Skavica Hydropower Plant
The construction of the Skavica HPP is a major project with an impact not only on the electro – power system, but also on the national economy of the country. This is an early project, which will not only meet the demands of the Albanian market in terms of energy production, but will also enable the country to become an exporter of renewable energy.
The Skavica Hydropower Project (Skavica HEC) will be built upstream of the cascade of three existing dams owned and operated by KESH sh.a. The Skavica HEC aims to provide additional electricity production, prevent downstream flooding and optimize the performance of the entire cascade by playing the role of a check dam.
In July 2021, at the presence of the Minister of Infrastructure and Energy, Belinda Balluku and Justin Siberell, Regional President for Europe, Africa and the Middle East of Bechtel Infrastructure, the contract for the first phase of this project was signed between the Albanian Power Corporation and the American company Bechtel Infrastructure.
According to Decision No. 485, dated 30.07.2021 On the approval of the first phase contract “Contract for technical services” – Skavica Hydropower Project between the Albanian Power Corporation sh.a. and the company Bechtel Limited starting from the date of entry into force, the services include the tasks described in Annex 1 of this decision, with the amendments made from time to time by agreement between the parties. After the completion of task 1, Bechtel will submit to KESH sh.a for approval the project program for the remaining tasks. In accordance with law no. 38/2021, the purpose of the first phase Contract consists of carrying out preliminary work activities. In addition to what is mentioned above, the tasks provided for in Annex 1 to this decision will be in function of fulfilling the requirements of the applicable law regarding the approval of the dam project (including the draft concept and the implementation project), but the final approvals of the draft concept and the implementation project, according to the applicable law for the approval of the dam project, may not be finalized until the second phase, as described in Law No. 38/2021.
Referring to Annex 1 of Decision No. 485, dated 30.07.2021, the preparatory work includes all the following studies.
- Preliminary assessment, initial data collection and completion of the facility reconciliation.
- Study, site selection and concepts
- Studies/Surveys
- Inspection works and studies.
- Environmental and social impact assessment
- Design
- Project implementation plan
- Project site development
- Implementation plan
- Financing options
- Preliminary quantity/cost estimation
Skavica Hydropower Plant (HEC) Project
The Albanian Electric Power Corporation (KESH) is the public producer and supplier of 75% of the electricity in Albania. KESH is also the developer of the Skavica Hydropower Plant (HEC) Project planned to be built on the Black Drin. The purpose of the construction of the Skavica HPP is to provide additional electricity supply as well as to improve the management of the Drin cascade and reduce downstream flooding from high levels of seasonal rainfall. Bechtel, the global engineering and construction company, is working with KESH to carry out a feasibility study on the Skavica HPP, which has been under consideration for years, to proceed with the preliminary design (also known as FEED design) and to carry out the cost estimate of the Project.
The existing cascade built on the Drin River is the largest in the Balkans. The three existing dams are owned and operated by KESH with a combined capacity of 1350 MW. Skavica, as the upper dam of this cascade, will be the control dam that will help and optimize the cascade.
The purpose of the current study phase is to assess the feasibility of the Skavica HPP project. The study is being conducted according to international standards and Bechtel is managing this process for KESH with the support of other international companies such as Mott MacDonald for the engineering part, Golder for the Environmental and Social Impact Assessment (ESIA) and WeBuild for the technical and constructability part of the work. Also at this stage, the Project is being supported by local consulting companies.
Technical-economic, environmental and social parameters are currently being assessed and analyzed as part of the study of alternatives, a process that is being carried out in accordance with international standards and good practices as well as laws and regulations that apply in Albania.
Consultant Bechtel and WeBuild have compiled and presented the data and studies of field surveys, works and other technical analysis studies in function of selecting the preferred option of the Project as follows:
- alternatives for the location of the dam and other elements of the Project;
- type and height of the dam;
- transmission line corridor;
- access roads and temporary facilities;
- geological, geotechnical, hydrological, climate change and flood assessments;
- studies on power and energy production;
- tunnels for the hydro scheme.
KESH in cooperation with the Polytechnic University of Tirana (UPT), has carried out a preliminary assessment of the data and technical products presented by Bechtel, and in the meantime, environmental and social parameters will also be assessed as part of the assessment of the alternatives. Also in cooperation with UPT, KESH is working on drafting the preliminary relocation plan, which will be carried out in accordance with international standards and good practices as well as the laws and regulations that apply in Albania.
KESH has also engaged Ernst & Young, in the role of Financial Advisor, which is analyzing and evaluating the project’s feasibility options from an economic and financial point of view, and will support KESH in discussions with potential project financiers.
Upon completion of the ongoing analyses and studies, selection of the best option for the Project’s feasibility, including financial-economic and environmental-social analyses, and finding financing, the project proposal will be submitted for review and decision-making by the Government of Albania.
The illustrative project chart is shown in the table below.
Filling of the reservoir is not planned to occur until a late stage of construction works.
KESH, Bechtel and other Project partners are committed to treating affected communities and populations fairly, following international standards and good practices, including prior consultation and interaction with the community, to present the project, potential impacts and mitigation measures for these impacts, as well as to obtain opinions and feedback from stakeholders on the Project.
Environmental and Social Impact Assessment (ESIA)
Since the Skavica HPP is considered a key element for the optimization of the Drini cascade, various partial studies have been undertaken for years, and in June 2020, the Albanian government took the decision to finance a full feasibility study through KESH.
As part of this first phase, an Environmental and Social Impact Assessment is being undertaken by Golder, a well-known and internationally experienced company supported by local consulting companies. Studies of the existing environmental situation have already been carried out for the summer, autumn, winter and spring periods. The ecological study is being carried out. Preliminary studies of the social situation are still being carried out.
A preliminary draft for the identification of Environmental Issues (or as it is known, the Environmental Interaction Report) was published on the official website of KESH in early February 2023.
Skavica Hydropower Project (ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT–ENVIRONMENTAL INTERACTION)
The preliminary report has been presented to the Ministry of Tourism and Environment and the National Environment Agency, and upon completion of the technical, economic and financial assessments, selection of the best project alternative and finding financing, an In-Depth Environmental and Social Impact Report or as it is known, an In-Depth ESIA will be drafted, which will also be subject to a “due diligence” process by independent third parties, to guarantee compliance with legal provisions as part of the application process, but also with the IFC’s environmental and social performance standards.
The ESIA study will carefully assess:
- The potential environmental and social impacts of the Project (both negative and positive);
- The ways in which negative impacts can be avoided, minimized and/or remedied from the early stages of project design;
- The potential impacts on the livelihoods of affected communities, vulnerable groups, social infrastructure, cultural heritage and natural resources;
- The approach and principles of compensation and resettlement through the development of the Resettlement Policy Framework document, as well as the Preliminary Resettlement Plan;
Starting from 2022, throughout various activities, Bechtel, Golder and KESH have held meetings and consultations with stakeholders for the project:
- Around 27 meetings held during the feasibility studies with local authorities, administrative units, experts, civil society organizations, or central institutions.
- Over 20 meetings organized with communities in the project area of interest, which involved around 350 citizens.
- Over 70 meetings with representatives of Municipalities or Administrative Units to gather information on the demographics and socio-economic situation for the project area of interest.
Initial discussions with stakeholders as well as those that will be conducted in the future will be included in the ESIA report. The report will also include the proposed compensation and resettlement strategy which will be shared with stakeholders and affected communities to obtain their opinions and comments.
The ESIA as well as the resettlement reports and studies will be accompanied by ongoing field observations and close interaction with Project stakeholders including affected communities as well as local and central authorities.
