Albania: OSHEE submitted request for a new loan from EBRD

, SEE Energy News

In order to obtain a new 70 million euros loan, Albanian electricity distribution system operator OSHEE recently submitted a formal request to the European Bank for Reconstruction and Development (EBRD).

The loan, which should be approved on 21 March, is intended to mitigate the negative consequences of the coronavirus pandemic, and to enable the continuation of investments, especially the project for the construction of substation in Tirana.

According to documents released by the EBRD, the loan will be divided into two tranches: 55 million euros will be used by OSHEE to alleviate liquidity problems caused by the coronavirus crisis, while the second tranche of 15 million euros will be used to finance the construction of a 110/20 kV substation in central Tirana.

OSHEE said that the proposed liquidity instrument will increase the sector’s resilience to systemic shocks resulting from the coronavirus crisis. The proposed instrument is structured to ensure that key payment and liquidity capacities are maintained and transferred to the OSHEE supply chain.

This is the second loan that OSHEE is taking from international financial institutions after the World Bank loan of 150 million dollars, which was intended for the recovery of the energy sector.