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INTERVIEW-Albania, Kosovo to build power link

2009-02-05 16:31:23 GMT (Reuters)
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By Benet Koleka

TIRANA, Feb 5 (Reuters) - Albania and Kosovo will build a 75-million-euro ($96 mln) power line joining their grids to reduce Kosovo's dependence on its former ruler Serbia and help the flow of electricity in southeastern Europe.

Ymer Balla, general manager of Albania's Power Transmission Operator (PTO), said in an interview on Thursday that work to build the line will begin in 2010 and that the connection will be working by either mid-2011 or early 2012.

The power link is important too because a road being constructed gives landlocked Kosovo, the smallest nation in the Balkans, access to Albania's ports on the Adriatic Sea.

In addition to helping the grids of Albania and Kosovo to work together, the project will ease Kosovo's power dependence on Serbia, its former ruler which claims a virtual possession of its interconnection lines.

"This is a major power project, an old dream really, and it will be a power exchange highway," Balla said.

"I think this line is not only important for just our two countries, but in much wider terms. The financing of interconnection lines is secured easily only if it is of importance for the whole region."

Balla said Kosovo will build a 1,000 to 2,000 MW power station while Albania had started a number of projects, including hydroelectric and power plants.

"The line will serve to liberalize the energy market in the whole area and will exchange power among the countries of southeastern Europe, not just Albania and Kosovo," Balla said.

Germany's KFW development bank will loan 75-million euros to build the 235-km long line from Kashar near Tirana to Pristina. The Albania part will cost 43 million euros ($55mln). A section of the line from Tirana to Vau i Dejes is being built as part of an interconnector line to Montenegro. It is also funded by KFW.

It would follow the Drin River valley and cross 85 km into Kosovo to reach the Kosovo B substation near Pristina.

Balla said the line would optimize conditions for both systems since Albania generates 100 percent of its power from hydroelectric schemes while Kosovo uses coal-fired plants.

"Building the line would be an important step to help the Albanian and Kosovo systems work as a single system," he added. (Editing by Adam Tanner)

 
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