and a margin of 1%)."
Minister Malaj emphasized that this project will guarantee a more secure supply for Tirana, increase the flexibility of the network, support the integration of renewable energy and further bring the Albanian system closer to European Union standards.
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