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.

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