Albania to use proceeds from privatisation to settle debt with local business.

By bne IntelliNews May 17, 2013

The Albanian government will use the proceeds from the privatisation of four hydro power plants to settle debts with local companies, local TV Albanianscreen reported, citing a statement of finance minister Ridvan Bode.

Steelmaker Kurum International purchased 100% of Ulez Shkopet that runs the Ulez and Shkopet plants and 100% of the Bistrica 1 (22.5MW) and the Bistrica 2 (5MW) hydro power plants for a combined price of EUR 109.5mn. However, the net proceeds from the deal will be lower (by some EUR 22mn), after the government agreed to refund VAT to the company.

Minister Bode confirmed, the first instalment worth some EUR 57mn has already been transferred by Kurum.

We note that, the four plans were spun off from state-owned power utility KESH in 2011 prior to their offering for sale as an independent entity. Kurum International is the local subsidiary of Turkish Kurum Holding. Kurum International is one of the biggest industrial investors in Albania.

Related Articles

Albanian opposition party splits after disastrous election performance

Members of Albania’s main opposition Democratic Party (DP) that have been excluded from the party by its leader Lulzim Basha plan to establish a new political movement, local media reported on ... more

Albania's new government to make drastic job cuts in public administration

The new Albanian cabinet plans to drastically slash the number of employees in the public administration to make it more efficient. Prime Minister Edi Rama recently ... more

Dozens of ethnic Greeks arrested in Albania's Himara

Tensions in Himara, a coastal city in southern Albania, have risen after dozens of members of the Greek minority in the area were detained. The arrests were reportedly made after residents were ... more