The ESB's international division has won an €8.8 million contract in Kosovo.

ESB International won the contract despite competition from US, German and British consortiums.

The contract is sponsored and supported by the UN Mission in Kosovo.

The disruption caused by the ethnic conflict in Kosovo from 1998 had a major impact on the electricity sector there. Since that time, the European Union and several international donors have been trying to re-establish the mining and electricity industries.

ESB will be working with the Kosovan electricity company KEK for the first two years of the contract, helping it to increase its operations across the province. Local employees will be trained as part of the contract.

The ESB's chief executive, Mr Padraig McManus, said: "The contract adds to ESB International's recent successes and growing reputation in the Balkan region, where contracts have been secured in Bulgaria, Romania, Croatia, Bosnia, Serbia and Montenegro."

ESB International's manager, Mr John Ashley, will lead a management team that will oversee the operations of KEK for an initial two-year period.

According to Mr Liam Walsh, spokesman for ESB International: "The knowledge-transfer and training of local employees is a key aspect of the contract in ensuring the future sustainability of KEK."