Five companies signed on Friday in the Ministry of Economy agreements for construction of 12 small hydroelectric power plants from the fourth public announcement for production of electricity from small hydroelectric stations.

Agreements for water concessions for electricity production were signed with EMK Small Hydroelectric Stations for 4 locations, Italian-Macedonian Power Generation for four locations, EL-TE Engineering for 2 locations, Hydro-Eco Engineering for one location and Nord Energy for one location as well.

"It is envisaged these hydroelectric power plants to have a total installing power of 13.6 megawatts (MW) and an annual production of 57 gigawatt hours (GWh) of electricity and to cost 23.5 million euros, Minister of Economy Fatmir Besimi said after signing the agreements.

He noted that over 100 million denars would flow in the country's budget.

"Together with the previously signed 35 agreements from the initial three public announcements, now there are 47 agreements for construction of small hydroelectric power plants with a total installing power of 34.5 MW and an annual production of 147 GWh," the Minister stated.

In the next three years, he added, investments in amount of 62 million euros should be realised and 230 million denars to be injected in the budget.

The Ministry of Economy will publish the fifth announcement for construction of small hydroelectric power plants by the end of February, which will offer new 40 locations with a total installing power of 30 MWh.

Small hydroelectric power plants in 2009 produced 168 and 249 GWh of electricity in 2010. Production is expected to increase by 80% with the construction of new small hydroelectric plants.