The Eastern European country of Albania, signed a deal with German project management firm Max Streicher this week, to create a company that will build a € 200 million ($227.1 million) power line to Italy, reports Reuters.

The signing took place in Munich and was attended by Albanian minister of Energy and Industry, Damian Gjiknuri.

According to Albania’s Energy Ministry, the German firm will lead a consortium which will conduct a feasibility study, secure financing and bring on board other investors for the project.

The Albanian prime  minister Edi Rama, took to his twitter account, in support deal saying: “An agreement was signed in Germany on a power line connection with Italy. This is key to energy restoration in the country”

Albania’s geographical location allows gas to be piped to Europe, through the Trans Adriatic Pipeline (TAP) and passes via Greece and Albania to Italy.

The Energy Ministry added: “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”.

The deal builds on the relationship between Germany and Albania, when in 2013, Max Streicher, financed the construction of a 400kV transmission line – linking the grids of Albania and Kosovo.

Albania’s government has also begun a campaign to tackle electricity theft and upgrade its network in a bid to retain profitability in the electricity sector.