Power Sector Rehabilitation & Restructuring Project

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The Power Sector Rehabilitation and Restructuring Project will significantly improve the operational effectiveness of the power sector, by implementing electricity loss reduction measures, introducing electricity price rationalization, and initiating a sector regulatory, and restructuring framework, aimed at establishing the preconditions for competition, and privatization. The project has three components: 1) rehabilitation, and strengthening of the transmission, and distribution systems in the Durrres, Elbasan, and Kucova regions, to improve frequent unscheduled outages, and high technical losses due to overloading, and outdated equipment. Donor-finance investments, on the basis of technical, economic, and environmental feasibilities carried out by Harza Engineering Company International, will be financed by the United States Trade and Development Agency; 2) provision and installation of secure boxes containing meters, to be installed in single-family dwelling units, and, secure collective boxes will be installed in apartment buildings. Additionally, remaining boxes needed for the meters financed under previous operations, by other donors and by the Albanian Power Company (KESH) will be provided, allowing the company to complete it metering program; and, 3) technical assistance will support power sector reforms, preparation of tender documents, assistance to KESH in environmental aspects, and in reviewing inventory control procedures.