Albania – Power Recovery Project (English). World Bank
Latest Project Documents September 8, 2014

The Power Recovery Project of Albania has an
objective to improve reliability of power supply and financial viability of the
power sector. This proposed project consists of four components:

i) short-term complementary power import support;

ii) upgrading distribution infrastructure,

iii) transmission meter/data center upgrade; and

iv) supporting power sector reforms and project
implementation.

The first component will support KESh/WPS with up
to US$ 30 million to purchase short term complementary power imports to meet
KESh/WPS’ power supply obligations.

The second component will support GoA’s and Distribution Company’s plan to reduce distribution losses, improve cash
collection and reliability of power supply.

Component three will support OST to:

i) providing power meters and upgrading a data
center; and,

ii) supplying and installing an IT system for the
data center and providing technical assistance for developing procedures for
the establishment of a market platform for independent power producers and some
eligible customers, among others.

Finally, component four will support priority power
sector reforms to facilitate the recovery of the power sector and improve the
performance of the distribution company through provision of management and technical
advisory services
.

The Project draws extensively upon the lessons
learned from similar World Bank engagements worldwide and in Albania. The
following key lessons have been reflected in the project design;

(i) the need for upfront political commitment, and will, in enforcing payment discipline and penalization, under the existing judicial framework, of electricity
theft;

(ii) complementing project design and monitoring
around higher policy actions through the DPL series, focusing on structural
changes in the sector;

(ii) designing implementation and monitoring of
social outreach programs targeting electricity consumers and key stakeholders;

(iii) coordination with inter-ministerial task
forces responsible for supporting the loss reduction program and ongoing
IFIs/donor support programs; and

(iv) strong analytical diagnosis underpinning the
operation.

Still, heavy upfront implementation preparation and
supervision of this operation will be required, together with periodic
interaction with donors and IFIs involved in the sector.