Speech of Prime Minister Edi Rama at the ceremony for the completion of the project”Albania’s South Ring”:

After the words full of light of the lady from Germany, thanks to the wise Albanian engineer, it is hard for me to live up to the expectations of the light that was emanated here, but I believe that I will be assisted by the fact of being here today together, as witnesses of a very important achievement, such as the realization of a work with a strategic importance, thanks to the close cooperation with the German Bank for Cooperation (KFW), and thanks to the excellent work of the Albanian team led by the Minister of Energy and the OST director.

I want to be clear at the outset, by saying that such an important work is due to Albanians who supported strongly from the beginning the courageous energy reform, and became part of development, in a joint effort to establish the rule of law in this sector. Without the contribution of all those who were added – and I can mention here only a figure, to 320 thousand agreements entered with the Distribution Operator to access the system of regular payment of energy – it would have been impossible for us to be here today, have this work completed, or go on with other investments.

This work is one of the most meaningful expressions of the simple truth that reforms are the only way we have to transform Albania, despite the fact that reforms are painful, that reforms require sacrifices and patience in order to yield results.

This work is the result of a reform due to which what we had in front of our eyes and under our feet just two and a half years ago, seems us today as a reality belonging not to two and a half years ago, but as if it belonged to 20 years ago. We have walked apace to restore the rule of law in the system, but also to pave the way to investments, blocked due to an absurd conflict inherited from the misrule and mismanagement of a strategic sector for Albania, which actually risked to turn into a big hole for all of us. In fact, it risked to take us to a collapse, not only in terms of energy, but also of finances.

Only two and a half years ago losses were 52% in the entire power distribution system. A significant proportion of this 52%, the largest one, concerned energy theft. Only 2 and a half years ago we inherited a company with a billion dollars in debt, accumulated from 2007 to 2013, and due to a conflict of ownership blindly started by the previous government, with blocked funding. This funding also was a blocked one, as were other investments that have already been opened and put in use, and will continue to be used to go ahead with our transformation plan.

We found a system that pretended to protect the poor, because whenever there is a real reform, the poor become cannon fodder and are used by opponents of reforms to prejudice their necessity. A system that had established a category, supposedly to protect the poor, 300 kilowatt category, behind which everybody would hide. Owners of villas, owners of warehouses, businesses, hotels, and everybody would pay as if they were poor. We are very proud of this reform, because it brought two very important improvements.

First, not only it did not increase, but it lowered the average price of electricity, due to the exponential growth of contributions through regular payments. Secondly, we succeeded in protecting all those affected by the reform, and made available from the state budget 16 million dollars to families in need who, thanks to this support, pay as if they were in the protected category of 300 kilowatts.

On the other hand, this work is part of a chain of investments, and for the first time today we count 120 million dollar investments, due to the joint funding power of OSHEE, OST and KESH. Such a thing has never happened before, on the contrary, if all of the southern Albania suffered and continues to suffer due to poor electricity supply, this was due to the fact that it continues to be supplied by a network built during the electrification period in the 70s. While the need for consumption is many times greater than the network’s supply capacity.

On the other hand, along with the unblocked funding, the financial package made available only to customers, which means regular supply and improved quality of electricity supply, amounts to 320 million dollars.

KfW is a very important strategic partner, and I want to repeat what I always say, whenever we have the opportunity and the honour to be together with KfW representatives in the implementation of works carried out due to this collaboration.

KfW is an important strategic partner, not only for funding, not only for the money allocated for the development of the country, but for the work culture and knowledge it brings, for the extremely wise conception of the whole funding scheme, combined with increased human resources and human capital. Also for the fact that, as every KfW investment in Albania has proved, investment in stones, in steel, in wire, machinery and so on, does not end when the physical investment is over, but it continues thanks to the investment in the people administering the generated assets.

For these reasons, the works created by this cooperation are stable and do not end up like as it has often happened in the past with many works made with funding of other donors, which once the work was finished and the keys handed over, there was nobody to properly manage what was invested, because nobody thought of the stability and continuity of the investment.

On the other hand, thanks to the reform and the support of all those Albanians who today are the reason we are here, because without establishing the rule of law in the system we would not be able to make this investment and make true an already old dream – as time goes by very quickly – to eventually connect the power road between Albania and Kosovo. The long-awaited  famous interconnection, propagandized by parties, governments and our society, is finally becoming a reality.

It is becoming a reality, just as will become reality the connection of the energy road between Albania and Macedonia, which means full integration of Albania into the European network of power, since this connection is provided by all sides, thus enabling the reform to completely liberalize the energy market.

In addition, our ambition for the regionalization of production and management of energy manes welfare for the Albanians, and the energy sector, from a potential which was the biggest problem and major causes of stress for Albanian families and state, will turn into a source of income and wealth that is not only natural, but also a national asset in finance terms.

To conclude, a few words about this investment, which will be completed with the construction of two 110 kV substations in Orikum and Himara, for which the procedures of competitions have already started. These European standard projects that will extend from Vlore to Saranda, will strongly stimulate economy and tourism. Finally, after so many years, people will be no longer stressed out by power shortage, and the many visitors whose number has increased over the years, will not be discouraged to come and visit the southern areas of the country.

Therefore, I offer my sincere thanks to our German friends, being strongly convinced that what is happening between Albania and Germany in the energy sector, due not only to investments, but first of all to the knowledge generously exported by KfW to Albania, is a meaningful example for all those who want to see what a great potential is for Albania this friendship and this relationship, this such a strategic partnership where we want to do our best, in order to have as many investments and enterprises as possible, in addition to an increased number of German tourists in Albania.

Many thanks!

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“Albania’s South Ring” is the newest reality in the energy sector.

This work of strategic importance, successfully concluded, strengthens and expands the 110 kV network of south Albania, by fundamentally improving the energy supply in the tourist areas of the Ionian coast.

The project, covering the western and eastern part of southern Albania, is a 49 million Euro investment by the German government through the KfW Bank.

This project has expanded and strengthened the 400/110 kV substation of Zemblak, one of the most important nodes of the energy system in the country. The strengthening of this substation ensures supply in the southern area of the country, in addition to facilitating remote lines of the 220 kV network. This provides a better balance in the Southern 220 kV ring, which is a problem for the supply of a wider area.