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Albanian parliament approves loan agreement with German KfW for power link to Kosovo.

February 16, 2014

The Albanian parliament approved on Feb 13 a EUR 42mn loan agreement the government signed with German Development Bank (KfW) to finance a project for the construction of a 400 KV transmission link with neighbouring Kosovo, ATA news agency reported. Albania is due to repay the loan in 18 instalments 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.

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Source: IntelliNews - Weekly Reports

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