Kurum International SH.A.

active

As part of liberalization of the power sector efforts of the Government of Albania (“GoA”), four operational hydroelectric power plants, namely Uleza, Shkopeti, Bistrica I, and Bistrica II (together the “HEPPs”), located in Albania with a total installed capacity of 76.5 MW were privatized through an international competitive bid in December 2012. Kurum International Sh. A (“Kurum International” or the “Company”) won the bid by offering a total amount of EUR 109.5 million. In January 2013, the Albanian Council of Ministers adopted the decision regarding the award of the privatization of the HEPPs to Kurum International and in February 2013 the Albanian Parliament ratified the share sale agreements related to the hydro assets. In order to support the Albanian power market liberalization efforts IFC envisages financing (i) the acquisition of the HEPPs; and (ii) the estimated EUR 10 million rehabilitation investment of these power plants (the “Project”).Through this Project, Kurum International contemplates reducing its electricity purchase costs, which is a significant production cost item for the Company, and to secure reliable electricity sourcing in order to continue its operations without major disruptions.