Power developer Shala Energy sh.p.k. has signed a concession agreement with the Republic of Albania's Ministry of Economy, Trade and Energyto develop a 127.6 MW hydroelectric project on the Shala River.
As per terms of the agreement, Shala Energy will hold all concession rights on the construction and operation of the hydropower plant for 35 years.
Shala said the total cost of the project will be about US$272.7 million, which includes the plant's civil works, equipment, transmission lines and other costs.
Company shareholders will contribute 30% of the investment costs, Shala said, with the remainder to be funded through long-term loans by yet-to-be-determined international financial institutions.
The Shala River project is expected to be complete within four years of beginning construction.
Also in Albania, HydroWorld.com reported earlier this month that EVN AG has agreed to sell its 50% share in Devoll Hydropower ShA to Statkraft A.S.
Albania's government also approved the construction of three small hydropower plants earlier this year.