The National electricity company of Bulgaria NEC could utilize the lower night consumption of energy in the country for not to stop the exportation of the electicity in the region. During the night Bulgaria consumes 30% less electricity which could have significant economical value, said the chairman of the Central Dispatcher Governance at NEC Mitjo Hristozov. To this time there aren't any orders from the neighbor countries for night current delivery. That means Bulgarian electricity exports depend entirely on the water reserves in the dam lakes. By good coincidence and rainfall in Bulgaria during the year the expected exports are about 20% of the electricity exports in 2006. If Bulgaria does not export electricity, it would cost the national budget EUR 20 millions monthly
Source: Darik Radio (04.01.2007)

Local mining companies Maritsa Iztok, Bobov Dol, Chukurovo, Beli Breg and Cherno More will increase the price at which they supply coal to the thermal power plants in Bobov Dol and in the Maritsa Iztok basin, found a Dnevnik check. The Maritsa Iztok mines will adjust prices upwards by 5-6 per cent to reflect higher fuel costs and recent inflationary gains.
Source: Dnevnik (09.01.2007)

Mining company Maritsa Iztok said coal production rose 3 per cent to 21.5 mln tons in '06, overshooting the full-year target of 20.7 mln tons. The company plans to extract 21.3 mln tons of coal in '07. This year's output target is based on orders placed by the power stations operating in the Maritsa Iztok coal basin.
Source: Dnevnik (11.01.2007)

A total of 12% of the electricity generated in Bulgaria has to come from renewable sources by 2012, according to the European directives. Currently the share of green energy is about 10%. To encourage the construction of facilities generating electricity from renewable energy sources, the National Electric Company (NEK) is obliged to buy out the whole quantity of power produced at preferential pries. Currently the buy-out rates are about 80% of the price for end-consumers, or BGN 80 per mW. At the end of 2006 the government approved a bill on encouraging electricity from renewable sources. Besides the preferential prices, the document includes NEK's obligation to close 12-year contracts for the buy-out of such electricity. That guarantees entrepreneur's business and return of investments. There are also credit lines in Bulgaria, which envisage up to 20% of the loan to be provided as a grant to companies building wind and solar generators and hydro power plant in the permitted areas. The ministry of environment and water is responsible for controlling the construction of wind mills, hydro power plants and solar generators to ensure that there are no hazardous consequences for the environment. The ministry, however, could not say how many permits had been issued for such facilities. According to experts, when the Natura 2000 environmental network becomes effective, some of the existing energy parks will change their location.
Source: Pari (12.01.2007)

Bulgaria's nuclear power plant in Kozloduy, on the Danube, said it has started the construction of a hydro power station. The 5MW twin-turbine power station is located on the canal supplying water for the cooling of the NPP units. Energoremont Holding will install the turbines that will be delivered by Czech company Mavel. The facility, with an estimated cost of EUR 8 mln, will generate 40 mln kWh of electricity annually which will be purchased by the Kozloduy NPP at a preferential tariff. Under Bulgarian law, no power generation permit is required for the launch of facilities with up to 5MW capacity. The Kozloduy NPP recently applied for a power trading permit from the State Energy and Water Regulatory Commission.
Source: Dnevnik (15.01.2007)

Railway carrier BDZ and the National Railway Infrastructure Company (NRIC), both state-owned, will list for sale some 30 properties with a collective value of around BGN 100 mln in 2007. The government will discuss Thursday the proposal for the property disposals moved by transport minister Petar Mutafchiev. Among the more attractive of the properties that will be offered for sale are the Pioner, Serdika and Pomorie train stations, a 3.5 ha land plot in Sofia’s Iliyantsi residential district and the Dobrich North train station which will be sold together with a 3.0 ha land plot. The Pioner train station occupies 6.0 ha and is valued at BGN 24 mln. Serdika has an area of 5.0 ha and is valued at BGN 40 mln. The managements of both train stations acknowledged the immense investor interest towards the properties. BDZ expects proceeds of at least BGN 15 mln from the sale of 11 properties. The cash is earmarked for debt repayment and the repair of railcars. NRIC executive director Anton Ginev forecast proceeds of around BGN 80 mln from the sale of redundant properties. The money raised this way will be invested in the modernisation of the national railway network.
Source: Dnevnik (18.01.2007)

The Varna thermal power station, owned by Czech CEZ, will switch to natural gas in the case of a coal supply shortage, said the company's executive director Ivan Bachvarov. The power station has sufficient coal supplies to meet its reserve capacity mechanism obligations towards national power utility NEK. Coal consumption at the plant totalled 1.3 mln tons in '06, 1.15 per cent more than was planned, said CEZ. The owner is concerned that the approved 9.6 per cent hike in the price at which the power station sells its output does not offset the 30 per cent jump in the cost of coal supplies which is causing the company a loss of BGN 7 per MWh of electricity sold to NEK.
Source: Dnevnik (19.01.2007)

Bulk of BDZ cars fail EU standards Only 50 of the 1,311 railcars operated by state-owned carrier BDZ comply with relevant EU standards, the press office of the Bulgarian government said Thu, Jan 18. Some 100 per cent of the BDZ sleeping cars and 89 per cent of the first class coach cars are in bad repair. The 50 railcars in good shape were modernized on EBRD money. BDZ plans to retire 200 cars in '07. Currently 669 freight wagons are being used by the company. The lacj of enough freight wagons is the reason why BDZ could not serve all its corporate clients. In order to pay its debts to its suppliers the National Company Railway Infrastructure and BDZ started to sell assets. The National Company Railway Infrastructure is selling 27 properties expecting to accumulate about BGN 80 mln. The most attractive shortlisted properties are the railway stations Pioneer and Serdika. On the other hand BDZ is selling 11 properties for a total approximate value of BGN 14.3 mln. Among them are Pomorie railway station that is valued at about BGN 7-8 mln and 35 decares in Ilianci business and trade area. With half of the income the state-owned carrier will pay its debts to NEK while the rest will be used for freigh wagon repairs. According to the Ministry of Transportation preliminary calculations the total debts of the two companies in 2006 are expected to be BGN 424 mln, as BGN 126 - of the National Company Railway Infrastructure and the rest of BDZ. Since the beginning of 2007 BDZ has three subdivisions – for freights, passengers and engines.
Source: Dnevnik (19.01.2007)

Russian money will be used for the construction of Bulgaria's second nuclear power plant - Belene, learned the Standart. The National Electric Company (NEC) confirmed that Atomstroyexport would finance all analyses and construction works for the first year after the launch of the project. Later Bulgaria will repay the loan with an interest. Officials with the NEC said that Bulgaria would keep its 51 per cent majority share in the project. Several foreign energy giants have already proposed to provide funds for Belene in exchange for shares. A meeting between officials with the NEC, representatives of the nuclear plant, district governors and Atomstroyexport will be held in the end of the week. After that experts with the NEC and the Russian contractor will identify which of the equipment that is currently on the site could be used in the construction.
Source: Standart (22.01.2007)

A month after Bulgaria and Russian gas monopoly Gazprom updated their long-term gas transit and delivery agreement, Bulgarian energy minister Rumen Ovcharov told parliament that the two sides had also discussed an equity swap involving local state-owned gas supplier Bulgargaz. Although the idea was initially rejected on political grounds, Ovcharov said it could yet be revived if it wins backing from the ruling coalition and the right-wing opposition. Experts and politicians criticised the idea, saying it would increase Bulgaria's already alarming dependence on Russian energy supplies since Gazprom would assume partial ownership of the Bulgargaz transmission network. An equity swap with Gazprom could also entitle the Russian company to a share of the Nabucco gas pipeline project which Moscow has so far tried to foil. The deal will also increase Grazprom's hold on the Bulgarian gas market through local gas distributor Overgas Inc. which owns a substantial portion of the domestic gas distribution licences. In related news, it was announced that Bulgargaz has been reregistered as a holding company comprising of transmission, sales and delivery divisions.
Source: Dnevnik (22.01.2007)

CEZ AS has become the sole electricity supplier to four central and eastern European units of Kraft Foods Inc. (KFT), as the Czech power company banks on its regional expansion into distribution and generation, reports news agency Dow Jones. CEZ from January 1 began supplying electricity to Kraft Foods' units in the Czech Republic, Slovakia, Bulgaria and Romania, CEZ spokeswoman Eva Novakova said in a statement quoted by Dow Jones. CEZ expects to add the Polish unit of Kraft Foods to the same contract in the second quarter, Novakova said. Since 2004, CEZ has taken over several power plants and distribution grids in Bulgaria, Romania and Poland. It also opened trading offices in those countries along with others in the region. Last year, the company started pitching its one-stop-shop contract for power supplies to corporate clients with operations scattered across central and eastern Europe. CEZ remains the largest power generator in its home Czech market where it enjoys rising electricity prices. However, its other regional operations have become key revenue drivers, analysts have said. Kraft Foods, a leading international food maker, produces and sells various food items including packaged coffee and snacks, in central and eastern Europe.
Source: Dnevnik (23.01.2007)

Bulgarian steel mill Kremikovtzi seeks power self-sufficiency Kremikovtzi, Bulgaria's biggest steel maker, intends to increase the capacity of its on-site power station and spin it off into a subsidiary company. GE Energy has been invited to send a team to inspect the mill's power production facilities, said Pravin Banker from Balkan Capital Management, the company hired to package the project financially. The aim of the steel maker is to upgrade the thermal power plant to a high-efficiency go-generation facility that meets company needs and sell excess energy output to national power grid operator NEK, said Banker. The 112MW power station currently produces 40MW of power which is insufficient for the needs of the mill. The shortfall is covered by electricity bought from NEK with annual bills hitting BGN 40 mln. The capacity of the power station could be raised to 220MW over the next couple of years, said Banker. NEK is required by law to purchase power produced by cogeneration facilities at preferential prices through 2012.
Source: Dnevnik (26.01.2007)

The Kozloduy nuclear power plant (NPP), on the Danube river, will incur a loss of BGN 40 to 50 mln after the closure of units 3 and 4 and the refusal of the nation's power regulator to approve an 18 per cent hike in electricity prices from January, said Ivan Genov, executive director of the power station. The power regulator has said it will not adjust electricity tariffs before July this year. In that case, Kozloduy will seek a 24 per cent increase to 48.35 levs/MWh, said Genov. In his view, if the regulator refuses to revise electricity tariffs it should then increase the volumes that Kozloduy is allowed to sell on the deregulated electricity market. The management of the NPP expects that the regulator will adopt new rules for electricity trading from July when the market will open to competition and households will be allowed to picked their power supplier.
Source: Dnevnik (29.01.2007)

The Pleven district court has approved the auction sale of the non-core assets of bankrupt oil refinery Nova Plama. The assets that will auctioned include recreational and storage facilities, expired chemical products and transportation equipment. The appraisal of the refinery's production assets is not ready yet. The list of Nova Plama's biggest creditors includes the State Receivables Collection Agency, Biochim, UBB, DZI Bank, International Asset Bank, Bulgargaz and NEK. The company owes some BGN 300 mln to its creditors.
Source: Dnevnik (29.01.2007)

The price of the electricity that the Kozloduy nuclear power plant (NPP) sells to the National Electric Company may go up by 24% as of July 2007, NPP's CEO Ivan Genov said. The price hike may be prompted, if the State Commission for Water and Energy Regulation does not approve the 18-percent increase in the price, suggested by the NPP as of the beginning of 2007. The additional price hike is prompted by the decommissioning of units 3 and 4 of the NPP.
Source: Pari (29.01.2007)

Bulgaria's state electricity utility NEK is seeking to borrow EUR 250 mln to launch the construction of a new 2,000MW nuclear power plant, news agency Reuters reported on Tuesday, January 30. Bulgaria has contracted Russia's Atomstroyexport to build the EUR 4.0 bln plant at the Danube river town of Belene in an attempt to keep its position of a leading power exporter in southeastern Europe. NETC said the bids should be filed by March 5. 'The credit is needed to finance the project's design, the supply of equipment and the construction works in the first year of its implementation,' NETC said in a statement quoted by the news agency. Atomstroyexport has said it would be ready to launch work on the plant this year and expected it to be operational by 2013. NETC has said it plans to seek financing for the big project through the export agencies of the chosen builders - Russia, France and Germany, and from leading global investment banks, Europe's Euratom and the European Investment Bank.
Source: Dnevnik (31.01.2007)

NEK has announced a public procurement procedure for bridge financing of the Belene nuclear power plant (NPP). The company is looking for a EUR 250 million credit for the project. The loan will be used for design, supply of equipment and construction works in the first year of the project implementation. The term of the loan agreement will be 180 months. The guarantee for participation in the procedure is set at EUR 500,000, the validity term has to be 210 days. Candidates' applications will be unsealed on March 5, 2007.
Source: Monitor (31.01.2007)

Bulgarian President Georgi Parvanov urged the European Union on Thursday to reconsider a deal that forces the bloc's newcomer to shut down Soviet-era nuclear reactors, causing power shortages in the region, reports news agency Reuters. Bulgaria has closed two of the four reactors at the Kozloduy plant under the treaty that allowed the Black Sea state to join the EU on January 1 along with neighbouring Romania. Brussels had insisted on the closures out of safety concerns. But Parvanov told the European Parliament the reactors were safe and invited more EU inspections to review the evidence. 'If our EU partners find it necessary, Bulgaria may agree to a new peer review to the units 3 and 4 of our nuclear power plant,' he was quoted as saying by Reuters. 'All experts agreed there are no technical barriers to the day-to-day operations of these units, they also pointed to high level of safety of those units,' he added. Parvanov said shutting down the reactors had led to power shortages in the Balkan region, which might bring economic and political instability. 'Some of the countries of the region have serious energy shortages and power cuts. When you combine this with the increase of prices it may lead to political and economic instability of the whole region,' he said. Power-hungry Albania called on the EU this week to review the closure of the units until alternative resources were built, saying it had disrupted the Balkan electricity market. Lack of rain, almost drying up the reservoirs of its hydro-electric schemes, along with the failure of suppliers to respect contracts because of the Bulgarian plant closure have caused power cuts of 12 hours a day in Albania since November, said Reuters. Bulgarian officials have said the country will ask the EU to increase the planned financial compensation for the shutdown. The EU has earmarked EUR 220 mln for the decommissioning of the reactors, but Bulgaria says Lithuania and Slovakia, which joined the EU in 2004, are to receive much more generous compensation for shutting down their Soviet-designed nuclear power plants.
Source: Dnevnik (02.02.2007)

CEZ Group, the owner of Bulgaria's Varna thermal power plant (TPP), plans to invest more than BGN 700 million in environmental projects in the next eight years. Projects include the installation of desulphurising facilities and filters and reconstruction works, CEZ country manager Lubos Pavlas said. That will help reduce hazardous gas emissions and meet the European environmental requirements. In addition, according to a memorandum signed with the ministry of economy and energy, in the next four years CEZ Group will invest EUR 40 million in Bulgaria. The amount will be invested in renewable energy sources. In 2007 Varna TPP plans to generate 4 billion kWh of electricity, up by 34% on 2006. Some 3.2 billion kWh will be delivered to the National Electric Company, the remainder will be sold on the free market.
Source: Pari (07.02.2007)

The Varna thermal power plant (TPP), owned by Czech utility group CEZ, would like to export 80-100MW of electricity to deflect losses from the lower-than-requested hike in the power tariffs, said Jan Vavera, chairman of the company's board of directors. In 2006, the power station asked the nation's energy regulator to approve an increase in the price of electricity it sells to national power grid operator NEK from 46 to 54.89 levs/MWh. The power station motivated the request with a 20% uptick in the price of overseas coal supplies. The power regulator adjusted the tariff only to 50.24 levs/MWh, saying the power station failed to certify its cost base accordingly. The Varna TPP will likely be ready by February with the new tariff it will ask the regulator to enforce from July 2007, said Vavera. NEK has rejected the electricity export request of the Varna TPP, saying the power station was running low on coal supplies. Varna TPP is starting a 700 mln lev investment program that will run through 2016. CEZ will retrofit units 4, 5 and 6 with sulphur dioxide removal equipment by 2011 and units 1 and 2 by 2015. Dust and ash emissions will also be curbed to meet EU requirements towards the operation of large combustion installations.
Source: Dnevnik (07.02.2007)

Austria's EVN, the owner of the Plovdiv and Stara Zagora regional electricity distribution companies, has proposed to the Bulgarian power regulator to approve 7 different tariffs for industrial and household consumers based on the respective set of transmission and distribution costs. The lowest tariff is proposed for industrial consumers with direct connection to a substation. At the moment, power users are charged according to 3 different tariffs depending on the voltage. The Austrian company and the other owners of power distribution utilities have asked the power regulator to approve differentiated tariffs on two previous occasions. If the regulator agrees to the proposal, household and business customers using low voltage will be charged higher tariffs because the cost for providing the service is higher for the power distributor. The regulator has so far indicated it is not particularly amenable to a discussion of the proposal. The Bulgarian Federation of Industrial Consumers commented that the EVN proposal is an attempt on the part of the power distributors to cling to their major business customers.
Source: Dnevnik (12.02.2007)

Bulgaria's '06 c/a gap hits record high Bulgaria's current account deficit hit a record 16 per cent of GDP in 2006, exceeding the gloomiest of expectations and causing concern among analysts about the European Union newcomer's financial vulnerability, news agency Reuters reported on Monday, February 12. The 2006 external imbalance was EUR 3.9 bln or 16 per cent of gross domestic product, preliminary data from the central bank showed on Monday. It was well above the previous year's deficit of EUR 2.4 bln or 11.3 per cent of GDP. The Socialist-led government, which runs one of the tightest fiscal policies in Europe to avoid the gap spiralling out of control, had expected it to expand to 15 per cent of GDP. Analysts said the lack of improvement in the bloated deficit would probably send a warning signal to investors, although it was fully matched by hard currency inflows from foreign direct investment. The ex-communist state's vast external shortfall stems primarily from rampant consumption as Bulgarians are for the first time able to buy foreign-made goods, said Reuters. The Balkan country's trade deficit also hit a record 21.8 per cent of GDP versus 20.2 per cent a year earlier, due to an explosion in consumption. Foreign direct investment in Bulgaria posted a record of EUR 4 bln, covering 104 per cent of the current account shortfall. The figure was higher than in 2005 when FDI reached EUR 2.3 bln, or 95.8 per cent of the current account gap, said the news outlet. But most of the cash went to real estate and construction, which analysts said was a short-term investment that could be quickly abandoned and did little to boost sustainable manufacturing capacity needed to expand exports. The government has stepped up efforts to decrease the gap by producing hefty budget surpluses and pledged to improve business environment and shabby infrastructure to stimulate exports. Analysts said one of the few positive signs in the current account data was that the exports grew faster. They rose 26.6 per cent to EUR 12 bln on an annual basis last year, while imports increased 25 per cent to EUR 17.3 bln. The government sees the current account deficit falling to 13.6 per cent of GDP in 2007, mainly due to an expected rebound in exports, although analysts said rising domestic demand and convergence to EU standards might put that goal beyond reach.
Source: Dnevnik (13.02.2007)

Austria's EVN, which is owner of the electricity distribution utilities in Plovdiv and Stara Zagora, proposes four new tariffs that will take into account the point at which consumers are connected to the power grid. The idea is backed up by CEZ and E.ON, which operate the utilities in Sofia City, Sofia Region, Pleven, Varna and Gorna Oryahovitsa. If the proposal is approved by the authorities, the price for companies will drop and the power distributors will be able to regain those business consumers that migrated to the National Electric Company in 2006. Currently utilities apply three tariffs: for high, medium and low voltage.
Source: Pari (13.02.2007)

Electricity price in Bulgaria will go up by more than 10% as of July 2007, Georgi Mikov, executive director of CEZ owned Electricity Distribution Company Sofia, said. The increase will depend mainly on the price at which the National Electric Company (NEK) will sell the power to the electricity distribution companies, according to Mikov. The price should be set by the State Commission for Energy and Water Regulation (SCEWR).
Source: Sega (16.02.2007)

Shady deal with BDZ’s debt Pernik businessman Liydmil Stoykov who was convicted for the acqiring of EUR 7.5 mln from SAPARD programme is being investigated together with another shady deal by the Sofia City Court. At the end of 2006 a Parliamentary commission for anti-corruption questions has introduced 100 pages file for a suspicious deals between NEK, Stoykov’s company Eurometal and the off shore company registered in Delaware state, USA – Kingston Enetrprises, that is believed to be owned again by Mr. Stoykov. Eurometal has acquired the right to collect BDZ debts to NEK valued at BGN 72 mln. That became possible by an elaborate three-party cession contract signed during the NDSV – DPS government. There has been no auction before the deal was signed and Stoykov has acquired very good financial conditions by NEK.
Source: Trud (16.02.2007)

How Liydmil Stoykov acquired BDZ’s debt to NEK Bulgarian State Railways SPJSC – Sofia and National Company Railway Infrastructure SC – Sofia refused to name the sum that they have to pay Eurometal for the NEK cession. Eurometal is property of the recently arrested businessman Liydmil Staykov who was accused for acquiring EUR 7.5 mln from SAPARD programme while BDZ’s cession is one of the biggest deals that is offending Bulgarian state interests. Stoykov is among the most zealous supporters of President Georgi Parvanov and he took place in his election campaign last fall. At its first attempt to figure out the sum that the two railway companies owe Eurometal and the Delaware registered Kingston Enterprises, that Mediapool news agency made, BDZ said that this is their own cession and re-directed the media squad to NEK and National Company Railway Infrastructure SC. The second time when the media asked BDZ about the cession, the railway company answered that the case is currently in court and they have no right to release any information connected about it.
Source: mediapool.bg (16.02.2007)

Italian utility Enel is ready to quickly deploy an investment in a new 700MW coal-fired power plant in the Maritsa Iztok coal basin in Southern Bulgaria, Dnevnik learned from Enrico Viale, the Enel Group head for Bulgaria. Enel has hired local company Minproekt to measure the capacity of the coal basin to supply the new plant, said the company executive. The Italian company wants to build the new plant on the site of thermal power plant Maritsa Iztok 3 which it is currently upgrading. Viale said Enel is seeking approval for the EUR 900 mln project in partnership with Bulgarian power grid operator NEK. The Maritsa Iztok mining company could increase coal output by 7-8 mln tons annually if a new plant is built in the area, said Minproekt executive director Huben Hubenov, adding that the deposits will last for another 40-50 years. German utility RWE has also expressed interest in building a 600MW plant in the complex as has U.S. energy firm AES. The American outfit is already building a new 670MW coal-fired plant in the region. The Bulgarian power regulator is expected to open a competitive procedure for the construction of a new 700MW plant in the Maritsa Iztok basin. AES Maritsa Iztok 1 and RWE are among the investors invited by the Maritsa Iztok mining company this Wednesday to a discussion of the outlook for the area's coal mining industry.
Source: Dnevnik (19.02.2007)

NEK will limit Kremikovtzi’s electric power supply because of debts Because of the delay of payments of Kremikovtzi’s debts to NEK valued at BGN 2 175 542.75, including taxes, NEK will limit electricity transmission for the steel plant. NEK’s Board of Directors has already warned Kremikovtzi that if the plant does not pay its debts as scheduled, the power plant will gradually decrease the amount of electrical power that is transmitted to the plant’s facilities, as stated in a letter sent to the plant. So far Kremikovtzi has not paid its debt. As a result from today on NEK is starting to carry out the sanctions stated above. With a special fax message NEK warned the metallurgical plant to take all required safety measures in order to prevent all possible system brake ups that might happen as a result of the cut in electric supply. NEK warned that if any system and equipment damages occur the only culprit will be Kremikovtzi JSC.
Source: Agency Focus (19.02.2007)

Bulgarian steel maker Kremikovtzi faces power cuts over unpaid bills NEK, Bulgaria's power grid operator, Monday said it is gradually powering down electricity supplies to steel maker Kremikovtzi over unpaid bills. The power utility notified the timetable for the power cuts to Kremikovtzi 5 days ago. The steel mill, the nation's biggest, owes BGN 86 mln in unpaid electricity bills. The payment of another BGN 90 mln has been rescheduled. Kremikovtzi was issued a stern warning by NEK some 2-3 months ago but it ultimately did not result in any power supply disruptions. There are contentious issues that will be discussed at a meeting between the top managers of the two companies, Kremikovtzi said in a press release, giving no further details on the nature of the issues or the scheduling of the get-together.
Source: Dnevnik (20.02.2007)

Kremikovtsi gradually cut off from power Bulgaria's National Electric Company (NEK) started limiting electricity supplies to Kremikovtsi by switching off a 110-kV power line. NEK warned the metallurgical plant that if it did not start repaying its debts, supplies would be reduced. The letter included a schedule of substations and power lines to be turned down. Kremikovtsi's outstanding debts to NEK exceed BGN 2.175 million, NEK said. Interest is also charged on the amount.
Source: Pari (20.02.2007)

Kremikovtzi already has full electricity supply. The plant paid its debts to NEK. Kremikovtzi has already paid all its current debts to NEK and has full electricity supply. This was announced by Mr. Aleksander Tomov – a member of the Board of Directors of Kremikovtzi JSC at a press conference. NEK also confirmed the news that the metallurgical plant has paid all its current debt of BGN 2.175 mln plus interest. The electricity supply to Kremikovtzi plant is re-established at full capacity, NEK reported. Now Kremikovtzi is trying to figure out how the company could limit the interference of monopoly institutions over company’s business through all available Bulgarian and international legal actions. The metallurgical giant already asked for a meeting with the Minister of Economy and Energy Roumen Ovcharov. If the meeting is refused the company will sue NEK for causing damages.
Source: Darik Radio (21.02.2007)

Bulgarian steel mill Kremikovtzi '06 loss widens y/y to 266 mln levs Kremikovtzi, Bulgaria's biggest steel maker, sank to a loss of BGN 266 mln in 2006, failing to rebound from an year-ago loss of BGN 201.6 mln, shows the company's interim financial report submitted to the Bulgarian stock exchange. Revenues topped BGN 1 bln in 2006 but so did liabilities mainly due to the booking of a BGN 630 mln eurobond issued last year. The company also owes significant amounts to suppliersand connected entities on top of the BGN 86 mln in unpaid electricity bills. Kremikovtzi has agreed the rescheduling of another BGN 90 mln in electricity debts. Non-payment prompted national power grid operator NEK to start limiting power supplies to Kremikovtzi on Monday but the cuts were phased out on Tuesday after the steel mill settled February's BGN 2.1 mln bill. Board member Alexander Tomov blamed the delayed February payment to technical and banking glitches. Company spokesman Todor Hristov was quoted as saying by news agency Bloomberg that the power cuts had no significant impact on production activity because the steel maker has access to independent energy sources.
Source: Dnevnik (21.02.2007)

Kremikovtzi to sue NEK for damages Just a day after Kremikovtzi was forced to work under limited electricity supply because of unpaid bills, the metallurgical plant threatened NEK that it will bring a suit against it for caused damages. On Monday NEK stopped one of the four electricity chains that are supplying electricity to the factory and warned that if the company does not pay its debts it might entirely cut off the electricity supply. NEK said that since December 2006 Kremikovtzi owes it BGN 2.175 mln without interest. Part of the sum is of the old BGN 90 mln debt that Kremikovtzi has to pay until 2013. NEK’s actions met immediate response from Kremikovtzi which paid all its debts. Aleksander Tomov – a member of the Board of Directors of Kremikovtzi said that the reason for the delay was “banking and technical difficulties”. As Kremikovtzi’s cash flow is comparably big, the company is using the services of foreign banks.
Source: Sega (21.02.2007)

Bulgarian electricity producer Brikel is interested in continuing to buy coal from the local Maritsa Iztok mining company after its integrated pollution control and prevention permit expires in 2012, Maritsa Iztok executive director Ivan Markov said on Wednesday. To that end, Brikel plans to either retool the existing power production equipment or build a replacement capacity. The 200MW Brikel currently buys 4-4.5 mln tons of coal from Maritsa Iztok annually. In related news, the technical council on the development of the Maritsa Iztok mines has decided to propose to the government to open a selection procedure for an investor in a new 600-700MW power generation capacity in the Maritsa Iztok coal basin. Italy's Enel, AES of the U.S. and Germany's RWE are all interested in the construction of a new power generation facility in the area. Enel, which is currently upgrading thermal power plant Maritsa Iztok 3, has one leg up on the competition and has proposed to the build the new plant on the existing site. Enel said it has completed the feasibility study and is ready to negotiate and sign a coal supply contract. Matthias Holzenkamp from RWE Power said the company is ready to invest EUR 900 mln to EUR 1 bln in a new Maritsa Iztok plant. The output of the facility, which could be on stream by 2013, should be competitive on the regional market in terms of pricing. RWE and the Maritsa Iztok mines co-created a stillborn joint venture in 1999 which is now facing either liquidation or a transformation in a new company that could build the new power plant. The Bulgarian energy ministry said the mines should decide the fate of the joint venture with RWE by the end of February.
Source: Dnevnik (22.02.2007)

Bulgarian state-owned railway carrier BDZ has sent a letter to national power grid operator NEK, proposing to settle some of its outstanding electricity bills with a the transfer of property assets. The negotiations on the settlement scheme are forthcoming. BDZ has not yet decided whether to auction off the assets and use the proceeds to pay its NEK bills or transfer the title to the power utility.
Source: Dnevnik (23.02.2007)

Kremikovtzi with a new bank credit of EUR 18 mln. Black Sea Trade and Development Bank has allotted an EUR 18 mln credit to the metallurgical plant Kremikovtzi, banks’ officials announced. The credit is set for 7 years and the funds will be used for modernization of the processing capacity of the plant. “This bank loan will help Kremikovtzi to improve the quality of its products according to the international quality standarts.”, said Villas Jamnis – a chief executive director of Kremikovtzi. A few days ago NEK partially stopped the electricity power supply to the plant because of unpaid bills. On the very next day Kremikovtzi paid all its February debts of BGN 2.1 mln and the power supply was immediately resumed. At the end of last year Kremikovtzi posted a loss of BGN 266 mln in its report introduced to the Bulgarian Stock Exchange. A year ago the loss was BGN 201.6 mln. The revenue from sales of the metallurgical giant exceed BGN 1 bln but its liabilities also exceed this level. A major reason for this financial results are the Eurobond emission of last year that totals BGN 630 mln ,which are also included in the balance.
Source: Dnevnik (26.02.2007)

Bulgarian energy companies are ready to make investments for BGN 1.178 billion in 2007, a survey of the Bulgarian branch chamber of the energetics (BBCE) showed. The sum is record-high and will be invested in improving the safety and the quality of the electricity supplies, according to BBCE. The volume of investments is expected to go up by 50-percent in 2007, compared to 2006. Investments in the Kozloduy nuclear power plant (NPP) are expected to total BGN 100 million in 2007, up by BGN 18 million compared to 2006. The National Electric Company (NEK) plans to nearly double investments to BGN 412 million in 2007.
Source: Pari (27.02.2007)

NPP Belene is now a separate company. Under the written order of Bulgaria's Minister of Economy and Energy, Rumen Ovcharov, the branch of the National Electric Company - NPP Belene was closed down. The head office of the new company remains unchanged. The whole personnel of the hitherto branch will be transferred to the new company.
Source: Standart (28.02.2007)

BDZ is waiting for an approval issued by the EC to get a loan BDZ is preaparing an inquiry letter addressed to the EC asking if the company is acceptable to get a BGN 70 mln loan granted by a state waranty, but not given by the state itself and will not be treated as a state support, a Transport Ministry representative said yesterday. The loan will be used for the repairment of 2 000 freight wagons, as planned in the 2007 budget. The lack of enough freight wagons is a huge problem for the Railway Company and is about to slow down the whole industry. Most of BDZ’s corporate clients started to purchase freight wagons on their own as they need to transport their commodities and final products as scheduled and on time. The Ministry of Transportation is currently discussing the possibility of issuing a new 17-year bond loan for BGN 150 – 200 mln, said the Minister of Transportation Mr. Petar Mutafchiev in a BNT TV discussion. These funds will be used for the purchasing of new freight wagons, he added. This will be the second bond loan given to BDZ as in May 2004 the very first corporate BGN 30 mln bond emission in favor of a state-owned company was made. That money was spent for the repairment of 3 620 freight wagons. Minister Mutafchiev pointed out that for a year and a half the debt has decreased by BGN 20 mln. BDZ is currently offering to pay off its BGN 50-mln debt to NEK by transferring 5 properties. BDZ is also considering the option a foreign railway company to do the repairment of the freight wagons or just to purchase some of their’s. Negotiations with a Turkish career are currently on air.
Source: Dnevnik (06.03.2007)

Bulgarian national power grid operator NEK is keeping mum on the number and the names of the banks that are competing for provide a EUR 250 mln bridge loan facility for the construction of the Belene nuclear power plant. The bid receipt deadline expired on Monday, March 6. NEK said the names of the banks will not be disclosed at their request. Neither is the company under any obligation to do so under the Public Procurement Act. The name of the winner will be announced at the end of March. The bridge loan, which Dnevnik learned is contested by 11 heavyweight lenders, will provide the necessary financing for the design, shipping and assembly operations during the first year of the project. In late 2005, NEK Wednesday signed up a group led by Russia's AtomStroyExport to build a new 2,000MW nuclear power plant at the Danube town of Belene. The contractor will install two 1000MW reactors of the VVER 466 type. NEK plans to launch promptly a selection procedure for a strategic investor in the new NPP. It is not clear what selection criteria will be used in the procedure. Italy's Enel, Czech CEZ, Spain's Iberdola, Germany's E.ON and Russia's RAO EES are reportedly interested in joining the project as investors.
Source: Dnevnik (07.03.2007)

The Bulgarian producers of electricity and heating energy have reported a decline in sales due to the ongoing spell of unseasonably warm weather, found a Dnevnik poll. The electricity providers said the lower consumption will show up on their customers' bills while the heating utilities said bills will be unchanged from the year-ago period due to the October 2006 price hike. Domestic electricity consumption fell by 7.6 per cent year-on-year in January and by a further 5 per cent in February, said Mityo Hristozov from national power grid operator NEK. Due to the lack of snow, the hydro power stations reported the sharpest decline in power output in January-February, down by 67 per cent. The companies distributing electricity in Sofia city and the regions of Sofia and Pleven said sales were down 7.18 per cent year-on-year in January. CEZ, the Czech owner of the 3 power distributors, said household customers accounted for 74 per cent of the decline. Austria's EVN, which owns the power distributors in Plovdiv and Stara Zagora, and Germany's E.ON, the owner of the power distributors in Varna and Gorna Oriahovitsa, said the drop in sales was marginal.
Source: Dnevnik (08.03.2007)

Nat'l railway co to finance repair of carriage fleet with debt National railway carrier BDZ plans to raise money for the reconstruction of its fleet of passenger and cargo cars with the placement of 2 bond issues in 2007, said executive director Oleg Petkov. The first debt issuance, worth BGN 40 mln, has already been approved by the BDZ management is awaiting a nod from the transport ministry. The proceeds from the bond will be invested in the repair of 1,200 of BDZ's 11,000 cargo cars. The major industrial clients of the carrier will generate business that will require a fleet capacity of 8,550 cars in 2007 but BDZ has only 7,000 cars manufactured over the last 25 years. The company is looking for an opportunity to swap 500 railcars for the repair of as many. The second bond, worth BGN 170-200 mln, will raise cash for further railcar repairs and for the settlement of a BGN 50 mln debt to national power grid operator NEK. BDZ is considering a second option for the payment of the NEK debt. The carrier has offered the utility title over 3 real estate properties. NEK is interested in the deal but has asked BDZ to furnish proof of title.
Source: Dnevnik (09.03.2007)

The electricity price hike from July is no surprise to anybody, now that units 3 and 4 of the Kozloduy nuclear power plant have been shut down and coal has become more expensive. In addition, the National Electric Company has terminated power exports, which have until now allowed it to compensate the higher prices paid to water power plants and to maintain lower sales rates for the electricity distribution companies. The State Energy and Water Regulation Commission is under pressure from electricity producers to raise their tariffs. A lot depends on the regulator's final decision, as higher electricity bills mean more expensive goods and services. That will affect the competitiveness of the Bulgarian industry and may cost businesses their EU markets. The prices of electricity for the industry in Bulgaria are higher than for households. This is not the way to encourage industrial development, the supervisory board chairman of Biovet of Peshtera, Kiril Domuschiev, said.
Source: Pari (13.03.2007)

The second tender for assets of Nova Plama, held last week, saw some weak interest on behalf of investors. Nova Plama has already started refunding its debts to creditors with what it had bagged in the first run of the tender, one of the company administrators said. Among the greatest creditors to the bankrupted refinery are the National Revenue Agency (NRA), HVB Bank Biochim, UBB, DZI Bank, International Asset Bank, Bulgargaz, etc., as its indebtedness measures up to BGN 300 million.
Source: Dnevnik (13.03.2007)

NPP 'Kozlodui' demanded from the State Committee of power and water regulation to increase the electricity price with 24% from July 1, reported Ivan Genov, executive director of 'Kozlodui'. He added that the public electricity should rise with 10%. The only way that the electricity retains its price is the State Committee to decrease the retrievable norm of the electricity distributive associations.
Source: Darik Radio (13.03.2007)

Kremikovtzi JSC is planning a 0.4 mln tons output increase in 2007 Kremikovtzi has increased its output volumes in 2006. As of information released by the metallurgical plant, in 2005 the plant has produced a total output of 1.09 mln tons while in 2006 – 1.2 mln tons. In 2007 the plant is planning to increase its output even more reaching 1.6 mln tons. There is also a constant trend of increase of the monthly gross salary, as in 2000 it was BGN 405, in 2006 – BGN 786 and in 2007 it is planned to reach BGN 903. Kremikovtzi’s debts have decreased three times since 1999. From BGN 1 024 453 thous. in 1999 to BGN 303 869 thous in 2006 (Dec 31st 2006). The biggest creditor of Kremikovtzi is Bulgargas – BGN 24 024 592. About this debt the two companies have signed a contract in 2003 saying that it will be paid back until 2013. Kremikovtzi also has liabilities to NEK – BGN 84 632 333 etc. In 2006 Kremikovtzi has paid back its debts to the National Social Security Institute – BGN 58 853 873, Bulgargas – BGN 114 921 849, NEK – BGN 88 355 873, BDZ – BGN 48 901 922 and another BGN 17 812 441 – for taxes. As of NAP information of March 16th 2007 the company has no more debts.
Source: Capital market (23.03.2007)

Bulgaria's procurement legislation should be amended to exempt the local electricity distribution companies form the obligation to award supply contracts only through competitive public procedures, Markus Kaune, senior vice president of E.ON Bulgaria, told a local seminar on the challenges facing the power sector. E.ON, which owns the power distributors in Varna and Gorna Oriahovitsa, is experiencing delays in its local projects and investment programs due to the cumbersome public procurement procedures, said Kaune, pointing out that other corporations providing public services like the telecom carriers are not required to comply with the Public Procurement Act. Amendments to the Public Procurement Act adopted 4 years ago excluded from its scope the mobile telecom carriers and former telecom monopoly BTC. A year later, the radio stations were also granted exemption. 'We won't be campaigning for such changes and we'll continue to apply the existing legislation,' said the local office of CEZ, the Czech utility company operating the power distributors in Sofia, the greater Sofia region and Pleven.
Source: Dnevnik (26.03.2007)

Bulgaria is facing an energy shortage due to the delayed rehabilitation of capacities. Power plants also have to obtain new integrated pollution prevention and control permits, the CEO of Maritsa Iztok 2 thermal power plant (TPP), Atanas Dimitrov, said. In his words, the upgrade delay is between two and 12 months. The decommissioning of units 3 and 4 of the Kozloduy nuclear power plant, the delayed rehabilitation of Maritsa Iztok 3 TPP and the reduced output of Brikel and Maritsa 3 make regular electricity supplies uncertain, experts say. Added to that is the closure of Maritsa Iztok 2's units 5 and 6 and the delayed installation of desulphurising facilities in units 1 and 2. At the same time electricity consumption is expected to increase in 2008 and 2009.
Source: Pari (30.03.2007)

The construction of a new 2,000MW nuclear power plant at the Danube town of Belene has stalled despite the assurances of Bulgaria's national power grid operator NEK that the final contract for implementation of the project with a group led by Russia's AtomStroyExport will be signed by the second quarter of 2007. Under the project timetable, the two sides were due to ink by April 15 an agreement on the use of the Skoda equipment delivered to the Belene site in the early 1990s before the project was put on ice. AtomStroyExport was supposed to appraise the mothballed equipment. It is not clear if that appraisal has been completed and what part of the equipment will be scrapped and for what part NEK will re reimbursed by AtomStroyExport. The issue with the disused equipment should be settled by the end of April, NEK said, giving no further details. Sources close to the project told Dnevnik that the sticking point is the price that should be paid for the unassembled equipment. NEK reportedly seeks BGN 300 mln while AtomStroyExport is willing to pay BGN 100 mln less. No comment could be obtained from the Russian company before Dnevnik went to print. A memorandum signed by AtomStroyExport and NEK in late 2006 obliges the Russian company to finance the first stage of the preparatory work on the project. NEK sources said the negotiations with AtomStroyExport on the final agreement are making difficult progress. Asked whether or not the project is falling behind schedule, Bulgarian economy minister Rumen Ovcharov said there are no delays in construction and equipment timetables. NEK said it will name by the end of April the bank that will extend the EUR 250 mln bridge loan for the Belene project.
Source: Dnevnik (18.04.2007)

Bulgaria's national power grid operator NEK paid BGN 48.8 mln in 2006 for advisory services related to the restart of the Belene nuclear power plant project, shows the financial report of the company audited by KPMG. Parsons E&C and Risk Engineering act as engineer/architect for the construction of the NPP while Deloitte provides financial advise. According to the auditor, NEK wrote off the advisory service expenses in its 2006 financial report. The expenses have been booked as assets of the new NPP. The 2006 financial report is the first NEK document that reveals the company's spending on advisory services. The assets of the Belene NPP are booked at BGN 305 mln, a valuation that includes the equipment delivered to the site of the plant before the project was put on hold in the early 1990s. A group led by Russia's AtomStroyExport will build the new 2,000MW nuclear power plant at the Danube town of Belene. AtomStroyExport was proposed to use the mothballed equipment in a Russian NPP which would lower the cost of the project tentatively seen at EUR 4 bln. AtomStroyExport told Dnevnik it is ready with a list of the Belene equipment that it will buy from NEK because it is not compatible with the new plant design. NEK will name the price at which it wishes to dispose of that equipment, AtomStroyExport further said. Under the project timetable, the two sides were due to ink by April 15 an agreement on the use of the redundant Skoda equipment. Sources close to the project told Dnevnik that the price that should be paid for the unassembled equipment is one of the issue stalling the project.
Source: Dnevnik (19.04.2007)

German utility E.ON, which owns the local regional power distributors in Varna and Gorna Oriahovitsa, is ready to start importing electricity to Bulgaria, chairman of the managing board of E.ON Bulgaria Manfred Paasch said on Thursday. The company official said E.ON is prepared to assist the capacity upgrade of the transborder transmission networks. E.ON Bulgaria Trading, wholly-owned by E.ON Bulgaria, already supplies electricity to 3 major industrial consumer. Bulgaria’s power regulator last year licensed E.ON Bulgaria Trading and E.ON Sales and Trading to operate as power traders on the local market. Czech utility CEZ, which recently acquired the thermal power plant in Varna, is interested in an export option but got pushback from national power grid operator NEK. The two sides have taken the dispute for arbitration to the Bulgarian Chamber of Commerce and Industry.
Source: Dnevnik (20.04.2007)

The final agreement for implementation of the Belene nuclear power plant project with a group led by Russia's AtomStroyExport will be signed before the end of 2007 and not by mid-year as has been claimed by the contractor designate, Dnevnik learned from Lyubomir Velkov, chief executive director of national power grid operator NEK which will be the second party to the agreement. NEK will kick off within a month parallel procedures for the selection of a strategic investor and for the financial packaging of the project, said Velkov. The bank or group of banks that will finance the project will have to negotiate with the contractor which cold delay the signing of the final agreement. That is why the year-end is considered a reasonable deadline for the signing, said Velkov. The first step towards the incorporation of the company that will build the new 2,000MW nuclear power plant at the Danube town of Belene is for NEK to spin the plant into a separate entity 49 per cent-owned by the yet-to-be-named strategic investor. There has been little clarity so far on the criteria that will be used in the selection of the strategic investor. Italy's Enel, Czech CEZ, Spain's Iberdrola, Germany's E.ON and Russia's RAO EES have so far been tipped as potential investors by NEK officials. Energy minister Rumen Ovcharov has so far firmly denied that the project will be granted any state guarantees despite the request to this end made by NEK. Under the project timetable, NEK and AtomStroyExport were due to ink by April 15 an agreement on the use of the Skoda equipment delivered to the Belene site in the early 1990s before the project was put on ice. AtomStroyExport told Dnevnik it is ready with a list of the Belene equipment that it will buy from NEK because it is not compatible with the new plant design. NEK will name the price at which it wishes to dispose of that equipment, AtomStroyExport further said. NEK sources said off the record the negotiations with AtomStroyExport are making difficult progress and that the Russian company is seeking lower purchase prices for the unassembled equipment.
Source: Dnevnik (23.04.2007)

Italian utility Enel notified in writing the Bulgarian energy ministry this March of its intentions to invest EUR 950 mln in a 750MW lignite-fired capacity on the site of the Maritsa Iztok 3 thermal power station which it is currently upgrading, said business development chief Alessandro Boschi. The The company is ready with the project's feasibility study. A market study is nearing completion while the environment impact assessment should be ready within 3 months. Bulgarian electricity producer Brikel, AES of the U.S. and Germany's RWE and E.ON interested in the construction of a new power generation facility in the Maritsa Iztok coal basin. Under the local legislation, a contract for a new power capacity could be tendered but the energy ministry has firmly steered clear of that option so far because it entails the signing of a long-term agreement for the purchase of the electricity that will be generated by the new plant. Boschi said Enel is ready to participate in a competitive procedure but noted that his company is ahead of potential competitors in terms of feasibility and market studies. He said Enel would not seek an long-term power purchase agreement. The Enel executive further said the output of the proposed power station will be competitive and would allow Bulgaria to keep a lid on electricity tariffs. The Enel board has approved the incorporation of a special company for the construction of the proposed plant. It will be launched if the Italian company is required to register a joint venture with Bulgarian national power grid operator NEK. The two companies have already signed a memorandum of understanding and Enel has offered a 27 per cent stake in the project to the Bulgarian partner.
Source: Dnevnik (25.04.2007)

EVN Bulgaria will submit to the State Energy and Water Regulatory Commission a request for a 6.29 per cent electricity price increase by the end of April. The price change will be valid starting October 1, 2007 at the latest, EVN said as quoted by Focus news agency. EVN envisions household electricity prices to increase by 6.45 per cent. Companies using low voltage electricity will have to pay additional 8.78 per cent and companies using regular voltage will pay 2.20 per cent more. The average monthly bill of household consumers reached BGN13.90, VAT not included. If the price hike is approved, the bills will increase by BGN 0.90 per month.
Source: Sega (25.04.2007)

Bulgaria and Russia have signed a Framework Programme on cooperation in construction. The programme envisages setting up joint ventures for the production of construction materials and developing the construction industry. The programme was signed within the framework of the 11th Intergovernmental Bulgaria-Russia Committee for trade, economic, scientific and technological cooperation that took place in Sofia. Economy and Energy minister Roumen Ovcharov said military-technological cooperation and settlement of debts remained moot points.
Source: National radio (25.04.2007)

Italy's Enel will invest more than EUR 950 million in the setting up of a new power generating capacity at the site of the existing Enel Maritsa-Iztok 3 thermal power plant (TPP). Enel Maritsa-Iztok 3 TPP and the National Electric Company (NEK) reached an agreement in October 2006 to carry out a feasibility study for the project. The results of the study show that the setting up of a 750-MW power generating capacity would be the best option. The project is expected to be completed in four years. Enel will secure funding for the project, which means that no state guarantees or long-term agreements for electricity supplies will be required. The new power plant is expected to utilise 7.5 million tonnes of brown coal annually. The new facility will be operative for a period of at least 30 years. It is expected to secure additional revenue of EUR 800 million under contracts with suppliers and sub-contractors for a ten-year period. A total of 1,500 employees are expected to take part in the construction works.
Source: Pari (25.04.2007)

The Bulgarian state has officially started raising funds for the construction of Belene nuclear power plant. Yesterday the National Electric Company (NEC) published an application invitation for strategic investors for Belene project. The successful investor will be allowed to acquire up to 49% of the new Electro-Energy Company Belene (ECB) that will be established to own and exploit the second nuclear power plant in Bulgaria - Belene NPP. The state, via NEC, will by all means possess at least 51% of the shares of the new company's capital. NEC will provide additional information on the project only to the selected companies. Investors will have to investigate by themselves the financial positions and prospects for ECB.
Source: Standart (03.05.2007)

Bulgaria's national power grid operator NEK has launched a competitive procedure to select a strategic investor for the construction of a new 2,000MW nuclear power plant at the Danube town of Belene. The bids are due by June 6. NEK will control a 51 per cent stake in the future Power Company Belene (PCB) while the remaining 49 per cent are up for grabs. NEK will contribute to the assets of the company the Belene site and delivered equipment. PCB will own and operate the new nuclear power plant. NEK reserves the right to modify the terms of the competition without prior notice or abandon it altogether. The potential investors are expected to specify by June 5 the maximum stake they would like to own in PCB and to state if they wish to participate in the operation and maintenance of the plant and purchase any of the electricity output. The offers will be assessed in terms of the candidates' prior experience in the construction and running of nuclear power plants, in the export of electricity and their capacity to secure financing for the future plant operator. The strategic investor will be expected to raise EUR 2 bln in financing. The overall cost of the project is seen at EUR 4 bln. The Bulgarian government is considering the granting of state guarantees for the project financing. NEK said a procedure is underway for the disbursement of loan financing by Euratom. NEK will buy the electricity produced by the new power station for a period of 15 years and has asked the potential candidates to state whether they are also interested in long-term contracts. The final agreement for implementation of the Belene nuclear power plant project with a group led by Russia's AtomStroyExport is expected to be signed before the end of 2007 The construction of the first unit should kick off in 2008 and be brought on stream by 2014. Italy's Enel, Czech CEZ, Spain's Iberdrola, Germany's E.ON and Russia's RAO EES have so far been tipped as potential investors in the project.
Source: Dnevnik (03.05.2007)

Kremikovtzi announced 97 eco-projects to reach required standards Kremikovtzi is planning to initiate 97 projects over the next six years, in order to reach all required ecology criteria, said the chairman of the supervisory board of Kremikovtzi Mr. Alexander Tomov. The total estimated cost for this programme is BGN 319 mln, but after its proper implementation the company will introduce all necessary prerequisites to gain a complex permission, which the company is still desperate to get. In the beginning of April, the Minister of Environment and Waters Dzhevdzhet Chakarov decided to deny Kremikovtzi’s application for such permission. So far the company has invested BGN 52 mln (for the 2000 – 2006 period) in order to improve its eco-standards. The company is also planning to introduce a new system that will filter the water wastes. Some other innovations include: reconstruction of the furnace’s filters, the system for transportation of the dust from the electric filters, mounting of sensors that will detect the emissions from the plant’s production units and modernization of the thermo-producing systems at TPP Kremikovtzi. Tomov also said that Kremikovtzi’s current liabilities total BGN 303 069 602, as to NEK they are BGN 84.6 mln, to Bulgargas BGN 24 mln and private companies – BGN 124.5 mln. For the last two years the company has paid BGN 776 441 602 old debts. This year, the company was proud to announce that it has cleared all its debts to the state. Tomov said that currently 7 200 workers are employed at the site and their average salary is BGN 900. Another 54 000 people are somehow engaged with company’s activities. The company also announced that it is forming 2.5 – 3% of the GDP and is one of the biggest clients of companies like seaport Bourgas and BDZ.
Source: mediapool.bg (04.05.2007)

All Kremikovtzi liabilities are cleared Kremikovtzi does not have any liabilities to the state. This was said by the chairman of the supervisory board of Kremikovtzi JSC Alexander Tomov in March. He also introduced a paper issued by the National Revenues Agency, proving this statement. Since 2002, when Global Steel Holdings acquired the majority stake in Kremikovtzi, till now the company has paid BGN 776.441 mln to different state institutions. BGN 77 mln were paid in 2007. We periodically cover our debt installments to NEK (BGN 86 mln), Bulgargas (BGN 24 mln) and the State fund for reconstruction and development (BGN 70 mln), said Tomov. NEK and Bulgargas, confirmed this information and stated that currently they do not have any problems with Kremikovtzi. The company still have liabilities to private companies totaling BGN 124 mln.
Source: Pari (04.05.2007)

Sensors detect pollution caused by Kremikovtzi Sensors will detect the emissions around Kremikovtzi metallurgical plant. They will be mounted in the surrounding villages. This was promised by the chairman of the supervisory board of Kremikovtzi Alexander Tomov during a meeting of the ecology commission, part of the Sofia municipal council. A new environment friendly programme is already adopted at it will implemented pretty soon, added Tomov. For its implementation, about BGN 319 mln will be required over a 4-year period. Company’s experts have already developed a scheme for stopping the waste waters from the plant. Currently 7 200 workers are employed at the site and their average salary is BGN 900, said Tomov. The current liabilities to NEK, Bulgargas and other major creditors, total BGN 303 mln.
Source: Novinar (04.05.2007)

Gazprom plots foray into Europe through Bulgaria Russian state-controlled gas monopoly Monday announced a new project for the transit of Russian fuel to Southern and Central Europe via Bulgarian territory. The announcement was made at a meeting in Moscow between Gazprom CEO Alexei Miler and Bulgarian economy minister Rumen Ovcharov. The implementation of the project in partnership with Bulgargaz, the Bulgarian state-owned gas distributor, will take Sofia's geostrategic position to another level, said Miler after the meeting. Ovcharov refused to give any details about the project but said it will increase several-fold the current gas transit volumes. In his view, the project could be activated as early as the beginning of June. Energy experts said the project concerns the expansion of the incumbent transit network through Macedonia to Italy and through Romania to Hungary. Ovcharov dismissed as untrue a report in Russian newspaper Komersant claiming that Moscow will tie the increase in transit volumes to the granting to Russian companies of access to the modernisation of Bulgaria's gas distribution network. Moscow has long had an eye on the gas distribution business in Bulgaria. A long-term memorandum on gas deliveries signed last year between Gazprom and Bulgargaz envisages the creation of joint ventures for the supply and distribution of natural gas. A Gazprom press release said that the transit of Russian gas via Bulgarian territory rose to 3.2 bln cu m in 2006. Before his get-together with Miler, Ovcharov met with Sergei Shmatko, CEO of AtomStroyExport, tapped to build a new 2,000MW nuclear power plant at Bulgarian Danube town of Belene. It was announced that an agreement will be signed by late May on the shipping to a Russian nuclear power plant of the disused equipment delivered to the Belene site in the early 1990s before the project was mothballed. AtomStroyExport said it has specified the Belene works that will be farmed out to Siemens and Areva. AtomStroyExport has nothing to do with the financing of the Belene project, said Ovcharov in response to media reports that the Russian company was preparing to issue bonds in a bid to secure funding for the undertaking.
Source: Dnevnik (08.05.2007)

Bulgaria’s National Electric Company (NEC) will sign an agreement for the funding of the Belene nuclear power plant (NPP) project execution with the French BNP Paribas by May 20 2007. NEC and BNP Paribas are specifying the conditions for the loan. Paribas will fund the first year of power plant construction. The bank will provide 250 million euro for the project execution. Paribas won the tender for the funding, defeating 10 other competitors, mediapool.bg said. The names of the other banks in the tender are still kept secret. Bulgaria applied to the European Atomic Energy Community (EURATOM) for another 300 million euro of funding needed for the project execution. NEC also launched a tender for 49 per cent of the company, which will be founded as investor in the Belene project.
Source: mediapool.bg (15.05.2007)

France's BNP Paribas has won the competition to provide loan-financing for the construction of a new 2,000MW nuclear power plant (NPP) at Bulgarian Danube town of Belene, Russian news agency ITAR-TASS reported on Monday, May 14. According to the news report, the bank will lead a group of partners in securing a credit of EUR 250 mln needed for the launch of construction. The competition was invited a month ago by Bulgarian national power grid operator NEK. NEK confirmed the selection of BNP Paribas but said the loan agreement has not been signed yet. The construction of the Belene NPP has been commissioned to Russia's AtomStroyExport. The final agreement for implementation of the project is expected to be signed before the end of 2007.
Source: Dnevnik (15.05.2007)

CEZ Electro, a unit of the Czech CEZ Group, has asked the Bulgarian energy regulator to be issued a 10-year permit to operate as a power trader. CEZ Electro is currently licensed to operate as a public electricity supplier in the areas serviced by the CEZ-owned regional power distribution companies in Sofia, Sofia-Region and Pleven. The concept of parent company CEZ is that CEZ Trading, licensed as a power trader in 2006, will engage in wholesale electricity transactions with major power consumers while CEZ Electro will service retail clients and clients choosing to buy their electricity from power traders. CEZ Electro has a clientbase of some 2 mln customers. The decision on the part of CEZ to apply for the licence is prompted by the plans of national power grid operator NEK to start selling electricity to customers connected directly to its network which are currently serviced by the power distributors.
Source: Dnevnik (15.05.2007)

German company WE2 said it will invest BGN 200 mln in 3 wind farms in locations in North-eastern Bulgaria. Under the first phase of the project, WE2 local subsidiary Wind Park Stanata will install 13 turbines near the village of Odartsi, in the Dobrich region. The wind farm will have an annual output capacity of 68,800MW. The EUR 38.2 mln cost of the Odartsi wind energy project has earned the German company a First Class Investor certificate from the InvestBulgaria Agency, the local investment promotion authority. The agency undertakes to facilitate the award of a concession contract for the land needed for the implementation of the project. It will also assist the signing of the contracts for the purchase of the electricity output by national power grid operator NEK. The 3 wind parks will generate 200,000MW of electricity annually. The project will be financed by WE 2 parent WPD, a German wind power corporation.
Source: Dnevnik (16.05.2007)

NEK cuts power supply to Kremikovtzi Bulgaria's National Electric Company (NEK) has partially cut electricity supply to Kremikovtzi due to debts. After a series of warnings in the past two months, on May 7 NEK disconnected one of the power lines to the metallurgical plant. Another line was shut down on Wednesday, May 16. Kremikovtzi's current and overdue liabilities amount to BGN 6.282 million, NEK said. In addition, the rescheduled debts of the plant exceed BGN 80.307 million. Kremikovtzi's management has been cautioned to take the necessary measures to prevent industrial accidents. The steel-maker's management, however, disputes the amount due. All debts as at April 30 have been repaid, Kremikovtzi said.
Source: Pari (17.05.2007)

NEK once again in quarrel with Kremikovtzi Kremikovtzi is drastically violating its contract with NEK for electricity power consumption, NEK representatives announced. Until May 16, 2007 the current liabilities for unpaid electric power consumed by the metallurgical plant plus the old debt payment plan that the company has to NEK total BGN 5 280 000. Furthermore the total old liabilities of Kremikovtzi are BGN 80 307 733. This is just an impossible way to do business as Kremikovtzi’s owners are doing their best to delay their payment plan to NEK and the relations between the two companies is far away from being good. NEK also said that Kremikovtzi’s Board of Directors is already warned that NEK might limit the electric supply to the plant so they should be able to take all precautions to limit the chance of technical brake-ups due to the electric shut-down. If there are any problems with the technical base as a result of the decreased electric supply, NEK will not take any responsibility for its actions, the company warned.
Source: Monitor (17.05.2007)

Bulgaria's energy sector is singled out as having one of the highest public procurement corruption risks in a report released by the local Center for the Study of Democracy (CSD). The corruption environment in the sector thrives because of the absence of adequate oversight during and after the public procurement procedures. In 2004-2006, national power grid operator NEK, the Maritsa Iztok mining company, nuclear power plant Kozloduy and thermal power plant Maritsa Iztok 2 handed out procurement contracts worth a combined BGN 8.5 bln. Only 21 per cent of the contacts were awarded after a procedure pursuant to the Public Procurement Act. Over 50 per cent were negotiated directly with the supplier and only 0.7 per cent of the contracts were executed on the commodity exchange despite the fact that they involved traded commodities. The CSD experts recommend a rethink of the contracting of advisory services in the energy sector. According to the report, this market is cornered by 5 companies: Frontier, Risk Engineering, Parsons Bulgaria, Atomenergoremont and Minstroy Holding.
Source: Dnevnik (17.05.2007)

Steel mill Kremikovtzi faces power cuts National power utility NEK said it has started to power down the electricity supply of Sofia-based steel mill Kremikovtzi over the non-payment of its bills. Current outstanding debts total BGN 5.2 mln. NEK has already rescheduled the payment of another BGN 80.3 mln over a 10-year period. On Wed, Kremikovtzi issued its unconsolidated financial report for '06 showing long-term liabilities of BGN 877 mln and short-term liabilities of BGN 612 mln. Loss widened to BGN 245 mln from BGN 201 mln at end-'05. Net sales rose 18 per cent to BGN 956 mln.
Source: Dnevnik (17.05.2007)

Kremikovtzi JSC will appeal against NEK’s decision to limit the power supply Kremikovtzi JSC will appeal against NEK’s decision to limit the power supply to the metallurgical factory. Currently Kremikovtzi owes BGN 150 000 to NEK. This was said by Kremikovtzi’s chief secretary Bozhko Bonev on a press conference yesterday. At the beginning of May, company’s total liabilities to NEK are BGN 2 650 000. Today Kremikovtzi has received a bank confirmation that BGN 2.5 mln were successfully transferred to NEK’s bank account by Stemcor company, which is a Kremikovtzi debtor. Bonev did not deny the released information that Kremikovtzi owes BGN 94 mln to NEK. He explained that the payment plan of this old debts has not been delayed as it the installments will be paid until 2013. Kremikovtzi’s Board of Directors said that currently the plant is using between 77 – 80 megawatts electric power, which is actually 50 megawatts less than the desired power supply. Kremikovtzi is losing USD 1.6 mln daily due to the insufficient power supply. Company representatives said that the contract with NEK should be reconsidered as NEK should understand that there are some production processes that should not be limited or stopped. Bonev also added that the company will appeal at the Court against NEK cut back in electric power supply. The company will also demand for the resignation of NEK’s executive director Mardik Papazjan.
Source: Agency Focus (17.05.2007)

A new bill approved by the parliamentary energy policy committee authorises the Bulgarian power regulator is authorised to slap fines of BGN 20,000 to BGN 1 mln on the regional power distribution companies and national power grid operator NEK if they refuse to connect into their networks newly-built hydro, wind or biomass-fired power stations. The new renewable energy sources encouragement bill, which will be debated in parliament next week, addresses the complaints of some investors that the power distributors and NEK either refuse a connection to their networks or deliberately delay the coupling. The timeframe for the coupling of the new power facility with the network of the power distributor/NEK should not overstep the launch date of the new power facility. The new bill obliges the power distributors and NEK to buy the electricity produced from renewable energy sources - excluding hydro power stations with capacity of above 10MW, at preferential prices set by the power regulator.
Source: Dnevnik (18.05.2007)

Kremikovtzi will sue NEK Kremikovtzi will sue NEK’s decision to cutback the power supply to the metallurgical site for old debts. The payments are delayed by just 10 days, while as a result of the power supply shortage, Kremikovtzi is losing USD 1.2 mln per day. The chief secretary of Kremikovtzi Bozhko Bonev said that the delayed payment to NEK totals BGN 150 000 and yesterday the company has transferred another BGN 2.5 mln. NEK responded that they have not received this money in their bank account yet.
Source: Sega (18.05.2007)

Kremikovtzi pays its electric bill to NEC Kremikovtzi once again paid its electric bills with delay, so electric power supply will not be cut down. The National Electric Company (NEC) itself released this news yesterday. As until April 30, the metallurgical plant owed BGN 5.5 mln to NEC, as BGN 2.9 mln were old liabilities. The total old debts that Kremikovtzi still has to pay to NEC are BGN 80 mln. A few days ago NEK warned that if Kremikovtzi does not pay its monthly electric bills, it will partially cut its electric power supply. Kremikovtzi’s Board of Directors responded with a wish to see NEC’s boss Mardik Papazyan fired.
Source: Standart (22.05.2007)

Germany utility RWE said it has signed last week with Bulgarian state-owned mining company Maritsa Iztok an agreement that paves the way for the two partners to field a joint bid for the construction of a new 600-700MW power capacity in the Maritsa Iztok coal basin. The agreement will provide opportunities for joint feasibility study and construction of the new power plant. A commercial corporation will be specially incorporated for the purposes of the project where RWE will control a 51 per cent interest. The company owns land that could be used as the site of the new power station, said Maritsa Iztok executive director Ivan Markov. Almost a decade ago, the mining company and RWE co-created a joint venture in view of the upcoming privatisation of Maritsa Iztok. The two sides have agreed to dissolve the joint venture. According to the energy ministry, the privatisation of the mining company is not on the current agenda. RWE further said that the proposed power generation capacity will cost EUR 1 bln and could be brought on stream around 2013. Bulgarian electricity producer Brikel, AES of the U.S. and Germany's RWE and E.ON interested in the construction of a new power generation facility in the Maritsa Iztok coal basin. Enel has one leg up on the competition. It has completed the feasibility study and is waiting on the environment impact assessment. The Italian utility has argued that the best location for the new power station is the site of the Maritsa Iztok 3 thermal power plant it is currently upgrading. Brikel and AES are touting the attendant benefits of their respective sites in the area. Under the local legislation, a contract for a new power capacity could be tendered but the energy ministry has firmly steered clear of that option so far because it entails the signing of a long-term agreement for the purchase of the electricity that will be generated by the new plant. RWE also said it will participate in the procedure initiated by Bulgarian national power grid operator NEK to select a strategic investor for the construction of a nuclear power plant at Belene, on the Danube river. Bids are due by June 6.
Source: Dnevnik (30.05.2007)

BDZ, Deutsche Bahn to operate joint routes BDZ, the Bulgarian railway carrier, will incorporate a passenger haulage joint venture with German counterpart Deutsche Bahn (DB), Oleg Petkov, chief executive of the Bulgarian company, said on Monday, June 4. The two companies signed a co-operation agreement in April 2006. BDZ and DB are in talks to operate joint train routes from Sofia and Burgas to various destinations in Germany. A working group is selecting the routes and tackling the legal issues related to the creation of the joint venture, said Petkov. BDZ is facing a shortfall of cargo and passenger cars and has signed a 10-year leasing deal with a Swiss company for the supply of up to 100 preowned passenger cars. The transport ministry has approved in principle the issue of a EUR 120 mln bond to raise money for the purchase of 1,200 new cargo cars and for the retirement of a BGN 54 mln debt owed to national power utility NEK, said Petkov. The debt will have to be approved by the finance ministry as well. It would be the second BDZ bond after a EUR 30 mln paper placed in 2004.
Source: Dnevnik (05.06.2007)

Unsuspected and alarming facts about the shape of Bulgaria's energy sector were disclosed after Tuesday's meeting of outgoing energy minister Rumen Ovcharov with the chief executives of the state-owned power corporations. It emerged that national power grid operator NEK has outstanding payments on electricity it has bought from nuclear power plant Kozloduy. For their part, NEK and the NPP said that they are selling electricity to consumers at a loss and reiterated they will insist before the power regulator to approve a more significant tariff hike. The regulator is also under increased pressure from the other domestic power producers and distributors to increase electricity prices. State Energy and Water Regulatory Commission chairman Konstantin Shushulov recently vowed that the upward revision of electricity prices from July 1 will not exceed 1-2 per cent. NEK has made on payments on the electricity it has bought in the past month, running up BGN 45 mln in unpaid bills, said NPP executive director Ivan Genov. NEK refused to comment on Genov's statement. According to energy experts, a possible downshift in the financial shape of the power grid operator may prompt negative rating action and raise question marks over its ability to raise funding for major projects like the construction of the Belene NPP. NEK said in a press release that it buys electricity from the producers at 0.06-0.061 levs/kWh and sells it to the power distribution companies at BGN 0.062. At the same time, the real cost, including transmission and network access, is BGN 0.075. The company noted that the regional power distributors sell to households the electricity they buy at 0.062 levs/kWh at a daytime tariff of 0.147 levs/kWh. Therefore the company feels it is reasonable to seek a 24.5 per cent increase in the price at which it sells electricity to the power distributors from July. For the first time in a decade, NEK has also proposed a hike in high-voltage electricity supplied primarily to major industrial consumers. The proposal is for a 21.5 per cent increase. NEK cited the electricity export undercapacity after the closure of Kozloduy units 3 and 4 as another factor for its deteriorating financials. However, company data show that power exports generate only 18 per cent of total revenues. The electricity producers are also campaigning for a power tariff hike. Kozloduy NPP has proposed a 24 per cent hike from July but is yet to hear from the regulator, said Genov. He said the company is losing BGN 7-9 per sold megawatt of electricity. The Varna thermal power plant is seeking a 12 per cent hike in the aftermath of gains in coal import prices.
Source: Dnevnik (06.06.2007)

NEK has accumulated BGN 45 mln debt towards the Kozloduy nuclear power plant over the last month and a half, Ivan Gegov, executive director of the NPP said. NEK's next payment for the electricity purchased from the NPP is scheduled for June 11. If the payment is delayed, NEK's liabilities towards the NPP will grow to BGN 60 mln Gegov said. The delay hinders the normal operation of the NPP, as well as the implementation of its reconstruction programme.
Source: BTA (06.06.2007)

Ten Companies Compete for Belene NPP "Ten companies are willing and ready to invest in the Belene NPP project. The deadline for submitting bids to the National Electric Company (NEC) expired yesterday at 12:00 a.m. Among the candidate investors are Italian Enel, Czech company CEZ, Electricite de France, Swiss companies ATEL and EGL, Belgium Electrabel, Spanish Endesa, German E. oN and RWE and Bulgaria Cumerio Med. The companies will go through a preliminary selection after which a the preferred partners will be shortlisted," NEC officials informed. The private candidates will be able to acquire up to 49% of the project. According to a decision of the cabinet, Bulgaria will keep its majority share of at least 51%. A few weeks ago, French BNP Paribas was selected as a finance institution for the Belene NPP project. The bank and the NEC signed a contract for the first loan of 250 million euro for a term of 5 years. The European Commission fully backs Bulgaria's decision for the construction of Belene NPP," stated a representative of the EC Commission for Transport and Energy, who took part in the international nuclear energy forum Bulatom held in Varna.
Source: Standart (07.06.2007)

Ten corporations have entered the procedure launched by Bulgaria to select a strategic investor for the construction of a new 2,000MW nuclear power plant at the Danube town of Belene. Italy's Enel, CEZ of the Czech Republic, Germany's RWE and E.ON, France's EDF, Switzerland's Aare-Tessin AG fuer Elektrizitaet and Elektrizitaets-Gesellschaft Laufenburg AG, Spain's Endesa, Belgium's Electrabel and local company Cumerio Med are bidding for a 49 per cent stake in Electropower Company Belene, the operator and owner of the future NPP. The candidates shortlisted for the next stage of the competition will be announced within the next month and a half, said Lyubomir Velkov, chief executive director of national power grid operator NEK which is in charge of the procedure. The information memorandum will be provided to the shortlisted candidates after the signing of a confidentiality agreement. The strategic investor will be expected to raise EUR 2 bln in financing for the project. In the invitation for the selection procedure, NEK promised the potential investors a 15-year contract for the purchase of the output of the new power station and possible state guarantees. Negotiations are underway with the finance ministry for the provision of state guarantees but I wouldn't hold my breath, said Velkov. The NEK executive will meet Thursday with representatives of the banks interested in funding the project. A month ago, NEK tapped BNP Paribas to extend a EUR 250 mln bridge loan for the construction of the NPP. NEK expects to pick a strategic investor by December when the final agreement for the implementation of the Belene project should be inked with a group led by Russia's AtomStroyExport.
Source: Dnevnik (07.06.2007)

10 companies rubbing shoulders for strategic partnership in NPP Belene project 10 companies are competing to become strategic partners of the new NPP Belene project. This news was announced by the National electric company (NEC), The deadline for submitting papers ended on June 6, 2007 12 at noon. The ten candidates are: Swiss ATEL, French EDF, Swiss – EGL, Belgian – Electrabel, Spanish – Endesa, Italian – Enel, German – E.ON, Bulgarian – Cumerio Med, German – RWE and Czech – CEZ. These companies will be discussed and only approved candidates will be shortlisted. After that, when the approved candidates sign a confidentiality paper, they will be provided with the whole project documentation and than they will start negotiations, explained from NEC. NEC will chose its new strategic partner until the end of the year. At the end of May, NEC ensured a credit line by BNP Paribañ for a 5-year syndicated EUR 250 mln corporate loan.
Source: Darik Radio (07.06.2007)

Increase of electricity's price with 10% from July 1 prognoses from National Electricity Company (NEC). For households this means an increase of 0,15 BGN per kwh, shared the executive director of NEC Lubomir Velkov. State Committee for energy and water regulation will take the final decision about the increase. From the Electricity company insist for earlier price growth but the Committee refused the demand.
Source: BTA (07.06.2007)

A project for a biomass-fuelled co-generation facility drafted by the Ruse municipality will receive a EUR 1.554 mln grant from the Kozloduy International Decommissioning Support Fund. The aid will cover 45 per cent of the implementation costs. The installation will produce gas for heating and electricity production. National owner grid operator NEK will buy the electricity output at preferential prices.
Source: Dnevnik (07.06.2007)

"Ten companies are willing and ready to invest in the Belene NPP project. The deadline for submitting bids to the National Electric Company (NEC) expired yesterday at 12:00 a.m. Among the candidate investors are Italian Enel, Czech company CEZ, Electricite de France, Swiss companies ATEL and EGL, Belgium Electrabel, Spanish Endesa, German E. oN and RWE and Bulgaria Cumerio Med. The companies will go through a preliminary selection after which a the preferred partners will be shortlisted," NEC officials informed. The private candidates will be able to acquire up to 49 per cent of the project. According to a decision of the cabinet, Bulgaria will keep its majority share of at least 51 per cent. A few weeks ago, French BNP Paribas was selected as a finance institution for the Belene NPP project. The bank and the NEC signed a contract for the first loan of EUR 250 million for a term of 5 years. The European Commission fully backs Bulgaria's decision for the construction of Belene NPP," stated a representative of the EC Commission for Transport and Energy, who took part in the international nuclear energy forum Bulatom held in Varna.
Source: Standart (07.06.2007)

A project for the setting up of a biomass cogeneration plant in Rousse has been approved by the Kozloduy International Decommissioning Support Fund, Rousse regional governor, Mariya Dimova said. The fund will extend a EUR 1,553,850 grant for the project, which accounts for 45% of the its value. The technology allows processing of straw into gas for heating. The generated electricity will be sold at preferential prices to the National Electric Company (NEK). The value of the electricity generated annually will exceed BGN 600,000.
Source: Pari (08.06.2007)

Household and industrial electricity tariffs will be revised upwards by 5 per cent from July instead of the 1-2 per cent adjustment promised by the Bulgaria power regulator, says a report of the State Energy and Water Regulatory Commission which will be discussed at an open-door meeting on Tuesday. The peak household electricity tariff will increase to 0.154 levs/kWh with taxes while the off-peak tariff is set at 0.098 levs/kWh. The regulatory commission will fix different transmission tariffs that will be charged by the power distributors from their clients. The highest transmission tariff will be set for the E.ON-controlled power distributors in Varna and Gorna Oriahovitsa. 'The draft revision ensures the minimum necessary correction of 0.008 levs/kWh to the peak tariff and 0.005 levs/kWh to the off-peak tariff while keeping consumers save from a price shock and preserving the reliability of the energy system. The adjustment is prompted by significant gains in international and domestic fuel prices which has a direct and unavoidable effect on electricity production costs,' said SEWRC chairman Konstantin Shushulov. The regulator rejected all tariff hike proposals tabled by the electricity producers. The price at which national power grid operator NEK will sell electricity to the power distributors will rise by 7 per cent. NEK was seeking a 24,5 per cent increase.
Source: Dnevnik (11.06.2007)

Bulgaria's investment promotion authority last week issued a First Class Investor certificate to Italian utility Enel for its investment in the rehabilitation of the lignite-fired Maritsa Iztok 3 thermal power station. The certificate will be useful in obtaining the various permits necessary for the upcoming rehabilitation works, said Enel Maritsa Iztok 3 executive director Enrico Viale. Enel Maritsa Iztok 3 is a joint venture between Bulgarian national power grid operator NEK and Dutch-registered Maritza&M Holding which is controlled by Enel. The main goals of the EUR 680 mln rehabilitation project are to increase the efficiency and the capacity of the power plant (after the conclusion of the project the power plant will have a capacity of 900 MW), to extend its operational life by more than 15 years, and to comply with European environmental standards. The Italian company is among the 10 corporations that have enter the procedure launched by Bulgaria to select a strategic investor for the construction of a new 2,000MW nuclear power plant at the Danube town of Belene. The candidates shortlisted for the next stage of the competition will be announced within the next month and a half. Enel has also proposed to invest in a new 750MW lignite-fired capacity on the site of the power station which it is currently upgrading.
Source: Dnevnik (11.06.2007)

Bulgaria's national power grid operator NEK said it is headed for a year-end loss of BGN 65 mln if the nation's energy regulator approves only a 7 per cent upward revision of the price at which the company sells electricity to the regional power distribution utilities. NEK is seeking a 24.5 per cent hike motivated with the losses the company is incurring after the 2006 closure of units 3 and 4 of the Kozloduy nuclear power plant (NPP). The power grid operator has been selling electricity on the domestic market at a loss since 2000, said Lilia Ivanov, head of the company's economic directorate. NEK tallied a loss of BGN 37 mln in January-April alone. The tariff adjustment proposed by the regulator will make it difficult for NEK to service loans totalling EUR 500 mln, including credits borrowed for the modernisation of the Kozloduy units 5 and 6 and the credits for the construction of the Tsankov Kamak hydro power complex and the Belene NPP. Kozloduy NPP executive director Ivan Genov said he accepts the tariff of 15.18 levs/MWh set by the regulator although it is somewhat below the 15.59 levs/MWh requested by the company. The thermal power stations in Bobov Dol and Varna said they are unhappy with the new tariffs because they will fall short of covering their production costs. Czech utility CEZ, which operates the power distributors in Sofia city, Sofia region and Pleven, also said the revenues generated by the new tariffs will not cover production costs. EVN, the Austrian utility operating the power distributors in Stara Zagora and Plovdiv, has pointed out it makes no sense for households to buy electricity cheaper than that for SMEs. The regulator has proposed to adjust industrial and household tariffs by 5 per cent from July 1. The peak household electricity tariff will increase to 0.154 levs/kWh with taxes while the off-peak tariff is set at 0.098 levs/kWh. The final decision will be taken by June 28.
Source: Dnevnik (13.06.2007)

Bulgaria's utilities regulator DKEVR recommended that electricity prices charged to the end-users were raised by only 5% starting next month, the institution's chairman Konstantin Shushulov said on Tuesday. That would mean the daytime tariff rising to BGN 0.154 per KWh, from BGN 0.146, and the nighttime tariff to BGN 0.098, from 0.093, value-added tax included. But Bulgaria's power plants, power distributors and grid operator NEK have all dismissed the proposal as insufficient. NEK would not be able to pay its debts to power producers, a spokesman for the company said. The power grid operator already owes BGN 45 M to Bulgaria's nuclear power plant Kozloduy, whose officials have said that they expect the plant to end the year in the red unless power tariffs are raised drastically. Germany's E.ON, Czech CEZ and Austrian EVN, who own power distribution companies in the country, have all criticised the regulator's proposal as inadequate.
Source: Darik Radio (13.06.2007)

The delays dogging the rehabilitation of thermal power plants (TPPs) Maritsa Iztok 2 and 3 and the required transposition of European harmful emission standards have Bulgaria on track for an electricity shortfall in 2008, Mardik Papazian, executive director of national power grid operator NEK, told the International Energy Forum underway in Varna. The EU directive on large combustion installations that will be enforced here from 2008 will shut down one unit at the Bobov Dol TPP and the units in the Maritsa Iztok basin that have not been issued integrated pollution prevention and control permits. Maritsa Iztok 3, a project commissioned to Italy's Enel, is 3 years behind schedule while the delay at Maritsa Iztok 2, a project farmed out to Japan's Mitsui, is a year off schedule. Only two units each will remain in use at the two power stations in 2008 because the rest do not have sulphur dioxide removal equipment, said Papazian. That would reduce the capacity of the energy system by 4 bln kWh. The units could remain on stream but will incur hefty eco fines. The issue will be discussed by the parliamentary energy policy committee next week. The problem is further compounded by the fact that Bulgaria will not have a power import option as the whole region is expected to struggle with a 15-20 bln kWh shortfall. NEK estimates that CO2 and sulphur oxide emissions will triple as the workload of coal-fired power stations increases after the 2006 closure of units 3 and 4 of the Kozloduy nuclear power plant. The electricity produced by thermal power plants will increase by 5.6 per cent to 58 per cent of total domestic output in 2007. The local power market will open to competition only formally on July 1, 2007, said the representatives of the power companies. State Energy and Water Regulatory Commission chairman Konstantin Shushulov said the deregulated market will reach 25 mln MWh versus 33-34 mln MWh in total output.
Source: Dnevnik (14.06.2007)

Bulgaria's Power Distribution Company (NEC) threatens to introduce restrictions on electricity consumption in case the prices are not raised up to 6.5%. Bulgaria could face such a problem because of the old networks. This is why the distribution company needs funds for emergency investments. The state regulatory commission insists that the electricity prices be increased by an average of 1.5 stotinki (1 euro = 1.95 levs; 1 lev = 100 stotinki).
Source: Standart (14.06.2007)

Lukoil Bulgaria tops '06 earnings chart The local division of Russian oil major Lukoil is Bulgaria's biggest company in terms of earnings, shows a ranking of the nation's largest, fastest-growing and most profitable corporations prepared by weekly newspaper Capital. Lukoil Bulgaria was well clear of the runner-up Cumerio Med with BGN 3.3 bln in earnings for 2006. The copper smelter posted full-year earnings of BGN 2.5 bln. The top 5 is rounded off by national power grid operator NEK with BGN 2.26 bln in earnings, state-owned gas distributor Bulgargaz with BGN 1.2 bln and mobile carrier Mobiltel with BGN 1.14 bln. Steel mill Kremikovtzi, telecom carrier BTC, fuel retailer OMV, nuclear power plant Kozloduy and fuel company Naftex Petrol complete the top 10 lineup. Capital ranks mining company Chelopech Mining, Mobiltel and News Corp. company Balkan News Corporation as the nation's most profitable corporations for 2006. BTC Mobile, the cellular division for former telecom monopoly BTC, Trakia Glass, a subsidiary of Turkish glass maker Sisecam, and Stil Commodities recorded the most dynamic pace of development last year. The combined revenues of the 10 top-earning companies added up to BGN 15 bln in 2006 or 30 per cent of the nation's GDP. The biggest companies posted an average revenue growth of 20 per cent for 2006 while the number of corporations with a turnover exceeding BGN 1 bln has increased from 3 to 7 in the past 5 years, said Capital. Capital 100 indicates that the metallurgy and mining companies make the biggest contribution to Bulgaria's economy and exports. In addition to the traditional top-earners from the oil and power industries, retailers and industrial manufacturers also had a strong showing in the Capital 100 rankings. One positive trend that has emerged from the chart is the solid performance of sectors generating higher value added - telecommunications, electronics and pharmaceuticals, which posted earnings growth above the 2006 average. The weight of state-owned enterprises continues to decrease with each new edition of the Capital 100 rankings. Five years ago, roughly a third of the nation's biggest corporations were state- or municipality-owned. That number is down to 13 in 2006.
Source: Dnevnik (15.06.2007)

The Varna thermal power plant, owned by Czech utility company CEZ, will slump to a loss of BGN 10-12 mln in 2007 if the energy regulator hikes electricity prices by 6 per cent instead of the 12 per cent margin proposed by the company, said board chairman Jan Vavera. At the moment, the power station incurs a loss of BGN 5 for every 1MWh of electricity output after the State Energy and Water Regulatory Commission kicked back a proposal to revise the tariff to 54.89 levs/MWh and set the price at BGN 50.24. The power station claims that the revenues generated under the current tariff fall short of covering production costs. It is campaigning for a tariff of 56.7 levs/MWh and a Reserve Capacity Mechanism (RCM) tariff of 8.48 levs/MWh. The RCM tariff is charged from national power grid operator NEK for maintaining a certain power capacity on stand-by. The Varna TPP tallied a loss of BGN 3 mln for January-May despite a 64 per cent decrease in output in comparison with the year-ago period. The power station would like the environment ministry to increase its CO2 emissions allowance so that it could amp up production and offset the loss, said Vavera. That would mean an output increase from 5.5 to 7 TWh. CEZ said it may resort to the purchase of emissions allowances for the power station. The privatisation contract obliges the owner to spend EUR 100 mln on environment measures.
Source: Dnevnik (15.06.2007)

Bulgaria may start importing electricity in order for power-supply restrictions to be avoided during the autumn and winter seasons, Valentin Kirchev, deputy chairman of the State Commission for Energy and Water Regulation (SCEWR), said. Electricity prices will go up considerably only if large amounts of electricity are imported, Kirchev said. The electricity transmission fee will be raised in order for the interests of the National Electric Company (NEK) to be protected. Kirchev, however, refused to disclose any details. SCEWR has also rejected CEZ's claim to read the electricity meters of its subscribers once in three months. CEZ owns the electricity distribution companies operating in western Bulgaria.
Source: Pari (20.06.2007)

The Bulgarian government Wednesday approved the construction of a 600MW power generation capacity in the Maritsa Iztok coal basin, Southern Bulgaria. The investor that will build the facility, with an estimated cost of around a billion euro, will be selected in a competitive basis by the Maritsa Iztok mining company. Under the local legislation, a contract for a new power capacity could be tendered if the country is experiencing a power shortage. The contracting procedure would entail that national power grid operator NEK sign a long-term agreement for the purchase of the electricity output. However, such a contract would slow down the deregulation of the local energy sector. According to legal experts from the energy ministry, the mining company is under no legal obligation to initiate a competitive procedure. The news that it has been put in charge of the future selection procedure sparked fears among potential investors that the outcome may have been predetermined. A month ago, Germany's RWE said it has signed with the Maritsa Iztok mine an agreement that paves the way for the two partners to field a joint bid for the construction of a new power capacity. The procedure will be fair and transparent, assured deputy energy minister Galia Tosheva. A working group will be set up with representatives form the energy ministry, the power regulator and NEK to lay out the selection criteria, she said. The investor will be picked on the basis of criteria like implementation timeframe, environmental impact and technological solutions, said Ivan Markov, executive director of the Maritsa Iztok mines. In addition to RWE, Bulgarian electricity producer Brikel in a consortium with Czech utility CEZ, Italy's Enel, AES of the U.S. and Germany's E.ON have publicly indicated interested in the construction of a new power generation facility.
Source: Dnevnik (21.06.2007)

Bulgaria was on the verge of an energy crisis yesterday. The reason was record heat and unfinished work on the TPPs at Maritsa Iztok, which lead to insufficiency of power. The drama began at noon. A record air pollution was registered at 12:13 in Galabovo – the sulfur dioxide containment was two times above the permitted levels. An environmental alert had to be announced and NEC had to reduce the operations of three units at the complex, which do not have sulfur-filtering installations. In order to compansate the insufficiency, some big WPP were turned on. The reason of the pollutionwas determined later. It was Hristo Kovachki - owned plant Brikel.
Source: Sega (22.06.2007)

Bulgarian state-owned mining company Maritsa Iztok is considering pulling out of an agreement signed a month ago with Germany utility RWE for the creation of a joint venture for the construction of a new 600-700MW power capacity in the Maritsa Iztok coal basin, Dnevnik was told by sources from the local company. The deal-breaker is the conflict of interests stemming from the fact that the Maritsa Iztok mines which will be in charge of the procedure to select an investor for the construction of the new power capacity while being affiliated with one of the possible candidates. Bulgarian electricity producer Brikel, AES of the U.S. and Germany's RWE and E.ON are also interested in the construction of a new power generation facility in the Maritsa Iztok area. Enel has one leg up on the competition. It has completed the feasibility study and is waiting on the environment impact assessment. A week ago, the government authorised the energy minister to organise a selection procedure for an investor that will build and operate the facility and sign a long-term contract for the purchase of coal from the Maritsa Iztok mines. 'The selection procedure will be implemented by mining company Maritsa Iztok and therefore I have proposed to the energy minister to recommend to the company to consider the opportunities for bowing out of any co-operation formats with the German outfit,' said deputy energy minister Galia Tosheva. Maritsa Iztok mines said it will announce the pullout officially next week.
Source: Dnevnik (02.07.2007)

Bulgaria deregulates energy market, set of new rules not full A day after Bulgaria's energy market was officially deregulated, several major industrial consumers called for a gradual transition due to the absence of trading rules. Steel mills Kremikovtzi and Stomana Industry, smelter Cumerio Med and non-ferrous metals company KCM will notify the request to the energy regulator, said Petar Denev, chief secretary of the Bulgarian Industrial Association. He underscored that the cited companies did not oppose the free market but said that the transition would take at least a month. The new market rules have not yet been approved by the State Energy and Water Regulatory Committee (SEWRC). The Electricity System Operator (ESO), a unit of national power utility NEK, has not yet adopted the necessary software that will track electricity supply and demand. The rules are in place and everyone is free to switch to a new supplier if he is unhappy with NEK, insisted SEWRC chief Konstantin Shushulov. ESO executive director Ivan Aiolov said the software delay was due to the unbundling of NEK's different types of operations in late 2006. Under a SEWRC decision adopted on Monday, NEK will be barred from selling to big and mid-size industrial consumers of mid-voltage electricity at prices lower than the tariffs of the regional power distribution companies. The new electricity tariffs that took effect at the beginning of July are creating inflationary pressure, said representatives of Stomana, Kremikovtzi, KCM and the local cement producers. They estimate the new prices will add 4.5-5 per cent to their production costs.
Source: Dnevnik (03.07.2007)

The Business: Electricity will increase output’s costs Metallurgical and machine processing companies, cement factories and even bread-making plants will bare huge losses as a result of the higher energy prices effective from the end of July on. This major issue was discussed between BIA’s chief executive secretary Petar Denev and representatives of some major producers like Stomana Industry, Kremikovtzi, Holcim, KCM etc. Those companies and many others will have addition costs of between BGN 200 – 500 thous. as none of them have planned higher electricity prices by 8-17%. The biggest effect will be felt at the big factories which are forced to buy electricity directly from NEK. The electricity price increase for those companies will be by 17.33%. DKEWR claims that nobody is forced to buy electricity from NEK but in most cases this is just the only option. According to Konstantin Stamenov – member of Stomana, some of the company’s facilities have electricity system only with NEK so it is actually impossible to find another supplier like the local electric power supplier for instance.
Source: Sega (03.07.2007)

Standard&Poor's affirmed the credit of Bulgarian state-owned power grid operator NEK at "BB", but revised its outlook to "developing" from "negative" on uncertainty generated by the future nuclear power plant at Belene. The rating could be lowered if debt related to the project is fully or partly consolidated in NEK's balance sheet, resulting in a significant weakening of the company's financial profile, the agency went on to say.
Source: Monitor (04.07.2007)

NEC cuts electricity supply to Kremikovtzi again NEC has once again cut the electricity supply to Kremikovtzi as the company continues to postpone payments for its old debts.Its total debt towards NEC is over BGN 80 mln. Over BGN 78 mln are on an installment plan. NEC’s Board of Directors has decided to stay firm on its demands and secure its future takings even if the only way to achieve its goals is to continue to cut the electric supply to Kremikovtzi. Recently Kremikovtzi’s executive director Aleksandar Tomov announced that the company has already provided all necessary funds for the proper carry out of the company’s new eco-programme until 2012. The required funds are over BGN 300 mln and Tomov assured that the company will be able to provide those money in a short call.
Source: Darik Radio (05.07.2007)

Kremikovtzi once again without electric supply NEC once again cut the electricity supply to Kremikovtzi as its debts continue to grow up. As of June 27th company’s debts are for BGN 4.034 mln, BGN 2.5 mln of which are already paid. The rest of the old debts total BGN 1.945 mln. The total indebtedness of Kremikovtzi is over BGN 80 mln now. BGN 78.1 mln are on the installment plan. That’s why on June 2nd, NEC decided to limit the electricity supply to Kremikovtzi once again. The electric company is quite determined to take further actions to secure its future takings if necessary. Kremikovtzi was already warned to take all required measures in order to prevent any possible equipment damages as a result of the electricity supply cut-back.
Source: Standart (05.07.2007)

Underspending on the maintenance of 440 and 220kV powerlines has created a clear risk for outages, an official from the Bulgarian national energy utility warned on Wednesday. The repairs of the substations that connect the power grid of national utility operator NEK with the networks of the regional electricity distribution companies are behind schedule, said Ivan Aiolov from the Electricity System Operator (ESO), a NEK subsidiary. ESO has budgeted BGN 80 mln for investment in 2007. NEK chief executive director Lyubomir Velkov Wednesday told the parliamentary energy policy committee that the company will invest BGN 164 mln in the expansion and modernisation of the power grid in 2007. The repair works completed by the ESO in 2007 ran up to just BGN 30 mln although it had a budget of BGN 60 mln at its disposal, said Velkov. That's why the budget was trimmed down. In related news, it was announced the ESO will start organising electricity export tenders from September regardless of the fact that the power regulator has not yet adopted the tendering rules.
Source: Dnevnik (05.07.2007)

Only BGN 20 million has been appropriated for repairs of the power grid of Bulgaria's National Electric Company (NEK) in 2007. That is just a third of the amount provided in 2006, the executive director of Electricity System Operator (ESO), Ivan Ayolov, said. The insufficient funding is a precondition for an increase in power failures, he added. In his words, the repair programme for 2007 amounted to BGN 80 million. But due to the reduced power exports after the shutting down of units 3 and 4 of the Kozloduy nuclear power plant NEK cannot provide the necessary amount. NEK's revenue in 2007 is expected to drop seven-fold, compared with EUR 300-350 million in previous years. Exports will fall by 10 to 20%.
Source: Pari (05.07.2007)

The implementation of the EUR 220 mln Tsankov Kamak hydro project will fall 18 months behind schedule due to discrepancies between the project designs and the geological surveys of site, Lyubomir Velkov, chief executive director of national power grid operator NEK, told the parliamentary energy policy committee on Thursday. An Austrian consortium led by Alpine Mayreder Bau GmbH is building a 11 mln cu m dam lake and a hydro power plant with an 85MW capacity. Velkov did not say what, if any, measures have been taken to overcome the delay. The contractors could be penalised for their failure to hit the project deadlines only after it is completed which was originally due to happen in 2008. The Tsankov Kamak project is implemented under Austrian-Bulgarian memorandum for understanding and bilateral co-operation to conduct mutual actions on the Kyoto Protocol. Velkov also told the MPs that the rehabilitation and modernisation of the Dolna Arda hydro complex is proceeding on schedule. The Kyoto Protocol project, commissioned to Austrian company VA TECH Hydro, costs EUR 65 mln. It will increase the capacity of the complex to 331MW. In related news, it was announced that NEK's investment program for 2007 is worth BGN 141.1 mln, including BGN 64.7 mln for the construction and rehabilitation of hydro power stations.
Source: Dnevnik (06.07.2007)

The power regulator should revisit its decision for a 45 per cent hike in transmission tariffs charged from electricity consumers, the Bulgarian Federation of Industrial Energy Consumers urged on Thu. The tariff was reset from 5.03 to 8.20 levs/MWh without taxes. The industrial manufacturers will take the brunt of the Jul 2 tariff adjustment, noted the federation. The federation also called for greater transparency on pricing mechanisms and more fair tariffs for the industrial enterprises. Earlier this week, the Bulgarian Industrial Association advocated a more gradual liberalisation of the energy market.
Source: Dnevnik (06.07.2007)

NEK briefs Brussels on Belene power plant Representatives of Bulgarian national power grid operator NEK, the Bulgarian energy ministry and France's Areva, tapped to build a nuclear power plant (NPP) at the town of Belene in consortium with Russia's AtomStroyExport, will hold meetings with officials from various European Commission directorates and Euratom to answer questions regarding the environmental impact of the project and the technology it will employ and regarding the safe storage of the radwaste produced by the Kozloduy NPP. NEK has already responded to an 90-item EC/Euratom questionnaire and is now expected to elaborate on some of the replies. The shortlist for the Belene investors is expected to be announced by NEK next week.
Source: Dnevnik (06.07.2007)

Bulgaria power consumers get option to return to regulated market Electricity consumers that have opted for a new carrier will have the option of reverting to the regulated segment of the market where the State Energy and Water Regulatory Commission fixes transmission, distribution and access tariffs as well as the prices at which the regional electricity distribution utilities sell to their customers. This option will provided under changes to the guidelines for the liberalisation of the local energy market approved last week by the power regulator. EU consumer protection commissioner Meglena Kuneva called attention to the absence of the option, saying the restriction was to the consumers' detriment. Even in the aftermath of the July 1 market deregulation, the local electricity traders have been unable to offer competitive prices and lure clients from their rivals. Officials from the SEWRC will meet this week with representatives of the Federation of Major Energy Consumers and the Bulgarian Industrial Association to discuss a more gradual market liberalisation model after the business community complained it was taking the brunt of the recent electricity tariff hike. Source from the SEWRC said it was unlikely that the new prices will be revised.
Source: Dnevnik (09.07.2007)

3 banks in contention for EUR 120 mln BDZ bond loan Three unnamed banks have filed offers to provide EUR 120 mln in bond financing to Bulgarian state-owned railway carrier BDZ, said transport minister Petar Mutafchiev. The provider of the 10-year facility will be selected by the end of July. The debt will finance the payment of BGN 50 mln in overdue electricity bills and the repair of 1,200 cargo cars at a cost of EUR 40 mln. The carrier is facing a shortage of 2,800 cargo cars by the end of 2007 on the backdrop of forecasts that rail cargo shipments will rise by 3 per cent annually through 2017. BDZ said H1 cargo shipments totalled 5.1 mln tons with the average shipping distance falling from 231.4 to 176.4 km. A portion of the bond proceeds will be used to restructure old debts, refinance the loan for the purchase of Siemens trains and repay outstanding infrastructure charges. The carrier owed the National Railway Infrastructure Company BGN 90 mln at the beginning of 2007 and recently made a BGN 17 mln payment. Mutafchiev said the government should increase the subsidies for passenger traffic from BGN 88.2 mln to BGN 122.6 mln by 2017. The BDZ management admitted the cross-subsidising of passenger and cargo haulage.
Source: Dnevnik (10.07.2007)

Bulgaria's state-run National Railway Infrastructure Company (NRIC) has applied to be issued an electricity trader licence in a bid to cut the cost of the electricity it currently buys from national power grid operator NEK, said the company's executive director Anton Ginev. NRIC has already registered Tren, a wholly-owned subsidiary that will be active in electricity trading and transmission. The infrastructure operator plans to sell electricity to household consumers and to consumers based in proximity to any of its train stations. The Bulgarian power regulator has so far licensed 24 companies to operate as electricity traders. Experts from the State Energy and Water Regulatory Commission said NRIC is fully eligible under the local energy legislation but noted that if it wishes to sell to end-consumers, the company will have to unbundle its trading and transmission operations and register a subsidiary that will deal solely with electricity transmission.
Source: Dnevnik (11.07.2007)

The Italian division of France's Alstom Power, Austria's Energy and Environment and Poland's Rafaco have purchased the tender papers for the procurement of sulphur dioxide removal equipment to Bulgaria's Maritsa Iztok 2 thermal power plant (TPP). The power station said that the Hitachi&Hitachi Power Europe consortium will also partake in the procurement procedure. The candidates will visit Wednesday the site where the equipment will be assembled. The power station expects to pick a vendor by the end of 2007. The equipment should be brought on stream by July 2010. The tendering of the sulphur dioxide removal equipment contract was delayed by a year after the European Commission was not consulted on time on the terms for the selection of an advisor to prepare the documents for the procurement procedure. The rehabilitation of unit 5 of the TPP is scheduled to get underway in June 2008 and that of unit 6 should kick off in August the same year. The Bulgarian energy ministry is constantly pressuring the rehabilitation contractor - Japan's Mitsui, to get its act together and speed up the project. Unless Mitsui manages the retrofit units 1 and 2 with sulphur dioxide removal equipment before December 2007, it will face pecuniary penalties, said deputy energy minister Yordan Dimov. As a result of the constant delays, the unupgraded units may have to be switched off from 2008.
Source: Dnevnik (11.07.2007)

The consumers of about 10% of the total electric consumption in Bulgaria will appeal at the Supreme Administrative Court, against DKEVR’s decision to increase the electricity transmission tax by 45% The consumers of about 10% of the total electric consumption in Bulgaria will appeal at the Supreme Administrative Court, against DKEVR’s decision to increase the electricity transmission tax by 45%, effective July 1st. This was announced yesterday by the Bulgarian federation of industrial consumers, which unites 14 of the biggest industrial producers in Bulgaria like: Stomana Industry, LZC – Plovdiv, Solvey Sodi, Cumerio Med, Elatzite Med, Kaolin, Druzhba etc. With the market liberalization, starting July 1st , DKEVR is actually giving NEC a green light to the whatever changes of the electricity price for the final consumers, that it decides. The only regulated price is the electricity transmission price. It was not sooner than July 7th when NEC informed all these major producers about the new prices. The average increase is by 17.3%, while some prices are higher by even 40 – 50%.
Source: Sega (11.07.2007)

BDZ to buy electricity on deregulated market National railway carrier BDZ is in talks to buy electricity from the Kozloduy nuclear power plant, said the power station's executive director Ivan Genov. The peak tariff for NEK clients buying high-voltage electricity rose 30 per cent earlier this month while the off-peak tariff jumped 41 per cent. The hike will add roughly BGN 12 mln to BDZ's monthly electricity bill. At the moment, Kozloduy NPP sells directly to 7 power traders and 13 industrial enterprises.
Source: Dnevnik (13.07.2007)

The state companies such as Bulgargaz, NEC, BDZ and other monopolists to be privatized only if they have real competitors, otherwise to stay state-owned. This said in interview the new Minister of Economy and Energy Mr. Petar Dimitorv, who also is in charge for the Privatization Agency. Over the last few month high officials from the Cabinet insist on putting out some of the state “mastodonts” of the forbidden for privatization list.
Source: Novinar (16.07.2007)

Bulgarian engineering company Risk Engineering said it will invest in a large-scale EUR 500 mln project for the construction of hothouses and co-generation facilities that will provide the necessary heating energy. The seven-year project will be deployed on 56 ha of land in Parvomai, Rakovski, Krumovo, Mezdra and other cities. DG Parvomai, 51 per cent-owned by Risk Engineering with Dutch Green House holding a 35 per cent stake, has already made some land purchases for the purposes of the project. The hothouse output will be marketed abroad after it is certified by the agrarian institute in Amsterdam, said Risk Engineering manager and owner Bogomil Manchev. The company executive said the project will apply for a First Class Investor certificate from InvestBulgaria Agency, the local investment promotion authority. Longer-term plans include the construction or acquisition of a cannery, said Manchev. The project financing will be provided by Corporate Bank and ING Bank. During the initial stage of the project, EUR 42 mln will be invested in a co-generation module with a 15-20MWh capacity in Parvomai where the area of the planned hothouses is 12 ha. Work on the Parvomai power facility should get underway this fall.
Source: Dnevnik (17.07.2007)

ELG Bulgaria, the local unit of Switzerland's Elektrizitats-Gesellschaft Laufenburg AG (ELG), has applied before the Bulgarian power regulator for a 15-year permit to operate as an electricity trader. ELG Bulgaria is wholly-owned by ELG's Luxembourg-registered subsidiary. The Swiss company previously bought electricity from Bulgaria's national power grid operator NEK. According to data of the State Energy and Water Regulatory Commission, ELG bought 580 mln kWh of electricity from NEK. ELG Bulgaria is in talks to supply electricity to mid-voltage users, said the company's executive director Miroslav Damianov. He named bathroom fixtures company Vidima Ideal as one of the potential clients. ELG, which plans to build here a 75MWh wind farm, has signed an agreement with one independent power producer and is about to clinch a second deal. It has also established contacts with the operators of small hydro power stations. The SEWRC has so far licensed more than 24 power traders.
Source: Dnevnik (18.07.2007)

Companies complain of power price hike Five large companies have submitted complaints to the State Energy and Water Regulation Commission (SEWRC) against the 45-percent increase in the electricity transmission price. The enterprises are consumers of high-voltage electricity and are directly connected to the National Electric Company's network. All companies are members of the Bulgarian Industrial Association but some of them declined to be named. The complaints are being considered by SEWRC's legal department and will be submitted to the Supreme Administrative Court. Meanwhile it emerged that the owners of the electricity distribution utilities - CEZ, EVN and E.ON - have filed complaints against SEWRC's July 1 decision to approve the new power prices. The pricing procedure does not comply with the Energy Act and the principle that the utilities shall recover their costs, CEZ and EVN said.
Source: Pari (18.07.2007)

EVN Bulgaria, owner of the Plovdiv and Stara Zagora regional power distribution companies, has proposed to the local regulator to establish from October 2007 parity between the supply tariffs for low- and mid-voltage electricity users plugged directly into a substation regardless of whether or not it is owned by national power grid operator NEK. At the moment, the electricity tariff for mid-voltage users is 16 per cent higher than that for low-voltage users. The Austrian company will also request from October a 6-7 per cent reduction in mid-voltage tariffs and a 1.5 per cent increase in the tariffs for business customers using low-voltage. If the regulator accepts the EVN proposal, the tariff revision will affect 120 major industrial power consumers and over 80,000 low-voltage users. EVN said it has lost several major clients after the local power market was opened for competition in early July and is involved in a legal battle with NEK over four of them.
Source: Dnevnik (20.07.2007)

E ectricity distribution utilities in Bulgaria will register losses as a result of the new power prices effective from July 1, 2007, the owner of the utilities in Plovdiv and Stara Zagora, EVN, said. The encouraging of renewable energy sources will also have a negative effect on the distribution companies. Their prices are three times higher, which will affect the end consumer, the company said. EVN also criticised the tariff system, saying it is not enough transparent. The company will ask the regulator for changes concerning the rates for consumers directly connected to the National Electric Company's network. EVN will also insist on cutting the prices for mid-voltage consumers by 6 or 7% and raising the prices for the industry by 1.5%.
Source: Pari (20.07.2007)

10 banks to syndicate EUR 250 mln loan for Bulgarian nuke plant Ten banks, including two already operating on the Bulgarian market, will syndicate a EUR 250 mln loan for the construction of a new 2,000MW nuclear power plant (NPP) at Bulgarian Danube town of Belene, Dnevnik learned from an energy ministry source who asked not to be named. Two months ago, France's BNP Paribas was picked as the winner of the competition to provide loan-financing for the project The competition was invited by Bulgarian national power grid operator NEK. BNP Paribas is expected to name its syndicate partners this week and give details on the terms of the loan, said NEK. The BNP Paribas loan will finance the design, equipment delivery, construction and assembly costs for the first year of the Belene project. NEK has also announced the launch of a negotiated procedure to award a public procurement contract for a lead structuring and arranging bank for the project. The time limit for submission of requests to participate is September 24, 2007. In related news, it was reported that the NEK board has shortlisted six companies in the procedure to select an investor for an up to 49 per cent stake in the Belene project. Italy's Enel, CEZ of the Czech Republic, Germany's RWE and E.ON, France's EDF and Belgium's Electrabel will each receive a copy of the information memorandum, spelling out the rights that will be enjoyed by the private investor in the power station and the rules for its management. The shortlisted candidates will be able to draft a legal analysis of the project by October 1 and submit offers containing share price estimates. They will also be allowed to form alliances with other shortlisted candidates. NEK has also drafted a second list of candidate investors eyeing a stake of no more than 25 per cent in the power station operator. The list comprises mainly power traders or major industrial electricity consumers. Second group of candidate investors is made of Switzerland's Aare-Tessin AG fuer Elektrizitaet and Elektrizitaets-Gesellschaft Laufenburg AG, Spain's Endesa and local company Cumerio Med. NEK said that the second group of candidates will be invited to file their bids after the negotiations with the shortlisted companies have concluded. The construction of the Belene NPP, estimated at around 4 bln euro, has been commissioned to Russia's AtomStroyExport. The final agreement for implementation of the project is expected to be signed before the end of 2007.
Source: Dnevnik (23.07.2007)

6 Companies on Shortlist for 49% in Second Bulgarian Nuke Bulgaria's power grid operator NEK said on Friday it shortlisted six companies in the tender to pick a strategic investor for 49% in the nuclear power plant that it will build at Belene on the Danube. The six companies are Czech CEZ, German E.ON and RWE, Belgian Electrabel, Electricite de France and Italy's Enel. NEK will allow each company to see the blueprints for the power plant, conditional to them signing a memorandum of confidentiality, and expects first bids from the interested parties by October 1. The other four companies to have submitted letters of interest - Swiss ATEL and EGL, Spain's Endesa and Bulgarian Kumerio Med - are only interested in stakes of up to 25%.
Source: mediapool.bg (23.07.2007)

Two mobile substations will be installed on the southern coast by 2008 to improve electricity supply there, the local power distribution utility, EVN, said. The installation is necessitated by the overbuilding of the resorts. The electricity distributor will invest a total of BGN 8.9 million in the region of Bourgas. In the first half of 2007 EVN invested BGN 56 million in the construction and renovation of 72 km of mid-voltage network and 960 km of low-voltage network. The company has improved debt collection to more than 90%, losses have dropped to below 15%, EVN said.
Source: Pari (23.07.2007)

Kremikovtzi is once again on target Every now and then there is somebody who points a finger at Kremikovtzi JSC. The company, managed by Alexander Tomov was first on the spotlight of NEC for unpaid electricity bills, then it’s shares were banned on the Stock Exchange for unpublished financial report, then it was the Minister of Environment and Waters who denied to issue a complex permit to the plant as the metallurgical giant is not following its environmental programme. At the end Kremikovtzi’s own workers raised voices for unpaid salaries. The only common thing between all these cases is the presence of the word “not” /as something is not done/. There is always something wrong at the companies management. This time it’s a brand new case – the politics are those who want to shut down the plant. Firstly, Sofia city mayor Boyko Borisov announced that he is going to appeal against the plant from the position of an unhappy citizen of Sofia. He said – help me to shut down Kremikovtzi and protect my city. His main claim was that the company is seriously polluting the Sofia vicinities, while the soil around the factory is already is steeped in metal components. Yesterday a group of deputies led by Yane Yanev directly asked for a shutdown of the plant. Yanev told reporters that he submitted the motion in Parliament's chancery 4 days ago. The moratorium is also proposed for the steel works' default on payments due to the State and state-owned companies.
Source: Pari (26.07.2007)

The Varna thermal power plant has slumped to a loss of BGN 4 mln for the first half of 2007, said plant owner CEZ Bulgaria, blaming the downturn to the refusal of the local power regulator to approve a requested price hike for the electricity output. The management has forecast the loss will further widen to BGN 12 mln towards the back end of the year. A year ago, the power station reported a profit of BGN 519,000. In early July, the power station asked the tariff at which it sells electricity to national power grid operator NEK to be increased to 56.70 levs/MWh but the State Energy and Water Regulatory Commission set a price of only 54.43 levs/MWh. The regulator also refused to increase from 7.94 to 8.48 levs/MWh the tariff that the power station charges from NEK to maintain a certain reserve capacity. H1 electricity production fell 27.8 per cent year-on-year. The power station had forecast a full-year output of 4 mln MWh which would have set a 16-year record. The tariff for the power sales to NEK have promoted the company to ratchet down production targets by 12-20 per cent because the sale proceeds are failing to deflect the cost of rising coal prices. CEZ Bulgaria, a unit of Czech utility company CEZ, was planning to offset the losses with power exports but was foiled by NEK which said that ensuring domestic consumption was a higher priority.
Source: Dnevnik (07.08.2007)

The local Energoremont Holding said it will seek shareholder approval to issue debt of up to BGN 50 mln or the equivalent in another currency. The general meeting will vote on the proposal on Sept 17. The holding company did not respond what projects that will be financed with the debt issuance before Dnevnik went to print on Monday. Energoremont Holding posted a profit of BGN 571,000 in the first half of '07, up 33 per cent over the year-ago period. Expenses rose 98 per cent to BGN 12.118 mln while revenues added 82 per cent to BGN 12.689 mln in H1.
Source: Dnevnik (07.08.2007)

France's BNP Paribas, tapped by Bulgarian national power grid operator NEK to provide financing for the construction of a new 2,000MW nuclear power plant (NPP) at Danube town of Belene, is in talks with candidates for the position of Belene strategic investors to advise their likely participation in the procedure, said sources close to the project. The BNP Paribas office in Sofia neither confirmed nor denied the information. NEK has shortlisted six companies in the procedure to select an investor for an up to 49 per cent stake in the Belene project. Italy's Enel, CEZ of the Czech Republic, Germany's RWE and E.ON, France's EDF and Belgium's Electrabel will each receive a copy of the information memorandum, spelling out the rights that will be enjoyed by the private investor in the power station and the rules for its management. The shortlisted candidates will be able to draft a legal analysis of the project by October 1. According to unofficial sources, the advisory talks are at a most advanced stage between BNP Paribas and Enel. The French bank has asked NEK if providing advisory services to some of the candidate investors could be perceived as a conflict of interests. NEK reported replied that there would be no conflict of interests if the advisory and loan syndication services are provided by two different BNP Paribas teams. Enel declined to comment on whether or not it is engaged in talks with BNP Paribas. The BNP Paribas loan will finance the design, equipment delivery, construction and assembly costs for the first year of the Belene project. The construction of the Belene NPP, estimated at around EUR 4 bln, has been commissioned to Russia's AtomStroyExport. The final agreement for implementation of the project is expected to be signed before the end of 2007.
Source: Dnevnik (10.08.2007)

Fuel retailer Eko Elda Bulgaria, part of the Greek petrochemicals company Hellenic Petroleum Group, has applied to be issued a 10-year licence to operate as a power trader. The State Energy and Water Regulatory Commission reviewed the licence application last week and is due to respond promptly. Eko Elda Bulgaria said the move is part of its long-term strategy to snag a steady share of the regional power market. The company will draw on the experience of its parent company which is a power producer and distributor in its home market. The fuel retailer plans to finance its power trading business with debt and securities. At the moment, the company operates a network of 42 gasoline stations in Bulgaria and will add a further eight outlets by the end of 2007. Over the near-term, the nationwide network is seen expanding to 100 filling stations.
Source: Dnevnik (14.08.2007)

The Electricity System Operator (ESO), a subsidiary of national power grid operator NEK, has announced it will organise electricity export auctions under guidelines provided by the State Energy and Water Regulatory Commission. The news should delight the 24 or so local companies licensed to operate as power traders as they have been claiming that the absence of interconnection capacity access rules is hindering the deregulation of the sector. ESO will be responsible for conducting the yearly, monthly, weekly and daily auctions for the allocation and assignment of 50 per cent of the Commercial Transmission Rights (CTRs) for electricity transfers from Bulgaria to a neighboring country and from a neighboring country to Bulgaria. All relevant information is made available on the ESO auction website. For the yearly, monthly and weekly auctions, CTRs are offered on a firm basis, except for the cases where curtailments are necessary due to circumstances that constitute force majeure, scheduled maintenance of the interconnection or for securing the safety of the network operation. In order to participate in the auctions, the user has to be a holder of a license for generation, and/or trade, and/or public supply in the Bulgarian power market and must have a registered EIC code (an alpha-numerical code issued by an ESO to a power market user, according to the ETSO standard) with ESO. In case of participation in an auction for allocation of capacities from Bulgaria to a neighboring country and intending to use these capacities for export of electricity generated in the Bulgarian power system, the user has the right to submit a bid at a maximum capacity that does not exceed 25 per cent of the base load capacity. The average monthly quantities sold by the user to end customers on the territory of Bulgaria shall be calculated on the basis of the registered schedules of those customers for the last three months, preceding the month of participation in the auction. Users have to submit to ESO a participation guarantee for yearly auction covering at least 10 per cent of the total amount of their bid. Prior to, during and after an auction, users must refrain from behavior which affects adversely competition or threatens to disrupt the transparency of the proceedings.
Source: Dnevnik (15.08.2007)

The state Commission for Energy and Water Regulation (SCEWR) has taken a decision for the issuing of a license for trade in electrical power to the National Railway Infrastructure Company (NRIC). There are no legal obstacles for the license to be issued, the SCEWR said. The licence will allow the company to sell electricity to households and establishments near railway stations.
Source: Pari (15.08.2007)

Bulgarian steel wire and rope manufacturer Metizi netted a BGN 333,000 profit for the first half of 2007, the company's consolidated report shows. The profit jumped nearly 3.5-fold from BGN 94,000 for the year-ago period. The company's revenue from core activities also increased substantially. Metizi's net sales went up to BGN 6.855 million, compared with BGN 3.980 million for the first half in 2006. The company's good performance is due to a BGN 5 million contract signed last year, which is already yielding results, the board of directors' chairman, Svilen Krastanov, told the Pari daily. In addition, Bulgaria's EU entry has encouraged some large European distributors to try our products and we already have a contract for delivery of ropes to Spain, he added.
Source: Pari (22.08.2007)

The stalemate in the Bulgarian-Turkish Gorna Arda hydro project is set to play out in court after the undertaking had been left stranded for years by the demise of Turkey's Ceylan Holding. Bulgarian national power grid operator confirmed that Celyan's legal successor CCG Insaat Sanayi Yatirim Ve Turizm has filed an arbitration case with the International Chamber of Commerce, seeking 75 mln euro in damages. The Bulgarian company described the move by its former Turkish partner as surprising. The arbitration procedure will take at least a year to unfold and the outcome is uncertain. NEK and Ceylan co-created Hydro Energy Company Gorna Arda (HEK Gorna Arda) in 1999 within the framework of the so called power-for-infrastructure intergovernmental agreement. HEK Gorna Arda, 69.9%-owned by NEK, was supposed to build a chain of hydro power plants and interconnected dam lakes with a combined power production capacity of 170MWh. Construction never got underway as Ceylan was adjudicated bankrupt shortly after the registration of the joint venture. Sofia's subsequent attempts to negotiate a replacement for Ceylan were unsuccessful leading up to 2003 when Ankara turned the tap on Bulgarian power imports, citing the failure of its partner to honor the bilateral agreement. The Bulgarian side tried to bring in a new investor into the project and selected on a competitive basis Italy's Enel Power. A 35% stake in HEK Gorna Arda was earmarked for the new shareholder but it was never transferred as the Italian company refused to work with Ceylan as a building contractor. To the assertions that Ceylan's failure to raise the necessary financing was stalling the project the Turkish company responded that NEK was not honoring its obligation to fund Gorna Arda with the proceeds from the power sales to Ankara. The Turkish company also kicked back the offer of the Bulgarian side to either buy out its stake in the project or wind up the joint venture.
Source: Dnevnik (23.08.2007)

Bulgarian tycoon to invest 98 mln euro in new cold rolling mill Bulgarian businessman Valentin Zahariev has announced plans for a large-scale investment in a new cold rolling mill on the outskirts of capital city Sofia. A complex comprising two units for cold-rolled steel coils and one for zinc-plated steel sheets will be constructed over the next three years on the site of the Zahariev-owned Inter Pipe steel pipes factory. The size of the investment in the new Inter Pipe mill, to be located in the vicinity of Kremikovtzi, Bulgaria's biggest steel maker, is seen at 93.8 mln euro, including 25 mln euro that will be provided by Zahariev's Intertrust Holding BG. Bulgarian and international lenders will also be involved in the financial packaging of the project. Inter Pipe, which is implementing the project, has won a First Class Investor certificate from the InvestBulgaria Agency, the local investment promotion authority. The government thus undertakes to facilitate the project not only in terms of the permits that will have to be obtained but also in the interaction with state-owned utilities for the purposes of the new substation, gas main and related infrastructure that will have to be put in place. The first two cold-rolled production units will be operational by the end of 2008. They will have an annual production capacity of 0.4 and 0.3 mln tons. The output will be marketed locally as well as in the rest of the EU and Turkey. The third Inter Pipe factory will produce 0.25 mln tons of zinc-plated steel sheets annually.
Source: Dnevnik (05.09.2007)

Poland-based top-refiner PKN Orlen is the CEE’s biggest company and Lukoil Neftocchim is ranked on the highest position among the Bulgarian companies in top 500 for the past year. A total of 9 local enterprises are ranked among the top 500 CEE’s companies with the highest income, set by Rzeczpospolita - the Polish business daily, assisted by Deloitte auditors company. It shall be noted that about one third of the companies ranked in top 100 are operating in the Energy sector. The leader reported income for 2006 of EUR 13.57 bln, followed by MOL – Hungary with EUR 11.39 bln, and the Czech Skoda with EUR 7.37 bln. The local Neftocchim is ranked 65th with the revenues of EUR 1.632 bln.
Source: Sega (10.09.2007)

Unit 5 of Bulgaria's sole nuclear power plant at Kozloduy on the Danube River was reconnected to the power grid on Sunday, after undergoing emergency shutdown earlier this month. On September 1, the unit was taken offline for repairs after a short circuit in the power generator triggered the automated safety system shutdown in the 1000-megawatt VVER type unit. The incident did not cause any radioactive leaks, power plant officials said then.
Source: Darik Radio (10.09.2007)

A Bulgarian-Greek joint venture has announced plans for the construction of a 500MW wind park in Bulgaria's Gulyantsi municipality, on the Danube. The investment project was submitted by the GP Energy company for approval to the local authorities last week. The project will also have to be reviewed by the regional environment and waters directorate based in Pleven. The 2.0 ha park will consist of 25 wind-powered generators deployed in the area of the Somovit and Dolni Vit villages and a further 35 generators installed near the villages of Gigen and Iskar, all in the Pleven region. The electricity output will be sold to national power grid operator NEK at 9 euro cents/kWh without taxes. Gulyantsi mayor Violin Ivanov said several companies have indicated their interest in harnessing the power of the wind in the area.
Source: Dnevnik (13.09.2007)

Oranovo, the company operating the Bobov Dol mines under a concession arrangement, has asked the Bulgarian power regulator to intervene in its dispute with electricity distributor CEZ Bulgaria over some 6 mln levs in unpaid bills. CEZ Bulgaria has warned it will restrict power supplies to the mines if no payment is made on the debt by September 24. In August alone, the Bobov Dol failed to pay for 400,000 levs in electricity consumption. The mining company is seeking a determination from the regulator on charges it may be entitled from CEZ Bulgaria for the use by the power distributor of its propitiatory power grid. According to the statement from the mines, the possible power grid charge arrears could be deducted from the unpaid electricity bills.
Source: Dnevnik (17.09.2007)

Bulgaria's national power grid operator NEK, whose electricity export monopoly expired at the beginning of 2007, won the bulk of the export volumes tendered by its subsidiary company Electricity System Operator (ESO). According to information released by ESO, NEK won 60 of the 100MW on offer for export next month to Romania. The remainder was allocated to CEZ Trade. NEK will also export 180 of the 200MW that were on offer for Serbia and 85 of the 100MW on offer for Greece. Vivid Power, Arcadia Service and Enemona Utilities were also allocated token volumes for export to Greece. EFT Bulgaria and CEZ Trade will import electricity from Romania. The system operator was to make 200MW in export allocations for Serbia and Greece each and 100MW allocations for Romania. The priced reached during the procedure was 5 euro/MW which some participants said was too high given the fact that it will be charged a 7 euro grid access fee on top.
Source: Dnevnik (21.09.2007)

A 60MW wind farm to be constructed in Suvorovo district, Varna region. The project is developed by the Bulgarian-Spanish company Eolica Bulgaria. The Minister of economy and energy granted to the company a first class investment certificate. The construction of the wind-power plant will begin 2009 and should be completed by early 2010, when it is expected to start producing electricity. The investments will total BGN 80 mln, as initially the company will install 30 wind turbine towers with the capacity of 60MW. Eolica Bulgaria has signed a preliminary agreement to sell the electricity output to Bulgaria's national power grid operator NEK.
Source: Darik Radio (26.09.2007)

Protests against Kremikovtzi a month before the verdict Pressure over Kremikovtzi is brought a month before the final date of Ministry of environment and waters decision to whether permit Kremikovtzi to operate or close it. Civil organizations protested against the polluting production and the government’s protection. The ecology minister refused to meet the remonstrants. The final date for the department of Jevjet Chakarov to grant or refuse an integrated permit to the plant is 31 October 2007. Ecological organizations, fighting against the government decision to prolong the operations in Kremikovzi from last year, swore they would bring the case to the court in Strasbourg if the Supreme Administrative Court does not take into consideration their appeal. In their opinion the government interference was illegal and only the Ministry of environment and waters can decide whether the plant to function or not.
Source: Sega (26.09.2007)

If the ruling coalition approves a long-time discussed plan, Bulgaria might offer minority interests in its government gas and energetic monopolies on the stock exchange in the beginning of 2008, the Minister of Economics and Energetics Petar Dimitrov announced in an interview for Reuters. The government will not consider a complete privatization of Bulgargaz and The National Electricity Company as long as they insist on defending the users and keeping the energy prices low, he said.
Source: Darik Radio (27.09.2007)

Bulgarian national power grid operator NEK said it has extended by two weeks to October 15 the deadline for the hand-over of indicative offers from strategic investors interested in the stake in the company that will operate the future 2,000MW nuclear power plant (NPP) at the local Danube town of Belene. The request for the deadline extension was made by some of the candidates on account of the substantial volume of information they are required to submit. In July this year, the NEK board shortlisted Italy's Enel, CEZ of the Czech Republic, Germany's RWE and E.ON, France's EDF and Belgium's Electrabel to advance to the next stage in the procedure to select an investor for an up to 49% stake in the Belene project. The six companies have completed their financial and business analysis of the project. NEK has also drafted a second list of candidate investors eyeing a stake of no more than 25% in the power station operator. The second group of candidate investors is made of Switzerland's Aare-Tessin AG fuer Elektrizitaet and Elektrizitaets-Gesellschaft Laufenburg AG, Spain's Endesa and local company Cumerio Med. The construction of the Belene NPP, estimated at around 4 bln euro, has been commissioned to Russia's AtomStroyExport. The final agreement for implementation of the project is expected to be signed before the end of 2007.
Source: Dnevnik (02.10.2007)

Germany's E.ON eyes 49% in Belene nuke plant co German utility E.ON is interested in the full 49% stake in the outfit that will operate the future 2,000MW nuclear power plant (NPP) at the Bulgarian Danube town of Belene, the company told Dnevnik. The company is on the shortlist of strategic investors that will advance to the next stage of the procedure to select an investor for an up to 49% stake in the Belene project. Bulgarian national power grid operator NEK Monday said it has extended by two weeks to October 15 the deadline for the hand-over of indicative offers from strategic investors interested in the stake. NEK will retain a 51% in the company and will contribute to its assets the power plant site. E.ON said there are different options for their participation in the project and stressed their excellent track record in operating safe nuclear power facilities. The German company said the safety of the future Belene plant will be of crucial importance. It said it will demand to have the final say on all operational safety-related issues. The statement from E.ON followed news that the European Commission will take its time delivering a verdict on the Belene project. The commission has sent NEK a list of queries concerning the safety of the Belene power station and the project's spent fuel storage, waste management and environmental protection aspects. In July this year, the NEK board shortlisted Italy's Enel, CEZ of the Czech Republic, Germany's RWE and E.ON, France's EDF and Belgium's Electrabel to advance to the next stage in the procedure. They will also be allowed to form alliances with other shortlisted candidates. NEK has also drafted a second list of candidate investors eyeing a stake of no more than 25% in the power station operator. The second group of candidate investors is made of Switzerland's Aare-Tessin AG fuer Elektrizitaet and Elektrizitaets-Gesellschaft Laufenburg AG, Spain's Endesa and local company Cumerio Med. The construction of the Belene NPP, estimated at around 4 bln euro, has been commissioned to Russia's AtomStroyExport. The final agreement for implementation of the project is expected to be signed before the end of 2007.
Source: Dnevnik (03.10.2007)

Bulgaria's national power grid operator NEK is in talks with an Austrian consortium led by Alpine Mayreder Bau GmbH to add two years to the hand-over deadline for the 220 mln euro Tsankov Kamak hydro project. The negotiations were revealed in a proposal of the economy ministry for an update of the cabinet's tenure program through 2009. The project will fall 18 months behind schedule due to discrepancies between the project designs and the geological surveys of site, Lyubomir Velkov, chief executive director of national power grid operator NEK, recently told the parliamentary energy policy committee. The status of the project was further compounded by the summer floods. The Tsankov Kamak project agreement provides for deadline extensions under certain inclement circumstances, said NEK. The Austrian consortium is building a 11 mln cu m dam lake and a hydro power plant with an 85MW capacity. According to data of the economy ministry, the project, implemented under Austrian-Bulgarian memorandum for understanding and bilateral co-operation to conduct mutual actions on the Kyoto Protocol, had absorbed 100 mln euro by June 2007.
Source: Dnevnik (03.10.2007)

Chez trade Bulgaria SPJSC announced an auction for electricity from the free quota of Thermal Power Plant Varna SPJSC for next year on Wednesday, informed Michal Scalka,Trade unit manager of CEZ AS, owner of the two Bulgarian companies and six more companies in Bulgaria. The amount announced is 1,756,800 MWh and in order to ensure them, the plant will use 200 MW of its installations. The electricity sold to National Electricity Company (NEK) SPJSC this year, about 300MW, was taken into consideration.
Source: mediapool.bg (04.10.2007)

Nat'l utility may cut power to steel maker Stomana Industry NEK, Bulgaria's national power grid operator, said it will start to gradually power down electricity supplies to Pernik-based steel maker Stomana Industry and Radomir Metals unless the two companies pay for their consumption according to the new tariffs that took effect on July 1. The two companies continue to pay for their electricity consumption under the old tariff and have run up a debt of over 2 mln levs towards NEK. NEK executive director Mardik Papazyan said that if the power tariff is unacceptable for the consumers they can take their business to the deregulated segment of the local power market. Stomana Industry was one of the first local enterprises to start buying electricity on the deregulated market in 2006 but due to operational peculiarities continues to buy from NEK as well. NEK is twisting our arms and this is far from the norm for business relations, said Stomana Industry on Thursday. Stomana Industry claims that NEK is selling electricity at tariffs exceeding the price cap set by the local power regulator and recommends that NEK introduce discounts for its major industrial customers. The steel maker said it will file a complaint with the domestic anti-trust authority and with the European Commission regarding a breach of European Community Directive 2003/54/EC concerning common rules for the internal market in electricity. The power regulator exercises on pricing oversight on high-voltage electricity sales, said Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission. Radan Atalai, chairman of the parliamentary power policy committee, Thursday said the committee will act as a go-between in the dispute between NEK, the power regulator and the electricity consumers in the local metallurgical and cement industries.
Source: Dnevnik (05.10.2007)

NEK shut down Radomir Metal industries electricity because of a debt National Electricity Company (NEK) shut down the first entrance that supplies Radomir Metal industries with high voltage electricity, informed the CEO of the company Ludmil Alexandrov quoted by BTA. A debt of BGN 2.4 m led to the shut down. The amount is a result of an agreement made two years ago and the difference between the old and the new prices of electricity brought in by NEK, managed by Lubomir Velkov this summer. From 1 July the company receives invoices with the new tariffs but refuses to pay it and pays off by the old prices. As a result a debt of BGN 90,000 is accumulated each month. The company claims BGN 3 m including interests from NEK. That is because the company bought off a debt of Nek to Stomana JSC – Pernik, that is in liquidation.
Source: Monitor (08.10.2007)

Bulgaria's second nuclear power plant at Belene on the Danube will be built according to schedule, economy and energy minister Petar Dimitrov told reporters on Saturday, just days after a key deadline in a tender to pick a strategic investor was postponed by two weeks. Bulgaria's state-owned power grid operator NEK said on Monday it extended the deadline for preliminary bids to October 15, at the request of the shortlisted bidders, who said they needed more time to prepare. But the process is still on schedule and the strategic investor that will buy 49% in the company that will build and operate the power plant will be picked before the end of the year, Dimitrov said during a visit to the future site of the plant. Actual construction work will begin next year and will create 6 000 new jobs, he added. Bulgaria has shortlisted six bidders in July - Czech CEZ, German E.ON and RWE, Belgian Electrabel, Electricite de France and Italy's Enel.
Source: Darik Radio (08.10.2007)

Plant rebels against expensive electricity A steel plant revolted against the expensive electricity. Radomir Metal industries JSC refuses to pay the higher tariffs brought in from 1 July. As a result the National Electricity Company (NEK) began shuting down the electricity for the biggest plant in Radomir region. The first entrance of the electricity system of the high-voltage furnaces was shut down and that put the steel-maker to hold. The reason is a debt of BGN 2.4 m. The difference comes from an old agreement and the new tarrifs brought in by NEK in July. The company thinks the new tarrifs are groundless and refuses to pay according to it and accumulates a BGN 90,000 debt every month. According to the management the increase of the prices is unreasonable and is only of profit to NEK. Because of the electricity shut down the workers get ready for strikes in front of NEK and the Ministry of economy and energy and threaten to block the Sofia exit. The company is discussing the option of electricity import. The German market offers electricity at half the price offered by NEK, said the head of the Supervision board of the company Plamen Bonev. The German electricity costs 25 EUR/MW, the tariff of NEK is 48 EUR/MW.
Source: Standart (09.10.2007)

CEZ AS, the biggest central European power company, started to sell electricity to Greece Oct 8 in a one-week contract that will test possibilities of exporting power to the country, reports news agency Bloomberg. The Prague-based CEZ began its first-ever sale of power to Greece, it said in an e-mailed statement quoted by Bloomberg. The contract for the delivery of 'a small amount' may be the beginning of larger business with the country, CEZ trade director Alan Svoboda said. The power for Greece will be produced mostly in Romania and Hungary and will be exported via Bulgaria, CEZ said. CEZ spokeswoman Eva Novakova declined to give details of the size of the contract.
Source: Dnevnik (09.10.2007)

Belene NPP Construction to Get 30 % Costlier "Belene Nuclear Power Plant (NPP)'s building may turn out 30% more expensive and rise to a 5,2 billion Euro," said in Beijing Irina Esipova, the press secretary of Atomstroyexport, the Russian contractor, which is to build the plant. If this happens, Bulgaria's second nuke would cost 5,2 billion Euro instead of the initially envisaged 4 billion. "There are no grounds yet for such apprehensions. It is too early to talk of a price rise," Esipova said. "It will be not earlier than 2008 that the construction contract for Belene NPP will be signed by the National Electric Company (NEC) and Atomstroyexport," she added. The contract will particularize under what conditions the Russians will be allowed to rise or lower the construction price. For example, one such condition could be more advanced technologies, or more modern construction process, or any other additional requirements the contracting authority NEC might come up with. Atomstroyexport stated that they were ready with the conceptual project and the technical assignment. Contrary to an earlier statement by Esipova that the architects of the state-owned holding Atomenergoprom had worked for 6 months without having been paid due to a delayed payment on the part of Bulgaria. Currently the Russians are working for the advance payment provided by NEC for this year. No earlier than summer-2008 will the Bulgarian Ministry of Public Works and Regional Development issue a building permit for the nuke's construction. Afterwards it will take at least six months for the Bulgarian Nuclear Regulatory Agency to license Belene NPP. "Nevertheless there should be no apprehensions that there might be a delay. The plant will commence work as it has been planned - in 2014," said Esipova. According to the sources of The Standart, however, the plant's start will be suspended for a year.
Source: Standart (11.10.2007)

Metallurgists against expensive electricity Consumers are indignant at the National Electricity Company (NEK) because of the high prices of the industrial electricity. Two companies from Pernik region have already risen against the new tariffs brought in from 1 July. Following the refusal of Radomir Metal industries to pay the 39 percent higher invoices, Stomana Industry revolted against NEK yesterday. The Bulgarian Association of Metallurgical Industry will address the Commission for Protection of Competition about the jump of prices, announced the management of the company. According to the management of Stomana Industry, NEK have made the correction of tariffs without preliminary talks and warnings. The rise of the prices will hit the economy and would lead to deficiency in the foreign trade balance. 90 percent of Stomana Industry production is exported and the new electricity tariffs will add 5 percent to the prices, said the steel-maker. The company has no alternatives as NEK has preliminary bought all the electricity on the market at high costs.
Source: Standart (11.10.2007)

Bulgaria has exported 3 billion kWh of electricity since the beginning of 2007, Lyubomir Velkov, CEO of the National Electric Company (NEK) said. Exports are expected to amount to 3.6 billion kWh for the entire 2007. The figure stands at half the amount Bulgaria used to export prior to the de commissioning of units 3 and 4 of the Kozloduy nuclear power plant. NEK posted BGN 400,000 profit from electricity exports for the period January to August, Velkov said.
Source: Pari (15.10.2007)

Over 100 Bulgarian corporations have submitted references for the selection of subcontractors to AtomStroyExport, the Russian company that will build a nuclear power plant at Belene, on the Danube river. Under a preliminary agreement signed in 2006 by the Russian company and Bulgaria's national power grid operator NEK, AtomStroyExport is obliged to farm out to local subcontractor at least 30% of project activities. The deal ensures a 1.2 bln euro gusher of engineering, construction, assembly, procurement and equipment tuning contracts for Bulgarian corporations over the next eight years. The 2006 agreement and the final accord that is being drafted expressly state the activities that can and those that can't be outsourced by AtomStroyExport without NEK's prior consent. AtomStroyExport plans to hire the local subcontractors on a competitive basis.
Source: Dnevnik (16.10.2007)

Five bidders put in initial offers in the tender to pick a strategic investor for 49% in the nuclear power plant that it will build at Belene on the Danube, 's power grid operator NEK said. Czech CEZ, German E.ON and RWE, Belgian Electrabel and Italy's Enel, shortlisted in July, all submitted bids before Wednesday's deadline, with Electricite de France dropping out of the race. Initially, bids were due on October 1, but NEK extended the deadline twice to allow interested firms to prepare their offers. NEK has allowed each company to see the blueprints for the power plant, conditional to them signing a memorandum of confidentiality. Another four companies that submitted letters of interest - Swiss ATEL and EGL, Spain's Endesa and Bulgarian Kumerio Med - are only interested in stakes of up to 25% and could still be involved in the bidding a later date, if any of the five shortlisted companies are interested in associating with them as part of a consortium.
Source: Darik Radio (18.10.2007)

Bulgaria Guarantees Belene NPP Construction with EUR 600 M The banks will provide funds after the appraisal of Brussels Bulgaria's state treasury will provide 600 million euro to guarantee the construction of NPP Belene, Bulgaria's Council of Ministers decided yesterday. The funds will be provided as a warranty for the provision of loans from Euratom and the European Investment Bank (EIB) in 2008. With its decision, Bulgaria's Cabinet explicitly backs the majority investor of the project - Bulgarian National Electric Company (NEC). Meanwhile, it transpired that Brussels is ready with its assessment on the financing scheme and the Russian technology to be used in the NPP Belene construction. The decision is to be made ppublic by the end of 2007. Atomstroyexport announced they were not concerned with the answer of the EU, because they had all grounds to believe it would be positive. But it is mainly the decision of Brussels that is one of the stumbling blocks for the banks to provide loans for the construction of the NPP Belene. NEC fears that in case the answer of Brussels is negative this may scare away the banks, thus hindering the provision of funds for the Belene nuke. As the Standart has already wrote, there is a possibility that the construction costs of Belene will up by about 30%. But how this might happen will be specified in the agreement between NEC and Atomstroyexport. The agreement has to be signed by the end of 2007.
Source: Standart (19.10.2007)

Bulgaria's cabinet decided on Monday to double the amount of debt it is willing to guarantee for the construction of the country's second nuclear power plant at Belene. The Socialist government agreed earlier to underwrite a EUR 300 M loan from the EU's Euratom agency, but is now willing to guarantee a loan for the same amount from the European Investment Bank (EIB). The European Commission is still considering its position on Bulgaria's choice of third-generation Russian-make VVER reactors, since the country, which joined the bloc in January, is the first that plans to build the type in the EU.
Source: Darik Radio (19.10.2007)

Industrial co's accuse nat'l power utility of monopoly abuse The big power consumers in the local metallurgical, cement and chemical industries have ganged up on NEK, accusing the national power grid operator of abusing its pricing monopoly. On Friday, steel maker Stomana Industry filed a complaint with the local anti-trust authority, urging a probe into possible abuse of a dominant market position on NEK's part. The Pernik-based steel maker has also sent a letter to EU consumer protection commissioner Meglena Kuneva, asking the official whether NEK is in violation of the market deregulation directive and whether its behavior is detrimental to consumers. The other members of the association of the metallurgical industry are expected to second Stomana's complaint. The complaint is also expected to be joined by one of the nation's biggest fertiliser makers, Agropolychim, said the company's executive director Vasil Alexandrov. Stomana said it has been assured of the support of local cement makers which also have big electricity bills. The concerted effort comes three months after the Bulgarian power regulator approved a NEK-proposed electricity hike which was the biggest in the past couple of years. According to the complaint, the tariff revision - which saw high-voltage prices jump 30% to 50% and transmission charges rise 45% from July 1, was not transparent and did not correspond to the tariffs tabled for public discussion by the Commission for the Protection of Competition (CPC). Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission, said in parliament two weeks ago that the price adjustment was brought about by gains in international coal and oil prices and by the closure of units 3 and 4 of the Kozloduy nuclear power station. The Stomana complaint points out that despite the expiry of NEK's monopoly in early 2007, the utility continues to play a key role on the local power market after receiving a licence to operate as an electricity trader as well. The permit allowed NEK to roadblock the deregulated market after purchasing the bulk of the Kozloduy output allocated for this segment. Stomana further claims that the lack of supply has prevented the company from leapfrogging NEK to enter the deregulated market. Anyone who finds our prices disagreeable is free to enter the market, NEK commented on Sunday. In an interview for Dnevnik some 10 days ago, NEK executive director Mardik Papazyan said that the company offered Kozloduy NPP the best price for its output and denied that this move contradicted the free market. But he also admitted that there is was no actual market competition at the moment. Papazyan has accused Stomana of refusing to pay its electricity bills and has threatened that the power supply to the steel mill will be cut. Stomana is not the first local corporation to seek regulatory intervention against NEK. In 2004, chemical company Chimco unsuccessfully complained to the anti-trust watchdog that NEK was abusing its dominant position. Three years later, the Pleven regional power distribution company asked the CPC regulator to intervene when NEK allegedly poached packaging producer Meyr-Melnhof Nikopol as a client but the regulator refused.
Source: Dnevnik (22.10.2007)

After failing to receive support from the ministry of economy and the State Energy and Water Regulation Commission, metallurgical companies in Bulgaria decided to approach the Commission for Protection of Competition (CPC). The National Electric Company (NEK) abuses its dominant position, the Bulgarian Association of the Metallurgical Industry says in a complaint to the anti-trust body. The companies in the sector demand that the CPC should investigate the matter. According to them, by unilaterally adopting a 40-percent rise in electricity prices NEK abuses its monopoly status. That curbs metallurgical production and hinders the development of the economy, the association says. As a result of the price revision, the annual expenses of Stomana Industry alone will jump by BGN 10 million, the chairman of the industry association, Anton Petrov, said. NEK's higher prices also triggered a rise in the rates of the Kozloduy nuclear power plant by some 20% from October 1, 2007.
Source: Pari (24.10.2007)

Bulgarian enterprises, power distributors litigate electricity hike Several local enterprises and regional power distribution companies have lodged complaints with Bulgaria's Supreme Administrative Court against the revision of domestic electricity tariffs enforced on July 1, 2007. The complaints were filed by Stilmet, Asarel Medet, Agropolychim, Radomir Metali, Kremikovtzi, E.ON Bulgaria Sales, E.ON Bulgaria Grid, EVN Bulgaria Power Distribution, EVN Bulgaria Power Supply, CEZ Electro Bulgaria and thermal power plants Bobov Dol and Varna. The hearings on the complaints submitted by the industrial enterprises are scheduled for October 29. The hearings on the complaints filed by the power distributors are slotted for November 5 and 7. The industrial consumers have asked the court to overturn the new tariffs as unlawful. They contend that the new tariffs contravene the Energy Law and the pricing regulations. The price increase, which ranges from 31% for some consumers to 51% for others, stunt the development of the free market and competition and entrench the foothold of national power grid operator NEK. The power distributors argue that there were no grounds for the hike in the price at which they buy electricity from NEK. The major power consumers point out that the 45% increase in the transmission charge was also groundless. In a separate development, the Bulgarian association of the metallurgical industry has filed an anti-trust complaint against NEK and has asked the Commission for the Protection of Competition to investigate possible abuse of dominant market position. The companies are in the opinion that the watchdog has broken the principles of just contribution of the economic consequences after market liberalization when the new tariffs were defined and has not ensured equal conditions for deals with free-negotiable tariffs as provisioned in the energy law. Industrial customers buy 31-51 percent more expensive electricity from the beginning of July. State Commission for Energy and Water Regulation has transferred its commissions to the electricity company, states Asarel Medet complaint, and has wrote down that the tariff cannot be lower than the tariff for the end customer. The regulator has not pointed out the assessment method. Power distribution companies also think that the higher price of electricity is not well grounded. In big clients’ complaints is pointed out that the distribution fee, higher by 45 percent, is not grounded. Currently it is BGN 8.2(no VAT) per MW. Two years ago, big customers appealed against the distribution fee in court and won the case against the watchdog. Power plants Bobov Dol and Varna do not accept the new tariffs as well. They motivated their demand with the higher prices of local and import coal.
Source: Dnevnik (25.10.2007)

Five companies have placed winning bids in a tender for 200MW of electricity produced by thermal power plant Varna EAD invited by power trader CEZ Trade Bulgaria. A total of 14 companies notified their interest in the tender. Thirteen of them went on to submit 60 bids totalling 790MWh. 'The big number of offers was no surprise. There has been significant interest in 2007 towards the output of the Varna station from power traders,' said Michal Skalka, director trading at CEZ. The only tender criterion was the highest offered price. Mardik Pazayan, executive director of national power grid operator NEK, has accused the Varna TPP of engaging in unfair business practices on account of the fact that reliability of domestic consumption should be ensured first before any electricity output is tendered.
Source: Dnevnik (31.10.2007)

NEK, Bulgargaz, BTC and several other big companies are out of the traditional rating of the leading Bulgarian companies and holdings, made by the Bulgarian Chamber of Commerce and Industry for seventh year in a row now. By last year they used to be ranked top positions, but now the Chamber has altered the leading criterion – in stead of the net sales revenues of the companies, the key factor this year is the profit per each BGN 100 of income. The new criterion made the Varna-based Roads and Road Facilities become leader, as last year the company ranked 86th. Practically all the companies providing communal services, electricity distribution companies all that were well-presented in 2006, dropped out of the rating. On the other hand, the top companies are construction companies and big industrial companies, except Kremikovtzi. Over 4,500 companies have applied for a participation in the rating.
Source: Sega (02.11.2007)

Bulgaria's National Electrical Company started tough negotiations with the Russian company Atomexportstroy on the price of the old facilities on the building site of NPP Belene. The haggle between NEC's working group and the Russians should be over by the New Year. Atomexportstroy's offer reads that the company takes the commitment to buy out the old facilities at the site of NPP Belene and use them at the Kalininskaya nuclear power plant. Now it turns out that the Russians do not agree to pay the sum provided in the assessment report of NEC. Sources from the NEC working group told The Standart that the Bulgarian state wanted about 300 million euro for NPP Belene's reactor, but the Russians were willing to pay only 100 million euro. "We want them to pay one price and they say they will pay three times less," said Bogomil Manchev, Chairman of the Bulgarian Atomic Forum. To his words, the situation will become very complicated if the two parties fail to reach an agreement on the price of the facilities. The crisis with the workers on the building site of Bulgaria's second nuclear power plant is getting more and more serious. In addition to construction workers and welders, it now turns out that we do not have enough nuclear engineers, who to operate the power plant when it is ready to function. This transpired at a conference yesterday with the participation of representatives of the Bulgarian universities, energy experts and businesspeople. In the contract for the construction of NPP Belene it is provided that by 2013 the Russian company should train 529 specialists, as the power plant's first reactor is scheduled to be put into operation, then. This is included in the price of the project, said Yordan Georgiev, Head of the NPP Belene Enterprise with the National Electrical Company. "The problem is, however, that the Bulgarian universities do not produce enough young specialists in Nuclear Physics," said Vanya Dobreva, Deputy Minister of Education. So as to attract more young people to the field of nuclear engineering, the National Electrical Company will found twelve scholarships for students in Nuclear Physics.
Source: Standart (06.11.2007)

Enemona has energy projects worth BGN 50 mln Enemona JSC – Kozloduy will execute projects worth BGN 50 mln in conventional and nuclear energetics in the country until the end of the year, announced the company. The investments are concentrated in Nuclear Power Plant Kozloduy SPJSC – Kozloduy, Thermo-electric power plant complex Maritsa-iztok, Cumerio Med JSC, electricity distribution companies and National Electricity Company (NEK). The company will be one of the executors of the new Nuclear Power Plant in Belene.
Source: Darik Radio (06.11.2007)

The government may provide target budget financing for the university training of staff for the future nuclear power plant (NPP) at the town of Belene, on the Danube, energy minister Petar Dimitrov said during a discussion organised by Bulatom. National power grid operator NEK may set up a special fund for overseas scholarship programs for university students and faculty, said the official. NEK, AtomStroyExport, the Russian company that will build the NPP, Bulatom, the ministries of education and economy and local universities will have two months to come up with a curriculum for the training of the required staff. Dimitrov urged local businesses to also set up scholarship programs. A pool of 529 professionals will be required for the launch of the Belene NPP, including 56% university graduates, said Yordan Georgiev from NEK.
Source: Dnevnik (06.11.2007)

The European Commission's directorate-general for energy and transport has given its green light for Bulgaria to build a nuclear power plant at Belene using Russian reactors. Since the deal was signed last year, just a month before Bulgaria joined the EU in January, it needed the express approval of the European executive to go through, Bulgaria's power grid operator NEK said in a statement on Tuesday. NEK will own 51% of the company that will build and operate the plant, with the remaining 49% put for sale in a tender that has Czech CEZ, German E.ON and RWE, Belgian Electrabel and Italy's Enel all vying for it. With the European Commission giving its approval, Bulgaria can now apply for a government-underwritten EUR 300 M loan from the EU's Euratom agency. It plans to borrow a similar amount from the European Investment Bank (EIB), as well, and government officials have earlier claimed that they have already secured EUR 250 M in funding for the plant from BNP Paribas.
Source: mediapool.bg (07.11.2007)

The EU approved the Russian participation in the construction of Belene NPP. The Bulgarian National Electrical Company received a positive respond from the Directorate General for Energy and Transport with the European Commission on the agreement between Bulgaria and Atomstroyexport concluded on November 29, 2006 dealing with the terms of the construction of the new nuclear power plant. Permission of the EC was sought because the agreement is between a EU member and a country outside the EU.
Source: Standart (07.11.2007)

Brussels has not given a green light yet to the construction of Belene NPP, Bulgaria's would-be second nuke. "The European Commission has not approved launching of the project," said yesterday Ferran Tarradellas, spokesman of Commissioner Andris Piebalgs, quoted by the Bulgarian News Agency. Thus, he disproved press reports in Bulgaria maintaining that the European Commission had approved of Russian Atomstroyexport as subcontractor to the project. On Tuesday, the National Electrical Company, holder of 51% of the shares of the new NPP capitals, reported that a positive respond had been received from the EC Directorate General for Energy and Transport on the agreement between NEC and Atomstroyexport that was signed in the end of last year. Yesterday, however, sources from NEC clarified that it actually did not mean approval of Belene project. The positive response was in line with Bulgaria's commitment to submit for approval all agreements concluded with the non-EU members before Bulgaria's EU accession. Brussels' position makes difficult raising funds for the plant construction, the NEC explained. High-ranking sources maintain that if Brussels gives a positive signal for launching of Belene project, financial institutions would be more agreeable to granting a loan. The Bulgarian state has already allotted 600 million euro guarantee for Belene loan.
Source: Standart (08.11.2007)

The European Commission has not given its greenlight for Bulgaria to build a nuclear power plant at Belene, a spokesman of EU Energy Commissioner Andris Piebalgs said on Wednesday. The spokesman reacted to a statement of Bulgaria's power grid operator NEK, which claimed the European Commission's directorate-general for energy and transport has approved its contract with Russia's Atomstroyexport. "Since the deal was signed last year, just a month before Bulgaria joined the EU in January, it needed the express approval of the European executive to go through," said NEK statement, released on Tuesday. Talking to journalists in Brussels Ferran Tarradellas stressed that the process of approval takes time, but refused to say when a final decision can be expected.
Source: Darik Radio (08.11.2007)

NEK, the national power grid operator, and the regional power distribution companies will seek a hike in electricity prices to cover their losses from the delay in the adoption of the rules for the purchase and certification of the energy output of co-generation facilities, said NEK executive director Mardik Papazyan.
Source: Dnevnik (12.11.2007)

There is no official answer from the EC for the Belene NPP project notification, yet. We expect them to give us an answer in a few weeks, the press agent of the NPP Radoslav Popov announced. He pointed out that the minister of Economy and Energy Petur Dimitrov received a permission by word of mouth for the project from European commissioners during his visit in Rome. 10 days ago the news agencies announced in public information, given to them by NEK, that the contract of the company with the Russian company Atomstroyexport is approved from Brussels. We didn’t take a decision for NPP Belene, a spokesman of the Eurocommissioner Andris Piebalgs said. The construction of a second NPP in Bulgaria is under consideration, but we haven’t decided yet. If there’s a permission by Brussels in a few weeks, there will be no obstacle for the official signing of the contract with Atomstroyexport. An investor for the NPP will be chosen among the five candidates in the beginning of 2008 most likely. The company will become a co-owner together with NEK and Belene NPP will be created and registered later on, they explained the procedure form the press center of the NPP. There is no most probable investor up to now. All the candidates are equal and the favorite will be elected after a careful research on the conditions he offers, Radoslav Popov explained.
Source: BG Sever-Pleven (19.11.2007)

Shares in the energy holding that Bulgaria will set up in 2008 will be listed on the Bulgarian bourse and on one of the foreign stock exchanges, Bulgarian energy minister Petar Dimitrov said on Monday. The holding will be created through the consolidation of the Maritsa Iztok mining company, thermal power plant Maritsa Iztok 2, nuclear power plant Kozloduy, national power grid operator NEK and Bulgargaz Holding. The initial plans were to consolidate into the holding structure first the power stations and the mines, then Bulgargaz telecom division Bulgartel and NEK's telecom operations and then the gas and electricity transmission operations.
Source: Dnevnik (20.11.2007)

EUR 8 bln in Bulgarian Energetics for 5 years Until 2013 EUR 8 bln will be invested in energy projects in Bulgaria, announced the Deputy Minister of Economy and Energy Yavor Kuyumdzhiev during the tenth economic forum. Half of it will be invested in the construction of two units at Nuclear Power Plant Belene, and the rest for new installations in Thermal Power Plant Maritza Iztok. Currently Bulgarian Energetics is second most attractive for investments worldwide, right after Brazil, he pointed out. In the meantime head of National Electricity Company (NEK) Mardik Papazyan explained to the forum participants that there is a sharp shortage of electricity on the Balkans, after the shut down of third and fourth units of NPP Kozloduy in the end of last year. This year the electricity insufficiency reaches 5 TWh, while it will increase to 8 TWh in the next few years. NEK has exported 17 per cent of the electricity produced in the country last year, while in 2007 the export is several times smaller. In previous years Bulgaria was capable of covering up to 80 percent of the energy insufficiency of the Balkans and now we can cover up to 20-30 per cent. Romania is capable of covering up to 30 per cent of the insufficiency, and Bosnia and Herzegovina only 20 per cent, said Papazyan. He added that there is no threat of electricity regime in Bulgaria. That is because until 2009 the 670 MW installations, currently under construction by Italian company Enel, will be opened in TPP Maritza Iztok 3. What is more, the cascade Tsankoc Kamak( 80 MW installations) construction is expected to finish. In 2013 the first 1000 MW unit of NPP Belene will be finished, said Papazyan. Nek plans the construction of new units at the TPP Ruse and TPP Varna.
Source: Monitor (21.11.2007)

Bulgaria's new nuclear plant at Belene will be safe against earthquakes, the country's National Electricity Company said Friday, following warnings by environmentalists in Brussels that its planned site was in a seismic zone. "The nuclear plant at Belene will be built in one of the safest zones in terms of seismic activity in Bulgaria," the company said in a statement. NEC cited analysis by Bulgaria's geophysical institute that found the 30-kilometre zone around the Belene site had never been subjected to any earthquakes equal to or exceeding magnitude four on the Medvedev-Sponheuer-Karnik scale. Environmental groups and a Bulgarian nuclear expert working at Vienna's Institute of Risk Research urged the European Commission Friday in Brussels not to approve the construction of the Belene plant saying that the site was in a seismic zone.
Source: Agency Focus (26.11.2007)

BDZ, the Bulgarian state-owned railway carrier, said it will use some of the proceed from its 120 mln euro bond to retire a 67 mln lev debt to national power grid operator NEK. A portion of the residual proceeds from the placement will be used to settle 90 mln levs in unpaid infrastructure charges owed to the National Railway Infrastructure Company (NRIC). The notes, secured with Siemens Desiro engines and a portion of the cargo car fleet, also raised money for the renovation of 1,200 BDZ cargo cars.
Source: Dnevnik (26.11.2007)

AES wind energy project awarded top investor distinction AES Geo Energy, majority-owned by U.S. power company AES Corporation, said it has been issued a First Class Investor certificate for its 120 MW Kavarna wind project. The certificate, granted by the Bulgarian investment promotion authority, entitles the investor to state funding for the construction of the necessary infrastructure. Kavarna is expected to be operational by mid-2008 and will sell power to NEK, the national grid owner and operator, which provides preferential connection status for wind projects. The 300 mln euro facility will produce over 450GWh.
Source: Dnevnik (07.12.2007)

Four energy giants are blackmailing Thermo-electric power plant Maritsa-iztok-2 by unrealistic offers for the sulfur-filtering installations for units 5 and 6. Italy-based ‘Alsom Power’, ‘Austrian Energy’, Polish ‘Rafaco’ and Japan consortium ‘Hitachi and Hitachi Power’ participate in the auction but have given offers several times higher than the stipulated in the project. This lead to the auction failure said the head of TPP Maritsa-iztok-2 Todor Mihaylov. He added that in case the offers had been accepted, they would have had to asko for higher energy prices.
Source: Standart (10.12.2007)

Two Heat Supplies demanded rise in the price of the heating Five of the largest heat supply companies in the country – of Sofia, Plovdiv, Varna, Burgas and Pernik, demanded rise in the prices from the State Commission for Energy and Water Regulation. The heat supplies of Sofia and Varna want a correction of the prices of the heating, and all five insist on the Commission to increase the prices, on which they sell the produced electricity to the National Electricity Company. The corrections for the heating are minimal – they want a rise from BGN 72 to 75 for one megawatt per hour in Varna, and according to the director of the heat supply in Sofia the company demand 8% rising.
Source: Sega (11.12.2007)

The shortage of electricity will be kWh 1 bln. From the beginning of next year, NEK announced. The deficit is to be substituted with import. A company report points out, that if the meteorological conditions are worse than expected, for example if it’s snowing too much, power electricity restrictions might take place. Another precondition is the accumulation of accidents in a few of the capacities.
Source: 24 chasa (13.12.2007)

Contractor, NEK reach agreement on Belene NPP Russia's Atomstroyexport, which is the chief contractor for the Belene nuclear power plant (NPP), and Bulgaria's National Electric Company (NEK) have agreed on the price of the equipment on the site of the future N-plant, the Pari daily learned. The price was one of the main issues hampering the closure of the final contract between the parties. NEK assessed the equipment, which was delivered before the project was shelved in 1991, at some BGN 300 million. Atomstroyexport, however, said the equipment cost half the amount. According to Pari's sources, the parties agreed on a compromise price. The contract has to be approved by the council of ministers. Most probably the deal will be closed officially during the visit of Russian president Vladimir Putin. After the contract is finalised, Bulgaria will choose a strategic investor for the project, which will receive up to 49% of the shares. The company will be picked by NEK but the final decision will be taken by minister of economy and energy Petar Dimitrov. Now that the Belene NPP project has been approved by the European Commission, many banks express readiness to provide the first EUR 250 million financing, the Pari daily learned.
Source: Pari (14.12.2007)