Albania signed a contract with an Italian company on Friday to build an oil-fired thermo-plant in the south-west of the country, a first major attempt to diversify Albania's power generation.

Italy's Mair Engineering SpA, who was awarded the 92 million- euro (119.7 million dollars) contract, is expected to start the construction this March in Vlora, a sea-port town on the Adriatic, and finish the job in 18 months.

The plant's energy production is estimated to reach up to 100 WMh, covering 15 percent of the country's power needs and making the country relying less on hydropower which stands for 90 percent of its electricity consumption.

Lack of rainfall and decreased power exports from its Balkan neighbors plunged the small western Balkan country into darkness last December, leaving the country with power cuts ranging from 5 hours to 14 hours a day since.

Source: Xinhua