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IFC Helps Privatize Albania’s Electricity Distribution Company to Improve Power Supply
In Washington, D.C.:
Zibu Sibanda
Phone: 202 473 0605
E-mail: zsibanda@ifc.org
In Belgrade:
Slobodan Brkic
Phone: +381 11 3023 750
E-mail: sbrkic@ifc.org
Tirana, Albania, March 11, 2009—IFC,
a member of the World Bank Group, advised the government of Albania on
the privatization of the Electricity Distribution Company of Albania (OSSH),
which will help increase the supply of electricity in the country.
The government of Albania today signed
a contract for the sale of 76 percent of the shares of OSSH to Czech power
utility ČEZ. IFC advised the government on the unbundling of the company,
structuring the transaction, and executing an open, transparent and competitive
bidding process.
ČEZ was selected as the winning bidder
in October 2008. The decision was confirmed by the government after further
consultations. The value of the contract is €102 million. The privatization
demonstrates how transactions run professionally by a committed government
can attract serious investors despite the global financial crisis.
“We are sure that ČEZ will significantly
improve the supply of electricity in Albania, which will lead to increased
customer satisfaction” said Genc Ruli, Albania’s Minister of Economy,
Trade, and Energy. “The selection of ČEZ and the bidding process were
conducted according to international best practice. We are very satisfied
with our cooperation with IFC.”
Vladimír Schmalz, ČEZ’s director of
mergers and acquisitions, added: “ČEZ Group has long-term and deep experience
with distribution companies restructuring in the Czech Republic, Bulgaria
and Romania. We are happy to offer this know-how for the benefit of the
Albanian electricity distribution sector.”
Shahbaz Mavaddat, IFC Director for Southern
Europe and Central Asia, said, “The privatization of OSSH is the result
of an advisory effort to ensure a fair and transparent process, building
on our previous work with the government. The contract award to ČEZ is
another major milestone in improving the economic and social well-being
of Albania and its citizens.”
The Albanian government and IFC have
been working together to improve the country’s infrastructure since 2006,
drafting and approving the new Concession Law. Since then IFC has also
advised on the development of the Ashta hydropower plant, the first in
the region to follow best practice for open competitive bidding and for
addressing social and environmental concerns.
IFC’s advisory work on infrastructure
in Southeast Europe is part of a program jointly funded by the governments
of Austria, Italy, the Netherlands, Norway, Switzerland, and the United
States. A portion of the project’s costs was also financed by DEVCO, a
multi-donor facility established by IFC and the
United Kingdom’s Department for International
Development.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About CEZ
CEZ is the leading Central European
utility, with almost 7 million customers and a generation portfolio of
more than 14,300 megawatts of installed capacity in nuclear, coal, or hydro
power plants. CEZ Group ranks among the top 10 largest utility companies
in Europe. Apart from its home base in the Czech Republic, CEZ Group is
also active in more than 10 countries in Central and Southeastern Europe.
For more information, visit www.cez.cz.
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