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Roundup: Albanian PM declares to interrupt deal with CEZ, take back control of power operator

Xinhua, December 30, 2016 Adjust font size:

The Albanian government decided to interrupt the agreement with the Czech company CEZ in 2013 and take back control of the power distribution operator OSHEE, Albanian Prime Minister Edi Rama declared Thursday.

Local media reported that Rama had been called to testify at the inquiry commission set up by the Albanian parliament to investigate into the gov't settlement with CEZ.

The Czech company CEZ bought OSHEE, Albania's largest power utility company, in 2009 for 102 million euros, promising investments in national power grid and reduction of net losses.

But Albania's Energy Regulatory Entity revoked its license in January 2013, thus taking the company back to state control.

After that, CEZ launched an arbitration case against Albania, seeking more than 200 million euro in damages.

After several disputes and negotiations, the two parties reached an agreement in June 2014 to solve the issue amicably with 90 million euros agreed to pay to CEZ.

Albanian opposition accuses the government and Prime Minister Rama of causing a huge economic damage to the state by solving the conflict with CEZ amicably and avoiding arbitration.

But, Rama defended the amicable solution of the agreement with CEZ as the best solution.

He insisted that there was no chance for Albania to win the Arbitration trial against the Czech company.

But opposition lawmakers kept accusing the government of solving the CEZ issue politically for fear that it would risk Albania's EU candidate status.

According to the opposition, Czech Republic had warned Albania of vetoing Albania's candidate country status.

However, Rama said it's the economic backdrop when he took the office compelled him to intervene the issue as fast as possible.

He said facing such situation, Albanian government chose to solve the conflict on the basis of mutual understanding to avoid an energetic, financial collapse and losing all the chances of attracting investments. Endit