Albania Distribution Privatization Program
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Duration: August 2007-August 2009
Partners: Advanced Engineering Associates International, Inc. (AEAI)
Geographic Focus: National
Program Description:
The Albanian electric power sector has suffered from the lack of investment, poor maintenance, and limited capacity for imports. These problems are exacerbated by the inefficient management of the state-owned power utility (KESH), which is in a desperate financial situation, unable to reduce losses and improve collections. The resulting lack of a reliable and adequate supply of electricity has adversely affected Albania's economic growth. To address this prolonged energy crisis, the Government of Albania, with strong support from the donors, has decided to move forward with the privatization of KESH's distribution assets. USAID’s Distribution and Privatization Support Program will assist the GoA, particularly the Ministry of Economy, Trade, and Energy, in this effort by developing the necessary legal, regulatory policy, and market frameworks for privatization and building the capacity of the Electricity Regulatory Entity (ERE) to serve as a transparent regulatory body independent of state control.
The Albanian electric power sector has suffered from the lack of investment, poor maintenance, and limited capacity for imports. These problems are exacerbated by the inefficient management of the state-owned power utility (KESH), which is in a desperate financial situation, unable to reduce losses and improve collections. The resulting lack of a reliable and adequate supply of electricity has adversely affected Albania's economic growth. To address this prolonged energy crisis, the Government of Albania, with strong support from the donors, has decided to move forward with the privatization of KESH's distribution assets. USAID’s Distribution and Privatization Support Program will assist the GoA, particularly the Ministry of Economy, Trade, and Energy, in this effort by developing the necessary legal, regulatory policy, and market frameworks for privatization and building the capacity of the Electricity Regulatory Entity (ERE) to serve as a transparent regulatory body independent of state control.