OSHEE Sustainability Project (EBRD-55236)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Albania
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 22, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Operatori i Shperndarjes se Energjise Elektrike (OSHEE)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 89.62 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 81.5
Converted using 2024-08-13 exchange rate.
Loan Amount (USD)
$ 89.62 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 81.5
Converted using 2024-08-13 exchange rate.
Project Cost (USD)
$ 89.62 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 81.5
Converted using 2024-08-13 exchange rate.
Bank Documents
Primary Source

Original disclosure @ EBRD website

Updated in EWS Aug 15, 2024

Disclosed by Bank Aug 13, 2024

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Can you contribute information about this project?
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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the EBRD, the project consists of a sovereign-guaranteed loan of up to EUR 81.5 million to be provided to Operatori i Shperndarjes se Energjise Elektrike (OSHEE), the state-owned distribution operator and retail supplier of Albania. The loan proceeds themselves will be used to refinance and lengthen the tenors of short term sovereign guaranteed overdrafts which OSHEE has entered into with commercial banks on an emergency basis and require annual reapproval. The loans were necessary to fund electricity imports at the time of energy crises.

The project will enable the restructuring of OSHEE's balance sheet giving it greater control over its financial situation, and indirectly fund crucial green capital expenditures. The EBRD investment will be conditioned upon an agreed plan for a corporate program of reforms of which will have a significant impact on the development, management, and operational efficiency of OSHEE and by extension, the power sector in Albania.

TC engagements include: (i) aligning the Albanian Distribution Code, a key piece of secondary legislation for energy system operations, with international best practices and commitments under the Energy Community Treaty and EU accession process; (ii) improving long-term network investment planning to support RES penetration; (iii) establishing a Sector Skills Council in Energy to identify market skill needs and facilitate dialogue between companies, government, and education providers; and (iv) supporting the creation of an in-house Training Academy within OSHEE.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, OSHEE is the 100% state-owned electricity distribution and retail supply company of Albania. OSHEE supplies all Albanian regulated customers and acts as the supplier of last resort for unregulated customers. OSHEE is responsible for the distribution network and acts as the off-taker of electricity produced by most of the IPPs in Albania.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Operatori i Shperndarjes se Energjise Elektrike (OSHEE) Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client - Operatori i Shperndarjes se Energjise Elektrike (OSHEE):

Enea Karakaci
Email: Enea.Karakaci@oshee.al
Website: www.oshee.al

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works