Albania's parliamentary committees on economy and finances, trade and environment and on legal affairs have approved the EUR 42mn loan agreement, signed between the Albanian government and German Development Bank (KfW), the parliament's press office informed in a statement. The loan which will be used to finance a project for the construction of 400 KV transmission link with neighbouring Kosovo. Albania is due to repay the loan in 18 installments by end-2015.
Albania and Kosovo agreed on the EUR 75mn project in December 2013. The power link will enable Albania and Kosovo power grids to work together as one single distribution system providing mutual benefits for the two countries. It will allow Albania and Kosovo to exchange electricity to maximise the use of Albania's hydro power plants in winter and Kosovo's coal-fired plants in drier weather. Albania is strongly dependent on electricity generated by hydro-power plants, while Kosovo produces more than 98% of its power using coal.
Albania has already built a 400-kV power line between Tirana and the Montenegrin capital of Podgorica.