EVN AG and Statkraft AS announced Joint Venture Partnership for the concession to construct three Hydro Power Plants on Devoll river in Albania.

19.12.2008 08:00 | pressrelease

(Tirana, 19 December 2008) EVN AG, an Austrian based leading utility company, with major investments in Eastern and South Eastern Europe, and Statkraft AS, the Norwegian based European leader in renewable energy, today announced a Joint Venture in regard of the Devoll river concession in Albania.

Both companies will hold 50% in the joint venture company and will build on their experience in the region and use their combined knowledge in the planning, construction and operation of this challenging hydropower project.
Through signing the concession agreement with the Albanian government in Tirana, EVN AG and Statkraft were awarded the right to develop the hydropower project on the Devoll river in Albania. The joint venture company will plan and construct three peak-load hydropower storage plants with a total capacity of approximately 340 MW and an average production of approximately 1.000 GWh. The overall investment will amount up to EUR 950m and the plans should be realized in a time frame of roughly eight years.

Burkhard Hofer, CEO of EVN AG, comments on the joint venture agreement:
"We highly appreciate the possibility to realize this outstanding hydro power project with a partner like Statkraft, whose specific experience in regard of hydropower plants gives us great confidence that we can successfully realize the challenging plans in Albania".

Ragnvald Naero, Executive Vice President of Statkraft AS comments:
“This signing ceremony marks an important milestone in the Devoll Hydropower Project. A concession agreement has been concluded on a project that can increase the hydro power production in Albania with 20 %, create jobs, stimulate economic development and deliver pure energy to Albania. Statkraft is proud to be a part of this project. We have a great partner in EVN and believe in the continuing successful cooperation with the Albanian government.”
The planning of the current Devoll project started more than two years ago. Following the application of EVN for an unsolicited proposal, the Albanian government launched an international tender procedure. EVN was selected the winning bidder in January 2008. The concession agreement has now been successfully concluded. The direct foreign investment in the project will boost the Albanian economy, create new jobs and increase the security of energy supply. The Devoll river HPP project is currently one of the largest hydropower projects in Europe.

The agreement was signed in Tirana today by the Prime Minister Sali Berisha, the Minister of Energy and Economy Genc Ruli, EVN AG and Statkraft AS.

EVN is a leading, international listed energy and environmental services company, with headquarters in Lower Austria, the country’s largest federal province. On the basis of a state-of-the-art infrastructure, EVN offers its customers electricity, gas, heat, water, waste incineration and related services from a single supplier. With its portfolio of services, EVN safeguards and improves the quality of life of more than three million customers in 18 countries. In addition to the role in Austria, EVN has succeeded in establishing a positioning in the energy industry in Bulgaria and Macedonia, supplying 2.3 million customers. In the environmental services area EVN successfully operates in the fields of water supply, wastewater treatment and waste incineration through its shareholdings. The EVN Group has a total of 9,342 employees in 18 countries. In the 2007/08 financial year, the total Group revenue amounted to EUR 2,397.0m.

Statkraft is a leading player in Europe within renewable energy. The Group develops and generates hydropower, wind power, gas power, solar power and district heating and is a major player on the European energy exchanges. In Norway the company supplies electricity and heat to around 600,000 customers through its shareholdings in other companies. In 2007 Statkraft posted a profit after tax of NOK 6.6 billion, and employed around 2,300 employees in ten countries. The world needs pure energy. This is what Statkraft delivers – every day.