3Power Energy Group, a global group that develops and operates sustainable energy projects in various sectors such as solar, wind and hydro power sectors, has entered into a frame agreement to purchase 75% of concession rights for a 127.6 MW hydroelectric power plant in Albania. The agreement was formed with an investment group based in Albania.
Hydroelectric power projects have become a strong industry in Albania. Major financial institutions in the state favor financing of hydroelectric power projects.
Albania has rich water resources and the hydro project is located on the Shala River. The country has a high demand for electricity in both export and domestic markets.
A BOT Concession Agreement was made with the Albanian Ministry of Economy, Trade & Energy which was also approved by the Council of Ministers Decision of Republic of Albania.
The company’s partners in Albania have performed certain development work. After finalization of the definitive acquisition agreement, the next stages, including detailed design of the project, bankable study and structuring of finance will be performed. The investment cost for the project is estimated at approximately US $180 million and the market value of the concession is around US $20 million. 3P is planning for private placements and intends to use the proceeds for further project equity and development costs. The Shala River project is expected to be connected to the grid in 2015.
The finalization of the acquisition will help the company in acquiring more projects in renewable energy. 3Power Energy is continuing its efforts to complete its projects and also get more projects in Latin America and Europe in solar, wind and hydroelectric energy sectors.