Power developer Shala Energy has secured an approval from the Albanian Ministry of Economy, Trade and Energy for its 127.6MW hydroelectric project.
Shala entered into a concession agreement with the ministry to procure the rights for construction and operation of the hydropower plant for 35 years.
Proposed to be constructed on the Shala River, the project will require an investment of $272.7m.
Development costs of the project include civil works, procurement of equipment and laying of transmission lines.
The company stated that 30% of the investment will be provided by its stakeholder with the remainder to be raised through long-term loans from international financial institutions.
Shala expects to conclude the construction within four years of its commencement; and as per the outlined plan it will complete 15% of the construction during the first year, 30% each in next two years and the outstanding 25% in the fourth year.