DRIN RIVER CASCADE REHABILITATION PROJECT (DRCRP)

1. Context Duration of the Current Phase 1994-2007 „ ’s energy generation capacities are 95% dependent on hydro power, mainly from Swiss Grant Contribution five important hydro power plants located at CHF 11’800’000.– the and Mat River in Northern Albania. One of the most important among them is the Location hydro power plant in , with an installed Hydro power Plant Fierza (Drin River) capacity of 4x125MW, built from 1971-1978 Project Partners and Beneficiaries with Chinese assistance. Although being the „ Albanian Power Corporation (KESH) backbone of Albania’s power sector, during „ Ministry of Finance, Albania the following years these hydro power plants „ VA TECH Hydro, Switzerland (Contractor) were poorly maintained, and suffered from an- „ Colenco Power Engineering (Consultant) tiquated sector policies and inefficient man-

Other Donors agement. „ European Bank for Reconstruction and Development (EBRD) „ In 1994-1995, the Government of Albania, the „ Cooperazione Italiana national electricity company KESH, and differ- „ Japan Bank for International Cooperation ent international financing institutions under (JBIC) the leadership of the EBRD, designed the „ Austrian Development Agency (ADA) DRCRP. The project was launched in late

Contacts 1996. „ State Secretariat for Economic Affairs (SECO) „ From 1997-2000, most project activities were Philipp Keller suspended due to the public unrest after the Programme Manager break down of the pyramid saving schemes in Infrastructure Financing Division Albania, and the pending electricity sector re- Effingerstrasse 1 forms. CH-3003 Bern, Switzerland Phone: +41 31 324 92 13 Fax: +41 31 324 09 65 E-mail: [email protected]

„ KESH Marialias Çelo Project Manager DRCRP Project Management Unit Blloku “Vasil Shanto” Tirana, Albania Phone/Fax: ++355 4 262 148 E-mail: [email protected]

Rruga Brigada e VIII p. 2/2/1 Phone +355 4 240102/3 www.swisscooperation-albania.ch Swiss Cooperation Office Tirana, Albania Fax +355 4 240103 [email protected]

2. Objectives 3. Activities

„ The aim of the DRCRP is to rehabilitate „ The supplier for this equipment has been se- the Albanian power generation system lected through public tendering and is VA and to ensure its sustainability in order TECH Hydro, Switzerland. to enable the country to cover its home demand and to export any excess „ SECO has mandated the specialised Swiss power. consultancy firm Colenco Power Engineering to supervise the project and support its im- „ In a liberalised European power market, plementation. This includes the negotiation Albania could have an interesting posi- of claims between VA TECH and KESH, and tion as supplier of “green” power, and the technical evaluation of site inspection re- peak load capacity. ports.

„ Within the support by the donors and „ In 2001, two new runners have been exported lenders, the Swiss grant contribution is to Fierza. The heavy transport across the focused on the delivery of mechanical was a logistical masterpiece. All equipment for the Fierza hydro power the four turbine units and generators are now plant. completely rehabilitated.

„ Opening and inspecting each unit was a chal- lenge. Only then could the volume of neces- sary rehabilitation works be exactly defined and agreed. Often, the old Chinese technol- ogy requires new, innovative solutions.

„ Periodic meetings between KESH, EBRD, SECO and suppliers helped to manage the budget, time schedule and the delicate inter- faces between the project components.

Rruga Brigada e VIII p. 2/2/1 Phone +355 4 240102/3 www.swisscooperation-albania.ch Swiss Cooperation Office Tirana, Albania Fax +355 4 240103 [email protected]