On Tuesday 11th March 2009, the Minister of Economy, Trade and Energy acting on behalf of the Republic of Albania signed the share purchase agreement for the sale of 76% of the shares of OSSH (the state owned sole electricity distributor) to Czech state-controlled power utility CEZ, listed in Prague and Warsaw. This deal marks one of the most important, and last major privatizations in the Republic of Albania.
CEZ shall not only pay the 102 million EUR to Albania for a 76 percent stake in DSO, but also invest 200 million EUR during the five years of operation and repay DSO’s old debt of around 122 million EUR.
Kalo & Associates, working together with Gide Loyrette Nouel were legal advisors to the IFC who were transaction advisors to the Albanian government on the unbundling of OSSH, structuring the transaction, and executing an open, transparent and competitive bidding process. With the SPA signed the Council of Ministers must approve the transaction, and a law approving and ratifying the agreement is expected to be passed through Parliament in the next coming months.