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March 3, 2026
by AEA in News

North Macedonia Launches First-Ever Tender for 150 Electric Buses Worth EUR 51 Million

The Ministry of Transport of North Macedonia has launched a public tender for the procurement of electric buses for urban transport, marking the country’s first such purchase. The authorities expect the move to curb air pollution, enhance the quality of public transport services, and reduce long-term operating costs.

North Macedonia is joining regional peers Croatia and Bosnia and Herzegovina, which are also advancing electric bus procurement processes. Macedonian officials first announced the initiative in December 2024.

150 Electric Buses and 75 Charging Stations Planned

The ministry has issued a public call for the acquisition of 150 eco-friendly electric buses and 75 charging stations. Under the plan, 100 buses will be allocated to the Skopje, while the remaining 50 will serve other municipalities across the country.

Delivery is structured in three phases. The selected supplier will be required to deliver the first 30 buses and 15 charging stations within six months. An additional 60 buses and 30 stations must be supplied within one year, followed by the final 60 buses and 30 stations within 18 months.

The total value of the procurement is estimated at MKD 3.1 billion (EUR 51 million).

Technical Requirements and Warranty Conditions

According to the tender documentation, each bus must offer a minimum driving range of 325 kilometers on a single charge, in line with the SORT II standard. The required minimum battery capacity is 360 kWh.

The supplier must provide a four-year warranty covering both the buses and their batteries, as well as ensure the availability of spare parts for ten years. Each of the 75 charging stations is required to have a capacity of at least 120 kW per charger.

The deadline for bid submissions is March 30, 2026. The main selection criterion will be price, determined through an electronic auction process.

Strategic Investment in Cleaner and More Efficient Transport

The ministry described the procurement as a clear political commitment to environmental protection and to improving the efficiency of public transport in Skopje and other municipalities.

According to the authorities, the investment sends a strong signal in the fight against air pollution while raising the quality of public transport services. In addition to environmental gains, the ministry emphasized the long-term economic viability of the project, citing lower maintenance and energy costs associated with electric vehicles.

The procurement forms part of a broader strategic plan aimed at transforming the urban transport system and enhancing the overall efficiency of the national transport network.

Regionally, Croatia is in the process of purchasing 206 electric buses for its cities, while Bosnia and Herzegovina is acquiring electric vehicles for Sarajevo.

At the EU level, the shift toward cleaner public transport is accelerating. According to Transport & Environment, 60% of all new city buses registered in the European Union last year were powered by electricity or hydrogen, underlining the pace of decarbonization in the sector.

March 3, 2026
by AEA in News

Renewable Gas Injections in the EU Rise to 4.3 bcm Over Two Gas Years, ENTSOG Reports

Renewable gas injections into natural gas grids across the European Union have climbed steadily over the past two gas years, reaching 4.3 billion cubic meters (bcm), according to the latest assessment by European Network of Transmission System Operators for Gas (ENTSOG).

The report, covering the period from October 1, 2023, to September 30, 2025, examines annual renewable gas injections into transmission and distribution networks. It encompasses both biomethane and renewable hydrogen.

Steady Growth in Renewable Gas Volumes

According to ENTSOG, renewable gas injections rose from 38.1 TWh to 43.2 TWh over the two most recent gas years—equivalent to approximately 4.3 bcm—representing an annual increase of 12%.

This marks ENTSOG’s second dedicated report on renewable gas injections into European gas networks. The first assessment was included in its 2024 Annual Report, published in April 2025, and covered data for the 2023–2024 gas year.

The latest growth was primarily driven by the commissioning of new biomethane plants and existing facilities reaching their nominal production capacity.

Renewable hydrogen injections remained limited. Germany was the only member state reporting hydrogen injection into its gas system, with volumes declining from 3 GWh to 1 GWh during the reporting period.

It should be noted that the report does not account for biomethane flows occurring outside transmission system operator (TSO) and distribution system operator (DSO) grids.

Biomethane Growth Without Major Infrastructure Investments

Piotr Kuś, ENTSOG’s General Director, emphasized that renewable and low-carbon gases can be readily integrated into existing natural gas infrastructure, supporting the transport of sustainable and secure energy molecules.

He stressed that gas TSOs will continue to provide the necessary infrastructure to facilitate the energy transition.

“In particular, biomethane market growth can be facilitated without the need for significant infrastructure investments. This growth is essential if we are serious about meeting the EU’s REPowerEU target of 35 bcm biomethane by 2030,” Kuś said, referring to the European Union’s REPowerEU objectives.

Five Countries Dominate Renewable Gas Injections

The distribution of biomethane injections varies significantly among EU member states. Five countries—France, Germany, Denmark, Italy, and Netherlands—accounted for 94% of total renewable gas injections, the report reveals.

Several member states reported no injections, in some cases due to on-site consumption of renewable gases that eliminates the need for grid injection.

Among the five leading countries, all recorded significant increases in biomethane injections into TSO and DSO grids during the last gas year.

France posted a 2 TWh rise in injections, reaching 13 TWh—approximately 1.3 bcm—by the end of the reporting period. The increase was attributed to the continued rollout of new injection points and the gradual ramp-up of production sites to full operational capacity, a process that often takes time following initial commissioning, according to the Report on Annual Renewable Gas Injections into Gas Networks.

February 28, 2026
by AEA in News

Albania’s Solar Surge: Capital Inflows, Grid Pressures and a Market in Transition

Photovoltaic energy is attracting capital at an accelerated pace in Albania, emerging as a new investment pillar for both traditional energy players and diversified business groups. With licenses granted for nearly 980 MW of solar capacity and hundreds of megawatts already operational, the market is undergoing a structural transformation—shifting from overwhelming dependence on hydropower toward a more diversified generation mix.

Private investment in the sector is estimated at around €1.5 billion, encompassing solar, wind and hydropower projects. Yet the rapid expansion is placing mounting pressure on existing infrastructure, highlighting the urgent need for parallel grid investments. Without reinforcement of transmission and distribution networks, the growth of photovoltaics risks outpacing the system’s capacity to absorb new output. Once again, the private sector appears to be moving faster than institutions.

When Albania first adopted its legal framework “On Renewable Energy Sources” in 2017, few anticipated the scale of transformation that would unfold less than a decade later.

From Slow Beginnings to Accelerated Growth

The early years of renewable development, particularly solar, were marked by bureaucratic hurdles, limited institutional experience and an energy market still in reform. The turning point came through two key developments.

First, market liberalization opened space for self-producers—an expanding segment entitled to install capacities of up to 500 MWp. Second, and more decisively, the global energy crisis that erupted in October 2021 dramatically reshaped market dynamics.

Post-pandemic raw material inflation, surging energy demand driven by economic recovery, and the war in Ukraine—triggering disruptions in Russian gas supplies—sent shockwaves through global energy markets. In 2022, prices reached record highs. Albania spent nearly €500 million on electricity imports, while on the Hungarian exchange—an important regional benchmark—prices peaked at €1,037 per MWh.

Although prices later retreated, volatility remains a defining feature of the market. This climate of uncertainty has become a major catalyst for new energy projects. Authorities report more than €2 billion invested in Albania’s energy sector in recent years. Currently, over 700 MW of private photovoltaic capacity is operational, alongside approximately 400 MW installed by self-producers.

The development pipeline could lift total photovoltaic and wind capacity to around 1,500 MW, while more than 1,600 MW of storage projects are under study or seeking financial facilitation.

Licensing and Market Structure

Despite numerous projects in various administrative stages, only a portion have secured production licenses. The Energy Regulatory Authority (ERE) has issued 71 production licenses for photovoltaic plants, totaling approximately 980 MW of installed capacity.

Most licensed projects fall within the sub-2 MW category, which benefited from a simplified regulatory framework introduced several years ago. These smaller plants were approved through accelerated procedures and supported by reference tariffs set periodically by the regulator. Electricity is purchased by OSHEE Group under a scheme similar to that applied to priority hydropower producers.

At the same time, a growing number of independent producers operate in the liberalized market. Supply liberalization has pushed thousands of businesses to secure electricity via private contracts, creating a stable demand base for new generators.

Solar projects also benefit from technical flexibility: they can be commissioned in phases, allowing electricity production before full completion of investment works.

Production Growth and Flagship Projects

Photovoltaic output rose sharply in 2025. According to preliminary data from INSTAT for January–September, the category “Other Producers”—which includes solar plants—generated 775 GWh, doubling year-on-year. Even compared to full-year 2024 output of 506 GWh, nine-month 2025 production was 53% higher.

Solar accounted for roughly 15.3% of Albania’s net electricity generation during the same period—more than double its 2024 share. This proportion is expected to rise steadily as new plants enter operation.

Among the largest projects is the 140 MW Karavasta solar park, developed by Voltalia. Additional operational projects include Blue (130 MW combined), Nova Solar System (50 MW) and multiple 20 MW facilities in Ersekë.

Projects under development include GreeNNat Solar Park Ballsh (100 MW), Faethon (78.6 MW), Sunny Side Energy (50 MW, part of the Kastrati Group), and the 100 MW Spitalla Solar park, also owned by Voltalia.

The rapid growth of solar capacity is gradually reshaping Albania’s electricity mix—historically dominated by hydropower—reducing exposure to imports and cushioning the impact of extreme price swings in international markets.

Year Energy Production (Thousand MWh)
2019 25
2020 35
2021 40
2022 52
2023 88
2024 506
2025 (9-Months) 775

European Bank for Reconstruction and Development: Strong Potential, Grid Constraints

The European Bank for Reconstruction and Development (EBRD) has been instrumental in supporting Albania’s renewable transition, advising the government on early photovoltaic auctions, including Karavasta—the country’s first large-scale solar plant.

Ekaterina Solovova, EBRD Resident Representative in Albania, has emphasized that the country’s solar potential remains considerable due to favorable geography and high solar irradiation. However, large-scale integration requires adequate transmission infrastructure.

Recent EBRD support includes sustainability-linked financing for OSHEE, restructuring short-term liabilities into longer-term financing to free up investment for grid upgrades. The bank is also cooperating with OST on EU grant-funded technical projects: closing the national transmission loop and modernizing the Fier substation—currently among the most congested solar zones—and developing a new cross-border transmission line with Kosovo to enhance regional interconnection.

Through initiatives such as the Renewable Energy Market Acceleration Program (REMA), the EBRD has supported the allocation of roughly 800 MW of new renewable capacity via Contracts for Difference (CfD) schemes.

Albania stands at a critical juncture: rich in renewable potential but constrained by infrastructure that requires substantial upgrading to ensure system stability.

European Investment Bank: Solar Could Reach 1 GW by 2030

Alessandro De Concini, EIB representative in Albania, notes that while Albania’s green credentials are strong, they remain vulnerable due to hydropower dependence and climate variability.

Solar capacity could reach 1 GW and wind 600 MW by 2030, supported by recent reforms easing licensing and auction procedures. However, climate risks—floods, fires and landslides—could cost up to 7% of GDP by mid-century.

Albania’s energy strategy prioritizes supply security, diversification, competition and environmental protection, aligned with EU legislation. The EIB’s forward plans include infrastructure modernization to ensure year-round supply security and price stabilization.

Investor Appetite and Market Diversification

Government-backed auctions—facilitating land access and streamlining procedures—sparked early investment during the pandemic. Yet a growing number of investors have entered the sector without subsidies, relying instead on private land, private power purchase agreements and market-based strategies.

Besnik Leskaj, founder of Blessed Investment Group, explains that detailed analysis of photovoltaic technology costs and regional price trends pointed to a favorable long-term risk-return profile. The group, alongside Matrix Konstruksion, has invested in fully private solar projects, emphasizing financial discipline and direct market exposure.

The Blue Parks, spanning 230 hectares with 263,000 smart panels, aim to build a 1 GW portfolio over the medium term, with 400 MW currently under development. Wind energy (two 25 MW projects) and battery storage systems are also part of the strategy.

Supporting Industries and Vertical Integration

The solar boom has stimulated domestic supply chains, from workforce training to mounting structure manufacturing. Companies such as Emante sh.p.k have expanded into producing Magnelis steel support structures for ground-mounted systems, supplying projects including Nova Solar (74 MW) in Seman and Info-Telecom (101.5 MW) in Ballsh.

Rapid sector growth is encouraging vertical integration, with firms expanding into mounting accessories and specialized structures to enhance added value.

End-of-Life Challenges

As solar installations multiply, long-term waste management is emerging as a strategic issue. Panels have a 25–30 year lifespan, meaning the first wave of mass installations will soon approach end-of-life. The International Energy Agency estimates panel waste could reach tens of millions of tons by 2050.

While recycling is technically feasible, it is often not yet economically competitive. The European Union mandates extended producer responsibility for collection and recycling, while China is scaling industrial recycling plants. The US and Japan are experimenting with high-value material recovery models.

Albania will need to address this issue proactively to ensure sustainability extends beyond generation.

Credit Growth and Corporate Performance

Energy and tourism have been the most dynamic sectors in recent years, reflected in rising bank lending. According to the Bank of Albania, outstanding credit to the energy sector grew 19% to 47 billion lek (€470 million) by December 2025, representing 9% of total business lending.

Karavasta Solar, managed by Voltalia, generated revenues of 3.5 billion lek in 2024 and profits of approximately 2 billion lek, with a 57% margin. The plant produced 258.3 GWh last year—3.2% of domestic net output and more than half of total solar generation, according to ERE. Under its 15-year contract, 70 MW is sold at a regulated tariff (€24.89/MWh) and 70 MW on the free market.

Spitalla Solar (100 MW) follows a similar structure, though progress has been slower.

Blue 1 (50 MW), commissioned in May 2024 at Sheq Marinas, Fier, operates entirely in the free market—one of the first large projects outside support schemes. Owned 51% by Blessed Investment and 49% by Matrix Konstruksion, it generated revenues of 680 million lek and profits of 380 million lek in 2024, producing around 72,000 MWh—roughly 15% of total solar output.

Other players, such as EZ5 Energy and Nova Solar System (50 MW), are reporting rapid revenue and profit growth, underscoring solar’s emergence as one of Albania’s most profitable and strategically significant industries.

Company Revenue (2023) Revenue (2024) Pre-tax Profit (2023) Pre-tax Profit (2024)
KARAVASTA SOLAR 450 17,000 408 2,000
EZ-5 ENERGY 412 1,422 83 265
SPV BLUE 1 266 679 102 379

Albania’s solar expansion reflects a decisive shift in its energy landscape—driven by private capital, catalyzed by crisis and increasingly supported by multilateral finance. The next phase will depend on grid modernization, storage deployment and responsible lifecycle management. If these elements advance in tandem, Albania could consolidate its position as a regional renewable energy hub.

February 28, 2026
by AEA in News

Electrica and Liberty Galați to Jointly Develop Up to 500 MW of Solar and Storage

Electrica — in which the Romanian Government holds a 49.8% stake — has signed a memorandum of understanding with Liberty Galați to develop up to 500 MW of combined solar generation and energy storage on land owned by the currently inactive steel works. The agreement, disclosed in a stock-exchange filing, sets out an operating model intended to maximise self-consumption, strengthen supply reliability and optimise long-term costs, the company said.

The proposed structure seeks to capitalise on the strategic complementarities between the two firms: Electrica brings experience as an electricity supplier, distributor and renewable investor, while Liberty Galați contributes the site footprint and industrial scale. The memorandum follows Electrica’s recent emergency move to assume the plant’s electricity supply contract — a step taken two weeks earlier to prevent disconnection over unpaid bills.

Electrica noted that cutting power to a blast furnace would effectively shut the facility down permanently. The steel works is the country’s largest, but is currently inactive, insolvent and carrying substantial debt.

Next steps include feasibility studies for the sites, which are located on land beside the Danube in eastern Romania, near the border with Moldova and Ukraine. According to Electrica’s update, the two parties would develop solar and storage assets with combined capacity of up to 500 MW, with detailed terms to be defined after the feasibility work is completed.

Electrica’s chief executive, Alexandru-Aurelian Chiriță, said the partnership is intended to leverage both companies’ technological and financial capabilities as a catalyst for change in Romania’s energy sector. “Final partnership terms are to be defined following feasibility studies and will be implemented once all corporate approvals are secured,” he said, adding that the initiative aims to create “a model of excellence adapted to current sustainability requirements” and to set a new performance benchmark for the national energy industry.

Earlier, Liberty Galați — part of the Liberty Steel Group — outlined a EUR 1 billion plan to reach carbon neutrality by 2030. When Electrica announced it would take over the plant’s power contract, Chiriță emphasised the strategic importance of preserving the works: “Not now, when Europe is rearming. Not now, when the reconstruction of Ukraine will require millions of tons of steel from our border. Not now, when European steel production can be a real competitive advantage for the first time in decades.”

Electrica supplies electricity to about four million end customers across 18 counties in Northern Transylvania, Southern Transylvania and Northern Muntenia. The group recently reported record preliminary results: consolidated net profit jumped 159% in 2025 to RON 1.22 billion (EUR 239 million), while EBITDA rose to RON 2.38 billion — 64.5% higher than the previous year.

On the renewables and storage front, Electrica currently operates 46.5 MW within a 307.5 MW renewables portfolio. The company also plans 19 energy storage facilities totalling 1.17 GWh and three modular, interoperable data centres as part of its broader transition strategy.

February 23, 2026
by AEA in News

The Asphalt Mirage: Corruption, Catastrophe, and the Cost of Albania’s Infrastructure

The investigation into Albania’s infrastructure sector reveals a systemic pattern where corrupt procurement, tailored tendering, and political nepotism directly cause structural failures and environmental catastrophes. Evidence suggests that billions in public funds are funnelled to a narrow circle of contractors through inflated contracts and non-transparent amendments, leaving a trail of collapsed bridges, sinking highways, and devastated river ecosystems. 

The Infrastructure Investment Boom: A Macroeconomic Mirage

Albania has recently undergone an unprecedented phase of capital expenditure, centered primarily on the expansion of its national road network and the modernization of urban infrastructure. This boom, however, has been built upon a foundation of Public-Private Partnerships (PPPs) and concessionary models that international financial institutions have repeatedly criticized for their lack of transparency and high fiscal risk. The mechanism of “unsolicited proposals” has effectively allowed private entities to dictate the government’s investment priorities, often resulting in projects that serve political interests rather than economic necessity.

The scale of this spending is vast, with the 2024 budget alone showing a projected increase in PPP contract payments from 13.1 billion ALL to 14.3 billion ALL. These payments are increasingly detached from physical progress; in several high-profile cases, the state continues to remunerate contractors for projects that are years past their delivery dates or which have suffered catastrophic structural failures before completion. The Department of State and the IMF have noted that these contracts are frequently awarded without genuine competition, a trend that has fostered a culture of impunity among politically connected companies.

The Librazhd–Prrenjas Collapse and Southeast Paralysis

The national road linking Librazhd to Prrenjas — a vital segment of Corridor VIII and the primary connection between Albania’s interior and the southeast — suffered a catastrophic collapse in mid-February 2026 that consigned the axis to full blockade for days. The collapse occurred near Arrat e Gurrës, where heavy rainfall, ground instability and riverbed pressure combined with ongoing works on the corridor.

Environmental and infrastructure failure:

  • Authorities and local media report that traffic on the Librazhd–Prrenjas national road was completely blocked, with only emergency vehicles allowed on the scene after a large landslide destabilised the carriageway.

  • A bridge immediately adjacent to the collapsed section reportedly continued to sink and shift even days after the initial failure measurements indicating an additional ~7 cm vertical displacement in a single morning — raising fears of full structural failure.

  • Alternative routes, such as the Maliq–Lozhan–Moglicë–Gramsh axis, were also impacted by secondary landslides blocking traffic and stranding motorists for 12 hours.

  • Gravel (inert) extraction deepens the channel and destabilises banks. Several academic and NGO reports and local investigative pieces  document how removal of gravels lowers the bed level, increases the river’s erosive power and causes lateral migration of the channel. For the Shkumbin and Vjosa basins, case studies and expert commentaries describe a direct linkage between large-scale extraction and increased flood and erosion risk.

    Shkumbin river bank

    Shkumbin river bank

  • Diverting small branches or altering floodplains without hydrological re-design undermines resilience. Journalistic reporting from Elbasan/Librazhd shows road alignments moved small tributaries and branches; experts quoted in coverage warned that ad hoc diversions, if not modelled, change sediment loads and scouring patterns downstream. An analysis by Citizens.al quotes hydrology and environmental experts who called the interventions “alarming.”
  • Inadequate protective works / as-built gaps. The World Bank / ARRSH environmental & social management documents for bridge and road resilience emphasize dikes, cross-drainage and designed retention structures. KLSH audits and field reporting noted that in several cases what was built on the ground did not match the originally planned protections, or supervision contracts were weak — a recipe for early degradation under flood conditions.

Local response and ongoing crisis:

A rural alternative rural road via Spathar–Antike Egnatia–Dardhë–Hotolisht quickly became the main lifeline for crossing to the southeast Albania after the collapse. However, heavy traffic revealed severe structural degradation on that route as well, with potholes, cracks and failing pavements undermining its reliability. Local users threatened to block the road unless urgent repairs were undertaken by responsible institutions.

Alternative secondary road Maliq-Gramsh collapses

Alternative secondary road Maliq-Gramsh collapses

Companies and works implicated:

The Librazhd–Prrenjas axis, before its collapse, was under maintenance and partial expansion activity by ANK sh.p.k.  the same company involved in other Corridor VIII lots while maintenance was previously under 2T sh.p.k.. Media accounts underscore that works were ongoing when the collapse occurred.

Journalistic field reporting described dredgers and heavy machinery operating in the Shkumbin River channel adjacent to the failed section even after the collapse, with interviews and video suggesting continuing erosion of the riverbed at that location.

The collapse effectively paralysed southeast Albania, halting passenger and freight transport for multiple days, forcing detours via less suitable rural roads, and incurring substantial economic disruption for cross-regional traffic. Emergency services, including ambulances and fire brigades, were at times not permitted to pass the blocked section due to safety concerns.

As of late February 2026 no official procurement or contractor statement responding specifically to the collapse had been widely disseminated in public reporting, though journalists repeatedly referenced previous tender histories and alleged links with political actors  , highlighting the need for direct replies from contractors and state agencies.

Qukës — Qafë Plloçë (Elbasan–Pogradec corridor) — long delays, amendments, maintenance tenders and infrastructure distress

A long-running mountain route linking Qukës to Qafë Plloçë, completed only after more than a decade of start–stop works and repeated contracts. It was presented as a major connectivity project when parts were inaugurated in 2025.

Deviation of the river

Deviation of the river

Procurement records & audits (selected):

  • ARRSH listings show “Mirëmbajtje me performancë e segmentit rrugor Qukës – Qafë Plloçë” (reference entries) with 2T sh.p.k. named as a winner for a maintenance contract (value reported ~29,359,200 ALL). Open procurement entries list the supervision and maintenance tenders with reference numbers (for example REF-62907-09-29-2025 for a supervision/maintenance notice).

  • The Supreme Audit (KLSH) produced a final audit report specifically on the Qukës–Qafë Plloçë road project; that audit documented contract delays, unconcluded milestones, and questionable contract modifications extending execution and funding beyond original schedules. The KLSH report is explicit: long time-lags, repeated addenda and inadequately justified time extensions.
  • Some lots were repeatedly modified and re-tendered, or winners were allowed to execute extensive “complementary” work after the original award. Journalists and auditors flagged the granting of addenda and follow-on maintenance tenders shortly after the road’s inauguration, raising questions about whether the original contract fully reflected the works required.

Technical failures & environmental consequences: within weeks of completion and inauguration, local journalists and watchdogs reported early settlement, need for new maintenance tenders, and concerns about whether river-bank protection and drainage had been implemented according to design — in other words: observed performance problems consistent with inadequate soil stabilization and river works in mountainous terrain. Expert commentary (below) links insufficient river protection and gravel extraction to downstream erosion risk.

New Roads Collapses in Albania

New Roads Collapses in Albania

Community impact & institutional posture: residents and local activists complained about recurring closures and the need for extra maintenance; ARRSH has issued routine statements saying the road is in operation and that maintenance tenders are normal post-completion actions. Auditors and watchdogs call those repeated tenders a sign of procurement and planning weakness.

The Rruga e Arbrit and the Murriz Tunnel Crisis

The Rruga e Arbrit (Arbri Road) was envisioned as a strategic corridor linking the capital, Tirana, with the eastern Dibër region and the border with North Macedonia. Instead, it has become the most prominent example of how geological negligence and financial expansionism coexist within Albanian public works. The project, which was initially promised to be completed by April 2021, remains a work in progress, mired in technical failures and escalating costs. 

The Murriz Tunnel Structural Failure

The primary bottleneck of the Arbri Road is the Murriz Tunnel. Technical assessments indicate that the choice of the tunnel’s path was made with insufficient geological data, leading to encounters with highly unstable soil and fragmented rock formations. As the contractor, Gjoka Konstruksion, attempted to drill through the mountain, the structure began to shift, threatening total collapse. 

Despite attempts to reinforce the tunnel with heavy piling and reinforced concrete, the movement remained uncontrollable. This led to a drastic and expensive pivot: the abandonment of the original path in favor of “Alternativa B,” a new tunnel bypass constructed in a different geological zone. This technical failure was not borne by the contractor but by the taxpayers, with the government approving an additional 20 million Euro payment to cover the redesign and new construction.

Financial Expansion through Secondary Tenders

The Arbri Road project demonstrates a sophisticated method of cost inflation known as the “secondary tender” or “revitalization” scheme. Once the initial PPP contract valued at approximately 40.3 billion ALL was locked in, the government began issuing secondary contracts to the same contractor for works that should have been covered by the original project’s risk assessment.

Specifically, a tender for the “revitalization of slopes” was awarded to Gjoka Konstruksion shpk, effectively serving as an addendum to the original contract. This mechanism allowed the project’s annual cost to rise from 2.8 billion ALL to 3.5 billion ALL in the 2024 budget. Critics argue that these “slope revitalization” works are merely a way to pay for repairs caused by the contractor’s own poor engineering and lack of environmental safeguards during the initial excavation.

The Korçë-Ersekë Highway and the Qafa e Qarrit Collapse

If the Arbri Road represents chronic failure, the Korçë-Ersekë highway represents acute disaster. In February 2024, a massive section of the newly built road at Qafa e Qarrit-Mollas collapsed into a deep ravine, leaving the asphalt suspended in mid-air. The collapse occurred on Loti 2, Part 1, a segment that had been touted as a masterpiece of modern engineering but which failed before its official inauguration. 

Procurement Irregularities and Political Connectivity

The contract for the construction of Loti 2 was awarded to A.N.K. sh.p.k., a company owned by Agim Kola. Investigative media have highlighted that Agim Kola is the brother of Ndue Kola, a former Member of Parliament for the ruling Socialist Party. The tendering process for this project (ID: REF-21837-03-11-2022) exhibited classic “red flag” symptoms: four companies participated, but three were disqualified for minor technicalities, leaving A.N.K. as the sole bidder with an offer just 0.03% below the government’s fund limit.  

The project’s costs have grown exponentially. What was originally discussed as a 1 million Euro per kilometre project eventually reached 5 million Euro per kilometre for specific segments. Despite this massive investment, the structural integrity of the road was compromised by what engineers describe as a “falsified project” that failed to account for soil drainage and the weight of the fill materials.   

The Role of the Project Supervisor

A&E Engineering shpk, owned by Entela Çano, was tasked with both designing and supervising the works on the Korçë-Ersekë road. This dual role created an inherent conflict of interest; the firm responsible for ensuring the quality of the construction was the same firm that had authored the potentially flawed design. SPAK has since taken Entela Çano and several officials from the Korçë and Kolonjë municipalities as defendants, alleging that they certified fictitious or substandard works that directly led to the collapse.

Unaza e Madhe and the “DH Albania” Scandal

The Tirana Outer Ring project, known as Unaza e Madhe, is perhaps the most egregious example of how the Albanian infrastructure sector has been exploited by “ghost” entities. The project’s cost, averaging 15 million Euro per kilometer is widely considered the highest in the region for a road of its class.   

Forgery and Institutional Failure

The scandal surrounding “DH Albania” exposed a profound lack of oversight within the Albanian Road Authority (ARRSH). In 2018, it was discovered that this company had secured an 18 million Euro contract for a segment of the ring road using forged documents from the Secretary of State in Delaware, USA. The documents falsely claimed the company had years of experience and significant capital, allowing it to bypass the vetting process. The fact that such a blatant forgery was accepted by the Ministry of Infrastructure suggested that the “checks and balances” were being bypassed by design rather than by error. 

Predetermined Tendering and Tailored Equipment

The procurement for Unaza e Madhe has frequently been characterized by “tailored criteria.” In one notable instance, a tender required participants to have a 450-ton crane in their inventory. Experts noted that such a crane was entirely unnecessary for the urban roadwork required, but its inclusion served as a mechanism to disqualify any firm that did not have that specific, rare piece of equipment, effectively narrowing the field to one or two favoured companies.  

Further investigations by SPAK into “Loti 4” of the ring road have focused on the communications of Evis Berberi, the former head of ARRSH. Messages retrieved from his phone allegedly show that the winners of these multi-million euro tenders were decided in private meetings long before the official bidding process began. 

Environmental Analysis: River Diversions and Infrastructure Destabilization

The degradation of Albania’s infrastructure cannot be separated from the unchecked manipulation of its river systems. To lower costs and maximize profits, contractors frequently divert rivers to facilitate road construction or to provide a convenient source of free aggregate materials (gravel and sand). These actions, often taken without valid Environmental Impact Assessments (EIAs), have catastrophic consequences for both the environment and the infrastructure itself.

New Roads Collapses in Albania

The Erzen River and the Sukth Flood Pattern

The Erzen River has been subject to numerous “embankment reinforcement” projects that have ultimately failed during peak rainfall. In the administrative units of Sukth and Katund i Ri, the river has repeatedly breached its banks, not due to the volume of water alone, but due to the poor quality of the man-made embankments.   

Investigative reports have documented cases where contractors, hired to build flood defenses, instead used the opportunity to dredge the riverbed, undermining the very banks they were paid to protect. When the embankments fail, the resulting floods do more than destroy crops; they cause road subsidence and the “scouring” of bridge foundations, creating a feedback loop of infrastructure destruction and emergency repair spending.  

New Roads Collapses in Albania

New Roads Collapses in Albania

Illegal Road Works in Protected Ecosystems

The case of the Mayor of Tropoja, Rexh Byberi, illustrates a broader trend of “rogue” infrastructure projects. SPAK’s investigation found that several road projects in the Tropoja region, including the “Palç-Guri i Lules” and “Qafë Murrizi-Qafë Agri” segments, were conducted in total violation of environmental laws. These projects lacked environmental impact reports and were initiated without the mandatory coordination with the National Environment Agency. The resulting landslides and erosion have not only damaged the new roads but have also permanently altered the hydrology of the surrounding slopes.

New Roads Collapses in Albania

The Procurement “Red Flag” Framework

A systematic review of the Albanian public procurement database reveals a consistent set of “red flags” that characterize high-risk infrastructure contracts. These mechanisms are designed to maintain a facade of legality while ensuring that the outcome of a tender is predetermined.

1. The Disqualification Tactic

The most common indicator of a rigged tender in Albania is the disqualification of all bidders except one. Often, these bidders are disqualified for failing to submit a single, non-essential document. This allows the remaining firm the pre-selected winner to secure the contract with a bid that is within 0.01% of the government’s maximum fund limit.   

2. The Use of Shell Companies and “Ghost” Partners

As seen with “DH Albania,” the use of offshore entities or newly formed shell companies allows the real owners (often political figures or their relatives) to shield themselves from public scrutiny.  

3. Systematic Addenda and “Unexpected” Costs

Contracts are frequently modified shortly after being signed. In the case of the Korçë-Ersekë road, a modification was approved for “project revisions” and “taban improvement” just months after the initial award, adding over 432 million ALL to the price tag. This is often used to circumvent the initial “fund limit” of the tender.

New Roads Collapses in Albania

New Roads Collapses in Albania

Tuneli i Llogarasë (Orikum–Himarë / SH8) — supervision contract, disputed procedures and a SPAK probe

Construction of a new Llogara tunnel as part of the SH8 coastal route. The works included an important supervision services contract (fee-based oversight of tunnelling works).

Procurement record (key facts): the supervision tender was issued with a ceiling (fund limit) of 196,240,667 ALL (approx. €1.6–2.0m depending on exchange) under REF REF-12982-11-24-2021; the winner announced was the joint offer Hill International N.V. & NetGroup sh.p.k., with a reported winning value of 194,700,000 ALL. Open procurement records list the tender and the reference number.

Media reporting and documents obtained by prosecutors say the tender’s selection criteria were allegedly adjusted in ways that narrowed the field (for example, lowering experience thresholds in some steps), and that lower monetary bids were disqualified on technical grounds. Investigative articles cite messages and evidence later seized in the SPAK probe.

SPAK opened an investigation into the tender and into a broader set of contracts connected to the same officials; the dossier includes seized documents from the winning supervision firm. Prosecutors have charged several officials linked with road authority decision-making. The public prosecution statements and extensive reporting show criminal inquiries are active.

Technical / environmental consequences: reporting raised questions about the quality and independent oversight of the tunnelling works, and whether supervision met the standard expected for a high-risk mountain tunnel. Local technical correspondence cited in reporting suggests site inspectors flagged deviations. At the time of writing SPAK’s indictments and the technical inspection reports remain the primary sources to verify whether any design or execution defects caused safety issues; these are part of the court file.

Community impact & official response: the tunnel was inaugurated and put into operation; nonetheless, the SPAK investigation and media reports prompted public debate about whether procurement shortcuts and the supervision contract’s selection undermined safety and value for money. The Ministry/ARRSH have provided routine project updates while SPAK holds the criminal file.

New Roads Collapses in Albania

The destruction and structural failure of Albania’s infrastructure are not isolated technical errors; they are the physical manifestations of a compromised procurement system. The evidence demonstrates a clear causal chain: tailored tenders lead to the selection of incompetent but politically connected contractors; these contractors, in turn, bypass environmental and engineering standards to maximize profit; and the resulting infrastructure—built on shifting soil and forged documentation inevitably collapses under the first pressure of nature.

The financial toll on the Albanian taxpayer is immense, with billions of ALL locked into 30-year PPP commitments for roads that may not survive a decade. Furthermore, the environmental damage—ranging from altered riverbeds to decimated forests represents a permanent loss for the nation. Until the “red flag” mechanisms of procurement are addressed through radical transparency and the removal of the “unsolicited proposal” loophole, Albania’s infrastructure will continue to be a façade of modernity masking a hollow core of systemic corruption.

February 20, 2026
by AEA in News

Montenegro Achieves Regulatory Milestone: Full Alignment with EU Electricity Integration Package

In a significant leap toward European energy integration, Montenegro has officially completed the transposition of the European Union’s Electricity Integration Package (EIP). According to the Energy Community Secretariat, this regulatory alignment positions Montenegro alongside Moldova and Serbia as frontrunners in the Western Balkans’ effort to merge with the European single electricity market.

The move is designed to catalyze Montenegro’s energy transition by enhancing market competitiveness and ensuring the country can participate in regional power exchanges even before formal EU accession.

The Gateway to Market Coupling: SDAC and SIDC

The primary objective of transposing the EIP is to enable Market Coupling. By harmonizing its domestic laws with EU standards, Montenegro is preparing to join two critical pillars of the European energy infrastructure:

  • Single Day-Ahead Coupling (SDAC): A mechanism that optimizes electricity prices and cross-border flows across Europe for the following day.

  • Single Intraday Coupling (SIDC): A continuous trading environment that allows market participants to adjust their positions as close to real-time as possible.

This integration is expected to lower costs for consumers, provide clearer signals for renewable energy investors, and significantly bolster the security of the national supply.

The Legislative Roadmap

The finalization of this process occurred on February 15, 2026, when the Montenegrin government adopted two pivotal decrees governing:

  1. System Operation: Establishing technical rules for grid stability.

  2. Emergency and Restoration: Outlining protocols for grid recovery during unforeseen outages.

These decrees complement existing legislation, including the Law on Energy and the Law on Cross-Border Exchanges in Electricity and Natural Gas. Together, these legal frameworks form the “four pillars” identified by the Secretariat as essential for a cost-efficient clean energy transition:

  • Clear investment signals.

  • Strengthened regional cooperation.

  • Reinforced fair competition.

  • Enhanced security of supply.

The Path to Verification

While the legislative work is complete, Montenegro now enters the Verification Phase. This process involves a rigorous audit by the Energy Community Secretariat and the European Commission to ensure that the laws on paper translate into functional market practices.

Country Status of EIP Transposition Verification Phase
Serbia Completed In Progress (Started Oct 2025)
Moldova Completed Initiating
Montenegro Completed Pending Request
North Macedonia Partial Pending Legislation

“Montenegro is now stepping up efforts to submit a formal request initiating the verification process,” the Secretariat noted, echoing recent sentiments from Director Artur Lorkowski regarding the rapid progress of the “Vienna Group” of energy reformers.

Expert Analysis: What This Means for the Region

For a small economy like Montenegro, market coupling is a “force multiplier.” By removing the barriers to cross-border electricity trade, the country can better manage the intermittency of new wind and solar projects. This regulatory bridge to the EU not only modernizes the grid but also makes Montenegro a more attractive destination for “green” capital, as energy produced domestically can now be more easily sold into the massive European market.

February 20, 2026
by AEA in News

KESH partners with France’s EDF and AFD to develop Albania’s Energy Storage Roadmap

Tirana — In a decisive move toward modernizing its national grid, the Albanian state-owned power utility, KESH (Albanian Electric Power Corp), has finalized a strategic partnership with Électricité de France (EDF) and the French Development Agency (AFD). The collaboration focuses on the development of a comprehensive energy storage strategy, underpinned by a €400,000 grant earmarked by the AFD.

This initiative arrives at a critical juncture for Albania. While the country boasts a near-total reliance on renewable hydropower for domestic production, its lack of grid-scale energy storage remains a significant structural vulnerability. As the global energy transition demands higher flexibility, the partnership aims to bridge the gap between Albania’s current hydro-centric model and a diversified, resilient future.

Engineering Flexibility: The Scope of the Partnership

The primary objective of the agreement is to identify and evaluate the most effective storage technologies suited for Albania’s existing infrastructure. The resulting study will serve as a technical blueprint for the nation’s Energy Storage Strategy, focusing on several key pillars:

  • Renewable Integration: Facilitating the entry of solar and wind energy into a grid historically dominated by water power.

  • System Modernization: Increasing the security of supply and enhancing operational flexibility.

  • Climate Resilience: Improving the long-term sustainability and management of Albania’s vital water resources and assets.

The technical expertise for this transition will be provided by the French state-owned giant EDF, a global leader in low-carbon energy, while the AFD continues to expand its financial and developmental footprint across the Western Balkans.

High-Level Diplomatic Support

The signing ceremony was attended by Nicolas Forissier, the French Minister Delegate for Foreign Trade and Economic Attractiveness. Minister Forissier emphasized that this agreement underscores Albania’s status as a priority partner for France, reflecting Paris’s commitment to supporting the country’s integration into the European Union through the mobilization of technical and financial instruments.

Under the leadership of Viola Haxhiademi, who assumed the role of CEO in late December, KESH is positioning itself to manage significant future capacities. Currently, planned projects—including KESH’s pumped storage capacity in the Drin (Drim) cascade and Statkraft’s Moglica project—represent a potential 1.6 GW of storage capacity.

A Continuing Collaboration

This latest deal builds upon an existing relationship between KESH and the AFD. Last year, the two entities signed an agreement focused on the advanced management of the Drin River cascade, the backbone of Albania’s energy sector. By adding a formal storage strategy to this framework, Albania is taking a sophisticated step toward aligning its energy sector with EU standards and the exigencies of the green transition.

February 20, 2026
by AEA in News

Albania as a Regional Outlier: Diesel Dominance Persists Amid Europe’s Green Transition

New data from Eurostat reveals a significant divergence in automotive trends between Albania and the European Union. While the EU moves aggressively toward decarbonization, Albania has emerged as the country with the highest share of diesel-powered vehicles among first-time passenger car registrations in 2024.

This trend stands in sharp contrast to the broader European trajectory, where environmental regulations and technological shifts are rapidly phasing out internal combustion engines in favour of electric and hybrid alternatives.

The Data: A Stark Statistical Divide

According to Eurostat’s latest report on transportation, 66.2% of all passenger vehicles registered for the first time in Albania during 2024 were diesel-powered. To put this in perspective, the EU average for diesel registrations has plummeted to just 14.9%.

The regional comparison further highlights Albania’s unique position:

  • Albania: 66.2% diesel share

  • Moldova: 47.0%

  • Bosnia and Herzegovina: 34.5%

  • Other Balkan neighbors: Generally below 30% (excluding Kosovo and North Macedonia, for which data was unavailable).

In absolute numbers, out of the 85,700 passenger vehicles registered for the first time in Albania in 2024, approximately 56,700 were diesel. Conversely, gasoline vehicles accounted for only 17.6% of registrations—one of the lowest shares in Europe—while electric vehicles (EVs) represented a mere 3.3% of the total.

The European Shift Toward Electrification

The European landscape tells a completely different story. The transition to Battery Electric Vehicles (BEVs) is accelerating, driven by the EU’s ambitious climate goals to reduce the 27% of greenhouse gas emissions currently attributed to transport.

  • Denmark: Over half (51.3%) of new registrations are fully electric.

  • Sweden, Malta, and the Netherlands: EVs account for more than one-third of the market.

  • EU Average: Electric vehicle registrations reached 13.5% in 2024.

Looking back at the decade between 2014 and 2024, the shift is even more dramatic. In 20 representative EU countries, the registration of diesel vehicles fell by 67%, while registrations for fully electric cars grew by 45 times, moving from a negligible 0.3% share in 2014 to nearly 14% today.

Why is Albania Lagging Behind?

The dominance of diesel in Albania is not a matter of consumer preference alone but is rooted in several structural and economic factors:

  1. Second-Hand Market Dominance: The Albanian market is heavily reliant on imported used cars from Western Europe. As EU consumers sell off their older diesel models to switch to EVs, these vehicles often find a second life in the Albanian market.

  2. Initial Cost Barriers: The upfront cost of electric or hybrid vehicles remains high compared to older diesel models, making them less accessible to the average Albanian consumer.

  3. Infrastructure Gaps: The national charging network for electric vehicles is still in its infancy, leading to “range anxiety” and deterring potential EV buyers.

  4. Policy Incentives: There is a lack of robust fiscal incentives or subsidies to encourage the adoption of “green” vehicles compared to the aggressive tax breaks seen in EU member states.

Looking Ahead

While Albania remains a diesel stronghold for now, the European trend is inevitable. As EU emission standards tighten and the production of internal combustion engines scales down, the supply of diesel vehicles will eventually dwindle.

For Albania to bridge this gap, experts suggest a dual approach: investing in charging infrastructure and implementing fiscal policies that make cleaner alternatives more competitive. Without these interventions, Albania risks becoming a “parking lot” for Europe’s aging, high-emission fleet.

February 19, 2026
by AEA in News

Slovenia’s GEN-I Group Goes Global with Launch of North American Trading Hub

Slovenia’s GEN-I Group Goes Global with Launch of North American Trading Hub

Slovenian energy leader GEN-I has officially expanded its footprint across the Atlantic, announcing the establishment of its first U.S.-based subsidiary: GEN-I Trading North America LLC.

Headquartered in Houston, Texas—a premier global energy hub—the move marks a transformative milestone for the group, elevating it from a regional European player to a global energy trader. With this expansion, GEN-I now maintains active operations in 27 countries across multiple continents.

Strategic Foundation and Market Entry

The launch follows a rigorous preparation period in 2025, during which the firm finalized its trading, regulatory, and human resources infrastructure. According to Igor Koprivnikar, Member of the Management Board, the Houston office is staffed by a specialized team that blends international trading experience with local market expertise.

GEN-I aims to leverage its proprietary digital solutions and advanced trading models to capture growth in the high-liquidity U.S. market. The company views the American energy landscape as a prime environment for value creation, particularly through its focus on innovation and data-driven trading strategies.

A Vision for “Small Country” Global Leadership

For Maks Helbl, President of the Management Board, the expansion is a validation of the company’s technical maturity. He characterized the move as a strategic effort to prove that firms originating from smaller nations can significantly influence the global energy future.

“The expansion into the USA is a milestone in GEN-I’s evolution into a global energy trader operating across multiple continents. It is a significant recognition of our expertise, reliability, and innovation.” — Maks Helbl

Momentum in Energy Storage

While expanding its geographic reach, GEN-I continues to deepen its technical capabilities in Europe. Over the last quarter, the firm has secured two landmark agreements in Bulgaria and Romania, both focused on the deployment of Battery Energy Storage Systems (BESS). These projects underscore the company’s dual strategy: expanding its trading reach while investing in the physical infrastructure necessary for a flexible, renewable-led grid.

February 19, 2026
by AEA in News

Fortis Energy and EBRD Partner to Finance Landmark 270 MW Solar-plus-Storage Project in Serbia

Fortis Energy and EBRD Partner to Finance Landmark 270 MW Solar-plus-Storage Project in Serbia

In a significant move for the Western Balkans’ energy transition, Fortis Energy has formalized a mandate letter with the European Bank for Reconstruction and Development (EBRD). The agreement initiates due diligence and structured negotiations for the long-term financing of a 270 MW solar photovoltaic (PV) plant, integrated with a 72 MWh battery energy storage system (BESS).

Located in the city of Sremska Mitrovica, west of Belgrade, the project is set to become the largest solar facility in both Serbia and the broader region.

Strategic Importance and Regional Impact

The mandate letter, signed by Fortis Energy’s leadership and the EBRD’s Sustainable Infrastructure Group, establishes the preliminary terms for a project aimed at bolstering Serbia’s national grid. According to Fortis Energy, the facility is a “demonstration of bankability,” signaling that large-scale renewable assets in Southeast Europe can meet rigorous international environmental and social sustainability standards.

The Sremska Mitrovica plant is expected to deliver substantial environmental and social benefits:

  • Annual Output: Estimated at over 365 GWh of clean electricity.

  • Household Impact: Capable of powering more than 105,000 households annually.

  • Carbon Mitigation: Forecasted to avoid approximately 182,000 tons of CO2​ emissions per year.

Construction is scheduled to begin in the third quarter of 2026, with full commissioning targeted for the first quarter of 2028.

Technical Breakdown and EPC Partnerships

The development is being executed in phases. Earlier this year, Fortis signed an Engineering, Procurement, and Construction (EPC) contract with Kontrolmatik Technologies for the first phase, known as Noćaj 1.

Phase/Project Solar Capacity (MWp) Grid Connection (MW) Storage Capacity (BESS)
Noćaj 1 135 MW 90 MW 36 MWh
Full Sremska Mitrovica 270 MW — 72 MWh
Erdevik (Proposed) 100 MW 74 MW 30 MWh

Fortis Energy and EBRD Partner to Finance Landmark 270 MW Solar-plus-Storage Project in Serbia

In a significant move for the Western Balkans’ energy transition, Fortis Energy has formalized a mandate letter with the European Bank for Reconstruction and Development (EBRD). The agreement initiates due diligence and structured negotiations for the long-term financing of a 270 MW solar photovoltaic (PV) plant, integrated with a 72 MWh battery energy storage system (BESS).

Located in the city of Sremska Mitrovica, west of Belgrade, the project is set to become the largest solar facility in both Serbia and the broader region.

Strategic Importance and Regional Impact

The mandate letter, signed by Fortis Energy’s leadership and the EBRD’s Sustainable Infrastructure Group, establishes the preliminary terms for a project aimed at bolstering Serbia’s national grid. According to Fortis Energy, the facility is a “demonstration of bankability,” signaling that large-scale renewable assets in Southeast Europe can meet rigorous international environmental and social sustainability standards.

The Sremska Mitrovica plant is expected to deliver substantial environmental and social benefits:

  • Annual Output: Estimated at over 365 GWh of clean electricity.

  • Household Impact: Capable of powering more than 105,000 households annually.

  • Carbon Mitigation: Forecasted to avoid approximately 182,000 tons of CO2​ emissions per year.

Construction is scheduled to begin in the third quarter of 2026, with full commissioning targeted for the first quarter of 2028.

Fortis Energy’s Growing Regional Footprint

Headquartered in the Netherlands with key operational hubs in Istanbul and Belgrade, Fortis Energy is aggressively pursuing its goal of becoming a premier Green Baseload Independent Power Producer (IPP).

Beyond Sremska Mitrovica, the company is advancing a robust pipeline:

  • Erdevik, Serbia: A planned 100 MW hybrid plant with 30 MWh of storage.

  • Erseka, Albania: A 75 MW solar project with 25 MWh of storage, currently under construction.

  • Portfolio Growth: Fortis currently operates over 200 MW of renewable assets, with an additional 500 MW slated for deployment through 2027.

By integrating storage with solar and wind assets, Fortis is positioning itself to provide stable, renewable energy across Southeast Europe, supporting the region’s broader decarbonization objectives.

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AEA – Albania Energy Association is a industry association dedicated to representing the interests of Albanian and West Balkan for energy producers and consumers. AEA works to advance the development and adoption of sustainable energy solutions in Albania and the Western Balkans, supporting the region’s transition toward a cleaner, more secure, and more competitive energy future. AEA is registered by decision of the Court of Tirana, DECISION NO. 3032, (VAT:L11827451K).

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