HYDROENERGETIC POTENTIAL

INVEST
IN
ALBANIAN
NATURAL
RESOURCES

NATIONAL AGENCY OF NATURAL RESOURCES 

C O N T E N T S : Page
MESSAGE FROM THE EXECUTIVE DIRECTOR 3

I. ALBANIA OVERVIEW 4

II. HYDROENERGETIC SOURCES IN ALBANIA 8

Hydropower Potential 8
Free areas for investments 9
Energy Development in Albania 10
Small Hydropower Plants 10
The investments Situation 11
Potential Investors 12

III. LEGAL FRAMEWORK 14

CONTACTS 18
MESSAGE
FROM
THE
EXECUTIVE
DIRECTOR
Dear business partners!
National Agency of Natural Resources (AKBN) in August 2010 celebrates its fourth
birthday with a very satisfactory record work and achievements. AKBN has added value
to the work and programmes of all its partner institutions.

After years of solid growth, Albanian Natural Resources remain a stabilizing factor in
2010, in the current worldwide economic climate and the National Agency of Natural
Resources as the main governmental adviser for mining, hydrocarbon, hydropower and
renewable energies issues and promoter of Albanian natural resources wealth has its big
responsibilities.

Based on Albanian state legislation, the Albanian Government stimulates and encourages
all the interior and foreign investors, interested for investments in mining industry,
hydroenergetic, hydrocarbon and renewable energies field.

Invest in the Albanian Natural Resources!

Get advantage from the Albanian natural resources!

Get advantage from a new, simple and facilitating legal framework!
Get advantage from the Albanian geographical position!
Profit from a new modernized infrastructure!

Tr u s t i n a n e x p l o d i n g e c o n o m y !

Taulant Musabelliu

ALBANIA
NATIONAL AGENCY OF NATURAL RESOURCES 
ALBANIA
OVERVIEW
Albania is located in south-western part of
Balkans peninsula, Southeast Europe.
The country is linked with the rest of the
world via land, sea and air routes.
OVERVIEW
Characterized by a distinct mountainous landscape, of the country, 151 km east with the Republic of
the average altitude of Albania is 700 meters above Macedonia and 282 km south and southeast with
the sea. Based on the structure, composition and Greece. The coastline of the country is 362 km long.
shape of the landscape, four physical-geographic
zones are distinguished: Alps, Central Mountainous Population: about 3,5 million inhabitants (source:
Region, Southern Mountainous Region and Western INSTAT). Albania is estimated to be a country with a
Lowland. The highest peaks are those in the Alps relatively young population.
and the Eastern Mountains (Korabi 2751 m) and
the lowest peaks are located in the western coast
area.

The landscape is intersected by the valleys of

Vjosa, Devoll, Osum, Shkumbin, Erzen, Mat and
Drin rivers, eastward and westward, which enable Albanian hydrographical
the connection of Adriatic Sea with the internal part
of the country and the Balkans territory
Albania lies in the Mediterranean climatic zone,
characterized by a hot dry summer, strong sunshine
and generally mild winter with abundant rainfalls.
Annual average rainfall is 1430 mm.

Situated along the Adriatic and Ionian sea coast,

Albania constitute one of the key points of
intersection for the roads crossing the Western
Mediterranean into the Balkans and Little Asia.
Albania ensures via sea route the connection with
other world countries and that of the central regions
of the Balkans Peninsula with the Adriatic coast. The
Adriatic Sea and Otranto Strait stand in-between
Albania and Italy.

Albania is a Parliamentary Republic

The two main ports are located in Durres and
Vlora.

Mother Theresa Civil Airport is based in Rinas, 25

km from the capital city.

The Capital City of Albania is Tirana since 1920, with

an estimate population of 1,000,000 inhabitants.
Tirana is also the major administrative commercial
centre of the country.

Official language is Albanian.

Borders: The border via land is 720 km long, 287 km

out of which are shared with Serbia, Montenegro
and the Republic of Kosovo in north and northwest

 NATIONAL AGENCY OF NATURAL RESOURCES

HYDROENERGETIC
SOURCES
IN
ALBANIA

NATIONAL AGENCY OF NATURAL RESOURCES 

Albanian hydrographical territory is 44.000 km2 or 57% larger than its geographical terri-
tory. The country has eight main rivers: Drini, Buna, Vjosa, Semani, Mati, Shkumbini, Ishmi
and Erzeni. The average altitude of the hydrographical territory is about 700 m above the
sea level. The total average flow of the rivers is about 1245 m3/sec.

Due to the morphological features, Albania is quite rich in rivers, with more than 152 rivers
and torrents forming eight big rivers. They have a southeast-northwest flow, mainly oriented
towards the Adriatic coast
The most important rivers are Drini with 340 m3/sec, Vjosa with 210 m3/sec, Seman with
101 m3/sec, Mat with 74 m3/sec, Shkumbin with 60 m3/sec, etc

Although with small flows, their considerable cascade makes these rivers substantially
important for the hydropower potential offered to the country.

Consequently, Albania is seen as a country rich in water reserves and a hydropower potential
that bears an important developmental role.

River Length Catchments Average flow Module of Ratio Max/

km area, km2 m3/s flow l/S/km2 Min flow
Buna 41 5.187 320 - 5,3
Drini 285 14.173 352 24,8 5,1
Mati 115 2.441 103 42,6 9,3
Ishmi 74 673 20,9 31,0 5,9
Erzeni 109 760 18,1 24,0 11,2
Shkumbini 181 2.441 61,5 25,2 13,2
Semani 281 5.649 95,7 16,9 13,7
Vjosa 272 6.706 195 29,1 7,2

Table 1. The main hydrologic characteristics of big rivers

Hydropower Potential
Albania has big hydroenergetic potential and only 33% out of it is used so far. The country
has a total installed capacity of 1461 MW and marks an average hydropower production of
5267 GWh. Albanian Hydroenergetic potential is approximately 600.000 KWh per sq2 and
the electric power production could reach up to 17 TWh.

 NATIONAL AGENCY OF NATURAL RESOURCES

 MONTENEGRO
KOSOVO
Big Hydropower Plants
DRINI
Three rivers are actually exploited in Albania in
a cascade form. The hydropower plants built
MATI on each cascade operate with the following
ISHMI parameters:
MACEDONIA
ERZENI
Drin river cascade, with a total installed
SHKUMBINI
capacity of 1350 MW, which constitutes
SEMANI
92% of the countrys power generation
with three hydro-power plants;
Mat river cascade, with two hydro-power
VJOSA
plants operating on a total installed
capacity of 49 MW,
GREECE Bistrica river cascade, with a total installed
capacity of 27,5 MW.

Nr. Nomination of HPPs Installed Annual Generation capacity

Capacity (kW) (kWh)
1. Ulza HPP (Mat) 25.000 120.000.000
2. Shkopeti HPP (Mat) 24.000 94.000.000
3. Bistrica I HPP (Saranda) 22.500 100.000.000
4. Vau Dejes HPP (Shkodra) 250.000 1.000.000.000
5. Fierza HPP (Tropoja) 500.000 1.800.000.000
6. Komani HPP (Puke) 600.000 2.000.000.000
Total 1.421.500 5.114.000.000

Table 2. Big scale Hydro Power Plants constructed in Albania.

Free areas for investments

The hydrographic territory of Albania is divided in catchment basins as by the main rivers
Actually, after the reconstruction of hydroenergetic objects given in concession results that
free areas for possible investments in hydroeneregtic field remain Osumi catchment Basin,
Vjosa and a branch of Drini river.

These rivers are located in a vast territory of Albania and have a big hydroeneregtic
potential. In these areas, with a high hydroenergetic potential, exist free zones for small
HPPs construction.

NATIONAL AGENCY OF NATURAL RESOURCES 

Energy Development in
Albania
Due to a long five-century ottoman
occupation and other historical conditions,
the declaration of independence, on
November 28, 1912, Albania was a
backward agrarian country, lacking any
industry whatsoever. Even during King
Zog period, Albania followed its track as
an agrarian country, without any signs of
energy development. During 1945-1951 the
power production amounted to an average
of 10 KWh per resident.
The hydropower sector began to develop
after 1952, when Selita hydro-power plant
started operation, with an installed capacity
of 5000 KW. In 1958, Ulza hydropower plant
started functioning with installed capacity
of 25.000 KW.
Following the construction of other three
hydropower plants of Shkopet, Bistrica I
and Bistrica II, as well as of Fier thermal-
power plant, in 1970, power production
reached 500 KWh per resident.
In 1971, 1978 and 1985, three of the
biggest hydropower plants of the country,
Vau i Dejs HPP ( with installed power
of 250 MW), Fierza HPP (with installed
power of 500 MW) and Koman HPP with
installed power of 600 MW). Other 90 small
hydropower plants were constructed during
this period.
No further developments of the sector have
been marked from 1985 to 2007.
Most of SHPPs were neglected and about
20 of them were completly destroyed.
Considering the current power-supply
situation, as well as the potential demand
for power, the Government has set the
development of the energy sector among
its priorities, focusing on the development
of renewable energy resources and, in
particular, the hydro-power ones.
10 NATIONAL AGENCY OF NATURAL RESOURCES
Small Hydropower
Plants
Albania counts 70 small existing hydro-
power plants with a ranging capacity from
20 KW to 9200 KW. Only 38 out of this total
are currently operational, whereas the rest
is out of function.
The most part of machineries and HPPs
equipments are Austrian, German, Chinese,
Hungarian and talian productions. Some
parts of them are produced in Albania. The
turbines are of Frencis, Pelton and Banki
types. The generator type is Sincron with
a low voltage. The average age of these
HPPs is approximately 25 years.
Out of the total of small hydropower
plants:
32 of them operate on concessionary
contracts, with an installed capacity of
24,4 MW
16 of them have been privatized and
operate with an installed capacity
of 2,047 MW
22 of them are owned by the State with
an installed capacity of 11,0 MW
The purpose of the construction
of such small hydropower plants
was the energy supply of the remote
mountain areas.
They were supposed to be derivational
hydropower plants and make use of the
water flows closed to these areas.
The investments Situation
Actually, 7 big hydropower plants and 38 small ones are
currently in operation

In Drin River are three operational hydropower

plants with a total installed capacity of
1350 MW, Vau i Dejs HPP, Fierza HPP and
Koman HPP. A concessionary contract has
been concluded for Ashta hydropower plant
on Drin river between the Ministry of Economy,
Trade and Energy and Austrian Company
sterreichische Elektrizittsirtschafts-
Aktiengesellschaft, with an installed capacity
of 48,2 MW and it currently is in the construction
phase.

In Mat River are two operational hydropower

plants, Ulza HPP and Shkopet HPP, with
an installed capacity of 49 MW.

In Devoll River Banja hydropower plant

began to be constructed before 1990, with a
designated capacity of 60 MW. However, only
40% of the works have been completed and
the process was suspended. Actually, is signed
the concessionary contract for the construction
of the HPPs cascade on Devolli river, between
METE and the Austrian Company EVN AG,
where are planned to be constructed 3 (three)
Hydropwer Plants Lozhan, Grabove,
Skenderbegas-ekin and Banja HPPs, with a
total installed capacity of 319 MW.

In Vjosa River, is in construction phase Kaliva

hydropower plant, with an installed capacity of
90 MW.

In Bistrica River are two operational hydropower

plants, Bistrica I and Bistrica II, with an
installed capacity of 27,5 MW.

NATIONAL AGENCY OF NATURAL RESOURCES 11

 The Government of Albania has strongly
supported the development incentives of the
private sector for construction and especially
for small hydropower plants construction
through the improvement of legal framework,
simplifying the administrative procedure for
investors guaranteeing a transparent and
non-discriminated process for the interested
subjects.

The old legal framework, for concessions

and private investments in public services,
had not clear rules about the way of giving a
concession, the procedures for the identification
of proposals and offers evaluation, about the
competition procedures enabling the execution
of the Law for the unsolicited proposals from
special case, to the only way of having a
concessionary contract.

As a conclusion, the composition of the new

legal framework was a necessity to ensure
serious investments in public sector, the lost
transparency in the process of the private
partners elections, efficiency increase in
public investments, public-private partnership
enforcement and the creation of guaranteed
basement for the successful implementation of
concessionary contracts.

The new concessionary legal framework

helped local and private investors to undertake
investments in hydro energetic sector.

Potential Investors

A potential investor, that has

signed concessionary contracts
up to the end of the year 2009, is
EVN Austrian Company, that has
taken in concession the Cascade
of Hydropower plants on Devolli
River.

12 NATIONAL AGENCY OF NATURAL RESOURCES

LEGAL
FRAMEWORK

NATIONAL AGENCY OF NATURAL RESOURCES 13

Law no.9663, dated 18.12.2006 On Concessions, amended, Council of Minister Decision
no.27 dated 19.01.2007 amended
The purpose of this law is to create a favorable framework for promoting and facilitating the
implementation of concessionaire projects, enhancing transparency, fairness, efficiency,
long-term sustainability in development of infrastructure and public service projects.

This law is implemented for granting of concessions by contractual authorities for the
economic activities in the sectors as: transport, generation and distribution of energy,
telecommunication, and tourism.

Identification of Potential Concessions

1. The identification of potential concessions shall be done by competent ministries,

and local government authorities in cooperation with the Concessions Treatment
Agency.
2. Potential concessions may be identified by solicited proposals or unsolicited
proposals by a proponent.
3. In case of solicited proposals, the competent authorities shall carry out an analysis
where the potential concession should be implemented. This analysis shall be
based upon the principles of value for money, alignment of potential Concessions
with the national strategic objectives, as well as with sector strategic objectives,
the technical and commercial feasibility of the potential Concession and its
ability to attract potential Concessionaires and private financing.

4. In case of unsolicited procedures the proponent shall carry the analysis by

evaluating the elements for each case

5. When the competent authorities consider that a concession should be

implemented they approve the commencement of selection procedures.

6. The Council of Ministers shall decide the competent authority for each concession.

Preselection Procedure
1. The contractual authority shall prepare the invitation for participation in pre-
selection procedure and the pre-selection documents. The invitation
to participate in the pre-qualification procedure shall be published in the
Public Announcements Bulletin, as well as in the international and local press.
2. The contracting authority performs the qualification of each bidder that has
submitted an application for pre-qualification, in accordance with the criteria set
forth in the prequalification documents.
3. The contracting authority shall publish the list of pre-qualified bidders in the Public
Announcements Bulletin within 30 days from taking the decision.

14 NATIONAL AGENCY OF NATURAL RESOURCES

The contracting authority shall invite the preselected bidders to submit the proposals and
the adequate documents that includes

a. General information
b. Specific information that includes at least
- the project and project specifications
- specific qualification terms and evaluation criteria

The contracting authority requests specific information that includes

TYPE 1 FORM FOR UNSOLICITED PROJECT-PROPOSALS

I. TECHNICAL DOCUMENTS

1. The project must contain:

Feasibility study on technical solution for an optimal exploitation of water potential

A detailed analysis of costs evaluation
Business Plan
The graphic of project execution
Election of machineries and equipments that will be used
A study on the way of linking with the system
Graphic material

2. Hydrologic study

3. Geologic study

4. Business Plan

5. Report on Environment impact

6. Information from the Water Basin Council of the area where the concession will be
executed, about the priority and the water amount that can be used for electric energy
production

7. Respective licenses of the specialists that have completed the studies (notarized)

II. LEGAL DOCUMENTS

1. Authorization from the official representative that will follow the procedure up to the
concessionary contracts undersigned
2. Court Decision for the company registration as a legal person.

NATIONAL AGENCY OF NATURAL RESOURCES 15

Note:

The Project must be done from licensed studios. The projectors licenses must complete
the criteria defined from the State Technical Evaluation Group.

In respect to the Rule For the management of the documentations and the examination of
requirements for granting a concession , the required documentation must be in 2 (two)
copies, putted inside two files where must be written the address of the interested subject
and also the companys stamp.

The Evaluation will be done from the State Technical Evaluation Group.
In every technical document must be signed the number of pages stamped with the subject
stamp.

Address: Ministry of Economy, Trade and Energy: www.mete.gov.al

1. Within 90 days of receipt and review of such unsolicited proposal, the contracting
authority shall determine whether the project is considered to be in the public
interest.

2. If the concession project is considered to be in the public interest, the contracting

authority shall invite the proponent to submit additional data, to make an
evaluation of the proponents qualifications and the technical and financial
feasibility of the project;

3. Within 120 days of the invitation from the contracting authority, the proponent has
to submit a technical and financial feasibility study (including but not limited to a
financial model and a project financing plan), an environmental impact study
and satisfactory information regarding the concept or technology contemplated in
the proposal

16 NATIONAL AGENCY OF NATURAL RESOURCES

Initiation of a Selection Procedure shall be done as follows:

1. The contracting authority shall, within 6 months of receipt of the documentation

decide to accept or reject the potential concession project derived from the
unsolicited proposal.

2. If the unsolicited proposal is accepted by the contracting authority, the contracting

authority shall initiate a competitive selection procedure

3. The proponent shall be invited to participate in the competitive selection procedure
and upon decision of the Council of Ministers; it shall be awarded a bonus on
its technical and/or financial score during the competitive selection procedure
up to a maximum of 10% of the points.

Administrative Review Procedures

1. The Concession Treatment Agency is the competent authority that supervises the
Concessionaire procedures, and conducts administrative review of the complaints.
2. For each complaint should be paid a fee in the amount of 10% of the bid security
in advance.
3. Concession Treatment Agency concludes the administrative review within 30
calendar days from the submission of the complaint and notifies the contracting
authority and the petitioner about the decision.
1) The petitioner is entitled to take an appeal against the decision of the Agency
within 30 days since the notification at the Court of Tirana (Administrative Section).

NATIONAL AGENCY OF NATURAL RESOURCES 17

 Contacts

www. akbn.gov.al

E-mail: info@akbn.gov.al, Tel: +355 4 2246195, Fax: +355 4 2257382

Address: National Agengy of Natural Resources (AKBN)

Bulevardi Bajram Curri, Blloku Vasil Shanto

Tirana, Albania

Contact Person :
Mr.Admir Avxhi
Head of Foreign Relations

18 NATIONAL AGENCY OF NATURAL RESOURCES

NATIONAL AGENCY OF NATURAL RESOURCES 19
www.akbn.gov.al