Albania: Concession for HPP Poçemit awarded to Turkish consortium

, SEE Energy News

Ministry of Energy published the results of the tender for hydro power plant Poçemit, one of the largest concessions in the energy sector in the previous several years.

Committee responsible for awarding concession for construction and use of hydro power plant Poçemit announced that the Turkish consortium Ayen Enerji Anonim Şirketi and Çinar-San Hafriyat Nakliyat Inşaat Turizm San Ve Tic won the tender, Ministry of Energy stated on its web site.

HPP Poçemit is one of the numerous projects from the communist era, its construction was planned on the cascades of the river Vjosë in south Albania.

The movements for the environmental protection oppose to granting the concession with the argument that the river Vjosë is of the great significance for the environment and that it can generate revenues through tourism development. The government claims that only two hydro power plants, Poçemit and Kalivac will be constructed on the river, while the rest will be declared a national park.

The government started tender in March but after the Turkish company got 8 bonus points, no other company was interested for the project.

HPP Poçemit should have installed capacity of 99.5 MW and annual generation of 305 million KWh. If constructed, Poçemit will be second largest concession after Devol project. Commercial value of energy generated in hydro power plant could reach 15 million dollars p.a., with the price of 5 cents per KWh.

The company that was awarded concession states that the construction will cost EUR 101 million. With the current electricity price, period for investment return is 7 to 10 years, and concession period is 35 years, transmits