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 “I have not withdrawn my signature from the agreement as the syndicates claim.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 company’s 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 Borislavova’s fund CSIF has raised its stake in BACB up to 61.36%, following the lender’s 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 bank’s 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 Bulgaria’s 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)

Bulgaria’s energy system felt power shortages in the first day of the workers prosests in Mini Maritza East the nation’s 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 TPP’s involvement in providing the energy needs of the country makes coal supplies from Hristo Kovachki’s 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 Bulgaria’s 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 country’s 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, Bulgaria’s 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. Bulgaria’s 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 Bulgaria’s 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 ÁÃÍ 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 couldn’t 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 NSI’s 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 country’s 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 concession’s 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 year’s 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 company’s 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 company’s 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 company’s 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)