 |
 |
|||||
 |
 |
 |
 |
 |
||
BEIS
Services
About us
Press Digest
 | The mining company "Maritsa-Iztok" demands BGL 1.5 billion long-term investment credit from the State Fund for Reconstruction and Development. The mines have to produce 35 million t. coal per year in order to secure the normal work of the heating plants in the country. Source: 24 chasa (07.02.1996) |
| | The losses of "Maritza Iztok"-mines since the beginning of 1997 are in the amount of over BGL 6 billion. The coal output has decreased because of the low loading of the stations. Source: Kontinent (25.02.1997) |
| | Mr. Plamen Nikolov, Director of Coal Output Department in Committee for Energetics, is the new Chairman of the Board of Directors of mines "Maritza - Iztok". The company needs BGL 17 billion for repair of the assets. Source: Kontinent (16.09.1997) |
| | The District Prosecutor in Radnevo, Mrs. Stoyanka Kostova informed yesterday the management of "Maritza - IztoK" JSC that the work in the open mines can be restored, after a solution of the argument between the mines and the owners of land. Energetic Resources Fund will grant BGL 1,5 billion for compensation of 2000 land-owners. Source: Kontinent (16.10.1997) |
| | BGL 64 billion will be invested in "Maritza - Iztok" in 1998, was reported by the management of the mine. In 1997 the enterprise had a profit of BGL 62 billion. The mine has paid all its debts for the period 1993-1997. Source: 24 chasa (30.03.1998) |
| | BGL 38,800 billion is the profit of "Mini Maritza Iztok" JSC for 1997, said the Executive Director Mr. Zhivko Gurdev. At the present moment the company has no debts to municipality and state. Major debtor of "Mini Maritza Iztok" JSC is "Agrobiochim" JSC - BGL 2 billion. Source: Democracy (06.05.1998) |
| | "Maritza Iztok Mines" JSC has new Directors. Mr. Zhivko Gurdev and Mr. Yovko Vladev were dismissed from the Board of Directors. Executive Director was appointed Mr. Netzo Dzhenov. New members of the company's Board of Directors are Mr. Tzvetan Rizov and Mr. Georgi Georgiev. Source: 24 chasa (15.07.1998) |
| | "NEC" SPJSC and mines "Maritza - Iztok" SPJSC (Radnevo) will establish joint-venture companies with German companies, according to an agreement signed with the Director of Energetics Committee Mr. Ivan Shilyashki. NEC will establish a joint-venture company with the German concern RWE and "Maritza - Iztok" SPJSC - with "Rainbraun". Source: Democracy (16.11.1998) |
| | The Chairman of Energy Committee Mr. Ivan Shilyashki appointed Mr. Petko Petkov Executive Director of "Maritza Iztok Mines" JSC. Mr. Petkov is former Executive Director of "Marbas Mines" (Dimitrovgrad). From the Board of Directors were dismissed Mr. Georgi Kurkumov and Mr. Stoyan Apostolov. Source: Democracy (13.04.1999) |
| | BGL 33.653 billion loss for 1998 reported the 12 plants for coal output in Bulgaria. In 1998 Maritza Iztok had incomes of BGL 10 billion, Bobov Dol mines had biggest loss of BGL 18 billion, Pernik mines had a loss of BGL 11 billion. Source: Pari (26.05.1999) |
| | 4.000 workers from mines Maritza Iztok JSC are on unpaid leaves for one month. Reason for this is a drop in consumption of electricity and the bad financial state of the company. Source: 24 chasa (28.05.1999) |
| | The profit of Maritza - Iztok mines for the first half of 1999 amounts to BGL 4 billion, stated the Executive Director Mr. Petko Petkov. This result is a reason for the mines' management to insist on the Ministry of Finance to exclude the company from the Isolation List. Source: Democracy (14.07.1999) |
| | Stara Zagora District Court registered changes for Maritza-iztok mines - JSC: the members of the Board of Directors Mr. George Karkumov and Mr. Stoyan Apostolov were dismissed; Mr. Petko Petkov and Ms. Daniela Demireva-Gujrova are registered as members of the Board of Direstors; the company will be represented and managed by the Executive Director Mr. Petko Petkov. Source: State Gazette (06.08.1999) |
| | Representatives of the German holdings RWE and Rheinbraun have indicated interest in investing in the Maritza East -2 thermal power station in talks with the Deputy-Minister of Economy Mr. Hristo Michailovski. Source: Standart (21.02.2000) |
| | The growth of the incomes in the past year of Yurii Gagarin-BT JSC Plovdiv is 31 per cent as a result of the optimized expenses. The investment programme of the company for 2000 is BGN 2 million. In order to keep a constant presence in the State and abroad, there have to be rated competition prices and high quality. Source: Maritza dnes (28.02.2000) |
| | The Deputy Chairman of the Energetic Agency Mr. Stancho Andreev became a Director of the biggest coal extracting company Mini Maritza Iztok, Radnevo. More than a month it was without legal Management. In the beginning of this year the mines recorded BGN 16.9 million profit at extraction of 20.7 million t coals and two months outage. Over 2000 people were laid off. Source: Sega (02.05.2000) |
| | The State Energetic Agency signed a contract for creation of joint-venture company between the German company Rainbrown and the mine complex Maritza - East. The joint-venture company will be created with minimum capital, required by the Bulgarian legislation, will make economic research and the evaluation of the assets of mines Maritza - East. This probably will last about an year. The evaluation is necessary for the definition of the exact investment programme of the German company. It is expected the evaluation to be DEM 500-600 million. Source: Sega (19.05.2000) |
| | The profit of Mini Maritza East is expected to be up to BGN 6 million. BGN 21.2 million are assessed for investments in the mines for this year. 40 per cent of the funds are spent. Source: BTA (26.05.2000) |
| | The German company Rheinbraun will have 60 per cent of the capital of the new joint-venture company, that is created with Mini Maritza - iztok SP JSC. The order for the permission for creation of the joint-venture company is signed by the Chairman of the State Energy Agency Mr. Ivan Shiliashki. The company is registered with a capital of BGN 50 100. According to the contract during the next year will be made researches for the perspectives for the development of the coal extraction at the market of electric energy. The point is to be revealed how profitable are the long-term contracts for delivery of coals for the three terminal stations of the complex. Source: Sega (09.06.2000) |
| | The German company Reignbraun will take on concession the extraction of coals from mine Maritza-iztok in the beginning of 2001. This was stated by the Director of the Energetics Agency Mr. Ivan Shiliashki after the meeting of the Supervisory Board of the joint ventured company between mines Maritza-iztok and the German cocern Reignbraun in Koeln. Within November 30 the investment plan of Reignbraun for the renew of the complex will be ready, commented Mr. Shiliashki. Source: Standart (10.07.2000) |
| | The German company Reinbraun and mines Maritsa Iztok JSC registered a new mine company. This was announced by the Executive Director of mines Maritsa Iztok JSC Mr. Petko Petkov. The head office of the company is in Radnevo. Mr. Ivan Shiliashki is Chairman of the Supervisory Board of the new company, Mr. Eberhard Bulling is Executive Director of the Board of Director. 9 500 000 t of coal have been extracted in mines Maritsa Iztok JSC since the beginning of the year. The company's profit is BGN 1 700 000. There will be no dismissal of employees. Currently the company has 9 000 employees, announced Mr. Petko Petkov. The average working salary for the first six months of the year is BGN 522. Source: BTA (15.08.2000) |
| | 9.5 million t of coal were extracted in the complex Maritsa Iztok during the first six months of this year. This is 70 000 t more compared to the previous. A profit of BGN 1.7 million has been registered since the beginning of the year. Currently, the company has 9 000 employees. The average salary for the first half year is BGN 522. Source: Democracy (18.08.2000) |
| | Mines Maritsa-iztok JSC will be signed out of the list for financial isolation. This was requested by the executives of the mining complex from the Chairman of the State Energetics Agency Mr. Ivan Shiliashki and the Minister of Finance Mr. Muravei Radev. Mr. Shiliashki already endorsed the proposal with the motive, that the three mines are already constantly registering stable financial results and have finished the first six months of this year with a profit of BGN 1.7 million. The coals, produced by Maritsa-iztok are by 70 000 t more compared to the same period last year. Source: Standart (22.08.2000) |
| | In the request of Cable Bulgaria for construction of high-speed optical network there is nothing illegal. It will be illegal if by it is transferred voice in real time not for free before the monopoly of BTC has fallen. The decision of the Council of Ministers to give its support to such a project does not concern BTC as the telecommunication company has monopoly not over the network but over the service transportation of voice through it. The intentions of Cable are over the network to be transferred TV and Radio signals, as well as Internet traffic. The company has 22 licenses for televisions in different cities. It is more profitable for it to transfer the signal among them alone not by paying to BTC. A telecommunication system of this kind in Bulgaria has Gukis. The company requests from its clients a declaration that they will not transfer voice. During June the Minister of Transport Mr. Antoni Slavinski disputed the meeting the project of Cable. Source: Sega (30.09.2000) |
| | The expected profit of Maritza East Mines JSC for the current year is in the amount of BGN 2.9 million was reported from the state-owned mines in Radnevo. According to the preliminary reports 22 million tons of coals will be extracted from the three opened ore-fields this year. The profit of Maritza East Mines JSC for the first nine months of the current year amounts to BGN 10.714 million and the extracted coals are 14 289 204 tons. Source: Pari (13.11.2000) |
| | The German energy concern RWE sold its business with wastes in Bulgaria, was reported from the company. The Management wanted to do that one year ago. The deal for the sale is contracted on November 16 with the german company CSI Sheele GmbH but the price of the deal is a secret. Since 1994 RWE invested DEM 15 million in Bulgaria. The main reason for the sale is the lack of funds in the municipal budgets. Source: Sega (28.11.2000) |
| | Maritza-Iztok Mines JSC ended the last year with a profit in the amount of BGN 25 million, the companys Executive Director Mr. Petko Petkov reported. The mines extracted 22 million tons of coals in 2000, which is by 2 million tons more than the extraction in 1999. Maritza-Iztok Mines JSC does not plan to dismiss any employees this year. Source: Standart (05.01.2001) |
| | The German concern Rainbrown will buy 75 per cent from the shares of Maritza-iztok mines, declared the Chief Secretary of the State Energetics Agency Mr. Alexander Petrov. The negotiations with the German concern will finish by April. In May, 2000 the Director of the State Energetics Agency Mr. Ivan Shiliashki and the Director of the international projects in Rainbrown Mr. Ulrih Jobs reached an agreement in which is said that the foreign company would take the extraction and trade with coals and to invest DEM 600 million in the development of the complex during the next 20 years. Most probably Rainbrown will also buy TPS Maritza-iztok 2. According to preliminary data the company will invest DEM 380 million in the modernization of Maritza-iztok mines. Source: Standart (15.02.2001) |
| | The General Meeting of Mine company Maritza-iztok JSC decided to increase the capital of the company, was reported from State Energetics and Energy Resources Agency. The capital of the company is increasing from BGN 50 100 to BGN 900 300 by issuing of new 8 502 shares with face value BGN 100 that may be acquired by the shareholders proportionally to their present participation - 2/3 for Raignbraun AG and 1/3 - Maritza Iztok SP JSC. The Agency specified that the increase was connected with the preparation of the procedure for receiving of concession for extraction of coals. The joint-ventured company was established in June 2000. The initial investments in the mine are DEM 220 million. Source: BTA (07.03.2001) |
| | The General Meeting of the Shareholders of mine-company Maritza Iztok decided the capital of the company to be raised. The joint-company established between the mines Maritza Iztok JSC and Rainbaum was with capital of BGN 50100. It is planed that the capital to become BGN 900 300. At the stock exchange will be released a new issue of 8502 shares with face value of BGN 100. They will be gained by the shareholders in accordance with their present participation. The raise of the capital is due to the procedure for concession for extracting of coals. Source: BTA (16.03.2001) |
| | The capital of the mine company Maritza iztok will be increased, according to decision of the General Meeting of the company. At the moment the capital of the company is BGN 50 100. It is expected its amount to reach BGN 900 300. The mine company is a joint-ventured company between Maritza iztok and the German company Rainbraun. Source: Democracy (19.03.2001) |
| | One third of the former plant for fertilizers Agrobiohim - Stara Zagora is demolished and it is not possible recovery plan to be made, announced the managers of the plant. Their conclusions are that the plant was built as one whole unit and its separate productions are connected. The lawyer of Bulgargas SP JSC holds the same position. Bulgargas is the biggest creditor of the plant again with Mini Maritza- Iztok JSC. They want the plant to be announced insolvent. The plant owes BGN 50 million to the two companies. Source: Duma (22.03.2001) |
| | Until recently the companies have to transfer their taxes only through banks. From this year on thay also may pay the sums cash in the tax offices. Nevertheless the payments still are mainly through bank. The tax offices work with 6 banks. They are TB Biochim, TB Hebros, Expressbank , Bulbank, UBB and Bank DSK.Bulbank attends Bulgargas, the management of the air traffic. The same bank attends also the Ministry of Defence, NEC, BSR . Source: Sega (23.04.2001) |
| | The deal with the German company RWE Reighbraun for Maritza-iztok mines is expected to be finalized by the end of the month. The specialists on the coal extraction declared it as the consecutive bad contract for Bulgaria. According to them the State will miss the opportunity of realizing an effective privatization deal for the company Maritza-iztok SP JSC with a strategic investor. The deal is not favourable because the present company may also provide 80-90 per cent from the amount of the necessary investments for renew and rehabilitation of the mines that will invest the German concern. Source: Standart (11.05.2001) |
| | PA started the first 4 pivatization procedures of coal mines in the State but there is a strong interest only in Hristo Botev mine in Bobov dol. The privatization of Cherno more mine - Bourgas has to start within a month. Source: Capital (25.05.2001) |
| | At the presence of the Prime Minister Mr. Ivan Kostov, the Directors of NEC and Maritza-iztok mines Mr. Danail Tafrov and Mr. Petko Petkov signed the major contracts for the projects on the TPSs Maritza-iztok 1 and Maritza-iztok 3 for which has been negotiating for 4 years now. Over the next 6-9 months the two American companies - AES and Entergy will take the bank loans and will start the work on the two projects. After 2004 the two stations will provide 25 per cent of the produced electricity in Bulgaria. The share of Maritza-iztok 1 will be between 10 and 11 per cent. Source: Sega (14.06.2001) |
| | A green light was given to the projects of the American companies AES and Entergy for Marica-Iztok 1 and 3. The first one could be a problem for the State and NEC. This week starts the barter for export for Yugoslavia and Kosovo for the return of the used nuclear fuel of APS Kozlodui in Russia. This type of deals give a lot of opportunities for destination of financial means in the "right" direction. Two days before the elections it was announced that NEC is withdrawn of the lists form healing and they received a free access to bank credits. During the last few months of the government were released the auctions for construction of some parts of Gorna Arda. This predetermines that the complex will be built although there still are arguments whether there is use of it or not. It is not a fortuity that a conflict for legality of an auction occurs and Minstroy initiates an proceedings against NEC. Source: Capital (24.06.2001) |
| | Until the question for the government was discussed apparently by someones order the energetic monopolists with understandable tolerances were overindulging their clients - no raise of the prices, no pressure for payment of the bills, not even a word for confiscation of property. Population and companies were lighted and heated for free, some of them for half a year or more
A month after the elections it was clear that it time to pay - with the interests. For half a year heat-suppliers have accumulated a debt of BGN 70 million to Bulgargas and if they do not pay it they will have to be shut down. Bulgargas which is in a regime of strengthening may stop its payments to the budget again. Electricity enterprises on the other hand can not pay to NEC in order to buy electricity..
It is already clear - the simulation of reform in the energetics started to give bitter fruits. Source: Capital (05.08.2001) |
| | A profit of BGN 10.867million reported the coal-mining companies for the first half of the year. The positive financial result is due to the companies with open coal-output and is compensated by the loss of BGN 8.53 of the mines with underground coal output. As a whole the profit of the companies of this sector is BGN 2.337million. The biggest profit for the first six months belongs as any other year to Maritsa-iztok mines - BGN 9.855 million. It is followed by Betren mine with a profit of BGN 474 000, Stanyanci mine - with BGN 201 000, Beli breg mines - with BGN 147 000. The lowest profit belongs Antra mines - BGN 3000. Traditionally the biggest loss belongs to Bobov dol mines - BGN5.67, followed by Pirin mines - BGN 1..94. With loss finish the first half of the year Zdravec, Balkan 2000 and Cherno more mines. Source: Black sea (08.08.2001) |
| | The German company Reinbraun applies for concession for extract of coil from Maritza-Iztok mines, announced Mr. Eberhart Buling, Executive Director of the Bulgarian-German mine company Maritza-Iztok. The analyses and the application for concession will be applied in the Council of Ministers during September and the decision is expected within the end of 2001. Reinbraun willl invest DEM 250 million in the mines of Maritza-Iztok. Source: Standart (01.09.2001) |
| | There is a chance that the project for the granting of Mini Maritza Iztok to the German company Reinbraum may fail. It foresees an investments of DEM 500 000 from the German energetic giant for a term of 20 years. It occurred that the joint venture between the Mines and Reinbaum was not profitable and the project will be reconsidered. The contract for the mines is closely connected to the contract with the American companies AES and Entergy for the power-stations in the complex. The contracts were concluded with the clause that even in a case of a future privatization or concession of the mines the terms for the deliveries to the power-stations will not be changed. Source: Sega (01.10.2001) |
| | Mr. Shterio Shterev - one of the three new members of the Board of Directors of Maritza Iztok mines, is offered for Executive Director of the company. The positions in the ordinary Board of Directors will be distributed at the first meeting on Wednesday. The other members of the Board of Directors are Mrs. Nedyalka Ivanova and Mr. Ivan Barumov. The project for constructing of new capacities in HPS Mritza-iztok 1 will start within the end of the month as the American company concluded the contract with the Astom consortium, elected for chief executor. The postponement of the contract is due to the prolongation of the negotiations between the government of Mr. Ivan Kostov and the American company. Another reason were the hesitations of the investors for the way they should transport the coals to the station - by railroad or by transport lines. Source: Standart (08.10.2001) |
| | With an order of the Chairman of State Energy and Energetic Resources Agency on 5 October were made the following changes in the Board of Directors Maritza-Iztok Mines SPLtd. from the Board of Directors are released Mr. Alexander Petrov - as a Chairman and Stefka Karaivanova. Source: Company information (08.10.2001) |
| | The consumers with social functions may negotiate directly with the producers of electricity since 1 January 2002. These are the Water-supply (V i K) companies, Bulgargaz and Maritza-Iztok mines, as on them depend the final prices of the water, gas and electricity. Only a part of the energy market will be liberalized since the beginning of next year. By this moment NEC is the only company in Bulgaria which will export electricity. When this sector is ready to bear the competition o the European then will be allowed other companies to the export of electricity. Since 1 January 2002 the prices for sale of electricity will be equalized to the production prices. Source: Standart (17.10.2001) |
| | The General Director of the projects for Central and Eastern Europe Mr. Richard Marden declared that his project for Maritza-iztok 1 is the cheapest among the new generation capacities that at the moment are important for Bulgaria. He also added that if there were not any changes in the global economic climate and legal preventions by Bulgaria, it will start in the promised terms - by the end of this year. Source: Pari (19.10.2001) |
| | With an order of the Chairman of State Energy Agency Mr. Milko Kovachev since 17 September 2001 from the Board of Directors of NEC SPJSC was released the Executive Director Mr. Danail Tafrov. His contract or management of the company is ceased. For a member of the Board of Directors of NEC SPJSC was elected Mr. Vasil Anastasov. From the position of Chairman of Board of Directors of Electrorazpredelenie-Gorna Oriahovitza was dismissed Mr. Anton Pavlov. A month ago was dismissed the Executive Director Mr. Nikola Bakalov. Source: Pari (19.10.2001) |
| | Eng. Shterio Shterev is the new Executive Director of Mini Maritza Iztok. The decision was made at a Meeting of the Board of Directors. The main reason for the dismissing of the former Executive Director - Eng. Petko Petkov is the postponement of the project with Reinbraun. The profit of the company for the first nine months of the year is BGN 17 million. 240 000 tons more coals were extracted this year as compared to the same period last year. In Maritza Iztok mines work 8 850 people. No reducing of the stuff is planed. Source: BTA (25.10.2001) |
| | The German concern Reinbraun has prepared four of the projects for the future joint-venture with Mini Maritza Iztok, announced the Executive Director of the company Eng. Shterio Shterev. The German company has prepared the offers for the banks which will finance the project, the evaluation of the effect over the environment, as well as the law analysis and the concession offer. The documentary will be discussed at a meeting among the experts of Reinbraun, State Energetics Agency and Maritza Iztok mines. Source: Standart (25.10.2001) |
| | The realization of the deals for Maritza Iztok 1 and Maritza Iztok 3 represents half of the foreign investments and the expected incomes from the privatization for the next five years. Both deals which are in amount of USD 1.4 billion symbolize the foreign investments for the last three years. Source: BTA (06.11.2001) |
| | The German company Raignbraun did not give up the joint-venture with Maritza-iztok mines, declared the representative of the company Mr. Eberhard Bulink. Last week the two companies declared that they were not agreed with some main parametres of the deal. Maritza-iztok mines are monopolists at the delivery of coals and provide the fuel of TPS Maritza-iztok 1 and 3. The joint-venture was created 1 year ago and the German company possesses 67 per cent and the rest 33 per cent are held by Bulgaria. Source: Dnevnik (20.11.2001) |
| | The Deputy Minister of Domestic Affairs Mr. Tonio Zhelezchev enters the Board of Management of Maritza Iztok. Mr. Zhelezchev and Mr. Sabomir Stoyanov are the new faces, whom the Director of the Energetic Energy Mr. Milko Kovachev appointed in the Board of Directors. They are replacing Mr. Toshko Kavaldjiev, who was a Deputy Chairman of the Board and the Economic Director Mr. Peter Todorov. The Board of Directors of Remotex JSC was changed as well. The new Chairman of the Board of Directors is the former Director Mr. Radoslav Karpachev. Source: Standart (29.11.2001) |
| | The German concern Reignbraun and Maritza-iztok mines most probably will not become partners on the exploitation of the lignite field in Stara Zagora region. Within a month or two a group will assess if the mines would remain a state-owned property or have to be sold at all cost. Reignbraun offers one of the mines to be frozen and the personnel of 3500 miners to be dismissed. At this stage the State has to remain a major owner of Maritza-iztok mines, was specified from the syndicate KT Podkrepa. Source: Maritsa (05.12.2001) |
| | Radnevo Municipality announced officially the deal between Maritza Iztok Mines and the German concern Reinbaum. The German conception for the development of the mines does not satisfy the national interests of Bulgaria, as it is not profitable neither for the mines nor for the municipality. The German concern is planning in the future joint company Maritza to enter only a part of the assets of the mine and company to be registered in Stara Zagoira. Thus the incomes of Radnevo Municipality will be drastically reduced. Source: Standart (14.12.2001) |
| | The Executive Director of the project AES - Maritza-iztok 1 Mr. Richard Mardun announced that there were made researches of the Bulgarian energetics. The team of the project Maritza-iztok 1 assigned the research in 1999 and it was realized by the company Energoproject JSC from Bulgaria and ERM Energy from Great Britain. Source: Capital (22.12.2001) |
| | Maritza-East Mines JSC - Radnevo will end the financial year of 2001 with a profit more than the amount of BGN 35 million, according to the company's preliminary financial data. This was reported by the mine's management. The three mines of Maritza-East Mines JSC excavated totally 22.1 million tons of lignite coal last year, which is with 124 000 tons more than 2000. The mines started the new year without any old debts and with a large investment programme in the amount of BGN 60 million. Most of the funds in the investment programme, about BGN 38 million, will be used for purchase of new mining equipment. Source: Standart (07.01.2002) |
| | Brikel JSC, the only Bulgarian coal compressed slack manufacturer stepped up production, after the record low winter temperatures increased the coal consumption, ED Georgi Christozov said yesterday. The Maritsa East thermal power complex stepped up the electricity output as well. The three thermal power stations are currently operating with a capacity of 2,000 MW, out of the maximum 2,400 MW. The complex covers 38% of the electricity consumption of the country. The three mines in the complex produced 110,962 tonnes of coal in the last 24 hours, and 644,024 tonnes from the beginning of the year, which is a record output, said Steryo Sterev, executive director of the Maritsa-East mine. Source: Pari (10.01.2002) |
| | TPS - Sliven and the stations of Maritza-iztok owe about BGN 80 million to its debtors of coals - the mines Lev, Balkan-2000, Cherno more and Maritza-iztok. The thermal power stations impose on state-owned and private mines their monopolistic conditions for the quantities of the supplied coals and for their prices. Source: Pari (15.01.2002) |
| | The thermal power plant /TPP/ of Sliven and the Maritsa Iztok TPPs owe some BGN 80 million to the mines of Lev, Balkan-2000, Cherno More and Maritsa Iztok for supply of coal. Data of the mining chamber show that the TPPs are imposing their monopolistic terms on both state-owned and private mines as concerns the amounts and prices of the coal supplied. The mining sector has been fully restructured. The owner of Gorubso-Madan, Rodhopi Holding BG, is having problems with both the creditors and the state. The manganese mine at Obrochishte has been closed, as has been the Panagyurishte copper mines, the Bourgas copper mines, parts of Gorubso in Rudozem and Zlatograd, etc. An issue that has remained unsettled during the privatisation of most of the mines are the past environmental damages. Source: Pari (15.01.2002) |
| | The German agency for crediting of the export KfW continues its research for the granting of a credit to the American company AES for the rehabilitation and construction of a new capacity in TPS Maritza iztok 1. Representatives of the credit institution met the Management of the Ministry of Energetics. AES promised investments of USD 850 million in the new capacity of the station. The capacity is expected to be ready during 2005-2006. Source: Dnevnik (17.01.2002) |
| | European Bank for Reconstruction and Development envisages to invest in Bulgaria by EUR 500 million over the next three years. The major priorities for the bank are the infrastructure, including the energy sector, financial sector, the privatization of DSK Bank and the private sector. EBRD intends to take part in the preparation for privatization of DSK Bank acquring between 10 and 20 per cent of its capital. The bank also intends to invest between USD 100 million and USD 150 million in the projects Maritza-iztok 1 and Maritza-iztok 3. EUR 30 million will be invested in the reconstruction and restructure of Toplofikatzia - Sofia. Source: Black sea (18.01.2002) |
| | Maritza-iztok mines will sign in March a contract with the American company Entergy for definition of the price of coals and the quantities for extraction. Entergy will invest USD 650 million in the renew and is expected the project to start in the middle of this year. According to the Executive Director of the mine company Mr. Shterju Shterev the price of coals will be defined in accordance with the USD rate and the expenses of the stations will be the same for all consumers. Source: Dnevnik (23.01.2002) |
| | The American company ES applied for a license for manufacture of electricity and construction in HPS Marizta Iztok 1.The company has concluded a contract with NEC for the construction of two additional stations with capacity of 670 megawatts. The value of the project is about USD 850 million. Source: Dnevnik (01.03.2002) |
| | Maritza - iztok mines have another 10 years life when was found the opportunity of extraction between the mines Troyanovo 1 and Troyanovo 2. There are 180 million tons coals. There are enough coals in Maritza iztok mines. The problem is in the low pressure of the stations. BGN 15 million is the profit of the company for the quarter. Source: Standart (08.05.2002) |
| | Maritza-iztok mines can guarantee BGN 60-65 million own funds per year for investments regarding an annual coal extraction of 33-36 million t coals, announced the Director of the company Mr. Shterio Shterev. The company accepted an investment programme for BGN 1.1 billion. The state-owned banks of USA and Japan - Eximbank are ready to credit the company, also said Mr. Shterev. He explained that the company can itself to cover ecological damages in amount of BGN 33 million. Mr. Shterev also added that Maritza iztok mines can continue to exist without a partner. Source: Dnevnik (10.07.2002) |
| | The Board of Directors of the European Bank for Reconstruction and Development approved a loan in amount of EUR 112.1 million for the project of the American company Entergy for the rehabilitation of TPS Maritza Iztok 3, was reported from bank. Galabovo Municipality gave a permission for construction of the project. From the Ministry of Energetics and Energetic Resources reminded that AES company have to provide the finances for the construction of two new capacities in TPS Maritza iztok 1 by Auust 15. Source: Dnevnik (26.07.2002) |
| | The German concern RVE Reinbraun has applied at the Ministry of Energetics a new conception for the exploitation and development of the mines Mariza-Iztok, announced the Director of the company for Eastern Europe Mr. Eberhard Buling. The new project excludes the closing of Troaynovo-Sever mine and the reducing of the personnel These were the two obstacles for the establishment of a Bulgarian-German company. The new proposal has already been at the Ministry for more than a month. The future of Maritza-Iztok includes not only the mines but the power stations, which soon will be working in the conditions of an open market, explained the postponement Minister Milko Kovachev. Source: Standart (20.08.2002) |
| | Maritza-Iztok Mines has filed an application at the State Energy Regulation Commission for free negotiating of the deliveries of electricity, was reported from the press-centre of the Commission. The company is one of the greatest consumers of electricity, with annual consumption in amount of more than 500 million kilowatt hours. In accordance with the energetic strategy as of the beginning of the next year 18.9 per cent of the sale of electricity will be negotiated at the free market. Only companies which have annual consumption in amount of more than 100 kilowatt hours may apply for direct deliveries, announced the Executive Director of NEC Mr. Vasil Atanasov. Source: Monitor (23.09.2002) |
| | Only nine companies have filed by a this moment applications in NEC to use the so called week-end price tariff of the electricity , announced the Executive Director of the company Mr. Vasil Anastasov. Among these nine companies are Stomana, Biovet, Maritza-Iztok mines. If the companies manage to conclude the contracts they will pay between 4-11 per cent cheaper electricity as of November 1. This tariff may use only the companies which has an annual consumption of more than 50 million kilowatt hours and has no debts to the electricity-distribution companies. Source: Sega (23.10.2002) |
| | Eleven companies concluded contracts for using the cheaper tariff for electricity on Saturdays and Sundays, announced the Executive Director of the National Electricity Distribution Company Mr. Vasil Atanasov in front of the Energetics Commission of the Parliament. Since Friday NEC will lower the prices of the electricity for the big consumers with about 8 per cent. Among the companies which use the cheaper tariff are Stomana Industry - Pernik, Maritza Iztok Mines, Asarel, Biovet and Umicore. It is expected that Balkanpharma, Amilum and LUKoil -Neftochim will also use the new tariff . Source: Dnevnik (01.11.2002) |
| | Rainbrown negotiates with Entergy for participation in the project for modernization of TEPS Maritsa East 3. Source: BTA (21.11.2002) |
| | Ten companies will negotiate terms and prices for the delivery of electrcity with the producers as from July 2003, announced the Chairman of the State Energetics Regulation Commission Mr Konstantin at the presentation of the Development of the enrgetics over 2002. The following companies will conclude direct contracts - Lukoil Neftochim, Mariza Iztok mines, Stomana, KCM, Umicore, Devnya Cement, Agropolichim, Neochim, Elatzite medet and Asarel medet. They have annual consmption of more than 100 gigawatt hours and have no debts to NEC, as it is planned in the deecree for the privileged clients. The direct contract with the power stations will lead to reducing of the prices of the electicity. The State Commission rejected to Kremikovtzi, State Railroads and Chimco to use these priveleges, because they have debts to NEC. Source: Dnevnik (18.12.2002) |
| | Ten companies will be able to deal freely with producers the deliveries of electricity in 2003. This was reported from State Commission for Energy Regulation /SCER/. The direct dealing will be only for 15 per cent of the free electricity at the market, the Chairman of the SCER Mr. Konstantin Shushulov explained. The privilege will be used by LUK Neftochim, Maritza iztok mines, Stomana-Pernik, Elatzite Med, Asarel Medet, KZM-Plovdiv, Umicore, Devnia Cement, Agropolichim and Neochim.
The opportunity could be used only from industrial consumers which use more than 100 million kWh electricity annually and which do not have any debts to the National Electric Company. TPS Maritza Iztok 2 will sell 250 mWh electricity to the ten companies, TPS Varna will negotiate 180 mWh and TPS Bobov Dol, which electricity price is higher, will sell 100 mWh. Source: Monitor (27.12.2002) |
| | Three companies submitted requests for direct dealing with the producers of electricity after the start of the market liberalisation as of July 1, 2003. These are Maritza iztok mines, Plama - Pleven and Toplofikatzia Sofia. At the moment only 16 companies in the State respond to the conditions for direct supplies of cheaper electricity. Among them are Stomana industry, KZM, Asarel Medet, Elatzite Med, Unicor Med, Devnia tziment, LUKoil Neftochim Burgas, Agropolichim and Neochim. Kremikovtzi and more of the chemical plants respond to the conditions for consumption of electricity but has huge debts to NEC. Source: Monitor (08.01.2003) |
| | Maritza-iztok mines SP JSC, Stomana industry, KZM-Plovdiv, Assarel-Medet, Elatzite Med, Umicore Med, Devnia tzument JSC, LUKoil-Neftochim-Burgas, Agropolichim and Neochim have now a statute of privileged consumers of 100 million kWh. Per year and are without debts to NEC SP JSC. On December 17 was decided initially 9 per cent of the stations' capacities:: TPS Maritza-iztok 2, TPS Varna, TPS Bobovdol, TPS Russe - bl. 4, and TPS Maritza 3. Over the last 6 months of 2003 will be freed more capacities of these stations. The ponit is to reach 18 per cent. Source: Pari (25.02.2003) |
| | As of July 1, there will consumers with privileges on the electricity market in Bulgaria. These are the companies which consume over 1001 mln. Kilowatt/hours annually. They will have the right to purchase electricity directly from the producers. Among these companies are Maritza Iztok mines, Stomana Pernik, Asarel Medet, Umicore med, Agropolichim, Neochim, Devnya cement, Lukoil Neftpochim, Elatzite, Non-ferrous metals complex. 9 per cent of the annual capacity of TPS Maritza Iztok 2, TPS Bobovdol, TPS Rousse and TPS Maritza Iztok 3 were will be used for this purpose. State Energetics Commission announced that the privileged consumers will be able to apply for the purchase of electricity. Source: 24 chasa (28.03.2003) |
| | 9 companies wanted to be privilege consumers of electricity, was reported from State Energetics Regulation Commission. These are LUKoil Neftochim, Stomana industry, Maritza iztok mines, Asarel Medet, Elatzite Med, Umkumur Med, Devnia tziment, Agropolichim and Neochim. If the Commission, headed by Prof. Konstantin Shushulov approves the requests of the candidates, they will receive cheaper electricity than the rest industrial consumers in the State through direct deliveries from the producers and will pay only fee for transfer to NEC. Source: Monitor (08.05.2003) |
| | The schedule for opening of the electric energetic market is ready and approved by the State Energetic Regulation Agency, announced its Director Mr. Kostantin Shushulov. After July 1, 2003 the so called privileged companies will have a right to conclude direct contracts with a part of the producers of electricity. The privileged companies are the ones that consume over 100 gw/h electricity and pay regular its accounts to NEC. At the moment 10 companies are in accordance with the requirements: Mini Maritza-iztok JSC, Stomana Industry Pernik, KZM Plovdiv, Assarel-Medet, Elatzite-Med, Umicor, Agropolichim, Devnia cement, LUKoil Neftochim and Neochim. Their consumption covers about 15 per cent of the market of electricity. In 2004 the condition for the privileged consumers will be changed to 40 gw/h and to the list may be added Kremikovtzi, Solvay-Sodi and BDZ and several more Bulgarian companies with high incomes. Source: Banker (10.05.2003) |
| | The privileged consumers and producers of electricity discuss the future liberal energy market which is envisaged in the new energetic law. The Ministry of Energetic, State Energetic Regulation Commission, BIBA and NEC organized the meeting in Velingrad. Neither the privileged consumers, nor the producers of electricity know what will be their duties and dividends at the conclusion of direct contracts between them and this is an obstacle for the pre-liberalization of the market because the first participants in it are not prepared. The Commission gave a statute of privileged consumers to Maritza iztok mines, Stomana industry, KZM-Plovdiv, Assarel medet-Panaguyrishte, Elatzite med, Umicore med-Pirdop, Devnia tziment, LUKoil-Neftochim, Agropolichim and Neochim. Source: Pari (30.05.2003) |
| | Over 10 companies declared in the State Energetic Regulations Commission their want to receive a statute of privileged consumers, was reported from the commission. This statute allows the big consumers to conclude contracts with independent suppliers, as they will deal the prices and conditions of the deliveries. The most important condition for acquisition of such a statute is the companies to have annual consumption of over 100 000 mgw/h per year. 15 companies in Bulgaria respond to this condition. These are Kremikovtzi, Maritza iztok mines, Stomana, BDZ, KZM, Asarel Medet, Elatzite med, Umicore, Denvia tziment, Chimko, Toplofikatzia Sofia, LUKoil Neftochim, Neochim and Agropolichim. Some of these companies will drop out since do not respond to the requirement not to have any debts to NEC. There is still the problem whether the Commission will allow Kremikovtzi to become a privileged consumer because the plant has recently had serious problems with NEC because of rescheduled debts. Source: Dnevnik (02.06.2003) |
| | The companies, which satisfy the requirements for privileged consumers of electricity in accordance with the new energetics strategy, adopted by the Parliament in the middle of 2002, are Maritza Iztok mines, Stomana industry, KZM, Asarel Medet, Elatzite med, Umicore med, Devnya cement, LUKoil-Neftochim Bourgas, Agropolichim and Neochim. The fact that these companies have electricity consumption of over 100 million kilowatt hours annually and are financially stabile should be sufficient evidence that they will not allow someone to liberalize the market for their extent. It is not a surprise that before they had the opportunity to negotiate directly for a purchase of electricity with the thermal power stations, they were already disappointed by the offer. The deregulation of the energetics sector is in accordance with the modern trends for lowering the monopoly in the branch, but the sheme which is used in Bulgaria forces the consumer to take an extraordinary risk, is the opinion of the representative of Viohalco group for Bulgaria Mr. Anton Petrov. Source: Pari (10.06.2003) |
| | 10 companies are going to pay less for electricity, decided the State Energetics Regulation Commission. They receive a statute of privileged consumers because they spend over 100 GW electricity per year and dont have debts. Maritza-iztok mines JSC, Devnia tziment, Agropolichim JSC, Assarel-Medet JSC, Elatzite med JSC, KZM JSC, Umicore med JSC, Neochim JSC, Sviloza JSC, Stomana industry JSC will use lower tariffs. The companies will deal themselves the prices of the electricity they consume. Kremikovtzi and OZK-Kurjali were not approved by the Commission. Source: Standart (24.06.2003) |
| | The inspectorate of the Ministry of Energetics is going to examine the agreements between the four companies under the cession contract between Brikel and Maritza-Iztok mines. This was announced by the Minister of Energetics Mr. Milko Kovachev. In December last year, Elcable, Minstroy, Bulgarian Energetics and Dani-93 bought out the debt of Brikel to Maritza Iztok, which was in the amount of BGN 25 million. In return, the four companies are goung to receive 277 thousand tons of briquette by the middle of June. Source: Dnevnik (30.06.2003) |
| | 10 companies will buy electricity directly from TPS Varna, TPS Bobov dol and TPS Maritza-iztok 2 in September when is expected the Parliament to accept the new act for the energetics, announced the Director of Development of market liberalization department in NEC Mr. Plamen Popov. The companies are Stomana industry, Asarel medet, Elatzite med, Union minier, Devnia tziment, Sviloza, Neochim and Agropolichim, Maritza-iztok mines and KZM. In June State Energetics Regulation Commission defined the ten companies as privileged consumers. According to the decree for access of the privileged consumers, they have annual consumption of over 100 GW/h electricity and dont have debts to the electric company. The ten companies will deal lower prices than the current weekend tariff of NEC, which is BGN 63.15 for MgW/h. At the same time with the introduction of the bilateral contracts the producers will be forced to reduce the costs for the capacities. However, the exact price, which is concluded between producers and privileged consumers, is a secret even for NEC. Source: Dnevnik (06.08.2003) |
| | The program for implementation of repair activities in Mines Maritza Iztok with own funds and the measures for costs reduction, undertaken three months ago, increased the mines financial results for the period with BGN 979 thousand compared to the same period of last year. This was announced by the companys Executive Director Eng. Shteryo Shterev. 11 042 465 tons of brown coal have been produced during the first seven months of 2003. Source: BTA (08.08.2003) |
| | Maritza-iztok mines will invest EUR 9.4 million in the reconstruction of one of the main machines for digging of ore, was reported from the company. The contract for the first reconstruction in the complex was already signed. The executors of the reconstruction are the German company MAN Takraf and several Bulgarian companies. After the reconstruction the exploitation term of the machinery will be prolonged with 15 years. Maritza Iztok mine adopted the investment programme for rehabilitation of about 46 machines from the heavy equipment. Source: Dnevnik (18.08.2003) |
| | If the mandate of the State Energy Regulation Commission terminates with the adoption of the new Energy Act by the Parliament, this will postpone the opening of the electrical engineering market with 6 months, forecasted the representative of the privileged consumers of electricity Mr. Nikolai Minkov. The ten companies that received the statute of privileged consumers of electricity from the State Energetics Regulation Commission hope that the conclusion of the direct contracts with the stations and the purchase of cheaper electricity will start in November. At the moment the Ministry of Energetics is gathering offers for a second reading of the project. Before the summer holiday the Parliament adopted at first reading the new act that allows the mandate of the chairman, its deputy and the members of the regulations commission to be ceased when the new act becomes efficient. At the adoption of the project the Minister of Energetics Mr. Milko Kovachev promised to submit an offer that will guarantee the independence of the regulations commission. With the new act will be introduced the trade rules for opening of the market and a new decree for the electricitys prices. In the end of last week representatives of Agropolichim JSC, Asarel Medet, Devnia cement, Elatzite med JSC, KZM, Maritza-iztok mines SP JSC, Neochim, Sviloza, Umicor med and Stomana industry JSC discussed the opportunity for creation of association, which will protect their interests. The decision is expected to be taken within two weeks. The privileged consumers have annual consumption over 100 Gw/h and will have the right to deal the prices and conditions of deliveries with TPS Maritza-iztok 2, TPS Varna and TPS Bobovdol. The ten companies consumed in 2002 totally about 2.7 billion kw/h, which is 9.3 per cent of the domestic consumption in the State. According to expert evaluations, their market is valued at USD 100 million. Source: Dnevnik (15.09.2003) |
| | The direct electricity supply negotiation between big enterprises and electricity producers will start in the end of February 2004, NECs Executive Director Mr. Vasil Anastasov announced. Although the new Energy Law entered into force on January 1 2004, the delayed electricity market liberalization is due to the elaboration of the regulations on electricity prices and license issuing of the so-called privileged consumers (the plants with 2002 annual electricity consumption of over 100 gWh and clean balances with NEC). The sub-legal acts should be developed by the State Energy Regulation Commission (SERC) and should be approved by the Government. Otherwise, the names of the participants in the liberalized market have been known for long. As early as June this year, SERC determined the first ten companies, which will be able to lead negotiations with electricity producers directly. They are Mines Maritza Iztok, Devnya Cement, Agropolichim, Asarel-Medet, Elatsite Med, KCM Plovdiv, Umicore Med, Neochim, Sviloza and Stomana Industry. These companies provide 15 per cent of Bulgarias annual electricity consumption. The names of the electricity producers, which will be able to trade freely a part of their produce have also been specified. On the first stage, a certain quote for free negotiation will be given to TPS Maritza Iztok 2, TPS Varna, TPS Bobov Dol, the heating and plant thermal power stations, as well as to those water power stations that have already been privatized. According to NEC experts, the quotes will be large enough to create competition between electricity producers. The freely negotiated prices are expected to be at least 15 per cent lower than the current weekend prices BGN 63.15 per mWh. Source: Banker (27.12.2003) |
| | This year, the domestic electricity market will be opened for bigger consumers with annual consumption of over 100 mln kWh and for such consuming over 40 mln kWh, NEC announced. This will allow the companies, considered privileged consumers to negotiate their electricity supplies directly with the central producers at the free zones. So far, this right has been given by the State Energy Regulation Commission only to the ten biggest Bulgarian enterprises Mines Maritza Iztok, Stomana Industry, KCM Plovdiv, Asarel-Medet, Elatsite Med, Umicore Med, Devnya Cement, LUKoil-Neftochim, Agropolichim and Neochim. The electricity market was due to be opened for them as early as 2003, and in 2004 it had to be opened for companies consuming over 40 mln kWh annually. In 2003, the liberalization with around 18 per cent was not implemented due to the delayed adoption of the new Energy Law. The decree under it, regulating the new market relationships, is due to enter into force in February, after which the two steps of the liberalization will be merged, experts explained. Big clients electricity expenses are expected to drop with around 8 per cent, which will create additional stimuli for economic growth, Minister of Energy and Energy Resource Milko Kovachev stated. During the first step of the opening of the market, no amounts for direct sale will be released from NPP Kozloduy. Another company, which remains out of the list of centrals, is TPS Maritza Iztok 3, which has a long-term contract with NEC. All the other producers may take part in the free market. The condensation stations will have a partially liberalized quota, which will be sufficient to cover over 150 per cent of the expected maximum consumption of the privileged consumers. The heating, plant and private water power stations will have the right to sell the electricity they produce directly. NEC will be an operator of the transportation system and will guarantee the balance between production and consumption. Since May 2003, NEC, the consumers and the stations are trying different market situations in the form of virtual simulation. The drills will not stop until the decree is adopted. The plans of the participants in the drills are to turn these virtual drills into actual work. The price of the electricity under the direct contracts will not be regulated by the State Energy Regulation Commission. No fees for available capacity will be paid for the free segment. Source: Pari (05.01.2004) |
| | Mines Maritza Iztok received a certificate giving it access to the national railway infrastructure for a period of 5 years, the companys press service announced yesterday. The document was issued tby the National Research Institute of Transport and guarantees the safety of railway transport in the East-Maritza coal complex. The certificate also allows the company to apply for a license to provide railway services using the national network. Source: Monitor (02.02.2004) |
| | The average insurance in the 20 most loyal companies insuring a staff to 15 employees is BGN 908, the National Social Security Institutes information showed. Over 264 people work in these companies. The companies with a staff of 100 to 250 people employ a total of 4127. The average insurance income there is BGN 726. Top 20 of the most loyal employers in these criteria includes the names of Sheraton Sofia-Balkan, publishing house 168 Hours, Mines Maritsa Iztok, Moto Pfoe, Bulgartabac Holding, etc. Source: Cash (06.02.2004) |
| | The Italian company ENEL wants to build two new energy units on the platform of TPP Maritza Iztok 3. Currently, the plant is being modernized by a holding, in which the Italian company holds a 60-per cent stake. The remaining 40 per cent are held by the US company Entergy. ENEL had sent an official letter to the Ministry of Energy and Energy Resources stating its will, Mr. Georgi Georgiev Deputy Director of Maritza Iztok confirmed. Source: Standart (06.04.2004) |
| | When the big consumers start to receive electricity on direct contracts with the electric power stations, they lose the right to buy from NEC or electricity-distribution companies except on conditional contracts. The delivery of electricity on conditional contracts will be executed at fixed prices without weekend tariffs. These specifications will include the project of Rules for the trade with electricity, which regulates how producers and big consumers will conclude direct contracts for delivery of electricity. As a compensation of the canceled weekend tariffs, the prices on direct contracts wont be regulated and will be familiar only to the sides on them. The consumer is obliged to conclude a contract with NEC or any electricity-distribution company for the cases, in which will use quantities, bigger or less than the declared. The companies have to forecast their consumption for one week forward if the deliveries are direct. On this base, NEC as an operator prepares a schedule and the station produces the certain quantity. The market organization will be realized by NEC. The latter will register the trade participants in a register. At the moment the privileged consumers are with annual consumption over 100 GV/h Maritza iztok mines, Stomana industry-Pernik, KZM-Plovdiv, Assarel medet-Panaguyrishte, Elatzite med, Umicore-Pirdop, Devnia tziment, LUKoil-Neftochim-Burgas, Agropolichim-Devnia, Neochim-Dimitrovgrad. After the middle of 2004 the market will be also opened for companies with consumption of over 40 GV/h. In 2007 each consumer has to be privileged. For the time being sellers will be TPS Maritza-iztok 2, TPS Varna, TPS Bobovdol, TPS Ruse, TPS Maritza 3, plant stations and some of the HPSs. Source: Pari (13.04.2004) |
| | National Social Security Institute Sofia announced the 20 most honest employers with 100 up to 250 people staff for the first quarter of 2004, securing 4 076 people with average security income of BGN 674:
1. Amylum Bulgaria SPJSC Razgrad
2. Willi Betz GmbH & Co. KG - Balkan Star Branch Sofia
3. Bulgartabac Holding JSC Sofia
4. Mines Maritsa Iztok SPJSC Radnevo
5. Polichrom POAP JSC Sofia
6. Bulgargas Stara Zagora
7. Festo Production SPLtd. Sofia
8. Unionbank JSC Sofia
9. Communications Regulation Commission Sofia
10. Informational Technologies in Communications Center Sofia
11. New Television - First Private Channel SPJSC Sofia
12. Bulgaria Net JSC Sofia
13. Piccadily Holding LTD Sofia
14. Electricity Distribution Company Pleven SPJSC Vidin Branch Vidin
15. Research Institute of Communications Sofia
16. DZI - General Insurance JSC Sofia
17. Neftochimproject Bourgas
18. Bourgas Free University Bourgas
19. High Voltage Networks Electricity Transmission Region Gorna Oryahovitza Gorna Oryahovitza
20. Heat Supply-Pleven SPJSC Pleve Source: Other (08.06.2004) |
| | National Social Security Institute published a list of the 20 most upright employers having staff of over 250 people for the first quarter of 2004. These 20 companies provide work for a total of 50391 people. The average social security income in these enterprises is BGN 621.
1. NPP KOZLODUY KOZLODUY
2. LUKOIL NEFTOCHIM BOURGAS BOURGAS
3. MINES MARITZA-IZTOK SP JSC BRANCH PIT TROYANOVO-SEVER village of KOVACHEVO
4. MINES MARITZA-IZTOK SP JSC BRANCH PIT TROYANOVO 1 village of TROYANOVO
5. VIDIMA SEVLIEVO
6. STATE-OWNED COMPANY AIR TRAFFIC DIRECTION SOFIA
7. MOBILTEL SOFIA
8. TECHNOLOGICAL REGION OF LONG-DISTANCE COMMUNICATIONS STTS SOFIA
9. BLAGOEVGRAD-BT JSC BLAGOEVGRAD
10. MINES MARITZA-IZTOK JSC BRANCH GROOVE TROANOVO-3 village of MEDNIKAROVO
11. BULBANK SOFIA
12. UNIVERSITY MULTI-PROFILE HOSPITAL FOR ACTIVE TREATMENT ST. GEORGE PLOVDIV
13. TOPLOFIKATZIA SOFIA SOFIA
14. ELATZITE-MED village of MIRKOVO
15. STOMANA INDUSTRY PERNIK
16. VAZOVS MACHINE PLANTS (VMZ) SOPOT
17. TPP MARITZA-IZTOK 2 village of KOVACHEVO
18. BALKANPHARMA-DUPNITZA DUPNITZA
19. PORT VARNA VARNA
20. UMICORE MED - PIRDOP Source: Other (08.06.2004) |
| | National Social Security Institute announced the Top 20 most law-abiding employers with personnel between 100 and 250 for the first half of 2004. The Top 20 companies insure a total of 4057 people with an average insurance income of BGN 778.
1. Media Holding - Sofia
2. 168 Hours SPLTD - Sofia
3. Mines Maritsa Iztok SPJSC - Radnevo
4. Sap Labs Bulgaria SPLTD - Sofia
7 Avtomotor Corporation - Sofia
13. Siemens Information and Communication, Sofia
18. Festo Production SPLTD - Sofia Source: Other (10.08.2004) |
| | The National Social Security Institute announced the Top 20 most law-abiding employers with personnel over 250 emplooyees for the first half of 2004. The Top 20 companies insure a total of 51,560 people with an average insurance income of BGN 622:
1. Lukoil-Neftochim JSC - Bourgas
2. Nuclear Power Plant Kozloduy SPJSC - Kozloduy
3. Mines Maritsa-Iztok SPJSC - Branch Troyanovo-North Pit, village of Kovachevo
15. Elatsite-Med JSC - village of Mirkovo
17. Mines Bobov Dol SPJSC - Bobov dol
19. Thermo-electric power station Maritsa-iztok-2 SPJSC - village of Kovachevo Source: Other (10.08.2004) |
| | Mines Maritza Iztok has transferred its receivables from Brikel to Corporate Bank. The only briquette plant in Bulgaria, which was recently bought by the businessman Mr. Hristo Kovachki, owes a total of BGN 41 mln to its workers. According to the preliminary agreements, the debt should be reduced to BGN 19 mln by the end of this year. Source: Sega (12.08.2004) |
| | The profit of Maritsa East Mines since the beginning of the year came to BGN 7.0 million, according to data provided by the company's management. Maritsa East has extracted 12 million tonnes of coal, 62% of which went for energy production in the thermal power plant Maritsa East 2. The cost of a tonne of coal was reduced by 4.5% and its selling price is BGN 12.20. Maritsa East has lodged a notice to Kalisto, the new owner of Brikel, that it would stop the coal supplies to it due to uncovered current liabilities. Up to now, Brikel owes BGN 41 million to Maritsa East. Brikel deals with production of electricity and heating, transit and distribution of heating, production and sale of briquettes. Source: Pari (13.08.2004) |
| | After the successful ending of the privatization of Bulgarias electricity distribution companies, the long-awaited liberalization of local energy market is expected to commence as well. At least this is what the State Energy Regulation Commission (SERC) promised. The liberalization of the energy market was supposed to happen in July this year, but it turned out in the last minute that it would be delayed again due to the unpreparedness of the sub-normative regulations. According to SERCs chair Mr. Konstantin Shushulov, the commission is already almost ready with the procedures related to the market liberalization. Officially, the right of privileged consumers (companies with an annual consumption of over 40 gWh of electricity) to freely negotiate electricity supplies with power plants will most probably be given in this years last quarter. Along with the market liberalization new players will also be admitted, the so-called electricity traders. They will practically compete with electricity distribution companies, because they will also have the right to deliver electricity to consumers at free prices. This category of market players will be introduced through the new Law on Energy and Energy Resources. The idea is to separate trade of electricity from distribution in parallel with the market liberalization. According to Mr. Konstantin Shushulov, there are already 4-5 private companies which have demonstrated interest, though still not officially, in acquiring licenses to operate such trade activity. The so-called electricity traders will have the right to negotiate with consumers electricity supplies from power plants at prices, which are free, i.e. not regulated by SERC. In order to implement their activity, companies will have to obtain licenses from the regulation commission, which will be given to them in case they meet certain criteria, which, however, have not been determined as yet. Initially, traders will be granted the right to supply electricity only to the privileged consumers (currently around 10 big industrial enterprises). The idea is that traders should be able to supply electricity to these enterprises at lower prices, by negotiating on cheaper supplies with the owners of the power plants. When these mediators appear on the market, privileged consumer will be able to chose whether to use the services of the private trading companies, as long as they are offered better prices, or to negotiate their supplies themselves, by paying only the transmission fees. When household consumer electricity prices are also liberalized, which should happen before the year 2007, they will also be able to use the services of the so-called electricity traders. According to the energy market liberalization scenario, in the first stage of this liberalization the companies Agropolychim, Assarel Medet, Devnya Cement, Elatzite Med, KCM, Mines Maritza Iztok, Neochim, Sviloza, Stomana Industry, and Umicore Med, in their position of privileged consumers, should be given the right to directly negotiate prices and volumes of electricity with TPP Maritza Iztok 2, TPP Varna, TPP Bobov Dol, and TPP Rousse. All four power plants have certain quotas for free electricity negotiation at lower consumer prices. The privileged consumers themselves will pay for the transmission either to the National Electricity Transmission Company, or the electricity distribution companies, depending on the network they use. NETC is owner of the high-voltage network, while the electricity distribution companies own the low-voltage distribution lines. Following the complete opening of the market, electricity transmission should gradually be separated from trade, which means that at one point the electricity distribution companies will only deal with electricity distribution. According to Mr. Konstantin Shushulov, the new owners of the electricity distribution companies are familiar with this scheme and are informed about the possibility of future competition on the domestic market as early as next year. A similar market scheme is actually applied in most European countries. If the scheme should be successful, local traders will have to offer consumers electricity at prices, lower than those offered by the electricity distribution companies, as well as to buy cheaper from production plants. At first sight, the expectation, that consumers will be able to buy cheaper electricity, by using the services of mediators, and not by negotiating with suppliers directly, seems illogical. According to SERCs head Mr. Konstantin Shushulov, however, lower priced supplies are absolutely possible because the prices of this type of supplies wont include the constant expenditures, which are currently included by local energy companies and plants in their selling price. These expenditures include operational costs, maintenance costs, etc. Mediator supply price will only include the variable expenditures of the energy companies (for materials), besides, the companies themselves will be able to negotiate with the plants on lower prices, Mr. Shushulov explained. Electricity traders will only have to pay transmission fees to the NETC or to the electricity distribution companies. Currently, the amount of these fees is determined by the SERC for each company separately, and this is made following their proposal. NETCs transmission fee is in the amount of BGN 11.80/mW, while the fees applied by the electricity distribution companies vary between BGN 6.68 and BGN 10.22/mW. Source: Capital (21.08.2004) |
| | National Electricity Distribution Company (NEC) covered 78 percent of the electricity shortage in the region, the Minister of Energy Mr. Milko Kovachev said in Radnevo yesterday. It was expected a total of 6 billion kilowatts of electricity to be exported by the end of the year. According to Mr. Kovachev, Mines Maritsa Iztok were most likely to remain state property until the end of the Governments term. The Sweden-based state-owned company Vatensal has also shown interest in the three mines but negotiations have not started yet. Source: Sega (01.09.2004) |
| | Electric power exchange market is expected to be set up in 2005, Minister of Energy and Energy Resources Mr. Milko Kovachev said. Initially, only the biggest consumers of electricity in Bulgaria will take part in it. They will negotiate on the prices directly with the producers, which will provide the transparency of the deals. Each one of the Balkan countries is to establish its own energy exchange market Romania, Greece, and Bulgaria, Mr. Kovachev explained. Currently, an intergovernment memorandum is being prepared, which will specify the rules of electricity trade. The document will be ready by the end of the year. Source: Standart (20.09.2004) |
| | Stomana Industry will be next Bulgaria enterprise to sign a contract for liberalized purchase of electric power. The company is owned by the Greek group Viohalco. Some of the other companies which will be given the opportunity to do that are Assarel Medet and Mines Maritza Iztok, which are currently in a process of negotiations, Mr. Yordan Kostadinov, executive director of NPP Kozloduy said yesterday. On Friday evening the nuclear plant signed a contract for liberlized sale of power electricity with Umicore Med. The price in this deal is commercial secret, but it is at least 15 per cent lower than the one at which Umicore was previously forced to buy electricity from the National Electricity Transmission Company (NEC), Mr. Thomas Beamish CEO of the copper plant revealed. Currently, all enterpises, consuming at least 40 000 mWh of electricity annually have the right to liberally purchase electricity. Next year, this right will also be given to clients consuming 20 000 mWh, in 2006- 9000, and in 2007 all non-household consumers. Meanwhile, it became clear yesterday that the transmission fee, paid to NEC in such cases, will be changed. Currently, it is in the amount of BGN 11.80 per 1mWh of transmitted electric power. By the end of this year, it will be fixed depending on the distance. This promise resulted in the signing of the first contract for liberalized electricity sale, a source from the State Energy Regulation Commission said. The first amounts of electricity, sold at liberalized prices, were supplied last Thursday at 14:55 p.m. The supply schedule, which is a part of the contract, provides for updating each 168 hours. If the amounts negotiated for the week are not bought up, the buying enterprise should pay the remaining amount at a price of BGN 0.075/kWh. This is a punitive tariff, which means that the actual price under the contract is at least twice as low. Source: Sega (20.09.2004) |
| | Umicore Med, the Pirdop-based local unit of Belgian metals and materials group Umicore, became Bulgaria's first power consumer to sign a direct electricity purchase contract last week after clinching a deal with the Kozloduy nuclear power plant (NPP), energy minister Milko Kovachev said. The contract, which expires at the end of 2004 but is likely to be extended, further the liberalisation of Bulgaria's power market (estimated at 170 mln euro in 2004), the official said. The concrete parameters of the deal were withheld due to a confidentiality policy but NPP executive director Yordan Kostadinov said the tariff at which the plant will be selling electricity to Umicore is higher Umicore, whose 2003 power intake was 291gWh, was one of the 15 local power guzzlers with annual consumption exceeding 100gWh who made the list of consumers eligible for direct energy supply deals. Local smelter Asarel Medet and steel company Stomana Industry are also pursuing direct power purchases deals with Kozloduy. In June, Bulgaria's power industry regulator assigned NPP Kozloduy a 200MW quota which it is allowed to sell to eligible customers at negotiable prices. Bulgaria intends to open to competition up to 60% of its energy market by 2007 and to grant household customers the choice of power supplier while eligible industrial consumers will be allowed to import electricity. The National Electricity Transmission Company has already registered the Maritsa Iztok mining company, Asarel Medet and Stomana Industry as the next industrial consumers that will promptly complete the negotiations for direct power supply deals with the Varna, Bobov Dol, Rousse and Maritsa Iztok 2 thermal power plants. Source: Dnevnik (20.09.2004) |
| | Bulgarias minister of energy and energy resources opened the tenth session of the Power Engineering working group with the Bulgarian-German Cooperation Council, which is currently held in Berlin, and enjoys the interest of major German energy companies, such as Siemens, Framatom, ABB, Alstom, etc. Minister Kovachev is accompanied by representatives of the energy ministry, the energy efficiency agency, as well as by the executive directors of the National Electricity Transmission Company (NEC) Mr. Vasil Anastasov, Bulgargas Mr. Kiril Gegov, Maritza Iztok mines Mr. Shteryo Shterev, TPP Varna Mr. Kamen Boshnakov. Source: BTA (26.10.2004) |
| | Bulgarias National Electricity Transmission Company (NEC) has sold abroad electricity for over EUR 200 mln y/d, minister of energy and energy resources Mr. Milko Kovachev announced. The company has signed contracts for sale of another 6 bln kWh in 2005. Turkey is not among the export destinations. Bulgaria is exporting electricity to Greece, Serbia, Macedonia, Albania, and Italy. Source: Sega (02.11.2004) |
| | Top 50 of the most loyal employers with a staff from 100 to 250 people insuring a total of 9580 people, and with an average insurance income of BGN 608 for the first nine months of 2004:
1. Mines Maritsa-Iztok - Radnevo
2. Bulgartabac Holding - Sofia
3. Commercial Bank Unionbank JSC - Sofia
4. Kronospan Bulgaria - Bourgas
15. Delta Bulgaria - Sofia
25. Datecs, Sofia
26. Transimpex - Sofia
31. Toplofikacia - Sliven
33. Curtis-Balkan SPLTD - Sofia
34. Electrorazpredelenie - Gorna Oryahovitza, Silistra branch
36. Intersnack Bulgaria SPLTD - Sofia
39. Kremikovtzi Trade SPLTD - Sofia
49. Melexis Bulgaria - Sofia Source: Capital market (08.11.2004) |
| | The National Social Security Institute (NOI) published a list of Bulgaria's 50 "most correct employers with a staff of over 250 people for the first nine months of 2004, providing work for a total of 98 555 people with an average social security income of BGN 514:
1. Nuclear Power Plant Kozloduy SPJSC - Kozloduy
2. Lukoil-Neftochim JSC - Bourgas
3. Mines Maritsa-Iztok SPJSC - Branch Troyanovo-North Pit, village of Kovachevo
9. Elatsite-Med JSC - village of Mirkovo
14. Thermo-electric power station Maritsa-iztok-2 SPJSC - village of Kovachevo
18. Port Varna
22. Pirintex Production - Gotze Delchev
24.SKGT Electrotransport, Sofia
25. Solvay Sodi - Devnya
36. Water Supply and Sewerage, Varna
39. Remotex SPJSC - Radnevo
44. Arkus - Lyaskovetz Source: Capital market (08.11.2004) |
| | Mines Maritza-Iztok reported BGN 200 mln sales revenues this year. Total revenues hit BGN 212 mln, which represents a BGN 876 000 increase y/y. So far, the company has paid taxes in the amount of BGN 52 097 000, and is planning to distribute BGN 10 713 as dividends. Source: Sega (22.11.2004) |
| | The Bulgarian energy sector needs EUR 6.6 billion investments until 2007, calculations of the energy ministry show. The funding is needed for reconstruction, expansion of existing capacities and construction of new ones. As much as EUR 4.14 billion of the total amount will be used for reconstruction, modernisation and rehabilitation and for expansion of the National Electric Company's transit network. Another EUR 2 billion will be invested in boosting Bulgargas's gas transit network and in surveys needed for the Nabucco project for transit of Caspian gas via Bulgaria. Some EUR 331 million will be alloted for rehabilitation of the heating network and construction of combined capacities for heating and electricity. In coal mining, as much as EUR 125 million in needed for the upgrade of the Maritsa Iztok Mines alone. Source: Pari (01.12.2004) |
| | Mines Maritsa Iztok bought 1400 decares of land for the discovery of new coal layers during the year for the companys three mines, the director Mr. Shterio Shterev announced. The expropriating procedures are related with a number of problems. After the property status change from private into state one, independent experts estimate the lands, and the company buys them at a market price. Source: Sega (03.12.2004) |
| | Stara Zagora District Court registered the following change for Mines Maritsa Iztok SPJSC: Mr. Ivan Valchanov Markov was elected member of the board of directors. Source: State Gazette (07.12.2004) |
| | Assarel-Medet, the copper mining and processing company, non-ferrous smelter KCM, the Maritsa Iztok mining complex and copper smelter Elatsite Med have clinched direct electricity purchase deals with thermal power plant (TPP) Maritsa 3-Dimitrovgrad, TPP Maritsa Iztok 2 and nuclear power plant (NPP) Kozloduy, shows the register of the participants in the deregulated segment of Bulgaria's electricity market. The latest bout of deals brings to five the number of power consumers buying their electricity directly from the producers. The price parameters of the deals were not disclosed. Umicore Med, the Pirdop-based local unit of Belgian metals and materials group Umicore, became in mid-September Bulgaria's first power consumer to sign a direct electricity purchase contract after reaching a 291 gWh deal with NPP Kozloduy. The contract expires at the end of 2004 but is likely to be extended. Each of the five eligible power guzzlers has an annual consumption exceeding 100 gWh and no unpaid electricity bills. The Maritsa Iztok mines will purchase 515 gWh of electricity from Maritsa Iztok 2. Bulgaria's State Energy Regulatory Commission has specify the quantities of electricity that NPP Kozloduy, Maritsa 3-Dimitrovgrad, Maritsa Iztok 2 and the TPPs in Varna and Bobov Dol are allowed to sell to eligible consumers at negotiable prices. TPP Maritsa Iztok 3 is not allowed to sell on the deregulated segment, estimated at 150 mln euro in 2004, on account of its 15-year with national transmission system operator NETC which will take effect after Italy's Enel and Entergy of the U.S. complete the rehabilitation of the company. Another 70 local companies with a power intake of over 20 gWh will be granted the status of eligible consumers in 2005. Bulgaria's energy market will fully open to competition in 2007. Source: Dnevnik (10.12.2004) |
| | Bulgaria's Maritsa Iztok Mines is planning BGN 210 million investment in the next two years. As much as BGN 160 million will be own funding, the remainder will be taken as credit, executive director Shteryo Shterev said. Next year investment will amount to some BGN 80 million, twice as much as this year's. However, the size will depend to a large extent on the construction of a replacing capacity, he added. Source: Pari (13.12.2004) |
| | The letter of the US company AES in support of the project for the building of a new 670 mW capacity in TPP Maritza Iztok 1 was not adopted by the government during its last session, government sources announced. The US company was asked to present the letter to the banks which will finance the project, which has been postponed for five years for different reasons. Minister decided to return the document to the energy ministry, because it was written in the form of a contract. The letter also included an arbitrage clause, according to which the investor was allowed to settle arguments with the Bulgarian party abroad. Source: Dnevnik (28.12.2004) |
| | State Energy Regulation Commission (SERC) fixed the quotas of electricity local plants will be allowed to negotiate directly with big-scale consumers in 2005 by decision date December 20 2004, thus settling the argument between the energy ministry and the privatization agency. The institutions were not able to reach a common stand on the proposals, made by the consultant in the privatization of the thermal power plants, to sign 10-year contracts with the National Electricity Distribution Company (NEC) for buy up of the electricity produced in the plants in Rousse, Varna and Bobovdol. Ministry of energy and energy resources stated this would block the liberalization of the market and suggested the term of the contracts should be 2.5 years. Following SERCs decision, TPP Varna will be able to release freely 574 mln kWh of electricity more than NPP Kozloduy, which is allowed to release 500 mln kWh. TPP Bobov dol has the right to sell 258 mln kWh. One of the units of TPP-Rousse will be able to release 42 mln kWh. The rest of the produced electricity will have to be sold to NEC at prices, determined by SERC no December 22. TPP Varna and TPP Rousse so far sold to NEC at price of respectively BGN 47.78 and BGN 49.28/mWh. As of January 1 2005, they will sell at respectively BGN 42.39 and BGN 46.64. The prices are VAT not included. The price for TPP Bobov dol will be changed from BGN 48.56 to BGN 48.54/mWh. In 2004, only 9 per cent of the Bulgarian energy market war liberalized., this year 40 per cent of it will have to be liberalized, and in 2007 the liberalization process should be completed. The limit of annual consumption for clients, who can choose their electricity producer themselves, will drop from the current 40 to 23 gWh annually from the middle of 2005 on. Big buildings will also be able to choose their electricity supplier. Currently, 10 enterprises have this right. They are mines Maritza Iztok, Stomana Industry, KCM Plovdiv, Asarel-Medet, Umicore Med, Devnya Cement, LUKoil, Agropolychim, and Neochim. Source: Sega (03.01.2005) |
| | The Cabinet approved a letter of support for the construction of a substitute capacity at the site of the Thermal Power Plant Maritsa-East 1. The project will be financed and fulfilled by the world energy company AES Corporation. The state assumed with the letter commitments that do not represent a state guarantee. The new capacity at the site of the TPP Maritsa-East 1 will be 670 MW and will use lignite from Mines Maritsa Iztok. Source: Standart (28.01.2005) |
| | Yesterday, Bulgarias government approved a letter of support of the project for the building of a 670 mW replacing capacity on the platform of TPP Maritza Iztok 1, sent by US-registered AES Corporation. Through the letter supporting the USD 1.2 bln project, the state assumes obligations, not representing state guarantee. They include: undertaking measures, providing observing project agreements, as well as conditions, according to which the parties in this agreement should repay their debts in case of merger, restructuring and privatization. Source: Monitor (28.01.2005) |
| | Coal froze. Some 3 000 miners of the Razkrivka section of the three Maritza-East mines will go on compulsory holiday as of tomorrow February 1. We will stop working until March 6. Besides the bed weather conditions now, there is a great advance in the work there. It was accumulated by the reduced coal mining in January, the deputy head of Mines Maritsa Iztok (East) Mr. Georgi Georgiev announced. The mines have produced 700 000 tons of lignite coals less than the month schedule. Source: Standart (31.01.2005) |
| | 3,000 miners from Mines Maritsa Iztok are going on one-month pay leave from February 1, the company announced. The reason is the lower results of the state-owned company in the first month of the year. Source: Sega (01.02.2005) |
| | A working group headed by Bulgarian deputy energy minister Angel Minev is collecting confidential information about the condition of two state-owned companies: Maritsa Iztok Mines and Maritsa Iztok 2 thermal power plant (TPP). The information will be used to sell the companies to Germany's private RWE-Power, which is interested in their privatisation, Yordan Dimov, MP of the left-wing Coalition for Bulgaria and former employee of the Maritsa Iztok complex, said in Stara Zagora. The directors of the TPP and the mine are busy filling in bulky questionnaires, giving answers to questions containing classified information. Their answers will be summarised and handed to the German company after February 3, Dimov said. The TPP is on the prohibitive list for privatisation and cannot be sold in the next five years, before it is equipped with desulphurising facilities and is upgraded under a Japanese loan agreement, he added. Due to suspicions about under-the-table privatisation Yordan Dimov and Stefan Maznev, an MP of the United Democratic Forces, are preparing an inquiry to energy minister Kovachev. The two claim that certain circles in the ministry are working towards the financial ruin of the two state-owned enterprises. I will not be surprised if a legal amendment is made by June 1, putting Maritsa Iztok 2 on the table for divestiture, Maznev said. RWE Power AG has a joint venture with Maritsa Iztok Mines to prepare a project for development and modernisation of the mines. This is the reason why it is studying the possibilities for strategic partnership with Bulgarian power producers, the energy ministry replied. A RWE team has been in Bulgaria since the beginning of this year to carry out its own analysis of the condition and viability of the Maritsa Iztok complex. Source: Pari (01.02.2005) |
| | NSSI announced the top 20 most loyal employers with a personnel of 100 to 250 people for 2004, insuring a total of 10 046 men with an average insuring income of BGN 739.
The company is included in the list. Source: Other (08.02.2005) |
| | NSSI announced the top 20 most loyal employers with a personnel of over 1000 people for 2004, insuring a total of 104 959 men with an average insuring income of BGN 545:
The company is included in the list. Source: Other (08.02.2005) |
| | BTC will insure 39 000 its employees in the Zakrila Bulgarian Health Insurance Company. Zakrila is local biggest company for voluntary health insurance, as National Electricity Distribution Company, Nuclear Power Plant Kozloduy, the Electricity Distribution Companies in Stara Zagora and Gorna Oryahovitsa, Mines Maritsa Iztok, and Mobiltel are among its clients. Source: Trud (15.02.2005) |
| | Local labour unions are against the privatization of the Maritza Iztok mines. In a protest declaration by the KNSB and Podkrepa unions addressed to the head of the energy commission in Parliament Mr. Veselin Bliznakov, they claim they would fight to preserve the state ownership in the mines. They fear otherwise the privatization would be implemented in the dark. Source: 24 chasa (24.02.2005) |
| | Last week Minister of Energy Mr. Milko Kovachev granted to the US company AES the letter stating the governments support to the new heat-power plant at the ground of TPP Maritza-iztok 1. The document was adopted at the session of the Council of Ministers held on January 27. It does not provide state guarantee, nor includes financial liabilities to the government. It aims at confirming the Governments engagement to support the investment and to establish conditions for setting the already confirmed contracts. For example the US company is guaranteed that its agreement with Mines Maritsa Iztok for coals supply will work even if eventual change in the currently state-owned company occurs. Source: Construction City (01.03.2005) |
| | A request for granting a coal mining concession to Bulgaria's Maritsa Iztok Mines will be submitted before the end of the current government's term, energy minister Miroslav Sevlievski told journalists. The company is part of a Bulgarian-German venture, Maritsa Iztok Mining Company, where it holds 33.33%. Its partner, RWE Power, is owner of 66.67%. The contract establishing the joint venture was signed in 1998. Ever since local energy specialists have warned that the German company wants the concession to be given to the venture, not to the Bulgarian mines. If the concession is granted to the Bulgarian-German company, the Germans will monopolise coal mining in the complex and impose tougher conditions for purchase of coal by the local thermal power plants. Earlier this year the then energy minister, Milko Kovachev, told the PARI daily that the concession would be given to the mines. Moreover, talks are under way to change RWE's stake in the venture. Source: Pari (25.03.2005) |
| | Bulgaria's National Electricity Distribution Company (NEC) is in negotiations to buy 100 ha of land from Brikel of Galabovo. The plot will be used for storage of coal for the future power capacity at Maritsa Iztok 1. The project will be carried out by US AES. The land was sold about a year ago to the new owner of Bulgaria's only briquette maker. The privatisation contract does not oblige the buyer to sell the plot. According to the Privatisation Agency, however, the contract contains a clause binding Brikel to give right to construction to AES. In an interview for the PARI daily Brikel CEO Kancho Filipov recently said that the company planned to sell the land to NEK, which in turn will grant the right to construction. Our contract for sale of electricity to NEK includes a clause that guarantees the provision of land for the new capacity, project director Matthew Bartley said after meeting Stara Zagora regional governor Maria Neykova. AES's project envisages the construction of two power units with a total capacity of 670 mW. The investment will amount to EUR 1.042 billion. The project has to be completed by the end of 2008, its launch is expected about June 15, 2005. France's Alstom Power has been selected as chief contractor. It will choose the producers and suppliers of the main equipment needed. Subcontractor for the construction and installation works is the Bulgarian subsidiary of Turkey's Gama Holding, Gama Bulgaria. Its contract is said to amount to EUR 80 million. Bulgarian companies will receive about BGN 200 million of the whole value of the project, said Bartley. In his words, the project will employ more than 2,500 people, 200 specialists will service the plant. The Bulgarian government recently approved a letter of support for the project, in line with the Investment Encouragement Act. The letter guarantees that after the privatisation of Maritsa Iztok Mines, the new owner will continue to supply coal to Maritsa Iztok 1 thermal power plant. Source: Pari (31.03.2005) |
| | Mines Maritsa Iztok, the concrete making plant Vulkan and the company Ilchevi were given Golden Rose for the greatest amount of taxes paid in Plovdiv. The companies participated in the competition Taxpayer of the Year. The director regional tax directorate Mr. Petko Angelov granted the awards. The nominated companies were 18, as Asarel-Medet, Vinprom Peshtera, TPP Maritsa 3, Kurdjali-BT, and Smolian BT were among them. Source: Sega (28.04.2005) |
| | For the first time this year not only a tax payer of the year will be nanounced but also an insurer of the year. The competition is organized by The General Tax Directorate and the National Social Security Institute. Winners will be announced on Wednesday. And the nominated are:
Tax payer- legal person
- Water Supply and Sewerage - Vratza LTD - Vratza
- Peshtostroy SPLTD
- Gips JSC
- Port Complex Rousse SPJSC - Rousse
- Balkani-LK SPLTD - Bourgas
Insurer- legal person
- Berg Montana Fittings JSC - Montana
- Albena JSC - Albena
- Mines Maritsa Iztok SPJSC - Radnevo
- Rousse Shipyard JSC - Rousse
- Hydraulic elements and systems JSC
Large Taxpayer
- Blagoevgrad BT JSC - Blagoevgrad
- Lukoil-Neftochim JSC - Bourgas
- Bulgarian Telecommunication Company JSC - Sofia
- Nuclear Power Plant Kozloduy SPJSC - Kozloduy
- Vinprom - Peshtera JSC - Plovdiv
Large Insurer
- Air Transport Management
- Lukoil-Neftochim JSC - Bourgas
- Steamboat Bulgarian Sea Navy
- Stomana - Industry JSC - Pernik
- sarel Medet JSC Source: Pari (09.05.2005) |
| | The National Social Security Institute announced the list of the first quarter of 2005 top 50 most loyal employers with a personnel of 250 to 500 people, insuring a total of 20,095 people with an average insurance income of BGN 614.
The company is included in the list.
7 Information services JSC - Sofia Source: Other (09.05.2005) |
| | The National Social Security Institute announced the 50 most loyal employers for the first quarter of 2005 with personnel of over 1000 people, insuring totally 106 811 people with an average insurance income of BGN 561.
The company is included in the list. Source: Other (09.05.2005) |
| | For a second year Lukoil Neftochim of Bourgas has been named as the biggest taxpayer in Bulgaria and has received the prize in the category of the big. Lukoil provides one-quarter of the total tax revenue and 9% of the gross domestic product. The winners in the competition for taxpayer and social-security payer in Bulgaria for 2005 were announced last night. For the first time the competition is organised by the National Revenue Agency, the Chief Tax Directorate and the National Social Security Institute (NSSI) with the media support of the PARI daily and web portal dir.bg. The NSSI will give electronic signatures to all nominated social-security payers. They will also receive special VIP service. Lawyer Todor Batkov is the biggest taxpayer among natural persons in Bulgaria. For the first time this year awards are given to individuals, as well as to companies. Winner in the category of legal persons is Balkani LK, which deals with repair of electrical equipment under modern technologies. The biggest social-security payer for 2005 is Stomana Industry, the Pernik-based steel producer. In the category of legal persons, winner is Maritsa Iztok Mines. The biggest individual social-security payer is Georgi Cholakov from Sliven. Source: Pari (12.05.2005) |
| | The renown Bulgarian lawyer Todor Batkov and the Bourgas refinery Lukoil Neftochim won the awards Biggest Tax Payer in Bulgaria. The competition was organized by the Chief Tax Directorate. The ceremony, which was held in Sofias Sheraton hotel, was attended by finance minister Milen Velchev and the head of the Tax administration Mr. Nikolay Popov, who officially handed the awards Lukoil Neftochim won the prize for the second year in a row. Bourgas-based company Balkani-LK was also given a prize for Loyal Tax Payer Legal Entity. For the first time this year, Bulgarias three biggest social securers were awarded. These are Stomana Industry, Mines Maritza Iztok, branch Mine Troyanovo north, and the Sliven resident Mr. Georgi Zlatev, who is the person who paid the highest social security contributions last year. Source: 24 chasa (12.05.2005) |
| | Ministry of energy said a new letter supporting the project for the building of a replacing capacity on the platform of TPP Maritza Iztok 1 was being prepared and was due to be submitted in the Council of Ministers by the end of June. The new letter would include a paragraph, guaranteeing the origin of the bank capitals. The due diligence by the bank creditors is still ongoing. The initially announced date of the launching of the project (June 15) most probably will not be observed. The chief executor of the 680 MW replacing capacity is Alstom Pawer. The building works are executed by the Turkish company Gama Bulgaria Ltd. Source: Pari (01.06.2005) |
| | Stomana Industry, the Pernik-based steel mill, chemical plant Polomeri AD and EFT Bulgaria, recently licensed to operate as electricity trader on the Bulgarian power market, have been given the go-ahead to buy electricity directly from power producers, said Miroslav Dyankov from national power grid operator NETC. The three companies have signed contracts with NETC and have been duly registered by the operator. EFT Bulgaria will resell electricity supplies to eligible local consumers and broker power exports abroad. After NETC's monopoly expires, EFT Bulgaria will be able to pursue direct export transactions. Copper mining and processing company Assarel-Medet, non-ferrous smelter KCM, the Maritsa Iztok mining complex, fertiliser plants Agropolychim and Neochim, oil refinery LUKoil Neftochim, cement mill Devnya Ciment and copper smelters Umicore Med and Elatsite Med are currently the consumers eligible to engage on the deregulated segment of the local power market. They all have annual energy intake exceeding 100gWh - a bar that will be lowered to 20gWh from July, and pay a transmission charge to NETC for the electricity they buy directly from the producers. The rate of liberalisation of Bulgaria's power market is lagging earlier estimates. Only 11% have so far been opened to competition, missing the target of 18.5%, said Konstantin Shushulov, chairman of the State Energy and Water Regulatory Commission. The regulator designates to each power producer an annual quota of electricity that can be sold on the deregulated segment. The producer is free to negotiate the price of delivery directly with the buyer. Nuclear power plant Kozloduy and thermal power plant (TOO) Maritsa 3-Dimitrovgrad have requested that their annual quotas are raised while the TPPs in Bobov Dol and Rousse have been struggling to sell theirs. Source: Dnevnik (10.06.2005) |
| | Mines Maritsa East of Radnevo reported a loss of BGN 30 million for the first five months of the year, company's CEO, Shteryo Shterev said. The reason is decreased consumption of coal in the thermal power plants. The company produced 22.295 million tonnes of coal last year, down by 1.0 million as compared to 2003. Maritsa East of Radnevo showed a net profit of BGN 3.9 million for 2004, compared to BGN 19 million for 2003. Source: Pari (14.06.2005) |
| | The management of the state-owned company Thermo-electric power plant Bobov dol SPJSC will be obliged to conclude a 5-year contract for buying up the coals produced by the mines the TPP works with. This became clear after thew meeting of the local mines and TPPs managers, held in the Ministry of Energy and Energy Resource. The contract will be signed before the TPP Bobov dold eventual privatization. The contract will stop the plans of the future buyer the Italian Enel or the Greek PPC, for replacing the plants fuel from coal to gas. The Government also decided that TPP Maritsa-iztok-2 should pay annually at least 9 mln tonnes of coals to Mines Maritsa Iztok, no matter if it uses them or not. Source: Sega (24.06.2005) |
| | Due to heavy rains, work in Mines Maritsa Iztok SPJSC Radnevo has been suspended. Gradual system loading has begun at noon yesterday, vice CEO of Mines Maritsa Iztok- engineer Georgi Georgiev said. In the afternoon of the 4 of July, 9 new trains were set on their way to Thermo-electric power station Maritsa-iztok-2 SPJSC ; no land sliding was reported. Source: Pari (05.07.2005) |
| | A new system for early notification in case of excessive gas emissions of SO2, is being developed at Maritsa-East. The system will start operating not later than October, said Mrs Penka Natcheva , director of the Regional Inspection for the Environment and the Water- Stara Zagora. The system is part of the requirements needed to be fulfilled for issuing a permit to the complex. There will be no fine imposed on the thermo-electric power plants for the recent excessive gas emissions, as no irregularities were established. The municipality council, has requested a more strict control on Maritsa-East and guarantees that there are no dangerous experiments performed on the Zmeevo firing ground. Source: Pari (12.07.2005) |
| | The 2005s first half top 50 most law-abiding employers with a personnel of over 1000 people, insuring a total of 106,852 employees with an average insurance income of BGN 592.
The company is included in the list.
1. Nuclear Power Plant Kozloduy SPJSC - Kozloduy
9 Ideal Standard Bulgaria JSC - Sevlievo
13 Bulgarian Telecommunication Company JSC - Sofia
26 Asarel Medet JSC - Panagyurishte Source: Other (08.08.2005) |
| | NEC gradually losing big consumers
The National Electricity Transmission Company (NEC) is gradually losing a part of its major consumers due to the liberalization of local energy market. This is seen from the results published in the companys report for the first half of 2004. This trend will get even stronger over the next couple of years, energy experts forecast. Currently, direct supplies to producers of electricity, without the mediation of NEC, have been agreed by Agropolychim, Umicore, Assarel Medet, Polimeri, Stomana Industry, Devnya Cement, and Mines Maritza Iztok. At least 4 other major enterprises are expected to sign direct contracts with electricity producers by the end of this year. Besides, a private electricity trader also showed up on the market the recently licensed CEZ Trade. All this will result in the reduction of NECs profit to BGN 40.5 mln in the first half of this year, versus BGN 56 mln in the same period of last year, Eng. Vasil Anastasov, CEO of the company, commented. The National Electricity Transmission Company (NEC) is gradually losing a part of its major consumers due to the liberalization of local energy market. This is seen from the results published in the companys report for the first half of 2004. This trend will get even stronger over the next couple of years, energy experts forecast. Currently, direct supplies to producers of electricity, without the mediation of NEC, have been agreed by Agropolychim, Umicore, Assarel Medet, Polimeri, Stomana Industry, Devnya Cement, and Mines Maritza Iztok. At least 4 other major enterprises are expected to sign direct contracts with electricity producers by the end of this year. Besides, a private electricity trader also showed up on the market the recently licensed CEZ Trade. All this will result in the reduction of NECs profit to BGN 40.5 mln in the first half of this year, versus BGN 56 mln in the same period of last year, Eng. Vasil Anastasov, CEO of the company, commented. Source: Monitor (10.08.2005) |
| | Mines Maritsa Iztok is to get a concession for coal mining in East Maritsa coal mining field for 35 years. The granting of concession to the state-owned company was decided at the beginning of July by the Council of Ministers. The field spreads on an area of 209,309 decares. According to the contract Mines Maritsa Iztok SPJSC will operate the field on its account and will make investments. In addition the company should re-estimate the reserves each year by the end of January. The company will have the capacity to extract over 30 mln t of coals annually. This years production program stipulates the production of 22 mln t. Source: Standart (11.08.2005) |
| | The directors' board of Bulgaria's Maritsa Iztok Mines approved the final parameters of the concession contract for coal mining in the Maritsa Iztok basin, deputy director Sabimir Stoyanov said. Within a few days the document will be signed by outgoing energy minister Miroslav Sevlievski and the mine's CEO, Shteryo Shterev. The decision to grant a coal mining concession was taken by the council of ministers on July 13, 2005. The term of the contract is 35 years and gives the company the right to mine coal from a 20,930 ha deposit. According to experts, if 20 to 25 million tonnes of coal are produced a year, the deposit will suffice for at least 50 years. The concessionaire commits to develop coal mining in the region and invest funds at its own expense. The company will also take actions to preserve the environment and recultivate the land. Source: Pari (11.08.2005) |
| | Mines Maritsa Iztok reported direct and indirect damages worth BGN 5 mln caused by the floods during the first half of the year. The main reason for the great loss is the decreased electricity production by the three TPPs in the energy complex Maritsa Iztok. The decline is due to the higher electricity production by HPPs aimed at using a part of the water. The state-owned company will try to compensate the losses by cutting material costs and reducing the number of activities assigned to external companies. Source: Monitor (15.08.2005) |
| | On a session held yesterday on the occasion of their official holiday, representatives of the National Mining Chamber insisted not to privatize Mines Maritza Iztok. Miners trade union organizations insisted again to privatize Mines Bobov Dol and Thermal Power Plant Bobov Dol in one stake. The branch organization thinks a national mining agency should be established, which should manage the branch. Source: Sega (19.08.2005) |
| | Assarel Medet Exports Ores Worth USD 600 mln
Ores and metals worth USD 600 mln will be exported in 2005, Mr. Lachezar Tzotzorkov, CEO of Assarel Medet and chair of Bulgarias Mining Chamber forecast. Yesterday, the companies operating in the branch celebrated their official holiday. In 2005, the branch expects to sell products forth over BGN 1.5 bln. Mines Bobov Dol to be privatized in one stake together with the thermal power plant Bobov Dol, the miners trade union organizations continue to insist. They, along with Maritza Iztok, are the only mines in Bulgaria which are still state property. Source: Standart (19.08.2005) |
| | Local Mining Industry Expects Production Output Worth BGN 1.5 bln
Bulgaria's mining industry will post sales of BGN 1.5 bln in 2005, up from BGN 1.3 bln in 2004, the Bulgarian Mining Chamber forecast on Thursday, August 18. 2005 exports are estimated at USD 600 mln versus USD 455.1 mln a year ago. The chamber counts 197 companies in Bulgaria's mining industry. The sector employs 30,335 workers, down 10,000 in the past 4 years. Source: Dnevnik (19.08.2005) |
| | Germanys RWE Power has not given up its intentions to compete for the privatization of Mines Maritza-Iztok and the thermal power plant Maritza-Iztok 2, the head of the projects department in REW Power Mr. Eberhard Bulling said. He visited Radnevo on the occasion of the Day of Miners. We have almost completed the project research of Mines Maritza Iztok, Mr. Bulling said. Three RWE specialists are arriving to study the extraction of coal in Bulgaria. However, we are facing some problems in the project research of TPP Maritza-Iztok 2, Mr. Eberhard Bulling admitted. Source: Pari (22.08.2005) |
| | The miners from Maritsa Iztok will ask for a compensation of at least one million tonne of coal by the end of the year, the executive director of the Bulgarian company, Shteryo Shterev, said. The miners will present their demand to the minister of economy and energy, Rumen Ovcharov, on Wednesday. Maritsa Iztok is 2 million tonnes behind its production schedule, because of the strongly reduced capacity of the thermal plants in the complex. Therefore Maritsa Iztok is currently in a considerably unfavourable financial situation. Its managers have been forced to drastically contract the company's investment plans. Maritsa Iztok is currently elaborating a crisis programme for annual production of 18 million tonnes. Source: Pari (24.08.2005) |
| | The rehabilitation of the second unit of Bulgaria's Maritsa Iztok 3 thermal power plant (TPP) is some 15 months behind schedule. This emerged during a visit of economy and energy minister Rumen Ovcharov to the complex. The problems arise from impaired relations among the project partners, he said in Stara Zagora, adding the dispute may have to be settled in court. Owner of 75% of Maritsa Iztok 3 is Italy's Enel. There are also problems at Maritsa Iztok 2, where Mitsui and the TPP owner in the person of the management are having controversies. The Japanese company, which has to rehabilitate the TPP's units one to four and install desulphurising facilities, has reserves about the chief consultant that was chosen earlier this year. However, minister Ovcharov was categorical that if a new procedure was organised nobody could say when the project would start. At the same time the refurbishment is to a great extent a means of solving the problem with the frequent pollution of Stara Zagora. Another issue in the complex is the reduced coal production. Instead of posting a BGN 10 million profit by now, Maritsa Iztok Mines of Radnevo have logged a BGN 1 million loss, due to poor coordination among the National Electric Company (NEK), the TPPs and the mines. NEK and Maritsa Iztok Mines will hold a meeting in Sofia by this week's end to seek a way out the deadlock, Ovcharov said after a talk with the management of Bulgaria's biggest coal mining company. More progress has been made on the project for construction of a replacing capacity at Maritsa Iztok 1, where AES of the USA will invest EUR 1.075 billion. The negotiations with the financing banks are expected to be finalised by October, construction can begin in early 2006, Ovcharov said. . Source: Pari (25.08.2005) |
| | Bulgaria's biggest open-cast mine, state-owned Maritsa Iztok Mines, has a new executive director. By order of economy and energy minister Rumen Ovcharov, Shteryo Shterev has been replaced by Ivan Markov, a former member of the board of directors and chairman of the Bulgarian mining association. Two new deputy directors have also been appointed: Vladimir Sotirov and Tencho Kayryakov. The board of directors will be chaired by Hristo Ovcharov, his deputy will be Krassimir Nikolov. Galya Tosheva and Dimitar Gerassimov remain members of the board. The new management will work to stabilise the company technologically and financially, Ivan Markov said. Due to the delay of the modernisation and rehabilitation of the Maritsa Iztok thermal power plants the mines will be working at reduced capacity in the next few years. Recently the mines' management said it had begun to prepare a crisis business plan for production of less than 18 million tonnes of coal a year, which would most probably entail staff downsizing. Source: Pari (19.09.2005) |
| | A detailed evaluation and analysis of the joint venture between mines Marisa-Iztok and German Concern RWE will be made, the Deputy Minister of Economy and Energy, Mr. Iordan Dimov announced yesterday. What has been done till now would be nothing without a clear project, he said. There is a big risk of loosing RWE as an investor in this situation. Mr. Dimov can not report the amount of the funds spent on preliminary researches and the companys costs till now. Source: Standart (29.09.2005) |
| | Competition Protection Commission (CPC) imposed a BGN 50 000 property sanction on PIC Doverie due to unfair client attraction practices. The procedure was launched following letter by the Financial Supervision Commission (FSC), redirecting signal sent by PIC Saglasie. PIC Doverie issued vouchers for free fuel aiming to attract workers and employees of Mines Maritza Iztok SP JSC, currently insured by other companies. According to CPC, this is an unfair method. Source: Pari (30.09.2005) |
| | US-based AES, which is building the replacing capacity in the region of Galabovo, is buying 7000 decares of land. An agreement has already been reached with Mines Maritza-Iztok SP JSC of Radnevo. Recently, the US company bought at a very high price the plot, where the future heating plant will be located from the private Brikel SP JSC of Galabovo. Source: Duma (14.10.2005) |
| | The new management of the biggest local coal producing plant Mines Maritsa Iztok - Radnevo, is preparing for the 3 difficult years ahead, the companys CEO, Mr. Ivan Markov, admitted. Due to expected over 15-month delay in the rehabilitation and modernization of TPP Mines Maritsa Iztok 3, as well as the expected delay of the repairworks in TPP Maritza Iztok 2, this year the miners will lag with about 2 mln t of production output, which will result in losses worth BGN 30 mln. Currently, an anti-crisis program is being implemented, which is aimed at making up for at least BGN 600 000 by end-December. Source: Pari (19.10.2005) |
| | Radnevo-based Mines Maritsa Iztok started negotiations without publishing an announcement under the Public Procurement Act for credit institution election, which could be able to grant Mines Maritsa Iztok a credit line amounting to BGN 8 mln. The funds are needed for urgent eco-project implementation. The company has invited three banks - BNP Paribas Bulgaria, DZI Bank and Corporate Commercial Bank. Mines Maritsa Iztok pointed as motivation for its procedure choice the long terms required for the organization of open or limited procedure or for procedure of negotiations with announcement. Source: Monitor (28.10.2005) |
| | The heat supply companies in Plovdiv, Varna, Shoumen and Pernik are to be sold off in the year to come, the privatization of the energy sector plan stipulates, presented by experts to members of the Parliaments commission on energy. Three HPPs are also included in the sale list Yakoruda, Hubchevo, and Lukovit. The mines and the plants in the Maritsa-iztok complex, as well as the NPP Kozloduy, were left in the list banning privatization. The future sale of TPP Bobov dol will be implemented in a poll with the mines. Source: Standart (03.11.2005) |
| | It is almost certain that Bulgaria's Maritsa Iztok Mines will have an output of 21,173,000 tonnes of coal for 2005, CEO Ivan Markov said. The company has already produced half of the 600,000 tonnes planned to be mined in order to make up for the delay and finish the year at a profit. The preparations for the autumn-winter season are nearing completion. The delay in the uncovering of the coal layers is expected to be compensated at the end of November, Maritsa Iztok management said. Source: Pari (14.11.2005) |
| | The National Social Security Institute's Top 50 of the most law-abiding employers with personnel of over 1000 employees, insuring a total of 112 403 people with average insurance income of BGN 599 during January-September 2005.
The company is included in the list:
1. Nuclear Power Plant Kozloduy SPJSC - Kozloduy
13 Bulgarian Telecommunication Company JSC - Sofia
29 Asarel Medet JSC - Panagyurishte
35. Ideal Standard Bulgaria JSC - Sevlievo Source: Other (24.11.2005) |
| | Privileged Consumers to Buy 2.429m mWh by End-June 2006
Privileged consumers will have bought 2.429 million mWh by end-June 2006, State Energy and Water Regulation Commission forecasts. The entities tat meet the legal requirements to be 'privileged consumers' in Bulgaria are only ten at present, the six independent power producers are struggling to gain some them for clients.
The large electricity producers may generate more than 14 billion mW by then. The largest is the country's nuclear power plant Kozloduy, followed by the thermal power plant Maritsa East. Source: Pari (20.12.2005) |
| | Bulgaria's Maritsa Iztok Mines expects a pre-tax profit of BGN 3 million for 2005, CEO Ivan Markov told the PARI daily. As much as 300,000 tonnes of coal will be mined by December 31, which will raise the total annual output to 21 million tonnes. In 2006 the company expects to produce at least 20.7 million tonnes and register a positive financial result. The investment programme amounts to BGN 64 million, including own and borrowed funds. Source: Pari (28.12.2005) |
| | A fine of BGN 200 000 was imposed to TPP Maritza-Iztok on repeatedly pollution over the town of Stara Zagora, the minister of environment, Mr. Djevdjet Chakarov announced yesterday. Agropolychim have to pay BGN 57 420 due to water pollution and the owners of Solvay-Sodi BGN 8717. From years, Maritza-iztok pays monthly fines because of environment pollution. Source: Sega (30.12.2005) |
| | Bulgarias Maritsa Iztok Mines will invest BGN 64.2 million in machines and equipment in 2006. As much as BGN 43 million will come from depreciation costs, the remainder will be provided as a bank credit, CEO Ivan Markov said. The country's biggest coal mining company expects to post BGN 3.6-4.0 million accounting profit for 2005. In the past four months of the year it managed to double daily production to 20.937 million tonnes. Compared with 2004, production last year declined by 1.3 million tonnes. This trend will persist until 2009, due to the delayed rehabilitation of the Maritsa Iztok 3 thermal power plant (TPP) and the repairs on the territory of the Maritsa Iztok 2 TPP, Markov explained. Source: Pari (16.01.2006) |
| | Mines Maritsa Iztok SPJSC - Radnevo forecast a drop in the coal output. The manager Mr. Ivan Markov reported that 230,000 tons of brown coal less than 2005 were set in the company's plan. Normalization of the production of the three mines of the company is expected not until 2009. Then the production will increase by over 50 per cent because the modernization of Thermo-electric power plant Maritsa-iztok-2 SPJSC and Maritsa-Iztok 3 Exploitation Company JSC is expected to be finished and the new production capacities of AES-3C Maritsa Iztok 1 Ltd to be started. Source: Standart (16.01.2006) |
| | Representatives of EADS are expected to arrive in Bulgaria within a few days to start work on the offset programme that is part of the army modernisation project. This emerged after a meeting of minister of energy and economy Rumen Ovcharov, who is on an official visit to Germany. A week ago the Bulgarian government signed a contract with EADS's division Eurocopter for supply of 18 helicopters to the total amount of EUR 358 million. As part of the deal, the aviation consortium committed to invest EUR 360 million in Bulgaria over the next ten years. RWE wants to build a power plant with a 400 to 600 mW capacity on the territory of Maritsa Iztok in Bulgaria, minister Ovcharov learned at a meeting with RWE's representatives. Commerzbank is ready to finance part of the construction of the Belene nuclear power plant. Source: Pari (19.01.2006) |
| | National Electricity Transmission Company most probably will restructure the company in Holding with subsidiaries for the transfer and trade activity. In the parent company will stay the debts. This is one of the variants, which was presented by part of the companys management during the meeting with the minister of economy and energy, Mr. Roumen Ovcharov and European Bank for Reconstruction and Developments representatives, at the end of last week. Source: Dnevnik (23.01.2006) |
| | The production of mineral ore during the past year exceeded BGN 1.5 bln, which is 13 per cent more than the value realized during 2004. This is said in information from the Bulgarian Mining Chamber. As main reasons for the increase are pointed the high prices of the metals on the foreign markets, the growing interest of the investors in the branch and the stable economic situation. The reasons for the negative results in the coal extraction are explained with few negative trends weak sales, shortening of the production, the processes of privatization and liquidation, and the lack of technical resources. Only 2 from 15 mines for coal are state-owned. These are the mines in Bobov dol and Maritza-iztok. Today the Bulgarian Mining Chamber will execute general meeting, on which will be accepted changes in the management because of the expiration of the mandate of the old management. Source: Dnevnik (09.02.2006) |
| | We will ask the energy commission to allow us higher electricity prices, said Mr. Atanas Dimitrov, the Director of Thermo-electric power plant Maritsa-iztok-2. The reason is that Mines Maritsa Iztok increased the price of brown coals. The biggest thermo-electric plant on the Balkans produces 6 billions kwh yearly. For the previous year the number is 6,4 billions kwh. The Director of Mines Maritsa Iztok said that it is true that they have asked 5 per cent increase of the price of one ton basic fuel. The Board of Managers has already signed a contract with Mines Maritsa Iztok-3 and is just waiting the agreement with Thermo-electric power plant Maritsa-iztok-2. Source: Standart (16.02.2006) |
| | Greek company PPC, which in 2005 was picked out as buyer of Thermal Power Plant (TPP) Bobov Dol, has declared before the Ministry of Economy and Energy its intention to acquire Mines Bobov Dol too. The Greek company wanted to use the mine as its main supplier. The decision for the mining company will be taken after the court passes its judgment on the privatization of the TPP. The Mining Chamber reported decrease in coal production last year on growth in production of electricity from hydroelectric power plants and the increase in fuel prices. The annual output is 23 mln tons, with 20 mln tons coming from Mines Maritsa Iztok. The company expects production and consumption to fall until 2008 because of the rehabilitation of the first and second units of TPP Maritsa Iztok 2 and the construction of new capacities by U.S. AES at the site of TPP Maritsa Iztok 1. Source: Dnevnik (21.02.2006) |
| | Mines Maritsa Iztok SPJSC looks for suppliers of working shoes and toilet soaps. The maximum value of the two orders amounts to about BGN 385 000. The company's requirement for the candidates is to have at least BGN 200 000 annual turnover for each of the last three years. The producer of the shoes supplied should have the capacity to make at least 25 000 pairs per year. The participants may buy the documents at the price of BGN 100 until March 22 and to put in the offer until March 30. The chosen supplier would have 4 months to carry out the order. With the second order Mines Maritsa Iztok wants over 382 000 toilet soaps. The participants should pay a guarantee of BGN 1200 and put in their offers until March 29. The supplier would have 3 months to fulfill the order. Source: Dnevnik (01.03.2006) |
| | Pair of producers seek to hike electricity prices over expensive coal
Citing a jump in coal prices, thermal power plants (TPPs) Maritsa Iztok 2 and Bobov Dol have demanded a tariff hike for the electricity they sell to the national power grid operator NETC, the State Energy and Water Regulatory Commission said on Monday, March 6. The 2 TPPs have submitted their requests with the regulator. A working group will come up with a decision within 3 months. There will be no revision of the tariff for the time being as it would affect end-consumer prices, the regulator commented. The new prices may be introduced in April for TPP Bobov Dol, which is undergoing privatisation, and in the summer for Maritsa Iztok 2. Approached for comment Vladimir Vladimirov, executive director of TPP Bobov Dol, would not quote the size of the requested increase. Experts estimated that the power generated by the TPP will go up by 10-12%. Maritsa Iztok 2 executive director Atanas Dmitrov refused to comment. The TPP said the price of coal extracted by the Maritsa Iztok mining company had gone up by 5% since the beginning of the year. Currently TPP Maritsa Iztok 2 sells power to the licensed electricity trader EFT Bulgaria and KCM S.A. (Combine for Non-ferrous Metals) in Plovdiv. The State Commission for Energy and Water Regulation fixed a quota of 850 million kWh that the power plant may sell on the free market by July this year. Last year the TPP was selling to the Maritsa Iztok mines, Polimeri Devnia, KCM Plovdiv, EFT Bulgaria, Stomana Industry and Agropolychim Devnia. The restraint of the companys participation on the market was prompted by the stopping of the plants first two units for rehabilitation by Japans Mitsui. In 2005 TPP Maritsa Iztok 2 produced 6.4 billion kWh of electricity or 94 percent of the plan. The company reported pretax profit of over BGN 20 million for 2005. Source: Dnevnik (07.03.2006) |
| | Bulgarian company ProWave OOD said the nation's first TETRA network will be operational until June. The first clients of the network are the Kozloduy nuclear power plant, the Sofia International Airport, the Varna airport and the electricity distribution companies operating in Sofia and the Sofia region, said ProWave executive director Krasimir Ganchev. The client base should reach 1,500 by end-June and 10,000 by the end of the year. ProWave plans to spend 30 mln euro on the development of the network in the next 3 years, said Ganchev. Some of the necessary financing will be solicited from banks, including the EBRD and 2 of the biggest banks operating in Bulgaria, and from 2 unnamed U.S. investment funds. EADS and Selex have so far been contracted to supply equipment for ProWave's TETRA network. The network currently covers Sofia and the Sofia region and Kozloduy, on the Danube, and should reach Stara Zagora, Plovdiv and the whole of North-eastern Bulgaria by the end of 2006. ProWave is in talks to plug into the network the Maritsa Iztok coal mining company. Other potential clients include the ministries of interior, defence and disaster and emergency response, the civil defence and national power grid operator NETC. The TETRA network will not compete with the cellular grid operators GloBul, MobilTel and vivatel but will seek to phase out the analogue radio networks. Source: Dnevnik (28.04.2006) |
| | Miners produce 11 million T of coal
A record amount of coal, 2 million tonnes, was produced in the three pits of Maritsa Iztok Mines in July. Since the beginning of the year the company has mined 11 million tonnes of coal, compared with an annual target of 20.7 million tonnes. As much as 45 million cu. m of earth was dug and transported in the first half of the year, the company's management said. On the eve of miners' holiday, August 18, Maritsa Iztok Mines workers established a civil association, St Ivan Rilski, to raise funds for the construction of an architectural and sculptural complex near Radnevo. Source: Pari (10.08.2006) |
| | The income of Mines Maritsa Iztok for the first half of the year is BGN 11 mln, reported the executive officer of the company Mr. Ivan Markov. The coal production from the beginning of the year is 46,67 mln tons or 4,5 mln tons more from the same period last year. Source: Monitor (14.08.2006) |
| | German utility company RWE is ready to invest EUR 700-800 mln in the construction of a new 600MW capacity in the Maritsa Iztok coal basin in Southern Bulgaria, said RWE board member Mathias Hartung. The investor has already communicated the proposal to the Bulgarian government. RWE is ready to invest both in the new power generation capacity and in the Maritsa Iztok mines as well, said Hartung. The Maritsa Iztok coal basin generates 30% of Bulgaria's power output. RWE has suggested to build the new capacity on the site of the Maritsa Iztok 2 thermal power plant (TPP) which currently has 8 units with a combined capacity of 1,460MW. The German company plans to sell the output from the new capacity on the local market. Bulgaria will retire units 3 and 4 of the Kozloduy nuclear power plant by the end of 2006. That capacity gap is expected to be filled by a new 670MW replacement capacity commissioned to U.S. company AES, by the upgrade of the Maritsa Iztok 2 and 3 TPPs and the construction of the Tsankov Kamak hydro power complex. RWE's offer competes with that of Italian utility company Enel which is seeking to build a new 600-700MW capacity on the site of Maritsa Iztok 3. The cost of two new 300MW reactors is seen at over 1 bln euro but that could be brought down to EUR 800-900 mln with the use of the existing infrastructure, said Enel. The review of the rival offers should take into account RWE's expertise and the company's desire to solve the social problems of the coal-dependent region, said Hartung. The Maritsa Iztok basin could be overwhelmed by so many projects for new power facilities, said energy minister Rumen Ovcharov. These proposals should be checked against the output capacity of the coal mines, said the government official. Source: Dnevnik (21.08.2006) |
| | Three Bulgarian companies are willing to build capacities for processing of the raw gypsum generated as a by-product at the Maritsa Iztok electricity complex, the local authorities told the Pari daily. Balkanstroy has already worked out a concrete project and has won an auction for 7.5 ha of agricultural land. The deal amounts to more than BGN 150,000 and is expected to be finalised by the end of September. Interest in gypsum production at Maritsa Iztok has been also shown by Rigips and Knauf Gips KG. Source: Pari (05.09.2006) |
| | Maritsa Iztok Mines' coal output since the beginning of 2006 reached a record high 14.08 million tonnes in the middle of September, Ivan Markov, executive director of the company, said. This year's target is set at 20.7 million tonnes. Maritsa Iztok Mines will have to produce 34.6 million tonnes of coal annually by 2009 in order to keep up with demand, estimates made by Bulgaria's Minproekt and ordered by Italy's ENEL show. The company will have to invest at least BGN 70 million annually in technological upgrade over the next 3-4 years in order to achieve this target, according to Markov. Source: Pari (19.09.2006) |
| | The Maritsa Iztok coal mining company will invest an additional 5.2 mln levs in substations and power lines by the end of 2006, said executive director Ivan Markov. The company's board of directors decided Friday that investment spending could exceed 70 mln levs. The mines will finance 70% of the spend and will borrow the remainder. Maritsa Iztok has so far outperformed y/y by 0.099 mln tons of coal and should end the year with an output of 20 mln tons. Source: Dnevnik (25.09.2006) |
| | France's Alstom and US AES signed yesterday a contract for the construction of a 670 mW replacing capacity at Maritsa-Iztok 1 thermal power plant (TPP) in Bulgaria. The two companies have reached an agreement that the bulk of the rehabilitation and upgrade works will be carried out by Alstom. The value of the project is estimated at over EUR 700 million. The Bulgarian government will not participate in the selection of subcontractors for the project as the contract was signed only by the two companies. Alstom's participation in the project will extend by 18 years the lifetime of the TPP and will improve considerably its efficiency. AES have also signed a 15-year contract with the National Electric Company (NEK) for the purchase of electricity from the TPP. The US company also has a 15-year coal supply contract with the Maritsa Iztok Mines. Source: Pari (26.09.2006) |
| | By the end of the year Maritsa Iztok Mines will have produced 20 million tons of coal. The company plans an investment programme at the total cost of 70 million levs (1euro = 1.95 levs). This year again representatives of the company took part in all the work commissions of EUROCOAL - the European Association for Coal and Lignite as Maritsa Iztok is a member of the association. These are three of the number of indices that define Maritsa - Iztok Mines as the European face of Bulgarian coal mining. The investment in the first seven months of the year is over 35 million levs that over-fulfills the initial business programme by 55%. The board of directors amended the investment plan for 2006 from 64.2 million levs to 69.4 million levs. Putting into operation the fourth most powerful rotor excavator in the world - Rs 4000, has been also an unquestionable success for the company. Source: Standart (03.10.2006) |
| | Bulgaria may merge into a holding structure national power grid operator NEK, gas distributor Bulgargaz, thermal power plant Maritsa Iztok 2, nuclear power plant Kozloduy and the Maritsa Iztok mines after the gas and electricity companies complete their corporate restructuring, said economy minister Rumen Ovcharov. Shares in NEK and Bulgargaz could then be floated on the local or international bourses. The energy ministry should be ready with the concept for the large-scale restructuring - which will have to be cleared by the creditors of the affected companies, within 3 months. If the full-scale consolidation is ultimately ruled out, the merger could involve only the electricity production, NEK and Bulgargaz, said Ovcharov. Four companies, including owners of electricity distribution utilities in Bulgaria, have shown interest in swapping shares in the mentioned energy firms, said the government official. The CEOs of Bulgargaz and NEK said the corporate restructuring of their companies will wrap by the end of 2006. Source: Dnevnik (09.10.2006) |
| | German utility company RWE, which is mulling the construction of a new 600MW capacity in the Maritsa Iztok coal basin in Southern Bulgaria, is viewing the project as one with the development of the Maritsa Iztok mines, said Holger Bitz, the project chief for Bulgaria., after a series of meeting of company reps at the Bulgarian energy ministry. The German company intends to invest some 1 bln euro in the development of the mines. The energy ministry said it will not be able to comment on RWEs plans before the countrys new energy strategy is ready. RWE is ready to finance on its own the new power capacity which is estimated to cost 900 mln euro, said Bitz. A site for the new power plant is yet to be picked. The German company said it will request a letter of government support for the project similar to the one granted for a 650MW capacity to AES of the U.S.. That investment is also based in the Maritsa Iztok complex. Italian utility Enel has also stated plans for the construction of a new power capacity in the Maritsa Iztok complex. Bitz confirmed that RWE was in talks on possible co-operation with the other investors in the coal basin. Source: Dnevnik (14.11.2006) |
| | The Maritsa Iztok mining company has applied to be issued a 35-year permit to operate as an electricity trader. At the moment, the mines buy electricity directly from the Kozloduy nuclear power plant and were one of the first local corporations to enter the deregulated segment of the Bulgarian power market. The mines have a 110kV network that connects to several industrial power consumers which do not have access to the infrastructure of national power grid operator NEK, said executive director Ivan Markov. On Friday, the local power regulator will review an application for a 10-year power trading permit submitted by Stadkraft South East Europe, a subsidiary of Stadkraft Europe which is in turn owned by Norway's Stadkraft. Bulgaria has so far licensed 15 power traders, including EFT Bulgaria, Energy Partners, PPC, CEZ Trade, E.ON Bulgaria Trading, Enemona Utilities and Transeuro Energy. Source: Dnevnik (15.11.2006) |
| | Bulgaria to integrate mines, power and gas utilities into holding structure
The Maritsa Iztok mines, thermal power stations Maritsa Iztok 1, 2 and 3 and the company that will design the future Belene nuclear power plant will form a unit within the holding structure of national power grid operator NEK. The restructuring is the first stage in a plan to consolidated power production presented Wednesday by Bulgarian energy minister Rumen Ovcharov. The consolidation process should get underway in 2007. Bulgartal, the telecom division of gas distributor Bulgargaz, and NEK's telecom operations will be integrated into the holding structure at the second stage of the project. The third stage will entail the consolidation of electricity production and transmission and gas transmission. The idea is to establish a separate company in charge of power and gas system management and transmission. The consolidation concept also envisages the creation of a financial outfit involving only the power stations which could be listed on the local or a foreign stock exchange. Bulgaria may list 5 per cent to 15 per cent on the Bulgarian bourse and add a further 10-15 per cent in 12-14 months; a second option is to offer 10 per cent to 30 per cent in the company to select investors in the U.S. and UK; a third option is to list 5-19 per cent on the Bulgarian bourse and 20-30 per cent abroad. Source: Dnevnik (16.11.2006) |
| | Germany RWE has expressed interest in setting up a new 640-MW power generating capacity at the site of the Maritsa Iztok 3 thermal power plant (TPP). If the project is implemented, RWE will cut its 67-percent stake in the mining company Maritsa Iztok Mines. The equity participation will be discussed at a general shareholders' meeting on November 17, as well as by the management and supervisory boards of the mining company. Italy's Enel also showed interest in building a new power plant at the site of Maritsa Iztok 3 recently. Source: Pari (16.11.2006) |
| | Maritsa Iztok Mines has achieved huge progress in the implementation of new technologies and in environmental preservation, the president of the European Association for Coal and Lignite (Euracoal), Nigel Yaxley, said. Bulgaria's biggest state-owned company in open-pit mining is a founding member of Euracoal and has representatives in the association's five working committees. Yaxley recommended that Bulgaria should boost the integration of energy producers with coal mining companies. Source: Pari (24.11.2006) |
| | Austria's EVN, which owns the regional electricity distribution utilities in Bulgarian cities Plovdiv and Stara Zagora, is interested in the acquisition of shares in the holding company that will be formed with the merger of the state-owned mines, power and gas utilities, said EVN board member Peter Layr. Bulgarian energy minister Rumen Ovcharov recently said equity from the new holding company could be swapped with power majors like E.ON, EVN or Enel. Two weeks ago, Ovcharov presented to the parliamentary energy policy committee the energy holding concept. The Maritsa Iztok mines, thermal power stations Maritsa Iztok 1, 2 and 3 and the company that will design the future Belene nuclear power plant will form a unit within the holding structure of national power grid operator NEK. Bulgartal, the telecom division of gas distributor Bulgargaz, and NEK's telecom operations will be integrated into the holding structure at the second stage of the project. The third stage will entail the spin-off of electricity production and the consolidation of power and gas transmission operators. During the fourth stage, a financial outfit will be created with that could be listed on the local or a foreign stock exchange. EVN, which is in talks to buy the Plovdiv district heating company, continues to be interested in the construction of a waste recycling plant in Bulgaria, said Layr. Source: Dnevnik (27.11.2006) |
| | Sandvik awarded major materials-handling contract in Bulgaria
Sandvik Mining and Construction has received an order for materials-handling system for an Alstom engineering project in Bulgaria, the Swedish company said on its corporate website. The order, valued at about EUR 44.3 mln, comprises a turnkey lignite and limestone handling system at the Maritsa Iztok 1 power station in Southeast Sofia, Bulgaria. The advanced system has a capacity exceeding 32,000 tons per day. The Sandvik delivery will include a train unloading station, stacker/reclaimers, belt conveyors, crushers and a limestone handling system. The coal-fired power plant is scheduled to start operations in 2009. Earlier this year, Sandvik completed the delivery of a materials-handling system for coal and iron ore for the port of Burgas in Bulgaria. The Maritsa Iztok 1 project is strategically important for Sandvik in establishing close cooperation pending Alstoms continued expansion plans in the power sector. French power and transport engineering group Alstom has won a contract worth more than EUR 700 mln with U.S. company AES Corp. that covers engineering, procurement, construction and in-house manufacturing of the main equipment for the Maritsa Iztok 1 lignite-fired power plant. Source: Dnevnik (11.12.2006) |
| | Bulgaria's InvestBulgaria Agency, the local investment promotion authority, Tuesday named 8 corporations and municipalities as the top investors of 2006. The investment tally of the recognised projects is BGN 1.2 bln. They will create 14,000 jobs. The year's top investment is the BGN 100 mln multi-purpose hospital project of Japan's Tokushukai. Second place went to mining company Mini Maritsa Iztok which earmarked BGN 70 mln for investment. Belgian semiconductor maker Melexis was cited for its EUR 30 mln project for a plant for automotive systems for the automotive industry. Another of the prizes went to Bulgarian company Gradus which this year opened the biggest poultry slaughterhouse in the Balkans. The other award-winners were Preciz Inter Holding, Optics, Prista Oil and the municipality of Blagoevgrad. Source: Dnevnik (13.12.2006) |
| | Prista Oil is the Bulgaria company, that has made most investments abroad during the last year, said from the Bulgarian investment agency. Other local company Gradus 1 LTD, was chosen for number 1 investor in the sphere of food industry. Owners of Gradus 1 are brothers Ivan and Luka Angelovi. The award in the sphere of metallurgy was taken by Precise inter holding, Ivanovo village, and in the high technologies OPTICS, Panagyurishte. Source: Monitor (13.12.2006) |
| | Maritsa-Iztok mines has produced a total of 21.4 mln. t. of coal for the year of 2006. The stated owned company has produced 700 hundreds tons of coal more than the planned 20.7 mln. t. This has been the largest yearly production of coal for the company for the last 15 years. The annual production plan has been accomplished on 20 december, which is 11 days earlier than scheduled. For the next year the state company has already sighed contracts for selling 21.35 mln. t. of coal. In a three year term the production is seen to reach 35 mln.t. This should execute the needs of the three existing old termoelectrical power plants in the whole complex and the emerging forth TPP. Source: Darik Radio (03.01.2007) |
| | 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) |
| | Natura 2000 may obstruct mining Investors worry they may be denied permits for development of new deposits
Nearly 400 mineral deposits may be included in the scope of Natura 2000. Concessions have been granted on another 43 deposits in the environmental network. Placing them under special protection as habitats of rare plants and animals worries investors, who have made substantial investments in exploration and development. Minister of environment Djevdet Chakarov has unofficially told the Bulgarian Chamber of Mining and Geology that mines and quarries would not be affected by the network. That, however, does not offer comfort to companies, since most of them have investment plans for other areas. Natura 2000 may foil their intentions to obtain permits for mining and processing of minerals there and cost them considerable amounts already invested in exploration. It is more than natural for an enterprise to develop the adjoining areas, because new deposits are very likely there and the necessary infrastructure has been built already, the CEO Of Asarel Medet and chamber chairman, Lachezar Tsotsorkov, said. It would be unwise to block the development of nearby mines. There should be no restrictions on areas targeted by investors before the start of Natura 2000, according to the enterprise. Actually, there is no clarity about the future of deposits covered by the environmental network. According to the draft, the whole area of the East Rhodope Mountains is included in Natura 2000. Most affected is the region of Ivaylovgrad, where all investment plans may be thwarted. Source: Pari (02.02.2007) |
| | 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) |
| | 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) |
| | Italy's Enel plans to invest some EUR 900 million in the setting up of a 700-MW thermal power plant (TPP) in Bulgaria. The facility will be located near the Maritsa Iztok-3 TPP, which is 73-percent owned by Enel. The coal reserves in the region amount to 1.163 billion tonnes, according to Minproekt and Totema Engineering experts. The deposits will be sufficient until 2060, provided the annually extracted amount stands at 35 million tonnes. A total of four companies have expressed interest in building the new TPP. Those include Germany's RWE Power, US AES and Czech CEZ, which will co-operate with Bulgaria's Brikel of Galabovo. Source: Pari (22.02.2007) |
| | Bulgaria's Maritsa Iztok 2 thermal power plant (TPP) will invest more than BGN 108 million in three equipment upgrade programmes in 2007, executive director Atanas Dimitrov said. Maritsa Iztok 2 posted BGN 11.2 million pre-tax profit and BGN 661 million revenue for 2006. The company also repaid the loan used for the setting up of desulphurising installations at units 7 and 8. Principal payments on the loan amounted to BGN 30-32 million annually. The TPP invested a total of BGN 75 million in equipment repair, upgrade and maintenance in 2006. Source: Pari (09.03.2007) |
| | Mining industry sales up 11% in 2006
Bulgaria's mining industry has been on the rise for the sixth consecutive year after the crisis preceding the privatisation period in the country. Mining industry sales in 2006 are expected to go up by 11% compared to the BGN 1.5 billion sales generated in 2005, preliminary data show. The upward trend is hardly any surprise provided that international metals prices continued to rise throughout 2006 and that large-scale infrastructure projects accompanied the construction boom in Bulgaria. The boost may also be put down to the improved management and investment activities of the mining companies. Mining companies' expenses on the acquisition of long-term tangible assets has nearly doubled since 2000 to BGN 300 million in 2006. The companies are catching up with the modernisation of the mining equipment, environment protection and labour safety conditions. Despite the strong development over the last few years, mining industry encounters certain problems as well. Coal production in 2006 has decreased by 5 million tonnes compared to 2002. The delayed privatisation and the dependency of coal producing companies on the condition of the thermal power plants put at stake the survival of many of the operating mines in the country. Source: Pari (13.03.2007) |
| | The Maritsa Iztok mining company is in position to increase coal output from 22-23 mln to 35 mln tons annually in 5 years if a new 600-700MW power generation capacity is built in the area, the management of the company says in a report prepared in connection with the upcoming selection of an investor for the new plant. The production increase would require an investment of 280 mln levs. If no additional capacity goes on stream, the investment in an output increase would make production unprofitable and coal prices uncompetitive and would quickly deplete the coal deposits. Coal production will rise to 28 mln tons in 2009 when U.S. company AES is due to bring on stream a new power generation capacity. The company is interested in the construction of a further plant unit as well. Source: Dnevnik (10.04.2007) |
| | 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) |
| | Bulgaria's Maritsa Iztok 2 thermal power plant (TPP) will propose to the State Commission for Energy and Water Regulation (SCEWR) that the price of its electricity be raised by up to 5% of its present value, Todor Mihaylov, executive director of the TPP said. The TPP's demands are based on the increase in the price of the coals purchased from the Maritsa Iztok Mines. Maritsa Iztok 2 will also try to make changes to its pollution prevention and control permit, even though the ministry of environment will hardly allow the TPP to continue operating without desulphurising installations. Japan's IHI, which has to set up the installations at the TPP has requested that the launch of the new desulphurising installations be postponed by nine months until October 2008. The TPP has demanded that IHI reorganises its operations and completes the project on schedule. Source: Pari (09.05.2007) |
| | 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) |
| | 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) |
| | 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) |
| | The method for determining the investor in the new thermal power plant at Maritsa Iztok will be approved by the Bulgarian government by this week's end, Maritsa Iztok Mines' CEO Ivan Markov told the Pari daily. According to him, the main criteria will be for environmentally friendly technology and the term for completion of the project and launch of the new capacity. Italy's Enel, whose subsidiary Enel Maritsa Iztok 3 was awarded a first-class investor certificate last week, is most prepared for the project. To a certain extent US AES and Brikel are also ready to participate in the procedure. A new mining and energy company between Germany's RW Power and Bulgaria's state-owned Maritsa Iztok Mines is still awaiting court registration and its chances to catch up with the other candidates are not very good. The future plant is expected to have two units with a total capacity of some 800 mW. The investment will range between EUR 850 and 950 million. The project has to be finalised in three to five years. Source: Pari (12.06.2007) |
| | Bulgaria's energy ministry will initiate a competitive procedure to select an investor for the construction of a 600MW power generation capacity in the Maritsa Iztok coal basin, Southern Bulgaria. The energy regulator said that 5 companies have notified their interest in the project. The government is expected to determine Thursday the selection criteria. Bulgarian electricity producer Brikel in a consortium with Czech utility CEZ, Italy's Enel, AES of the U.S. and Germany's RWE and E.ON have publicly indicated interested in the construction of a new power generation facility. Two weeks ago, 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 power capacity. But it is Enel that has one leg up on the competition. It has completed the feasibility study and is waiting on the environment impact assessment. Austria's EVN, which owns the regional power distribution companies in Plovdiv and Stara Zagora, is rather interested in power generation than ownership of the capacity and is ready to partner with other investors for the project, said Stefan Szyszkowitz, chairman of the EVN Bulgaria managing board. Source: Dnevnik (14.06.2007) |
| | 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) |
| | 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's Maritsa Iztok Mines reported record coal output of 10.140 million tonnes for the first half of 2007. The Radnevo-based company managed to overcome the delay in production and fulfil its plan. Until the end of the year Maritsa Iztok Mines has to produce 21.35 million t of coal, the executive director, Ivan Markov, said. The state-owned company is the biggest enterprise in the field of open-cast coal mining. The deposits amount to 2.148 billion t, which is enough to satisfy the needs of the local power plants for some 50 years. The company is currently implementing a quality management system according to the ISO 9001:2000 standard. Source: Pari (04.07.2007) |
| | Yielding to the demands of the trade unions for a 20 per cent pay rise would lead to a reduction in the workforce, Ivan Markov, executive director of the Maritsa Iztok mining company, said on Mon. The company official said no redundancy estimate could be given at this point. The mining company employs 7,200 worker with an average gross monthly pay of BGN 940, the highest in the local mining industry. The management of the mines said a total of 11.5 tons of coal have been extracted so far in 2007, setting a five-year record. Source: Dnevnik (17.07.2007) |
| | Bulgaria's Maritsa Iztok Mines coal output amounted to 12.427 million tonnes for the first half of 2007, executive director, Ivan Markov, said. Coal output at the Radnevo-based company amounted to a record high 2.2 million tonnes in July, which represents an increase of 297,000 tonnes compared to July 2006. The figure beats the company's production plan by 148%. The company also reported a record high output of 10.140 million tonnes for the first half of 2007. Source: Pari (09.08.2007) |
| | 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) |
| | More than BGN 91 million will be invested in Maritsa Iztok Mines' three open pits next year. Nearly BGN 15 million of the amount will be attracted from external sources, the remainder will be our own investment, the mining company's executive director, Ivan Markov, told the Pari daily. The BGN 8 million profit expected for 2007 will also be re-invested. The investment plans are in line with the pending increase in coal output from 23.1 million t in 2007 to 27.7 million in 2010, Markov went on to say. That will also help provide the necessary coal to the future thermal power plant near the town of Galabovo, where AES of the USA will invest more than USD 1.3 billion. A working group will present the criteria and requirements to potential investors in a fourth thermal power plant at Maritsa Iztok on Monday. According to tentative assessments, the project will cost between EUR 850 million and EUR 900 million. The future contractor will have to observe the stringent European requirements for reduced hazardous gas emissions. Potential investors include Enel, AES, CEZ, RWE and E.ON. Source: Pari (14.12.2007) |
| | Economists against energy holding
Economists stood against a merge of the state companies into an energy holding. This would trouble the competition and will affect negatively on the market, said in an analysis Petar Ganev of Market Economy Institute. The idea for an energy holding is from the time of Milko Kovachev management and is supported by ex-Minister Roumen Ovcharov and the current Minister Petar Dimitrov. The Ministry is proceding on the preparation of a holding that will unite Mines Maritsa Iztok SPJSC, Thermo-electric power plant Maritsa-iztok-2 SPJSC, Nuclear Power Plant Kozloduy SPJSC, National Electricity Company (NEK) SPJSC and Bulgargaz holding SPJSC. Source: Standart (07.01.2008) |
| | Maritza-Iztok emits 85% of greenhouse gases in Bulgaria: deputy minister
The European legislation has been enforced in Bulgaria horizontally since 2003. The whole Maritza-Iztok energy complex emits 85% of the greenhouse gases in Bulgaria, Deputy Minister of Environment and Water Atanas Kostadinov said in an interview with the Bulgarian NOVA television. There is no project about sulfur dioxide installations and no tender procedures have been held. If no effective measures are undertaken and if EU Directive 2001 and Regulation 10 are not implemented, Bulgaria will be imposed sanctions, he added. Source: Agency Focus (15.01.2008) |
| | The state-owned energy companies should go public while the government should abandon its plans to consolidate all state-owned energy assets into a holding structure, representatives of the Bulgarian power industry demanded at a public discussion Monday. The government coalition decided this past weekend to move ahead with plans to merge Bulgargaz Holding, power grid operator NEK, the Kozloduy nuclear power plant, thermal power plant Maritsa Iztok 2 and mining company Maritsa Iztok. The new structure will further complicate the problems already afflicting the management of the companies and as a solution is tailored only to the needs of power generation, said expert Lyulin Radulov. The creation of the mega-holding would stunt the development of the market and would provide opportunities for cross-subsidising, said executives from non-ferrous company KCM. Source: Dnevnik (12.02.2008) |
| | Bulgaria's Business Community: Put Power Engineering on the Counter
Bulgaria must place its power-engineering on the counter if it wants to stabilize the state-owned enterprises in energy sector. This was the conclusion drawn yesterday at a roundtable discussion of the Bulgarian Industrial Association, under the topic The Bulgarian Electricity Market. According to representatives of the Bulgarian business community, the setting up of an energy holding would not solve the issues of the state-owned energy enterprises. It would rather deepen the crisis in the state-owned energy companies, which resulted from complicating their management hierarchy, experts said flat. "To revive the state-owned energy companies requires heavy investments," asserted Liulin Radulov, who is an energy expert. In his opinion, merging the state-owned Maritsa Iztok Mining, Bulgargaz Holding, National Electrical Company, Maritsa Iztok-2 Thermal Power Plant and Kozloduy Nuclear Power Plant into a single large holding would not settle their issues and magically change them into companies capable of withstanding fierce competition on the liberal market. "Therefore a decision has to be taken whether to denationalize them or draw in strategic foreign investors, well-known at the European energy market, who would pour money into them," Radulov pointed out. The example Radulov gave to bear out his argumentation was the privatization of the power distribution companies, which lead to their restructuring and the stabilization. Source: Standart (12.02.2008) |
| | The Council of Ministers decided to unite five power-supplying companies into Bulgarian Energy Holding. Mines Maritsa Iztok SPJSC, Thermo-electric power plant Maritsa-iztok-2 SPJSC, Nuclear Power Plant Kozloduy SPJSC, National Electricity Company (NEK) SPJSC and Bulgargaz holding SPJSC will became a part of the new company. The assets will be EUR 4 billion and the forecast year income EUR 1,8 billion. It will be one of the largest power-supplying companies in the region. The state will own 100% of the capital of the Bulgarian Energy Holding. Source: Darik Radio (14.02.2008) |
| | Bulgaria Launches Mega Energy Holding for Christmas
The new mega holding will foster the five state energy companies - Maritsa -Iztok Mines, Maritsa -Iztok 2 Thermal Plant, Kozloduy NPP, the National Electric Company and Bulgargaz. The Ministry of Energy and Economy will keep the majority share (between 51% and 75%) in the five companies and the minority shares (between 25% and 49%) will be transferred to the newly-established mother company. The restructuring will be realized in two stages. The BEH's assets will amount to four billion euro which means it will be one of the largest energy companies in the region. The company is planned to have an annual income of 1.8 billion euro. The state will hold 100% of the holding's capitals. Source: Standart (14.02.2008) |
| | R epresentatives of the business from Stara Zagora, Haskovo, Kardjali and Smolyan regions discussed in Stara Zagora the major energy projects in the country, as well as the investments in the sector and the opportunities provided by the European funds. The meeting was held as part of the presentation of Pari daily's Gepard magazine, which ranks the most dynamically developing companies in the four regions. The meeting was also attended by Yordan Dimov, deputy minister of economy and energy. Source: Pari (27.02.2008) |
| | The city of Stara Zagora has by far surpassed Sofia in terms of salaries. According to the estimates of jobtiger.bg, one of Bulgaria's largest employment websites, the average wage there is 894 levs (about 450 euro,) whereas in the capital the same is 108 levs less. The generosity of the local employers, however, by no means is explained by rising standards of living, neither does it result from improving business environment. Thermal Power Plant Maritsa-Iztok's regular emitting of toxic gases is the main reason why qualified hands leave Stara Zagora along with their families. "The only way to keep the population is to offer larger payment," local entrepreneurs admitted. Similarly, the average wage in Sofia District exceeds payment in the capital by 100 levs. "It is very difficult to find people to work for you in Pernik, Zlatitsa and Pirdop because the air polution caused exodus in the past several years," employers from these towns pointed out. Source: Standart (10.03.2008) |
| | Mines Maritsa Iztok SPJSC reported a record production of lignite brown coal for the first quarter of 2008 compared to the same period last year. From the beginning of the year until march 16, the mines have extracted 5.453 mln tons, which is 7 percent more than the planned quantity. The 2007 production also set a record 23.928 mln tons of brown coal, which is 2.578 mln tons more than planned. Mines Maritsa Iztok plans the extraction of 23.1 mln tons in 2008. On Friday the company will begin the extraction operations on the coal volumes, like the pits Troyanovo Sever and Troyanovo 1, which have been blocked until now. Source: Monitor (20.03.2008) |
| | Greece-based PPC, the company which could not manage to acquire Thermal Power Plant Bobov Dol wants to buy 800,000 to 1.2 mln tons of coal per year from Mines Maritsa Iztok. This was announced by the chief executive officer Ivan Markov after the ceremony for the start of operations at the pits Troyanovo Sever and Troyanovo 1, holding deposits of 200 mln tons. The deal is being prepared, added Markov and pointed out that the interest in Bulgarian coal is due to the higher quality than the quality of the coal extracted in Greece. Source: mediapool.bg (24.03.2008) |
| | Maritsa Iztok Mines to export coal to Greece
Greece's PPC is willing to buy coal from Bulgaria's Maritsa Iztok Mines, the company's executive director, Ivan Markov, said. The negotiations with the Greek company are at an early stage. A special operation was launched at the mines for utilising the coal layer between the Troyanovo 1 and Troyanovo North pits. That will allow the extraction of 175 million tonnes of low-ash coal. The total deposit exceeds 2.1 billion t, which is sufficient to cover Bulgaria's needs for the next 50 or 60 years. More than EUR 250 million has been invested in preparation of the operation. Production has to reach 33-35 million tonnes in the next few years. As much as 23.8 million t of coal is planned to be dug from the company's three open pits this year. The consultant on the selection of an investors in Maritsa Iztok's fourth thermal power plant will be clear by June, Markov went on to say. Interest in the project has been demonstrated by Enel, AES, RWE, CEZ, EVN and Bulgaria's Brikel. The construction of the new capacity is expected to begin by the end of 2009. Source: Pari (24.03.2008) |
| | Bids for job to advise creation of energy holding due Jun 10
Bulgaria has opened a procedure to select a consultant for the incorporation of an energy holding that will consolidate major state-owned power assets like the Maritsa Iztok mines, the Maritsa Iztok 2 thermal power plant, gas distributor Bulgargaz and the Kozloduy nuclear power plant. The task of the advisor will be to organise and implement the preparatory work, to register the holding and come up with guidelines for the consolidation of the company and for the improvement of the regulatory framework. The eight-month advisory contract will generate a remuneration of 800,000 levs without taxes. The procedure is open to local and otherwise outfits, tie-ins and individuals. The bids should be submitted by June 10. Deloitte Bulgaria was hired by the economy ministry to draw up the energy holding concept. The model for the restructuring of the companies that will be consolidated into the holding was okayed by the government two months ago. Deloitte estimates that the consolidated revenues of the new structure will add up to 1.78 bln euro with assets topping 4 bln euro. The consultant cautions that the lumping together of the earmarked companies will not automatically result in a higher credit rating for the umbrella structure. Source: Dnevnik (07.05.2008) |
| | Mines Maritsa Iztok report BGN 8.9 mln profit
Mines Maritsa Iztok finished the fiscal 2007 reporting a net profit of BGN 8.9 mln, said CEO Ivan Markov. Half of it was allocated as dividends. About BGN 100 mln are planned for corporate and local taxes. The principal of the company has allowed the price of a ton conditional fuel by 14.09% since April 1. This would allow further modernization of the mechanical equipment, said Markov. However, the BGN 90.6 mln investment program will be reduced and some of the planned reconstructions will be delayed for 2009. Source: Pari (10.05.2008) |
| | The Maritsa Iztok mining company has divided the candidates to build a new lignite-fired power capacity in the Maritsa Iztok coal basin into two groups: companies with their own site and companies that will be provided with a site, said a source close to the project. The first group is made up of Italy's Enel, AES of the U.S. and local company Brikel. Germany's RWE ad E.ON comprise the second group. Source: Dnevnik (19.05.2008) |
| | The Ministry of Economy and Energy (MEE) has imported in the Commission for Protection of Competition a notice of its intention to create an energy holding company, including five public companies - Bulgargaz, NEC, Mini Maritsa Iztok, TPP Maritsa Iztok-2 and NPP Kozlodui, announced from the Ministry on Thursday. The preliminary assessment for a possible monopoly is compulsory for merger or acquiring of companies. The submitted file for the creation of future megaholding is the second step in its structuring. Recently, MEE announced a procedure for assigning of public order for choosing a consultant in case of implementing the holding model. Source: mediapool.bg (23.05.2008) |
| | Mines Maritsa Iztok SPJSC Radnevo quarried nearly 9.5 mln tons of coal since the beginning of the year up to 28 May, which is over 650 tons more than the yield for the same period last year, experts from the company announced. The performed quarry is a record for the last 8 years. 1,282 mln tons of coal were obtained in the company only in May, which is 595 tons more than the same period of 2007 and it is the highest yield for the month since the year 2000 in the mines. By the end of 2008 Mines Maritsa Iztok SPJSC Radnevo plans to quarry 23.1 mln. tons of brown coals and to dig, transport and level 95 mln. cubic meters of land. Source: Monitor (30.05.2008) |
| | Three companies are offering their consultancy services for the implementation of a holding model for the restructuring and consolidation of the state energy companies NEC, Bulgargaz, NPP Kozloduy, TPP Maritsa-iztok-2 and Mines Maritsa Iztok SPJSC into a megaholding. This was reported by the Ministry of Economy and Energy a day after the deadline for submission of offers for participation in the contract expired. The candidates are Deloitte Bulgaria, which consulted the Ministry during the previous procedure for preparation of a concept for merger of the five state energy companies. Their participation was expected, given the fact that the government approved the principal scheme of the future energy holding. The other candidates are Bulbrokers Consulting and Euroaudit BX. Source: mediapool.bg (11.06.2008) |
| | Three consulting companies are in the running to advise the Bulgarian energy ministry on the model for the consolidation of state-owned power assets into a holding structure. The bids handed in by Bulbrokers Consulting, Deloitte Bulgaria and Euroodit BX were officially unsealed on Wednesday. The financial parameters of the offers will be announced on June 13. All state-owned power enterprises - national power grid operator NEK, Bulgargaz Holding, the Maritsa Iztok mines, Maritsa Iztok 2 power plant and the Kozloduy nuclear power plant, will be folded into the new holding structure, creating a concentration of assets valued at over 4 bln euro. The annual revenues of the new company are estimated at 1.8 bln euro. The main tasks that will be entrusted to the selected consultant will include making the necessary preparations for the registration of the holding, coming up with guidelines for the consolidation and transformation of the different assets and recommendations to improve the regulatory framework. The selected advisor will also draw up the blueprint for the financial and investment management of the holding.( Source: Dnevnik (12.06.2008) |
| | Mines Maritsa Iztok fulfilled its half-year plan before scedule
Mines Maritsa Iztok SPJSC fulfilled its half-year plan for coal extraction before schedule. From the beginning of the year up to June 19 the company has extracted and realized 10,415,861 tons of brown coal. Mines Maritsa Iztok SPJSC also fulfilled its plan for opening an opencast mine before schedule. In that way, the company has excavated 130 thous, cub.m. of land more since the beginning of the year. Mines Maritsa Iztok SPJSC plans to extract 23.1 mln tons and to reach 98 mln. cub.m. of new opencasting site. The company also realized an ecological project of scale. About BGN 6 mln will be invested until the end of 2008 in ecological projects and environmental protection activities. Mainly restoration of the fertility of the land, collecting humus in front of the mines and the spoils, as well as recultivation of the soil. Source: Insurance.bg (25.06.2008) |
| | After an open procedure for assigning a public order and after Ministry of Economy and Energy made a decision, Deloitte Bulgaria SPLTD was chosen for the consultant of the Ministry on the foundation of Bulgarian Energy Holding, said the press center of MEE. The candidates, which applied offers in time for the public order Consultant services for realization of holding model for re-structuring and consolidation of the energy company with sole capital owner the State, were three - Bulbrokers Consulting SPLTD, Deloitte Bulgaria SPLTD and Euroaudit BX Consortium. Source: Agency Focus (27.06.2008) |
| | Deloitte Consults Bulgarian Government on Energy Holding
Delloit Bulgaria Ltd has been selected as a consultant on the establishment of an energy holding, sources from the Ministry of Economy told The Standart. The other candidates were Bulbrokers Consulting and the consortium EuroAudit BX. EuroAudit were ousted from the tender because their offer was incomplete; Bulbrokers' offer was for 725,000 levs (VAT excluded) and Delloit - 736,000 levs (VAT excluded). The energy holding will unite five state-run ventures. Source: Standart (27.06.2008) |
| | CPC: The energy holding does not threaten the competition
The Commission for Protection of Competition decided that the establishment of the Bulgarian Energy Holding, with the purpose of capital participation and/or management of Bulgargaz holding SPJSC, National Electricity Company (NEK) SPJSC, Nuclear Power Plant Kozloduy SPJSC, Thermo-electric power plant Maritsa-iztok-2 SPJSC and Mines Maritsa Iztok SPJSC, would not be concentration of economic activity. The companies would preserve their independence after the establishment, while the Bulgarian Energy Holding would not perform production ot trade activities. Each of the companies would be able to define its market behaviour, it would develop and introduce operational strategies in order to meet the financial goals, put by the holding, would preserve the individually issued licenses and would remain independent, by the other companies and the holding, economic unit. Source: Darik Radio (01.07.2008) |
| | The Commission for Protection of Competition has permitted the structuring of the Bulgarian Energy Holding with the capital of Bulgargaz Holding, National Electricity Company, Nuclear Power Plant Kozloduy SPJSC, TPP Maritsa-iztok-2 SPJSC and Mines Maritsa Iztok SPJSC. It was determined that the creation of mega-holding is not a concentration of business, but represents an internal restructuring of the state companies and that is why it is not covered by the Law on Protection of Competition. Source: mediapool.bg (02.07.2008) |
| | The Maritsa Iztok mining company will invite consulting firms to bid for a contract to prepare a tender procedure for the investor in a new power station in Southern Bulgaria, said the company's executive director Ivan Markov. The decision on the launch of the selection procedure is expected to appear in the Official Gazette next week. The procedure for the selection of an advisory company is open to both local and foreign firms and tie-ins. The main criteria for the assessment of the bids will be the respective candidate's prior expertise in similar undertakings and its staff capacity. 'I expect that the consultant will be named within the next three months with the procedure to select an investor getting underway in early 2009,' said Markov. The construction of the new power generation facility, with a capacity of 600 to 800MW, is a priority project in Bulgaria's energy strategy through 2020. A site for the new power station is yet to be picked. Italy's Enel, AES of the U.S., Germany's E.ON and RWE and Bulgaria's Brikel have so far shown interest in the building of the new power station in the Maritsa Iztok coal basin. Source: Dnevnik (15.08.2008) |
| | Bulgaria Maritsa-Iztok Mine Produces Large Quantities of Coal
Since the beginning of 2008, the coal miners from the "Maritsa-Iztok" mine have extracted over 15 millions tons of coal, which is 107% of the quantity planned for the entire year. In August only the company has recorded extraction of nearly 2 million tons of coal. Over 63 million cubic meters of soil have been uncovered, levelled and transported since January of 2008, which is 101% of the planned volume. Source: Darik Radio (12.09.2008) |
| | Bulgaria's largest open mining complex Maritza Iztok (East) Mines produced 16,080 million tons of coal in the first nine months of 2008, the company announced. The company has overfulfilled its production plan for the period by 7%. The production exceeded its levels compared to the production realized in the same period last year by 581,000 tons. The company plans to produce over 23 million tons of lignite coal by the end of 2008. Source: Darik Radio (18.09.2008) |
| | Energy companies under the control of Bulgargaz
Bulgargaz will be the top company in the future Bulgarian Energy Holding SPJSC (BEH SPJSC). The rest of the state-owned companies to be included in the holding will be NEC, Nuclear Power Plant Kozloduy, TPP Maritsa East 2 and Mines Maritsa Iztok. The new company will be based on Bulgargaz as the name and basic line of business will be altered. BEH will remain a joint stock company, 100% state-owned. Capital shares of NEC, TPP Maritsa East 2 and Mines Maritsa Iztok will be transferred into BEH. Except for these companies, the holding will include also the existing Bulgargaz Holding subsidiaries Bulgargaz - Sofia, Bulgartransgaz and Bulgartel. The new energy giant will have assets worth BGN 8.5 bln, earnings of about BGN 3.6 bln and 21 thous. employees. Source: Standart (19.09.2008) |
| | Mines Maritsa Iztok SPJSC will finish the year with extracted output over 24.5 mln tons. This would be a top achievement for the company and would depend not only on us, but on the market for our products, said CEO engineer Ivan Markov. The 9-month program for coalmining and new rubble horizons has been executed successfully. So far, the output reaches 16.6 mln tons and 69 mln tons of rubble horizon. The units operate normally and the coal supply in them is 798 thous tons of coal. The installation of the rubber-transportation line will be fulfilled within a month, and this would save up to BGN 3-4 mln from electricity costs per year. Source: Darik Radio (23.09.2008) |
| | Mines Maritsa Iztok with record output in September
The output of Mines Maritsa Iztok SPJSC reached nearly 2 mln tons in September, the company said. The output is record as it exceeded the planned quantity by about 13 thous tons. This means that the production estimate of the company was overfulfilled by over 100 percent. Source: Novinar (01.10.2008) |
| | The state will provide BGN 300 million for the increase of the capital of the National Electric Company (NEK), which is part of the structure of the Bulgarian energy holding (BEH), created a month ago. The minister will vote on the increase of the holding's capital. It was registered through a change of the registration of "Bulgargaz holding", whose capital is 1 billion levs. BEH unites Matitza ast ines, thermal-electric power station Maritza ast 2, NEK, Bulgargaz, Bulgartransgaz and Bulgartel. With the BGN 300 million a resource is provided in the intermediate stage of the preparation of the "Belene" project until its financial completion in December 2009. Source: news.bg (16.10.2008) |
| | Bulgarian Energy Holding, the structure created two months ago to consolidate key power generation assets, reported a 22% rise in nine-month profit revealing no financial details. BEH comprises the countrys biggest coal-fired power plant, the state-owned Maritsa East 2, coal miner Maritsa East, Kozloduy nuclear plant, state-run gas distributor Bulgargaz, Bulgartransgaz, telecom services provider Bulgartel, national power grid operator NEK and the Electricity System Operator. Kozloduy NPP was the best performer in the group. Bulgargaz landed at the other end of the scale with a loss of BGN 35.4 million for the nine months blaming the regulatory axe on its price hike proposal. At the same time, the gas company continued to pocket fees for the transit of Russian gas via Bulgaria at the expense of Bulgartransgaz in breach of the gas directive. The two companies are expected to sign an agreement on the fees by the end of the year. Source: Dnevnik (03.12.2008) |
| | Coalminer will reduce the investments to the minimum
Coalmining companies in Bulgaria will reduce their investments to the technological minimum, according to a research of the Bulgarian Chamber of Mining and Geology. This means that the companies will only use only the resources necessary for normal production operations and its technical requirements. The reason for the optimization is that the miners expects 35-40% lower figures this year compared to the previous periods. The Chamber estimates that smaller companies will layoff about 20% of their workforce. Meanwhile, bigger companies suffer shoirtage of workers and will employ additional specialists next year. 11 mining companies are members of the Bulgarian Chamber of Mining and Geology. The biggest one is Mines Maritsa Iztok SPJSC, which produces about 80% of the coal in Bulgaria. Source: Dnevnik (09.12.2008) |
| | The contract for the new facilities for purification of sulphur for fifth and sixth units of Maritsa Iztok 2 thermal power plant was signed on Friday between minister of environment and water and Italian-Chinese consortium, executor of the project. The cost of installation is EUR 75 million, of which EUR 36.1 million non-repayable funds under ISPA programme and EUR 34 million are a loan from EBDR. Source: Pari (15.12.2008) |
| | Maritsa-Iztok Mines EAD introduced anti-crisis programme that includes measures for cost cuts such as electricity, raw materials, services and reconstructions. The investment programme for 2009 will be decreased from BGN 100 million to BGN 58 million. At present the company has 7,500 employees and no job cuts are expected. The forecast net profit of the mines for 2008 is expected to be BGN 2.1 million. Source: Pari (16.12.2008) |
| | Standard and Poors has supervised the rating of National Electric Company (NEC). The reason for the decision is the lack of information on the financial situation of the Bulgarian Energy Holding (BEH), of which NEC is a part. In 6 weeks Standard and Poors expects to receive more data that would allow it to decide whether the rating of the NEC will be changed. By the rating agency indicated that the credit ratings of other units in BEH - Mines Maritsa Iztok, TPP Maritsa East 2 and NPP Kozloduy may not be as high as the rate of NEC, which could decrease the entire rating of the energy holding. Source: Dnevnik (14.01.2009) |
| | The head of Bulgargaz Dimitar Gogov and the Deputy Minister of Economy Galina Tosheva will be a part of the Bulgarian Energy Holding board of directors. Other members of the board will be Dimitar Dimitrov, head of the board of directors of Bulgargaz, Boris Petkov CEO of the state-owned Radioactive Waste and Tencho Popov, a financial consultant and ex-chief secretary in the Ministry of Finance. Deloitte Bulgaria consulted the officials in the Ministry of Economy during the election of the board members. The board of directors will control, organize and manage all activities of the mega holding. Source: Novinar (21.01.2009) |
| | Bulgarian Energy Holding posts BGN 154m pre-tax profit
Bulgarian Energy Holding, the mega structure bundling the countrys major energy assets, booked a pre-tax profit of BGN 154 million for 2008, under preliminary data. The main contributors were the state-controlled power company NEK, coal-fired power plant Maritsa East 2 and nuclear plant Kozloduy. Another shot in the arm were the higher electricity prices. The structure, which was set up last summer, brings together the countrys biggest coal-fired power plant, the state-owned Maritsa East 2, coal miner Maritsa East, Kozloduy nuclear plant, state-run gas distributor Bulgargaz, Bulgartransgaz, telecom services provider Bulgartel, national power grid operator NEK and the Electricity System Operator. BEH said it expected profit will increase to BGN 471 million in 2009, and revenue will gain BGN 292 million to BGN 5.9 billion. The structures long-term bank debt totaled BGN 1.7 billion, but new loans will be sought to back a BGN 2 billion investment plan. Bulgargaz swung to a loss of BGN 118 million from a pre-tax profit of BGN 90 million in the previous year, blaming high gas prices and costly delieveries from Gazprom. Kozloduy NPP turned out to be the gem in the structure, posting a record-shattering profit of BGN 81 million against a BGN 27 million target. The growth was driven by buoyant sales on the deregulated market, where the plant sells 40% of its output. Source: Dnevnik (05.02.2009) |
| | 50% decrease of the mining industry forecasted
A decrease of the mining industry by 30-50% is expected. This was announced by engineer Vanya Grigorova from the Bulgarian Geological Chamber. She added that in order to protect the personnel from lay-offs the Chamber will demand governmental aid. A letter will be sent to the Economy Ministry, which will demand a liberation from bank obligations for a 24-month term. Representatives of the Chamber will insist on taking measures for the prevention of the illegal extraction and the more effective use of the industry's resources. Source: news.bg (06.02.2009) |
| | Mines Maritsa Iztok SPJSC - Radnevo has appointed Extraordinary Meeting on 13.02.2009. Meeting agenda includes: amendments in the statute. Source: Registry Agency (24.02.2009) |
| | Bulgaria's energy market overregulated, businesses say
Bulgaria holds a tight grip on its energy market and there is no real competition in the sector, Bulgarian Industrial Association chairman Bozhidar Danev said, and called for new, flexible power rates and new rules. His statement came a week after the European Commission told Bulgaria that it would trigger an infringement procedure for violations of the electricity directive and setting allowances for exports to the national grid at preferential tariffs. Power retailers association chairperson Roumyana Georgieva said that at least 40 per cent of the market should be deregulated. We hear the talk every year but nothing ever changes, Georgieva said. Power companies estimated that only 20 per cent of their output is sold at free prices. Extra volumes are thus offered at very high prices of up to 260 to 270 leva a MWh, CEZ Trade Bulgaria executive director Vladimir Dichev said. Although they may end up with spare volumes, companies usually order 20 per cent extra supplies, which threatens the market, Dichev said. BIA urged the Government to only regulate the buy-out prices under long-term contracts with the investors in the construction and upgrade of power stations at coal miner Maritsa East. The deal with US firm AES for Maritsa East 1 lignite-fired power plant was signed 10 years ago and runs for 15 years, the same duration as the contract with Italian Enel for Maritsa East 3. The agreement for coal-fired power station Maritsa East 2 also has a 15-year term. Source: Dnevnik (26.02.2009) |
| | The production of propane butane, unleaded petrol and diesel fuel on an annual basis has increased respectively with 50%, 1.7% and 24.7% as well as the production of electric energy with 5.8%. The production of solid fuel and natural gas has decreased respectively with 1.3% and 96.3%. The production of hard fuels on a monthly basis is decreasing with 14% to 2658 thousand tones, the production of electric energy and natural gas diminishes with respectively 13.9% to 3892 GWatt/h and 88.9% to 1 million standard m3. The production of propane butane, unleaded petrol and diesel fuel is decreasing with respectively with 25% to 9 thousand tones, 35.5% to 60 thousand tone and 30.3% to 101 thousand tones. The supplies of natural gas in February 2009 compared to January 2009 increase with 20.6% to 299 million standard m3. The supplies of propane-butane decrease with 19.4% to 24 thousand tones, of unleaded petrol with 34.4% to 40 thousand tones, diesel fuel with 25.3% to 118 thousand tone, solid fuel with 17.7% to 2973 thousand tones and electric energy with 14.6% to 3148 GWatt/h. The supplies of propane butane increase with 25% on an annual basis. The supplies of unleaded petrol decrease with 13%, of diesel fuel with 18.6%, solid fuels with 0.6%, natural gas with 28.3% and electric energy with 6%. Source: profit.bg (30.04.2009) |
| | The company is registered in Territorial administration Big taxpayers and insurers towards 2009, 04.30 Source: Tax Administration (30.04.2009) |
| | Bankruptcies expected in coalmining
Coalminers face a real threat of being shut down and 20,000 people being laid-off, said the head of the independent miners unions at CITUB Pencho Tokmakchiev. He explained that the sector is in an urgent need of government aid to cope with the crisis. CITUB demanded that the natural gas price is decreased, as well as the industrial electricity not get any price hikes. The union added that the gas price, Bulgargaz sell on, is twice the price of gas in the rest of Europe. Source: Novinar (04.06.2009) |
| | Mini Maritsa Iztok to receive 15M euro for rehabilitation
Mini Maritsa Iztok coal mining facility is remarked to receive 15.2 million euro boost from the International Fund Kozloduy. The money will be designated for thorough rehabilitation of the facility, installation of new control and conveyor systems, new transformers, and others, Dnevnik daily has reported. The funding agreement with the Kozloduy fund and the European Bank for Reconstruction and Development (EBRD) will be signed on June 25. The total project will cost 21.4 million euro, with the sum allocated from the fund covering a total of 70 per cent of the cost. An official statement from the Ministry of Economy and Energy said that once the project is implemented, Mini Maritsa Iztok's electricity consumption would be reduced by 140 000 MWh. The fund was set up to finance the decommissioning of four 440MW nuclear reactors at Kozloduy nuclear power plant, which Bulgaria agreed to shut down as a condition to join the European Union in 2007. Source: Standart (25.06.2009) |
| | M aritsa Iztok Mines, the largest coal mining company in Bulgaria, has extracted 11,058,146 tons of coals in the first six months of 2007, the company reported. This makes by 220,000 tons less compared with the same period the previous year. The reason is the decreased requests by the thermal power plants in the complex that are the main consumers of the coals. Source: Pari (06.07.2009) |
| | Chairs for BGN 2914 beheaded a mining executive
The Bulgarian energy Holding (BEH) discharged two members of the board of directyors of Mines Maritsa East Ivan markov and Gocho Hristov. However, they would not be released from responibility, the Holding said. Todor Todorov, financial officer at TPP Maritza East 2, has been appointed for head of the mines. Markov was a majority candidate from the Coalition for Bulgaria in Stara Zagora in the past elections, but he did not manage to enter the Parliamnet. The decision for the discharge was taken after a report of an expert commission of BEH, appointed two months ago. The results of the audit show serious violations of the financial discipline, lack of control in planning and spending finances, lack of control in planning and implementation of the procedure under PPA, during the operative management of Mines Maritsa East SPJSC. According to the report, the profit is highly decreased as a big share of the expenses made does not correspond to the main goals and priorities of the company management. Source: Trud (13.07.2009) |
| | Mines Maritsa Iztok SPJSC, the biggest coalmining company in Bulgaria, has a new CEO since yesterday. Todor Todorov, who comes from TPP Maritsa East 2 SPJSC, was presented to the management team on Wednesday. He has been chosen by the meeting of the directors in Sofia. The board of BEH released two executives, Ivan Markov and Gocho Hristov, on July 10. The move was a result of the audit inspections at Mines Maritsa Iztok, which showed irregularities in public procurements, causing millions of BGN damage. Source: Sega (16.07.2009) |
| | A total of BGN 17 mln is the Mines Maritsa Iztok SPJSC for the first half of 2009, said the newly appointed director Todor Todorov. The long-term credits of the company are BGN 104 mln, short-term BGN 44 mln. TPP Maritsa East 2, TPP Enel Maritza-East 3 and TPP Brikel owe a total of BGN 24 mln to Mines Maritsa Iztok. Liabilities to personnel of the Radnevo mines, which is 7500 workers, is BGN 16 mln, and it was all paid up on Wednesday, Todorov said. There would be no lay-offs until the end of the year, he added. A new financial audit would be made after the prescriptions of the previous one are implemented. Source: Darik Radio (24.07.2009) |
| | Maritsa-Iztok EAD mines booked a BGN 17 million loss for the first half of 2009. Long-term liabilities exceed BGN 104 million and short-term liabilities amount to BGN 44 million, of which BGN 16 million are debts to the workers employed in the mines. The new executive director Todor Todorov promised absolute transparency in the finances after the signals of misappropriation with high sums from the old leadership. Source: Pari (27.07.2009) |
| | Bulgarias top-notch energy assets have rounded off the first six months of the year bleeding red ink, showed the consolidated report of the Bulgarian Energy Holding (BEH), which lumps them all together. The national power grid operator NEK, its subsidiary Electricity System Operator (ESO) and mining company Maritsa Iztok mines have accumulated a loss of BGN 98 million from January to June, widening from BGN 42 million, BGN 37 million and BGN 19 million, respectively, from the previous month. For the entire 2007, NEK booked a net profit of BGN 34 million and Maritsa Iztok netted BGN 8 million. The deterioration was attributed to the unfavourable business environment of an economy ravaged by recession, according to report of the holding company published yesterday. NEK, which holds a power trade licence, has sold slimmer volumes both on the domestic and on the foreign markets. This was coupled with lower export rates dragged by softened demand in neighbouring countries. Source: Dnevnik (04.08.2009) |
| | Bulgarian electrical energy exports dropped by nearly 30% in the first six months of 2009 year-on-year. This was announced Friday by the Bulgarian Energy Holding (BEH), as cited by Darik Radio. The losses of two of the companies in the holding - Mini Maritsa Iztok EAD and National Electrical Company (NEK), for the same period are close to BGN 60 M, the financial result of the first 6months of 2009 showed. As a whole, BEH has considerably improved its financial condition compared to 2008. The net profit of the holding in the first half of 2009 was BGN 160 M, while for the whole 2008 it was BGN 86 M. The electricity export in the first six months of the year decreased by 28,4% from 2,16 million MWh in the middle of 2008 to 1,5 million MWh in July 2009. Source: Darik Radio (17.08.2009) |
| | Three of the companies in Bulgarian Energy Holding (BEH) posted losses for the first half of 2009. National Electric Company logged the biggest loss, BGN 44.2 million, followed by Maritsa Iztok Mines (BGN 17.3 million) and Bulgartel (BGN 0.17 million). The holding as a whole, however, booked a BGN 226.4 million pre-tax profit, up 35.4% year on year. Income rose by BGN 271 million to BGN 2.577 billion. Source: Pari (17.08.2009) |
| | Contracts and orders for more than BGN 32 million have been suspended by the new management of Mines Maritsa Iztok, said the Executive Director of the company Todor Todorov. The reason for the stopped contracts and deals is that they are unprofitable or unjustified. Their blocking also aims to avoid staff cuts in the largest open mine in Bulgaria. The new CEO of the company has taken decision for second internal examination of transactions and contracts. If it finds new data for abuse and actions that led to the detriment of the mines, the management of the company will call the investigation and prosecution, "said Todorov. Over BGN 100 million are the loans, taken by Mines Maritsa Iztok. Source: profit.bg (18.08.2009) |
| | Bulgarian Maritsa East coal mining company will terminate detrimental contracts and transactions to the tune of BGN 32 million in a bid to keep its staff intact, executive director Todor Todorov told. The new management, which was appointed a month ago by the Bulgarian Energy Holding (BEH), conducted an audit and found out misuses and lack of control in public procurements, which resulted in contracts suspension. The check led to the dismissal of former executive directors Ivan Markov and Gocho Hristov and the appointment of the incumbent head Todor Todorov who is ex-financial director of another state-owned energy firm, the Maritsa East 2 coal-fired power station. Todorov announced he has requested a second internal inspection on the transactions and warned he would notify the investigation and the prosecution offices if the check gives new embezzlement data. The mining company sank into a BGN 17.3 million loss in the first six months of the year, shows the consolidated statement of BEH which lumps together top-notch energy assets. The poor result was attributed to the rising costs of fuels and spare parts and sizable sub-contracts. Todorov called for a more flexible pricing mechanism as the coal prices are currently pegged to an annual efficiency indicator set by the energy minister. The mining company has an onerous debt burden of more than BGN 100 million, of which BGN 12 million are BNP Paribas loans with an approaching maturity. The mines are in talks with the lender to defer the due installments. On the other hand, the three power plants in the Maritsa East basin collectively owe BGN 29 million to the mining firm. Source: Dnevnik (18.08.2009) |
| | The output of the Bulgarian coal mining industry has shrunk by some 30% since the start of the year under the weight of weak electricity consumption pressing demand for raw material, show figures of the Bulgarian Chamber of Mining and Geology (BCMG). Power exports have slumped by 30% since January as use on the domestic market has diminished by around 5%. Bulgaria produces some 25-30 million coal, with the state-run company Maritsa East generating more than 90% of the total. Increased power consumption at the start of the year was expected to boost coal output by around 10% but in a few months the sector joined the group of the industries that have been hit hardest by the economic downturn. The three mines controlled by energy tycoon Hristo Kovachki have been temporarily idled amid lacklustre demand from coal-fired power plant Bobov Dol. The power station has just one of its units up and running and at its bottom capacity of 150 MW. The warehouses are full to the brim and there is no room to store new quantities, the plant explained. For the first six months of the year, Maritsa East registered a loss of BGN 17.3 million. Lachezar Tsotsorkov, board member of BCMG, said investments in the mining industry will be slashed in half this year. Production has plummeted by about 40% since January, reaching to 60% for some sectors. Last year output was worth BGN 2.3 billion, where metal ores accounted for more than BGN 1 billion, according to data by the chamber. The sector employs some 30,000 people directly and some 1,200 workers have been made redundant since the crisis broke out. Source: Dnevnik (19.08.2009) |
| | Management of the energy holding to be also changed
Minister of Economy Traicho Traykov said that there is an option to replace the management of Bulgarian Energy Holding (BEH). The holding was founded last year and unites Mines Maritsa Iztok, TPP Maritsa East 2, Nuclear Power Plant Kozloduy, National Electricity Company, Bulgargaz and Bulgartransgas. Mr. Traykov added that the members of the board of directors would be reduced from 5 to 3. The deputy chair of the board Tencho Popov is likely to be the first one replaced. Traykov did not disclose the future of the current executive of BEH Galina Tosheva. Source: Novinar (26.08.2009) |
| | Maritsa Iztok Mines EAD, the biggest mining enterprise in Bulgaria, has been showing good technological results, but bad financial and economic ones, which showed lack of synchronisation, Todor Todorov, who was elected executive director of the company a month and a half ago, said in a special interview for the Pari daily. Despite the difficulties, the mines paid a concession tax amounting to BGN 3.7 million at the end of July.
Maritsa Iztok has two bank loans and both were spaced out. Only for a month, expenses were reduced by BGN 32.477 million.
Before my coming, the anti-crisis programme was not specific and effective. Now we are changing the whole approach. The first thing is to identify the specific activities to be optimised and to define what specific results to expect, Todorov explained.
Despite the short time, the macro frame of the enterprise has already been changed. The economic model for the development now is market-oriented. Unfortunately, 70% of the planned investments, worth BGN 100 million, have already been spent by the previous leadership but we will reduce the rest 30%. In this hard situation we will stop the construction of some of the hotels and holiday homes, but I do not envisage job cuts, Todorov pointed out. Our most important task is to build up a strategy for stable development for years ahead. Our goal is to make Maritsa Iztok a profitable trading company. We expect to end the year of 2009 with a profit. Source: Pari (01.09.2009) |
| | The Executive Director of the Bulgarian Energy Holding (BEH) Galina Tosheva has entered an application to be exempted from the Board of Directors of Mines Maritsa Iztok. From now on the board of the company will consist of three members instead of five. The Board adopted her request without quitting of responsibility. The termination of the contract of Galina Tosheva enters into force on 8 September, when the decision is expected to be registered in the Commercial Register. Source: Dnevnik (11.09.2009) |
| | Maritsa Iztok Mines decreased its expenses by BGN 55 million in September and BGN 4 million in August. Income also fell by BGN 2.5 million and the company suffered a BGN 2 million loss in August, pushing total loss to BGN 22.5 million. The low financial results in August were due to drop in coal orders by 150,000 tons. Despite the difficulties, the 7,500 employees receive regularly their wages. Source: Pari (05.10.2009) |
| | Maritsa Iztok Mines reported an accounting profit of BGN 16.625 million for October. Thus the state-owned company reduced its loss from BGN 18.559 million at the end of September to BGN 1.934 million at the end of October. For the year-ago period, the mine operator posted a BGN 6.314 million profit. Income also increased to BGN 49.4 million in October from BGN 41.6 million for the same month in 2008. Performance in October confirmed that the management's pro-active strategy is the right course to follow, Maritsa Iztok Mines CEO Todor Todorov said. The strategy focuses on attractive financial resource, improving production efficiency, reducing debts and shrinking expenses. Debts to suppliers decreased by BGN 1.879 million in October. The company also paid more than BGN 6 million worth of VAT and secured the timely payment of wages, taxes and social security contributions. October was successful for the company's business plan, too. Coal production amounted to 2.854 million tonnes, i.e. 101% programme performance. Year on year, the result increased 119%. More than 7.6 million cu. m of overburden was excavated and transported. Source: Pari (17.11.2009) |
| | Bulgaria FBI Find Large-scale Violations at Maritsa-Iztok Mines
Bulgaria's State Agency for National Security (DANS) has found violations in the Maritsa Iztok mines for BGN 19 M committed only in the last 2 years. The information was revealed during a joint press conference of Prime Minister, Boyko Borisov, and the DANS Director, Tsvetlin Yovchev, who were on a visit to the area. The mines' management had rejected an offer for the purchase of new excavators from German companies for prices ranging between BGN 28 and 45 M while, at the same time, they invested BGN 16 to 30 M in repairs of old ones. So instead of purchasing 2 new machines, the mines repaired 3 old ones, and some of the work had never been done, Yovchev said. Another BGN 14 M were paid for repairs of old rubber lines and contracts for another BGN 8 M have been signed in 2010. The invoices were made for new lines, but old ones have been repaired instead, with the transport expenses being pocketed. BGN 1.7 M have been spent on other repairs in violation of the public tender laws by breaking down orders to amounts of BGN 60 000 each. In addition, the mines' management had done remodeling of vacation homes for employees despite the difficult financial situation for BGN 10 M in 2008 and BGN 8 M in 2009. The probe also established lack of control of the coal quality, except in the Italian managed Thermal Power Plant (TPP) Enel Maritza Iztok 1. In many cases, the coal has been listed with much lower quality than the real one, triggering losses for the State. Source: Darik Radio (31.03.2010) |
| | SANS raise the curtain on grave embezzlements in Mini Maritsa Iztok
Mini Maritsa Iztok SPLTD had been plagued by embezzlements worth billions in local currency, PM Boyko Borisov and the head of SANS Tsvetelin Yovchev announced during their visit at the Troyanovo mine. In Borisovs words, the inspection gave them grounds to approach the prosecutor general and initiate a probe into the shady past of the state-owned company, suspecting serious misuse of funds. Borisov also asked the Bulgarian Energy Holding to reveal the perpetrators of the embezzlement in a report. Yovchev confirmed the allegations, saying the agency had been long investigating signals for financial violations in Mini Maritsa Iztok, mainly through orchestrated public procurement procedures, vague quality control and illicit price formation. Source: Pari (31.03.2010) |
| | BEH to be dissolved by end-June
Bulgarian Energy Holding (BEH), which manages eight state-owned companies, will be dissolved by the end of June, minister of economy and energy Traycho Traykov said after meeting members of AmCham in Bulgaria. The holding will be split into independent companies initially, though other forms are also being considered, Traykov pointed out. One of the options is uniting gas companies into one group. Alternatively, trade companies may be put under one umbrella and their assets, under another, he added. BEH includes Maritsa Iztok Mines, Maritsa Iztok 2 thermal power plant, Kozloduy nuclear power plant, National Electric Company (NEK), Bulgartransgaz and Bulgartel. All companies are 100% owned by the state. The holding was set up in September 2008 to manage, assess and sell interests in the eight trade firms. We wanted to give BEH a chance and let it optimise the activities of the companies. However, we cannot see any positive effect yet, Traykov said. The government is considering privatising or listing NEK or parts of it on the stock exchange, the minister told reporters. The same holds true for Electricity System Operator and Maritsa Iztok 2. All documents have been prepared for a consolidation company that will sell the state's minority stakes, Traykov pointed out. Two of the three electricity distribution companies are ready to buy the state's 33-percent stake, he added. Source: Pari (12.04.2010) |
| | Spare parts abuse was found during an inspection in Mines Maritsa Iztok. On the territory of mine Troyanovo-Sever are found illegally stricken out parts that were not used in the production. The violation is in particularly large size, said inspectors. Stocks are at a total value of BGN 15 400. Spare parts were found in a van outside the warehouse. Source: Standart (18.05.2010) |
| | Cheap coal reduces electricity prices
Mines Maritsa Iztok have reduced the price of lignite coal by 4%. Therefore, TPPs which purchase the commodity may reduce the price of electricity, said the new management of the mining company. To offset the losses from lower prices of coal, which is now sold for BGN 71.50 per ton, the miner has reduced its own costs by 15%. This gesture amis a crisis leads to the cheapest electricity mix in Maritsa Iztok, and thus its price may fall by 5-7%, said CEO Todor Todorov. This is especially true for TPP-s Enel Maritza East 3 and AES Galabovo, which have long term contracts with NEK for purchase of electricity. Todorov underlined that he overtook Mines Maritsa Iztok with a BGN 17 million of obligations, while currently the company is in above the line with over BGN 6 million. Source: Standart (13.07.2010) |
| | Bulgaria's coal mining up 5% in 2010 - BCMG
The output of Bulgaria's coal mining industry rose by an average 5% on annual basis in 2010, figures of the Bulgarian Chamber of Mining and Geology (BCMG) showed. In particular, state-run company Maritsa East registered a 6% growth in coal extraction for the first eleven months of the year, while private entities recorded a 3% rise in output for the full 2010. The improvement was mainly fuelled by the increase in electricity production, with power exports reaching 7,500 GWh, almost touching the record-high volume of 7,600 GWh seen in 2006. For January to November 2010, Maritsa East extracted 23.7 million tonnes of coal, up by some 1.8 million tonnes compared with the same period of the previous year. "Our expectations for the mining industry's development in 2011 are definitely optimistic," BCMG's executive head, Ivan Andreev, told. Source: Dnevnik (05.01.2011) |
| | Bulgaria's Largest Coal Mining Company to Invest BGN 88 M in 2011
Bulgaria's largest coal mining company - Maritsa Iztok Mines EAD has announced a massive investment plan for 2011, after in 2010, and especially in the last quarter, it registered record output and profits. The state-owned company, which is part of the Bulgarian Energy Holding, a government energy megastructure, plans to invest a total of EUR 88.2 mln in expanding and modernizing its production in 2011. The investment program is designed for an output of 27 250 000 metric tons of coal in 2011, after in 2010 the company planned to produce 25 000 000 metric tons of coal, but completed the year with an output of 26 090 853 metric tons, surpassing its planned production by 4%. Its 2010 production was 2 013 728 metric tons more than the amount of coal extracted in 2009. The largest coal quarry in Bulgaria Troyanovo 1, which last year registered its highest output since 1960, with a total of 8.62 million metric tons of coal extracted in 2010, surpassing the 2007 record of 8.95 million metric tons, is the absolutely priority in the investment program, with the planned construction of a new loading terminal in order to secure the lignite coal supplies for the AES Galabovo Thermal Power Plant, an investment of the American energy giant AES, which is part of the Maritsa East 1 TPP complex, with a capacity of 670 MW. The Maritsa Iztok Mines will also invest big in the modernization and rehabilitation of its equipment, new facilities at the Troyanovo 3 quarry, new geological surveys and strengthening the existing earthworks. "The Mini Maritsa Iztok (Maritsa East Mines) company faces big challenges in the new year but we take them to stand for incentives for our proactive work with the other partners of ours in the Maritsa East I TPP complex. We will work to guarantee Bulgaria's energy independence," said Todor Todorov, CEO of the Maritsa Iztok Mines EAD. Source: Dnevnik (17.01.2011) |
| | Largest Bulgarian Mine with Record Coal Production Q1
The Maritza Iztok Mine in southern Bulgaria has scored 2011 its greatest yield for the first quarter of the year since 1997. For March 2011 miners at Maritza Iztok excavated some 2.5 M tonnes of coal, while for Q1 the amount is close to 7.5 M tonnes. The mine is reporting that it is fulfilling its plans for ground excavation, with close to 24 M cubic meters of earth dug up for the first quarter. The Maritza Iztok Mine, the largest coal mine in Bulgaria, is built upon a deposit of lignite coal and feeds the three Martiza Iztok power plants, as well as the Brikel briquette factory. Source: Class (06.04.2011) |
| | AES set to launch operations of Bulgarian thermal plant subsidiary
US firm AES was to officially inaugurate its thermal power plant at Gulubovo on June 3 2011 following $1.2 billion investment. The new plant is the completely renovated former communist-era state owned Maritsa East-1 thermal power plant. The plant has desulphurisation installations that will filter about 99 per cent of noxious emissions. The plant's two units will start working at partial capacity of 210MW each, gradually working up to their full capacity of 335MW. During that time, the plant will pay compensation damages to state electricity utility NEK for not working at full capacity. AES Gulubovo was scheduled to begin operations in 2010, but the plant had to delay the start of operations. It later emerged that even though the plant was not in operation, NEK charged consumers for electricity produced there, prompting an investigation from the utilities regulator, which is yet to be concluded. Source: Dnevnik (06.06.2011) |
| | Toshiba exploring for new thermal power plant with CO2 capture installation in "Maritsa Iztok 2"
Toshiba Corporation will investigate the possibility of building a new plant with installation for CO2 capture in "Maritsa Iztok 2", the company said. The survey will be conducted with the support of the French company Schlumberger Carbon Services, University of Sofia and the Japanese corporation Taisei. Japan Corporation was chosen to do applied research on systems for high efficiency use of coal, which is funded by the Japanese Organization for Development of New Energy and Industrial Technology (NEDO). It will start in July and completed by the end of March 2012. For the construction of new coal plant in the complex there is talk for several years. The previous government chose the working committee that developed the conditions of the tender for consultant for building of the plant. Was conducted examination for the development of state-run mines "Maritsa Iztok" that will deliver coal for the new plant. In late March Minister of Economy and Energy Traicho Traikov announced Toshiba interest in building new capacity and stated that the investment will be about 350 million euro. A month later, in discussing the new Energy Strategy of Bulgaria until 2020, he explained that the new plant could be built at the site of "Maritsa Iztok 2 and the state company may participate in the financing. According to him, it is possible two units to be detached into an independent company and building to be carry out through public private partnership. "The examination is part of Japanese government policy to promote economic growth in Japan, while reducing global emissions of CO2 through the implementation of leading energy and high efficiency technology abroad," said the statement of the Japanese corporation. It is intended the examination to cover all coal plants in Bulgaria. In the statement is said that it is supported by the Bulgarian Energy Holding company. The Japanese corporation has signed a memorandum of cooperation with BEH and the Bulgarian economy ministry. Source: Standart (06.07.2011) |
| | Bulgarian Mines Break Coal Production Record in January-August 2011
Bulgaria's state-owned Mini Maritsa Iztok EAD (i.e. Maritsa East Mines Jsc) achieved a record production of coal in the first eight months of 2011. A total of 20.62 million metric tons of lignite coal were extracted by the Maritsa East Mines in January-August 2011, improving the previous best result for the first eight months of any given year, which was the production of 16.60 million metric tons of coal in 1996. The January-August 2011 coal output marks an increase of 7 million metric tons year-on-year, and is 500 000 metric tons more than the goal set by the company for the respective period. "The motivation and team work of over 7 200 employees improved the previous highest production," Mini Maritsa Iztok said in a statement. The company announced that since the start of 2011 so far it has dug up, transported, and deposited more than 66 million cubic meters of earth mass, a 57% increase year-on-year. This way the mines are preparing to meet the demand by the several large-scale thermal power plants in the Maritsa East energy complex, including Maritsa East 2 EAD, Contour Global Maritsa East 3, AES Galabovo, and Brikel EAD. By the end of 2011, the management of the Maritsa East Mines originally planned to extract 27.25 million metric tons of coal, and to dig up 94.9 million cubic meters of earth mass. Taking into account the record output in the first eight months, however, the company expects it will produce at least 28-29 million metric tons of coal in 2011. With all thermal power plants in Bulgaria having submitted their orders for 2012, Mini Maritsa Iztok EAD forecasts the production of over 32 million metric tons of coal next year. Much of the increase is due to the launch of the AES Galabavo TPP, a massive investment of the US energy giant AES, into a 670 MW facility opened in the spring of 2011. (Darik Radio) Source: Standart (09.09.2011) |
| | Bulgarian Business to Increase Salaries as of 01.01.2012
The Bulgarian business will increase the salaries of their employees from the New Year. In some private companies the increase will be between 5% and 20%, CITUB informed. The trade unions also stated they would insist on a 10% increase of the salaries in the budget sector as of January 1, 2012. This increase will cost 450 million levs to the state treasury but this sum will not put at risk the fiscal stability of the country, CITUB reckon. The realization of the budget is going better than last year and fore three trimesters there is a growth of the GDP. At the same time a lot of job cuts were made in the public sector, CITUB president Plamen Dimitrov stated. Source: Standart (30.09.2011) |
| | German company Siemens will rehabilitate the power of mines Troyanovo 3 and Troyanovo - North of the state company Mines Maritza Iztok, said the company. The project also includes renovation of the main transformer in the company and building of new mobile substations. The total contract value is EUR 12.5 million, of which 8.79 million were granted by the International Fund Kozloduy thought the European Bank for Reconstruction and Development (EBRD). In the summer of 2009, Mines Maritza Iztok signed a contract with the EBRD for grant under the Fund Kozloduy for a total of EUR 15.1 million. The total project cost for energy efficiency in the company is EUR 21.4 million. EUR 6.3 million of them will be paid by funds of Mines Maritza Iztok. According to plan the project must be completed by the end of the year. Source: Dnevnik (20.10.2011) |
| | Tsvetan Vasilev, Chairman of the Supervisory Board of CCB: CCB is the largest net creditor of the energy system in Bulgaria
Tsvetan Vasilev, Chairman of the Supervisory Board of Corporate Commercial Bank (CCB) commented that crediting in Bulgaria could be boosted through projects related to energy infrastructure and infrastructure in general roads, ports and airports. In relation to Bulgarian National Bank (BNB) data that CCBs profit until end-September 2011 was BGN 45 million, or about BGN 10 million less compared to the same period of 2010, Mr. Tsvetanov said the bank had planned such a reduction in its earnings and it was related to its conservative policy. He noted that the bank had a mere 1% of bad loans due to the different approach it had towards financing projects related to real estates. Regarding the widely discussed topic of state money deposited in CCB, Mr. Tsvetanov said the state did not have any money deposited in CCB and if it did, it was secured by government bonds. As for companies that were partly owned by the state, he admitted that several companies, most of which from the energy sector, were clients of the bank, but they had no more than 10% of their total assets deposited in CCB. He also emphasised that CCB was the largest creditor of Bulgarias energy system. As for CCBs plans for 2012, Mr. Tsvetanov said that the bank had no intention to change the priorities that it had outlined in 2000. Ever since Bulbank sold its share in CCB, the bank had focused on sustainably developing sectors, such as infrastructure and export-oriented manufacturing that were less vulnerable to the crisis. Source: Class (14.11.2011) |
| | Bulgaria's Maritsa Iztok Mines to Go On Strike over Pay Rise
The syndicates at Maritsa Iztok Mines have declared their readiness to start a strike over demands for higher wages for miners. As a result, coal supplies to four power plants may be disrupted. The Maritsa Iztok Mines have threatened to halt coal supplies to the power plants on January 07 unless the miners get a pay rise proportional to the output increase. The protest was scheduled for December 21 but was postponed due to the refusal of the executive director to sign an agreement on protecting the life and health of the protesting workers. The syndicates of Maritsa East Mines insist that the employer comply with the agreement signed on July 12 2011 regulating the relative share of the wage costs against the company's revenues. Evgeni Stoykov, CEO of the Maritsa Iztok Mines, allegedly withdrew his signature from the paper despite the expected BGN 500 M revenues of the company. A three-member committee of the National Institute for Conciliation and Arbitration held a session on December 29 on the matter. On Christmas Eve, all of the 7100 workers received bonuses of over BGN 1000, which they said had nothing to do with the agreement sealed in the summer. Source: mediapool.bg (03.01.2012) |
| | Maritsa-Iztok Mines to lose BGN 1.8 mln per day if a strike is staged
On January 14, Maritsa-Iztok Mines will stage an indefinite strike, announced the Strike Committee. If things come down to that, the daily losses of the largest domestic coal-mining company will amount to about BGN 1.8 mln, estimated the Management of Maritsa Iztok Mines. The defaults to be paid (in case of a strike) to the thermoelectric power plants will be close to BGN 1 mln per day. I have not withdrawn my signature from the agreement as the syndicates claim. I am ready to continue the negotiations, stated the companys CEO Evgeni Stoykov. Source: Class (09.01.2012) |
| | Court to Decide on Legality of Coal Miners Strike
The management of Maritsa Iztok Mines AD will address the Stara Zagora District Court, seeking that the looming strike at the state-owned coal mining company be declared illegal. A one-hour warning rally will be staged on Tuesday, while the actual strike will start on Sunday. In the beginning of 2012, the National Institute for Conciliation and Arbitration (NICA) allowed the miners to go on strike, specifying that it could last until energy supplies were disrupted. After that, the management of Maritsa Iztok Mines AD submitted another claim with the NICA, asking it to reconsider its stance on the matter. NICA has not yet presented its stance on the matter. The Stara Zagora District Court will review the claim submitted by the management of the state-owned company within a seven-day period, meaning that there will be no changes to the scheduled start of the strike activity. The subsequent turn of events will be determined by the court's decision. Source: Standart (10.01.2012) |
| | Mini Maritsa Iztok SPJSC to lose up to BGN 3 mln per day as a result of the ongoing strike
Mini Maritsa Iztok SPJSC will lose up to BGN 3 mln per day as a result of the new effective strike, which was launched late last night, stated in his address the CEO of the company, Evgeni Stoykov, quoted by BNR (Bulgarian National Radio). According to him, no one has an actual interest for the strike to continue since the company will be placed in a dire financial situation, thus even threatening the payment of the employees' wages. The miners staged their protests over the non-payment on the part of the employer of the promised bonuses for over-performance of the coal yields. The management of the mines had proposed for the officials employed directly in production to receive the highest bonus in the allocation of the additional funds, but this was rejected by the trade unions. The miners will also receive a compensation of 10,35% on their gross remuneration for the last quarter of 2011. According to Stoykov, the strike is illegal and unfounded. According to him, the other miners' demands cannot be fulfilled at the moment. He stated that he was ready to hold new negotiations with the syndicates. The strike was joined by the miners from all mines involving Troyanovo-1, Troyanovo-3 and Troyanovo-North. Almost all of the protesters have agreed to launch the strike, announced also on BNR (Bulgarian National Radio) the Chairman of CITUB (Confederation of Independent Trade Unions of Bulgaria) acting for the company, Valentin Valchev. According to him, the employees will remain at their work places, but they will refuse to implement their obligations. Mini Maritsa-Iztok SPJSC supplies coal for the four thermal power plants (TPP) operating in the region including AES Galabovo TPP, TPP Maritsa-Iztok 2, TPP Contour Global Maritsa-iztok 3 and TPP Brikel. The effective strike began last night at 8 PM and, according to the operational standards, TPPs must have a coal reserve for 7 consecutive days. The strike committee stated that it was ready to hold talks. Besides, the trade unions insist on the improvement of working conditions and on the upgrading of the equipment. The first employees who staged a strike involved some 1,500 night shifters operating at the three mines of the complex, announced Valchev. In case of better performance, the employees at the Mini Maritsa-Iztok SPJSC must receive higher remuneration, stated yesterday on BNR, the Minister of Economy, Energy and Tourism, Traicho Traikov. According to him, the miners will be granted bonuses after the signing of a new collective labour contract. Therefore, he called on the miners and the company's management to initiate negotiations for the signing of the agreement. Ultimately, the financial losses for Mini Maritsa-Iztok SPJSC incurred by the strike will be higher than the bonus amounts which must be paid to the miners, reckoned CITUB. Source: Class (16.01.2012) |
| | Miners at Bulgaria's State-owned Maritsa Iztok Mines are launching an effective strike at 8 pm Sunday. The strike will involve all three mines. The workers will show up for work, but will not fulfill their job duties. About four thousand miners and administration employees have joined the strike action, supported by Bulgaria's two main trade unions. The main subject of argument is a better payment, and in particular a request for a cash bonus workers were promised in the summer. The argument between the management of Maritsa Iztok Mines AD and the syndicates at the state-owned company has been going on for a month, but the talks have failed to bring a resolution. Source: econ.bg (16.01.2012) |
| | Tsvtelina Borislavovas fund CSIF has raised its stake in BACB up to 61.36%, following the lenders cap hike in late 2011. Having passed the 50% bar, the company has made a tender offer at BGN 4 per share and has subsequently acquired 740, 368 stocks in a number of deals on Jan. 6. The equities from the tender offer comprise 3% of the banks capital. Source: Standart (17.01.2012) |
| | SEWRC threatens with a 10% increase in electricity prices in case of a long strike of miners
If the strike of the miners at the Maritsa Iztok Mines continues for more than a month, this will lead to at least 10% increase in electricity prices as of July 1, 2012, Angel Semerdjev, Chairman of the State Energy and Water Regulatory Commission (SEWRC), warned today. According to him, thermoelectric power plants have coal reserves for two or three weeks and afterwards, they will have to slow down the speed of their operation, stop work or supply coal from other mines. In order to avoid electricity problems, the cold reserve of Varna TPP and Bobov Dol TPP will be used, but electricity from these plants is considerably more expensive. This will increase the costs of the National Electric Company (NEK) for purchase of electricity and will raise consumer electricity bills as of July. NEK has already demanded some 4.5% hike of electricity prices before July 1. The reason is the company bears losses from the purchase of electricity from renewable energy sources. If the miners strike lasts less than a week or two, prices may remain unchanged, stated Semerdjiev. In case of a longer strike, it would be difficult for the entire system of electricity generation to go back to its usual rhythm. In addition to the strike, the price increase of electricity as of July will be due to the purchase of larger quantities of green energy and the launch of trade in harmful emissions from TPPs. Thus, consumers may have to pay 15% higher electricity bills as of the middle of 2012. Semerdjiev refused to specify the preliminary estimates of the price hike based on all factors. However, he explained that the electricity market in the region was developing in the direction of increasing prices which means higher proceeds from the export of electricity. Source: Class (18.01.2012) |
| | If protests of miners continue, NEK will buy up to 50% more expensive electricity
If the strike at the Maritsa Iztok Mines continues for a longer period of time, the power stations which sell more expensive electricity will start operating and this will ultimately affect consumer bills, Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC), explained on BNT. According to him, if power plants stocks of coal are exhausted, electricity from Varna TPP and Bobov Dol TPP must be purchased, which is some 40-50% more expensive, and this will inevitably affect the costs of the National Electric Company (NEK) as a public supplier of electricity. SEWRC, on its part, is obliged to reimburse the companies expenses, which means that consumers' electricity bills will inevitably increase. The management of the Maritsa Iztok Mines said that the losses from the strike have reached BGN 4 mln. Maritsa Iztok 2 TPP has begun a trial supply of coal from mines in the region of Pernik. Another reason for the more expensive electricity as of July 2012 will be the launch of trade in quotas of harmful CO2 emissions from TPPs. The effect of this factor on the end price of electricity can be mitigated, if Bulgarias request for a grace period in which our TPPs will prepare for the changes, is accepted, explained Semerdjiev. Currently, CO2 emission quotas are cheaper and, if they remain at their present levels, the effect on bills will be lower. However, Semerdjiev expressed optimism that the price hike of electricity for consumers as of July might remain within a 7-8% range. The price of electricity in Bulgaria is still some 35% lower than the EU average, added Semerdjiev. Source: Class (19.01.2012) |
| | Bulgaria's Maritsa Iztok 2 Thermal Power Plant has conducted a successful experiment with burning brown coal from the Pernik basin. The test was conducted as the Maritsa Iztok Mines, which went on strike on Sunday evening, cut coal supplies to the TPP. In 4 hours, 200 tons of coal were burned at cauldron 12 of Block 8 of the TPP. The monitoring of the technological process showed an optimal burning of the energy source. The experiment proved that the characteristics of brown coal are in line with the systems at the TPP's cauldrons and are a good alternative to the ones used so far. The capacity of Block 8 of Maritsa Iztok 2 has remained unchanged. The efficiency of the sulphur purification facility of the unit has increased because this type of coal has a lower sulphur content, below 1%. The Maritsa Iztok 2 TPP will start receiving supplies from the St Elizabeth mine in the Pernik coal basin, whose concessionaire is Belgian Rekoul AD. Source: econ.bg (19.01.2012) |
| | Bulgarias energy system felt power shortages in the first day of the workers prosests in Mini Maritza East the nations biggest coal provider. The economy ministry on Monday asked Varna TPP (property of CEZ) to activate 3 of its cold reserve units. The ministry justified its request with the low temperatures in the country, which had caused a spike in electricity consumption. Meanwhile, according to stats published on the website of the Electricity System Operator, Bulgaria continues its daily exports totaling 700-800 MW to Serbia, Turkey, Greece and Macedonia. According to some sources, Varna TPPs involvement in providing the energy needs of the country makes coal supplies from Hristo Kovachkis mines in Bobov Dol and Pernik redundant. Since the three cold reserve units at Varna TPP are not equipped with sulphur cleaning installations, they can operate for 10, 000 more hours under the current regulations. Once they hit the limit, they should either close down or have the necessary equipment installed before resuming operations. Kamen Boshnakov, head of Varna TPP, said CEZ planned equipments updates in the plant and was doing a market research for suplhur cleaners at the moment. Source: Dnevnik (20.01.2012) |
| | The export of electricity from Bulgaria was stopped today by an order of Minister of Economy, Energy and Tourism Traicho Traikov who explained this measure with the ongoing strike of miners at the Maritsa Iztok Mines. According to Traikov, there is sufficient electricity for the domestic market and there will be no rationing. However, electricity traders on the open market are expected to suffer losses because it is not clear when the export of electricity will be resumed. Currently, Bulgaria exports 800 MW mainly to Greece, Turkey and Serbia, and the three countries meet their consumption needs with imports from Bulgaria. Maritsa Iztok 2 TPP stated that this morning, the miners stopped 20 waggons with coal from the Pernik mines. Blackmail cannot be a way of solving problems, Traikov commented on this occasion. The police will be relied on to ensure the transportation of compositions with coal. According to Traikov, the motives for the strike have expanded and already include private corporate interests. Coal from Pernik is currently supplied not only to Maritsa Iztok 2 TPP, but also to Brickel TPP. Representatives of the state-owned power station, Maritsa Iztok 2, explained that their coal stocks will last 14 days. By an order of the Electricity System Operator (ESO), unit 7 of the power station is expected to stop operation on Saturday. ESO explained that 800 MW of TPP capacities in the East Maritsa basin will be decommissioned tomorrow by order of Minister Traikov at AES Galabovo TPP, Maritsa Iztok 2 TPP and KonturGlobal Maritsa Iztok 3. However, the Ministry denied that information. The decommissioning of TPP capacities is due to the difficulties with the supply of coal. Maritsa Iztok 2 TPP already explained that it will suffer huge financial losses because of stopping operation. The export of electricity is one of the main items in the proceeds of the National Electric Company (NEK) and without it the public provider will have to ask for a price increase. Source: Class (21.01.2012) |
| | Commenting on the strike at the state-owned coal mining company, Bulgarian Energy Minister Traicho Traikov announced that Bulgaria would stop exporting electricity at 01 a.m. on Saturday. Traikov assured, however, that there was enough power to satisfy domestic needs. "Blackmail is not the solution to the problem," the Energy Minister told journalists. On Friday morning, protesting miners blocked a train carrying brown coal from the Pernik coal basin for the Maritsa Iztok 2 Thermal Power Plant (TPP). "They are disrupting the work of their colleagues at the Maritsa Iztok 2 TPP," Traikov stated, warning that a potential act of sabotage aimed at blocking coal supplies to the TPP would be dealt with by the law enforcement authorities. The Energy Minister argued that the strike had degenerated into a rally promoting corporate interests which had nothing to do with the interests of the workers at the Maritsa Iztok Mines. Source: Standart (21.01.2012) |
| | Miners Strike in Bulgaria Is over
Bonuses of 300 leva (about 150 euro) per capita have appeased the striking miners in the Marits Iztok mines. As of yesterday the strike is over. The decision was taken at 6 a.m. after 15-hour-long negotiations between the trade unions, mines management and deputy minister of economy Delian Dobrev. The morning shift in the mines has started working and the first coal supplies have been brought to grass. The sum total of the bonuses to be dispensed to miners amounts to 2,13 million lela. Meanwhile it has transpired that the losses the mines suffered as of the beginning of the strike January 15 amount to over 8 million leva in missed benefits and unsold stocks, investor.bg reported. During the talks with the striking miners the mines management and trade unions reps declared the commitment to work towards technological modernization, higher production efficiency and output in Bulgarias biggest coal mine complex. All sides in the negotiations said they were content with the agreement they reached. Source: Standart (23.01.2012) |
| | The miners' strike is terminated after lengthy negotiations. The exports of electricity are not resumed.
The strike staged in the Mini Maritsa Iztok SPJSC was terminated on Sunday morning after more than 16 hours of negotiations. The information was confirmed on BNR (Bulgarian National Radio) by the Deputy Minister of Energy, Delian Dobrev, who headed the crisis headquarters. He explained that the miners had already restored coal deliveries to the TPPs. As a result, there is no crisis in the electricity supply in Bulgaria. Electricity exports, however, were suspended on Saturday by order of the Energy Minister,Traicho Traikov. These had not been resumed by Sunday evening since it was not clear when the ministerial order would be repealed, commented yesterday the Electricity System Operator (ESO) SPJSC. Dobrev added that the plants had coal reserves for at least 14 days. According to him, no losses were incurred as a result of the strike, but there were benefits foregone. No losses were also incurred because of the suspended electricity exports since this was a force majeure situation when penalties are not imposed, stated Dobrev. According to the data of the mines' management, the benefits foregone amounted to over BGN 8 mln as a result of the miners' strike. Each miner will receive an extra bonus of BGN 300, read the agreement reached with the trade unions. Besides, their demands for improved working conditions were also satisfied. CITUB (Confederation of Independent Trade Unions of Bulgaria) announced that BGN 2.13 mln will be allocated this month to all company employees. Furthermore, the investment programme 2012 of the Mini Iztok SPJSC, in turn, also increased by BGN 22 mln. Besides, another 85 officials will be appointed in the company, announced also the trade union. The signed agreement completely satisfied our demands for safe and healthy working conditions, stated Valentin Valtchev from CITUB, cited by BNR. Source: Class (23.01.2012) |
| | Power Prices to Rise Slightly in 2012
The Head of the State Commission for Energy and Water Regulation, DKEVR, Atanas Semerdzhiev, informed Tuesday that there will be a definite price increase, but no more than 7%-8%, effective July 1, 2012. Semerdzhiev, however, stressed that Bulgaria is an island of cheap electric power compared to other countries in the region, something that cannot last forever. "It will be clear very soon how the strike at the State-owned Maritsa Iztok mines will affect the sectors that count on their coal and the price of electric power. The report will be ready in a week," he said, adding that losses are unavoidable, but because of the relatively short strike, its influence on electricity prices would be minimal. Semerdzhiev reminded that a new Thermal Power Plant, TPP, AES Galabovo, opened doors in August 2011, but also that it produces more expensive power. According to the DKEVR Head, the quantity of purchased "green energy" also influences electric power prices. Source: Standart (25.01.2012) |
| | Construction of new units at Maritsa-Iztok 2 to begin in a year
By the end of the year, we could have a detailed draft for the construction of two new units at Maritsa-Iztok 2, the Governor of Stara Zagora, Nedyalko Nedyalkov, said to Klassa today, explaining that the Bulgarian Energy Holding had returned the project for redrafting. Some time ago, Energy Minister Traicho Traikov announced that units 9 and 10 at Maritsa-Iztok 2 could be built for about five years and would cost some BGN 700 mln. According to Nedyalkov, the first sod can be turned as early as next year. The necessary investments are too large to be undertaken by the state-owned thermoelectric power plant. Therefore, an option is being considered to establish a subsidiary to operate the two new units together with the other two generators of the plant. The company might be listed on the stock exchange and attract funds in that way, explained Nedyalkov. Investments in the new power plants in the area of the Maritsa Iztok Mines have not been projected for the time being, he said. However, AES Galabovo TPP may ask to build new units in the near future. Coal deliveries to Maritsa-Iztok 2 have been suspended because of the floods in the region. The reason is that the Trayanovo 2 Mine has been flooded and cannot supply coal, added Nedyalkov. Supplies to Brickel TPP have also been suspended, reported Darik Radio. Source: Class (07.02.2012) |
| | Workers of Maritsa Iztok Mines restarted operations from the three mines. Supply of coal to Maritza East 2 TPP was expected late yesterday. The extraction of coal at the Radnevo mines was halted yesterday morning. The reason was the heavy snowfall in the region and flooding in the mines. Currently the company is working on restoring the operation of the pumping station, which flooded us and restoration of the railroad between Mine Troyanovo 1 and Mine Troyanovo 2, which prevented the transportation of coal. Maritsa Iztok Mines has restored the supplies of coal to Brikel as well. Source: 3e-news (08.02.2012) |
| | Economic expectations of Bulgarians fall to their level of 2009
At the end of 2011, the economic expectations of Bulgarians returned to their record low levels of May 2009, shows a survey of the Nuremberg-based GfK institute. The index of economic expectations in our country for Q4 2011 is -25.5 points. Despite the enormous dose of pessimism, however, Bulgaria is among the countries with the lowest share of negative attitudes. Before Bulgaria in the ranking are only Germany, where the index was -0.3 points, and Spain with 3.6 points. According to GfK, the local and presidential elections were the major topic in Bulgaria at the end of 2011 and influenced not only the political debate, but also the economic policy. Two strikes at the Bulgarian State Railways and the Maritsa Iztok Mines - dominated the political scene and caused losses higher than expected. These events stimulated the discussions about the future development of some of the oldest economic sectors that have not been reformed yet. The survey also points to the ambition of the Government to reform these sectors in 2012. The population, however, feels uncertain about the economic and financial situation. The recovery depends mainly on exports, relying heavily on EU countries. Consumers do not believe that the Bulgarian economy will be able to stay away from the processes in Europe and rather expect the economic growth to decrease in the coming months. The pessimistic attitudes are not characteristic of Bulgaria alone. According to GfK, the majority of consumers on the Old Continent are still worried about the economic situation which results in a reduction of their spending. Source: Class (14.02.2012) |
| | Exports of electricity to be restored on Tuesday
Exports of electricity will be restored in the early hours of tomorrow, told BNR Mihail Andonov Executive Director of the National Electricity Company (NEK). He explained that, on Friday, an order was issued by the Minister of Economy, Energy and Tourism Traicho Traikov that exports should be resumed. Andonov said that all electricity retailers were aware of the change. This is possible after the Maritza East Mines restored the reserves of coal of the Thermoelectric Power Plants (TPPs) in the region. This was the second ban on exports of electricity this month. The first time, exports were stopped because of the strike of the workers from the Maritza East Mines. The current ban was introduced due to the high consumption in the country in the extremely cold weather. Another reason was that the mines were not able to deliver coal to the TPPs because of flooding there. In recent days, the load of the energy system will not exceed 6,700 MW, which is normal for consumption in the winter months. Experts from the Electricity System Operator (ESO) do not expect the consumption of electricity to exceed 6,530 MW in the coming days. ESO has no data about the amounts of electricity transferred through the country in the last 3 days. According to the data from February 16, between 457 MW and 656 MW of electricity were transferred through our territory at different times of the day, and these quantities came from Romania. Exports were mainly to Serbia and Macedonia, and smaller amounts of electricity were transferred to Greece and Turkey. NEK suffered damages due to the cancelled exports of electricity because the company manages to cover its loss from the sale of electricity on the regulated market with the proceeds from exports. Source: Class (20.02.2012) |
| | Varna TPP to trade with carbon emissions
The Varna Thermoelectric Power Plat will participate in the trading with carbon allowances together with other TPPs and a closure of the company cannot be expected, said Executive Director Kamen Boshnakov, quoted by Radio Focus. As of 2013, all TPPs in the EU will have to buy carbon allowances, in order to continue operating. The plant has made its investment proposals, which should be included in the National Plan for 2013 2020. This plan will ensure cost- free allowances for the company, but theVarna TPP will be obliged to invest in installations reducing carbon dioxide emissions, said Boshnakov. The plant is expected to get about 4 mln tons cost-free allowances for the period 2013 - 2015. "Payments of carbon allowances will inevitably affect the price of electricity. This refers not only to the Varna TPP but to all other Thermoelectric Power Plants," he said. In the period October - late January, the cold reserve has been activated three times because of the bad weather, reduced production of the Hydroelectric Power Plants and the strike at the Maritsa - Iztok Mines, recalled Boshnakov. The Varna TPP operates three blocks from the cold reserve and provides about 60% of the foreseen quantities in Bulgaria. We are currently in negotiations with the National Electricity Company on the new contract for the cold reserve. Currently, theVarna TPP operates on high calorie coal, imported from the Ukraine and Russia, but despite this fact, the construction of Flue-Gas Desulfurization (FGD) plants and installations reducing nitrogen oxides will be imperative. Source: Class (21.02.2012) |
| | Some BGN 39 mln from concession fees remain for municipalities
Nearly BGN 39 mln remained as revenues of municipalities after the adoption of amendments to the Mineral Resources Act in the middle of last year, announced the Ministry of Economy, Energy and Tourism during the official handing of checks for the money from concession fees in the five municipalities with the biggest concessions. The amount is 20% more than planned, said the Economy Minister, Traicho Traikov. According to legislative amendments, 50% of the concession fees would remain for municipalities, whereas previously this percentage was 30. If the respective municipalities are small, 100% of the concession fees shall be remitted to their budgets, the amendments stipulate. Last year, local governments received BGN 24 mln, and another BGN 15 mln since the beginning of this year, out of which BGN 12 mln from the top concessionaires of Maritsa Iztok Mines, Elatsite Med (Copper), Asarel Medet, Chelopech Mining and BGN 3 mln from smaller ones. Revenues from concession fees for 2011 amount to BGN 63,247,846, out of which BGN 23,907,378 will be remitted to municipalities. A total of 130 municipalities receive money from concession fees, but the most sizable proceeds for to Chelopech, Radnevo, Panagyurishte, Galabovo and Etropole. Their mayors said they would use the funds to create conditions for sustainable economic growth, to continue after the expiry of the concessions as well. More than 159 permits for prospecting for mineral resources were granted last year and contracts were signed for more than 100 new concessions. Companies that were licensed to develop the deposits will invest over BGN 200 mln in facilities for exploration and production. They will hire 1,500 workers, read provisions in the clauses of the concession contracts. Source: Class (02.03.2012) |
| | Bulgarian municipalities' concession revenues for 2011 amounted to close to BGN 39 M, according to Traicho Traikov, Minister of Economy, Energy and Tourism. In a Thursday statement during the official cheques award ceremony, Traikov said that the biggest sums would be transferred to five municipalities within the next few days. The list of top performers includes Chelopech (Chelopech Mining), which will receive BGN 2.4 M, Radnevo and Galabovo (Maritsa Iztok Mines), which will get BGN 2.3 M and BGN 1.7 M, respectively, Panagyurishte (Asarel Medet), which will add BGN 1.9 M to its budget and Etropole (Ellatzite-Med AD), which will get BGN 1.7 M. In the beginning of July 2011, amendments to the Mineral Resources Act entered into force increasing the share of concession revenue transferred to the municipal budget from 30% to 50%. Traikov explained that Bulgaria's total concession receipts for 2011 came in at BGN 63.2 M. Source: Capital (02.03.2012) |
| | Syndicates at Maritsa Iztok Mines demand a new ministry
The Podkrepa Labour Confederation and the Confederation of Independent Trade Unions in Bulgaria (CITUB) demand a ministry of energy to be established at the state-run Maritsa Iztok Mines, Darik Radio reported. According to the syndicates, the existing Ministry of Economy, Energy and Tourism is not paying enough attention to the energy sector and as a result, the top domestic coal mining company faces a danger of stopping operation due to lack of equipment and workers. According to the syndicates, more than 40 days after the end of the seven-day strike in January 2012, the agreement concluded is not being observed and the workers are still working under extremely hard conditions. The Labour Inspectorate has found violations of the labour legislation. It has established that some positions at the Mines are occupied by people without the necessary qualification and competence. All this is a result of the lack of attention on the part of the Ministry of Economy, Energy and Tourism to the mining sector. We are behind the touchline because there is not a single miner in the Ministry, said Gencho Genchev, a Podkrepa leader, and announced that the miners wanted a separate ministry with the energy sector as its single responsibility. Due to the lack of sufficient people and equipment, combined with higher production requirements, the company is facing a technological suspension of work, warned Gencho Genchev. Source: Class (07.03.2012) |
| | A debt of BGN 7.2 bn accumulated by state-run companies
State-run companies have accumulated a total of BGN 7.2 bn in debt, which is a jeopardy to the stability of the Bulgarian economy, Georgi Angelov, senior economist at the Open Society Institute, pointed out at a discussion called The Economic Situation 2012. According to him, the liabilities of state-owned firms are a serious obstacle to the development of the countrys economy because most of them hold a dominant position on the domestic market and if these fall into insolvency, the State has to repay debts. Presently, however, the Government has no free resources to operate in such a situation, explained the economist. The National Electric Company (NEK) is the top debtor with aggregate liabilities of BGN 2.17 bn, followed by the National State Railways (BDZ) and the Kozloduy NPP, whose debts amount to BGN 767 mln and BGN 750 mln, respectively. Thus, the liabilities of these three state-run companies alone exceed BGN 3.68 bn. Debts over BGN 0.5 bn have also been accrued by Maritsa Iztok Mines 2 (BGN 648 mln) and the Sofia Central Heating Utility (BGN 548 mln). The other big debtors with liabilities exceeding BGN 100 mln are: Sofia Airport (BGN 150 mln), Bulgartransgaz (BGN 107 mln), the Sofia Public Transport Company (BGN 164 mln), Port Infrastructure (BGN 175 mln), Maritsa Iztok Mines (BGN 209 mln) Railway Infrastructure (BGN 213 mln) and Bulgargaz (BGN 341 mln). According to Angelov, some financial institutions, such as Municipal Bank PLC and the Bulgarian Development Bank, also have sizable liabilities. However, the structure of banks receivables is different and the liabilities of these two financial institutions, amounting to BGN 2.15 bn, are actually reported as attracted funds, specified the economist. According to him, a public register is needed for monitoring these debts. Angelov pointed out that according to data from the end of January 2012, Bulgarias aggregate public debt stood at BGN 11.68 bn, out of which BGN 4.92 bn was internal debt. Economists warned that over the next eight or nine months, Bulgaria should repay a total of BGN 3 bn in debt settlement for bonds and deficit. According to Lachezar Bogdanov, Managing Partner at Industry Watch, the Cabinet has to introduce a balanced budget. Had that happened a year ago, we would not be wondering now how to find BGN 1.6 bn for paying the bonds maturing in January 2013. Bulgarias revenues from privatisation are low, its reserves have decreased and it is not clear who will lend us this money, Bogdanov stated. Dimitar Chobanov, economist and professor at the University of National and World Economy, said that the Government could not raise these funds on the domestic market. A few days ago, the Finance Ministry issued government securities worth BGN 50 mln, but bonds worth only BGN 42 mln were purchased because investors seek higher returns, which the Bulgarian bonds cannot yield. According to Chobanov, seeking financial assistance from the IMF is a realistic option, despite the negative effects which such funding could have. Georgi Angelov also commented on the issue of resorting to the money from the so-called Silver Fund. The decrease of the fiscal reserves from BGN 12 bn in 2008 to BGN 4.5 bn in 2012 is among the main economic problems in Bulgaria. He expressed concern that if money for future payment of pensions was set aside, the fiscal reserve would decrease from BGN 4.5 bn to some BGN 2.5 bn. However, this money cannot be used because of Bulgarias commitments to the European Union. Thus, Bulgaria will practically remain without any reserves, the economist pointed out, specifying that such steps would position our country at the bottom in the European Union in terms of amount of reserves. Source: Class (09.04.2012) |
| | Mines Maritsa Iztok launched the largest of three projects financed by the fund to support the decommissioning of NPP Kozloduy. The project is worth over EUR 12.5 million, of which EUR 8.8 million are grants. The first delivery of the main contractor Siemens Bulgaria is already a fact - cables for medium voltage worth BGN 7 million, the company announced. It was the beginning of a long-awaited rehabilitation and modernization of equipment in two mines of the company. The delivery included a new current-collection devices and batteries for excavators. The main objective of the project is to improve power quality of heavy mining equipment, reducing electricity costs and modernize the technology used. Source: Standart (18.04.2012) |
| | Bulgarian coal mining complex Mini Maritsa Iztok said it started the construction of a 50 million facility for transportation of coal to power plants AES Galabovo and Brikel. The construction works are planned to be completed in 14 months, the company said in a statement on its website on Wednesday. The project is fully financed by Mini Maritsa Iztok. The facility is of strategic importance to the mining complex because it will allow it to exploit the Troyanovo-north deposit. Source: Standart (29.06.2012) |
| | Dozens of violations in the state-owned enterprise Mines Maritsa Iztok SPJSC were revealed by a comprehensive review of the public procurement procedures undertaken by the Agency for State Financial Inspection (ASFI) for the period 2009 2011. Inspectors have imposed a total of 100 fines on current and former executives of the mining company, and another 17 violations were not administered, because the three-year limitation period had expired. Some of the violations are serious indeed. The Agency has determined that management has concluded 11 contracts for which a tender had not been made, although all prerequisites for this were available. Their total value is BGN 1.092 million. This is the first comprehensive examination under the Public Procurement Act of ASFI in Mines Maritsa Iztok, but the violations are by no means the first in recent years. The management of the company declined to comment the report on the grounds that it is not yet public. Source: Capital (10.07.2012) |
| | Bulgarian provider of repair services to power facilities Centralna Energoremontna Baza was awarded three projects in Macedonia worth more than EUR 250,000 in total. The company is to repair a transformer from the power line between Bulgaria and Macedonia Dubrov - Stip. The aim is to prevent facility's emergency stop. Macedonian electricity company MEPCO Corp. is contracting authority, which chose the Bulgarian company after an auction. The transformer to be repaired was produces thirty years ago and worth EUR 2 million. Except for Dublovo Centralna Energoremontna Baza will repair substation Skopje 4, again on behalf of MEPCO. Total amount of the three repairs is assessed to more than EUR 250 000. Source: Other (01.08.2012) |
| | Extraction industry on the rise in 2011
Extraction industry in Bulgaria continues its growth in 2011, though it couldnt reach its pre-crisis levels. Yield of minerals reached 91.95 million of tones, which is by 13% more, as compared to 2010. Yet, it is still below the record 102.56 million reached in 2008. Value of produce increased by 21% to BGN 2.8 billion, which amounts to nearly 4% of gross domestic product (GDP). This is evident form data of The Bulgarian Chamber of Mining and Geology. Recovery in construction materials output is a good sign. Coal and metallic minerals remain leading for the sector. They insured 74% of extracted quantities. There is highest increase in volume of extracted liquid fuels- by 47.8%. Melrose resources and Oil and Gas Exploration and Production are the two companies that operate in the branch. Companies produced a total of 443 cubic meters natural gas and 22 thousand tones of oil. The considerable rise in gas is due to Melrose recourses work. Best production results are registered for Overgas Inc, owner of five of gas distributing companies, in the sub sector of liquid fuels. There is considerable increase in extraction of coals (mostly lignite). According to NSIs preliminary data, extracted quantity went up by 21%. As a whole, extraction of coals is the second sub sector in value of production- a total of BGN 808.3 million for 2011. Production of metallic ores continues to have most impressive contribution to the countrys GDP. It provided for half of the total volume, registered by mining companies in the country. Last year companies of this sub sector ended up with produce, assessed to BGN 1.5 billion, or by 25% more, as compared to 2010. At the same time extracted ore increased by 4%, meaning that big part of the increase is due to prices. Ore-extracting companies are leading in revenues in the sector. Last year The Bulgarian Chamber of Mining and Geology awarded Elatsite-med as a top company. Revenues from gold extracting companies went up by more than 65% in 2011, and thus reached BGN 299.1 million. Source: Capital (20.08.2012) |
| | Bulgarian Miners Threaten Strike on Professional Day
Miners at Bulgaria's biggest State-owned coal-mining company, the Maritsa Iztok Mines, will go on strike if the class labor contract is not signed by the end of August. Speaking from Radnevo Saturday, Plamen Dimitrov, President of the Confederation of Independent Syndicates in Bulgaria (KNSB), warned that the patience of the workers is coming to an end. Dimitrov further reported that he has met with Prime Minister, Boyko Borisov, to inform him that the contract had to be signed on April 1, but has not yet materialized, thus the KNSB-issued August 31 deadline. The trade union leader, however, said that there weren't many reasons for optimism since the talks with the mine's management have stalled. Dimitrov was in Radnevo on the occasion of the Professional Day of Bulgarian Miners, which is marked on the Day of Saint Ivan Rilski. Source: Duma (20.08.2012) |
| | Bulgarian Economy Minister Delyan Dobrev has reshuffled the management of two major state energy corporations the National Electric Company NEK Jsc and the Maritsa East Mines Jsc, the press service of the Economy Ministry announced. Dobrev has thus accepted a resignation submitted by Ivo Lefterov, the head of NEK. Lefterov will be replaced by Krum Anastasov. The Bulgarian Minister of Economy, Energy, and Tourism has at the same time dismissed Evgeni Stoykov, the CEO of the Maritsa East Mines Jsc (Mini Maritsa Iztok EAD), and has appointed Teodor Drebov in his position. "Evgeni Stoykov's dismissal is necessitated by the need to improve coordination and the speed of work in the company," the Economy Ministry explained. The management reshuffle has been approved by the boards of NEK and the Maritsa East Mines as well as by the management of their parent company, the Bulgarian Energy Holding (BEH). The new CEO of NEK, Krum Anastasov, is a graduate of the Sofia Technical University; he has specialized economics and management at KPMG Advisor and Eagle's Flight Creative Training Exellence Inc.. Anastasov has 21 years of experience in the energy sector, including 10 years at senior management positions. He is a former employee of Czech-owned utility in Western Bulgaria, CEZ Razpredelenie Bulgaria AD. Until now, he has been the head of the regulated market department at NEK. The new CEO of the Maritsa East Mines, Teodor Drebov, is a mining engineer who graduated from the Sofia University of Mining and Geology back in 1986. He has been the director of other Bulgarian state-owned mining companies "Antratsit" and "Bobov Dol", and has worked at the former State Commission for Energy, and State Agency for Energy and Energy Resources. Until now, he has been a employee of the Natural Resources and Concessions Directorate at the Bulgarian Economy Ministry. Drebov has 26 years of experience in his field. Source: Capital (21.08.2012) |
| | State-owned Maritsa-Iztok 2 Thermal Power Station (TPP) is in need of additional working capital and to this aim the company is looking for a bank that could offer it a BGN 15 million credit. A check in the public procurement register shows that Maritsa Iztok 2 is the second state company, after Bulgargaz, that is seeking a loan for working capital in the last two years. Gas supplier Bulgargaz has already secured a BGN 60 million credit from Corporate Commercial Bank.The loan will be structured as an overdraft. The company estimated that if they are to service the loan they will have to pay an additional approximately BGN 2.8 million in the next three years. Source: Trud (23.08.2012) |
| | Ecoagrostroy AD was granted a concession for extraction of construction materials-sands, of deposit Gredo, sections "Ohrid" and "Palilula" in Boychinovtsi municipality. The are of the concession is assessed to 398 674 square meters. The term of the concession is 35 years. For that period he company is expected to invest more than BGN 131 thousand for development of the quarry. Revenues form concessions payments are assessed to BGN 1 113 000. Source: econ.bg (30.08.2012) |
| | Bulgarian Energy Holding (BEH) announced a competition for rating agency. The mega company involves the largest state-owned energy companies - NPP Kozloduy, NEK, TPP Maritza East 2, Mines Maritsa Iztok, Bulgargaz, Bulgartransgaz and Bulgartel. The money from the issue will be used to help the two troubled companies - NEK and Bulgargaz. The announced competition for rating agency is divided into two stages - credit rating and its transformation into issue. The first phase should be completed at most for two months, and the second for a month and a half. The competition can be entered only by agencies, which over the past three years have performed at least 3 successful agreements on rating energy companies with a turnover of at least EUR 1 billion. Furthermore, their previous guarantors must have successfully issued bonds for a minimum of EUR 250 million. Source: Trud (17.09.2012) |
| | Bulgarian Mines Contract Risk Engineering for Energy Efficiency
Bulgarian company Risk Engineering AD has been contracted to boost the energy efficiency of the heavy mining equipment at the state-owned Mini Maritsa Iztok EAD (Maritsa East Mines). The work of the contractor is financed with EUR 4.565 M under the EU program for the decommissioning of the old reactors of the Kozloduy NPP, according to a media statement of the coal mining company. Risk Engineering AD has been assigned the construction (design, delivery, installation, testing and commissioning) of on-line load control of the operation of the belt conveyors and excavators and the rehabilitation (design, delivery, installation, testing and commissioning) of the power supply system to enable energy management of equipment through remote reading and power quality analysis. The project is to be wrapped up in 104 weeks, or two years. The contract with Risk Engineering AD has already been signed. The company was selected via a tender held in line with the rules of the European Bank for Reconstruction and Development (EBRD). This is the second of three projects for energy efficiency rehabilitation of the Maritsa Iztok Mines financed under the Kozloduy International Decommissioning Support Fund (KIDSF) with a total of EUR 21.5 M. The grant provided to the Maritsa Iztok Mines by the KIDSF amounts to 70% of the total cost, while the remainder is co-financing. Source: Dnevnik (26.09.2012) |
| | The revenues of the Bulgarian Energy Holding (BEH) JSC for the first nine months of 2012 were double the amount for the same period of last year, showed the published financial report of the Finance Ministry. The gross profit for January-September is almost equal to the revenues, totaling BGN 560.86 mln, while last years profit before taxes was BGN 235.1 mln. The gross profit of Bulgartransgaz for the period amounted to BGN 94 mln, up from BGN 83 mln last year. The Kozloduy NPP concluded the first nine months of 2012 with a pre-tax profit of BGN 142.6 mln, compared to BGN 178.2 mln for the same period of last year. The companys revenues amounted to BGN 655.1 mln, registering a slight decrease of 2.4%, compared to the same period of 2011. Proceeds from electricity accounted for the largest share (95%) in the structure of revenues from the overall operation of the plant. These decreased by BGN 25.75 mln (4.03%), mainly due to the 3% drop in the electricity sold during the period, compared to 2011. The costs incurred for the activities of Kozloduy NPP amounted to BGN 515.4 mln. For the first nine months of 2012, another company of BEH the National Electric Company (NEK) accumulated a loss of BGN 77.2 mln, compared to a profit of almost the same amount for January-September 2011. This is due to the low selling wholesale prices of electricity on the regulated market, as the company has already warned. However, after the hike of electricity prices as of July 1, 2012, NEK posted a profit for Q3 of the year, as per preliminary data. Source: Trud (05.11.2012) |
| | Bulgaria's Maritsa Iztok 2 Thermal Power Plant to Get 2 New Units
The Bulgarian Energy Holding (BEH) and the management of the state-owned Maritsa Iztok 2 thermal power plant (TPP) have an investment plan to build two new units at a specially earmarked site at the plant. The announcement for the construction of the future units 9 and 10 at the Maritsa Iztok 2 TPP was made by Pencho Penchev, director of the Repairs Directorate at the plant. Speaking Friday in the southern city of Stara Zagora, Penchev made clear that the opportunities for building units 9 and 10 at the Maritsa Iztok 2 TPP were being studied and the government was looking for a strategic investor. Penchev noted that the costs and revenues would be split on the basis of percentage ownership. He explained that the entire plant, including the units that were to be built, would be run by the staff of the Maritsa Iztok 2 TPP. Penchev announced that the option of supplying coal from the state-owned Maritsa Iztok Mines to the two new units of the TPP was being examined. He said that each of the new units would have an increased capacity of 280 MW. The head of the Repairs Directorate at the Maritsa Iztok 2 TPP announced that the projects would be implemented by the repair staff of the state-owned company and supervisors from Japan. Penchev emphasized that the scope of the reconstruction had been expanded and the high-pressure cylinder would be made in Japan by Toshiba. He said that the reconstruction would add at least 40 MW to the total installed capacity of the Maritsa Iztok 2 TPP of 1600 MW. Source: money.bg (19.11.2012) |
| | The state-run Bulgarian Energy Holding (BEH) expects to post a profit of some 36 million levs ($24.4 million/18.4 million euro) this year on gross revenue from sales of 6.46 billion levs, the companys chief executive officer said on Thursday. The company plans a bond of no less than 350 million euro ($465.1 million) in 2013 and expects to be assigned a credit rating by Fitch by the middle of January before proceeding with the issue. It has not been decided how the proceeds will be spent, Mihail Andonov told a press conference in Sofia. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, NEK and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. The companys assets equal 12.8 billion levs while its capital is 8.84 billion levs. About 22,600 people work for BEH. Source: Capital (21.12.2012) |
| | Mines Maritsa Iztoks Board of Directors has a new chairman. Dimo Dimov has chosen by the members of the Board. The change entered into force after it was registered in the Registry agency. Dimov was manager quarries in Devnya Cement AD. Source: Darik Radio (01.03.2013) |
| | Unions of Maritsa-Iztok want a meeting with Economy Minister
Trade unions in Maritsa Iztok insist on meeting with the new Minister of Economy Assen Vassilev and representatives of the State Energy and Water Regulatory Commission regarding the crisis in the mines caused by the reduced workload of the TPPs. Currently in Maritsa-Iztok work 20% of the installed capacity, said Gencho Genchev, chairman of the trade union at Confederation of Labor - Podkrepa in the enterprise. In this regard, it was decided to optimize cost and mode of operation for March and April, as part of the miners go on vacation and other go to two shifts instead of four, said Genchev. He expressed concern that if the complex continues to operate at 20% of its capacity, it would be fatal for the energy sector in Bulgaria. Miners push for the energy regulator to submit to the interim government a proposal to reduce or completely eliminate the transfer charge, which increases the cost of electricity. Source: investor.bg (18.03.2013) |
| | Starting Monday, workers at Bulgaria's state-owned Maritsa Iztok Mines will switch to a two-shift regime from a four-shift regime due to the shrinking coal demand of the thermal power plants in the Maritsa Iztok Complex. The council of trade unions will hold a sitting Monday to discuss measures to solve the crisis, according to reports of the Bulgarian National Television (BNT). The capacity of the four thermal power plants in the Maritsa Iztok Complex has been reduced to 20%. Some units of the TPPs of the Complex were switched off by the Electricity System Operator (ESO) in the past two weeks due to the low electricity consumption in the country and the reduced export rates, which in turn reduced coal demand. Gencho Genchev, Chair of the Podkrepa Labor Union at the company, made clear that the step had made it necessary to send some of the workers on a forced leave while other had to switch to a 2-shift regime of work from a 4-shift regime. Representatives of trade unions at the Maritsa Iztok Mines have demanded a meeting with Bulgaria's caretaker Economy and Energy Minister Asen Vasilev and the State Commission for Energy Regulation (DKEVR) to draft urgent measures to solve the crisis. Meanwhile, trade unions at the Maritsa Iztok Mines will also meet Monday to discuss the steps that the miners should take. Genchev suggested that the meeting was likely to result in a decision to start protests, adding that if the Complex kept functioning at 20% of its capacity, this would "not only be fatal for Bulgaria's energy sector but will also leave thousands of miners and energy workers without a job." Source: Capital (19.03.2013) |
| | Bulgarias Electricity System Operator (ESO) said it imposed limits on electricity generation in the country due to imbalances between consumption and production. The limits concern all energy producers, including photovoltaic, wind, nuclear and thermal power plants, ESO said in a statement on its website late on Wednesday. Following the announcement, power distributors CEZ Razpredelenie Bulgaria [BUL:3CZ] and EVN Bulgaria said they will disconnect temporarily from the grid wind and photovoltaic plants. The measure affects all wind power and photovoltaic power plants in the western regions of Sofia, Pernik, Kyustendil and Montana between 0800 and 1500 GMT on Thursday, CEZ pointed out. The switchoff concerns also 40% of green energy producers in eastern Bulgaria from 0700 to 1400 GMT today, EVN said in its press release. Both companies said that if necessary they may adopt stricter measures. CEZ Razpredelenie Bulgaria is a local unit of Czech energy group CEZ. Its business covers the city of Sofia, the Sofia region and parts of western and northern Bulgaria. EVN Bulgaria is part of Austrian utility EVN. It provides electricity distribution services in southern and southeastern Bulgaria. Source: Capital (05.04.2013) |
| | Bulgaria's energy holding co rejects single bid for 250 mln euro loan
The Bulgarian Energy Holding (BEH) said it turned down a bid by Deutsche Bank, the single candidate to extend a 250 million euro loan to the company, after it failed to meet the tender requirements. Deutsche Bank was disqualified because it failed to submit a document certifying it had paid the required guarantee, BEH said in a statement on its website last week. The tender procedure was canceled. BEH plans to borrow the money to refinance a credit taken out by one of its units, the National Electricity Company. Another option to raise the money which the holding company is contemplating is a bond issue. It has received six offers for an advisor to the planned issue. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. Source: mediapool.bg (16.04.2013) |
| | Bulgarian energy holding has uncollected debts from its subsidiaries to the amount of over BGN 437 million. This is evident from the company report for the first quarter of the year. Among the largest debtors are as follows: National Electricity Company (NEC) and Bulgargaz. Due to shrunk revenues, profit of the holding is by BGN 1.5 million smaller, as compared to the same period last year. BEH is composed of the following companies: TPP Maritsa iztok 2, Mines Maritsa Iztok, Bulgartel, Bulgartransgaz and Nuclear Power Plant Kozloduy. Source: Trud (14.05.2013) |
| | Bulgarias national electricity company NEK posted a consolidated loss of 192 million levs in 2012, the companys executive director said on Wednesday. The company reported a pre-tax operating loss of 234 million levs, NEK executive director Ivo Lefterov said at the Bulgarian parliament, broadcast by the public TV channel (www.bnt.bg). The main reasons for the weak financial results of NEK last year, according to Lefterov, were the unfavorable electricity purchase contracts with renewable energy producers and thermal power plants. Source: Darik Radio (23.05.2013) |
| | EC to Bulgaria: Shut Down Inefficient Power Plants!
The European Commission has released its report on the Bulgarian energy sector, making a bleak prognosis of shrinking electricity consumption due to population decline in the next 10 years. The Commission advises reexamination of the condition of operating power plants and closure of the plants that are least efficient and most damaging to the environment, Bulgarian caretaker Deputy-PM and Minister of Regional Development Ekaterina Zaharieva said presenting the report. A similar report by the World Bank, presented by the caretaker Minister of Economy, Energy and Tourism Asen Vasilev, states that the current power plants will be in excess even in 2030. A lack of transparency due to the subordination of all power associations to the National Energy Company (NEK), National Commission of Energy and Water Regulation (DKEVR) ineffectiveness are among the weak points of the Bulgarian Energetics, emphasized in the reports. Renewable energy sources have not been efficiently introduced in Bulgaria, according the EC and WB reports. The World Bank estimated that NEK's obligation to buy energy from such sources will cost the country BGN 1.2 B annually. DKEVR plans to earmark just this amount of money for energy from renewable sources for the next regulation period. The reports also stress on the inefficient system of protecting energy poor households -those 61% of Bulgarian households that give 10% of their income for energy consumption, and propose an expansion of the financial support offered to them. Source: Standart (29.05.2013) |
| | Trade Unions: Bulgaria's Maritsa Iztok Mines Driven to Bankruptcy
Trade union representatives at Bulgaria's state-owned Maritsa Iztok Mines have cautioned that the company faces a tough financial situation, with efforts underway to freeze bank accounts, cut jobs and delay salaries of workers. The representatives of the Podkrepa Labor Confederation and the Confederation of Independent Trade Unions in Bulgaria (CITUB) at the coal mining company reported their observations Friday at a meeting of the public council of the Ministry of Economy and Energy, according to reports of investor.bg. Bulgaria's newly sworn-in Energy Minister, Dragomir Stoinev, guaranteed, however, that the workers would be paid their salaries and there would be no staff cuts at the mines. Valentin Topalov, Chair of the Podkrepa Labor Confederation at the Maritsa Iztok Mines, argued that the launch of bankruptcy proceedings was forthcoming and one of the shifts at the coal mining company would be laid off from July 1. Topalov also called for an urgent decision on the price of coal, saying that if the production process was stopped, the restart would be difficult. The sitting of the public council on energy, during which a new pricing methodology for electricity is to be presented, is still underway. Stoynev suggested that it was best not to discuss proposed amendments to the Energy Act as they had not yet been reviewed by the government. He commented that an essential task in the sphere of energy was to prevent a power price hike. He assured that the public council at the Ministry of Economy and Energy would remain, adding that it was a good idea to create such bodies at the other ministries. He noted that the government had to make swift and adequate decisions as energy was in a state of collapse. Bulgaria's new government, headed by Prime Minister Plamen Oresharski, took an oath of office on Wednesday. Source: investor.bg (03.06.2013) |
| | Major Reshuffles Hit Bulgarias N-Plant, Energy Holding
Bulgarias state energy holding company, which groups the country's top energy assets, including its sole nuclear power plant Kozloduy, has seen a new wave of reshuffles, it emerged on Wednesday. The Board of Directors of the Bulgarian Energy Holding Ltd. released Borislav Borisov from the Board of Directors of the National Electricity Transmission Company. He will be replaced by Sava Savov. Major changes have also been made in the management of the countrys sole nuclear power plant Kozloduy. Valentin Nikolov, Teodor Shopov and Valentin Gruev were released from the Board of Directors, to be replaced by Ivan Genov, Aleksandar Nikolov and Georgi Hristozov. The Executive Director of the mining company Mini Maritsa Iztok Ltd. Teodor Drebov and its member of the Board of Directors Dimo Dimov have also been released. The newly elected members in Mini Maritsa Iztok Ltd. Board of Directors are Stanimir Kazlachev and Shteryo Shterev. There is also a change in the line-up of Maritsa East 2 Board of Directors. Georgi Hristozov was released and replaced by Mihail Mitkov. Kozloduy is the only nuclear power plant in Bulgaria and the largest electricity producer in the country, providing more than one third of the national electricity output annually. The company is entirely state-owned and a subsidiary of the Bulgarian Energy Holding. It has raised safety concerns, and the country agreed to shut four of its reactors as a condition of joining the European Union. Under that treaty, Kozloduy was to be decommissioned by 2009, but the work was not completed on time. Bulgaria therefore asked that the EU funding be extended until 2013, to allow it to be completed safely. BEH was incorporated in 2008 with a decision of the Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Source: Capital (27.06.2013) |
| | Miners wants more expensive coals, threaten with strike
Miners from Mines Maritsa Iztok are preparing for effective strike after the 15th of July. Till then they are giving ultimatum of the ministry of the economy and energetics. They insist that the minister raises price of coals extracted from them, so that the company stops accumulating losses. In that way, the company may save up dismissals in the autumn. Miners persist that Mr. Stoynev increases the price per ton of fuel equivalent of BGN 71 at least to BGN 89. This higher price of coals may be taken up by the whole chain of electricitys pricing. It is to guarantee that miners keep their jobs, too. At present every day a ton of extracted coals brings BGN 6 losses for the mine. For the first half of the year at 9 million tons of coal extracted, Mines Maritsa Iztok has amassed losses to the amount of BGN 38 million. Trade unions stated that they are worried that in October about one third of Bulgarian miners will lose their jobs. Furthermore, miners are dissatisfied with the decision for 5% cut in electricity price without change in coals prices. There are reserves enough in order coals price to be increased, Plamen Dimitrov said and pointed out re-negotiations of the so called stranded supplements with the two U.S. TPP and RES-s. According to trade unions decrease of transfer fee from BGN 34 to BGN 12 is not enough to unclog exports. Pledged revenues from the sale of carbon emissions amounting to BGN 200 million, with which to cover part of the current expensive RES-s, are too low. Trade unions insist on increase of price of ton extracted colas to take effect till the 15th of July, so that from the 1st of August State Energy and Water Regulatory Commission to set the new price into the new energy mix. Source: econ.bg (01.07.2013) |
| | Mines Maritsa Iztok Jsc. has a new CEO. This is Stanimir Kazlachev who days ago was appointed to the Board of Directors of the mining company, together with Shteryo Shterev. They took the places of the released Dimo Dimov and Teodor Drebov. Now Kazlachev is selected as CEO of the company, and Shterev as Chairman of the Board of Directors. Nuclear Regulatory Agency (NRA) has a new chairman as well. Due to the expiration of his term, Sergey Tsochev was released of office. His place was taken by Lachezar Kostov, who is deputy chairman of the NRA since 2006. Source: Standart (04.07.2013) |
| | Bulgaria's Energy Minister Pledges Increase in Coal Prices
Dragomir Stoynev, Bulgaria's Minister of Economy and Energy, has vowed an increase in coal prices by end-2013 from the current "unrealistically low" levels. "Coal prices have not been increased over the past three years and a half and have even been reduced. The prices at which the Maritsa Iztok Mines are functioning now are abnormal, they are artificially low and the company is operating at a loss," Stoynev explained Tuesday, as cited by Darik radio. "I can promise that coal prices will increase by the end of the year," Stoynev declared, adding that the tariffs would most probably be updated in the period September end- 2013. Dragomir Stoynev yet again reiterated the government's commitment to reduce the electricity prices. He suggested that the legal changes and measures adopted by the government would help stabilize the energy system despite the fact that the National Electricity Company (NEK) was de-facto bankrupt. "The price of electricity will not increase for the end consumer and for the business sector. The Minister assured that neither end consumers nor the business sector would see electricity tariffs go up thanks to the legal amendments adopted by Parliament. "NEK is in a critical condition, NEK is de-facto bankrupt and I am not trying to hide it. Its debts amount to nearly BGN 2 B, but one way or another, we believe that we will manage to save the system from bankruptcy thanks to the measures we adopted," Bulgaria's Economy and Energy Minister explained. Asked to comment on the report of the State Agency for National Security (DANS) citing fraud schemes and money laundering operations conducted through renewable energy projects, Stoynev said that the findings were worrying, adding that he would present more information on the matter in a report to Parliament. Source: Darik Radio (10.07.2013) |
| | Bulgarian Trade Unions Fear 3500 Job Cuts in Mining Industry
Mining industry trade union representatives attended an extraordinary meeting with Economy and Energy Minister Dragomir Stoynev on Tuesday to discuss the new coal prices and the workload of the Bobov Dol thermal power plant. The meeting was also attended by Maya Manolova, Deputy Parliament Chair, according to reports of news.bg. Earlier on Tuesday, it was announced that Stoynev had announced new coal prices per ton of conditional fuel. Speaking after Tuesday's meeting with Stoynev, Vladimir Topalov, head of the mining federation at the Podkrepa Labor Confederation, told journalists that the output of the Maritsa Iztok Mines by July 2014 was expected to register a nearly two-fold decrease to the level of 17 M tones. "In Western Bulgaria, all mines except a part of the Pernik Mines and the open pit mine in Bobov Dol will be closed. This will lead to the loss of over 3500 jobs," he stated, stressing that the electricity production quota of the Bobov Dol TPP had been halved. He drew attention to the fact that the 2.7% indexation was absolutely insufficient because coal prices had remained unchanged for three years. "This price generates losses and our calculations show that the Maritsa Iztok Mines will have run up losses of BGN 140 - 160 M by the end of the year. Minister Stoynev sets the price, and he keeps saying that the problem with the price will be solved. This means that this model may stay in effect for a certain period, after which a part of it will have to be amended. This means that there may be new prices of electricity on the regulated market, not for citizens, by the end of 2013," he said. Following a 9-hour sitting late on Monday, Bulgaria's State Commission for Energy and Water Regulation (DKEVR) announced its final decision on electricity prices as of August 1, 2013. Customers of the three power utilities, CEZ, EVN and Energo Pro, will pay an average of 5% less per kWh, which is said to have been achieved thanks to a new electricity pricing scheme. Speaking after Tuesday's meeting with trade union representatives in the mining industry, socialist MEP and Deputy Parliament Chair Maya Manolova commented that the changes would result in layoffs of 300 people, adding that attempts were being made to secure alternative employment for them. Source: mediapool.bg (31.07.2013) |
| | Economy Minister: coal extraction dropped by 30.7% year-on-year in Q1 of 2013
Coal production in the country has decreased by 30.7% in the first quarter of 2013 compared to the same period of 2012, Minister of Economy and Energy Dragomir Stoynev stated during today's meeting of the Parliamentary Energy Committee. According Stoynev, the main problem faced by coal companies in Bulgaria is the limited demand for coal power plants. "This in turn is due to the limited consumption of electricity in the country and the limited energy exports," he said. A report on the energy situation presented by the Energy Minister shows that the total natural gas production in 2012 amounted to 350 million cubic meters, which is 12% less than the volume in 2011. The minister also noted that with the new pricing model introduced in the amendments to the Energy Act will meet consumer expectations. Thanks to this new model, which takes effect from 1 August, exports of electricity, including green and brown energy, will be free of additives in their transmission price. In a previous meeting today, trade unions have expressed their concerns that the mines in southwestern Bulgaria will be closed and there will be a cut in the number of the miners. Meanwhile, it became clear that the Parliamentary Energy Committee has asked Dragomir Stoynev to present a detailed analysis of the energy sector. This study should be prepared and presented to the National Assembly within three months, the energy committee ruled. Within six months, the Minister of Economy and Energy must demonstrate a solid strategy" the head of the committee stated. Source: Standart (31.07.2013) |
| | Bulgarian Energy Minister: Maritsa Iztok Miners to Keep Their Jobs
Bylgaria's minister of Economy and Energy, Dragomir Stoynev , has assured that discharges will not be made in the Maritza Iztok Complex the largest energy complex in Bulgaria, located in Stara Zagora Province. Miners working in the Maritza Iztok Complex will keep their jobs and they will still receive their salaries on regular basis, as increase in the price of coal is expected in September, stated the Bulgarian Energy minister in an interview to Bulgarian TV channel Nova. Just a day ago, Bulgarian trade unions warned that 3500 miners across the country are under threat of being discharged due to implementation of a new model for price forming of electric power. Source: Struma - Blagoevgrad (08.08.2013) |
| | Miners insist on 40% increase in coal price
Maritza Iztok miners are negotiating a 40% increase in the price of coal with the Minister of Economy and Energy Dragomir Stoynev. How this will affect the price of electricity is still to be seen, as the exact amount of the coal price rise from September is not yet clear. According to the stipulations of the miners with Stoynev, the price of coal from the Maritza Iztok will rise gradually most likely each quarter until it reaches its true market value by the end of 2014. Currently the price is BGN 71.50 per ton, while the actual cost is estimated by the miners between BGN 104 and BGN 108. Stoynev already announced last week that there will be a price increase for coal from September. So the question that the minister needs to address is not only whether there will be a further increase, but how this will affect the price of electricity. Source: Capital (12.08.2013) |
| | Production of largest BG coal mine decreases by 5m tons y/y in H1 2013
Because of the energy crisis, Mini Maritsa Iztok produced 5 million tons less in the first half of 2013 as compared to the same period last year. The 9.39 million volume in the first six months this year is also 1.3 million tons less than the estimates. Even more worrying is the 69% year-on-year decrease in the debris land mass before the miners get to the coal itself. With 31 million cubic meters, the total landmass digged out in the first half was 5.6 million cubic meters less than prevised. Maritsa Iztok's repair program was also seriously stripped: as compared to the planned BGN 37 million, actually only BGN 24.6 million were spent on repair and maintenance of the heavy mining equipment, processing machinery, and vehicles. Most alarming was the lack of realization of the investment program. As opposed to the originally estimated BGN 100 million for 6 months, only BGN 36 million were invested indeed. Mini Maritsa Iztok EAD is the largest coal mining company in the Republic of Bulgaria. It works the Maritsa Iztok lignite field and has been of decisive importance for the national energy balance since over 50 years. Source: Standart (12.08.2013) |
| | Bulgaria's Maritsa Iztok Mines to Remain State Owned, No Job Cuts Foreseen
Maritsa Iztok Mines (Mini Maritsa Iztok EAD) will remain a state-owned company and there will be no staff cuts, according to Dragomir Stoynev, Bulgaria's Economy and Energy Minister. Stoynev visited Bulgaria's largest coal mining company on Friday. On the eve of the professional holiday of miners, he visited the Troyanovo-north Mine and launched a new coal re-loading facility worth over BGN 10 M, which is to cut the total length of the railway lines for coal supplies to the AES Galabovo Thermal Power Plant AES by 5 km. "We have started increasing the coal output. In June, I promised you a new price of coal and it is already a fact," Stoynev told miners, according ti the Bulgarian Telegraph Agency (BTA). According to a media statement of the government, Friday's talks between Stoynev, the management of the state-owned coal mining company, and trade union representatives, made it clear that the measures adopted to boost output and increase coal prices had eliminated tension among miners. On Thursday, Bulgaria's Economy and Energy Minister approved an increase in the price of coal produced at the Maritsa Iztok Mines from BGN 71.50 per tonne of conditional fuel to BGN 75 per tonne of conditional fuel. "A bigger increase is not possible at this stage. Our goal is to get the system functioning so that by January 2014 at the earliest we are be able to prepare an analysis about a new increase in coal prices," he added. Coal prices are also tied to electricity prices, which dropped as of August 1 by slightly less than 4%. According to the media statement of the government, the recent changes to the Energy Act, which resulted in a spike in electricity exports, contributed to the production of a total of 1 133 487 tonnes of coal at the Maritsa Iztok Mines in the first 15 days of August, while the output on August 15 reached 85 349 tonnes. Source: econ.bg (19.08.2013) |
| | State coal extracting company Mines Maritsa Iztok needs BGN 8 million for working capital. This became clear from an announced public order for an overdraft. The news comes several weeks after energy minister increased by order the price at which the company sells its coals. The company looks for a bank, which is to render unsecured loan under the form of overdraft up to a pointed sum. The loan will be used for payment of expenditures on the companys current activity, as well as in cases of temporary lack of funds. The order will be set under negotiations. Invitation has been sent to fourteen banks that worked with the state company. Borrowing working capital is a common procedure for the state company. This method of financing of current needs is in use since 2004, when the company received overdrafts from Raiffeisenbank and BNP "Paribas". Source: Capital (24.09.2013) |
| | Bulgaria's BEH Raises EUR 500 M from Bond Issue
Bulgaria's state energy holding company BEH has raised EUR 500 M, the company announced as the early signing for its bond issue on international market was wrapped up. The company initially planned a EUR 250 M bond issue, needed to refinance debt which matures in May. The bond issue, which will cover the bridge financing, is for five years with an interest rate of 4.287%. BEH was incorporated in 2008 with a decision of the then ruling Socialist-led government. BEH EAD is a shareholding company with 100% state owned participation. The Holding includes Mini Maritsa Iztok EAD, Maritsa East 2 TPP EAD, Kozloduy NPP EAD, NEK EAD, Electricity System Operator EAD, Bulgargaz EAD, Bulgartransgaz EAD and Bulgartel EAD. All companies, brought together in the holding structure, preserve their operational independence and licenses, as they are all owned and directly subordinated to the corporate center BEH EAD. The Bulgarian Energy Holding EAD is one of the largest companies in the region, and national energy leader. Bulgaria tapped last summer international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year Eurobonds, which matured on January 15, 2013. Source: Capital (04.11.2013) |
| | Workers at Bulgarias Maritsa Iztok Mine ready to strike
Workers at the Mini Maritsa Iztok EAD, the largest coal mining company in Bulgaria, are ready for protests and strikes, the press office of the Confederation of Independent Trade Unions in Bulgaria (CITUB) announced. The financial instability of the company increases the social tension among the workers and raises many questions about the future of the mine. The lack of money for spare parts, technological equipment and servicing, as well as the lack for personal protection means and investments for development of the major activities of the mine, will soon bring a situation in which it will be impossible to provide the needed fuel (coal) for the power plants. Securing only the money for the salaries of the workers does not guarantee the security of the employment, neither does in guarantee the healthy and safe working conditions, a declaration of the trade unions of the miners reads. The declaration was sent to Bulgarian Prime Minister Plamen Oresharski, Minister of Economy and Energy Dragomir Stoynev, and the head offices of the two major trade unions in Bulgaria. Source: Agency Focus (12.11.2013) |
| | Maritsa Iztok mines will receive 60 million BGN by Monday at the latest
Maritsa Iztok mines will receive 60 million BGN by the end of the week, or in the beginning of next week at the latest, Minister of Economy, Energy and Tourism Dragomir Stoynev said at an extraordinary brief conference. The Minister specified that the management of Mini Maritsa Iztok EAD was informed about the amount, as well as all trade union representatives, Focus News agency announced. Regarding decaled willingness for launching striking activities Minister Stoynev said: "This reality change is worrying, because the government is working, because there will be economic growth next year which is confirmed by the European Commission, the World Bank and hopefully by the International Monetary Fund, whose mission is currently visiting our country." Source: investor.bg (14.11.2013) |
| | Bulgarias Mini Maritsa Iztok invites bids for 5.4 mln euro soil-stripping contract
Bulgarian mining company Mini Maritsa Iztok has invited bids for a soil-stripping work contract, estimated at BGN 10.5 billion, a notice in the EU's procurement journal indicated. The contract is planned to be completed in 24 months, according to the notice published in the Tenders Electronic Daily (TED) on Saturday. The value of the contract does not include value added tax. Bids can be submitted by January 10, 2014. Mini Maritsa Iztok EAD is 100% state-owned company with main activities coal production and sale; industrial, commercial, leasing, repair, foreign trade activities; training and retraining of coal mining personnel. It is a subsidiary of BEH. Source: Capital (18.11.2013) |
| | Bulgarian Economic Ministry signs EUR 85M contracts for the decommissioning of Kozloduy NPP
The Bulgarian Ministry of Economy and Energy and the sponsors of the Kozloduy International Decommissioning Support Fund signed five new grant contracts in the value of over EUR 85 million. While EUR 35 million will be spent on new machines to improve the capacity of the Maritsa Iztok Mines and for the upgrade and expansion of the central dispatching unit of the Electricity System Operator (ESO), the remaining EUR 51 M will be paid to the workers participating in the decommissioning activities at the Kozloduy NPP in the period 2014-2016. Two other agreements were also concluded: one for supporting the energy efficiency fund and renewable energy sources and another to construct gas transmission networks with automatic stations to the towns of Svishtov, Panagyurishte, Pirdop, Bansko, and Razlog. Sofia. Bulgaria's Kozloduy NPP reported BGN 5.8 million loss for the first half of 2013, The negative result came after a BGN 90 million profit in the comparative period last year. Source: Standart (18.11.2013) |
| | Extraction of sand from the Anastasia deposit canceled
Council of Ministers decided to unilaterally terminate the concession contract for the extraction of sand from the Anastasia deposit (municipality Burgas). The contract from 2007, signed between the Minister of Regional Development and Public Works and Eurocar LTD is terminated because of non-fulfillment of obligations by the concessionaire. In another decision, the government provide Mines Maritsa Iztok SPJSC the properties included in the concession area as belonging to the "Maritsa East coal basin". After termination of the concession contract, properties will be returned to the state in the terms and conditions specified in the agreement to the concession contract. Source: econ.bg (21.11.2013) |
| | BG machinery old-timer Remotex on the edge of bankruptcy?
For more than a month, Remontex workers in Radnevo have been staging a protest over their unpaid wages. The majority of employees out of the total of 600 have not received a penny of salary since February. Many of the protesters are on the brink of despair. A worker fainted at one of the rallies and was hospitalized because he had not eaten anything for 2-3 days. Another desperate worker had to sell the iron springs of the bed on which his children sleep in order to be able to feed them. The machinery complex is owing more than BGN 2.5 million to the state in obligations for social and health insurance. More importantly, however, the owners find it increasingly difficult to manage its largest credit: BGN 15 million to the First Investment Bank. REMOTEX-RADNEVO EAD was established in 1966 as a basic machine building, engineering and production unit of Maritsa Iztok Complex dealing with repair and spare parts production for heavy mining, transportation and power engineering equipment. Since 2002 REMOTEX-RADNEVO EAD has differentiated as one of the largest repair and restoration companies in the countrywith a complete cycle of metal treatment, steel output, steel casting, forging, heat treatment, mechanical processing, finishing and welded structures roduction. The privatization of the compex in 2002 happened under the then-PM tsar Simeon Saxe-Coburg at a public auction for a suppressed price of BGN 9.3 million. According to experts, only the orders from mines and thermal power plants for 2002 were over BGN 10 million. A stock company named "Flight 2" won the tender. However, it turned out that one of its partners was the wife of then- Minister of State Administration Dimitar Kaltchev. Over the years, shareholders came and went, but instead of strengthening and developing it, they were only looking for how to drain it. Before Remontex was privatized, it used to have a relatively modern equipment and a unique technology for the repair of heavy equipment in mining and thermal power equipment. Practically, it had no competitors, at least not for Maritsa - East. The new owners, however, did not invest in its maintenance and modernization , and directed the earnings to other branches, including overseas. The staff of 1400 people gradually melted to 600. Because of the irregular payments of salaries over the years, most specialists have left the complex, pushing it into a total decay. Source: Standart (08.12.2013) |
| | Bulgaria eyes majority stake in troubled machine repair company
Bulgaria's economy ministry and the state-run Bulgarian Energy Holding are holding preliminary talks on the acquisition of a majority stake in troubled industrial machine repair company Remotex-Radnevo. The move would make it possible to retain the workers and pay them their wages regularly, the ministry said in an statement made available to SeeNews on Friday. Remotex-Radnevo employs 561 and currently owes its workers some BGN 3.5 million in back wages, it added. "The economy ministry and BEH plan to rehabilitate Remotex-Radnevo, which would contribute to the company's sustained development in the long term," the ministry said. Remotex-Radnevo is one of the largest repair companies for heavy mining, transport and energy equipment in Bulgaria. According to Sofia-based Capital Daily, it was privatised by a local company Polet 21 in 2002. Source: expert.bg (14.12.2013) |
| | Bulgarian energy branch reshuffle: Ivan Jonchev named as new director of Bulgarian Energy Holding
Financier Ivan Jonchev is the new director of the Bulgarian Energy Holding (BEH). He is taking the place of Bojan Boev, who resigned as he was elected President of the State Energy and Water Regulatory Commission on Wednesday. Ivan Jonchev has been a member of the Board of Directors of Mini Maritsa Iztok since October. His appointment is the latest chapter of the major reshuffle in the Bulgarian energy sector which started a few days ago. State Energy and Water Regulatory Commission President Angela Toneva handed in her resignation allegedly to become a governmental advisor. Bulgargas head Shishman Chaoushev also resigned last week, after only being appointed in November. His chair will be taken by Dafinka Iankova, the head of BEH's auditory body. Chaoushev, in turn, will become the new director of the Electricity System Operator. Source: Novinar (16.12.2013) |
| | State-owned TPP seeks more money
Almost a month after drawing a credit of over BGN 2 million, the state-owned Maritsa Iztok 2 TPP needs money again, shows a reference to the Public Procurement Register. The TPP seeks for a bank to lend BGN 50 million with maturity December 20, 2016. The plant will use the money to invest. On 19 November Maritsa Iztok 2 TPP borrowed BGN 2 million from CCB to cover the contribution to the Japanese Bank that had been granted as loans for rehabilitation of the facilities. Separately, since June the company uses BGN 20 mln loan for working capital. By this move the company has become the third state energy company in need of money to cover current needs after Bulgargaz and Kozloduy NPP. Maritsa Iztok 2 has received a loan of BGN 137 million in the middle of the year by its parent company BEH, according to the company's report. Maritsa Iztok 2 is second after Kozloduy NPP in cheapest electricity in the country. The company is also a major buyer of coal from Mines Maritsa Iztok. Source: Trud (18.12.2013) |
| | Bulgarian troubled co Remotex-Radnevo gets EUR 10 mln deal
Bulgarian troubled industrial machine repair company Remotex-Radnevo has received a BGN 20 million contract from state-owned mining company Mini Maritsa Iztok. No further details on the deal were provided in the report in newspaper Standart. Late in 2013 the economy ministry said it is considering acquiring a majority stake in Remotex-Radnevo in a move aimed to retain the workers and pay them their wages regularly. Remotex-Radnevo employs 561 and owed its workers some BGN 3.5 million in back wages by December. Source: Standart (06.01.2014) |
| | Bulgarias Mini Maritsa Iztok 2013 coal output at 25.5 mln tonnes
Bulgarian mining company Mini Maritza Istok reported on Wednesday a coal output for 2013 of some 25.5 million tonnes of coal. These figures were 10% above the companys projection of 23.1 million tonnes of coal for the year, Mini Maritsa Iztok said in a notice on its website without giving comparative figures for 2012. The company produced some 3.33 million tonnes of coal in December alone, which was its highest output for the respective period in the past 20 years. The tree mines of Mini Maritsa Iztok excavated and transported some 72 million cubic meters of earth in 2013, the company added. Source: Monitor (09.01.2014) |
| | Bulgarian TPP Maritsa East 2 produces 7.8 mln MWh in 2013
Bulgarian coal-fired thermal power plant (TPP) Maritsa East 2 said on Thursday its electricity output topped 7.8 million megawatt-hours (MWh) in 2013. In December alone, the TPP produced 1.0 million MWh of electricity, equal to the output for the entire second quarter of 2013, it said on its website. With an installed capacity of 1,600 megawatts, Maritsa East 2 is Bulgaria's largest TPP.(cross.bg) Source: Other (10.01.2014) |
| | Bulgarias Mini Maritsa Iztok to purchase excavators with financial resources from EBRD
Mr Vince Novak from the European Bank for Reconstruction and Development (EBRD) and Stanimir Kazlachev, Executive Director of Bulgarian company Mini Maritsa Iztok have signed an agreement today. Bulgarian Minister of Economy and Energy Dragomir Stoynev said the agreement was highly important as it concerned the purchase of new excavators by Mini Maritsa Iztok. Source: Agency Focus (20.01.2014) |
| | CEO of Bulgaria's Maritsa Iztok Mines Replaced
Georgi Zlatev has been appointed Chief Executive Officer of Bulgaria's largest coal mining company, the Maritsa Iztok Mines (Mini Maritsa Iztok EAD). Zlatev was appointed CEO of the state-owned company on Monday through a decision of the Bulgarian Energy Holding. The new CEO of the Maritsa Iztok Mines was previously chief executive of briquette producer Brikel of energy tycoon Hristo Kovachki, according to reports of investor.bg. In a Monday statement, Zlatev claimed that he did not know the reasons behind the decision to replace Stanimir Kazalachev, the previous CEO of the state-owned coal mining firm. Zlatev also made clear that he had been invited to become CEO of the Maritsa Iztok Mines by BEH. Asked to comment on proposed legal changes aimed at reducing the use of coal, he insisted that such a measure was impossible to implement in Bulgaria at the current stage. A few days ago Andon Andonov, MP from center-right party GERB (Citizens for European Development of Bulgaria), announced that the Maritsa Iztok Mines had to receive BGN 120 M from debtors. Several weeks ago, Bulgarian Economy and Energy Minister Dragomir Stoynev bragged about a record-high coal output in December, at 3.3 million tones. On Friday, a contract was signed with the European Bank for Reconstruction and Development, which should allow the Maritsa Iztok Mines to purchase of three new excavators, the first upgrade at the company since 1992. Source: investor.bg (21.01.2014) |
| | Electricity production in Bulgaria rises in December 2013: NSI
Electricity generation and production of solid fuels in Bulgaria were on the rise in December 2013, it transpires from the latest report of the National Statistical Institute (NSI). Electricity output was up 2.8% m/m and up 13.2% y/y, while production of solid fuels surged by 18.5% m/m and by 9.5% y/y. According to the numbers, natural gas output in the country slipped 11% y/y to 24 million cubic meters, but saw a monthly increase of 4%. Diesel production was down 33% to 132,000 tons, while propane-butane output contracted by 30% to 34,000 tons. NSI reports on a 33% squeeze in unleaded petrol deliveries to 28,000 tons a year. Diesel shipments saw a 7% decline to 142,000 tons in December 2013. Source: Duma (31.01.2014) |
| | Bulgarian miner Mini Maritsa Iztok sees 2014 coal output up nearly 14%
Bulgarian mining company Mini Maritsa Iztok said on Monday it expects coal output of 29 million tonnes in 2014 compared to 25.5 million tonnes in 2013. Mini Maritsa Iztoks coal output amounted to 3.34 million tonnes in January alone despite the harsh weather, which is its highest output in the past 21 years, the company said in a notice on its web site. Mine Troyanovo-Sever generated the highest coal output of over 1.0 million tones last month. The mines of Mini Maritsa Iztok excavated and transported over 8.0 million cubic metres of earth in January while for the last four years these figures varied between 5.0 million and 7.0 million cubic for the same period, the company added. Source: money.bg (04.02.2014) |
| | Bulgaria's BEH says NEK, ESO split-up completed
Bulgarian state-owned electricity company NEK and Electricity System Operator (ESO) completed on February 4 the last phase of their split-up, regarding the unbundling of the ownership of the network and the associated assets, the Bulgarian Energy Holding (BEH) said on Wednesday. The unbundling will allow ESO, as the owner of the grid, to start the process of its certification as an independent transmission operator as a further step in the development of a competitive and financially stable energy market, BEH said in a press release. The split-up of the two companies is required under the EUs Third Energy Liberalisation Package. Bulgarian Energy Holding (BEH) - a state-owned holding company set up in 2008 which controls Mini Maritza-Iztok, NEK, ESO, Bulgargaz and the countrys sole nuclear power plant Kozloduy - took full control of ESO from NEK in 2013. Source: investor.bg (06.02.2014) |
| | French want to work on South Stream
French company Schneider Electric is interested and can be included in the construction of the South Stream project and the seventh unit of NPP Kozloduy. We believe that with our technical expertise and global experience we can contribute in a number of key areas for the country's economy," said General Director of Schneider Electric for Bulgaria Christophe de Lafarge. He added that the company has already worked at the NPP Kozloduy, TPP Maritza Iztok 2, Terminal 2, Mini Maritsa Iztok. Meanwhile it became clear that Moscow was approved the marine environment assessment of the South Stream, which will pass through Russian territory to the Black Sea. Source: Standart (18.03.2014) |
| | Bulgaria's NEK mulls setting up export JVs in Serbia, Romania - media
Bulgarian state-owned electricity company NEK may set up joint ventures in Serbia and Romania to facilitate its exports. BEH has lent NEK over BGN 900 million to pay energy producers. The company's CEO Yonchev also said that NEK and Electricity System Operator (ESO) are the only companies in the BEH group that closed 2013 in the red, according to preliminary estimates. Mines Maritsa Iztok reported minimum loss for 2013, as expectations are that the profit of the company will be to the amount of BGN 4.5 million. Source: Standart (25.03.2014) |
| | Remotex - Radnevo employees to be hired at Bulgaria's Mini Maritsa Iztok
The government will appoint the workers of Remotex Radnevo at a new unit of Mini Maritsa Iztok, but will not nationalise the company, Economy Minister Dragomir Stoynev announced. The governments analyses of the company have shown great indebtedness. The Bulgarian Energy Holding (BEH) took a decision to set up its own unit at Mini Maritsa Iztok to execute basic repair and rehabilitation activities upon the heavy mining equipment. The state mines are Remotex Radnevos main client, responsible for 76% of its income. Its largest creditor is First Investment Bank (Fibank) with the debt amounting to around BGN 15 million. Source: investor.bg (07.04.2014) |
| | Bulgaria's Energy Minister Predicts Coal Price Increase
Bulgarian Economy and Energy Minister Dragomir Stoynev has predicted a coal price increase. Speaking Sunday in the southern town of Radnevo, he said that the price of coal produced by the Maritsa Iztok Mines would go up from BGN 75 to BGN 77 per tonne of conditional fuel in the new regulatory period. The measure will introduce the second increase in coal prices in the past 12 months. In the summer of 2013, the price of coal was increased from BGN 71.5 to BGN 75. The measure is to result in an additional financial stabilization of the mines which have a staff of over 7000. Source: Dnevnik (12.05.2014) |
| | 495 are current concessions of natural resources, which have signed concession agreements, announced the Ministry of Economy and Energy. This includes concession contracts with municipalities. In 2013 the receipts from concession payments amounted to BGN 73.22 mln, without VAT and VAT to the amount of BGN 14.36 mln. The budgets of the municipalities with concession sites have received BGN 26.78 mln, without VAT. Most are concessions for building materials, but the main revenue for the state comes from the concessions of metals and oil and gas. Source: 24 chasa (16.06.2014) |
| | CEO of Bulgarian state holding co BEH resigns
The state-run Bulgarian Energy Holding (BEH) said on Thursday its executive director Ivan Yonchev resigned from the position due to poor health. After Yonchev's resignation, Bulgarian energy minister Dragomir Stoynev appointed Jacklen Cohen as a member of the board of directors of BEH, it said in a press release. BEH incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. Source: Standart (11.07.2014) |
| | Bulgarian Maritsa Iztok mines increased 2014 H1 production by 37%
Coal mining in Bulgaria's largest energy complex Maritsa Iztok EAD - Maritsa Iztok mines, has recorded an increase in the first half of 2014. More than 12.8 million tonnes of raw material have been produced and realized in Q1 2014. To meet the needs of Bulgarian thermal power plants, over 3.48 million tonnes (37%) of coal more have been extracted in January June 2014 compared to the same period of 2013. In the first six months of 2014, a total of 46,687,180 cubic meters of land mass, or almost 50% more than last year's quantities, were excavated, transported and piled in the three mines of Maritsa Iztok EAD. Source: 3e-news (15.07.2014) |
| | Bulgarias coal producer Mini Maritsa Iztok launches tender for BGN 13 mln
Bulgarian coal producer Mini Maritsa Iztok has opened a BGN 13-million tender to find a contractor for heavy equipment repairs over the next three years. The company is currently facing bankruptcy procedures requested by its largest creditor Fibank. Mini Maritsa Iztok is also seeking to borrow BGN 50.16 million from some local lender in order to carry out its investment programs. The company is ready to pay over BGN 13 million to the bank for a 10-year loan with a 2-year grace period. Meanwhile, TPP Maritsa Iztok 2 has negotiated a BGN 15-million overdraft from United Bulgarian Bank (UBB) to cover short-term cash needs as its money remains blocked at Corporate Commercial Bank. Source: Trud (13.08.2014) |
| | The southern Bulgarian municipality of Radnevo is virtually bankrupt, according to the Mayor, Yulian Ilchev. In a Monday interview for the Bulgarian National Radio, Ilchev said he expected urgent assistance from the caretaker government, adding that he had sent a letter to caretaker Prime Minister Georgi Bliznashki about the problem which Radnevo was facing. Ilchev made clear that the difficulties were due to unpaid installments of BGN 4.4613 M of Bulgaria's National Electric Company (NEK) to state-owned company Maritsa Iztok Mines under a coal mining concession for the second half of 2013 and the first half of 2014. He explained that the concession fee accounted for 54% of the budget of the Radnevo Municipality and it was to be paid before the coal mining company pays taxes, according to provisions of the Concessions Act and the Subsurface Resources Act. Ilchev underscored that the only way for the municipality to avoid stopping current payments and salaries in the sphere of its social activities, education and healthcare was to take out loans. He noted that the town of Galabovo was in similar condition. Galabovo Mayor Nikolay Tonev stopped payments to companies providing services to the municipality over debts of BGN 1 M, or 25% of the amount of the municipal budget. - See more at: http://www.novinite.com/articles/162781/Bulgaria%27s+Radnevo+Municipality+Virtually+Bankrupt#sthash.apOUGW5j.dpuf Source: Standart (19.08.2014) |
| | Bulgarian state energy holding firm BEH to raise capital
Bulgarian state energy holding company BEH said on Tuesday it will increase its capital. The company ended 2013 in the green and, after paying dividend, has asked the energy ministry for a nod to convert the remainder of last year's profit into capital, BEH's press office said, adding that a higher capital base would send a positive signal to investors. Earlier on Tuesday, news daily Trud reported, quoting data from the commercial register, that BEH will raise its capital by BGN 336 million. It also said BEH will pay BGN 20 million in dividend for last year. Last month, local media reported that three BEH subsidiaries were planning changes to their capital. The countrys sole nuclear power plant (NPP) Kozloduy has asked to increase its capital to BGN 165.6 million from BGN 153.8 million, while thermal power plant (TPP) Maritsa Iztok 2 plans to raise its capital to BGN 40.1 million from BGN 38.5 million. Meanwhile, gas monopoly Bulgargaz has applied to reduce its capital to BGN 206.2 million from BGN 257.7 million. BEHs non-consolidated after-tax profit rose by nearly 39% to BGN 397 million in 2013 as revenues fell 56% to BGN 246.5 million. BEH incorporates assets that include NPP Kozloduy, Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company, system operator Electricity System Operator, Maritsa Iztok 2 and the Mini Maritsa Iztok coal mines. Source: Capital (10.09.2014) |
| | Eurocoal: Bulgaria's Coal Production Decreases over Past Few Years
Bulgaria's coal production has decreased over the past three years, according to statistics of Eurocoal. The European Association for Coal and Lignite (Eurocoal), the umbrella organisation of the European coal industry, consists of 35 Members from 20 countries amongst which national producers and importers associations, companies and research institutes from Belgium, Bosnia-Herzegovina, Bulgaria, the Czech Republic, Finnland, France, Germany, Greece, Hungary, Italy, Poland, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Turkey, the Ukraine and the United Kingdom. According to Eurocoal, as cited by investor.bg, Bulgaria produced 26.4 million tonnes of lignite and 2.1 million tones of anthracite in 2013.In 2012, Bulgaria produced 31 million tonnes of lignite and 2.3 tonnes of anthracite. In 2011, Bulgaria's lignite output stood at 34.5 million tonnes and its anthracite production stood at 2.4 million tonnes. Bulgaria's coal imports decreased from a rate of 3.3 million tonnes in 2011 to 1.7 million tonnes in 2013. According to Eurocoal data, the EU27 (excluding Croatia) produced 407 million tonnes of lignite in 2013, compared to 433 million tonnes of lignite in 2012. Anthracite output in the EU also fell from a rate of 128 million tonnes in 2012 to 114 million tonnes in 2013. However, imports registered a slight increase from 211 million tonnes to 216 million tonnes. Source: investor.bg (16.09.2014) |
| | TPP Maritza Iztok 2 faces collapse
The biggest Bulgarian thermal power plant - Maritza Iztok 2 is in a difficult situation, said the head of CITUB Plamen Dimitrov. As of 30 September Maritza Iztok 2 has accumulated nearly BGN 17 million loss, something unseen in years. By the end of the year, losses could exceed BGN 30 million and the TPP may stop paying mines and other suppliers, and serving the Japanese government-guaranteed loan used for the recent modernization, said Dimitrov. Failures in the energy sector came to the "golden goose" as everyone calls Maritza Iztok 2 because it was deprived from everything. Dimitrov reminded that on July 1 the plant was removed from the regulated market and operates only for export with the assurance that it will be profitable. Furthermore, the cold reserve of the TPP was reduced from 600 to 400 megawatts, of which revenues have fallen by more than BGN 71 million compared to the same period last year. Because of the difficult financial situation the TPP has reserves of coal for about 15 days. In the same serious condition is also the other state-owned company in the complex - Mini Maritsa Iztok, said Plamen Dimitrov. The mining company is to receive BGN 200 million for extracted but unpaid coal. Source: Standart (29.10.2014) |
| | The largest state-owned enterprise Bulgarian Energy Holding (BEH) remains in large debt, its report for the first nine months of the year shows. The company has handed out loans and has to take from related parties and Heat Supply-Sofia a total of over BGN 1.75 billion. As to the first quarter of 2014 the figures amounted to BGN 1.5 billion. Much of this amount is provided by the bond issue of BEH, which matures in 2018. The majority of the loans have been granted to the troubled subsidiary NEK. Furthermore, BEH group includes Electricity System Operator, Bulgargaz, TPP Maritza Iztok 2, Bulgartransgas, NPP" Kozloduy, Bulgartel and Mines Maritsa Iztok. Revenues of BEH (mainly from dividends) for the nine months are BGN 148.6 million less because of poor financial results of its subsidiaries. The holding has reduced the price of its services to companies in the group. Source: Trud (03.11.2014) |
| | Mini Marica Iztok EAD did not find BGN 50 million for its investment program
Mini Marica Iztok EAD has failed to secure the BGN 50.16 million in loans it needs to keep its investment program going. The company only received two offers D Commerce Bank said it was ready to lend BGN 3.9 million and United Bulgarian Bank agreed to provide an overdraft of up to BGN 8 million. Source: Capital (14.11.2014) |
| | Bulgarian Energy Holding Conducts Top-level Reshuffle at Several Companies
The Board of Directors of the Bulgarian Energy Holding (BEH) has carried out a top-level reshuffle at a number of state-owned energy companies. Georgi Hristozov and Georgi Zlatev have been removed from the Board of Directors of the Maritza Iztok mines (Mini Maritsa Iztok EAD) and are to be replaces by Dian Chervenkondev and Nikolay Dikov, according to a media statement of BEH. Andon Andonov keeps his place on the BoD of the Maritza Iztok mines. An Executive Director of the coal mining company is to be elected at a BoD sitting. Ekaterina Istatkova has been removed from the post of Chief Executive Officer of the National Electric Company (NEK). Istatkova is to be replaced by Petar Iliev, who has been a member of the governing body of NEK. Changes have also been made to the Executive Board of the Electricity System Operator (ESO), which welcomes Ivan Yotov, Dimitar Valchanov and Milko Milkov as new members. Diyan Dimitrov has been elected member of the Board of Directors of state-owned thermal power plant Maritsa Iztok 2. He replaces Mihail Mitkov. The changes will enter into force after their inscription into the Business Register. The changes at the governing bodies of the state-owned energy companies are aimed at streamlining their management and stabilizing their financial condition, according to the media statement of BEH. Source: Sega (27.11.2014) |
| | Bulgaria's Bulgargaz to draw EUR 3.6 mln credit
Bulgarian gas monopoly Bulgargaz has decided to draw a short-term loan of BGN 7 million from D Leasing, a subsidiary of D Commerce Bank, local media reported on Wednesday. The loan will have an annual interest rate of 5%. Last month Bulgargaz cancelled a tender to select banks to provide it with revolving credit lines worth up to BGN 139 million in total after it failed to attract any bids. The company did not say how it planned to spend the proceeds from the credits. Earlier this month, an official of a unit of state-owned Bulgarian Energy Holding (BEH), Bulgargaz's parent company, said the holding company intends to provide a short-term loan to Bulgargaz to pay its liabilities to Russian gas giant Gazprom. He said at the time that Bulgargaz has to pay USD 100 million to Gazprom by the end of December, including USD 50 million in overdue payments. Source: Capital (18.12.2014) |
| | Energy minister promised new equipment for Mines Maritsa Iztok
"There are no plans to privatize the state-owned mines, we seek options to provide fresh financial resources for the purchase of new equipment and repair facilities in the Mines Maritsa Iztok, the Minister of Energy Violet Petkova assured. Minister Petkova was clear that the vast investment program in the mines will increase the efficiency of the production process and ensure safe working conditions. "We will defend the interests of miners - they are the backbone of the Bulgarian energy system," she assured. Representatives of the trade unions thanked Minister Petkova for the constructive dialogue and the opportunity to put in front of her all the pressing problems in the mines. Source: Standart (22.12.2014) |
| | Bulgaria's Mini Maritsa Iztok sees 2014 profit at 2.6 mln euro
Bulgarian mining complex Mini Maritsa Iztok expects a profit of about BGN 5 million in 2014. The miner's investment programme for last year was only 61% fulfilled due to lack of rhythmical finances, while 82% of its upgrade programme was realised, Mini Maritsa Iztok said in a notice published on its website. Its 2014 coal output exceeded 27.5 million tonnes, which is 428,000 tonnes more than projected in the company's business plan. The mines of the Mini Maritsa Iztok complex excavated and transported nearly 81.22 million cm of earth in 2014. The mining complex, located in southern Bulgaria, is 100%-owned by state-operated Bulgarian Energy Holding. Source: Capital (14.01.2015) |
| | Energoremont-Holding with a contract for BGN 400 thousand
Energoremont-Holding has concluded a contract with Mine Maritsa-East for repair and restoration of running units for excavators. The company is selected for a contractor under three announcements for public orders, again by Mines Maritsa East. Total value of the contracts is assessed to BGN 13 million VAT excluded. Major shareholders in the enterprise are Milenia 77 LTD with 33.03%, Bulgarian Energy JSC with 32.08%, New Energy and Industrial Technologies JSC with 21.59% and Geopribor with 10.80%. Source: profit.bg (06.02.2015) |
| | Record coal yield at Mini Maritsa Iztok mines
The first month of the year at "Mini Maritsa Iztok" mines ended with a record coal yield, the company reported. More than 3.3 million tons of lignite have been excavated and shipped from the three mines, thereby improving upon the business plan by over 127 percent. The greatest success was at Troianovo-North mine, where the yield was more than 1.2 million tons of coal. The coal excavated and transported from the coal mine Troianovo 3 was a little more than 1 million tons, and in mine Troianovo 1 - over 965,000 tons. The total production of the coal company in January this year is only 2304 tons less than the highest monthly production in the last 20 years, according to official statistics. The record was achieved in October 2013, when the mines had a yield in excess of 3.5 million tons of coal. The business plan of the company for this year entails a yield of 27.35 million tons of coal and mining, transportation and filling of 101.425 million cu. m of land mass, the company said. Source: Standart (19.02.2015) |
| | Bulgaria's Mini Maritsa Iztok gets 25.6 mln euro loan
Bulgarian coal mining complex Mini Maritsa Iztok has signed a BGN 50 million loan agreement with two banks, local media reported. The coal mining company will use the proceeds from the loan to partly cover its debts to suppliers, state-owned Bulgarian National Radio reported on Tuesday, quoting Mini Maritsa Iztok's executive director Andon Andonov. Under the agreement, the loan will be repaid by the state-owned Maritsa Iztok 2 thermal power plant (TPP) which in turn owes the coal mining company BGN 59.2 million. According to Andonov, the Bulgarian units of US companies AES and ContourGlobal owe Mini Maritsa Iztok a total of BGN 206 million, and local power producer Brikel owes it a further BGN 47 million. AES operates the Maritsa Iztok 1 coal-fired plant in Galabovo and ContourGlobal operates the Maritsa Iztok 3 TPP. Earlier this month the two companies agreed with state-owned power utility NEK on a decrease by 14% and 17%, respectively, in the capacity price for electricity produced by their coal-fired plants in the southeast of the country. For its part, NEK will pay all arrears to the two companies amounting to a total of BGN 700 million. These agreements, however, have no bearing on the US companies' debt to Mini Maritsa Iztok, Andonov said. Source: mediapool.bg (15.04.2015) |
| | Bulgarian Energy Holding Reports Declining Income, Profit in 2014
The operating income of the Bulgarian Energy Holding (BEH) EAD dived by 64.16 per cent in 2014 from 2013, and the profit before tax plummeted from BGN 414.8 mln to BGN 285.9 mln, according to the company's Annual Report for 2014 that has been published. On March 20, 2015,Fitch Ratings downgraded BEH's long-term foreign and local currency issuer default ratings (IDR) and its foreign currency senior unsecured rating one level to 'BB' from 'BB+' and placed the ratings on rating watch negative (RWN), the report recalls. "The rating downgrade reflects a substantial deterioration of BEH group's credit metrics driven by a wider tariff deficit at its subsidiary Natsionalna Elektricheska Kompania EAD (NEK) amid an unfavourable regulatory and market environment," the ratings agency said. Fitch views the Bulgarian regulatory environment as less developed and far less predictable than in western Europe. "Several legislative and regulatory changes aimed at narrowing NEK's deficit are planned by the government, parliament and the regulatory office for 2015, but may be subject to delays or may yield lower-than-expected positive impact as happened in 2014 with some planned changes." A substantial narrowing of NEK's deficit and increased predictability of cash flows at BEH group could lead to a positive rating action, the report points out. The company's principal sources of income are dividends received, interest received on loans extended to subsidiaries, and services provided to subsidiaries in financial management, project management, corporate governance and business planning, legal and regulatory matters, public relations and communications. Source: econ.bg (11.05.2015) |
| | 25% of BEH put on the BSE
Bulgaria will offer 20-25% of the shares of Bulgarian Energy Holding (BEH) on the capital markets, Deputy Energy Minister Nikolay Nikolov announced. This will happen after stabilization of the holding, which will facilitate the liberalization of the market, he said. Following the liberalization, BEH subsidiaries will improve their financial results, will refinance their obligations, and through sales of shares will fund modernizations, Nikolov said. Meanwhile, BEH is about to take BGN 800 million government guaranteed loan, Deputy Minister Nikolov said. It will be used to pay the obligations of the BEHs subsidiary NEK to both US TPPs in the Maritza Iztok complex. Source: Standart (27.05.2015) |
| | Mines Maritsa Iztok is looking for a working capital loan with a limit of BGN 40 million in the form of overdraft for a term of one year, becomes clear from announced in the beginning of June public tender. Funds are needed for insuring temporary financial resource in case of shortage of money. In that way, current activities in relation to payment of taxes, suppliers of goods and services as well as payments of obligations to employees are to be covered. Forecasted value, pointed by Mines Maritsa Iztok for granting of the loan is BGN 1.124 million, VAT included. The state companys public order is divided into three detached lots, one with a limit of BGN 8 million and the other two of BGN 12 and BGN 20 million respectively. Candidates may hand out offers for one or more of the announced lots. There are no requirements for their economic or financial capacity. Main requirement, under which participants will be ranked, is the proposed lowest price. Towards the end of 2014 Mines Maritsa Iztok has loans to a total of seven banks, assessed to BGN 34.575 million. Source: Capital (09.06.2015) |
| | Mines Maritsa Iztok looks for a new working capital loan of BGN 40 million
Mines Maritsa Iztok is looking for a working capital loan with a limit of BGN 40 million in the form of overdraft for a term of one year, becomes clear from announced in the beginning of June public tender. Funds are needed for insuring temporary financial resource in case of shortage of money. In that way, current activities in relation to payment of taxes, suppliers of goods and services as well as payments of obligations to employees are to be covered. Forecasted value, pointed by Mines Maritsa Iztok for granting of the loan is BGN 1.124 million, VAT included. The state companys public order is divided into three detached lots, one with a limit of BGN 8 million and the other two of BGN 12 and BGN 20 million respectively. Candidates may hand out offers for one or more of the announced lots. There are no requirements for their economic or financial capacity. Main requirement, under which participants will be ranked, is the proposed lowest price. Towards the end of 2014 Mines Maritsa Istook has loans to a total of seven banks, assessed to BGN 34.575 million. Source: Capital (09.06.2015) |
| | Bulgarias Maritsa Iztok 2 Thermal Power Plant Reports BGN 28.6 M Net Loss in H1, 2015
State-owned thermal power plant Maritsa Iztok 2 closed the first half of 2015 at a net loss of BGN 28.634 M, compared to a profit of BGN 1.440 M for H1, 2014, according to a report of the company. Although the company registered a profit of BGN 5.186 M for the first quarter of 2015, it warned that its financial result was going to deteriorate due to the decrease in revenues from services to the Electricity System Operator (ESO) such as the cold reserve, according to dnevnik.bg. The main reasons for the downward trend in H1, 2015 are said to be the increased greenhouse gas emissions costs, which the energy watchdog did not include in the calculation of the price for the past 1-year pricing period, and the decrease in revenues from sales of cold reserve quantities. The revenues of the state-owned thermal power plant go up by nearly BGN 10 M in H1, 2015. However, the emission quota costs increased by nearly BGN 19 M and depreciation expenses went up by around 6 M. The total expenses of the company added BGN 28 M in H1, 2015. The net financial expenses increased from nearly BGN 3 M to BGN 16.711 M. At the same time, state-owned Maritsa Iztok Mines closed the fist half of the year at a net profit of BGN 28.063 M, according to the H1, 2015 financial statement of the coal mining company. The profit of the Maritsa Iztok Mines for 2014 stood at BGN 4.340 M. The main reason for the positive development was the increase in sales revenues by nearly BGN 90 M to BGN 296 M. Source: Capital (05.08.2015) |
| | Mines Maritsa Iztok will ask for a loan of BGN 50 million from Bulgarian Development bank
Mines Maritsa Iztok is looking for a chance for a fast loan to the amount of BGN 50 million with direct negotiations. We have been analyzing banks, and it turned out that the only one that may give us money now at the fastest way is Bulgarian Development bank. The money will be purposely directed solely to paying off our obligations to the state and the companies we are working with, Mines Maritsa Iztoks CEO engineer Andon Andonov said at a press conference on Monday. The state company looks for a bridge funding for BGN 20 million in parallel, with which salaries of employees will be paid. If Bulgarian Development bank renders loan to the mines, its will be the second case of huge funding by a state bank, which is otherwise was set up to lend to small and medium-sized private companies. The state company is the second largest corporate employer in the country with its 7130 employees and the largest in the region of Stara Zagora. Money is needed so that three mines are prepared for the autumn-winter season. The company has signed a tripartite agreement with NEC and Brickell, as the settlement between them becomes as follows: NEC settles 90% to Mines Maritsa Iztok and 10% to Brickell. Source: Capital (18.08.2015) |
| | More than BGN 2.4 million collected for 5 days in NECs rescue fund
Funds are already being accumulated in the fund Security of the electricity system and as of 17th of August raised money reach over BGN 2.4 million. This what energy minister said. Just in a few days between 24th and 31sy of July the sum was accumulated from the 5% tax on sold power. By the end of this year, NEC has to pay off its obligations to AES Galabovo Maritsa East 1 and ContourGlobal Maritsa East 3. Meanwhile, the Cabinet decided yesterday over 130 hectares of forest lands for the expansion of coal mining from the mine Troianovo 1-site 2 will go to the state mines. Mines Maritsa Iztok has to pay BGN 1.2 million for the change of land utilization has, while the price for compensatory afforestation is set at BGN 1.3 million Source: Monitor (20.08.2015) |
| | US-owned TPP AES Bulgaria Finalizes Agreement with National Power
US-owned thermal power plant AES 3C Maritza East I and Bulgarias National Electric Company (NEK) have finalized the agreement on amending the long-term contract for purchasing electricity generated by the TPP. The agreement was negotiated in April and it concerns the capacity price of AES 3C Maritza East I, according to a media statement of the US-owned TPP. Once the agreement enters into force, the capacity price will drop by 14%, thereby allowing Bulgarias state-owned power utility to save around BGN 50 M a year, or a total of BGN 550 M by 2026, when the contract with the US-owned TPP expires. However, the power purchase agreement (PPA) with AES 3C Maritza East I, as well as the PPA with the other US-owned thermal power plant, TPP "ConturGlobal Maritza - East 3, cannot enter into force before the state pays its debts to the two entities. The state-owned power utility owed nearly BGN 800 M to the two TPPs in April, according to reports of investor.bg. AES 3C Maritza East I informs in a media statement that it will immediately cover its liabilities to the Maritsa East Mines, currently at around BGN 60 M, once it receives full payment of NEK arrears, currently at around BGN 500 M. Bulgarias Energy Ministry is still looking into opportunities to take out a loan to pay the two US-owned TPPs. Source: expert.bg (27.08.2015) |
| | Miners want smaller coal mining
Podkrepa union demanded that the coal production from open coal mines in the state Mini Maritsa Iztok EAD-Radnevo is sharply reduced. It already warned the Ministry of Energy, NEK and ESO that in the next six months they can count on only 14 million tons for the three thermal power plants in the complex. These amounts will go to maintain no more than 2800 megawatts of power, which will require or emergency import of electricity or power cuts. "We are forced to this step because of the huge amounts of abandoned work areas. The danger of collapsing mines and repetition of the spring of 1987, a year when Bulgaria became a huge 'disco is real, said the leader of Podkrepa in the company Gencho Genchev . Delay in the disclosure of the layers is due to the difficult economic situation and suspended payments by TPP AES and TPP Contour Global Maritsa East 3. Miners are due BGN 450 million, reminded Dimitar Manolov, president of Podkrepa. It is clear that the state must find a way to buy the assets of both plants. The same idea was announced by CEIBG. Source: Monitor (15.10.2015) |
| | Miners decreases their expenses for electricity
Energy costs in the state Mines Maritsa Iztok will decrease by 7% after completion of two projects, funded by International fund Kozloduy. Contracts for implementation of the projects were signed by the Executive Director Eng. Andon Andonov and Boryana Manolova, CEO of Siemens Bulgaria and Javier Donato - regional manager for Eastern Europe of Etraluks, Spain. The Fund provided BGN 2.3 million. The mines will add another BGN 900,000 from its own revenues so that the projects are completed over the next 15 months. Replacement of industrial lighting and upgrading of heavy mining equipment, which will reduce energy costs are activities envisaged in the project. After recent changes in the price of electricity the state companys monthly expenses have increased by nearly BGN 1 million. The selection of the companies - contractors was made by a procedure under the rules of the European Bank for Reconstruction and Development Source: Monitor (29.10.2015) |
| | Bulgarian Energy Holding to seek unsecured syndicated loan of at least 500 mln euro
State-owned Bulgarian Energy Holding will seek a syndicated loan of at least EUR 500 million, to be followed by a bond issue of the same size as the loan. The decision comes after BEH decided to cancel a procedure seeking a combined EUR 650 million in a bridge loan and a bond issue. Talks with candidates to provide the funding will open immediately and are expected to be completed in two weeks. The proceeds of the loan or the bond would go to cover debt accumulated by one of BEH's units to two U.S.-owned thermal power plants. In September BEH said it is inviting preliminary bids for an investment consultant on a 650 million euro bond issue, or for a bank to provide it with a loan of the same amount. In August, U.S. companies AES and ContourGlobal signed agreements with the National Electricity Company. BEH's subsidiary, on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. NEK owes the two plants around BGN 900 million in total. Source: 24 chasa (13.11.2015) |
| | BEH Terminates Open Tenders for Selection of Investment Consultant, Financing Institution
The Bulgarian Energy Holding (BEH) announced on its website on Wednesday that it terminated procedures launched on September 3 for an investment consultant and a financing institution. BEH said it "terminated an open tender with pre-selection for the selection of an investment consultant for the issuance of corporate bonds, and an open tender with pre-selection for the selection of a financing institution(s) for raising a loan/syndicated loan." On November 12, Energy Minister Temenouzhka Petkova told Parliament's Energy Committee and Committee on supervision of the energy and water regulator that BEH would decide on that day to terminate the procedure for selection of bank institutions which can provide a loan for dealing with intercompany obligations in the energy sector. Instead, direct negotiations would be held in the next two or three weeks with the banks which showed an interest in the procedure. The National Electricity Company (NEK) needs the loan to pay off its debt of nearly 900 million leva to US-owned AES Maritza East 1 TPP and ContourGlobal Maritsa East 3 TPP, which themselves owe close to 350 million leva to the Maritza East Mines. This will make possible the entry into effect of an agreement on a 100 million leva annual reduction of the price that NEK pays the US-owned TPPs for availability. Twelve of the world's largest banks have shown interest on condition the loan is government-guaranteed. BEH and the Energy Ministry will negotiate with them to provide the required financial resources of 650 million euro. Source: Monitor (19.11.2015) |
| | Mini Maritsa Iztok began rehabilitation of industrial lighting
In late October, Mini Maritsa Iztok signed two contracts increasing the energy efficiency of the company, financed by the International Fund for supporting the decommissioning of NPP Kozloduy. The project has a total value of BGN 3.3 million and is divided into two lots. The mining company will receive for free 70% of the value of the entire project (equivalent to BGN 2.3 million) and the remaining 30% are co-financing (BGN 990 thousand). After a procedure, implemented according to the rules of the European Bank for Reconstruction and Development, the selected companies are contractors SIEMENS EOOD, Bulgaria, for the project part for compensation of reactive power of heavy mining equipment, and Etralux, Spain, for the rehabilitation of industrial lighting by replacing it with LED. Source: Construction City (03.12.2015) |
| | Nine Banks Show Interest in Lending up to EUR 650 M to Bulgarias BEH
Nine banks have confirmed interest in lending up to EUR 650 BGN to the state-owned Bulgarian Energy Holding (BEH) company, Energy Minister Temenuzhka Petkova has said. The energy group is seeking the money to enable its indebted subsidiary National Electricity Company (NEK) to repay debt owed to the local units of U.S.-based AES Corp. and ContourGlobal. The two coal-fired power plants, AES Galabovo and ContourGlobal Maritsa East 3, owe BGN 325 M to lignite coal mines in Maritza East basin. The plants owners have agreed to cut the price at which they sell their electricity to NEK once they get repaid by the company. The Bulgarian authorities are currently preparing a timetable for negotiations with the interested lenders, Petkova said at an energy conference in Sofia on Monday. Confidentiality agreements have been signed with the nine banks and negotiations with each of them over loan terms are about to begin. The lenders were not expected to seek Bulgarian government guarantees for the debt, Petkova added. Bulgaria decided to launch direct talks with banks over lending to BEH after BEHs attempt to raise funds for repaying NEKs debt to the two coal-fired power plants through a bond issue failed last month. Both candidates, who had submitted binding bids in BEHs tender for arranging a bond issue and extending bridge financing ahead of it, had sought government guarantees for the debt. Finance Minister Vladislav Goranov, however, had rejected the demand in view of NEKs peristent financial deficits. Petkova said at the start of the energy conference on Monday that NEK has slashed by nearly a third its operating loss for the first nine months of 2015. NEK posted operating loss of BGN 218 M for the January-September period, a decrease compared with BGN 324 M loss a year earlier, said Petkova. Source: Monitor (08.12.2015) |
| | Bulgarian extracting companies are not different from world leaders
Engineer Ivan Andreev, The Bulgarian Chamber of Mining and Geologys CEO
Engineer Andreev, mineral and raw material industry is one of the best performing one during the last few years. Presently how much are actively operating mine enterprises and what is their share in the gross domestic product of the Bulgarian economy?
-It is well known that Bulgaria is a mining country. That is the evaluation of the index of extracted ore per capita. Mineral and raw materials industry is a large-scale, labor-intensive and risky business. It is necessary to know that our extracting companies are no different from world leaders-all of them set in the base of their policies and procedures sustainable development. It is that fusion of economic, social and environmental measures that could allow today mining companies to operate.
More than 24 thousand people are directly employed in our branch, while other 120 thousand are part of related business activities and providers. The branch gives about 4% of the countrys GDP as nearly 10% of generated electrical energy is from extracted fuels. In addition it ensures 100% of limestone for desulphurization installations at thermal power plants. Export is assessed at over BGN 3.4 billion.
It is also well known that our country is rich in knowledge, experts and deposits with proved potential. Certain important specificityis rather neglected though- we are rich in ores with low contents of useful components. Bulgaria has mineral diversity, but at places where certain mineral is present, economic efficiency from its extraction is far from world levels.
We joke with colleagues on the occasion of widespread myths about gold mining in the country. When the general public hears of our gold it immediately imagines some neat underground bars that only wait for us to extract them. The reality is totally different - gold has to be derived through several technologies so that it turns into bullion. And no one here mentions the risk of non-confirmation of the stocks. It is also not spoken of huge investments needed to reach these high levels of efficiency in the mining and environmental protection.
Do you have data what is the volume of investment in new production facilities and technological modernization in the sector?
-A lot has been invested in the last few years so that our leading companies may insure compatibility not only with legal requirements but also with world acknowledged standards for certification. Some of our members go beyond clear abiding by the law but also upgrade it with good practice.
Concrete pointing of a value of invested funds is a sensible theme for the industry. Not that there is something unduly or there is something to hide, but because numbers are easily manipulated. These speculations harm our members reputation. Separate companies share this info at different occasions.
Real investment in new technologies, machinery and equipment in all extraction companies are fact, though. For example treatment plants in the mines of Asarel, Elatsite and Chelopech are at top level. Investments are visible and tangible they improve the quality of life of local communities and help the state achieve its environmental goals.
Besides out member design and construct treatment station of large factories in metallurgy. One example is EnviroHemi Bulgaria that built station for rain water of Aurubis Bulgaria.
I also want to mention that Devnya Cement invested more than BGN 325 million in a new production line for cement and clinker, providing a platform for operational security and expansion in the segment.
Which are challenges before companies of the branch?
- Large business meets huge obstacles, too. On the outside all seem easy. Among inner challenges low prices of metals at world stock exchanges has to be mentioned first. It is a trend that has started about three years ago. It began to worry investors and to define their medium-term strategies. This reflects the limited programs for reinvestment of profits in capital projects and partly on their programs for corporate social responsibility.
Mining industry is dependent on stock prices. Over the years, there is a cycle in which there are spikes in prices and long declines. During periods of high prices investors make strategic investments that optimize and modernize production. One of the objectives is to reduce the expenses of the cost of production.
Globally, we observe a gradual cooling of the Chinese economy. CEO of BHP Billiton recently said it may be time for China to transform itself from an economy of resources and goods into service economy.
Another challenge is related to legislation. Mining strategy for the industry has been recently adopted. It ensures its sustainability. Soon renovation of industry related laws so that they can respond in a sustainable manner to novelties will come under the agenda.
A third challenge is the problem with personnel. You know that in our country there is only one university which educates future professionals for the industry. This is the Mining and Geology University St. Ivan Rilsky. It is sufficient for the "higher education". But that major unit of vocational secondary education that will ensure a steady stream of targeted and motivated people, by which the mining industry will develop lack definitely.
As Branch Chamber what legislative changes are necessary for sustainable development of mineral-raw materials industry?
- We pointed out that in 2015 Council of ministers adopted the National strategy for sustainable development of the mining industry in Bulgaria. That strategic document is drafted with the active participation of MGU Saint Ivan Rilsky, BCMG, mining university in the town of Leoben, Austria, and BAS. It outlines the direction and framework for sustainable development of the industry for the next 15 years.
It is the first step towards improving the laws and regulations in the country. I want to say that to a large extent it complies with the European guidelines and directives of the EU, but it should be derived from the best of Europe and of our law and practice. Basic legal document which follows the strategy is the Law on Mineral Resources. Many texts in it should be improved so that through a balance of interests sustainable development of mineral-raw materials industry and the whole economy is achieved. The low level of investment in the industry, unresolved problems with land use, illegal mining, and mining waste should also be taken into account. We as a Chamber are ready for a dialogue in order to get a quality result.
Lots of companies apply good practice for research, extraction and processing of mineral resources. Could you list some of the current larger projects?
- I will mention only part of the symbolic projects and practices that shape the transformation of mining companies on the road to sustainable development.
In 2011 Asarel Medet AD launched into exploitation a new cyclic flow technology for transport of overburden. Its capacity of 5,000 t / h leads to efficiency of mining transport of 24% and to reduction of emissions from mine vehicles by 41%.
In 2011 the company began extraction of cathode copper with 99.99% purity through the most modern plant for extraction and electrolysis in Europe and the first of its kind in the country.
At the same time Asarel-Medet completed projects that effected in reduction of specific cost for electric energy by 32%.
In 2013, Dundee Precious Metals Chelopech implemented SFR innovative technology by 12 stepper flotation reactors. Four devices have replaced the old flotation machines for copper flotation purification and other 8 are all flotation section of the new factory for the extraction of pyrite concentrate. Thus Dundee Precious Metals became the first mining company in the world that has introduced this technology on an industrial scale in its production process.
Massive investment program led to the modernization of production in Elatsite-med AD. That brought then the Award Investor of the Year in the mining industry for 2009. The company extracted 44 mln. Tons of mined produce and processed almost 13 million tons of ore in 2010.
For the period 2012-2015 Geostroy AD has fulfilled one of the most important environmental projects for the treatment of mine effluent in Bulgaria. This is a treatment plant in the mine complex Elatsite. The project is of the Japanese Mitsubishi Materials Techno Corporation. This is Elatsite-Meds entirely private investment. Its work will ensure pH values within the permissible limits of heavy metals and suspended solids in the legally allowed limit concentrations. In addition it will help to improve the condition of water in the river Malak Iskar.
Symbol of Bulgarian open mining - state Mini Maritsa Iztok EAD invests seriously and in a planned way despite the ongoing liquidity crisis in the Energy sector. For example, the company invested in 2010 BGN 96 mln in rehabilitation facilities and achieved record production results in 2011, as 32 mln. tons lignite coals were extracted.
In the autumn of 2015 Mines Maritsa Iztok EAD launched a project for improvement of energy efficiency. It will compensate reactive energy and will rehabilitate industrial lighting of the mining equipment. Its total value is BGN 3.3 million. Via the project the company will save up to 7% of the cost of electricity. After raising its price from this fall these costs increased by nearly BGN 1 million per month.
Holcim Bulgaria demonstrated modernization of production installations, consistent with best international practices and technologies for efficient and environmentally friendly production show in its career in the village of Chepintsi. Highly efficient floating grapple excavator is part of the processing plant with a capacity of 350-400 t per h of finished products.
The reclamation is a priority in the programs of Asarel Chelopech and Elatsite.
And more: Sites of Kaolin AD are maintained in such a condition that becomes permanent or temporary home to various species of animals and birds. Each year skylark fly thousands of miles to find a place to nest in sand quarries of the company.
The company realized a project for large-scale reclamation of external drainage of its existing field of quartz-kaolin raw material. The Company carried out afforestation activities on nearly 200 acres. Source: Construction City (21.12.2015) |
| | Bulgaria's Mini Maritsa Iztok should cut coal output to avoid risk of landslides
Bulgarian coal mining complex Mini Maritsa Iztok should cut its output to 27 million tonnes of coal annually in the next three years to avoid landslides, local media reported, quoted the company's head. In 2015, the company was forced to produce over 32 million tonnes of coal which it supplied to the two thermal power plants operated by U.S. companies AES and ContourGlobal, said Mini Maritsa Iztok CEO Andon Andonov. According to Andonov, if the company maintains these output levels, it risks triggering a landslide in some of the pits, which would lead to a halt in production, which in turn would cause a disruption of power supplies. Mini Maritsa Iztok is a 100% state-owned sole-proprietor joint-stock company. Source: 3e-news (04.01.2016) |
| | Bulgaria's BEH to discuss 650 mln euro loan with 12 banks in mid-Jan
Bulgaria's National Electricity Company plans to start discussions on January 14 with 12 banks which have shown interest to provide it with a loan of 650 million euro ($699 million), the country's energy minister said, as quoted by local media. In August, US companies AES and ContourGlobal signed agreements with the National Electricity Company, NEK, a unit of BEH, on a decrease in the prices at which it buys electricity produced by the two companies' thermal power plants. For its part, NEK pledged to pay back its overdue liabilities to the two plants. Also in August, energy minister Temenuzhka Petkova said that NEK owes the two plants around 900 million levs ($494 million/459.6 million euro) in total. In November, BEH sent to 25 international banks letters inviting them to provide it with a 650 million euro loan. Source: Dnevnik (07.01.2016) |
| | Tsvetan Vasilev made cessions in CCB for BGN 81 million.
The majority owner of bankrupt Corporate Commercial Bank - Tsvetan Vasilev, made cessions, through which he is trying to save BGN 81 mln of his money in the CCB. This is clear from the list of cessions and interceptions made by individuals and companies with money in the bank after it was placed under the special supervision on June 20th, 2014. The company Bromak of Tsvetan Vasilev has asked five cessions totaling EUR 41.41 mln, or nearly BGN 81 million. Other companies associated with Tsvetan Vassilev, also arranged offsetting receivables. Among them are Sana Space Hotel Hissar, Health and Wellness, Corsi Mountain Resort, Kostenets HHI, Infrastructure Company, Partner Leasing, Planasat, Gypsum, Rousse Shipyard West, Telish. Military Factory Dunarit made interceptions for BGN 13.35 mln, EUR 33.25 mln and USD 7.7 mln. Grisha Ganchev firm Elite Petrol has made several interceptions for BGN 40 mln, EUR 2.7 mln and USD 12.7 mln. Another company of the businessman - Litex Motors, has made deals with BGN 47 million and EUR 15.5 mln. Source: Standart (07.01.2016) |
| | American AES Maritsa Iztok waits for BGN 600 million from NEC
Unpaid obligations of National Electricity Company to the American AES Maritsa Iztok has grown to BGN 600 million. Negotiations of Bulgarian energy holding with several banks for granting of an emergency loan of EUR 600 million are expected to be over in a matter of weeks. Money is needed for payment with American AES and Contour Global Maritsa East 3. Concern is the request of the state Mini Maritsa Iztok EAD-Radnevo coal production from open coal mines to be reduced. For 2016 the thermal plant has declared 5.2 million tons of coal which provide normal rhythm of operation at 60 percent loads of the equipment. In recent months, the plant operates with 70 percent load on its two blocks. Source: Monitor (12.01.2016) |
| | Bulgaria's Mini Maritsa Iztok mines invest 4.7 mln euro in equipment
Bulgaria's energy ministry said on Monday that state-owned coal mining complex Mini Maritsa Iztok has invested BGN 9.2 million in new equipment. The new rotary excavator will reduce maintenance and operation costs, deputy energy minister Zhecho Stankov was quoted as saying in a press release. The funding was provided by the Kozloduy International Decommissioning Support Fund (KIDSF). Source: Darik Radio (19.01.2016) |
| | Trade Unions Urge State to Facilitate at Least Partial Payment of Debts to Maritsa East Mines
The Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Podkrepa Confederation of Labour will insist that the State help the Maritsa East Mines out of its dire financial straits, CITUB President Plamen Dimitrov told a news conference here on Monday. Dimitrov specified that the two confederations will write to the Government, suggesting an option in which the Bulgarian Energy Holding (BEH) would be furnished with sovereign guarantees for a loan ensuring at least a partial payment of the Mines' 515 million leva-plus receivables. In the CITUB leader's words, a number of repairs at the Mines have not been carried out or have been done using makeshift materials, and the repair crews are forced to buy screwdrivers, hammers and other tools on their own money. The BEH is negotiating a 650 million euro loan with foreign banks, the proceeds of which are supposed to pay the amounts that the National Electric Company (NEK) owes the two US-owned power plants in the Maritsa East Complex: AES 3C Maritza East 1 EOOD and ContourGlobal Maritsa East 3 AD. This is a condition on which the two TPPs will pay the nearly 350 million leva that they owe the Maritsa East Mines for lignite. The Brikel TPP owes the Mines nearly 50 million leva, and the Maritsa East 2 TPP almost 60 million leva. "At the end of last year it emerged that foreign banks distrust the Bulgarian Energy Holding (BEH) and refuse to lend it 650 million euro without sovereign guarantees. No sovereign guarantees for the BEH are envisaged in the 2016 budget. Energy Minister Temenouzhka Petkova says the negotiations with the banks continue," the "Sega" daily wrote on January 20. Source: offnews.bg (26.01.2016) |
| | Bulgarias BEH Ranks First Lending Offer of Banca IMI-Bank of China-J.P. Morgan Tie-up
State-owned Bulgarian Energy Holding (BEH) group has said that it will invite a consortium of n IMI, Bank of China and J.P. Morgan Securities for talks on extending bridge financing of up to EUR 650 M to its indebted subsidiary NEK. The consortium comprising n IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities has been ranked first in the evaluation of the binding offers submitted by two candidates last month. BEH EAD reserves its right at any time to invite the consortium ranked second for negotiations for concluding a contract, BEH said in a statement on Wednesday. The maturity of the bridge financing is up to 12 months, with no collateral. The bridge loan will be refinanced through a subsequent placement of a bond issue. The proceeds from the bridge loan will be used to repay the accumulated debt of the National Electricity Company (NEK) to coal-fired power plants AES Galabovo and ContourGlobal Maritsa East 3 in order for the decrease in prices under the long-term power purchase agreements to take effect and to cover debt owed by the two power plants to Maritsa East coal mines. As of late February, NEK owed an estimated total of BGN 950 M (EUR 485 M) to the two power plants, while the palnts' outstanding debt to Maritsa East coal mines was estimated at BGN 340 M (EUR 174 M). AES Galabovo and ContourGlobal Maritsa East 3 are owned by U.S.-based AES Corporation and ContourGlobal, respectively. Source: Capital (10.03.2016) |
| | NEK Gets Deadline Extension for Paying Its Dues to Maritsa East 1 and 3 Thermal Power Plants
The deadline until which the National Electricity Company (NEK) has to pay its dues to the Maritza East 1 and Maritsa East 3 thermal power plants has been extended, Energy Minister Temenouzhka Petkova told journalists on Tuesday. Petkova did not specify the length of the extension. She expressed her optimism that NEK will be able to obtain the loan it needs to pay its liabilities to the two US-owned plants. "I think the whole procedure for securing a loan for NEK will be successful," she said. The Bulgarian Energy Holding (BEH), of which NEK is a subsidiary, has reached agreement on an up to 650 million euro bridge-to-bond loan with a consortium of Banca IMI S.p.A. - London Branch, Bank of China Limited - Luxembourg Branch and J.P. Morgan Securities. The proceeds of the loan will settle NEK's one billion leva debts to the Maritza East 1 and Maritsa East 3 thermal power plants which, in turn, will pay the 350 million leva they owe to the state-owned Maritsa East Mines. Subsequently, NEK will be able to pay a lower availability price to the two coal-fired plants. Petkova said: "The two plants have seen that the loan procedure is unfolding positively and there are banks willing to provide the money. The fact that eight global banks, forming two consortiums, participated in the bidding procedure was a test passed successfully by the Bulgarian energy sector." She said negotiations are now underway with the consortium which was selected to secure the funding sought by BEH. "I believe the parameters offered are within the normal limits," she said, expressing hope that the negotiations will be completed in about 10 days and then the sides will sign an agreement Source: Dnevnik (16.03.2016) |
| | If the deal with the state-run National Electricity Company (NEK) fails, we will be forced to take the matters to court, Olivier Marquette, CEO of energy company AES Bulgaria said. Marquette referenced the agreement that AES signed with the state-owned company a year ago, which would guarantee that NEK would pay the BGN 600 mln it owes. In exchange AES Galabovo TPP will introduce a discount to its availability price. The power plant will also be able to pay the state-owned Maritsa East Mines. Marquette stated that the loan negotiation process of NEKs parent structure the Bulgarian Energy Holding (BEH) were in their final phase. He said he expected the deal to be finalised in April. Recently AES Bulgaria, together with a number of major energy producers and electricity distribution companies, created the National Energy Chamber (NEC), which in Marquettes words will be working towards legal representation of energy producers in Bulgaria. Source: Novinar (29.03.2016) |
| | Miners want a new price of coal
Mini Maritsa Iztok EAD - Radnevo wants a new price of mined coal higher by about BGN 9 per ton oil equivalent. The management of the state company has developed a new business programs for the next three years, which provides a yield of 27.35 million tons. This will allow them to catch up in the stripping and to implement the program for modernization and rehabilitation of heavy equipment. The program was returned by the Ministry of Energy for additional details. In recent years, opening of new stripping lags off dramatically behind the extraction. The reason is the loading of the two US power plants by ESO, admitted the president of CITUB Plamen Dimitrov. He expects the agreement between BEH and the bank consortium to be signed, which would bring a loan of BGN 1 billion. BGN 900 million will settle the debts to the two US plants, which in turn will finally pay back the mines. Source: Monitor (18.04.2016) |
| | Bulgarian Energy Holding swings to BGN 29.5 mln cons net profit in 2015
Bulgarian Energy Holding (BEH), which pools all state-owned energy assets, turned to a consolidated net profit of BGN 29.5 million in 2015 from a loss of BGN 277.4 million in 2014. Among BEH's nine subsidiaries, gas transmission operator Bulgartransgaz recorded the highest profit of BGN 93.2 million, up 23.1% from 2014, followed by nuclear power plant (NPP) Kozloduy with BGN 82.4 million, up 6.1%. The slight improvement in Kozloduy's results came on the back of an increase of its output for the non-regulated market, energy minister Temenuzhka Petkova told a news conference. The net profit of the Electricity System Operator (ESO) more than tripled to a record high of BGN 63.1 million in 2015 from 19.6 million levs in 2014 mainly due to a 10% cut in administrative expenses, which contributed BGN 42 million to the company's profit. Monopoly gas supplier Bulgargaz managed to quadruple its profit to BGN 20.4 million in 2015. Troubled NEK, which acts as a link between electricity producers and distributors, slashed its net loss by 66.5% to BGN 196.7 million in 2015. It recorded a profit of BGN 39 million for the first quarter of 2016. On the negative side, the net loss of thermal power plant Maritsa Iztok 2 more than doubled to BGN 72 million in 2015 from BGN 35 million in 2014, as costs rose faster than revenues. The profit of coal miner Mini Maritsa Iztok dropped 39.4% to 2.6 million levs despite a record high output of 32 million tonnes of coal in 2015. The Independent Bulgarian Energy Exchange (IBEX), which launched operations in January 2016, accumulated a loss of BGN 214,000 in 2015, but recovered to a net profit of BGN 600,000 in the first quarter of 2016. Source: Monitor (26.04.2016) |
| | 2 US power plants settle debts to Bulgarias Mini Maritsa Iztok
The two American power plants - TPP AES Galabovo and ContourGlobal Maritsa East 3 TPP, have fully settled their debts to Mini Maritsa Iztok EAD until the Easter holidays. The sum, amounting at BGN 356 million, was received by the National Electricity Company (NEK). Andon Andonov, executive director of the mining company, announced the news speaking for the Bulgarian National Radio (BNR). The payment covers the entire sum amassed over the years. The Maritsa Iztok Mines, on the other hand, paid off its due debts, including the interests and VAT, to the state, the banks and the companies. The mines now provide coal to the power plants according to the filed orders. Source: 24 chasa (03.05.2016) |
| | Bulgarian miner Mini Maritsa Iztok invests EUR 26 mln in equipment
Bulgaria's economy ministry said on Thursday that state-owned coal mining complex Mini Maritsa Iztok plans to invest EUR 26 million in two rotary excavators. The contract, which will be signed on Friday, includes the design, manufacturing, delivery and installation of the new equipment. Funding for the investment has been provided by the Kozloduy International Decommissioning Support Fund (KIDSF), administrated by the European Bank for Reconstruction and Development (EBRD). In January, Mini Maritsa Iztok spent BGN 9.2 million provided by KIDSF on a in new rotary excavator in order to reduce its maintenance and operating costs. Source: Monitor (25.05.2016) |
| | Coal production remains most risky for miners
An average of one accident per 115 workers was registered last year in companies extracting coal in Bulgaria. Although incidents in ore mines are more common, consequences are significantly lighter. Far down in the negative rating are the coal mines, according to calculation of apital Daily based on data provided by the General Labour Inspectorate (GLI). With the exception of the state-owned ini aritsa Iztok, almost all other companies for coal are owned by Hristo ovachki. The extraction of coal and ores are generally considered risky and therefore subject to periodic review. Companies that extract coal underground, where the risk is greatest, are inspected once every three months, while checks in ore mining companies are every six months. Control in open coal mines and ores is annual, GLI said. Realistically, however, companies are inspected more often. Last year the total number of inspections was 199, operating companies 22. Of them coal is mined in 12 (4 underground and 8 open-pit) and metallic minerals are mined by 10 companies (only tw2o open-pit). The data of the inspection show that accidents in coal mining are fewer, but more severe. Source: Capital (03.06.2016) |
| | The State saves about BGN 300 million from the amended contracts with the two US-owned thermo-electric power plants in Bulgaria, AES Maritsa East 1 and ContourGlobal Maritsa East 3, Energy Minister Temenouzhka Petkova said. Following the repayment of the outstanding debts of the National Electricity Company (NEK) to the two plants in April, they agreed to lower with immediate effect the capacity price that they charge NEK: by 14% for AES and 15% for ContourGlobal. Petkova was asked about the amount of the interest due on a syndicated loan of EUR 535 million that NEK had to take out to pay up to the two power plants until it issue bonds. The precise interest rate of the loan is a trade secret but its average size is 3.8%. The penalty interest is about one percent above the base interest rate, Petkova said. She said that the effect from the amended contracts exceeds BGN 96 million per year, or nearly BGN 1,000 million until the expiry of the long-term agreements with the plants. Source: Capital (18.07.2016) |
| | Mines Maritsa Iztok looking for two loans of about BGN 52.3 m
Despite the fact that only three months ago the state-owned Mines Maritsa Iztok had received arrears of BGN 356 m from two US power stations AES Maritsa East 1 and TPP ContourGlobal Maritsa East 3, the company is looking for more financial resources. This became clear from the two announced competitions for banks to lend overdraft and an investment loan totaling in BGN 52.3 m. The search overdraft limit is BGN 28 m, of which BGN 8 m will be used for current payments and obligations to suppliers, and the remaining BGN 20 m payment of wages, taxes, insurance and other operating needs. The company is currently using 3 lines of credit in the form of overdraft facilities totaling in BGN 40 m. These lines of credit, however, expire on 30th September this year, which is one reason to seek the signing of a new contract. Due to the seasonality of their work and lower yields in spring and fall, the use of working capital funding to provide payments during those periods is required. At the same time the company reported a minimum profit of BGN 2.6 m for 2015, which is nearly 40% lower compared to that of 2014. The loan aims to finance the two multi-bucket wheel excavators. This is the first contract for the upgrading of heavy equipment to the mines for 26 years. The cost for design, manufacture, supply, installation and commissioning of two rotary excavators is EUR 25.8 m. Source: Capital (28.07.2016) |
| | Mines Maritsa Iztok waits for BGN 110 million
BGN 110.4 million is the sum that Mines Maritsa Iztok expects to get by the four major companies in the energy complex. The biggest claims of the mines are for produced and sold lignite coals from the state TPP Maritsa Iztok 2- BGN 69.168 million as BGN 24.154 million is what private briquette factory Brickell has to pay for coal. After receiving claims from NEC, the two American thermal power plants in the energy complex - ContourGlobal MI-3 and AES MI-1 melted their obligations to the company respectively to BGN 11.46 million and BGN 5.62 million. Besides its huge debts to the mines, TPP Maritsa Iztok 2 has a debt of BGN 84 million to other group companies of BEH. Their total amount is assessed to BGN204.64 million. The ultimate loss before tax of the TPP is BGN 51 million, which is more by BGN 18.3 million compared to the same period of 2015. Due to falling prices of electricity and natural gas in the first half of the year and revenues of NPP Kozloduy dramatically decreased as well as those of Bulgargaz by BGN 31 mln and BGN 235.22 mln respectively. Bulgargaz reported profit of BGN 35.424 million for the first half of the year. Source: Standart (02.08.2016) |
| | BGN 71 mln concession revenues received by energy ministry in 2014
By 31.12.2014 there were a total of 498 concessions on ores and minerals extraction administrated by the Ministry of Energy on the territory of the country, the press office of the Bulgarian Government announced. The revenues received from the concession payments for 2014 amount at BGN 70,975,707. The Council of Ministers approved today the reports of the commissions on control on the concessions ores and minerals extraction for 2014. The main reason for the decline is delayed payments of Mini Maritsa Iztok. The most serious decline in revenues in 2014 was registered in the concessions of energy mineral resources by nearly BGN 7 million or 31%. The decrease in metals was by BGN 5.4 million or by 18%, as and non-metallic minerals (including construction and stone materials) it is by BGN 1.1 million or by 6%. The concessionaire, who pays most to the state for mining, continues to be Dundee Precious Metals Chelopech with imported BGN 11.4 million, which is BGN 35,721 less compared to 2013. For the period 2011 - 2013 Dundee submitted to the treasury BGN 34 million under the form of concession payments. The second largest concessionaire in terms of payments to the Treasury with BGN 10 million is Elatsite med. Petroceltic that produces natural gas from the field Galata in the Black Sea, contributed BGN 5.5 million. The fourth position is held by Asarel with BGN 4.7 million revenues and the fifth position is taken by Oil and Gas Exploration and Production with BGN 2.2 million Source: mediapool.bg (04.08.2016) |
| | Mini Maritsa Iztok already buys electricity from the power exchange
State-owned Mini Maritsa Iztok already buys electricity from the open market by Independent Bulgarian Energy Exchange (IBEX), the executive director of the company Ivan Andonov announced. Its first purchase on the exchange happened early last week. Transactions are currently for minimum quantities of 35 megawatts, but the achieved price of BGN 44 is BGN 33 lower than the one Mini Maritsa Iztok paid until now. According to the report of the company, in six months for electricity were spent BGN 42.2 million, an increase of 21.8% compared to the same period last year. This is due both to the larger quantities purchased and to the higher costs for commitment to society, which in the middle of last year was increased by 94.5%, says the report of the company. Thus, the average price at which the company bought, was BGN 140 per megawatt hour including taxes. Source: Monitor (22.08.2016) |
| | Bulgarias Maritsa East Mines Seek BGN 28 Million Loan
Bulgarias Maritsa East Mines have re-launched a call for a loan through overdraft totaling BGN 28 m (about EUR 14 m), the Bulgarian Energy Holding parent structure of the mines, said in an announcement on its website. BGN 8 m will be needed for paying debts towards suppliers, while BGN 20 m would be put towards salaries and taxes. The deadline for applications submission expires at 15.00EET on Aug 24, 2016. (publics.bg) Source: Other (24.08.2016) |
| | United Bulgarian Bank and SG Expressbank granted BGN 28 million working credit to "Mini Maritsa Iztok"
Mini Maritsa Iztok managed to find banks to grant it credit amounting to BGN 28 million. For the working capital credit the mining company ranked first the two banks - UBB and Societe Generale Expressbank, which will provide a total of BGN 28 million of overdraft credit. The major loan of BGN 20 million will be granted by Societe Generale Expressbank and will cover obligations to employees, taxes and insurance. The remaining BGN 8 million, which will be provided by UBB, are current payments and obligations to suppliers. The contracts with both banks are still not signed. Under the terms of the announced contest the repayment period is 12 months. The procedure for an investment loan of BGN 24.3 million is still pending for the approval of the Bulgarian Energy Holding. Source: Capital (20.09.2016) |
| | Profit of TPP AES Galabovo fell by nearly 30% in nine months
TPP AES Galabovos net profit for nine months have decreased by 29.3%, to BGN 77.7 million. The main reason for the decrease was lower operating income, which shrank by 15.4 % for the period. This led to a decrease in the operating profit of 15.21%. The headquarters recorded a decrease of 5% in productivity, compared to the previous year. The decrease in revenues of AES will be compensated in 2018, as besides the price reduction, the company has contracts with NEC to increase the hours. The greatest achievement of the company this year is that NEC payed its debt to it amounting to BGN 309 million, allowing AES to clear their debts to the state Mini Maritsa Iztok in the amount of BGN 51 million. Source: Capital (08.12.2016) |
| | BEH freeze your company for industrial investments
Operations of the established three years ago Energy Investment Company as a subsidiary of Bulgarian Energy Holding (BEH), which had to realize the plans of the government of Plamen Oresharski for reindustrialisation of Bulgaria with state funds, are frozen. The news was announced by a representative of BEH. The company was registered on January 31, 2014 as property of BEH to carry on investment business and intellectual property transactions, to develop and introduce new technologies, entrepreneurship, consulting, engineering and other activities in the field of energy. Launched at that time idea of the then Minister of Economy and Energy Dragomir Stoynev was for BEH to expand into an industrial holding having bought the assets of two bankrupt companies - Remotex- Radnevo, which repairs equipment of the state-owned Mini Maritsa Iztok and fertilizer factory Chimco in Vratsa. Source: mediapool.bg (03.02.2017) |
| | New EU Regulation Threatens Bulgarias Thermo-electric Plants
Recently proposed amendments to EU's Industrial Emissions Directive (IED, 2010/75/EU) regarding the industrial CO2 emissions, including that of thermoelectric plants, is threatening to lay off 10,000 Bulgarians employed in the energy sector. The unrest follows a decision of the European parliament of 15th of February to accept a proposal on the reform of the EU Emissions Trading System (ETS). The proposal is meant to ensure a more cost-effective system of emission reductions and an overall increase of low-carbon investments across the EU. The leadership of Bulgaria's Chamber of Mining and Geology, Maritsa-Iztok Mines EAD, and energy experts have come up with a common declaration against the proposed amendments to the Best Available Techniques (BAT) reference documents, the so-called BREFs. The amendments set stricter permit conditions for CO2 and other greenhouse gases emitted by industrial installations. The problems is that none of Bulgaria's thermal plants and mining installations can comply with the new regulations, and their upgrade is going to cost hundreds of millions of BGN. Source: 3e-news (22.02.2017) |
| | Mini Maritsa Iztok is now an official railway carrier
Mini Maritsa Iztok coal mining company can now carry goods on the national railway infrastructure in the section Nova Zagora - Stara Zagora - Dimitrovgrad - Simeonovgrad, the company announced, which has received an official safety certificate for the railway safety management system. This was the last condition for the company to operate as an independent railway organization. With the acquisition of the certificate, Maritsa Iztok became thefourth state-owned company and the 14th in Bulgaria, which has the right to transport goods on the national railway infrastructure. This will mostly apply to transport on the Simeonovgrad - Nova Zagora railway, which is not electrified, but provides a more direct connection from Turkey to the interior of Bulgaria and Europe. The license also allows the rolling stock of the mines to transport limestone from the deposits in the region to the thermal power plants of the complex that they use for their sulfur-purifying installations. Source: Banker (22.05.2017) |
| | Bulgarian coal miner Mini Maritsa Iztok seeks EUR 10.2 mln working capital loan
The Bulgarian Energy Holding (BEH) said that coal mining company Mini Maritsa Iztok is seeking a BGN 20 million loan in the form of overdraft, to be used for current payments to suppliers, employees and the state. The loan is to be divided into two lots - of BGN 12 million and BGN 8 million, respectively, BEH said in a press release. The mining company will use the BGN 12 million portion to cover employee-related costs, while the BGN 8 million portion will cover payments to suppliers. Loan offers should be submitted by August 7. In May, Mini Maritsa Iztok said its net profit rose to BGN 37 million in the first quarter of 2017, compared to BGN 10.7 million in the like period of last year. BEH pools state-owned energy assets. Source: Capital (26.07.2017) |
| | BEH will issue Eurobonds
The Bulgarian Energy Holding (BEH) started a series of meetings with international investors in connection with the planned issuance of Eurobonds worth EUR 500 mln. The series of meetings will begin in London and will continue in Frankfurt and Vienna. Following the successful conclusion of the negotiations, BEH will issue new 7-year and 10-year Eurobonds. BEH has hired Citigroup and First Financial Brokerage House to direct the forthcoming bond issue that is needed to refinance the company's 5-year Eurobond debt of EUR 500 million due in November this year. It will refinance the EUR 500 mln bond loan that the holding company issues in 2013 at a yield of 4.25%. BEH also sold a second bond issue two years ago worth EUR 550 million at a yield of 4.88%, maturing in 2021. The expectations are by refinancing the first BEH emission to save service fees. The holding plans to double listing of the new Eurobonds on both the Bulgarian and the Irish Stock Exchange. Through BEH the state owns the biggest energy companies in Bulgaria for production, supply and transmission of electricity, natural gas and lignite coal - Kozloduy NPP, Maritza East 2 TPP, NEK, ESO, Bulgargaz, Bulgartransgaz and Mini Maritsa East. Source: Standart (18.06.2018) |
| | State-owned companies in the energy sector are indebted to BEH
State energy companies are increasingly indebted to their parent company - the Bulgarian Energy Holding. This shows the financial statements of the companies for the first six months of the year. For the period January - July BEH's receivables from its subsidiaries increased by BGN 293 million to BGN 3.07 billion. The largest energy company in Bulgaria continues to finance the companies in its group, which are in severe financial condition. Among the most indebted companies is the public electricity supplier - NEK. The uncovered loss of the company's past years towards the end of the last six months reached already BGN 1.18 billion. The overdue payables of the company for the same period are BGN 360 million. Thus, the company, which redistributes electricity in the country, ends the half-year with a loss of BGN 75 million. According to the financial statement, without the support of BEH, there are serious doubts that NEK can continue to operate. Loss for the first six months of the year is also reported by the state-owned Maritza East 2 TPP and the mining company Maritsa East. The Bulgarian Energy Holding receives funds from its profitable companies, which then redistributes to the losing ones. Traditionally, the profitable companies in the first half of 2018 are the Kozloduy NPP, the gas carrier Bulgartransgaz, the owner of the ESO transmission grids. Source: econ.bg (08.08.2018) |
| | BGN 254 million are the revenues from the beginning of the year in Mini Maritsa Iztok
Since the beginning of the year, Mini Maritsa Iztok has revenues of BGN 254 million. 95% of the current coal mining plan has been met. All orders of the power plants with which the Radnevo mines have been contracted have been fulfilled. Mini Maritsa Iztok is one of the few state-owned companies in the energy sector, which have always made profits in the past 5-6 years. A serious problem for the state coal mining company is the debt of the power stations that are growing. TPP Maritza East 2 has unpaid BGN 132 million, of which 42 are overdue, TPP Brikel - BGN 10 million, TPP AES - BGN 6 million, KONTUR GLOBUL TPP - BGN 5 million . The investment program of the company, which amounts to BGN 91 million, is being executed in time. Source: 24 chasa (14.08.2018) |
| | Minister Petkova: We are working to preserve Maritsa-East energy complex capacity
Maintaining the stability of the energy system and preserving the capacity of the Maritza East complex are among the leading priorities in the energy sector. This is what Bulgarian Minister of Energy Temenuzhka Petkova, heads of state-owned energy companies and representatives of trade unions agreed on during a meeting held at the ministry. By March 2019, Maritsa East 2 TPP should pay for greenhouse gas emissions a sum of over 150 million euros. The funds will be provided by the state. In the coming months the measures for long-term guarantee of the stability of the state-owned thermal power plant will be specified, Minister Petkova added. It was announced that there would be no layoffs in the Maritsa East Mines by 2020. Minister Petkova expressed confidence that by the end of November there would be a derogation for the energy giant, which would be indefinite. Source: Standart (17.10.2018) |
| | BEH's revenues have soared
The Bulgarian Energy Holding (BEH) reported over 90% growth in revenues to BGN 312 million for the nine months of last year. For this period there was growth in the profit - before taxes it was BGN 137.7 million, or an increase of about 15% compared to a year earlier. This shows the company's report published by the finance ministry. The enormous increase in revenues is mainly due to the dividends paid by the BEH companies, the biggest contribution coming from the Kozloduy NPP. The sale of the energy exchange for BGN 5.2 million on the Bulgarian Stock Exchange also affected the revenues of BEH. The Maritza-Iztok Mines has contributed with a profit of BGN 3.5 million and has also transferred 50% of its dividend to BEH. Another state energy company - Bulgargaz - has recorded profit. Nevertheless, the company registered a drop in its net income to BGN 4.1 million for the nine months of 2018. For comparison, in the same period a year earlier they were almost BGN 20 million. NEK is also performing with a declining trend in its results. The company reported a negative financial result for the nine months amounting to BGN 153.4 million, compared to the same period in 2017, when the decline was by BGN 62.4 million. However, Bulgartransgaz and the Electricity System Operator show positive results, whose profit for the nine month was BGN 23.4 million. Source: Sega (09.01.2019) |
| | Trade Union Podkrepa: We will Protect Coal Plant Maritsa Iztok by all Means
Trade union Podkrepa will protect the Maritsa Iztok complex by all available means, union leader Dimitar Manolov said at the opening of a congress of the organisation 30 years after its establishment, Focus News Agency reports. We will always protect the Maritsa Iztok complex while it is able to operate, generate the sole 100% Bulgarian electricity, not dependant on imports of raw materials, technology or labour, Manolov declared. We hope the next European Commission will have a more reasonable policy in this crucial field not only for Bulgaria but for Europe as well, he added. He further said the Bulgarian coal power industry in the area of Maritsa Iztok was at risk of destruction and needed continuous efforts by Bulgarian institutions to protect the national energy sector. Environmental protection is very important, but the priority should be placed on peoples interests and then one should find the acceptable balance, he said. Source: National television (12.02.2019) |
| | BEH works with a consultant on the capacity of coal plants
The Bulgarian Energy Holding (BEH) signed a contract with an international consultant to develop a capacity mechanism, as provided by European legislation, for power plants that produce electricity from coal, said Energy Minister Temenuzhka Petkova. By the end of October, this mechanism must be notified to the European Commission, Petkova pointed out and hoped that the mechanism would be approved. Thus, we will give a much greater sustainability to the development of coal mining in Bulgaria and a guarantee for our energy security, said Temenuzhka Petkova. This industry is a sector of the Bulgarian economy of strategic importance and at the heart of a number of other sectors. It forms almost 5% of GDP. It directly employs are nearly 22,000 people and indirectly - about 120,000. One of the biggest challenges facing the mineral industry is related to the development of coal mining, said Petkova. Coal-fired power plants account for 46% of the electricity production in the country, which is directly related to the national and energy security. Source: investor.bg (19.08.2019) |
| | The court finally blocks most of Remotex-Radnevo's assets
The Plovdiv Court of Appeal affirmed the precautionary measures imposed on most of the assets of the bankrupt Remotex - Radnevo, which were requested by former workers and creditors united in the Cherpivir company. Four months ago, the Stara Zagora District Court issued a ruling in that direction, but it was appealed. The current second instance ruling is final, meaning that the current owner of the assets Remotex M will not be able to dispose of them so that they end up in another owner. This is necessary since the main litigation is precisely the controversial transfer through a complex series of property transactions of the former Mini Maritsa Iztok SPJSC repair plant to another company, in which Greek citizen Ioannis Giofkos, a resident in Bulgaria, is a major contributor. A case is currently underway to reverse this transfer, which, if any, will rewind the tape back five years and the property could be returned to the bankrupt Remotex - Radnevo. Source: Capital (16.09.2019) |
| | KPKONPI found conflict of interest with a former BEH chief
Former head of the Bulgarian Energy Holding (BEH) Petio Ivanov found himself in a conflict of interest. The reason is that he combined this post with his participation on the board of directors of Bulgargaz. This was made clear by a decision of the Anti Committee for Combating Corruption and the Withdrawal of Illegally Acquired Property (KPKONPI). As director of the holding Iliev voted for himself during his appointment at Bulgargaz and determined his salary. Therefore, he was fined BGN 15,000 and ordered to forfeit the received remuneration of BGN 60,000. Other former and current managers of BEH, such as Jacquelin Cohen, Zhivko Dinchev and Andon Andonov, are in a similar situation, but there are no known decisions made about conflicts of interest. Cohen, in addition to the director of the holding, is also a member of the Board of Directors of Kozloduy NPP. Dinchev is the executive director of TPP Maritza-East 2 and Andonov directs Mini Maritza-East. Source: Sega (15.10.2019) |
| | The remains of Agrobiochim's assets in Stara Zagora are being... gifted away now
Dimitar Smilenov, bailiff of the former largest nitrogen fertilizer plant in Bulgaria, Agrobiochim JSC in Stara Zagora, is trying to raise any funds by selling "last pieces" of the assets of the bankrupt plant. On December 11, he announced eight auctions for the sale of properties owned by the company. After dozens of sales attempts, their price has already become more than ridiculous. For example 18,132 sq.m. agricultural land in the area of the village of Hrishteni near Stara Zagora, will be traded at a price of BGN 9660. Or two decares per BGN 1. The same is the situation with other sites of Agrobiochim JSC. The debts of the bankrupt chemical industry enterprises, amounting to tens of millions BGN, are mainly to the state-owned companies Bulgargaz, NEK, and Mini Maritsa Iztok, and at these levels of trade they would never be repaid. The liabilities in question as of September 30, 2000, when the Stara Zagora-based plant went bankrupt, exceeded BGN 90 million. The liabilities to workers alone amounted to BGN 5 million at that time. Available tangible assets did not exceed BGN 10-12 million then, before dozens of revaluations. Source: Banker (11.12.2019) |
| | The open work at the three mines of Mines Maritza-East is being terminated (today), but the mining sections are still in operation. This was decided at a meeting of the operational headquarters for measures to prevent the spread of COVID 19 coronavirus, which was formed in the company. The measure is being introduced until March 31, to prevent the spread of coronavirus infection in the enterprise and will not lead to problems with the rhythmic supply of coal to the TPP of the complex, the company assure. In order to create a good methodology for prevention in the mining complex, given the declared state of emergency in the country, the operational headquarters will be in direct contact with the Regional Operational Headquarters in Stara Zagora. Various forms of absence of work are being undertaken in order to minimize the number of staff required for the normal operation of the complex and to ensure the normal supply of coal to the power plants. CEO Anton Andonov said that the company has 85 million tonnes of open coal ready to go to thermal power plants. Source: investor.bg (17.03.2020) |
| | The "rescue" of TPP Maritsa-East 2 for three months costs almost BGN 1 billion
The state continues to pour huge resources into the troubled TPP Maritsa East 2, and the bill for the "rescue" is already about BGN 1 billion. At the beginning of the week, the Bulgarian Energy Holding (BEH) bought the necessary greenhouse gas quotas for 2019 for the state power plant, which according to the company's report are worth a total of BGN 306 million. This became clear at a meeting between the line minister Temenuzhka Petkova and the leaders of the two trade unions CITUB and Podkrepa - Plamen Dimitrov and Dimitar Manolov, in connection with the consequences for the energy sector of the COVID-19 pandemic. With this financial aid, the state financing of the debt-ridden TPP Maritsa-East 2, which reported a new loss of BGN 210 million last year, is approaching BGN 1 billion within less than three months. On March 4, BEH decided to increase the capital of the plant by BGN 597 million, transforming part of the TPP's debt to the holding. Although on the verge of bankruptcy, the company is not cutting costs, and high energy prices deprive it of the opportunity to participate in the free market. Against this background, the state is persistently trying to support its work, mostly for political reasons - it employs about 2,400 people, and in addition to its activities, several hundred more people are employed in the state Maritsa East Mines. Source: investor.bg (21.05.2020) |
| | The mining industry produced output worth BGN 2.9 billion in 2019
The extraction of mineral resources in the country has increased slightly last year in terms of volume, but due to the rise in gold prices the value of production increased faster and reached a total of BGN 2.9 billion. This is shown by the data from the annual bulletin of the Bulgarian Mining and Geological Chamber (BMGC). However, the prices of some metals marked a significant drop in international markets, which created difficulties for many mining companies, said the chairman of the chamber Nikolay Valkanov, who is also the main owner of the mines for lead-zinc ores. The country also mines copper ores, as well as non-metallic mineral resources and fuels. In 2019, the trend of recent years to reduce coal production continues, and liquid fuels in general have a negligible share. Mineral production last year remained almost unchanged, rising by just over 1% to 109.9 million tonnes in total. The production of rock facing materials increased the most (22%), but with minimal volumes in general. There is an increase of 8% in the extraction of aggregates, which is mainly related to the development of construction. For ores, which are a key group of raw materials with nearly a third of the total yield, the increase is 3%. The most significant is the decline in coal mining - 7%, as the downward trend continues for the second consecutive year, and the result of 32.1 million tons of production is the lowest since 2014. Source: Capital (26.08.2020) |
| | BEH gives BGN 50 million loan to Mini Maritsa Iztok, grants BGN 5 million to employees
Bulgarian Energy Holding will allocate BGN 50 million to the Maritza Iztok complex, Energy Minister Temenuzhka Petkova said after a meeting of the Branch Council for Tripartite Cooperation, Mining and Geology. Separately, another BGN 5 million is allocated for updating the salaries of the people working in the companies, she added. The salaries of the people working in the mines of the complex have not been increased for 30 months, said the President of CITUB Plamen Dimitrov. Earlier, Prime Minister Boyko Borissov also met with CITUB President Plamen Dimitrov and representatives of the Mini Maritsa Iztok trade unions. The talks focused on the future of the Maritza Iztok complex, as well as the government's measures to deal with the socio-economic crisis caused by the COVID-19 pandemic. The meeting with the Prime Minister was attended by Deputy Prime Minister Tomislav Donchev and Deputy Minister of Energy Zhecho Stankov. "and the third topic is the 'Green Deal', prepared by the European Commission," said Minister Petkova. 'Our government has clearly declared its attitude to the Maritza Iztok complex and the coal-fired power plants. Bulgaria will continue to rely on these power plants at least until 2030, with a horizon of 2050,' Temenuzhka Petkova said. 'The thermal power plants of the Maritza Iztok complex produce 46 percent of the energy Bulgaria needs,' Temenujka Petkova reminded. Source: Darik Radio (09.09.2020) |
| | Bulgaria will have to import electricity in the winter
Bulgaria will have to import electricity in the winter. This is stated by the Electricity System Operator in the Plan for Development of the Transmission Electric Network of Bulgaria for the period 2020-2029, submitted to the EWRC. ESO warns that there will be a drastic disparity in the ability to cover domestic electricity consumption. In some years, it will even be necessary to activate the slow tertiary reserve and/or import electricity. According to the company, the situation will be even worse if long-term extreme winter conditions, exhausted primary energy resources in hydropower plants and condensing plants and increased capacity failures are combined, as was the case in January 2017. In order to avoid such critical situations, ESO explains that they have started conducting tenders for the supply of a slow tertiary reserve from electricity consumers. Joining the European Union "within the day" would allow us to cover possible shortages through imports. For the first time in the plan, ESO has taken into account the impact of Turkey's electricity system on the region. The forecasts of the Turkish operator are for a large growth of new generating sources over 140 GW of installed capacity by 2040. At the same time, no new large-scale sources of electricity are available in Bulgaria, available 24 hours a day, which do not emit greenhouse gases. This will lead to an increase in transit flows through our country in the east-west direction and "may make the Bulgarian-Turkish and Bulgarian-Serbian border bottlenecks that would restrict free trade." The transit through Bulgaria would become even bigger, with the reduction of the production from the generating capacities in the complex Maritsa East, according to ESO. Source: Trud (16.10.2020) |
| | BEH will have a new management, none of the current managers applied in the competition
None of the current BEH managers applied in the competition for members of the board of directors announced by the Ministry of Energy. The resigned head of the holding, Jacqueline Cohen, has already stated that he will not stay, and Zhivko Dinchev and Andon Andonov have submitted documents for the boards of TPP Maritsa East 2 and Mini Maritsa East respectively. Seven people will fight for 3 seats on the board. Among them well-known in the energy circles are the former MP Valentin Nikolov, Ivan Andreev, who is a former head of NPP Kozloduy, the financial director of Mini Maritsa-East, Stelian Koev, Dimcho Margitov, who works in BEH, and Lyubomira Gancheva. Kozloduy NPP will also have a change of managers, with the possible exception of the plant's director Nasko Mihov, who is participating in the competition. Ivan Yonchev and Jacqueline Cohen did not submit documents. Yonchev is currently the head of NEK and is applying for it. Source: 24 chasa (24.02.2021) |
| | The Maritza-East complex will implement green technologies
Even without a formal start of the Fair Transition Mechanism and the implementation of the Green Deal, 2020 was a very difficult year for Mini Maritsa East EAD - the largest coal company in Bulgaria, said the company's CFO Stelian Koev. "Mini Maritza East currently employs a little over 7,000 people. In 2020, we experienced a 22 percent reduction in coal production. This was an extremely negative blow to our financial results. Therefore, by the end of 2020, we have formed something as a think tank, together with the directors of the thermal power plants in the Maritza-East complex, who are our clients. The reason for forming it was to start a discussion about the applicable projects that can be used for the future of the complex," Koev explained. He added that the main goal of the company's management is to try to keep as many jobs as possible, as well as to preserve the income of people from the region, emphasizing that this is very important for local municipalities - Radnevo, Galabovo, Stara Zagora, Haskovo, Sliven and Yambol. There are already similar projects implemented in the United States and Northern Europe. "We know that these technologies are new, there may be technical problems before their implementation, but they will inevitably be resolved in the near future. And they can be implemented in our complex. At the same time, we have no doubt that projects like this can to run in parallel with others, including hydrogen, renewable energy, retraining of people, etc. ", he pointed out. Koev is convinced that enough funds can be found for these projects. "For us as a management, it is important to make sure that local people will have enough job opportunities and keep their income to use here in the region. In conclusion, we must not forget that the motto of the EC and the EU on energy transformation is that no one will be abandoned. " Koev stated in the final. Source: Banker (08.04.2021) |
| | The trustees of CCB have reimbursed 25% of the money
Over BGN 1.25 billion are the funds distributed to creditors by the trustees of the bankrupt Corporate Commercial Bank as of the end of March 2021, according to the Bank Deposit Guarantee Fund (BDGF). The amount allocated for recovery is significantly higher than the forecasts for no more than BGN 800 million of the specialized international investigation company AlixPartners Services UK LLP. The data show that for more than 6 years the trustees have managed to collect about 25% of the assets of the looted bank. There is no data on how many of the BGN 1.25 billion in question are the result of the collection of loans provided by the Corporate Commercial Bank, the liquidation of the bank's assets or the declaration of invalidity of set-offs after its bankruptcy. Most of the money allocated for the return - BGN 928 million, actually goes to the BDGF, which is the largest creditor of CCB, after paying off protected deposits in 2015 for BGN 3.7 billion. So far, the bank has returned money to unprotected depositors (those with savings over BGN 196,000) and other creditors with four partial accounts. The list of major unprotected investors includes Sofia District Heating, Bulgargaz and Bulgartransgaz, BDB, BEH, NEK, Kozloduy NPP, Maritza Iztok Mini, NRIC, as well as government agencies such as the Privatization Agency and the Diplomatic Properties Agency. All of them have so far received no more than 20% of their former savings in the bank. Source: Sega (15.04.2021) |
| | Valentin Nikolov is head of BEH
Former MP and chairman of the Energy Committee in Parliament Valentin Nikolov is the new head of the Bulgarian Energy Holding. The chairman of the board of directors of BEH is Diyan Dimitrov, who comes from the board of directors of TPP Maritsa Iztok 2. This is clear from the documents submitted to the Commercial Register after a decision of the Minister of Energy. The other three members of BEH's board are Ivan Andreev, former head of Kozloduy NPP, Stelian Koev, former CFO of Maritza Iztok Mines, and Alexander Tsarnorechki, who was a spokesman for BEH years ago. All of them successfully went through the three stages of the procedure for selecting new members of the board of directors of the state holding. Source: 3e-news (21.04.2021) |
| | State-owned Mini Maritsa Iztok reported big loss in 2020
The state-owned Mini Maritsa Iztok reported a loss of BGN 35.6 million in 2020. Their annual financial report is disturbing, especially against the background of the tens of millions of state aid received under the 60/40 scheme for compensation of employees' salaries. However, the total amount of financial liabilities (such as loans, liabilities to banks and partners, etc.) is BGN 53 million compared to BGN 66.5 million in 2019. But the company's total liabilities remain high - over BGN 344 million There is an explanation for the dramatic loss - in 2020 the orders for coal supply were greatly reduced due to the Covid crisis, as compared to the same period of 2019 the extracted and sold quantities decreased by 22%. The reason for this is the load on the TPPs, which in 2020 worked much less due to the reduced total consumption and increased electricity imports. For example, the energy produced by TPP Maritza East 2 is 45% less. In last year Mini Maritsa Iztok has sold coal to the bankrupt plant for BGN 111 million amid sales of BGN 196 million a year earlier. There is also a decrease in the sales of coal for ContourGlobal Maritsa East 3, which are for 133 million BGN (against the background of 142 million BGN in 2019). Source: Capital (08.06.2021) |
| | State-owned companies turned out to have contracts for over BGN 8 billion without a public procurement
The contracts concluded after a public procurement are for BGN 11.505 billion without VAT, and the contracts concluded without a public procurement, through the so-called "In house" assignments are for BGN 8.087 billion without VAT, Ministry of finanse said. Among the companies that have concluded the most contracts without a tender are "Motorways", "Montazhi", Kozloduy NPP, the State Consolidation Company, "Mini Maritsa - East" EAD, as well as many hospitals. The total amounts do not include contracts with estimated prices, as well as framework contracts, the prices of which are determined by a handover protocol. n July 8 the Minister of Finance announced that for the last two years nearly BGN 8.5 billion have been awarded without public procurement (with the so-called in-house procedures). Source: investor.bg (02.08.2021) |
| | Over 12 million tons of coal have been mined at MMI in seven months
For the seven months of the year 12,183,145 tons of coal were mined in Mini Maritsa East SPJSC. The implementation is 53% of the set annual program. The orders of the exchanges are fulfilled 100%. The extracted coal meets the quality indicators of the requirements of the consumers. In connection with the reduced requests for supply of lignite coal by the plants in the complex in the first half of 2021 and due to the need to optimize the costs of the company, the extraction sections worked in three shifts. Under a plan for 75 mln m3, the excavated and transported overburden is 32.83 mln m3, which is 44% of the set annual program. The investment expenses of Mini Maritsa Iztok SPJSC in the Business Plan for 2021 amount to a total of BGN 32 mln. The implementation of the investment program of the Company as of July 31, 2021 amounts to BGN 21.16 mln, which is 66.13% of the approved expenditures for 2021. Mini Maritsa East SPJSC is constantly improving and developing its social policy. The company repays all its liabilities on time and at the moment the liabilities are only current. The corporate social responsibility of Mini Maritsa East SPJSC is tied to the values ??of sustainable development, a socially responsible employer for nearly 7,000 people. The company is constantly improving the standards of work, social development, environmental protection, living standards of its employees and society. Source: Darik Radio (18.08.2021) |
| | The state will support the coal sector through the construction of an Industrial Zone near Stara Zagora
One of the priority industrial zones that should be created in the future should be in the region of Radnevo and Stara Zagora. This was stated by the Minister of Economy Kiril Petkov. He and the Minister of Finance Asen Vassilev took part in a meeting with representatives of the unions in Mini Maritsa East and TPP Maritsa East 2. They also signed the petition for preservation of the coal complex and jobs, which has already gathered the support of over 100 thousand people. The mayor of Stara Zagora Zhivko Todorov has already announced the intentions of the municipality to create an industrial zone in the area of ??the former airport near the city. The construction of the new goal preserves the existing airport track and will be a major priority in the work of the municipal administration this year, said Mayor Zhivko Todorov in January. "This project is extremely important for Stara Zagora and the future of the Green Deal. One economic activity can be replaced only by another economic activity", he explained and emphasized that many authoritative publications point out as a minus for Stara Zagora the lack of ready industrial terrains with built infrastructure. The idea is to create an emission-free Industrial Zone. It is not yet clear how Radnevo, 30 km from the Industrial Zone, will benefit from it. Source: 3e-news (14.09.2021) |
| | 60/40 continues despite the "lion's share" for state-owned companies
Measures 60/40 and "Keep me" will be extended. Under the measure 60/40, BGN 250 million are provided by the end of the year, and under the measure "Keep me" - BGN 100 million, announced the acting Deputy Prime Minister Galab Donev. The decision was supported by employers and trade unions within the Tripartite Cooperation Council. The measures affect enterprises with a decrease in turnover and income of 30 and 40 percent, for which support of 50 and 60 percent by the state is provided on the insurance income of the persons for the respective month and the respective insurance contributions by the employer. According to data, as of mid-September, BGN 1.498 billion had been paid under measure 60/40. With this money, more than 13,000 employers have been supported and the employment of 311,000 employees has been maintained. But today's concerns are the same as yesterday's - the "60/40" measure is again "targeted" in large state-owned enterprises. Source: Banker (04.10.2021) |
| | Record monthly coal production in the history of Troyanovo-1 Mine
The miners from the mine Troyanovo-1 have achieved a monthly record by extracting 1.622 mln tons of coal in October, announced Mini Maritsa Iztok SPJSC. This production is 254% performance over the planned output for the tenth month. The October record is the highest for the 69-year history of the mine. So far, the largest monthly coal production was realized in February 2017, when 1.531 mln tons of coal were produced. The business program of Mini Maritsa Iztok for 2021 has set extraction of 8 mln tons of coal for the mine. With a record production on the eve of its seventieth anniversary, Troyanovo-1 Mine provided the required 1.529 mln tons of coal for the production of electricity in the largest thermal power plant on the Balkan Peninsula TPP Maritsa East SPJSC and 93,259 tons for the orders of Brikel SPJSC. A higher coal production was realized in Mini Maritsa Iztok in response to the requests of the thermal power plants in Maritsa East complex to ensure the energy balance of the country. As of November 7, the annual plan for lignite mining is 110% fulfilled - a total of 21.537 mln tons of coal have been mined. Mini Maritsa Iztok unites Mine Troyanovo-1 LTD, Mine Troyanovo-North LTD and Mine Troyanovo-3 LTD. The company has been operating since 2005 under a Concession Agreement between the Council of Ministers and the concessionaire Mini Maritsa Iztok. A 35-year concession has been established for the extraction of coal from the East Maritsa Coal Basin. Source: Banker (15.11.2021) |
| | BEH moved the headquarters of Mini Maritsa Iztok from Radnevo to Sofia
BEH moved the headquarters of Mini Maritsa Iztok SPJSC from Radnevo to Sofia. The decision was taken by the 6 out of 7 members of BEH. It also provides for a new statute of the company. The Board of Directors of BEH instructs the Executive Director of Mini Maritsa Iztok, Todor Todorov, to take the necessary actions to register the changes and a new statute of the company. The two unions in the company - CITUB and Podkrepa, in which over 90% of employees are members, have prepared a protest declaration, which will be sent to BEH, the Ministry of Energy and all other responsible institutions, the chairman of CITUB in the coal company said. "The relocation of the company's headquarters in Sofia is madness. We understand from this decision that the management will be moved to Sofia. If this is not the case, it would be appropriate for someone to explain to us what this is all about." Source: Other (24.01.2022) |
| | Increase salaries in Mini Maritsa-East by 15%
Salaries in Mini Maritza-East will be increased by 15% from April 1, 2022. This was agreed by the participants in the Coal Branch Council, which was held at the Ministry of Energy under the chairmanship of Deputy Minister Plamen Danailov. About 7.8% of the growth of wages covers the officially reported inflation for 2021. In addition, another 7.2% were added to them, while maintaining all social benefits for employees in the company. The participants in the branch council also agreed on the investment program of the company. For 2022 it is worth BGN 62 million, but will be supplemented to BGN 100 million. The funds will be invested in the necessary current and capital repairs, as well as in renewable energy sources for own use. The Ministry of Energy is committed to provide full assistance to the company to provide the necessary funding for the normal investment process. https://divident.eu/ Source: Other (31.03.2022) |
| | Mini Maritsa Iztok for the first time starts exporting coal
For the first time in its 70-year history, Mini Maritza Iztok will export coal to power plants outside the territory of the Maritza-Iztok complex. The company informed that on June 17, 2022, they signed a contract with a Serbian company that will supply Bulgarian coal to power plants near Belgrade. The contract is valid until April 30, 2023, with an extension clause. For the term of the contract, it is planned to sell 1,750 million tons of lignite coal at a higher price than the one at which the power plants in the Maritza-East complex are bought. The coal will be delivered to the site of Mini Maritsa Iztok and the company has no commitment to transport it to Serbian plants. The guarantee of payments is provided by an irrevocable letter of credit. The realization of Bulgarian lignite coal outside the Maritza East complex has so far been unthinkable and it has hardly ever been assumed that their export is possible, especially given the gloomy forecasts for the recent closure of the Mini Maritsa Iztok in recent years. Ilza Chinkova, Executive Director of the company, commented that the contract for export of Bulgarian lignite coal will not affect the guaranteed deliveries for the power plants of the Maritza-East complex and is a serious achievement and good prospect, Chinkova said. Source: Sega (23.06.2022) |
| | The mineral and raw materials industry reported growth for 2021. For another year, Bulgaria occupies one of the leading places in Europe in the extraction of copper, gold and lignite coal. The main raw materials mined in our country are lead-zinc, copper and polymetallic ores, lignite coal, gypsum, limestone, bentonite, kaolin, quartz sands, refractory clays and marble. The branch recorded a growth of 10% last year, reaching an output of nearly 117 million tons - the highest level for recent years. The increase in the extraction of lignite coal is significant - by 30% compared to 2020. Almost a third of the extracted quantities in the sector are inert and construction materials. Over 60% of it falls on mining. The products of the mineral raw materials industry form over 3 billion euros of exports. Labor productivity in the industry remains high and is nearly 2.5 times higher than the industry average in the country. 19,700 people are employed in the sector, and another 120,000 through activities directly serving the sector. Salary in the sector remains among the highest in the country, ranking first among other economic sectors, with the average annual salary reaching BGN 2,150. Investments in environmental protection amount to BGN 37.8 million. During the last academic year, more than 330 students in mining majors were trained in dual form, and more than 100 graduates successfully graduated. The Bulgarian Chamber of Mining and Geology also handed out its annual awards in nine categories. An award for the highest annual results achieved in the mineral industry in 2021 was awarded to "Mini-Maritsa East" EAD for the growth of ore production last year compared to 2020 /+31.5%%. The award for innovation went to "Elatsite-Med" AD for the project "Design and implementation of an automated system for the study of deformation processes in the area of ??"Open Ore Storage No. 1" of the "Elatsite" Ore Mining Complex. Safety and Health Award - for "Dundee Precious Metals Chelopech" EAD, which achieved zero occupational injuries last year. Source: Banker (19.08.2022) |
| | From July 1, the state-owned "Mini Maritsa Iztok" EAD started exporting coal to Serbia. The decision was historic in the 70-year history of the mine, which until now has always supplied thermal power plants in the Mariska Basin. According to the contract with the Serbian side, exports will continue until the end of the heating season - April 30, 2023, but there is an extension clause. It is planned to sell 1,750,000 tons of lignite coal at a price higher than that at which the plants in the "Maritsa East" complex buy. Source: Duma (23.08.2022) |
| | Danube transports are decreasing, but freight rates are increasing
In 2022, a serious decrease in ship traffic is reported, both compared to the previous two years and compared to the pre-pandemic 2019. If we compare only the three months with the lowest waters June, July and August with the same months of 2019, the difference in the number of vessels that passed along the lower reaches of the river is more than 2.5 times: below 1700 versus nearly 4400, respectively. of the tonnage of transported goods, the difference is even greater, since in 2019. the waters were not so low and therefore no such great restrictions were imposed on the navigation of ships. A decline is also reported on passenger ships. From the beginning of this year to the end of August, there were 227 visitors to Ruse, while for the same period of 2019, the city was visited by 357 passenger ships. Shippers also report two positive trends for shipping. The first is related to the war in Ukraine and the export of Ukrainian grain. The second trend is the unexpected export of Bulgarian coal to Serbia, transported by barges along the Danube from Ruse and Svishtov to Belgrade. It is about the export of 1.7 million tons of lignite from Mini "Maritsa Iztok", which started two months ago and will continue until the end of the upcoming winter. Freight rates for transporting this coal are also high 15-20 euros per ton. In general, the war and the subsequent energy crisis in Europe raised the freight on the river to such an extent that some of our ship owners increased the salaries of their captains to BGN 9,000. Having done so despite increased costs due to increased fuel prices and despite losses from the two-month layover of their ships due to low water. Source: Banker (12.10.2022) |
| | For the first nine months of this year, the largest coal mining company in Bulgaria, "Mini Maritsa-Iztok" EAD, made a profit of over BGN 61 million, and the mined coal was over 8 million tons more than in the same period of last year. For the first time in the 70-year history of "Mini Maritsa-East" EAD, this year a contract was concluded for the export of coal to the Republic of Serbia. The contract is in accordance with national and international legislation, prior to its signing it was approved by "Bulgarian Energy Holding" EAD and the Ministry of Energy of the Republic of Bulgaria. Source: BTA (28.10.2022) |
| | The prosecutor's office is checking the contract of Mini-Maritsa East for the export of coal to Serbia
The prosecutor's office in Stara Zagora has requested documentation in connection with the contract of "Mini-Maritsa East" EAD for the export of coal to Serbia. The contract was signed at the beginning of this year and provides for the export of 1,750,000 tons of coal to our western neighbor. Reports to the Prosecutor's Office regarding the contract, however, became the reason for its inspection. One of the arguments is that the coal should have been sold at market prices, because the raw material is energy. "Mini-Maritsa East" stated that it is impossible to compare lignite with a calorific value of 1,600 kilocalories per kg with black coal with a calorific value of 6,000 kilocalories per kg. On the stock market, black coal is priced at an average of $350 per metric ton, but this price includes transportation costs from Australia or Indonesia to a northern European port, the company said. According to the director of Mines, Ilza Chinkova, the interests of the company and the state are protected. She pointed out that the clauses in the contract are extremely advantageous. The payment of the coal is guaranteed by a letter of credit, the transport is at the expense of the Serbian buyer, and the contract can be terminated at any time without penalty, Chinkova added. Source: news.bg (28.10.2022) |
| | Kozloduy NPP continues to set records in its revenue and profit. After reporting BGN 1 billion for the first quarter of the year, by the end of the nine months the plant's profit exceeded this amount and reached BGN 1.37 billion. This is BGN 651 million more on an annual basis and is mainly due to the high electricity market prices. It is precisely from the sale of electricity that the revenues - BGN 5 billion, which is 223% more than a year ago - were formed. BGN 2.13 billion were contributed to the "Security of the Electricity System" fund. The profit of the Bulgarian Energy Holding is even greater - BGN 1.44 billion, which is almost a double increase compared to the end of September 2021. One the reason for this is the reduced loan to TPP Maritsa-Iztok 2, after BGN 550 million was repaid ahead of schedule. The second reason is the larger dividends received from Kozloduy NPP and ESO. BGN 61.4 million is the profit of "Mini Maritsa-East", with BGN 51.8 million more on an annual basis. The company's revenues increased by 55% to BGN 633.4 million, which is due to increased coal production and higher coal prices. Source: 24 chasa (14.11.2022) |
| | "Mini Maritsa-East" buys railway equipment from NEK for over BGN 1.2 million
The company "Mini Maritsa-East" has announced its intention to buy technical equipment for railway transport from the "National Electric Company". The market value of the equipment, according to data as of November 10, 2022, is BGN 1,253,928. By purchasing the equipment from "Mini Maritsa-East", they want to secure the production process related to the supply of energy fuel to the thermal power plants by rail in order to guarantees quality and timely execution of their supply contracts. The deal will be done through direct negotiation. This possibility is regulated in the Regulations for the implementation of the Law on Public Enterprises. The texts state that the starting price for the sale is determined by an independent appraiser, following a decision by the Council of Ministers. Source: news.bg (10.03.2023) |
| | ME is considering building a 4-gigawatt photovoltaic park in "Maritsa Iztok"
The Minister of Energy Rosen Hristov has discussed the possibility of large-scale construction of photovoltaic power plants on decommissioned land with the management of the state-owned companies "Mini Maritsa-East" and "TPP Maritsa East 2". The idea is to build a 4-gigawatt photovoltaic park on reclaimed lands of the coal complex in the next 10 years. The possibility of building its own photovoltaic plant with a capacity of 150 megawatts "Mini Maritsa-East" was also discussed. Similar ideas were discussed with the management of TPP-2. According to Hristov, the mines will have to commission someone else to build the photovoltaic facility at their own expense, since banks do not grant loans to coal mining enterprises, and the mines have no way of allocating BGN 250 million of their own funds for such an investment. The idea is that the plant will be paid off gradually with the money from the sale of the electricity produced by the photovoltaics. Private investors are also being sought for the construction of the 4 gigawatt photovoltaic park. However, none have shown interest so far, as it is economically unprofitable. https://divident.eu/ Source: Other (20.03.2023) |
| | And in 2021, the highest salaries are in small municipalities with large employers
Small municipalities with a large industrial employer for another year lead the ranking of the highest average wages in Bulgaria and overtake the capital in terms of average wages. In the first place is the municipality of Chelopech, where the gold mining company of the Canadian "Dundee Precious Metals" operates. They are followed by Kozloduy with the nuclear power plant, Pirdop with the copper refinery, Radnevo with the "Maritsa Iztok" mine and the tetsovets, Devnya because of the chemical industry and others with a developed mining and processing industry, as well as with large enterprises in the energy sector. The highest average gross monthly salary in Bulgaria in 2021 is in the municipality of Chelopech (BGN 2,930). In second place is the average salary in Kozloduy municipality (BGN 2,431), followed by Pirdop municipality (BGN 2,205) and Stolichna municipality (BGN 2,144). In fifth position is the Radnevo energy center (BGN 2,040). The top 10 in the country is completed by Galabovo (BGN 1,985), Devnya (BGN 1,947), Panagyurishte (BGN 1,860), Elin Pelin (BGN 1,745) and Bozhurishte (BGN 1,717). The municipalities of Elin Pelin, Bozhurishte and Kostinbrod from the wide periphery of Sofia, as well as the municipalities of Devnya and Beloslav in the immediate vicinity of Varna and the municipalities of Maritsa, Kuklen and Brezovo near Plovdiv are also in the top 20 in terms of salaries in the country. Source: Standart (07.04.2023) |
| | Property of "Remotex-Radnevo" for sale
During the week, part of the assets of the infamous "Remotex-Radnevo" plant, whose activity was mainly repair of the equipment of the state-owned "Mini Maritsa-East", were offered for auction. On August 31, the receiver of the company, which was declared bankrupt in 2016, will try to sell six buildings valued at BGN 215,597.60. The enterprise was privatized in 2001 and by the time it closed in 2013, its owners had accumulated debts estimated to be twice the company's assets. The remains of the company's assets, which are now offered for sale, represent a part of what existed here years ago: 30-40 buildings - a variety of production workshops, two stations - a pumping station and a treatment plant, plus equipment related to the operation of the plant. In 2018, all this was offered for just over BGN 1.5 million, after its price was already considerably lower than in the previous offering BGN 1,931 million. The only company that expressed interest in their acquisition was the subsidiary of "Minstroy Holding" AD - "Remotex-M". In 2015, "Remotex-M" bought the main part of the assets of the bankrupt plant in Radnevo for BGN 21 million, of which BGN 16 million is the principal amount of non-serviceable debt to "First Investment Bank". With this purchase, the holding became the owner of nearly 290 decares of land in Radnevo and part of the buildings on it. Source: Banker (25.08.2023) |
| | "Mini Maritsa-East" - from a profit to a loss of BGN 51.4 million in just one year
The state-owned Mini Maritsa East, which operates the largest lignite deposit in Bulgaria, reports a loss of BGN 51.4 million for the first half of the year, compared to a profit of BGN 39.3 million a year earlier. There is also a significant drop in the revenues of "Mini Maritsa-East" due to the collapse in the sale of coal. For the first six months of the year, "Mini Maritsa-East" realized total revenues from the activity in the amount of BGN 242 million, which is 40.4% less compared to the same period last year, when they were BGN 406.5 million Within the six months, 10.2 million tons of coal were produced in the mines compared to 17.6 million tons a year earlier. The mines sold coal to partners in the country at a price of 87.35/ton of conventional fuel, which is regulated by the state. In the summer of "Mini Maritsa-East" concluded a contract with the Serbian "Virom Group" LLC with a term of April 30, 2023, and until then the company sold coal to the Serbians at a price of BGN 96.09/TUG. On the second of May this year with an additional agreement, the contract with "Virom" was extended until 30.04.2024, and a higher sales price was achieved - BGN 111.01/TUG. The company's total expenses decreased by 18.45% to BGN 299.3 million. The average number of personnel in "Mini Maritsa-East" is 6,854, which is 56 more than in the first half of 2022. Source: Capital (12.09.2023) |
| | Parliament overrode the President's veto on changes to the Energy Law
With the stipulation that they will rewrite the changes in the energy law, which introduce the gradual liberalization of the electricity market for households, PP-DB, GERB and DPS rejected the president's veto. "We share most of the president's motivations. He is right that there are no set models for how the deregulation of residential electricity prices will happen and that there are many uncertainties, but we will again support the changes to the Energy Act, with the proviso that the next six months , we will fix them", declared the deputy from GERB and chairman of the energy commission Delyan Dobrev. The president attacked the legal changes, arguing that the way in which it is planned to liberalize the household electricity market will lead to a sharp jump in prices at the beginning of 2026. It is planned that from the beginning of 2026 the compensation of household consumers through regulated electricity prices and for them to go to the free market, where the prices are still much higher than the regulated ones, the head of state notes. He points out that there is no adequate mechanism for collecting the necessary BGN 1.5 billion for 2024 and the same amount for 2025, with which to compensate the electricity distribution companies, which will have to sell electricity at regulated prices during these two years. This carries the risk of socio-economic upheavals, the president believes. Radev criticized the still incomplete definition of energy poor households. The President also warns that the deletion of NEK as a public supplier of household electricity and the elimination of the energy mix may cause the production of electric energy from the "Maritsa-Iztok 2" TPP to be stopped and will endanger the functioning of "Mini Maritsa-Iztok" already in middle of next year. Delyan Dobrev explained from the parliamentary rostrum that despite the many ambiguities and shortcomings, they voted on the first and second reading of the changes to the Energy Act in October because we were pressed by the deadlines in the Recovery and Sustainability Plan, promising in the next 7-8 months , until the process of liberalization of the household electricity market begins, to make all the necessary changes for the reform to happen smoothly. Source: Sega (13.11.2023) |
| | Loss in "Mini Maritsa-East" - nearly BGN 100 million at the end of September
The state-owned "Mini Maritsa-East" continues to worsen its financial situation. By the end of September, it was already at a record loss of BGN 99.6 million, with a profit of BGN 60 million for the same period last year, when due to the crisis in electricity prices, coal-fired power plants were operating at maximum capacity. The main users of the lignite coal from "Mini Maritsa-east" are TPP "Maritsa-east 2", "ConturGlobal Maritsa-east 3", "AES - ZS Maritsa-east 1" and "Brickel", and the production is very depending on their load. From the summer of 2022, the company has one more customer - the Serbian "Virom Group", to which it already exports at a higher price than the initially approved price (BGN 111.01/TUG, against the originally agreed BGN 96.09/TUG). The loss of the mines began to accumulate already in the second quarter of the year, when the company turned out to be at a loss of about BGN 51 million. By the end of September, i.e. three months later, it is already almost 50% larger, suggesting even more substantial year-end loss accumulation. The company exploits the largest deposit of lignite coal in Bulgaria and because of this it is completely dependent on its customers, who until last year had a lot of work - and accordingly bought large quantities of coal, this year this is no longer the case. The total revenue for the nine months of 2023 was BGN 329 million, which is 47.9% less compared to the same period last year, when BGN 633 million was reported. At the same time, sales revenue of coal are BGN 294 million, which is a 42% decrease compared to the nine months of 2022, when they were BGN 511 million. This indicator is of particular importance, since coal revenues form 89% of the total revenues of the company. In contrast to revenues, which almost halved, the company's total expenses fell by only 24% to BGN 434 million compared to the same period last year, when they were BGN 572 million. electricity and fuels (due to market conditions) as well as those for external services. 6,834 people are employed in the mines, which is 66 more people compared to the same period last year. At the same time, productivity has dropped dramatically - from 3.75 thousand tons per person to only 2 thousand tons. Source: Capital (13.12.2023) |
| | BGN 3,398 average salary in Chelopech, BGN 2,949 in Kozloduy
For another year in 2022, Chelopech remains the municipality with the highest salaries in Bulgaria - an average of BGN 3,398 per month. Although the calculations are based on the data of the National Statistical Institute for those employed on labor contracts in the private and public sectors, the main contribution to the championship of the municipality of Szentre Gora has the gold mining company "Dundee Precious Metals Chelopech" of the Canadian Dundee Precious Metals (DPM). In second place with an average salary of BGN 2,949 is Kozloduy, where the Kozloduy NPP operates. This is also the reason why Vratsa is usually among the regions with the highest salaries in the country. The average gross monthly salary in Knezha was BGN 2813, where the production and processing of grain and oil crops in the region are developed - economic activities that report very strong financial results in 2022. It was in Knezha that the largest producer of sunflower oil - "Oliva", with BGN 2.6 billion in revenue. And data from the company's report indicate that it contributed BGN 6,554 to the average monthly salary in 2022. Since the middle of last year, the registration of "Oliva" has been moved to Sofia. Fourth and fifth in terms of average salary are Stolichna Municipality (BGN 2,475) and Radnevo (BGN 2,450), where the "Mini Maritsa-Istok" coal mine is located. The top 10 is completed by Galabovo (BGN 2,260), Devnya (BGN 2,156), Panagyurishte (BGN 2,050) and Bozhurishte (BGN 1,925) - all of them with a developed mining and processing industry or large energy companies. Pirdop occupies the sixth position with an average salary of BGN 2,440. The main employer there is the mining company "Aurubis", which is the largest company in Bulgaria with 8.2 billion BGN revenues for 2022. Another large company is registered in the municipality of Mirkovo - the mining company Ellatzite - Med JSC. The average gross monthly salary in the company is BGN 2,649 in 2022, which is 50% above the national average.
The municipality of Sofia is the first of the regional cities with an average salary of BGN 2,475, this is mainly due to the municipalities of Bozhurishte, Elin Pelin, Kostinbrod and Botevgrad. In Varna region (in second place with BGN 1,642), the high wages are the result of the developed industry in Devnya and Beloslav, and for Plovdiv (third place with BGN 1,584) the driving force is mainly the municipalities of Maritsa and Kuklen. Since 2018, wages have increased in every municipality, with average growth between 40 and 70% over four years. Source: Capital (08.02.2024) |
| | The largest companies in the Mining sector are profitable in 2022
The largest mining companies in Bulgaria slow their growth slightly in 2022, with their revenues increasing by an average of 19% (26% in 2021). At the head of the sector remains the state-owned "Mini Maritsa-East", which mines lignite coal in the Mariska basin, with a turnover of over BGN 865 million. In 2023, however, Maritsa-Iztok 2 TPP sharply reduced production after the stabilization of electricity exchange prices made its electricity unsaleable. This led to a significant deterioration in the results of the mines - according to data for the first 9 months, revenues fell by 48% and the company reported a loss of BGN 99.6 million. The fastest growing is "RUA Bulgaria", which processes waste from the former tailings storage "Kremikovtsi" - by more than 137%. All companies in the top 10 report a profit, and mining companies are traditionally distinguished by the highest profitability. "Elacite - med", which ranks second. The company, which is part of Geotechmin, mines copper ores from the Elatsite deposit near Etropole, and its beneficiation factory is located in the village of Mirkovo, on the southern side of the Balkans. A procedure is currently underway to extend the concession, which expires in 2031, with proven reserves for another 10 years. The investment in the project will reach BGN 1.2 billion. The other large mining company - "Asarel-Medet", which operates near Panagyurishte, is accelerating its revenue growth. Source: Capital (27.02.2024) |
| | BEH changed the management of several companies in the energy sector
The Bulgarian energy holding made changes in the management of "Mini Maritsa Iztok", the National Electric Company, in the board of directors of "NPP Kozloduy-New Powers" and the operator of the gas connection with Greece. By decision of the holding, Todor Todorov, who held the position from 2009 to 2011 and in January 2022, was appointed as executive director of "Mini Maritsa-East". Deyan Ivanov, a former associate in the parliamentary committee on energy. The resignation of Svilen Spasov as a member of the Board of Directors of Kozloduy NPP - New Powers EAD was also accepted. His place is occupied by Georgi Dobrev, who has many years of experience in the field of energy. A change has also been voted in the Supervisory Board of "ICGB" AD - in the place of Momchil Vanov as a member of the Supervisory Board, Rumyana Petrova enters. Her professional path is also in the field of energy, having held positions in the "Legal" Directorate at "Bulgargaz" EAD - chief legal advisor, deputy director of the directorate and director of the directorate. A general meeting of the shareholders of ICGB AD is to be convened for decision-making. Source: econ.bg (17.04.2024) |
| | GERB and DPS accepted a financial injection of BGN 1 billion for state mines
Deputies from the parliamentary energy committee adopted a draft decision of the parliament to grant BGN 200 million per year from the state budget to the "Maritsa East" coal mines. The next payments will continue until 2029. Thus, the state-owned company with dying activity will receive a total of one billion leva for the reclamation of its disturbed grounds, if the decision is also accepted in the plenary hall. The viability of the mines must be preserved, and this is not possible without government support because of the drastic reduction in electricity production from coal-fired power plants, which reduces coal production accordingly. "The premature decline of coal mining is a serious challenge of an engineering-technological, ecological and social nature, and the reduced income from the main activity of Mini "Maritsa Iztok" leads to the impossibility of financing all the activities and measures to restore the disturbed areas and bring the deposit to steady state". The draft decision states that it will take at least 15 years to rehabilitate the disturbed areas of the mines, and the reclamation activities include reducing the risks of future landslides. It becomes clear, however, that the funds are intended to reduce the "socio-economic burden" rather than to close the mines. Source: mediapool.bg (25.04.2024) |
| | MPs refused to consider the update of the climate neutrality plan
The National Assembly decided to postpone the adoption of the Climate Neutrality Roadmap, which lists by years how coal capacities will be reduced and is a mandatory element for granting the second tranche of the Recovery Plan in the amount of BGN 1.3 billion. After that, BGN 1 billion were promised for "Mini Maritsa-Istok", and in a separate decision, the deputies also adopted a postponement of the liberalization of the wholesale electricity market for one year, in order to guarantee the operation of the TPP "Maritsa-Istok 2" for another 12 months. The funds of BGN 1 billion for "Mini Maritsa-East" are to ensure the activities for the technical reclamation of the disturbed areas, which are 240 square km. In fact, mines have been required to set aside money for mine reclamation over the years, but this has not happened precisely because of the lack of funds and the low price of coal in order to produce cheaper energy. However, it is not clear whether part of this money will not be redirected to ensure the salaries of the workers in the mines, whose activity significantly decreased after the expiration of the long-term contract between "ConturGlobal Maritsa-East" 3 and NEK at the end of February. Source: Capital (26.04.2024) |
| | IMF: State-owned companies in Bulgaria are expensive, inefficient and carry risks for everyone
Large companies with state participation in Bulgaria have low profitability and inefficient allocation of resources, and although they are not significant in terms of share, they play a decisive role in the production network, which can negatively affect the productivity and competitiveness of the entire economy. The level of state-guaranteed debt of state-owned enterprises is small - on average only 0.5% of GDP in 2010-21 (the average level in the EU is 9%, and in other countries of Central and Eastern Europe it is 3.5%). And the support with such guarantees due to the COVID-19 pandemic was many times lower - 0.3% of GDP in Bulgaria compared to almost 2% in the EU for 2019-2021. But there is a key point - there is no generalized information on guarantees in Bulgaria, issued by the state-owned enterprises themselves, since their activity does not require the approval or supervision of the Ministry of Finance. Thus, total liabilities averaged around 12% of GDP in 2013-2021, which could be a source of concern. This is stated in the Analysis of the International Monetary Fund "Fiscal risks of state-owned companies". The analysis is based on data from 15 companies in which the authorities at various levels have over 50% share: Energy sector (National Electric Company (NEK), Kozloduy NPP, Bulgargaz, TPP Maritsa Iztok 2, Electricity System Operator, Bulgarian energy holding (BEH), Mini Maritsa Iztok, "Bulgartransgaz"), Transport sector (National Railway Infrastructure Company (NRI), BDZ - Passenger Transport Ltd., Air Traffic Control (RVD), Transport Construction and Reconstruction (TSV), BDZ - Cargo Services Ltd., Port of Varna, Bulgarian Port Infrastructure). The total assets and liabilities of these 15 companies represent about 70% of the total for the entire segment with state participation 2015-2021, which covers about 700 companies. The general assessment for them is that the fiscal support is much higher than what they give as revenues to the budget. In 2017-19, they received subsidies, capital investments and capital transfers (direct support) and deferred tax and dividend exemptions (indirect support) of an average of 1.5% of GDP. To this they have responded with a contribution of 0.2%. Net, they absorbed 1.3% of GDP immediately before the pandemic and at the end of the last GERB government. In the first pandemic year (2020), this ratio became 2.5% against 0.1% and is an illustration of how an unexpected shock can lead to large fiscal costs for companies with state participation, the IMF says. These are companies in which 4.1% of all employed work. Their financial stability can affect the fiscal performance of the state, especially when they have incurred potentially significant costs, whether expressly guaranteed or without the authorities making a contractual commitment. In 2023-2024, the state doubled the dividend collected by these companies from 50% to 100% to support the budget, but the price for this is a risk to their investment, productivity and profitability. "Furthermore, the dividend policy lacks predictability and seems to be driven by the needs of the state budget. Such a policy reduces the incentives of companies to invest and thus has a significant adverse effect on economic activity," the authors of the report add. State-owned companies are much, much less profitable than those in the private sector. Return on assets (one of the key measures of profitability) was between minus 1% and 2% for the period 2015-2021, with an average of 10% in private. In 2022, this difference suddenly melted (9% for state-owned, 11% for private), but not because there was better management, but because of three specific companies - NEK, Kozloduy NPP and Maritsa Iztok 2 TPP, and their income from sharply increased energy prices due to Russian aggression against Ukraine. Return on equity (another measure of profitability, measuring a firm's ability to generate profits using its shareholders' capital) for SOEs is on average 20 percentage points lower than that of private firms. Due to the specifics of many state-owned enterprises, profitability is logically lower than that of private ones, but in countries with better management results, the difference between them is 4 percentage points or five times smaller than in Bulgaria, the IMF recalls .Everyone suffers from the bad management of business with state participation. Six state-owned enterprises have been facing short-term challenges in meeting their obligations for years. In the period 2015-2022, without sufficient liquid assets to cover the amounts due to creditors in the next 12 months were National Railway Infrastructure Company, TPP Maritsa Iztok 2, National Electric Company, BDZ - Passenger Transport, BDZ - Freight Transport and Transportation Construction and Reconstruction. Bulgargaz faced a liquidity crisis in mid-2022 due to low collection of receivables and arrears from Toplofikatsia Sofia. Accumulated arrears to suppliers were paid through a (bridging) loan and/or state aid. Another indicator of concern to IMF analysts is the high debt-to-asset ratio (ie, less financial flexibility) of several large state-owned enterprises. These are, for example, "Bulgartransgaz", National Railway Infrastructure, Bulgarian Energy Holding and Electric Power System Operator. It has also seen how debt-to-asset dynamics can change sharply - in the case of Bulgargaz, it jumps from around 45% in 2019 to over 90% in 2022. The combination of high debt and low profitability raises concerns for the ability to service the debt and therefore risks at the fiscal level, the IMF explains. Source: Dnevnik (18.07.2024) |