Albania to work with German firm on power line to Italy
TIRANA Wed Feb 25, 2015

Feb 25 (Reuters) - Albania signed a deal on Wednesday with German project management firm Max Streicher to create a company to build a 200 million euro ($227.1 million) power line to Italy.

The deal signed in Munich, Germany, will see Max Streicher act as leader of a group that will conduct a feasibility study, secure financing and bring on board other investors, the Energy Ministry said.

"The realisation of this project creates bigger possibilities for further investments in the energy sector in Albania, especially renewable energy," the ministry added.

It said "the European Union considered the project of great interest because it fostered energy security and integrated the region of South Eastern Europe to the European energy market".

NATO-member Albania was granted candidate status to join the European Union last year.

The government has started a campaign to fight electricity theft and upgrade the network to bring the embattled sector to profitability.

Albania lies across the Adriatic Sea from Italy; the closest distance between them being just 60 miles. The Trans Adriatic Pipeline (TAP), which will bring Azeri gas to Europe, passes via Greece and Albania to Italy.

The deal with Max Streicher comes after Germany financed -- half as a loan and half as a grant -- the building of 400-kV transmission line in 2013 linking the grids of Albania and Kosovo.

($1 = 0.8807 euros) (Reporting by Benet Koleka; Editing by Mark Potter)