The European Bank for Reconstruction and Development (EBRD) is providing a €45.75 million sovereign loan to Albania’s state-owned energy company, Operatori i Shperndarjes se Energjise Elektrike (OSHEE). This loan will be used to restructure part of the €81.5 million in short-term loans that OSHEE secured from commercial banks in late 2021 to support electricity imports during the global energy price surge. The EBRD’s involvement will help convert these short-term loans into a more sustainable long-term financing arrangement, alongside existing commercial lenders. This restructuring will unlock capital for green investments, which are critical to OSHEE’s modernization efforts.
As part of the initiative, OSHEE has pledged to invest up to €45 million over the next four years to strengthen its distribution grid, improve stability, facilitate the integration of new renewable energy sources, and reduce network losses. Beyond financial support, the project will also provide technical assistance to enhance the capabilities of OSHEE’s training academy, improving employee expertise and long-term investment planning for the network.
The financing agreements were signed by EBRD Vice President Matteo Patrone, Albania’s Minister of Finance and EBRD Governor Petrit Malaj, and OSHEE Administrator Enea Karakaci during a visit by Mr. Patrone to Albania. Mr. Patrone emphasized the importance of the project, stating, “We are delighted to support OSHEE’s modernization and sustainability goals. By unlocking capital for green investments, we are not only enhancing the company’s infrastructure but also paving the way for a more stable, resilient, and sustainable energy future for both the company and the citizens of Albania.”
Mr. Malaj highlighted the advantages of the transaction, noting that refinancing the current short-term loans into long-term loans from the EBRD will allow OSHEE to repay the principal in manageable instalments, creating a smoother amortization profile and reducing future debt refinancing risks. Additionally, it offers more favorable financial terms, ultimately lowering the total cost of the loan.
Mr. Karakaci underscored the significance of the project, stating, “This project is crucial for OSHEE and the Albanian energy sector. It will allow us to continue enhancing and modernizing our services, improving reliability, and ultimately providing stable energy at affordable prices to our customers.”
The EBRD has been a key institutional investor in Albania, having invested over €2.2 billion in 159 projects across the country.
