Remarks at the Workshop on the Privatization of KESH

Remarks of USAID Mission Director, Mr. Edward Landau
Workshop on Privatization of the KESH Distribution Network
November 14, 2007

Honorable Prime Minister Berisha,Honorable Minister Ruli, Chairman Nepravishta, General Director Bojaxhi, Honored International Guests, Ladies and Gentlemen,

It is my pleasure to welcome you to the first in a series of workshops jointly sponsored by the United States Agency for International Development and the Ministry of Economy, Trade and Energy, designed to address privatizing the KESH distribution network.

The US Government, through USAID, promotes economic growth and development, good governance and the rule of law, and the improved health and well-being of Albanian citizens.

Efficient, reliable and environmentally sustainable energy and modern infrastructure are essential for optimizing economic development and growth, creating jobs, and improving Albania's competitiveness. Few countries understand this connection better than Albania, which in recent years has experienced severe power shortages that have increasingly affected economic progress.

Over one year ago, the Government of Albania pledged to improve the performance of the energy sector when it announced its intention to privatize the distribution network of KESH.  In doing so, the government recognized the potential benefits that welcoming a strategic investor to the power sector market bring.  These include infusing the sector with private capital, improving collections and rationalizing consumption to reduce imports, and applying new technologies that improve efficiency, reduce costs, and enhance environmental performance.

I applaud the government for its foresight and commitment to improving the sector through private participation in energy.

Experience in this region and in other parts of the world has clearly demonstrated that an open and transparent privatization process, a predictable legal and regulatory framework is predictable, private owners operating in a commercially sustainable manner, ultimately produces a more reliable, efficient and productive energy sector.

USAID is pleased to cooperate with the Ministry and other donors in supporting Albania’s energy sector privatization objectives. We have worked with you on implementing several key building blocks, including developing the electricity regulatory authority and the Albanian market model, and most recently, a preliminary financial evaluation of the KESH distribution network.

This workshop will review progress to date, inventory remaining tasks, and allows the Ministry to inform its stakeholders and potential strategic investors.

You can be assured that USAID will continue to provide support for this critical endeavor. I wish you great success in this workshop and looking forward to seeing of its successful results.