3Power Energy Group Agrees To Buy 75% of 127.6 MW HPP Concession in Albania

TIRANA (Albania), January 5 (SeeNews) – UK-based renewable energy firm 3Power Energy Group said it has entered into a frame agreement with an Albania-based investment group to acquire 75% of the concession rights to develop a 127.6 megawatt hydroelectric power plant in Albania.

The concession market value is about $20 million (15.5 million euro) and project estimated investment cost is around $180 million. The hydropower plant (HPP), located on the Shala River, will be planned for grid connection in 2015, the group said in a statement on Wednesday.

Further development cost and project equity will come from proceeds from private placements planned soon by the company.

Upon successful closing of the definitive acquisition agreement 3Power Energy Group will undertake the project's detailed design, finance structuring and bankable study.

Hydroelectric Power projects development is a very strong sector in Albania and favored for long term financing by major financial institutions operating in the country, the company said.

It added that the closing of this concession acquisition will crown its efforts in penetrating the Balkan market and will pave the way to acquire more projects cementing the company market position in renewable energy sector.

($ = 0.774 euro)

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